Pakistan Case Law
1989 SCMR 1594

SAID ALI SHAH vs MUHAMMAD SHAH

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Citation1989 SCMR 1594
CourtSupreme Court of Pakistan
Case No.Civil Petition for Leave to Appeal No,134 of 1983
Date1988-08-09
Judge(s)Muhammad Afzal Zullah and Javid lqbal
Authored byJavid Iqbal
ResultPetition dismissed
AI Summary — generated from this judgment; read the full text below and verify before relying on it.

This petition for leave to appeal was directed against an order of the Lahore High Court which dismissed the petitioner's civil revision. The dispute arose from an agreement to sell land allotted to the petitioner under the Abadkari Scheme. The petitioner agreed to sell the land to the respondent for consideration, with the stipulation that the transfer would occur after the petitioner acquired proprietary rights. After receiving the consideration and subsequently obtaining proprietary rights, the petitioner instead transferred the land to a third party. The respondent filed a suit for specific performance. The trial court dismissed the suit, finding the agreement illegal and void. However, the appellate court reversed this decision, holding that the agreement was legal as it merely undertook to complete the sale after the acquisition of proprietary rights, rendering Section 19 of the Colonization of Government Lands (Punjab) Act 1912 inapplicable. The High Court upheld this appellate decision. The Supreme Court dismissed the petition, affirming that an agreement to sell colony land after acquiring proprietary rights is valid and enforceable.

Questions settled in this judgment
  • Whether an agreement to sell colony land allotted under the Abadkari Scheme is enforceable after the vendor acquires proprietary rights?
  • Does Section 19 of the Colonization of Government Lands (Punjab) Act 1912 bar the specific performance of an agreement to sell executed before proprietary rights are acquired but to be completed after such acquisition?
Laws & provisions referred
  • Section 19, Colonization of Government Lands (Punjab) Act 1912
specific performanceagreement to sellAbadkari Schemeproprietary rightscolony landcivil revision

ORDER

1. ' JAVID IQBAL, J.--This petition for leave to appeal is directed against the order of the Lahore High Court, Lahore, dated 12th January 1983 whereby the civil revision of the petitioner was dismissed.

2. ' Briefly the facts are that the disputed land was allotted to the petitioner under Abadkari Scheme.

3. He entered into an agreement to sell the said land on 5th May, 1973 to the respondent for a consideration of Rs,11,500 with the stipulation that it would be transferred in favour of the respondent after the acquisition of proprietary rights. The agreement to sell was got registered and the petitioner after receiving the consideration money also executed a receipt in favour of the respondent. The petitioner was granted proprietary rights in the said land on 16th August, 1979.

4. However instead of transferring the said land under the agreement to the respondent it was transferred by the petitioner to one Muhammad Nawaz through Allah Diwaya his general attorney.

5. It was in this background that a suit for specific performance was filed by the respondent as against the petitioner. After hearing the parties the suit was dismissed by the trial Court holding that the impugned agreement of sale was illegal and void and as such specific performance of it could not be ordered. Thereupon the respondent challenged the aforesaid judgment and decree in appeal which was accepted on the ground that the agreement to sell sought to be enforced was legal as under it an undertaking was made to do all what was-necessary for formally completing the sale and that after the conferment of proprietary rights the provisions of section 19 of the Colony Act could not be invoked as against that agreement. The judgment of the Additional District Judge passed in appeal of the respondent in his favour was challenged by the petitioner by way of civil revision which was dismissed by the learned Judge as stated above. Hence the present petition.

6. We have heard learned counsel for the petitioner at some length. The law laid down by the Supreme Court in 1980 SCMR 314 (Ghulam Muhammad v. Maula Dad etc.) is fully attracted to the facts of the present case. Hence we do not find any merit in this petition which is accordingly dismissed.

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