Amendment status not verified — confirm the current text below against the official source.
(1) The holding of an occupancy tenant together with his right, title and interest therein shall, subject to the provisions of this Act, be capable of being transferred in the same manner and to the same extent as any other immoveable property. (2) When a holding or part thereof is transferred by sale or otherwise, the transferee, unless he be the sole landlord of such holding, shall within one month of such transfer give notice thereof to the landlord in the prescribed form and in the prescribed manner, and shall pay or tender to the landlord within one month of such transfer a transfer fee equivalent to ten per cent, of the value of the land. If the transfer takes place through a Court sale or in execution of the decree of a Court, such sale shall not be confirmed nor the transfer be made final and effective in the execution case, as the case may be, until and unless the auction purchaser or other transferee has within the aforementioned period of one month issued through the Court upon the landlord the aforesaid notice of such transfer and also deposited in Court the entire amount of transfer fee payable to the landlord under the provisions of this section : Provided that nothing in this sub-section shall apply to a case of transfer by gift in favour of a presumptive heir of a tenant or to a case of devolution by inheritance or bequest by will in favour of any heir of a deceased tenant or by deed of endowment for charitable purposes. (3) In case of a transfer by gift or by testamentary favour of a person other than an heir, or of any other respect of which no consideration has passed or the religious or bequest in transfer in amount of consideration cannot be satisfactorily assessed, the transfer fee shall amount to ten per cent, of the value of the land transferred calculated as on the date when such transfer takes effect. (4) No transfer in respect of which transfer fee is payable under sub-section (2) or (3) but has not been paid or tendered to the land lord by the transferee in accordance with sub-section (2) or deposited in Court in accordance with sub-section (5) shall be binding on the landlord, who will be entitled to treat such transferee as a trespasser, and the land transferred to have been surrendered by the tenant who made the transfer, and the landlord shall be further entitled to sue such transferee for ejectment from such land and for obtaining khas possession of such land through the Court: Provided that a decree for khas possession so obtained shall not be subject to execution if the transferee deposits in Court the proper transfer fee with such compensation as the Court directs, and the costs of the suit, within 30 days of the date of the decree. Deposit of (5) When the landlord refuses to accept the transfer fee tendered in^Cour/66 t o f^ie t r a n s ^e r e e > ^ le latter shall, within a period of three months from the date of such refusal, make a deposit of the amount in the Court and serve a notice of such deposit upon the landlord through the Court. th'ehtStransf (6) O n payment of the transfer fee in accordance with feree. sub-section (2) or on deposit thereof in Court in accordance with sub-section (5) the transferee shall acquire all the rights of the transferor in the land transferred to him. Landlord’s right of pre emption. (7) In all cases of transfers by sale, except to presump tive heirs or co-sharers of the tenant, the landlord shall have the right of pre-emption on payment to the transferee an amount equal to the total consideration for the transfer or the market value of the property transferred, whichever be the less, and may apply to the Court for the determination of such market value: Proyided that if the Court shall find the market value as afore said to be less than the consideration for the transfer, the transferee shall be entitled to recover the difference from the transferor. Provided further that the landlord shall be precluded from exercising the right of pre-emption if he accepts the transfer fee or fails to exercise the right of pre-emption within two months of the service on him of the notice referred to in sub-section (2) or, if no such notice has been served upon him, within two months of the date of his knowledge of the sale. Provided further that an application for pre-emption under this sub-section shall be dismissed unless the applicant, at the time of making it, deposits in Court an amount equal to the total consideration for the transfer. (8) Every transfer made under this section shall be effected by a registered instrument, which shall show the value of the land and the value of the buildings thereon, if any, separately, unless such transfer takes place in course of proceedings in Court ; and all notices required to be served by this Act shall be served by registered post. Explanation. —For the purpose of this section, the word ‘transfer’ shall not include any lease or mortgage for a definite term of twelve years or less, but shall include all other leases and mortgages. The consideration for a lease shall be computed to be the sum of the amount of the premium or salami paid as consideration by the lessee for the grant of the lease in his favour and fifteen times the amount of the annual rent reserved. The consideration for a mortgage shall be taken to be the amount advanced to the tenant by the mortgagee in consideration of the mortgage in his favour. Enhance-