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Lahore High Court, Lahore uphold the Original Property Transfer Order (PTO) and Permanent Transfer Deed (PTD) issued in 1963 whereas Subsequent Allotment in 1976 was declared Illegal and Fraudulent

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Lahore High Court, Lahore uphold the Original Property Transfer Order (PTO) and Permanent Transfer Deed (PTD) issued in 1963 whereas Subsequent Allotment in 1976 was declared Illegal and Fraudulent

Islamabad, 19-11-2024: In a significant ruling, the Lahore High Court dismissed a Regular Second Appeal [R.S.A No. 69/2006], reaffirming the ownership rights of Mst. Aziza Khatoon over Plot No. 90-F, Model Town, Lahore, and declaring subsequent allotments of the property illegal and void.

Mr. Justice Ch. Muhammad Iqbal delivered the judgment, which upheld the decree passed by the District Judge, Lahore, in favor of the respondents/plaintiffs. The Court rejected claims by the appellants, led by Ch. Muhammad Abdul Saleem, who contended that the plot had been reallocated to their predecessor, Mst. Razia Umar, in 1976.

The dispute revolved around a plot purchased by Mst. Aziza Khatoon in 1960 through an open auction held by the Settlement Department. She received a Property Transfer Order (PTO) and Permanent Transfer Deed (PTD), making her the lawful owner. The appellants alleged that the original documents were forged and claimed ownership based on a subsequent allotment order issued in 1976.

The trial Court initially dismissed the respondents’ suit in 1996, but the District Judge reversed this decision, granting possession of the plot to the respondents/plaintiffs. The appellants then filed the second appeal in the Lahore High Court.

The PTO and PTD issued to Mst. Aziza Khatoon were deemed valid as neither the Settlement Department nor the appellants challenged their authenticity at any forum. The Court emphasized that such documents can only be rebutted by stronger evidence, which the appellants failed to provide.

The Court ruled that once the Settlement Department issued the PTO and PTD in 1963, it became functus officio, losing authority to reallocate the plot. Any subsequent allotment was therefore null and void.

The 1976 allotment order in favor of the appellants’ predecessor was declared fraudulent and collusive. The Court noted that fraudulent actions vitiate even the most solemn proceedings, rendering the second allotment illegal.

The Court highlighted that under Settlement Scheme VIII, only properties available in the settlement pool could be reallocated. Since the plot had already been transferred to Mst. Aziza Khatoon, it was no longer available for allotment.

Serious concerns were raised regarding the conduct of Deputy Settlement Commissioner Muhammad Fayyaz Qureshi, who issued the 1976 allotment order. The Court noted that criminal cases had been filed against the officer, further questioning the legitimacy of his actions.

The Lahore High Court dismissed the appeal, affirming the District Judge’s decree and restoring the respondents’ ownership of the plot. The Court emphasized that the original documents issued to Mst. Aziza Khatoon in 1963 remain intact, and any subsequent transactions based on fraudulent claims were invalid.

This judgment reinforces the principle that fraudulent actions cannot override legitimate legal rights, providing clarity on the finality of property ownership documents issued under settlement laws.