Citation Name: 2021 CLC 1738 QUETTA-HIGH-COURT-BALOCHISTAN
Citation Name: 2021 CLC 1738 QUETTA-HIGH-COURT-BALOCHISTAN
Citation Name: 2021 CLC 1738 QUETTA-HIGH-COURT-BALOCHISTAN
2021 C L C 2051
Citation Name: 2021 CLC 2051 KARACHI-HIGH-COURT-SINDH
[Sindh]
Before Nazar Akbar, J
MUHAMMAD NAZIR AWAN----Plaintiff
Versus
IMTIAZ FATIMA RIZVI and another----Defendants
Suit No.1279 of 2017, decided on 12th July, 2021.
(a) Qanun-e-Shahadat Order (10 of 1984)---
----Art.17 & 117---Constitution of Pakistan, Arts. 24 & 172---Danger of mis-appropriation of
suit property---Power/duty of Court to take possession and declare as ownerless---Suit for
specific performance---Plaintiff allegedly paid Rs.27,900,000/- to defendants through
cheques for purchasing suit property---Balance amount of Rs.31,00,000/- was agreed to be
paid at the time of transfer of the property in the name of plaintiff---Plaintiff averred that he
cleared the utility bills/charges, and also paid a sum of Rs.11,00,000/- for obtaining
completion plan of the suit property to relevant authority on request of defendants; yet the
defendants not willing to transfer property despite many requests made by contacting them
through different methods---Plaintiff sent legal notice and thereafter filed suit for
declaration/specific performance---Notices sent but on non-appearance of defendants no
effort was made to serve them through publication---Court ordered for ex parte proceeding---
Plaintiff deposited balance sale consideration amount with the Nazir---Ad-interim order
earlier granted was confirmed---Held, that irrespective of absence of defendants, the plaintiff
had to prove existence of facts to get the judgment---Token money was through undated
cheque and name of the drawee bank was not disclosed---None of the two witnesses of
receipt had been produced to testify---Other cheque was in the name of none of the
defendants---Cheque was not proof of payment of sale consideration nor was there any
receipt of even handing over of such cheque to any of the defendants---Such cheque had not
been shown to have been encashed by the recipient---Plaintiff also failed to prove execution
of sale agreement under Art. 79 of Qanun-e-Shahadat, 1984---None of the witnesses of the
sale agreement was produced and a copy of another receipt annexed thereto showing
payment of amount was not attested by any one though relating to financial transaction---
Cheque number, name of recipient and bank was not mentioned in the agreement/receipt
despite the alleged fact that sale agreement was preceded by the payment---Signatures of one
of defendant on first ever receipt of token payment were entirely different from his purported
signatures on sale agreement and were even distinguishable by naked eye-Photocopy of
dubious general power of attorney not bearing specimen signature of attorney, not properly
stamped, and not authorizing the said defendant to execute sale agreement; hence further
damaged the case of the plaintiff regarding the possession of the suit property---Plaintiff's
possession on suit property was also illegal as per even the inadmissible said power of
attorney as the plaintiff admitted that he had not paid entire sale consideration to claim
possession---Alleged payment for obtaining completion plan also not proved---Copy of
alleged legal notice had not been produced---Plaintiff's deliberate failure for 5 years to verify
the particulars of seller and his/her title as prudent man before/after payment of token money
to defendant leaded that no such transaction had even taken place---Plaintiff was not entitled
to discretionary relief of specific performance---High Court directed the Nazir of the Court to
visit the suit property within 24 hours, take photographs from inside to preserve the status of
property, thereafter takeover possession of the suit property from the plaintiff within 15 days
and ensure that all the dues of bills/charges were cleared by the occupant---Area police
should also be informed in advance to handle situation in any resistance---Nazir was
authorized to remove locks and prepare an inventory of all the items lying therein and place
his locks and seal on each door of the suit property---Nazir was further directed to approach
NADRA authorities in locating the actual owner through her Overseas Pakistani NIC no. as
mentioned in evidence file, and place a board in front of property stating that property was in
possession of High Court and whoever knowing whereabouts of the owner should approach
the Nazir thereof---After six month the suit property should be deemed to have been
escheated to the State in terms of Art.172 of the Constitution---Suit was dismissed
accordingly with cost of Rs.100,000.
(b) Constitution of Pakistan---
----Art. 23, 24 & 172---Danger of mis-appropriation of un-attending party---Plaintiff's
alleged sale agreement had not been proved who attempted to misuse the process of Court for
giving legal cover to his unlawful possession of the suit property---No one had come forward
to claim the suit property, which confirmed that the whereabouts of actual female owner of
the suit property were not traceable and suit property was in danger of mis-appropriation---
As to ensure that unscrupulous person/plaintiff should not be allowed to remain in possession
of the suit property taking advantage of either his own knowledge that the defendant/owner
had expired or otherwise her whereabouts could not be traced in Pakistan, Court had duty to
invoke the provisions of clauses (b) & (d) of sub-Article 24(3) of the Constitution to remove
the illegal occupant and handover it to the State to protect the immoveable property.
(c) Constitution of Pakistan---
----Art.172---Succession Act (XXXIX of 1925), Ss.269 & 300---Power/duty of court to
declare the suit property as 'ownerless'---If Court was satisfied that none is known to the
Court for having any right/entitlement in the suit property and/or that there was 'risk of loss
or damage' to the suit property, the Court would first require to find out the actual owner/its
legal heirs before holding that the suit property was escheatable and liable to be declared as
an ownerless property.
Arshad Iqbal Rana for Plaintiff.
Imtiaz Fatima Rizvi for Defendant No.1.
Syed Muhammad Mehdi Rizvi (Nemo) for Defendant No.2.
Date of hearing: 20th April, 2021.
JUDGMENT
NAZAR AKBAR, J.----The plaintiff on 16.05.2017 has filed this suit against the
defendants for Declaration, Specific Performance of Agreement of sale and Permanent
Injunction.
2. Brief facts of the case are that the plaintiff on 30.09.2015 handed over a cheque of 10%
amounting to Rs.31,00,000/- as token payment to defendant No.2 in respect of purchase of
double storey house No.5/1, "D" Street, Phase-V, DHA, Karachi measuring 569.50 sq. yards
(the suit property) on as is where is basis. On 18.11.2015 after receipt of another amount of
Rs.2,48,00,000/-, the defendants entered into an agreement to sell with the plaintiff in respect
of the suit property for a total sale consideration of Rs.3,10,00,000/- and defendants
accordingly acknowledged in the said agreement that upto the singing of the sale agreement,
they have received Rs.2,79,00,000/- 90% of the total sale consideration and also made a
separate receipt thereof. The balance amount of Rs.31,00,000/- was agreed to be paid to
defendants at the time of transfer of the suit property in the name of plaintiff. It is averred
that the plaintiff on verbal requests of defendants, also paid and cleared the utility bills and
charges, which amount was otherwise liability of the defendants prior to handing over
possession of the suit property. It was further averred that thereafter on request of
defendants, the plaintiff also paid a sum of Rs.11,00,000/- for obtaining completion plan of
the suit property from the office of Clifton Cantonment Board. In January, 2017 the office of
Clifton Cantonment Board approved and handed over the original completion plan of the suit
property to the plaintiff and the only formality left for transfer of the suit property was to
execute sale deed in favour of the plaintiff as per agreement to sell dated 18.11.2015. It is
also averred that the plaintiff made several phone calls, messages, Whatsapp etc asking them
to come and transfer the suit property, as he is ready to pay the balance sale consideration but
the defendants have not paid any heed rather they have indicated that their family is not
willing to transfer property in the name of the plaintiff. Therefore, the plaintiff first sent legal
notice to the defendants through his counsel and subsequently filed the instant suit for
Declaration, Specific Performance of Agreement and Permanent Injunction.
3. Notices of the instant suit were sent to the defendants through courier service and the
same were declared served upon them, however, on their none-appearance no efforts were
made to serve them through publication. However, by order dated 17.09.2018 the matter was
ordered to be proceeded ex parte against them. Then on 16.01.2019 the plaintiff was directed
to deposit balance sale consideration amount of Rs.31,00,000/- and the plaintiff had
deposited the said amount with the Nazir, therefore, the ad-interim order earlier granted was
confirmed. Evidence of plaintiff has been recorded and he produced original sale agreement
as Ex:P/2; original receipt of token payment of Rs.31,00,000/- as Ex:P/3; photocopy of
general power of attorney executed by defendant No.1 in favour of defendant No.2 as
Article-1; photocopy of cross cheque dated 18.11.2015 for Rs.2,48,00,000/- as Article-2;
photocopy of payment receipt dated 13.01.2016 issued by DHA as Article-3; photocopy of
certificate for regularization completion plan of building violations issued by Clifton
Cantonment Board, DHA, Karachi dated 13.01.2017 as Article-4; photocopy of cross-cheque
of balance sale consideration in favour of Nazir of this Court and statement filed by the
plaintiff as Ex:P/4 and P/4-A. Since the defendants were not appearing before the Court,
therefore, cross-examination was marked as NIL.
4. I have heard learned counsel for the plaintiff and perused the record.
5. Learned counsel for the plaintiff has contended that the evidence of the plaintiff has
gone un-rebutted and, therefore, the suit may be decreed. However, to few queries from the
Court regarding admissibility of the document produced in evidence and the proof of
payment of sales consideration, such as that how a simple cheque issued by the plaintiff in
favour of someone else can be considered as payment through the said cheque towards sale
consideration to the owner of the suit property unless proved to have been encashed and/ or
otherwise the said amount is transferred to the account of the owner/seller of immoveable
property. He conceded that the plaintiff has not produced evidence from his bank to show
that the proceeds of cheques issued by him were transferred into the account of the owner of
the suit property. It is settled principle of law that irrespective of absence of the other side
according to Article 117 of the Qanun-e-Shahadat Order, 1984, the plaintiff has to prove
existence of facts to get the judgment as to his legal rights. Every transaction of money has to
be established through a proper receipt showing due acknowledgement in presence of
witnesses as required under Article 17 of the Qanun-e-Shahadat Order, 1984. Ex:P/3 is first
ever receipt said to have been issued by defendant No.2 on 30.09.2015 towards 10% payment
of token money for purchase of the suit property. In the first place on 30.09.2015 defendant
No.2 was not even authorized to receive the token payment and the perusal of the receipt
shows that it was through cheque No.48221270, dated NIL and even the name of the drawee
bank is not disclosed on it. None of the two witnesses of Ex:P/3 have been produced in Court
to testify that the said undated cheque of an unidentified bank was handed over by the
plaintiff to defendant No.2 as token payment. A photocopy of another cheque of
Rs.2,48,00,000/- dated 18.11.2015 produced in evidence as "Article-2" also allegedly
towards payment of sale consideration is totally out of any relevance to the so-called
transaction of sale of suit property. It is neither in the name of defendant No.1 nor in the
name of defendant No.2. This cheque, too, is not proof of payment of sale consideration nor
there is any receipt of even handing over of this cheque to any of the defendants. This
cheque, too, has not been shown to have been encashed by the recipient. In any case the
payment of Rs.2,48,00,000/- by no means can be considered as proof of payment towards
sales consideration in favour of defendant No.1.
6. The plaintiff has also failed to establish the very existence of agreement of sale
(Ex:P/2). Like his failure to produce any witness of payment receipts or otherwise any cogent
evidence to show the transaction of money as sale consideration to the owner of the suit
property, the plaintiff has also failed to prove execution of sale agreement as required under
Article 79 of the Qanun-e-Shahadat Order, 1984, which is reproduced below:-
79. Proof of execution of document required by law to be attested. If a document is
required by law to be attested, it shall not be used as evidence until two attesting
witnesses at least have been called for the purpose of proving its execution, if there be
two attesting witnesses alive and subject to the process of the Court and capable of
giving evidence.
None of the witnesses of the agreement of sale have been produced and a copy of another
receipt annexed to it showing a payment of Rs.2,79,00,000/-, too, is not even attested by any
one though it also relates to financial transaction. Independent to the agreement, this receipt
was also required to be attested by two witnesses in terms of Article 17 of the Qanun-e-
Shahadat Order, 1984, which is reproduced below:-
17. Competence and number of witnesses. (1) the competence of a person to testify, and
the number of witnesses required in any case shall be determined in accordance with
the injunctions of Islam as laid down in the Holy Quran and Sunnah.
2. Unless otherwise provided in any law relating to the enforcement of Hudood or any
other special law,
(a) In matter pertaining to financial or future obligations, if reduced to writing, the
instrument shall be attested by two men, or one man and two women, so that one may
remind the other, if necessary, and evidence shall be led accordingly;
(b) In all other matter, the Court may accept, or act on, the testimony of one man or one
woman or such other evidence as the circumstances of the case may warrant.
Besides the above, both the clause-1 of the agreement and the receipt attached to it carries
blank which needed to be filled by showing mode of payment to the Vendor, defendant No.1.
To be exact it is reproduced below:-
NOW THEREFORE THIS AGREEMENT WITNESSETH AS UNDER:-
"1. That the Vendor has this day received from the Vendee a sum of Rs.2,48,00,000/-
(Rupees Two Crore Forty Eight Lacs only) Vide
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_________________________________________________ and has already received
Rs.31,00,000/- (Rupees Thirty One Lacs only) as advance money making a total sum
of Rs.2,79,00,000/- (Rupees Two Crore Seventy Nine Lacs only) being the 90%
advance payment towards sale consideration of the 'Said Property' receipt of which
the Vender hereby fully admit and acknowledge separately."
As stated above no separate receipt of payment of Rs.2,48,00,000/-was issued and in the
agreement even cheque number is not mentioned. If the sale agreement was after the payment
of Rs.2,48,00,000/- through cheque, as averred in para-2 of the plaint, then why cheque
number, name of recipient and bank was not filled in even by handwriting in the agreement
and the so-called receipt. The photocopy of the cheque produced and marked as "Article-2"
shows that it is not in the name of the vendor. I am also surprised to note that signatures of
defendant No.2 on Ex:P/3 the first ever receipt of token payment allegedly executed by him
are entirely different from his purported signatures available on agreement of sale (Ex:P/2).
The naked eye definitely distinguishes the signatures of defendant No.1 of these two
documents.
7. The plaintiff has also averred that a general power of attorney was executed by
defendant No.1 in favour of defendant No.2 and a photocopy of the same has been produced
and marked as "Article-1". The perusal of this simple photocopy shows that it does not bear
specimen signature of the attorney. It is neither properly stamped nor it authorizes defendant
No.2 to execute even a formal sale agreement on behalf of defendant No.1. The photocopy of
dubious general power of attorney further damages the case of the plaintiff as regards the
possession of the suit property. It clearly stipulates that "the possession of the house will be
given to the purchaser once complete payment is paid to my son". It means the possession of
the plaintiff is also illegal as from the own showing of the plaintiff he has not paid entire sale
consideration to claim possession as per even the inadmissible power of attorney. Likewise,
the plaintiff has claimed to have paid a sum of Rs.11,00,000/- to DHA on oral instruction of
defendant for obtaining completion plan of the suit property from the office of Clifton
Cantonment. A photocopy of this document has been produced and marked as "Article-3" but
its original has not been produced on the pretext that it was allegedly handed over by the
plaintiff to defendant No.2 in January, 2017 (Para-4 of the plaint). The requirement of DHA
is that the payment should be through cross cheque or bank draft. If this amount has been
paid by the plaintiff from his own funds, then at least a copy of cross pay-order or bank draft
in favour of DHA should have been produced in evidence. This photocopy is not proof of
any payment made by the plaintiff and even if so, it does not improve the case of the plaintiff
for specific performance of the contract. It is pertinent to note that the suit has been filed in
May, 2017 after sending a formal legal notice to the defendants as stated in the plaint but no
such legal notice has been produced in evidence.
8. Beside the above, it may be noted that the plaintiff himself seems to be fully aware of
weakness of his claim against defendant No.1. The plaintiff is probably in some undisclosed
dispute with defendant No.2 and to settle his score with him, the plaintiff after taking illegal
possession of the suit property knowing that the owner of the suit property (defendant No.1)
is out of Pakistan, has threatened ONLY defendant No.2 to initiate criminal proceedings
against him in para-9 of the plaint in the following terms:-
"9. Hence the Plaintiff while reserving his right to initiate Criminal proceeding against
defendant No.2 if and when required, files this suit for Declaration, Specific
Performance of the agreement 18th November, 2015 and Permanent Injunction. To
hold the defendants liable, either to compensate the plaintiff for payment of double
the amount of total agreed sale consideration and or otherwise to compel them to
immediately transfer said property in the name of the plaintiff with other prayers of
Injunction etc. therefore the Plaintiff through his Counsel have already served a Legal
Notice to defendants."
In addition to the above, since the plaintiff knew that he has not entered into any agreement
of sale with the owner of the suit property, he has not taken any step to find out the status of
suit property whether it is free from any charge/encumbrance or any other liability to protect
his possible rights under the agreement of sale for smooth and peaceful transfer of title of the
suit property to him. (i) He did not demand/obtain copy of the title documents from any of
the defendants; (ii) He has never approached the Registrar of Properties on the basis of
agreement of sale to obtain search certificate of the suit property to ascertain who is owner of
the suit property; (iii) He has not issued a public notice in newspapers inviting any objections
to sale of the suit property through the so-called sale agreement with the defendants.
9. The plaintiff's deliberate failure from November, 2015 till date to verify the particulars
of seller and his/her title as prudent man before or immediately after payment of token
money to defendant No.2 points towards the fact that no such transaction has even taken
place, therefore, he is not entitled to discretionary relief of specific performance of a contract
of sale of immoveable property owned by a woman. However, in the peculiar facts and
circumstances of this case, dismissal of suit simplicitor would not serve the ends of justice.
The record clearly suggests that the plaintiff has unlawfully and illegal occupied the suit
property. His so-called sale agreement has not been proved and his alleged possession was by
all means unfair and/or in a manner contrary to law. He through the instant proceedings has
attempted to misuse the process of Court to give some legal cover to his otherwise unlawful
possession of the suit property. This suit was filed in 2017 and irrespective of the way in
which service of summons has been declared as served on a woman, during the last 04 years
no-one has come forward to claim the suit property even as a legal heir of the owner. This
fact confirms that the whereabouts of actual owner of the suit property, who is a woman, are
not traceable and these proceedings clearly suggesting that the plaintiff has illegally and
unlawfully entered in the suit property, therefore, it is in danger of mis-appropriation only
because its owner is not available in Pakistan to diligently take care of it. In these
circumstances, it is duty of the Court to ensure that unscrupulous person like the plaintiff on
dismissal of his suit should not be allowed to remain in possession of the suit property which
he has acquired by unfair means and/or in a manner contrary to law taking advantage of
either his own knowledge that the defendant/owner has expired or otherwise his/her
whereabouts cannot be traced in Pakistan.
10. The Court cannot be oblivion of the present state of affairs in our country which at
times compels owners of immoveable properties to temporarily settle outside Pakistan
without making proper arrangement for protection of their properties back in Pakistan and
they either fell terminally ill while in a kind of self-exile and later on died and their legal
heirs keeping in view the law and order situation and corruption do not dare to come forward
to lay their hand to such properties. I am of the considered opinion that in a situation like
this, it is the duty of the Court to invoke the provisions of Article 24 of the Constitution of
Islamic Republic of Pakistan, 1973 to remove the illegal occupant and handover it to the state
to protect the immoveable property. It is indeed the duty of the State to protect all such
properties of its citizens in terms of Article 24 of the Constitution of Islamic Republic of
Pakistan, 1973 and takeover possession of such property under Article 24 clause 3(b) and (d)
of the Constitution of 1973 for a limited period to protect it for the benefit of its
owner. Article 24(3)(b) and (d) are reproduced herein below:--
24. Protection of property rights. (1) . . . .
(2) . . . . . . . . . . . . . . .
(3) Nothing in this Article shall affect the validity of __
(a) . . . . . . . . . . . . . . .
(b) any law permitting the taking over of any property which has been acquired by, or
come into the possession of, any person by any unfair means, or in any manner,
contrary to law; or
(c) . . . . . . . . . . . . . . .
(d) any law providing for the taking over of the management of any property by the State
for a limited period, either in the public interest or in order to secure the proper
management of the property, or for the benefit of its owner, or
However, the order of taking over of property by state can be passed by the Court only when
the Court is satisfied that none is known to the Court for having any right or entitlement in
the said property. In a situation like the one in hand the court is first required to find out the
actual owner and/or his/her legal heirs before holding that the suit property is escheatable
and liable to be declared as an ownerless property in terms of Article 172 of the Constitution
of Islamic Republic of Pakistan, 1973. It is reproduced below:-
172. Ownerless property. (1) Any property which has no rightful owner shall, if located in
a Province, vest in the Government of that Province, and in every other case, in the
Federal Government.
In addition to Article 24 of the Constitution, Succession Act, 1925 also deals with the
proposition that when and how the Court can interfere "for protection of property" even prior
to grant of any probate or letter of administration. Section 269 read with Section 300 of the
Succession Act, 1925 are the other enabling provisions of law to protect the suit property
pending the rightful owner or claimants of the property comes forward to the Court. These
two enabling sections are reproduced below:-
269. When and how District Judge to interfere for protection of property.---(1) Until
probate is granted of jurisdiction any part of the property of the deceased person is
situate, is authorized and required to interfere for the protection of such property at
the instance of any person claiming to be interested therein, and in all other cases
where the Judge considers that the property incurs any risk of loss or damage; and for
that purpose, if he thinks fit, to appoint an officer to take and keep possession of the
property. (Emphasis provided)
300. Concurrent jurisdiction of High Court.---(1) The High Court shall have concurrent
jurisdiction with the District Judge in the exercise of all the powers hereby conferred
upon the District Judge.
11. In the case in hand though it is indeed not a case requiring interference for protection
of the property of a deceased person since we do not know whether the owner is alive or not,
but one thing is clear that there is "risk of loss or damage" to the suit property and the phrase
"and in all other cases" enlarges the scope of the authority of Court to cover cases of every
property at the risk of incurring loss or damage. Therefore, keeping in view of the facts of the
case in hand that the plaintiff has unlawfully occupied suit property of a citizen whose
whereabouts are not immediately traceable and the property is at risk of loss or damage by
the plaintiffs, therefore, to protect the suit property from further damage as an immediate
measure it has to be taken over by the court prior to handing it over to the State under Article
172 of the Constitution of Islamic Republic of Pakistan, 1973. Therefore, the Nazir of this
Court is directed to visit the suit property within 24 hours and take photographs from inside
the suit premises to preserve' the status of the fitting and fixtures of the suit property. The
Nazir should takeover possession of the suit property from the plaintiff within 15 days and
ensure that all the dues of electricity and sui-gas bills/charges are cleared by the occupant. In
case of any resistance or if the suit property is found locked the Nazir is authorized to
remove locks and prepare an inventory of all the items lying therein and place his locks and
seal on each door of the suit property. The area police should also be informed in advance so
that if police aid is needed, it should be available readily and no fresh order to break open the
locks or police force to evict the plaintiff from the suit property is required.
12. However, Nazir is not supposed to retain the possession of the suit property of a
missing owner for an indefinite period. Therefore, Nazir is further directed to approach
NADRA authorities in locating the actual owner namely Mrs. Imtiaz Fatima Rizvi wife of
Wazir Alam Rizvi whose Overseas Pakistani NIC No.915090-115489-9 is mentioned in
evidence file (Ex:P/2) and also try to locate her legal heirs through the B-form of NADRA, if
any, was issued to the said Mrs. Imtiaz Fatima Rizvi.
13. Nazir should complete the exercise within six months and he should also put up a
board in front of the property stating that property is in possession of the High Court and if
anybody knows whereabouts of the owner or claimant may approach the Nazir of this Court.
In case nobody turns up to claim title to the suit property within six months the suit property
shall be deemed to have been escheated to the State in terms of Article 172 of the
Constitution of Pakistan, 1973 and Nazir should handover possession of the suit property to
the Deputy Commissioner (East) Karachi in whose jurisdiction the property is situated under
a proper documentation.
14. In view of the above facts and the law, the suit is dismissed with cost of Rs.100,000/-
to be borne by the plaintiff who is in illegal possession of the suit property. The Nazir while
taking over possession of the suit property will refund the amount deposited by the plaintiff
on 29.01.2019 together with returns that may have accrued on the said amount after
deducting Rs.100,000/- towards recovery of cost. Once the cost is recovered, Rs.25000 shall
be appropriated toward Nazir's fee for the exercise of recovery of possession of suit property
and out of remaining cost Rs.25000/- each may be given to the High Court Clinic, High
Court Employees' Benevolent Funds and Library of Sindh High Court Bar Association.
15. The Nazir is directed to submit compliance report on completion of 15 days from
today for perusal in Chamber by the Court.
ZH/M-91/Sindh Suit dismissed.
2019 S C M R 599
[Supreme Court of Pakistan]
Present: Qazi Faez Isa, Sajjad Ali Shah and Syed Mansoor Ali Shah, JJ
Mst. Bibi SHAH BAN (DECEASED) through L.Rs. and others---Appellants
Versus
LAND ACQUISITION COLLECTOR, A.C., MARDAN and others---Respondents
Citation Name: 2019 SCMR 599 SUPREME-COURT
Civil Appeals Nos. 79-P and 143-P to 146-P of 2013, decided on 4th March, 2019.
(Against the judgment dated 01.04.2013 of the Peshawar High Court, Peshawar passed in
R.F.As. Nos. 104-P, 114-P, 116-P and 117-P of 2004)
(a) Land Acquisition Act (I of 1894)---
----Ss. 6, 23 & 48-A---Constitution of Pakistan, Art. 24---Land acquired for expansion of a
Government college---Delay of more than ten years between declaration and making of award---
Collector made his award and fixed the amount of compensation payable to the owners of the
land at the rate of Rs. 1079.37 per marla and fixed an amount of Rs. 21,994 as compensation for
the structures standing on the land---Fifteen per cent compulsory acquisition charges and eight
per cent simple interest was also awarded from date of notification by the Commissioner for
taking over the land---Collector noted that those from whom the land was acquired were left
without access to their remaining lands and therefore carved out six approach roads/pathways to
access their lands, but excluded the land falling under these approach roads/pathways for
payment of compensation---Reference filed before the Judge Land Acquisition against the award
was partly accepted and the Judge increased the price of the acquired land to Rs. 4,500 per marla,
reduced the interest per annum to six per cent and maintained the fifteen per cent compulsory
acquisition charges---High Court maintained the compensation that had been determined by the
Judge Land Acquisition, however, it awarded the cost of litigation to the land owners---Held,
that there had been an unjustifiable delay in making the Award---Declaration under S. 6 of the
Land Acquisition Act, 1894 ('the Act') was made on 14th January, 1986 and the Award was
made ten and a half years later on 4th August, 1996---Said Act envisaged an award to be made
within a year---Article 24(2) of the Constitution mandated the payment of compensation for land
compulsorily acquired---Depriving a person of property was an exception to the Fundamental
Right to hold and enjoy property---Owner must be promptly compensated for the compulsorily
acquired property---Designated authority (the Collector) had to determine the compensation
payable to the land owners (appellants) within a year but failed to do so and instead took ten and
a half years to make the Award---Judge Land Acquisition had noted that the acquired land was
situated on the main road and also had commercial value as it was situated in the vicinity of a
hospital, a college and the Office of the Forest Officer---Judge had also referred to documents,
including the fard jamabandi for the year 1994-95 produced by Patwari Halqa and the mutations
of lands in the area showing the price of land to be ten thousand rupees per marla at the relevant
time, and a judgment wherein the compensation in respect of land acquired in the same area a
few years previously was fixed at Rs. 6,000 (six thousand rupees) per marla---Despite noting
such facts, which had remained un-rebutted, the Judge increased the compensation to only Rs.
4,500 per marla---High Court had also disregarded the evidence on record, though it had noted
the price had increased and had expressed sympathy with the land owners---Land owners were
also entitled to receive compensation for the land used in approach roads/pathways, since the
value of such land had diminished because it could only be used as approach roads/pathways---
As regards the structures standing on the land the owners had valued the same at Rs. 2,000,000
(two million rupees), however, in the Award these were valued at Rs. 21,994 only---Since the
owners of the acquired area had not established that they had suffered damages on account of the
delay in making the Award beyond the period of one year, therefore, they were not entitled to
receive additional compensation under S. 48-A of the Act---Supreme Court directed that
compensation for the acquired land was to be paid at the rate of Rs. 10,000 per marla; that
compensation for the reduction in the value of land utilized for the approach roads/pathways,
was to be paid at the rate of Rs. 5,000 per marla; that compensation for the value of the
construction on the land was to be Rs. 200,000; and the cost of litigation was to be awarded to
the land owners---Appeal was disposed of accordingly.
(b) Land Acquisition Act (I of 1894)---
----S. 6---Land acquired for expansion of a Government college---College re-named after the
then serving Provincial Governor---Supreme Court raised the question whether the College
which was built on Government land and constructed out of public funds and for which land
compulsorily acquired had been paid out of public funds could be named after a living person
and one who held public office in the country---Supreme Court observed that since decision in
respect of the matter of naming the College may affect the naming of public buildings, public
parks, public roads and other public places not only in the province in question but also in other
parts of the country therefore notices were to be issued to the Advocate Generals of all the
provinces, the Federal Capital Territory and the Attorney General, all of whom were to file their
respective written submissions within six weeks---Supreme Court directed office to fix the
question raised for consideration of the Supreme Court as per the orders of the Chief Justice---
Appeal was disposed of in circumstances.
Abdul Sattar Khan, Advocate Supreme Court and M. Zahoor Qureshi, Advocate-on-Record for
Appellants (in C.A. No. 79-P of 2013).
Ex parte for Respondents Nos. 1 - 5 (in C.A. No. 79-P of 2013).
Mujahid Ali Khan, Additional Advocate-General, Khyber Pakhtunkhwa for Respondent No.6 (in
C.A. No. 79-P of 2013).
Abdul Latif Yousafzai, Advocate-General, Khyber Pakhtunkhwa on Court's Notice (in C.A. No.
79-P of 2013).
Amjad Ali, Advocate Supreme Court and M. Ajmal Khan, Advocate-on-Record along with Faqir
Jan, Admin Officer (in C.As. Nos.143-P to 146-P of 2013).
Ex parte for Respondents Nos. 1 - 7 (in C.As. Nos. 143-P to 146-P of 2013).
Nemo for Respondent No. 4 (in C.As. Nos. 143-P to 146-P of 2013).
Ex parte for Respondents Nos. 1 - 3, 5 - 10 (in C.As. Nos.143-P to 146-P of 2013).
Date of hearing: 13th December, 2018.
JUDGMENT
Qazi Faez Isa, J. The Government of N.W.F.P. (now Khyber Pakhtunkhwa) acting
through the Secretary Education issued notification dated 1st August, 1983 by which the
Government Comprehensive High School Mardan was renamed as the Public School Mardan
and transferred to it all lands, buildings, properties, assets and liabilities of the former. On 3rd
November, 1985 the Secretary Education issued another notification changing the name of the
school again and also upgrading it; the Public School Mardan was now named after the
incumbent Governor of the Province and made into a college, the "Fazle Haq College Mardan"
("the College").
2. The Government then decided to expand the College. On 24th October, 1985 the Collector,
Mardan, District Mardan ("the Collector") issued a notification under section 4 of the Land
Acquisition Act, 1894 ("the Act") identifying fifty five kanals and seventeen marlas of private
land lying adjacent to the College which could be used for the College and authorized a
preliminary investigation of the land. On 14th January, 1986 the Commissioner Peshawar
Division ("the Commissioner") issued a notification under section 17 of the Act taking over the
possession of the land and stating that the provisions of sections 5 and 54 of the Act will not be
applicable to the land. Nothing further happened for the next ten years. On 23rd January, 1996
the Commissioner issued a notification under section 6 of the Act declaring that the land was
required for a public purpose and directed the Collector to make an order for its acquisition under
section 7 of the Act.
3. On 4th August, 1996 the Collector made his award ("the Award") pursuant to section 11 of the
Act and fixed the amount of compensation payable to the owners of the land at the rate of
Rs.1079.37 paisas (one thousand and seventy nine rupees and thirty seven paisas) per marla and
fixed an amount of Rs. 21,994 (twenty one thousand, nine hundred and ninety four rupees) as
compensation for the structures standing on the land. Fifteen per cent compulsory acquisition
charges and eight per cent simple interest was also awarded from 14th January, 1986. The
Collector noted that those from whom the land was acquired were left without access to their
remaining lands and therefore carved out six approach roads/pathways to access their lands, but
excluded the land falling under these approach roads/pathways for payment of compensation.
Compensation was ordered to be paid only in respect of the fifty-two kanals and fifteen marlas of
land which had been acquired for the College ("the acquired land").
4. The owners (appellants in Civil Appeal No. 79-P/2013, "the private appellants") were
dissatisfied with the amount of the compensation fixed by the Collector and filed a reference
under section 18 of the Act against the Award. They alleged that the compensation fixed by the
Collector was well below the market price of Rs. 25,000 (twenty five thousand rupees) per marla
and the value of the construction on two kanals of the acquired land was Rs. 2,000,000 (two
million rupees). They however conceded that the law envisaged six per cent interest per annum
(instead of eight per cent interest as given in the Award). On 8th June, 2004 the reference was
partly accepted by the learned Judge Land Acquisition who increased the price of the acquired
land per marla to Rs. 4,500 (four thousand and five hundred rupees) per marla, reduced the
interest per annum to six per cent and maintained the fifteen per cent compulsory acquisition
charges; the compensation was payable from the date that the possession of the land was taken.
Thereafter, both sides filed regular first appeals ("RFAs") in the Peshawar High Court, Peshawar
against the judgment of the learned Judge Land Acquisition. In the RFAs the High Court
maintained the compensation that had been determined by the learned Judge Land Acquisition,
however, the learned Single Judge was pleased to award the cost of litigation to the private
appellants. Both sides then appealed to this Court. The private appellants seek enhancement of
compensation amount to Rs. 25,000 (twenty five thousand rupees) per marla and Rs.2,000,000
(two million rupees) for the said construction. The official appellants (who have filed Civil
Appeals Nos. 143-P to 146-P/2013) state that compensation as determined by the Collector in the
Award be reverted to.
5. The learned counsel for the private appellants (in Civil Appeal No. 79-P/2013) submitted as
under:
(i) Evidence was produced to show the sale and purchase transactions at the rate of Rs. 10,000
(ten thousand rupees) per marla during the relevant period;
(ii) The acquired land is situated on a main road and has the potential of considerable increase in
value;
(iii) The Award was made ten and a half years after the possession of the land was taken over
and during this period the price of the land had gone up considerably;
(iv) The owners remained deprived of the use of their land till the Award was made;
(v) For similar land compensation was determined at six thousand rupees per marla by the
Collector in the award dated 12th April, 1984 which was maintained by this Court on 17th
December, 1992;
(vi) The owners were entitled to additional compensation mentioned in section 48-A of the Act
(inserted by the N.W.F.P. Land Acquisition (Amendment) Act, V of 1987) but they were not
granted it; and
(vi) The land falling under the approach roads/pathways should not have been excluded from the
payment of compensation since it could only be used as approach roads/pathways.
The learned counsel relied upon the cases of Murad Khan v. Land Acquisition Collector (1999
SCMR 1647), Province of Punjab v. Jamil Ahmad Malik (2000 SCMR 870) and Province of
Punjab v. Begum Aziza (2014 SCMR 75).
6. Mr. Mujahid Ali Khan, the learned Additional Advocate General ("AAG"), and Mr. Amjad
Ali, the learned counsel for the College, opposed the appeal filed by the private appellants and
supported the appeals filed by the College. They stated that compensation was determined by the
Collector after he had personally visited the acquired land and the Award was made in
accordance with the prevailing market price and the law. Therefore, the learned Judge Land
Acquisition was not justified to increase the compensation amount. As regards the delay in
making the Award, they stated that the additional six per cent interest per annum payable to the
owners sufficiently compensates them, therefore, the delay in making the Award is
inconsequential.
7. We have heard the learned counsel for the parties and with their able assistance examined the
record. Section 23 of the Act stipulates the matters to be considered in determining
compensation. In the Province of Khyber Pukhtunkhwa section 48-A of the Act has been added
which states that the owner of land will also be entitled to damages suffered if the award is not
made within a year of the declaration under section 6 of the Act. Section 48-A is reproduced
hereunder:
"Compensation to be awarded when land not acquired within one year: (1) If within a period of
one year from the date of publication of declaration under Section 6 in respect of any land, the
Collector has not made an award under Section 11 in respect to such land, the owner of the land
shall, unless he has been to a material extent responsible for the delay, be entitled to receive
compensation for the damage suffered by him in consequence of the delay.
(2) The provisions of Part II of this Act shall apply, so far as may be possible, to the
determination of the compensation payable under this section."
8. There has been an unjustifiable delay in making the Award. The declaration (under section 6
of the Act) was made on 14th January, 1986 and the Award was made ten and a half years later
on 4th August, 1996. The Act envisages an award to be made within a year. Article 24 (1) of the
Constitution of the Islamic Republic of Pakistan ("the Constitution") stipulates that, "No person
shall be deprived of his property save in accordance with law." And, Article 24(2) of the
Constitution mandates the payment of compensation for land compulsorily acquired. Depriving a
person of property is an exception to the fundamental right to hold and enjoy property. The
owner must be promptly compensated for the compulsorily acquired property. The designated
authority (the Collector) had to determine the compensation payable to the private appellants
within a year but failed to do so and instead took ten and a half years to make the Award. The
learned High Court Judge had noted that the price of the land had increased on account of the
depreciation - devaluation of the rupee and further that the owners could not utilize their land
during the time it took to make the Award. However, he did not increase the compensation
amount despite also having observed that, "the affectees are required to be compensated to some
reasonable extent, deemed appropriate and justiciable in the circumstances of the case."
9. The learned Judge Land Acquisition, in deciding whether the owners were entitled to be
compensated as sought by the owners (Issue No. 5), had noted that the acquired land was situated
on the main road and also had commercial value as it was situated in the vicinity of Haroon
Surgical Hospital, the Government Commerce College, Mardan and the Office of the Forest
Officer, Mardan. He had also referred to evidence and the exhibited documents, including the
fard jamabandi for the year 1994-95 produced by Patwari Halqa and the mutations of lands in the
area showing the price of land to be ten thousand rupees per marla at the relevant time. He had
also referred to the judgment wherein the compensation in respect of land acquired in the same
area a few years previously was fixed at Rs. 6,000 (six thousand rupees) per marla. However,
despite noting these facts, which had remained un-rebutted, he increased the compensation to
only Rs. 4,500 per marla. The learned Judge of the High Court had also disregarded the evidence
on record, though he had noted the price had increased and had expressed his sympathy with the
private appellants.
10. To get a better understanding of the location of the acquired land and of the said approach
roads/pathways we had directed the College, "to file photographs of the land that was acquired
and the access to the remaining land of the persons from whom it was acquired." The
photographs filed by the College confirm that the land falling under the approach roads/pathways
cannot be used for any other purpose. When the use of such land is restricted in this manner then
the value of such land stands diminished, but no compensation has been awarded for such land.
11. This Court in the case of Murad Khan v Land Acquisition Collector (1999 SCMR 1647) with
regard to determining the compensation of land had considered the matters mentioned in section
23 of the Act and the scope of the expression market-value mentioned therein. Muhammad
Bashir Jehangiri, J writing for a three-member Bench of this Court reviewed the case law
comprehensively and derived the principles therefrom (paragraph 13, pages 1654-1657). This
seminal judgment has been continuously followed by this Court, including in the cited cases of
Province of Punjab v. Jamil Ahmad Malik (2000 SCMR 870) and Province of Punjab v Begum
Aziza (2014 SCMR 75). Applying section 23 of the Act and the principles expounded in the case
of Murad Khan the compensation payable to the private appellants needs to be revised.
12. The market-value of the acquired land at the relevant time as per the evidence on record was
Rs. 10,000 (ten thousand rupees) per marla. The owners of the acquired land therefore had to be
compensated at the rate of Rs. 10,000 (ten thousand rupees) per marla together with fifteen per
cent compulsory acquisition charges and six per cent interest per annum from the date of taking
possession of the acquired land, that is from 14th January, 1986.
The private appellants will also be entitled to receive compensation for the land used in approach
roads/pathways, measuring 2 kanals, 9 marlas and 7 sersais (as mentioned in the Award) since
the value of such land had diminished because it could only be used as approach roads/pathways.
However, evidence with regard to the reduction in the value of such land is not available. It has
been decades since the land was acquired and the approach roads/pathways were created,
therefore, it would not now be appropriate to remand the matter for the determination in the
reduction in the value of such land. This land also constitutes a very small portion of the acquired
land. Accordingly, we fix the compensation for the reduction in the value of the land used in the
approach roads/pathways at Rs. 5,000 (five thousand rupees), which is half the compensation
payable for the acquired land.
As regards the "abad houses on an area of 2 kanals of land" the owners had valued the same at
Rs. 2,000,000 (two million rupees), however, in the Award these are valued at Rs. 21,994
(twenty one thousand, nine hundred and ninety four rupees). The Award doesn't mention the
nature of such construction nor how its price was determined, instead the Collector relied on the
value as determined by the Patwari. Taking into account the value of the land, the area on which
the construction was raised and when it must have been raised (that is before the possession of
the land was taken over) we think that it would be valued at Rs. 200,000 (two hundred thousand
rupees) at the relevant time.
13. Since the owners of the acquired area had not established that they had suffered damages on
account of the delay in making the Award beyond the period of one year, therefore, they are not
entitled to receive additional compensation under section 48-A of the Act.
14. The compensation therefore payable by the College/Collector/ Government of Khyber
Pakhtunkhwa to the owners of the land (the private appellants herein) is as under:
(a) Compensation for the acquired land at the rate of Rs.10,000 (ten thousand rupees) per marla;
(b) The reduction in the value of 2 kanal, 9 marlas and 7 sersais of land utilized for the approach
roads/pathways, being at the rate of Rs. 5,000 (five thousand rupees) per marla;
(c) Compensation for the value of the construction to be Rs.200,000 (two hundred thousand
rupees); and
(d) The cost of litigation granted by the High Court.
15. For the reasons mentioned above Civil Appeal No. 79-P of 2013 is partly allowed in the
aforesaid terms and Civil Appeal Nos.143-P to 146-P of 2013 are dismissed. The order whereby
judgment in these appeals was reserved had concluded as under:
" After the announcement of the judgment in these appeals the office is directed to send the files
to the principal seat of this Court at Islamabad for determination of the question noted in the
following paragraph.
2. The learned counsel for the College informed us that previously the College was known as the
Government Comprehensive School and the land on which it stood was owned by the
Government, however, subsequently the said School was converted into the College and was
named after General Fazal Haq, the then Governor of the Province, when he was in office. The
question arises whether the College which was built on Government land and constructed out of
public funds and for which land compulsorily acquired had been paid out of public funds can be
named after a living person and one who held public office in Pakistan. The learned counsel for
the College is directed to submit concise statement in this regard and attach therein all
documents pertaining to the naming of the College. The learned Advocate General, Khyber
Pakhtunkhwa seeks time to take instructions and to formulate his views on the noted question.
Since our decision in respect of the matter of naming the College may affect the naming of
public buildings, public parks, public roads and other public places not only in the province of
the Khyber Pakhtunkhwa but also in other parts of Pakistan notices be issued to the Advocate
Generals of all the four provinces, the Islamabad Capital Territory and the Attorney General for
Pakistan, all of whom are directed to file their respective written submissions within six weeks,
whereafter the matter be fixed in Court for hearing."
16. After the announcement of this judgment the office is directed to fix the aforenoted question
for consideration of this Court as per the orders of the Hon'ble Chief Justice.
MWA/S-8/SC Order accordingly.