Introduction:
In case of transfer of land, pre-emption simply means right to purchase first. In other words, the act of buying a plot of land before of ahead of others.
Section 96 of The State Acquisition and Tenancy Act, 1950 and section 24 of The Non-Agricultural Tenancy Act, 1949 have described the provisions for pre-emption. Section 96 of The State Acquisition and Tenancy Act, 1950 was substituted by section 2 of The State Acquisition and Tenancy (Amendment) Act, 2006. However, provisions of pre-emption under section 96 of The State Acquisition and Tenancy Act, 1950 and section 24 of The Non-Agricultural Tenancy Act, 1949 shall not take away the right of pre-emption conferred on any person by the Mohammadan Law as per section 96(17) of The State Acquisition and Tenancy Act, 1950 and section 24(10) of The Non-Agricultural Tenancy Act,1949.
A clear conception of the terms “holding” and “co-sharer” is necessary for a better understanding of pre-emption. As per section 2(13) of The State Acquisition and Tenancy Act, “holding” means a parcel or parcels of land or an undivided share thereof and forming the subject of a separate tenancy. Assume “X” dies leaving three sons A,B,C and a land of same holding consisting of 6 plots. Each son will get his part as per the law of inheritance. Now three sons have sold a plot to some “D”. Now ABCD are co-sharer of the land of the same holding. While ABC have became co-sharer by inheritance, D has became co-sharer by purchasing. However, if ABC and D performs mutation in their names of the respective plots, it will be no longer land of the same holding.
When pre-emption is applicable:
As per section 96(1) of The State Acquisition and Tenancy Act, 1950 : If a portion or share of a holding of a raiyat is sold to a person who is not a co-sharer tenant in the holding. As per section 24(1) of The Non-Agricultural Tenancy Act, 1949: If a portion or share of the non-agricultural land held by a non-agricultural tenant is transferred.
Who can apply:
As per section 96(1) of The State Acquisition and Tenancy Act, 1950 : one or more co-sharer tenants of the holding : a co-sharer tenant in the holding by inheritance; and a person to whom sale of the holding or the portion or share thereof. As per section 24(1) of The Non-Agricultural Tenancy Act, 1949: one or more co-sharer tenants of such land. They may apply to the Court for the said portion or share to be sold to himself or themselves.
Amendment made: Earlier as per section 96(1) of the State Acquisition and Tenancy Act, the tenant or tenants holding lands contiguous to the land transferred have the competency to apply for pre-emption. However, after the amendment of 2006, contiguous land holders have no such power.
Time limit for application:
As per section 96(1) of The State Acquisition and Tenancy Act, 1950 : within two months of the service of the notice given under section 89, or, if no notice has been served under section 89, within two months of the date of the knowledge of the sale. Earlier, the time limit was four months. After 2006 amendment, it is now two months. As per section 24(1) of The Non-Agricultural Tenancy Act, 1949: within four months of the service of notice issued under section 23 and, in case no notice had been issued or served, then within four months from the date of knowledge of such transfer.
Deposits Needed:
The applicant will have to deposit the following amounts to the Court at the time of application:
Earlier provisions of section 96 of the SAT Act:
- the amount of consideration/value of the transferred land mentioned in section 89 or in the deed of transfer.
- compensation at the rate of ten per centum of the said value.
New provisions of section 96 of the SAT Act:
- the amount of consideration/value of the transferred land mentioned in section 89 or in the deed of transfer.
- compensation at the rate of twenty-five centum of the said value.
- Eight per centum simple annual interest upon the value of the transferred land (for the period of executing transfer deed to filing pre-emption case).
Provisions under section 24 of the NAT Act:
- the amount of consideration/value of the transferred land mentioned in section 23.
- compensation at the rate of five per centum of the said value.
Further Deposits May Be Needed:
After serving notices to the parties to the suit, taking hearing, holding enquiry and fixing by the Court, the applicants shall have to make further deposits for follows if necessary:
Provisions under section 89 of the SAT Act (earlier and new provisions are same):
A further sum, if necessary, to cover consideration money actually paid, other sums paid by the purchaser for rent, expenses incurred in annulling encumbrances or making any improvement of the land.
Provisions under section 24 of the NAT Act:
Such amount as the purchaser spent for rent, incurred in annulling encumbrances, in erecting any building or structure or making other improvement together with six and quarter per centum annual interest.
Passing of Order:
The Court shall determine who are entitled and pass order for pre-emption on following conditions:
Section 96 of SAT ACT (Earlier):
- if orders are passed in favour of more than one applicant, the Court shall apportion the land as it deems equitable.
- Purchaser be paid out of the deposit the amount of consideration money, ten per centum of such amount as compensation, amount spent for rent, incurred in annulling encumbrances or making other improvement.
Section 96 of SAT ACT (New):
- if orders are passed in favour of more than one applicant, the Court shall apportion the land as it deems equitable.
- Purchaser be paid out of the deposit.
Section 24 of NAT ACT :
- if orders are passed in favour of more than one applicant, the Court shall apportion the land as it deems equitable.
- Purchaser be paid out of the deposit.
Where Pre-emption is not applicable:
As per section 24(11) of The Non-Agricultural Tenancy Act, 1949: Nothing in this section shall apply to- (a) a transfer to a co-sharer in the tenancy whose existing interest has accrued otherwise than by purchase, or (b) a transfer by exchange, or partition, or (c) a transfer by bequest or gift (including heba but excluding heba-bil-ewaz for any pecuniary consideration) in favour of the husband or wife of the testator or the donor or of any relation by consanguinity within three degrees of the testator or donor, or (d) a wakf in accordance with the provisions of the Muhammadan Law, or (e) a debottor or any other dedication for religious or charitable purposes without any reservation of pecuniary benefit for any individual.
Case Laws:
(1) Section 24 of Non-Agricultural Tenancy Act and section 96 of State Acquisition and Tenancy Act is applicable for pre-emption of land falling within the municipal area. (Md. Abdur Rouf and others Vs. Ahmuda Khatun and others 1 BLD (AD) 269).
(2) Pre-emption may be allowed only in the case of transfer of the land to a co-sharer tenant. (S.M.Basiruddin Vs. Zahurul Islam Chowdhury (1983) 35 DLR (AD) 230).
Statutory Provisions:
Pre-emption Under The State Acquisition and Tenancy Act, 1950:
96. (1) If a portion or share of a holding of a raiyat is sold to a person who is not a co-sharer tenant in the holding, one or more co-sharer tenants of the holding may, within two months of the service of the notice given under section 89, or, if no notice has been served under section 89, within two months of the date of the knowledge of the sale, apply to the Court for the said portion or share to be sold to himself or themselves: Provided that no application under this section shall lie unless the applicant is-(a) a co-sharer tenant in the holding by inheritance; and (b) a person to whom sale of the holding or the portion or share thereof, as the case may be, can be made under section 90: Provided further that no application under this section shall lie after expiry of three years from the date of registration of the sale deed.
(2) In an application under sub-section (1), all other co-sharer tenants by inheritance of the holding and the purchaser shall be made parties.
(3) An application under sub-section (1) shall be dismissed unless the applicant or applicants, at the time of making it, deposit in the Court-
(a) the amount of the consideration money of the sold holding or portion or share of the holding as stated in the notice under section 89 or in the deed of sale, as the case may be;
(b) compensation at the rate of twenty five per centum of the amount referred to in clause (a); and
(c) an amount calculated at the rate of eight per centum simple annual interest upon the amount referred to in clause (a) for the period from the date of the execution of the deed of sale to the date of filing of the application for preemption.
(4) On receipt of such application accompanied by such deposits, the Court shall give notice to the purchaser and to the other persons made parties thereto under sub-section (2) to appear within such period as it may fix and shall require the purchaser to state what other sums he has paid in respect of rent since the date of sale and what expenses he has incurred in annulling encumbrances on, or for making any improvement in respect of the holding, portion or share sold.
(5) The Court shall, after giving all the parties an opportunity of being heard after holding an enquiry as to rent paid and the expenses incurred by the purchaser as referred to in sub-section (4), direct the applicant or applicants to deposit a further sum, if necessary, within such period as the Court thinks reasonable.
(6) When an application has been made under sub-section (1), any of the remaining co-sharer tenants may, within the period referred to in sub-section (1) or within two months of the date of the service of the notice of the application under sub-section (4), whichever be earlier, apply to join in the said application; any co-sharer tenant who has not applied either under sub-section (1) or under this sub-section, shall not have any further right to purchase under this section.
(7) On the expiry of the period within which an application may be made under sub-section (6), the Court shall determine, in accordance with the provisions of this section, which of the applications filed under sub-section (6) shall be allowed.
(8) If the Court finds that an order allowing the applications made under sub-section (7) is to be made in favour of more than one applicant, the Court shall determine the amount to be paid by each of such applicants and, after apportioning the amount, shall order the applicant or applicants who have joined in the original application under sub-section (6) to deposit in the Court the amounts payable by him or them within such period as it thinks reasonable; and if the deposit is not made by any such applicant within such period, his application shall be dismissed. (9) On the expiry of the period within which a deposit, if any, is to be made under sub-section (8), the Court shall pass orders-
(a) allowing the application or applications made by the applicant or applicants who are entitled to purchase under, and have complied with the provisions of, this section; (b) apportioning the holding or the portion or share of the holding among them in such manner as it deems equitable when such orders are passed in favour of more than one applicant under sub-section (8);
(c) refunding money to any one if entitled to such refund of any money from the amount deposited by the applicant or applicants under sub-sections (3) and (5);
(d) directing that the purchaser be paid out of the deposits made under sub-sections (3) and (5); (e) directing the purchaser to execute and register deed or deeds of sale within sixty days in favour of the person or persons whose application or applications have been allowed; and no tax, duty or fee shall be payable for such registration.
(10) If the purchaser fails to execute and register deed or deeds of sale in pursuance of the directions under clause (e) of sub-section (9), within sixty days in favour of the person or persons whose application or applications have been allowed, the court shall execute and present deed or deeds of sale for registration within sixty days thereafter in favour of such person or persons whose application or applications have been allowed.
(11) From the date of the registration of sale deed or deeds under clause (e) of sub-section (9) or under sub-section (10), the right, title and interest in the holding or portion or share thereof accruing to the purchaser from the sale shall, subject to any orders passed under sub-section (9), be deemed to have vested, free from all encumbrances which have been created after the date of sale, in the co-sharer tenant or tenants whose application or applications to purchase have been allowed under sub-section (9).
(12) The Court on further application of such applicant or applicants may place him or them, as the case may be, in possession of the property vested in him or them.
(13) No apportionment ordered under clause (b) of sub-section (9) shall operate as division of the holding.
(14) An application under this section shall be made to the Court which would have jurisdiction to entertain a suit for the possession of the land in connection with which the application is brought. (15) An Appeal shall lie to the ordinary Civil Appellate Court from any order of the Court under this section.
(16) Nothing in this section shall be deemed to apply to homestead land.
(17) Nothing in this section shall take away the right of pre-emption conferred on any person by the Mohammadan Law.
(18) Nothing in this section shall apply to any transfer of any portion or share of a holding of a raiyat or any application under section 96 of this Act, made prior to coming into force of the State Acquisition and Tenancy (Amendment) Act, 2006.]
Pre-emption under The Non-Agricultural Tenancy Act, 1949:
24. (1) If a portion or share of the non-agricultural land held by a non-agricultural tenant is transferred, one or more co-sharer tenants of such land may, within four months of the service of notice issued under section 23 and, in case no notice had been issued or served, then within four months from the date of knowledge of such transfer, apply to the court for such portion or share to be transferred to himself or to themselves, as the case may be.(2) The application under sub-section (1) shall be dismissed unless the applicant at the time of making it deposits in Court the amount of the consideration money or the value of the portion or share of the property transferred as stated in the notice served on the applicant under section 23 together with compensation at the rate of five per centum of such amount.(3) If such deposit is made, the Court shall give notice to the transferee to appear within such period as it may fix and to state what other sums he has paid in respect of rent for the period after the date of transfer or in annulling encumbrances on the property and also what other amounts, if any, have been spent by him, between the date of the transfer and the date of service of the notice of the application, in erecting any building or structure or in making any other improvement in the portion or share of the property transferred. The Court shall then direct the applicant, including any person whose application under sub-section (4) is granted, to deposit within such period as the Court thinks reasonable such amount as the transferee has paid or spent on these accounts together with interest at the rate of six and a quarter per centum per annum with effect from the date on which the transferee made such payments or spent such amounts:
Provided that if the correctness of any amount claimed to have been paid or spent by the transferee on any such account is disputed by any applicant the Court shall enquire into such dispute and, after giving the transferee an opportunity of being heard, determine the amount actually paid or spent by the transferee on any such account and shall then direct the applicant to deposit the amount so determined with interest at the rate of six and quarter per centum per annum as aforesaid within such period as the Court thinks reasonable.(4) (a) When an application has been made by one or more co-sharer tenants under sub-section (1) any of the remaining co-sharer tenants including the transferee, if one of them, may within the period of four months referred to in the said sub-section or within one month of the service of notice of the application, whichever is later, apply to join in the said application, and any co-sharer tenant who has not applied under sub-section (1) or has not applied to join under this sub-section, shall not have any further right to purchase under this section.(b) Such application to join as a co-applicant shall be dismissed unless within such period as the Court may fix, the applicant deposits in Court for payment to the applicant under sub-section (1), such sum, as the Court shall determine as the share to be paid by him for the purposes of sub-section (2).
(c) If such deposit is made, the Court shall grant the application to join and thereafter such applicant shall be deemed to be an applicant under sub-section (1).
(5) If the deposits required under sub-section (2) or clause (b) of sub-section (4), as the case may be, and under sub-section (3) are made, the Court shall make an order allowing the application and directing that the deposits made under sub-sections (2) and (3) shall be paid to the transferee or to such persons as the Court thinks fit.
(6) Notwithstanding anything contained in any other law for the time being in force the Court shall, if the applicant under sub-section (1) or any person whose application under sub-section (4) is granted disputes the correctness of the amount of the consideration money as stated in the notice issued under section 23, inquire into such dispute before making an order under sub-section (5) and after giving the transferee an opportunity of being heard determine for the purposes of this section the amount of the consideration money which the transferee has actually paid for the transfer of the portion or share of the property and the amount so determined shall be deemed to be the consideration money referred to in sub-section (2) and where the amount of the consideration money has been so determined the deposit made under that sub-section shall for the purposes of sub-section (5) be the amount so determined together with the compensation at the rate of five per centum of such amount.(7) In making an order under sub-section (5) in favour of more than one co-sharer tenant, the Court may apportion the property comprised in the portion or share transferred among the applicants in such manner as it deems equitable after taking existing possession into consideration; the Court shall so apportion the said property or portion thereof on the request of any applicant and, in this case, may require the applicant who makes such request to deposit, within such period as the Court may fix, such further sums as the Court considers necessary for equitable distribution among the remaining applicants:
Provided that no apportionment order under this sub-section shall operate as a division of the tenancy.
(8) From the date of making of the order under sub-section (5)-
(i) the right, title and interest in the share or portion of the non-agricultural land accruing to the transferee from the transfer shall, subject to any order passed under sub-section (7), vest free from all encumbrances, which have been created after the date of transfer, in the co-sharer tenant whose application to purchase has been allowed under sub-section (5),
(ii) the liability of the transferee for the rent due from him on account of the transfer shall cease, and
(iii) the Court, on further application of such applicant, may place him in possession of the property vested in him.
(9) An appeal from any order of a Court under this section shall lie to the Civil Appellate Court having jurisdiction to entertain such appeals.
(10) Nothing in this section shall take away the right of pre-emption conferred on any person by Muhammadan Law.
(11) Nothing in this section shall apply to-
(a) a transfer to a co-sharer in the tenancy whose existing interest has accrued otherwise than by purchase, or
(b) a transfer by exchange, or partition, or
(c) a transfer by bequest or gift (including heba but excluding heba-bil-ewaz for any pecuniary consideration) in favour of the husband or wife of the testator or the donor or of any relation by consanguinity within three degrees of the testator or donor, or
(d) a wakf in accordance with the provisions of the Muhammadan Law, or
(e) a debottor or any other dedication for religious or charitable purposes without any reservation of pecuniary benefit for any individual.
Explanation.- A relation by consanguinity shall for the purposes of this sub-section, include a son adopted under the Hindu Law.
In case of transfer of land, pre-emption simply means right to purchase first. In other words, the act of buying a plot of land before of ahead of others.
Section 96 of The State Acquisition and Tenancy Act, 1950 and section 24 of The Non-Agricultural Tenancy Act, 1949 have described the provisions for pre-emption. Section 96 of The State Acquisition and Tenancy Act, 1950 was substituted by section 2 of The State Acquisition and Tenancy (Amendment) Act, 2006. However, provisions of pre-emption under section 96 of The State Acquisition and Tenancy Act, 1950 and section 24 of The Non-Agricultural Tenancy Act, 1949 shall not take away the right of pre-emption conferred on any person by the Mohammadan Law as per section 96(17) of The State Acquisition and Tenancy Act, 1950 and section 24(10) of The Non-Agricultural Tenancy Act,1949.
A clear conception of the terms “holding” and “co-sharer” is necessary for a better understanding of pre-emption. As per section 2(13) of The State Acquisition and Tenancy Act, “holding” means a parcel or parcels of land or an undivided share thereof and forming the subject of a separate tenancy. Assume “X” dies leaving three sons A,B,C and a land of same holding consisting of 6 plots. Each son will get his part as per the law of inheritance. Now three sons have sold a plot to some “D”. Now ABCD are co-sharer of the land of the same holding. While ABC have became co-sharer by inheritance, D has became co-sharer by purchasing. However, if ABC and D performs mutation in their names of the respective plots, it will be no longer land of the same holding.
When pre-emption is applicable:
As per section 96(1) of The State Acquisition and Tenancy Act, 1950 : If a portion or share of a holding of a raiyat is sold to a person who is not a co-sharer tenant in the holding. As per section 24(1) of The Non-Agricultural Tenancy Act, 1949: If a portion or share of the non-agricultural land held by a non-agricultural tenant is transferred.
Who can apply:
As per section 96(1) of The State Acquisition and Tenancy Act, 1950 : one or more co-sharer tenants of the holding : a co-sharer tenant in the holding by inheritance; and a person to whom sale of the holding or the portion or share thereof. As per section 24(1) of The Non-Agricultural Tenancy Act, 1949: one or more co-sharer tenants of such land. They may apply to the Court for the said portion or share to be sold to himself or themselves.
Amendment made: Earlier as per section 96(1) of the State Acquisition and Tenancy Act, the tenant or tenants holding lands contiguous to the land transferred have the competency to apply for pre-emption. However, after the amendment of 2006, contiguous land holders have no such power.
Time limit for application:
As per section 96(1) of The State Acquisition and Tenancy Act, 1950 : within two months of the service of the notice given under section 89, or, if no notice has been served under section 89, within two months of the date of the knowledge of the sale. Earlier, the time limit was four months. After 2006 amendment, it is now two months. As per section 24(1) of The Non-Agricultural Tenancy Act, 1949: within four months of the service of notice issued under section 23 and, in case no notice had been issued or served, then within four months from the date of knowledge of such transfer.
Deposits Needed:
The applicant will have to deposit the following amounts to the Court at the time of application:
Earlier provisions of section 96 of the SAT Act:
- the amount of consideration/value of the transferred land mentioned in section 89 or in the deed of transfer.
- compensation at the rate of ten per centum of the said value.
New provisions of section 96 of the SAT Act:
- the amount of consideration/value of the transferred land mentioned in section 89 or in the deed of transfer.
- compensation at the rate of twenty-five centum of the said value.
- Eight per centum simple annual interest upon the value of the transferred land (for the period of executing transfer deed to filing pre-emption case).
Provisions under section 24 of the NAT Act:
- the amount of consideration/value of the transferred land mentioned in section 23.
- compensation at the rate of five per centum of the said value.
Further Deposits May Be Needed:
After serving notices to the parties to the suit, taking hearing, holding enquiry and fixing by the Court, the applicants shall have to make further deposits for follows if necessary:
Provisions under section 89 of the SAT Act (earlier and new provisions are same):
A further sum, if necessary, to cover consideration money actually paid, other sums paid by the purchaser for rent, expenses incurred in annulling encumbrances or making any improvement of the land.
Provisions under section 24 of the NAT Act:
Such amount as the purchaser spent for rent, incurred in annulling encumbrances, in erecting any building or structure or making other improvement together with six and quarter per centum annual interest.
Passing of Order:
The Court shall determine who are entitled and pass order for pre-emption on following conditions:
Section 96 of SAT ACT (Earlier):
- if orders are passed in favour of more than one applicant, the Court shall apportion the land as it deems equitable.
- Purchaser be paid out of the deposit the amount of consideration money, ten per centum of such amount as compensation, amount spent for rent, incurred in annulling encumbrances or making other improvement.
Section 96 of SAT ACT (New):
- if orders are passed in favour of more than one applicant, the Court shall apportion the land as it deems equitable.
- Purchaser be paid out of the deposit.
Section 24 of NAT ACT :
- if orders are passed in favour of more than one applicant, the Court shall apportion the land as it deems equitable.
- Purchaser be paid out of the deposit.
Where Pre-emption is not applicable:
As per section 24(11) of The Non-Agricultural Tenancy Act, 1949: Nothing in this section shall apply to- (a) a transfer to a co-sharer in the tenancy whose existing interest has accrued otherwise than by purchase, or (b) a transfer by exchange, or partition, or (c) a transfer by bequest or gift (including heba but excluding heba-bil-ewaz for any pecuniary consideration) in favour of the husband or wife of the testator or the donor or of any relation by consanguinity within three degrees of the testator or donor, or (d) a wakf in accordance with the provisions of the Muhammadan Law, or (e) a debottor or any other dedication for religious or charitable purposes without any reservation of pecuniary benefit for any individual.
Case Laws:
(1) Section 24 of Non-Agricultural Tenancy Act and section 96 of State Acquisition and Tenancy Act is applicable for pre-emption of land falling within the municipal area. (Md. Abdur Rouf and others Vs. Ahmuda Khatun and others 1 BLD (AD) 269).
(2) Pre-emption may be allowed only in the case of transfer of the land to a co-sharer tenant. (S.M.Basiruddin Vs. Zahurul Islam Chowdhury (1983) 35 DLR (AD) 230).
Statutory Provisions:
Pre-emption Under The State Acquisition and Tenancy Act, 1950:
96. (1) If a portion or share of a holding of a raiyat is sold to a person who is not a co-sharer tenant in the holding, one or more co-sharer tenants of the holding may, within two months of the service of the notice given under section 89, or, if no notice has been served under section 89, within two months of the date of the knowledge of the sale, apply to the Court for the said portion or share to be sold to himself or themselves: Provided that no application under this section shall lie unless the applicant is-(a) a co-sharer tenant in the holding by inheritance; and (b) a person to whom sale of the holding or the portion or share thereof, as the case may be, can be made under section 90: Provided further that no application under this section shall lie after expiry of three years from the date of registration of the sale deed.
(2) In an application under sub-section (1), all other co-sharer tenants by inheritance of the holding and the purchaser shall be made parties.
(3) An application under sub-section (1) shall be dismissed unless the applicant or applicants, at the time of making it, deposit in the Court-
(a) the amount of the consideration money of the sold holding or portion or share of the holding as stated in the notice under section 89 or in the deed of sale, as the case may be;
(b) compensation at the rate of twenty five per centum of the amount referred to in clause (a); and
(c) an amount calculated at the rate of eight per centum simple annual interest upon the amount referred to in clause (a) for the period from the date of the execution of the deed of sale to the date of filing of the application for preemption.
(4) On receipt of such application accompanied by such deposits, the Court shall give notice to the purchaser and to the other persons made parties thereto under sub-section (2) to appear within such period as it may fix and shall require the purchaser to state what other sums he has paid in respect of rent since the date of sale and what expenses he has incurred in annulling encumbrances on, or for making any improvement in respect of the holding, portion or share sold.
(5) The Court shall, after giving all the parties an opportunity of being heard after holding an enquiry as to rent paid and the expenses incurred by the purchaser as referred to in sub-section (4), direct the applicant or applicants to deposit a further sum, if necessary, within such period as the Court thinks reasonable.
(6) When an application has been made under sub-section (1), any of the remaining co-sharer tenants may, within the period referred to in sub-section (1) or within two months of the date of the service of the notice of the application under sub-section (4), whichever be earlier, apply to join in the said application; any co-sharer tenant who has not applied either under sub-section (1) or under this sub-section, shall not have any further right to purchase under this section.
(7) On the expiry of the period within which an application may be made under sub-section (6), the Court shall determine, in accordance with the provisions of this section, which of the applications filed under sub-section (6) shall be allowed.
(8) If the Court finds that an order allowing the applications made under sub-section (7) is to be made in favour of more than one applicant, the Court shall determine the amount to be paid by each of such applicants and, after apportioning the amount, shall order the applicant or applicants who have joined in the original application under sub-section (6) to deposit in the Court the amounts payable by him or them within such period as it thinks reasonable; and if the deposit is not made by any such applicant within such period, his application shall be dismissed. (9) On the expiry of the period within which a deposit, if any, is to be made under sub-section (8), the Court shall pass orders-
(a) allowing the application or applications made by the applicant or applicants who are entitled to purchase under, and have complied with the provisions of, this section; (b) apportioning the holding or the portion or share of the holding among them in such manner as it deems equitable when such orders are passed in favour of more than one applicant under sub-section (8);
(c) refunding money to any one if entitled to such refund of any money from the amount deposited by the applicant or applicants under sub-sections (3) and (5);
(d) directing that the purchaser be paid out of the deposits made under sub-sections (3) and (5); (e) directing the purchaser to execute and register deed or deeds of sale within sixty days in favour of the person or persons whose application or applications have been allowed; and no tax, duty or fee shall be payable for such registration.
(10) If the purchaser fails to execute and register deed or deeds of sale in pursuance of the directions under clause (e) of sub-section (9), within sixty days in favour of the person or persons whose application or applications have been allowed, the court shall execute and present deed or deeds of sale for registration within sixty days thereafter in favour of such person or persons whose application or applications have been allowed.
(11) From the date of the registration of sale deed or deeds under clause (e) of sub-section (9) or under sub-section (10), the right, title and interest in the holding or portion or share thereof accruing to the purchaser from the sale shall, subject to any orders passed under sub-section (9), be deemed to have vested, free from all encumbrances which have been created after the date of sale, in the co-sharer tenant or tenants whose application or applications to purchase have been allowed under sub-section (9).
(12) The Court on further application of such applicant or applicants may place him or them, as the case may be, in possession of the property vested in him or them.
(13) No apportionment ordered under clause (b) of sub-section (9) shall operate as division of the holding.
(14) An application under this section shall be made to the Court which would have jurisdiction to entertain a suit for the possession of the land in connection with which the application is brought. (15) An Appeal shall lie to the ordinary Civil Appellate Court from any order of the Court under this section.
(16) Nothing in this section shall be deemed to apply to homestead land.
(17) Nothing in this section shall take away the right of pre-emption conferred on any person by the Mohammadan Law.
(18) Nothing in this section shall apply to any transfer of any portion or share of a holding of a raiyat or any application under section 96 of this Act, made prior to coming into force of the State Acquisition and Tenancy (Amendment) Act, 2006.]
Pre-emption under The Non-Agricultural Tenancy Act, 1949:
24. (1) If a portion or share of the non-agricultural land held by a non-agricultural tenant is transferred, one or more co-sharer tenants of such land may, within four months of the service of notice issued under section 23 and, in case no notice had been issued or served, then within four months from the date of knowledge of such transfer, apply to the court for such portion or share to be transferred to himself or to themselves, as the case may be.(2) The application under sub-section (1) shall be dismissed unless the applicant at the time of making it deposits in Court the amount of the consideration money or the value of the portion or share of the property transferred as stated in the notice served on the applicant under section 23 together with compensation at the rate of five per centum of such amount.(3) If such deposit is made, the Court shall give notice to the transferee to appear within such period as it may fix and to state what other sums he has paid in respect of rent for the period after the date of transfer or in annulling encumbrances on the property and also what other amounts, if any, have been spent by him, between the date of the transfer and the date of service of the notice of the application, in erecting any building or structure or in making any other improvement in the portion or share of the property transferred. The Court shall then direct the applicant, including any person whose application under sub-section (4) is granted, to deposit within such period as the Court thinks reasonable such amount as the transferee has paid or spent on these accounts together with interest at the rate of six and a quarter per centum per annum with effect from the date on which the transferee made such payments or spent such amounts:
Provided that if the correctness of any amount claimed to have been paid or spent by the transferee on any such account is disputed by any applicant the Court shall enquire into such dispute and, after giving the transferee an opportunity of being heard, determine the amount actually paid or spent by the transferee on any such account and shall then direct the applicant to deposit the amount so determined with interest at the rate of six and quarter per centum per annum as aforesaid within such period as the Court thinks reasonable.(4) (a) When an application has been made by one or more co-sharer tenants under sub-section (1) any of the remaining co-sharer tenants including the transferee, if one of them, may within the period of four months referred to in the said sub-section or within one month of the service of notice of the application, whichever is later, apply to join in the said application, and any co-sharer tenant who has not applied under sub-section (1) or has not applied to join under this sub-section, shall not have any further right to purchase under this section.(b) Such application to join as a co-applicant shall be dismissed unless within such period as the Court may fix, the applicant deposits in Court for payment to the applicant under sub-section (1), such sum, as the Court shall determine as the share to be paid by him for the purposes of sub-section (2).
(c) If such deposit is made, the Court shall grant the application to join and thereafter such applicant shall be deemed to be an applicant under sub-section (1).
(5) If the deposits required under sub-section (2) or clause (b) of sub-section (4), as the case may be, and under sub-section (3) are made, the Court shall make an order allowing the application and directing that the deposits made under sub-sections (2) and (3) shall be paid to the transferee or to such persons as the Court thinks fit.
(6) Notwithstanding anything contained in any other law for the time being in force the Court shall, if the applicant under sub-section (1) or any person whose application under sub-section (4) is granted disputes the correctness of the amount of the consideration money as stated in the notice issued under section 23, inquire into such dispute before making an order under sub-section (5) and after giving the transferee an opportunity of being heard determine for the purposes of this section the amount of the consideration money which the transferee has actually paid for the transfer of the portion or share of the property and the amount so determined shall be deemed to be the consideration money referred to in sub-section (2) and where the amount of the consideration money has been so determined the deposit made under that sub-section shall for the purposes of sub-section (5) be the amount so determined together with the compensation at the rate of five per centum of such amount.(7) In making an order under sub-section (5) in favour of more than one co-sharer tenant, the Court may apportion the property comprised in the portion or share transferred among the applicants in such manner as it deems equitable after taking existing possession into consideration; the Court shall so apportion the said property or portion thereof on the request of any applicant and, in this case, may require the applicant who makes such request to deposit, within such period as the Court may fix, such further sums as the Court considers necessary for equitable distribution among the remaining applicants:
Provided that no apportionment order under this sub-section shall operate as a division of the tenancy.
(8) From the date of making of the order under sub-section (5)-
(i) the right, title and interest in the share or portion of the non-agricultural land accruing to the transferee from the transfer shall, subject to any order passed under sub-section (7), vest free from all encumbrances, which have been created after the date of transfer, in the co-sharer tenant whose application to purchase has been allowed under sub-section (5),
(ii) the liability of the transferee for the rent due from him on account of the transfer shall cease, and
(iii) the Court, on further application of such applicant, may place him in possession of the property vested in him.
(9) An appeal from any order of a Court under this section shall lie to the Civil Appellate Court having jurisdiction to entertain such appeals.
(10) Nothing in this section shall take away the right of pre-emption conferred on any person by Muhammadan Law.
(11) Nothing in this section shall apply to-
(a) a transfer to a co-sharer in the tenancy whose existing interest has accrued otherwise than by purchase, or
(b) a transfer by exchange, or partition, or
(c) a transfer by bequest or gift (including heba but excluding heba-bil-ewaz for any pecuniary consideration) in favour of the husband or wife of the testator or the donor or of any relation by consanguinity within three degrees of the testator or donor, or
(d) a wakf in accordance with the provisions of the Muhammadan Law, or
(e) a debottor or any other dedication for religious or charitable purposes without any reservation of pecuniary benefit for any individual.
Explanation.- A relation by consanguinity shall for the purposes of this sub-section, include a son adopted under the Hindu Law.
