(1.) On May 9, 1958 Khillu and two others sold a plot of land in village Majesar, Tehsil Ballabhgarh, District Gurgaon to Surinder Kumar and Virender Kumar (who will hereinafter be referred to as "the defendants") . On January 9, 1959 Ramjilal and Khazan hereinafter called the "plaintiffs" filed a suit in the Civil Court to pre-empt the sale. On November 16, 1961 the Government of Punjab issued in exercise of the power conferred by sub-section (2) of Section 8 of the Punjab Pre-emption Act, 1913 a notification declaring "that no rights of pre-emption shall exist with respect to urban or village immovable property or agricultural land when purchased by any person for setting up or extension of any industry in the State with the permission of the Director of Industries, Punjab."
(2.) The plaintiffs contended that the notification issued by the Government did not prejudicially affect their claim to pre-empt the sale. By order dated February 16, 1962 the Civil Court passed a decree for pre-emption conditionally on payment of the amount for which the property was sold. The Civil Court found that the defendants had failed to establish that they intended to establish a factory on the land in question.
(3.) The defendants appealed to the Court of the Senior Subordinate Judge against the decree of the Trial Court. Thereafter the Government of Punjab issued another notification on September 3, 1962 that the Governor of Punjab was pleased to order that "no right of pre-emption shall exist with respect to the sale of land, described in the Schedule to this Notification made on the 9th May. 1958, in favour of Messrs. Surinder Kumar and Virender Kumar, opposite Railway Station Faridabad, for the establishment of a factory for manufacture of cork products" In the Schedule was described the property sold to the defendants by Khillu and two others.