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The Property Rights, protected under Articles 23 and 24, cannot be restricted without Legal Justification and Due Process --- Lahore High Court, Lahore

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The Property Rights, protected under Articles 23 and 24, cannot be restricted without Legal Justification and Due Process --- Lahore High Court, Lahore

Islamabad 11-11-2024: In a significant ruling, the Lahore High Court has ordered the Defence Housing Authority (DHA) to remove its unilateral “caution” marked on plots belonging to Sibghat Elahi Chauhan, a property owner, and directed the issuance of No Demand Certificates (NDCs) for his remaining plots. The judgement underscores the protection of property rights under Pakistan’s Constitution and limits the authority of regulatory bodies like DHA in property transactions.

The Petitioner, Sibghat Elahi Chauhan, approached the Court after DHA refused to issue NDCs for his exempted plots, marking “caution” on them, which prevented their sale. Chauhan argued that he had fulfilled all obligations under prior agreements with DHA, and no legal basis existed for withholding the certificates.

Chauhan’s petition follows a series of transactions with DHA in 2004 and 2014, through which he and his family members sold land to DHA and received partial compensation in the form of plots. While he successfully sold twelve plots after obtaining NDCs, DHA later imposed a caution on the remaining plots, citing various reasons, including an ongoing civil dispute related to the property.

Mr. Justice Abid Hussain Chattha, delivering the judgement, highlighted that DHA’s authority does not extend to unilaterally restricting property transactions without a specific legal mandate. The judgement reaffirmed that any action affecting property rights must follow due judicial process, rather than administrative action.

The Court found DHA’s reasoning for the “caution” lacking a lawful basis, as no provision authorized such an action. DHA, the Court noted, could pursue legal remedies for any contractual grievances through Civil Court proceedings, rather than restricting the petitioner’s rights without judicial oversight.

The ruling emphasized Articles 23 and 24 of the Constitution, which protect citizens’ right to acquire, hold, and dispose of property. DHA’s marking of “caution” without a Court order was deemed an infringement on this fundamental right. The Court also invoked Article 10-A, asserting that the petitioner had the right to a fair hearing before any action affecting his property could be taken.

The Court cited prior case law, including Raja Haroon Rashid Vs. Defence Housing Authority (2017 CLC 342), which ruled that DHA cannot impose restrictions on property without judicial process. This case set a precedent that DHA lacks the authority to interfere with property transactions after they are legally concluded through registered deeds.

In its judgement, the Lahore High Court allowed the petition, declared the DHA’s “caution” marking as unlawful, and directed DHA to issue NDCs for the remaining plots. Mr. Justice Abid Hussain Chattha underscored that if DHA perceives any breach of contractual obligations, it should seek redress in Civil Court instead of unilateral administrative actions.