Nomination in a Cooperative Society does not override Inheritance Rights --- Supreme Court of Pakistan 

Islamabad 01-02-2025: The Supreme Court of Pakistan, in a significant ruling, has reaffirmed that nomination in a cooperative society does not confer inheritance rights and that Islamic law prevails over society by-laws in matters of succession. The judgment was passed in [Civil Petition No. 2095-L of 2016] (Matloob & Others Vs. Taj Din (Deceased) Through Legal Heirs & Others) by a bench comprising Mr. Justice Irfan Saadat Khan and Mr. Justice Shahid Bilal Hassan.  

The case revolved around a dispute concerning the ownership of agricultural land allotted in 1948 to deceased under the Co-operative Farming Scheme. The Petitioners (Matloob & Others) claimed ownership based on nomination in the society records, while the Respondents (legal heirs of deceased) argued that inheritance should be governed by Islamic law.  

The deceased had nominated his successor, but he and deceased, both individuals passed away in 1962. Subsequently, deceased, the petitioner, was nominated, leading to a dispute over whether a nominee could legally inherit the property instead of the rightful legal heirs.

Trial and Appellate Court Decisions:  

1. Dismissed the Respondents’ claim, citing a lack of evidence regarding disputed property transactions.  
2. Overturned the trial Court decision, ruling that nomination does not substitute inheritance under Islamic law and that the legal heirs were the rightful owners.  
3. Upheld the Appellate Court’s decision, confirming that the legal heirs were entitled to the land, not the nominee.

The Supreme Court of Pakistan, after hearing the case, dismissed the petition and upheld the Lahore High Court’s verdict, reinforcing the following legal principles:  

The Court ruled that nomination in a cooperative society is merely a procedural step for receiving financial benefits and does not confer ownership rights. Section 27 of the Co-operative Societies Act, 1925  

• Mst. Amtul Habib Vs. Mst. Musarrat Parveen (1974 SCMR 185)
• Fazal Shah Vs. Muhammad Din (1990 SCMR 868)
• Manzoor Ahmad Vs. Mst. Salman Bibi (1998 SCMR 388)
• Muhammad Bakhsh Vs. Mst. Ghulam Fatima (2007 SCMR 1227)

The Court emphasized that inheritance matters must be decided under the Muslim Personal Law (Shariat Application) Act, 1948, rather than cooperative society rules.  

• Manzoor Ahmad Vs. Mst. Salman Bibi (1998 SCMR 388)
• Muhammad Bakhsh Vs. Mst. Ghulam Fatima (2007 SCMR 1227)  

The Court observed that the petitioner’s nomination was fraudulently backdated to 1948, despite his birth in 1953, rendering his claim invalid. Fraudulent claims cannot be used to bypass inheritance laws.  

The Court reaffirmed that the case could not be reopened under Section 11 of the CPC, as it had already been litigated in multiple Courts. Section 11 of the Code of Civil Procedure, 1908  

The Court hinted that filing a baseless petition wastes judicial time and may attract penalties under Section 35-A CPC for frivolous litigation.  

The Supreme Court of Pakistan categorically ruled in favor of the legal heirs of Hameed Khan, declaring them the rightful owners of the disputed land. The petition was dismissed, and leave to appeal was refused, effectively putting an end to the long-standing dispute.

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