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AGRA PRE-EMPTION ACT, 1922

AGRA PRE-EMPTION ACT, 1922

AGRA PRE-EMPTION ACT, 1922

Preamble - AGRA PRE-EMPTION ACT, 1922

THE AGRA PRE-EMPTION ACT, 1922 [1]

[Act No. 11 of 1922]

[17th February, 1923]

PREAMBLE

Amended by the U.P. Act no VIII of 1923 [2]

Amended by the U.P. Act no. IX of 1929 [3]

Adapted and modified by the Government of India (Adaptation of Indian Laws) Order, 1937.

Adapted and modified by the Adaptation of Laws Order, 1950.

An Act to consolidate and amend the law relating to pre-emption in the Province of Agra.

Whereas it is expedient to consolidate and amend the law relating to Pre-emption in the Province of Agra;

And whereas the necessary previous sanction to the passing of this Act has been granted by the Governor General under sub section (3) of section 80A of the Government of India Act; It is hereby enacted as follows:

 

 

Chapter I - PRELIMINARY

 

Section 1 - Short title extent, and application

(1)     This Act may be called the Agra Pre-emption Act, 1922.

 

(2)     It extends to the whole of Agra, except the scheduled districts;

Provided that the (State Government)[4] may by notification in the (Official Gazette)[5] extend the provisions of the Act to the whole or any portion of any scheduled district.

(3)     It does not apply to any area included within the limits of a municipality, cantonment, notified area or town area.

 

Section 2 - Saving of rights previously accrued

Except as provided in sub-section (2) of section 25, nothing in this Act shall affect any right, privilege, obligation or liability acquired, accrued or incurred in respect of any transfer made before the commencement of this Act.

 

Section 3 - Abolition of customary and other rights or preemption excepting under Muhammadan law

No right of pre-emption shall be enforced in respect of any transfer made after the commencement of this Act of an interest in land in any area to which this Act applies, except in accordance with the provisions of this Act:

Provided that where there is no right of pre-emption under section 5 the provisions of the Muhammadan law of pre-emption shall not be affected in case the vendor and the pre-emptor are both Muhammadans.

 

Section 4 - Definitions

In this Act, unless there is something repugnant in the subject or context,--

(1)     "co-sharer" means any person, other than a petty proprietor, entitled as proprietor to any share or part in a mahal or village whether his name is or is not recorded in the register of proprietors;

 

(2)     "foreclose" and "foreclosure" refer to the passing of a final decree for foreclosure under rule 3 of Order XXXIV of the Code of Civil Procedure, 1908 (Act V of 1908);

 

(3)     "land" includes things attached to the earth or permanently fastened to anything attached to the earth, when, sold or foreclosed along with the land to which they are attached, but not otherwise;

 

(4)     "mahal" means a mahal as defined in the United Provinces Land Revenue Act, 1901 (U.P. Act III of 1901);

 

(5)     "mortgage by conditional sale" means such a mortgage as defined in the Transfer of Property Act, 1882;

 

(6)     "notified area" means a local area in regard to which a notification has been issued by the (State Government)1 under sub-section (1) of section 337 of the United Provinces Municipalities Act, 1916 (U.P. Act II of 1916);

 

(7)     "petty proprietor" means the proprietor of a specific plot of land in a mahal, who as such is not entitled to any interest in the joint lands of the mahal, or to take part in the administration of its affairs;

 

(8)     "purchaser" includes a person who has acquired land under a final decree for foreclosure;

 

(9)     "right of pre-emption" means the right of a person on a transfer of immovable property to be substituted in place of the transferee by reason of such right;

 

(10)   "sale" means a sale as defined in the Transfer of Property Act, 1882 (Act IV of 1882);

(11)   "town area" means any local area which the (State Government)[6] has declared or defined under section 3 of the United Provinces Town Are as Act, 1914 (U.P. Act II of 1914); to be a town area;

 

(12)   "wajib-ul-arz" includes any record or village rights or custom prepared, under any law or rule for the time being in force, at or in connection with a settlement, revision or records or partition.

 

Chapter II - EXISTENCE AND EXTENT OF THE RIGHT OF PRE-EMPTION

Section 5 - In what mahals or villages right exists

(1)     A right of pre-emption shall be deemed to exist only in mahals or villages in respect of which (any)[7] wajib-ul-arz prepared prior to the commencement of this Act records a custom, contract or declaration?

 

(a)      recognizing, conferring or declaring a right of pre-emption, expressly or by necessary implication, whatever its extent and in whatever form it may be expressed, or

 

(b)      imposing on a co-sharer desiring to transfer his interest in land an obligation to offer it in the first instance to another co-sharer or to a relative, or

 

(c)      forbidding co-sharers to transfer their interest in land to persons other than co-sharers or relatives, and in mahals or villages in respect of which a right of pre-emption has been recognized by a final decree of a competent court passed after contest prior to the commencement of this Act.

 

(2)     Any such record or decree shall be conclusive evidence of the existence of a right of pre-emption in such mahal or village.

Explanation--Where any such record is proved the existence of an inconsistent or contradictory record in any other wajib-ul-arz is immaterial.

(3)     Where any right/or custom referred to in sub-section (1) has been recorded in respect of any village or mahal, and such village or mahal has seen partitioned, a right of pre-emption shall be deemed to exist in all the portions into which such village or mahal has been divided.

 

Section 6 - Pre-emption under special laws

Nothing in this Act shall affect the provisions of rule 88 of Order XXI of the Code of Civil Procedure, 1908 (Act V of 1908), or section 182 of the United Provinces Land Revenue Act, 1901, or section 24 of the Bundelkhand Encumbered Estates Act. 1903 (UP Act I of 1903), nor, except as provided by those sections, shall any right of pre-emption arise in respect of--

(a)      any sale in execution of the decree of a civil or revenue court, or

 

(b)      any sale in default of payment of land revenue or of any sum legally recoverable as an arrear of land revenue, or

 

(c)      any sale under the provisions of the Bundelkhand Encumbered Estates Act, 1903 (UP Act II of 1903).

 

Section 7 - No right of pre-emption where purchase barred by the Bundelkhand Land Alienation Act

Nothing in this Act shall confer a right of pre-emption on any person who is, under the Bundelkhand Alienation of Land Act, 1903, not entitled to purchase the property in dispute.

 

Section 8 - Exclusion of pre-emption in respect of certain alienations

No right of pre-emption shall accrue on a sale--

(a)      by or to the Government or by or to any local authority, or trust constituted under the United Provinces Town Improvement Act, 1919 (UP Act VIII of 1919), or

 

(b)      to any company under the provisions of Part VII of the Land Acquisition Act, 1894 (Act I of 1894), or

(c)      for the purposes of a manufacturing industry, provided that subject to the provisions of this Act a right of pre-emption shall accrue on the expiry of one year from the date of registration of the sale-deed or of taking of physical possession of the land sold in the case of a sale made without registered sale-deed, if the land has not been used in good faith for the purpose for which it was ostensibly purchased.

 

Section 9 - Saving of sales to ex-proprietary tenants

No right of pre-emption shall accrue on a sale to, or foreclosure by, an ex-proprietary tenant, of any proprietary interest in land in the mahal in which he holds such ex-proprietary tenancy.

 

Section 10 - Sale to a person having a right of pre-emption

On a sale or foreclosure by, any of the persons named in section 12, no right of pre-emption shall accrue to any person who has an equal or inferior right of preemption.

 

Section 11 - Cases in which the right accrues

Subject to the foregoing provisions a right of 'pre-emption shall accrue to the persons mentioned in section 12 whenever a co-sharer or petty proprietor sells any proprietary interest in land forming part of any mahal or village in which a right of pre-emption exists, or when any such interest is foreclosed.

 

Section 12 - Classes of pre-emptors

(1)     Persons of the following classes shall be successively entitled to exercise the right of pre-emption:--

Class I--Where the interest is a petty proprietary interest, coparceners in that interest.

Class II--Co-sharers in the sub-division of the mahal in which the property is situated.

Class III--Where such sub-division is a part of a larger division of the mahal, co-sharers in such larger division.

Class IV--Co-sharers in the mahal.

Class V--Co-sharers in the village.

(2)     Notwithstanding anything contained in sub-section (1), where a mahal includes more villages than one no person having proprietary rights in any such village shall be entitled by reason thereof to a right of pre-emption in respect of any other such village.

 

(3)     Where there are more persons than one of the same class claiming pre-emption, that person who is related to the vendor and is descended from the common ancestor, (but is not removed from such common ancestor)[8] by more than four degrees including the common ancestor, shall be entitled to pre-emption as against other persons of the same class and among persons so related, those who are nearer * * * [9] to the vendor shall be entitle to pre-empt as against those more remote.

(Explanation--For the purposes of this section a vendee shall be deemed to be person claiming pre-emption).[10]

 

Section 13 - Property to be divided between pre-emptors equally entitled

Where two or more persons claiming are equally entitled to pre-emption, the property, shall be equally divided between them, each paying an equal share of the consideration for the transfer.

 

Chapter III - NOTICE TO PRE-EMPTION

 

Section 14 - Notice to pre-emptors

(1)     When a co-sharer or petty proprietor proposes to sell any land in any case in which such sale would give rise to a right of pre-emption, he may give notice by registered post to all persons having a right of pre-emption in respect of such sale.

 

(2)     Such notice shall clearly describe the property to be sold, and state the name of the vendee and the price settled.

 

Section 15 - Extinction of right of pre-emption

The right of pre-emption of any person to whom a notice has been issued under section 14, shall be extinguished unless such person within the period of one month of the receipt of the notice (and in case of pre-emptors being out of India three months), communicates by registered post his intention to purchase the property:

Provided that the right of pre-emption shall not be extinguished if the property is actually sold for an amount smaller than' that mentioned in the notice, or to a person not mentioned in the notice as vendee.

 

Section 16 - When a suit for preemption lies

A suit for pre-emption shall lie only where a sale has been effected or a final decree for foreclosure has been passed, but no suit shall lie for enforcing a right of pre-emption in respect of a portion only of the property which the plaintiff is entitled to pre-empt (under this Act).[11]

 

Section 17 - Procedure where sale price not fixed in good faith or where amount of foreclosure decree exceeds value of property

(1)     Where in any suit on the basis of a sale the court (is of opinion)[12] that the plaintiff has a right of preemption but that the ostensible price was not the actual price, it shall * * *[13] ascertain the actual price, and shall pass a decree for pre-emption on payment of such price.

(2)     In such case the burden of proving the actual price shall lie on the vendee, and in the absence of satisfactory proof the court shall * * * [14] ascertain the market value of the property and shall pass a decree for pre-emption on payment of the value so found.

 

(3)     Where in any suit on the basis of a foreclosure decree the court (is of opinion) [15] that the plaintiff has a right of pre-emption but that the amount of the decree has been inflated by fraud or collusion and exceeds the market value of the property, it shall * * * [16] ascertain such market value and shall pass a decree for pre-emption on payment of the value so found.

 

Section 18 - Consolidation of suits

Where more suits than one are pending for pre-emption in respect of the same transfer, the plaintiff in each suit shall be made a defendant in each of the other suits and the suit shall be consolidated and disposed of by a single decree which shall determine the extent and the order in which, and the terms and conditions under which, each plaintiff shall be entitled to pre-emption. It shall not be necessary for any party aggrieved by such decree to file more than one appeal or application for review.

 

Chapter IV - MISCELLANEOUS PROVISIONS

 

Section 19 - Effect of loss of right by pre-emptor prior to decree

No decree for pre-emption shall be passed in favour of any person unless he has a subsisting right of pre-emption at the time of the decree, but where a decree for pre-emption has been passed in favour of a plaintiff, whether by a court of first instance or of appeal, the right of such plaintiff shall not be affected by any transfer or loss of his interest occurring after the date of such decree.

(Provided that no voluntary transfer made in favour of the vendee after the institution of a suit for pre-emption shall defeat any right which the plaintiff had at the date of such institution)[17].

 

Section 20 - Sale of property to pre-emptor or acquisition of right by original purchaser prior to suit

No suit for pre-emption shall lie where (prior to the institution of such suit)[18] the purchaser has * * *[19] transferred the property in dispute to a person, having a right of pre-emption equal or superior to that of the plaintiff, or has acquired an indefeasible interest in the mahal which, if existing at the date of the sale or foreclosure, would have barred the suit.

 

Section 21 - Associating in suit co-plaintiff with inferior right

Where a person having a right of pre-emption sues jointly with a person not having such right, he shall lose his right; and where a pre-emptor of a higher class sues jointly with a pre-emptor of a lower class, he shall have no higher right than the person with whom he so sues.

 

Section 22 - Joint purchase by persons one of whom is liable to pre-emption

Where property is jointly purchased or foreclosed by two persons against one of whom only there is a right of pre-emption, such right may be claimed as against both.

Explanation--This section does not apply where each purchaser acquires a defined interest.

 

Section 23 - Survival of right of suit on death of plaintiff

If the plaintiff in a pre-emption suit dies at any time before the decree has become final, the suit shall not abate if the cause of action is subsisting.

 

Section 24 - Date on which preemptor's right accrues

A person who has obtained a decree for pre-emption in respect of any property shall acquire no title to that property until he pays the purchase money into court in accordance with the pre-emption decree, but upon such payment being made any alienation of the property made by the original purchaser or by any person claiming through him shall be voidable at the option of the decree-holder with effect from the date of such payment.

 

Section 25 - Special provision for limitation

(1)     Subject to the provisions of sub-section (c) of section 8, in any case not provided for by article 10 of the first schedule of the Indian Limitation Act, 1908, the period of limitation for a suit to enforce a right of pre-emption under the provisions of this Act shall, Notwithstanding anything contained in article 120 of the said schedule, be one year from the date on which?

 

(a)      in the case of a sale made without a registered sale-deed, the vendee takes under the sale physical possession of any part of the property sold;

 

(b)      in a case of foreclosure the final decree for foreclosure was made.

 

(2)     The period of limitation for a suit to enforce a right of pre-emption which has accrued before the commencement of this Act shall, notwithstanding anything contained in the said Limitation Act, in no case exceed one year from the commencement of this Act.

 



 

 



[1] For S.O.R., see Gaz, 1922, Pt. VIII, pp 245--249; for R.S. Com. see ibid, 1922. Pt. VIII, pp. 483--495; for discussion, see L.C. Pro. d. Mar. 2, 1922, Oct. 30, 1922, Oct. 31, 1922, Nov. 1, 1922, Nov. 2, 1922, and Dec. 14, 1922, in Vol. VII, pp. 96--98, Vol. IX, pp. 387--400, 438--460, 492--528, 564--571 and Vol. XI, pp. 152--54, respectively. This Act stands rep. by virtue of s. 339(a) of U.P. Act I of 1951, in all areas in respect of which notes, under s. 4 of the aforesaid Act I of 1951 have already been made.

This Act stands rep. by s. 339. (a) of U.P. Act I of 1951, in all areas in respect of which nots. under s. 4 of the aforesaid Act I of 1951, have already been made.

 

[2] For S.O.R. see Gaz., 1923, Pt. VIII, p. 586; for discussion, see L.C. Pro. d. Oct. 26, 1923, Vol. XV, pp. 117-118; for publication, see Gaz., 1924, Pt. VII, pp. 1-2. The Act took retrospective effect from the date on which the Agra Pre-emption Act, 1922 (U.P. Act XI of 1922), came into force.

[3] For S.O.R., see Gaz., 1929, Pt. VII, pp. 22-23; for R.S. Com., see ibid, 1929, Pt. VIII, p. 1218, for discussion, see L.C. Pro. d. June 28, 1929, and Oct. 25, 1929 in Vol. XLIII pp. 448-449, and Vol. XLIV, p. 462, respectively; for publication, see Gaz., 1830, Pt. VII, p. 7.

[4] Substituted by the A.O. 1950 for (Provl. Govt.) which had been Substituted by the A.O. 1937 for (L.G.).

[5] Substituted for (Gazette) ibid.

[6] Substituted by the A.O. 1950 for (Provl. Govt.) which had been Substituted by the A.O. 1937 for (L.G.).

[7] Substituted for (the) by s. 2 of U.P. Act VIII of 1923.

[8] Substituted for the words (but not removed) by s. 2 of IX U.P. Act of 1929.

[9] The word (heirs) Omitted ibid.

[10] Inserted by ibid.

 

[11] Inserted by s. 3 of U.P. Act IX of 1929.

[12] Substituted for (finds) by s. 4 ibid.

[13] The words (proceed to) Omitted by s. 4 ibid.

 

[14] The words (proceed to) Omitted by s. 4 ibid.

 

[15] Substituted for (finds) by s. 4 ibid.

[16] The words (proceed to) Omitted by s. 4 ibid.

 

[17] Added by s. 5 of U.P. Act IX of 1929.

[18] Removed from the place marked "* * * 3" and Inserted here by s. 6 ibid

[19] See note 2 above.