INTRODUCTION
Section 27 Under Punjab Pre-emption Act, 1991 empowered to Court to determine the market value of the property. The sound guidelines for the determination of the market value of the property describes in section 28 of this Act.
RELEVANT PROVISIONS
Sections 27, 28 of Punjab Pre-emption Act, 1991.
LITERAL MEANING
The price that a seller is willing to accept and the buyer is willing to pay on the open market.
DEFINITION OF MARKET VALUE
The price of value actually received or to be received by the vendor from the vendee.
EVIDENCE OF MARKET VALUE
The best evidence of market value is the price paid by the vendee and received by the vendor.
WHEN MARKET VALUE IS DETERMINED?
According to Section 27(1) of the Punjab pre-emption Act, 1991;
“Where the parties do not agree to the price at which the pre-emptor shall exercise his night of pre-emption, the Court shall determine whether the price at which the sale purports to have taken place was fixed in good faith or paid and if it finds that the price was not so fixed or paid it shall fix the market value of the property as the price to be paid by the pre-emptor.”
HOW MARKET VALUE IS DETERMINED?
According to Section 28 for the purpose of determining the market value of a property, the Court may consider the following among other matters, as evidence of such value;
(a) The price of value actually received or to be received by the vendor from the vendee.
(b) The estimated amount of the average annual net profits for the property.
(c) The value of similar property in the neighborhood
(d) The value of similar property as shown by previous sales made in the past
1. Aust Punjsala
The market value of pre-empted land was fixed on the basis of aust punjsala which comprised only two sales and that too which took place beyond five years
2. Mutation of Sale
The mode for determination of vendees produced only one mutation of the sale is proof of market value. Pre-emptor produced the mutations in proof of same. No reliance, held could be placed on only one mutation To take into account all the mutations on record and then arrive at the average price, would be just and proper.
3. Sale Price Endorsed by Sub-Registrar
Market value of the land when to be gone into the question of market value of land, can only be gone into where the vendee fails to prove payment of sale price. Endorsement of sub-Registrar on sale-deed clearly proved payment of entire sale price.
4. Specific Sale Price is Entered in Registered Sale Deed
Specific sale price stood entered in the registered sale-deed embodying sale transaction vandee being a party to such a sale deed could not wriggle out of his own admission about the sale price on the plea of saving registration expenses.
CONCLUSION
It is concluded that Section 27 of the Punjab Pre-emption Act, 1991 empowered to Court to determine the market value of the property. The sound guidelines for the determination of the market value of the property describes in section 28 of the Punjab Pre-emption Act 1991.
FAQs
What do you understand by the term “market price”? What factors are taken into account while determining the market price of the property? Also, discuss the properties in respect of which the right of pre-emption cannot be exercised.
(2019-S)
Define the term Pre-emotion. Discuss in detail the procedure prescribed for the determination of the market value of the property for the purposes of suit for pre-emption. Also highlight the logic behind the determination of price by the court.
(2018-A)
What is the law as to the determination of the market value of the property sold? Also, highlight the provision governing the issue of limitation for a suit to enforce the right or pre-emption.
(2015-S)
Define the term Pre-emption. Discuss in detail the procedure prescribed for the determination of the market value of the property for the purposes of suit for pre-emption.
(2014-A)
What do you understand by the term market price for the purposes of pre-emption? Discuss the procedure of determination of such a price.
(2013-A)
What are the grounds for determination of fair market the price of the land in dispute?
(2012-S)
Write a note on the determination of market value.
(2017-A, 2016-S)
