BEFORE THE BONAFIDE COMMISSION LOA, LAHORE

REFERENCE NO. 175/2019

Naheed Afshan W/o Muhammad Javaid Aslam RIo House No. 2-D, Wahdat Colony,
Lahore

Applicant
VS.
1. Lahore Development Authority through Director General, 467/0-11, Main
Boulevard, M.A. Johar Town, Lahore.

2. Director, Land Development-II, 467/0-11, Main Boulevard, M.A. Johar

Town, Lahore.
Respondents
Regarding Plot No. 211, Abbas Block, Mustafa Town, Lahore (File No. MST-281)

Chairman The scrutiny committee in its meeting held on 07.01.2019 considered the

request of applicant Naheed Afshan Wlo Muhammad Javaid Aslam and submitted this

reference for consideration and decision of plot No. 211, Abbas Block, Mustafa Town

Lahore.

2. Brief facts as narrated in this reference are:-

Sohail Noor S/o Noor Muhammad allegedly claimed ownership of land

measuring 19M falling under Khasra No. (old) 5035, and Khasra No. (New) 6772 of

Mouza Niaz Baig, Lahore, for which his entitlement was worked out to be 5M-157Sqft.

Sohail Noor was granted exemption of plot No. 211, Block Abbas measuring 5M-

139Sqft. As per record of file, Allocation letter for plot No. 211, Block Abbas, Mustafa

Town was allegedly issued in favour of Mr. Sohail Noor Sio Noor Muhammad vide letter

No. 288 dated 29.05.1995. Exemption letter was allegedly issued vide letter No. 14787,

dated 29.08.1998. Possession order of the said plot was allegedly issued in favour of

exemptee vide letter No. 15542 dated 12.09.1998. Physical Possession was handed

over to exemptee on 12.09.1998 vide EO letter No. 3892 dated 14.09.1998. 1st transfer

letter of plot No. 211, Block Abbas, Mustafa Town was issued in favour of Mr. Khalid

Manzoor Sio Sheikh Manzoor Hussain vide letter No. 19882, dated 14.07.1999. 2nd

transfer letter stands issued in favour of Mr. Imran Haider Sio Afzaal Haider vide letter

No. 28442, dated 09.10.1999. 3rd Current transfer letter was issued in favour of Mst.

Naheed Afshan Wlo Muhammad Javaid Aslam vide letter No. T000743 dated
03.05.2006. It has been brought to light by the Record Sifting Team that the ownership

of exemptee Sohail Noor is invalid and defective because the exchange mutation,

bearing No. 14040, upon which it was based on was cancelled. In the light of

observations of Sifting report, a cancellation letter vide No.1 02 dated 22.11.2018, was

issued in respect of plot No. 211, Block Abbas, Mustafa Town Scheme.

3. The representative of LOA argued that the defect in the ownership of the

original Exemptee's land or plea of fraud or irregularities committed by the LOA or the

Revenue Department functionaries does not absolve the applicant from abiding by the

terms and conditions of the transfer of exemption accepted by him, even if the entire

transaction of proceedings before transfer of exemption are proved to be fraudulent he

cannot raise the plea of protection on the principle of section 41 of the Transfer of

Property Act, 1882. In case he fulfills the terms and conditions accepted by him at the

time of transfer of exemption, LOA shall not be bound to transfer to him the proprietary

rights, notwithstanding the fraud or collusion committed by the LOA officers/officials to

which the applicant was not a party. The applicant paid transfer fee but the price of the

plot was not paid by him. The vendor has not paid any price of the land of plot nor

transferred land to the LOA, therefore, the price paid by the Applicant to the vendor

does not include the price of the land which was to be transferred to LOA. The applicant

is liable to transfer the above mentioned land to the LOA or alternatively in order to

resolve the dispute, to pay the price of the land of the plot for transfer of title of the plot

in his favour and prayed that the reference be dismissed being without merit.

4. Conversely, the applicant contended that on 03.05.2006 she purchased

plot No. 211, Abbas Block, Mustafa Town, Lahore measuring 5-Marla 197-Sqft for a

total consideration price of Rs. 5,05,000/- (Fifty five lacs and five thousand only) from

her real brother Imran Haider AW-2. Further contended that originally her brother Syed

Imran Haider purchased the disputed plot after obtaining loan from the bank but her

brother could not pay the amount to the bank therefore he sold the disputed plot in the

name of applicant for consideration. Further contended that the applicant constructed

double storey house with the permission and knowledge of LOA. The applicant was
shocked when she received office order of cancellation of plot. The applicant further

contended that she is a bonafide purchaser for consideration, therefore, the disputed

plot be regularized and the office order dated 22.11.2018 of the cancellation of plot be

recalled.

5. This Commission minutely scanned the file of the reference and heard the

arguments of both the side at length and observed as under:-

i. The respondents allocated plot No. 211, Abbas Block, Mustafa Town,

Lahore measuring 5-Marla, 157Sqft. on 29.05.1995.

ii. Exemption letter for plot No. 211, Abbas Block, Mustafa Town, Lahore

was issued in favour of Sohail Noor S/o Noor Muhammad on 29.09.1998.

iii. Order of possession was issued on 12.09.1998.

IV. Physical possession of plot was handed over on 14.09.1998.

v. Building plan submitted by 2nd transferee was approved on 12.11.1999.

vi. At the site, the owner has constructed a double storey house.

vii. Completion Certificate was issued on 03.09.2005.

viii. Since the date of exemption, none of the respondents, ever pointed out

any illegality in the file, nor interfered in the possession of the occupant.

ix. The applicant is 3rd transferee of the plot.

x. The respondent allowed each transfer of plot after due scrutiny of record

and transfer of plot was completed in presence of officials of LOA, who not

only signed the transfer letter but also appeared in the photograph

alongwith the vendor and the transferee.

xi. That the original exemptee and subsequent transferees received the price

of plot who have till today not been questioned about the alleged

accusation.

xii. The statement of applicant in this reference remained unrebutted.

6. All these facts establish the applicant as bonafide purchaser for

consideration and without notice.

, .

7. Section 41 of transfer of property protect the right of a bonafide purchaser.

The Language of section 41 transfer of property Act 1882 has been reproduced as

under:

"where with the consent express or implied, of the persons interested in

immovable property a person is the ostensible owner of such property and

transfers the same for consideration, the transfer shall not be voidable on

the ground that the transferor was not authorized to make it.

Provided that the transferee, after taking reasonable care to ascertain that

the transferor had power to make the transfer, has acted in good faith."

8. In the instant case, the applicant examined the documents mentioned

here in above and thereafter made the payment of plot and received possession of the

plot and built the house.

9. In view of the above circumstances, this commission unanimously

recommend as under:

a) The office order dated 22.11.2018 of cancellation of plot No. 211,

Abbas Block, Mustafa Town, Lahore is a nullity in the eye of law,

based on ulterior motives, void ab initio and ineffective on the rights

of applicant.

b) The applicant is a bonafide purchaser for consideration and without

notice. Therefore, the LOA is directed to regularize the plot of

applicant.

c) The applicant is a lawful owner of plot No. 211, Abbas Block,

Mustafa Town, Lahore. Therefore, the respondents are

permanently restrained from interfering in the lawful possession of

applicant over the suit plot. However, the Respondents are entitled

to recover all amounts outstanding against the transferor or the

transferee.

d) This Commission also observed that the LOA was not only deprived

of land but also suffered financial loss. The plot was transferred to
... J • C

the applicant by LOA on the same terms and conditions on which it

was held by the original exemptee including cancellation of the plot.

In order to resolve the dispute and avoid cancellation of the plot,

the applicant shall pay to LOA the price of plot. Therefore, to

compensate LOA, the applicant is directed to deposit price of land

to the LOA, under Rule 8 Sub Rule 3 Clause (iii) of the LOA Rules

2014 read with Clause-3 and 17 of terms and condition of

exemption letter in lieu of price of land which was to be surrendered

to LOA, according to the Deputy Commissioner Lahore valuation

table for the year 2006 alongwith simple interest, for delayed

payment, at the rate of 17.5% w.e.f. 03.05.2006, the date of

transfer of the plot within a period of six months from the date of

announcement of this order (challan shall be prepared and

delivered to the applicant within a month). In case of non-

compliance, on the expiry of six months the plot No. 211, Abbas

Block, Mustafa Town, Lahore shall stand cancelled and the super

structure raised on the suit plot shall be demolished by the LOA on

the expense of applicant.

e) The Director General, Lahore Development Authority, is directed to

initiate criminal proceedings against all the LOA official employees

and the revenue staff involved in the fraud of this case, after due

inquiry.

10. In the above terms this reference is disposed of.

J~~~M~~
Member, LOA Commission Former Judge Lahore High Court
Lahore. Chairman, LOA Commission
Lahore·~9 . oq.~ oL?J
DATED: 28-09-2020

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