RAJASTHAN PRE-EMPTION ACT, 1966

  

  

 

   RAJASTHAN PRE-EMPTION ACT, 1966 
 
                        Preamble -  RAJASTHAN  PRE-EMPTION  ACT,  1966 

 

THE RAJASTHAN PRE-EMPTION  

ACT, 1966 

[Act No.  01  of  1966] 
 

 

PREAMBLE 

[01st  February,  1966] 

 

   An Act to consolidate and amend the law relating to pre-emption in the State of 
Rajasthan. 

Be it enacted by  the  Rajasthan  State  Legislature  in  the  Sixteenth  Year  of  the  Republic  of  
India as follows; -- 

 
     Chapter I - PRELIMINARY 

 

  Section 1 - Short title, extent and commencement 
 

(1) This Act  may  be  called  the  Rajasthan  Pre-emption  Act,  1966. 
 

(2) It extends to the whole of the State of Rajasthan. 

(3) It shall  come  into  force  at  once. 
 

          Section 2 - Definitions 
 

  In this  Act,  unless  the  subject  or  context  requires  otherwise,-- 
 

 
(i)  "co-sharer", used in relation to any immovable property, means any person 

entitled as an owner or a proprietor  to  any  share  or  part  in  such  property, 

whether his name  is  or  is  not  recorded  as  such  owner  or  proprietor  in  the 

record of rights or in any register prepared in accordance with law; 

 

 
(ii)  "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 

(Central Act 5 of 1908); 



  

  

 
 
 

(iii)  "house" means any hut or building and includes any compound or enclosure 

appertaining thereto; 

 
(iv)  "immovable property" means land or house property, wherever situated in the 

State; 

 
(v)  "land" includes things attached to the earth, or permanently fastened to 

anything attached to the earth, when sold  or  foreclosed  alongwith  the  land  to 

which they are attached but not otherwise; 

 
(vi)  "purchaser" includes a person who has acquired  immovable  property  under  a 

final decree for foreclosure; 

 
(vii)  "sale" means  a  transfer  of  ownership  in  immovable  property  in  exchange  for 

a price paid or promised or partly paid and partly promised; 

 
(viii)  "transfer" means a  sale,  or  a  mortgage  where  the  final  decree  for  foreclosure 

in respect thereof has been passed. 

 
   

          Chapter II - PRE-EMPTION 

 
 
     Section 3 - "Right of pre-emption" defined 

 
The "right of pre-emption" is the right  accruing  under  section  4  of  this  Act,  upon  a  transfer  of 

any  immovable  property,  to  acquire  such  property  and   to   be   substituted   as   the   transferee 

thereof  in  place  of  and  in  preference  to   the   original   transferee   and   "pre-emptor"   means   a 

person having a right of pre-emption. 

 
              Section 4 - Cases in which right of pre-emption accrues 

Subject  to  the  provisions  contained  in  section  5,   the   right   of   pre-emption   shall,   upon   the 

transfer of any immovable property, accrue to the persons mentioned in section 6. 

 

     Section 5 - Cases in which right of pre-emption does not accrue 
 

(1)          The right  of  pre-emption  shall  not  accrue— 

 
(a)  upon the transfer of a shop, katra, sarai, musafirkhana, dharamshala, temple, 

mosque or other similar buildings; or 

 



  

  

(b) upon a  sale— 

(i) by or  to  the  Central  or  State  Government,  or 

 
(ii) by or  to  any  local  authority,  or 

(iii)  to any company under the provisions of Part VII  of  the  Rajasthan 

Land Acquisition Act, 1953 (Rajasthan Act 24 of 1953), or 

(iv) for the  purpose  of  a  manufacturing  industry;  or 
 
 

(c)  on a transfer to any of the persons  mentioned  in  section  6,  to  any  person 

who has an equal or inferior right of pre-emption; or 

 
(d) in the  case  of  a  transfer  by  joint  owners,  to  a  party  to  such  transfer;  or 

 

(e) in respect  of— 
 

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

 
(ii)  any sale in default of payment of land revenue or of any sum legally 

recoverable as in arrear of land revenue: 

 
Provided that, in the case  contemplated  by  sub-clause  (iv)  of  clause(b)  the 

right of pre-emption shall accrue, subject  to  the  other  provisions  of  this 

Act, on the expiry of one year  from  the  date  of  the  registration  of  the sale-

deed, in case such sale is made without  a  registered  deed  from  the date of 

taking physical possession of the immovable property sold if  such property  has  

not  been  used  in  good  faith   for   the   purpose   for   which   it was ostensibly 

purchased. 

(2) Nothing in  this  Act  shall  – 

 
(a)  affect the provisions of rule 88 of Order  XXI  of  the  Code  of  Civil  Procedure, 

1908 (Central Act 5 of  1908)  or  the  provisions  of  the  Rajasthan  Tenancy  Act, 

1955 (Rajasthan Act 3 of 1965) or of the Rajasthan Land Revenue Act, 1956 

(Rajasthan Act  15  of  1956),  or  of  the  Rajasthan  Colonisation  Act,.  1954 

(Rajasthan Act 27 of 1954), or 

 
 

(b)  confer on any person, the right of pre-emption in respect of any immovable 

property which such person is not  entitled  to  purchase;  under  any  law  for  the 

time being in force. 

 

 



  

  

  Section 6 - Persons to whom right of pre-emption accrues 
 

(1) Subject  to  the  other  provisions  of  this,  Act,  the  right  of  pre-emption  in   respect  of 

arty  immovable  property  transferred  shall   accrue   to,   and   vest   in,   the   following 

classes of persons, namely: -- 

 
 

(i) co-sharers of  or  partners  in  the  property  transferred, 
 

(ii)  owners of other  immovable  property  with  a  stair-case  or  an  entrance  or 

other right or amenity common to such other  property  and  the  property 

transferred, and 

 
(iii) owners of  property  servant  or  dominant  to  the  property  transferred. 

 
(2)   Among the different classes of  persons  mentioned  in  sub-section  (1),  persons  of  the 

first class will exclude  those  of  the  other  classes,  persons  of  the  second  will  exclude 

those of the third class. 

 
(3)  Among  persons  of  the  same  class  claiming  the  right  of  preemption  the   person 

nearer in relationship to the person whose property is  transferred  will  exclude  the 

more remote. 

 
(4)  Where two or more persons  of  the  same  class,  claiming  the  right  of  pre-emption, 

are equally entitled thereto in all respects, the court may— 

 
(a)  determine, by drawing lots, the person in whose favour pre-emption may be 

decreed, or 

 
(b)  after taking into consideration the circumstances of the case  and  the 

respective requirements of all such persons,-- 

 
(i)  determine which of  such  persons  may  be  allowed  to  exercise  the 

right in preference to the rest, or 

 
(ii)  direct the division of  the  property  equally  among  all  such  persons, 

each  of  them  paying  an  equal  share  of  the  consideration   for   the 

transfer. 

 
            Section 7 - Power to exclude 

 
(1)  Whenever the State Government considers it expedient to do so on account of the 

prevalence or non-prevalence  of  any  law  or  custom  in  any  locality  or  in  the  interests 

of the general public of such locality or for the protection of the interests of any 



  

  

scheduled  tribe  in  such  locality  or  because  of  the   existence   of   any   other   ground 

which  the  State  Government  considers  to  be   reasonable   and   adequate   in   the 

particular  circumstances  obtaining  in  such  locality,  it  may,   by   notification   in   the 

Official Gazette,  declare  that,  in  any  local  area  or  with  respect  to  any  immovable 

property or class of immovable property therein or  with  respect  to  any  transfer  or 

class of transfers therein no right of pre-emption, or  only  such  limited  right  as  the 

State Government may specify in the notification, shall accrue. 

 
(2)  The notification  issued  under  sub-section  (1)  shall  be  laid,  as  soon  as  may  be  after 

it is so issued, before  the  House  of  the  State  Legislature  while  it  is  in  session,  for  a 

period of not less than fourteen days  which  may  be  comprised  in  one  session  or  in 

two successive sessions and  if,  before  the  expiry  of  the  session  in  which  it  is  so  laid 

or  of  the  session  immediately  following,   the   House   of   the   State   Legislature   makes 

any modification in such notification or  resolves  that  such  notification  should  not  be 

issued, such notification  shall  thereafter  have  effect  only  in  such  modified  form  or  be 

of  no  effect,  as  the  case  may  be,  so  however  that  any   such   modification   or 

annulment shall be without prejudice to the validity  of  anything  previously  done 

thereunder. 

 
                Chapter III  -  PROCEDURE 

 
            Section 8 - Notice to pre-emptors 

 
(1)  When any person  proposes  to  sell,  or  to  foreclose  the  right  to  redeem,  any 

immovable property, in respect  of  which  any  persons  have  a  right  of  pre-emption,  he 

shall give notice to all such  persona  as  to  the  price  at  which  he  is  proposing  so  to 

sell or as  to  the  amount  due  in  respect  of  the  mortgage  proposed  to  be  foreclosed, 

as the case may be. 

 
 
 

(2)  Such notice shall be given through the civil court, within the local limits of whose 

jurisdiction  the  property  concerned  is  situated  shall  clearly  describe   such   property, 

shall  state  the  name  and  other  particulars  of  the  purchaser   or   the   mortgagee   and 

shall be served in the manner prescribed for service of summons in civil suits. 

 
 
                 Section 9 - Loss of right of pre-emption on transfer 

 
Any person  having  a  right  of  pre-emption  in  respect  of  any  immovable  property  proposed  to  be 

sold shall lose such, right  unless  within  two  months  from  the  date  of  the  service  of  such  notice, 

he or his  agent  pays  or  tenders  the  price  specified  in  the  notice  given  under  section  8  to  the 

person so proposing to sell: 



  

  

Provided that the right of pre-emption shall not be so lost  if  the  immovable  property  in 

question is  actually  sold  for  an  amount  smaller  than  that  mentioned  in  the  notice  or  to 

a person not mentioned in the notice as purchaser. 

 
   Section 10 - Loss of right of pre-emption on foreclosure 

 
When the right of pre-emption accrues in  respect  of  the  foreclosure  of  a  mortgage,  any  person 

entitled to such right shall lose  the  same  unless  within  two  months  from  the  date  of  service  of 

the notice given under section 8,  he  pays  or  tenders  to  the  mortgagee  or  his  successor  in  title 

the amount specified in such notice; 

Provided that the right of pre-emption shall not be so lost if the amount claimed  by  the 

mortgagee  was  not  really  due  on  the  footing  of  the   mortgage   or   was   not   claimed   in 

good faith. 

 
  Section 11 - Suit to enforce right of pre-emption 

 
(1)  When a transfer has been completed, a suit to enforce  the  right  of  pre-emption 

shall, subject to the provisions contained in  section  19,  lie,  and  may  be  brought  by 

any person entitled thereto, on any one or more of the following grounds, namely:.— 

 
 

(a) that no  due  notice  was  given  or  served  as  required  by  section  8; 

 
(b) that a  tender  was  made  under  section  9  or  section  10  but  was  refused; 

 

(c)  that, in case  of  a  sale,  the  price  stated  in  the  notice  given  under  section  8 

was not specified or was not mentioned in good faith; 

 
(d)  that, in the  case  of  a  mortgage  sought  to  be  foreclosed,  the  amount  claimed 

by the mortgagee was not really  due  on  the  footing  of  the  mortgage  or  was 

not claimed in good faith; 

(e)  that the amount  so  claimed  by  the  mortgagee  exceeds  the  fair  market  value 

of the property mortgaged; 

 
(f)  that the property proposed to be  transferred  was  not  property  described  in 

the notice given under section 8; 

 
(g)  that the property in question has  been  transferred  to  a  person  other  than 

the purchaser mentioned in the said notice: 

 
Provided  that  no  such  suit  shall  lie  under  this  Act  in  respect  of  a  portion  only  of 

the immovable property transferred  unless  the  plaintiff  has  a  right  of  pre-emption 



  

  

in respect of only a portion of such property. 

(2)  Where, in  any  suit  on  the  basis  of  a  sale,  the  court  finds  that  the  price  alleged  to 

have been paid was not fixed in good faith or  was  not  actually  paid,  the  court  shall 

ascertain  the  actual  price  paid,  (the  burden  of  proving  which  shall  lie   on   the 

purchaser) or shall fix such price as appears to it to be the fair market  value  of  the 

immovable property sold: 

Provided that when  the  price  alleged  to  have  been  paid  represents  entir  ely  or  mainly  a 

debt greatly exceeding in amount the fair market value  of  the  property  sold,  the  court 

shall determine such market value which shall be the price for the purposes of the suit. 

(3)  Where, in any suit on the basis of  a  foreclosed  mortgage,  the  court  finds  that  the 

amount of the decree  has  been  inflated  by  fraud  or  collusion  and  that  the  amount 

claimed by the mortgagee was not  really  due  on  the  footing  of  the  mortgage  or  was 

not  claimed  in  good  faith  or  exceeds  the  fair   market   value   of   the   property 

mortgaged, the amount  to  be  paid  to  the  mortgagee  shall  not  exceed  what  the  court 

finds to be such market value. 

 
(4)  For the purpose of determining the fair market value of any property, the court may 

consider the following among other matters as evidence of such value:-- 

 
(a) the estimated  amount  of  the  average  annual  net  assets  of  the  property; 

(b) the amount  of  the  taxes  assessed  thereon; 

(c) the value  of  similar  property  in  the  neighbourhood; 

(d) the value  of  the  property  in  question  as  shown  by  previous  transfers. 
 

  Section 12 - 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  respect  of  the  other  suits  and  all  the  suits 

shall  be  consolidated  and  disposed  of  by  a  single  decree  which  shall  determine   the  extent  to 

which, the  order  in  which,  and  the  terms  and  conditions  under  which,  each  plaintiff  shall  be 

entitled to preemption. 

 
  Section 13 - Decree to fix time for payment 

 
If  the  court  finds  for  the  plaintiff,  the  decree  shall  specify  a  date  on   or   before   which   the 

purchase money or the amount to be paid to the mortgagee shall be paid. 

 
  Section 14 - Effect of non-payment 

 
If the purchase  money  or  amount  is  not  paid  into  the  court  before  it  rises  on  the  day  fixed  by 



  

  

it under section 13, the plaintiff's suit shall stand  dismissed  and  he  shall,  so  far  as  relates  to 

such  sale  or  mortgage,  lose  his  right  of  pre-emption  over  the  property   to   which   the   decree 

relates  and  shall  also  bear  the  costs  of  the  defendants  unless  the  court,  for   reasons   to   be 

recorded at the time of passing the decree, otherwise directs. 

 

  Section 15 - Effect of loss of right of pre-emption 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  the  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  purchaser  after  the  institution of 
a suit for pre-emption shall defeat any right which the plaintiff had at the date such  institution. 

 
 

  Section 16 - Associating in suit co-plaintiff with inferior rights 
 

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 right higher  than  that  of  such,  pre-emptor  of  the 

lower class. 

 

 
  Section 17 - Joint purchase by persons one of whom is liable to pre-emption 

 
Where property is jointly  purchased  or  foreclosed  by  two  or  more  persons  against  one  of  whom 

only there is a right of pre-emption, such right may be claimed as against all of them. 

 
Explanation.--This section does not apply  where  each  such  person  acquires  a  defined 

interest. 

 

  
  Section 18 - 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. 

 

 

 

 

 

 
 



  

  

    Chapter IV  -  MISCELLANEOUS  PROVISIONS 
 
 
  Section 19 - Transfer of property to pre-emptor or acquisition of right by  
                     original transferee prior to suit 

 
No suit for pre-emption shall lie where prior to the institution of such  suit,  the  transferee  has 

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  property  which,  if  existing 

at the date of the transfer, would have barred the suit. 

 

 
  Section 20 - Date on which pre-emptor'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  into  court  the  sum  of  money  required  to   be   paid   in 

accordance with the pre-emption decree,  but,  upon  such  payment  being  made,  any  alienation  of 

the property made by the original  transferee  or  by  any  person  claiming  through  ham  shall  be 

voidable at the option of the decree-holder with effect from the date of such payment. 

 

  Section 21 - Special provision for limitation 
 

(1)  Subject to the provisions contained in the proviso to sub-section (1) of  section  5,  the 

period of limitation, in  any  case  not  provided  for  by  article  97  of  the  First  Schedule 

to the Limitation  Act,  1963  (Central  Act  36  of  1963),  for  a  suit  to  enforce  the  right 

of pre-emption under this  Act  shall,  notwithstanding  anything  contained  in  article  113 

of the said schedule of the said Act, be one year from the date on which,-- 

 
 
 

(a)  in the case of a sale made without a registered  sale-deed,  the  purchaser 

takes under the sale physical possession of any part of the property sold, and 

 
 
 

(b) in the  case  of  a  foreclosure,  the  final  decree  for  foreclosure  is  passed. 
 
 
 

(2)  The period  of  limitation  for  a  suit  to  enforce  a  right  of  preemption  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. 

 

 



  

  

  Section 22 - Saving of rights previously accrued 
 

Except as provided in sub-section (2)  of  section  21,  nothing  in  this  Act  shall  affect  any  right, 

privilege,  obligation  or  liability  acquired,  accrued  or  insured  in  respect  of   any   transfer   made 

before the commencement of this Act. 

 

 
  Section 23 - Abolition of other rights of pre-emption 

 
No right of pre-emption shall be enforced in  respect  of  any  transfer  made  after  the 

commencement of this Act except in accordance with the provisions of this Act. 

 

 
  Section 24 - Repeal 

 
(1)  The following enactments are hereby repealed to the extent specified  against  each  of 

them, namely:-- 

1. The Ajmer Laws Regulation, 1877. Chapter II. 

 
2. The Bikaner  State  Pre-emption  Act,  1919.  The  whole. 

 

3. The Marwar  Law  of  Pre-emption,  1922.  The  whole. 
 

4. The  Bharatpur  State  Pre-emption  Law,  1922.  The  whole. 
 

5. The  Banswara  State  Law  of  Pre-emption,  1924.  The  whole. 

6. The  Dungarpur  State  Law  of  Pre-emption,  1939.  The  whole. 

7. The Alwar  State  Pre-emption  Act,  1946.  The  whole. 
 
 

(2)  All other corresponding laws, including rules,  notifications  and  orders,  in  force  in 

any other part of the State, are also hereby repealed.