Right of Pre-emption

THE PUNJAB PRE-EMPTION ACT 1991 (Pb. Act IX of 1991)   The Punjab Pre-emption Act, 1991, holds a pivotal role in regulating land transactions in the Punjab province of Pakistan. This act provides a legal mechanism for preempting or purchasing certain properties before they are sold to someone else. Its primary objective is to maintain the social fabric of rural communities by preventing the fragmentation of agricultural land and ensuring that it remains with the existing landowners or co-sharers. The Punjab Pre-emption Act, 1991, serves as a significant legal framework for property transactions in the province. C O N T E N T S Sections Short title, extent and commencement. Definitions. Interpretation. Act to override other laws. Right of pre-emption. Persons in whom the right of pre-emption vests. Priorities in the right of pre-emption. Joint right of pre-emption how exercised. Method of distribution of the property where more than one persons are equally entitled. Withdrawal of claim. Sale of appurtenances of land. Right to revoke sale. Demand of pre-emption. Demand by guardian or agent. Waiver of the right of pre-emption. Death of pre-emptor. Abatement of right of pre-emption. Exercise of right of pre-emption by a Muslim and a non-Muslim against each other. Right of pre-emption non-transferable and indivisible. Where the pre-emptor and vendee equally entitled. Improvements made by the vendee. Improvement made in the status of the vendee-defendant after institution of the Suit. No right of pre-emption in respect of certain properties. Plaintiff to deposit sale price of the property. Deposit or refund of excess price. Sum deposited by pre-emptor not to be attached. Determination of price. Market value how to be determined. Government may exclude areas from pre-emption. Limitation. Notice. Matters ancillary or akin to the provisions of this Act. Application of the Civil Procedure Code and Qanun-e-Shahadat Order. Repeal of Act I of 1913. Saving. Rules. Repeal of Ordinance IX of 1991.   THE PUNJAB PRE-EMPTION ACT 1991 (Pb. Act IX of 1991) [6 April 1991] An Act to bring in conformity with the injunctions of Islam the law relating to pre-emption Preamble.— Whereas it is expedient to re-enact the existing law relating to pre-emption, so as to bring it in conformity with the injunctions of Islam as set out in the Holy Qur’an and Sunnah;       It is hereby enacted as follows:- Short title, extent and commencement.— (1) This Act may be called the Punjab Pre-emption Act 1991.       (2)  It extends to the whole of the Punjab.       (3)  It shall come into force at once. Definitions.— In this Act, unless there is anything repugnant in the subject or context—       (a)  “immovable property” means immovable property situated in any area other than an urban area or within cantonment limits as declared by any law relating to Local Bodies or Cantonments, as the case may be, for the time being in force;       (b)  “pre-emptor” means a person who has the right of pre-emption;       (c)  “right of pre-emption” means a right to acquire by purchase an immovable property in preference to other persons by reason of such right; and       (d)  “sale” means permanent transfer of the ownership of an immovable property in exchange for a valuable consideration and includes transfer of an immovable property by way of ‘hiba bil-iwaz’ or ‘hiba ba-shart-ul-iwaz’, but does not include—                (i)  transfer of an immovable property through inheritance or will or gift, other than ‘hiba bil-iwaz’ or ‘hiba ba-shart-ul-iwaz’;               (ii)  a sale in execution of a decree for money or of any order of a civil, criminal, revenue or any other court or a Revenue Officer or any local authority;              (iii)  exchange of agricultural land; and              (iv)  transfer of an immovable property for a consideration other than valuable consideration, such as the transfer of an immovable property by way of dower or composition in a murder or hurt case. Interpretation.— In the interpretation and the application of the provisions of this Act, the Court shall seek guidance from the Holy Qur’an and Sunnah. Act to override other laws.— The provisions of this Act shall have effect notwithstanding anything in any other law for the time being in force. Right of pre-emption.— The right of pre-emption shall arise in case of sale of immovable property. Persons in whom the right of pre-emption vests.— (1) The right of pre-emption shall vest—       (a)  firstly, in Shafi Sharik;       (b)  secondly, in Shafi Khalit; and       (c)  thirdly, in Shafi Jar.       Explanation.— I ‘Shafi Sharik’ means a person who is a co-owner in the corpus of the undivided immovable property sold.         II  ‘Shafi Khalit’ means a participator in the special rights attached to the immovable property sold, such as right of passage, right of passage of water or right of irrigation.        III  ‘Shafi Jar’ means a person who has a right of pre-emption because of owning an immovable property adjacent to the immovable property sold.       (2)  Notwithstanding anything in sub-section (1), the right of pre-emption shall be exercisable only in case of ‘Zaroorat’ or to avoid ‘Zarar’. Priorities in the right of pre-emption.— Where there are more than one participators in the special rights attached to the immovable property sold, the person having a special right shall have precedence over a person having a general right. ILLUSTRATIONS I)  A garden is irrigated by a water course which opens from a small canal. If this garden is sold, the person having right of irrigation from the water course shall have precedence over a person having right of irrigation from the canal. But if such garden is irrigated from the small canal, the person having right of irrigation from the water course as well as the person having right of irrigation from the canal shall have the right of pre-emption. II)  Where there are more than one pre-emptors and one has right of passage and the other has right of passage of water attached to the immovable property sold, the person having right of