P&H: Sets Aside Pre‑Emption Decrees, Calls Co‑Sharer Decree “Calculated Device”.

punjab-haryana
⚖️ Order Date: 15 May 2026
Headnotes

Revenue entries — Decree never reflected in revenue record - Circumstance that decree was never reflected in revenue record reinforces the inference of collusion, as a genuine settlement would ordinarily be sanctioned and incorporated in Jamabandi. (Para 39)

Pre-emption — Person who acquires status of co‑sharer through a collusive arrangement cannot invoke equitable jurisdiction relating to pre-emption so as to unsettle a prior lawful transaction. (Para 47)

Punjab Pre-emption Act, Ss.19, 20, 21 - Pre-emption —  Co-sharer u/s 19 of the Act becomes entitled to exercise the right of pre-emption only where intended sale has taken place without notice to such co-sharer - Conversely, where notice of intended sale has been duly given,...

Pre-emption —  Right of pre‑emption is a very weak right, being only a right of substitution and can be defeated by all legitimate methods Collusive foundation cannot sustain its enforcement. (Para 55)

Collusive judgment — Effect upon third parties — When a third party seeks protection against effect of a collusive judgment, such party is entitled to contend that decree should be treated as void insofar as his rights are concerned, even though it may remain binding inter...

Punjab Pre-emption Act, Ss.19, 20, 21 —  Pre-emption — Collusive decree creating co-sharership after a prior agreement to sell — Decree suffered by a close relative of vendors in favour of his son and daughter-in-law was a calculated device engineered after the agreement to sell...

Contempt of Courts Act, 1971, S.12 — Contempt of Court - Scope of contempt jurisdiction vis‑à‑vis interim orders — Contempt jurisdiction is essentially discretionary and intended to uphold authority of Court rather than adjudicate disputed civil rights - Once the substantive pre‑emption claims fail, no enforceable...

 


Facts of the Case

P&H: Sets Aside Pre‑Emption Decrees, Calls Co‑Sharer Decree “Calculated Device”.

 

High Court has allowed two Regular Second Appeals filed by the vendees and dismissed two cross‑appeals and related contempt petitions in a long‑running land dispute over pre‑emption rights. Court concluded that a family decree creating co‑sharership in favour of the plaintiff was a collusive arrangement intended to defeat the vendees’ prior contractual rights.

The case arose from two sale deeds covering over 175 acres of agricultural land. Plaintiff filed separate suits to pre‑empt these sales, claiming a superior right as a co‑sharer. The defendants (vendees) countered that before the sales, both vendors had already signed an agreement to sell in their favour and that a subsequent decree suffered by the vendors’ close relative in favour of his son and daughter‑in‑law was engineered solely to fabricate co‑sharership and enable pre‑emption suits.

Framing the core issue as whether decree was bona fide or collusive, Court examined the family pedigree, revenue records and chronology. It found that...

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