CREDIT RISK AND SECURITY

DOCUMENTATION
IN AGRICULTURAL FINANCING
FACILITATED BY
ADNAN ADIL HUSSAIN.
RISK INVOLVED IN AGRICULTURE
FINANCING……
Integrated Risk Structure:
Farmer's Perspective

Production Climate
• Machinery risk • Natural resource
• Production loss risk
• Managerial
Farmer risks
• Risk of natural
capacity disasters
• Effects of disease
• Work health risks
or pests
• Capital risk
Finances • Business and tax risks
Market
• Risk of default within / • Risk of quality / quantity loss
outside the Value Chain
Inputs • Price risks
• Excess supply risk
• Input price risks
• Input quality risk
• Timely availability
DOCUMENTATION
ENCUMBRANCE CREATION &
RECORDING
MOVEABLE PROPERTIES
IMMOVEABLE PROPERTIES
 WHAT IS “DOCUMENTATION”
• Customer related Account Opening Documents.
• Pre-Sanction Documents.
• Post Sanction Documents.
• TRADE related Documents.
• Monitoring Documents.
• SWAP Documents.
• Rescheduling/Restructuring Documents.
 FINANCE PRODUCTS TYPE
• General & Consumer/Housing Finance related:
• Short Term (RF/CF etc)
• Medium Term (DF/TF)
• Long Term (DF/TF)
• FOREIGN TRADE Related:
• Pre-shipment Export Finance
• Packing Finance
• Post shipment Export Finance
• Post Shipment Export Finance
• FIM/Forced PAD/PAD
• FATR
• Non Fund-based Facilities
• L/C Site/ DA (short term)
• L/C DA (medium/long term)
• Supplier Credit LC (Long term)
• LG
• Converted DF
• Trade Credit Insurance
 PROCESS OF CREDIT

•. REMEDIAL
CREDIT
INITIATION
MANAGEMENT
CREDIT
APPROVAL

CREDIT

 
PRE
COLLECTION DISBURSEMENT

 
A/C
DISBURSEMENT
  MAINTENANCE
MONITORING
CIVIL WRONG AND CRIMINAL
OFFENCE
Criminal wrongs are considered to
be wrongs against the community.

A criminal act is also called an ‘offence’, because

such an act offends or challenges the
command/authority of the law of the sovereign or
the ruler, i.e., the State
Civil wrongs are considered to be wrong against
the individual.
POST SANCTION DOCUMENTATION
• Why Documents are sought
• Evidence in negotiation
• Use in litigation
• Types of Legal Documents
• Documents having effects in criminal litigation
• Documents having effects in Civil Litigation
• Charge Creation
• Moveable Assets
• Immoveable Assets
• Recording of Charge /Lien Marking.
• Moveable Assets
• Immoveable Assets
 DOCUMENTATION

CONVENTIONAL ISLAMIC
AGREEMENT FOR AGREEMENT FOR
FINANCING FINANCING

Encumbrance
Encumbrance Creation
Recording

Standard Charge Limited Company

Documents

Property Related Entities (other than

Documents limited companies
 CONCEPT OF FINANCE AGREEMENT IN
CONVENTIONAL BANKING
• BUYBACK AGREEMENT
• Customer sells the goods to the bank at sale price (principle). The
bank pays the sale price. The customer then purchases the same
goods at a marked up price (purchase price) and pays the same after
some time in lump sum or in installment. The purchase price till its
payment is secured through primary security & collateral.
 AGREEMENT TO FINANCE-CONVENTIONAL
.
BUY BACK AGREEMENT
SELLS
GOODS

SALE PRICE
BANK CUSTOMER
BUYS BACK GOODS
DEFERRED PAYMENT PURCHASE PRICE (IN LUMP SUM OR INSTALMENT)

PRIMARY
IMMOVEABLE MOVEABLE
SECURITY
Guarantee
&
Indemnity
CHARGE HYPOTHEC
MORTGAGE PLEDGE
SEC 100 ATION
 ISLAMIC MODES OF FINANCING

• SBP CIRCULAR 2003 (

https://www.sbp.org.pk/bpd/2003/C1.htm)
• Islamic banking Sharia Compliance Instructions regarding
financing were issued on April 15, 2005
• IBD Circular No: 02 of 2008 dated 25-03-2008.
• https://www.sbp.org.pk/press/essentials/Essentials-Mod-Agreem
ent.htm
(Agreements)
• https://www.sbp.org.pk/IB/Gloss.asp
Murabaha Murabaha means a sale of goods by a person to another under an arrangement whereby the seller is obliged to disclose to the buyer the
cost of goods sold either on cash basis or deferred payment basis and a margin of profit included in the sale price of goods agreed to be
sold.

Musawamah Musawamah is a general kind of sale in which price of the commodity to be traded is stipulated between seller and the buyer without
any reference to the price paid or cost incurred by the former. Thus it is different from Murabaha in respect of pricing formula. Unlike
Murabaha, seller in Musawamah is not obliged to reveal his cost

Ijarah (Leasing) In Ijara/leasing, the corpus of leased commodity remains in the ownership of the lessor and only its usufruct is transferred to the lessee.

Salam (Advance Salam (advance payment against deferred delivery of goods) means a kind of sale whereby the seller undertakes to supply specific
payment--Deferred goods to a buyer at a future date in consideration of a price fully paid in advance at the time the contract of sale is made
Delivery Sale)
Musharaka Musharaka means relationship established under a contract by the mutual consent of the parities for sharing of profits and losses
arising from a joint enterprise or venture.
Mudaraba Mudaraba means an arrangement in which a person participates with his money and another with his efforts and shall include banks,
unit trusts, mutual funds or any other institutions or persons by whatever name called.

Istisna Istisna‘a is an exceptional mode of sale, at an agreed price, whereby the buyer places an order to manufacture, assemble or construct,
or cause so to do anything to be delivered at a future date

MUSAQAT Musaqat (Irrigation) partnership is a partnership that depends on one party presenting designated plants/trees that produce usable
(Irrigation):- products/items/goods output to another in order to work on their irrigation in consideration for a common defined share in fruits. This
mode is applicable in agriculture sector in a very effective manner, especially for orchard financing. A specific or predetermined share
of the enterprise output (e.g. a third or a half, etc.) will go to the provider for labor and enterprise

MUZARA’A Muzara’a (Sharecropping) is partnership in crops in which one party presents land to another for cultivation and maintenance in
(Sharecropping) consideration for a common defined share in the crop.
MUGHARASA Mugharasa (agricultural) partnership is a partnership in which one party presents a treeless piece of land to another to plant trees on it
(Agriculture) on the condition that they share the trees and fruits in accordance with a defined percentage.
 Islamic Mode of Financing
.
MURABAHA: •.
Murabaha (@‫ )مرا@بحه‬means a sale of
goods by a person to another under
an arrangement whereby the seller
is obliged to disclose to the buyer
the cost of goods sold either on
cash basis or deferred payment
basis and a margin of profit
included in the sale price of goods
agreed to be sold.
Application Procedure
Murabaha is used for Credit Sale by the IBIs. 1. Signing of Master Agreement for Murabaha
The subject matter i.e. goods/assets are selected Financing between the client and the IBI.
by customer and purchased by IBI and then sold 2. Appointing an agent to purchase commodities on
to customer on deferred payment basis. IBIs behalf by executing Agency Agreement, if
required.
The concept of agency is used in Murabaha. A 3. Client gives Purchase Requisition to the IBI
third party or the customer is appointed as an whenever a commodity is required.
agent to act on behalf of the IBI. 4. The IBI or the agent, as the case may be, purchases
the commodity and takes possession.
5. In case of the agent, the agent informs the IBI after
purchase that he has purchased the commodity on
its behalf.
6. Physical inspection (if possible) by the IBI of the
commodities.
7. The client makes an offer to purchase the
commodity from the IBI or the IBI offers to sell the
same at an agreed price (i.e. Cost +Profit).
8. Acceptance by the IBI/client and the sale is
concluded. The ownership plus the risk of the
commodity is transferred from the IBI to the client.
9. The customer pays the price as per the agreed upon
schedule of payment
 MURABAHA
. AGREEMENT
AGENCY
AGREEMENT-
PURCHASES
GOODS ON AGENT
BANK BEHALF

Inspection of Goods

Purchase Requisition

BANK Sells goods to Customer (Cost Plus Profit) CUSTOMER

Payment of Price) as per Schedule

IMMOVEABLE MOVEABLE
Guarantee
&
Indemnity
CHARGE
SEC 100
MORTGAGE HYPOTHECATION
PLEDGE
 AGREEMENT OF MURABAHA

• SALE AND PURCHASE OF THE GOODS

• The Institution agrees to sell the Goods to the Client to a maximum amount of Rs____________ and the Client
agrees to purchase the Goods from the Institution from time to time at the Contract Price. Upon receipt by the
Institution of the Client's Purchase Requisition advising the Institution to purchase the Goods and making
payment therefore, the Institution shall acquire the Goods either directly or through the Agent. The payment for
such goods shall be made by the institution directly to the Supplier on submission of Purchase Advice by the
client/agent. The said Receipt shall be substantially in a form given in Murabaha Document # 4. (For making
payment to the Supplier the bank should prepare a Pay Order/Cross cheque, etc in the name of Supplier that
should be handed over to him through client/agent. The supplier should issue invoice in the name of Bank
Account Client e.g. ‘1st Islamic Bank – ABC Company’. This way, the problem of claiming Sales or other Taxes
Refund could be solved easily).
• Upon receipt of purchase of Goods by the Institution, directly or through an Agent, from the Supplier, the Goods
shall be at the risk and cost of the Institution until such time that these Goods are sold to the Client, to be
evidenced by the acceptance, duly signed and endorsed by the Institution in Part-III of the Declaration.
• After the purchase of Goods by the Institution, the Client shall offer to purchase the Goods from the Institution
at the Contract Price in the manner provided in the Part-II of the Declaration.
• The Client’s purchase of Goods from the Institution shall be effected by the exchange of an offer and acceptance
between the Client and the Institution as stipulated in the Declaration.
 SALAM
. AGREEMENT

100% ADVANCE PAYMENT CUSTOMER/

BANK SUPPLIER
SALE OF GOODS ON
) A FUTURE DATE

IMMOVEABLE MOVEABLE
Guarantee
&
Indemnity
CHARGE
SEC 100
MORTGAGE HYPOTHECATION
PLEDGE
 SALAM: Salam Salam can be used 1. The Salam Agreement is
(@‫)س@@لم‬ for executed between the client as
(advance payment facilitating farmer customers a seller of commodities and the
against deferred who need working capital/ IBI as a buyer of these
delivery of goods) running finance. The commodities.
means a kind of sale purchaser has an advantage 2. The agreement describes
whereby the seller of purchasing particular complete specifications of the
undertakes to supply commodity, sale price and date
specific goods to a commodity at a relatively and place of delivery.
buyer at lower price. On the other 3. IBI pays the full sale price to
a future date in hand, the seller gets early client.
consideration of a price price of those items / 4. Client after receiving advance
fully paid in advance at commodities which have not price can utilize the amount for
the time the contract of been produced yet. This may his needs.
sale is made. help him meet the working 5. At maturity, client delivers the
capital requirements, etc. commodities as per agreement.
 AGREEMENT OF SALAM
• SUPPLY OF THE GOODS PURCHASED
• The Supplier has agreed to supply the Goods to the Institution pursuant to
the Written Offer for the Contract Price. Upon receipt by the Institution of
the Supplier’s Notice of Delivery, which shall be date, or such other date as
may be mutually agreed between the parties hereto, hereinafter referred to as
Delivery Date, advising the Institution to take delivery of the Goods, the
Institution shall receive or cause to receive the Goods at the designated point
of delivery.
• IBI pays the full sale price to client. Client after receiving advance price can
utilize the amount for his needs.
• The Goods shall remain at the risk of the Supplier until they are delivered to
the point of delivery and have been inspected and accepted by the Institution,
immediately after which, all risks in respect of the Goods shall be passed on
to the Institution;
 ISTISNA
. AGREEMENT

PAYMENT SCHEDULES AS PER DELIVERY CUSTOMER/

BANK SUPPLIER
ORDER FOR SALE OF GOODS ON A FUTURE DATE
)
AND IN INSTALLMENTS OF DELIVERY

IMMOVEABLE MOVEABLE
Guarantee
&
Indemnity
CHARGE
SEC 100
MORTGAGE HYPOTHECATION
PLEDGE
ISTISNA: - Istisna Istisna is a mode of financing
( ‫ ) ا@ستصناع‬is a mode of that may be used
sale, at an agreed price, assets/goods which require
whereby the buyer places processing/ value addition. It
an order to manufacture, may be used for financing for
assemble or construct, or farm buildings, machinery,
cause so to do anything to fabrication and other types of
be delivered at a future assets that are used in
date. agriculture sector.
The payment of price will be as
per mutual agreement e.g. full in
advance, fully deferred to
delivery, partially advance and
partially at delivery, in tranches
or full payment after delivery.
1. The Istisna Agreement is executed
for between two parties, one as a
seller/manufacturer of goods and
the other as a buyer of these
goods.
2. The agreement describes complete
specifications of the goods/assets
or manufactured items sale price,
date and place of delivery.
3. IBI pays price as per mutual
agreement.
4. At maturity, client delivers
commodities as per agreement.
 AGREEMENT OF ISTISNA
MANUFACTURE OF GOODS
• The Manufacturer/Supplier hereby agrees to manufacture or cause to manufacture the Goods
described below on Istisna for the Institution to be delivered as per schedule set out in clause
• Insert description of the Goods with specifications, quantity quality and respective contract
price]
• The Contract Price shall subject to the provisions of clause 5 hereof, be paid by the Institution as
per the following schedule:
• Within ____ days of signing this Agreement Rs. [insert amount]
• On [insert date] -------------------
• On [insert date] -------------------
• On [insert date] -------------------
• On delivery -------------------
• TOTAL ===========
• The Manufacturer/Supplier agrees that the Contract Price is fixed at the amount stated in clause
2.02 and shall not be revised except by mutual consent, in writing, of the parties hereto due to
any reason whatsoever including the Force Majeure events, if any;
• The delivery of the Goods shall be according to the following schedule:
• Description of Goods Date: Quantity
• The Goods shall remain at the risk of the Manufacturer/Supplier until they are delivered to the
point of delivery and have been inspected and accepted by the Institution, immediately after
which, all risks in respect of the Goods shall be passed on to the Institution:
 IJARA
. AGREEMENT

ASSET
SHOP
Purchases Asset
as Agent of Bank

Possession of asset with bank till Ijara agreement

BANK Delivery of Asset after Ijara Agreement CUSTOMER

Payment of rentals
) as per tenure

IMMOVEABLE MOVEABLE
Guarantee
&
Indemnity
CHARGE
SEC 100
MORTGAGE HYPOTHECATION
PLEDGE
IJARAH: - Ijarah ( @‫ ) ا@جاره‬is a Contrary to trade-based modes of
contract whereby the owner of financing, Ijarah is an ongoing
an asset, other than contract which has flexibility of
consumables, transfers its increase in rental amount during the
usufruct to another person for tenure. Ijarah is a very useful mode of
an agreed period for an agreed
financing specially for long term
consideration.
financing with the option to change
the rental as per rules of Ijarah.
Usually long-term assets are not
feasible for trade based modes since
the bench-mark changing scenarios do
not affect the price in any manner,
while it can be taken in consideration
in Ijarah. In agri sector, the
instrument of Ijarah can be used for
almost all types of machinery and
equipments financing needs like tube-
well; tractor or building and land
financing, etc.
1. Signing of Undertaking to Ijarah
according to which the client undertakes
to take certain asset on lease from the
institution upon arrival of the asset.
2. If required, the IBI and the client may
enter into an agency agreement
according to which the client would
purchase asset on behalf of IBI.
3. After purchasing of a particular asset,
the IBI and client execute an Ijarah
Agreement in which they agree on rental
and tenure.
4. The IBI, after agreement delivers the
asset to the client for use.
5. At the end of lease period, normally the
IBI and the client enter into a separate
agreement of sale through which the
leased asset is sold to the client against
an agreed price.
 Musharaka
. AGREEMENT

MUSHARAKA
ASSET/PROJECT

BANK AND CUSTOEMR JOINTLY PURCHASE/ OWN THE

MUSHARAKA ASSET. CUSTOMER AS AGENT MANAGES
AND POSSESS THE MUSHARAKA ASSET

TRANSFER OF OWNERSHIP OF RESPECTIVE UNIT/

BANK RENT OF REST OF UNITS CUSTOMER

PURCHASE OF UNITS OF
) MUSGHARAKA ASSETS

IMMOVEABLE MOVEABLE
Guarantee
&
Indemnity
CHARGE
SEC 100
MORTGAGE HYPOTHECATION
PLEDGE
MUSHARAKA:- Musharaka can be used for financing 1. One or more entrepreneurs approach an
Musharaka means needs from working capital to project IBI for the required finance for a
relationship established under finance, and from short term project.
a contract by the mutual financing to term finance. Issuance of 2. The IBI, along with other partners,
consent of the parities for certificates and other kinds of provides complete or partial finance.
sharing of profits and losses financial needs can also be structured 3. All partners, including the IBI, have the
arising from a joint enterprise under this mode. right to participate in the management
or venture. of project.
4. Profits are to be distributed according to
the agreed profit distribution
ratio/formula, which needs not be the
same as per their capital proportions.
5. Losses, however, are to be shared on
pro rata basis.
6. At the end of the period, the principal
with profit proceeds is to be distributed
among the partners.
 MUDARABA
. AGREEMENT

PROJECT

BANK AND CUSTOEMR JOINTLY INVEST. Bank with capital

and customer with management

Provision of capital as per requirements CUSTOMER

BANK

Profit as per sharing ratio/

) Loss entirely Bank

IMMOVEABLE MOVEABLE
Guarantee
&
Indemnity
CHARGE
SEC 100
MORTGAGE HYPOTHECATION
PLEDGE
MUDARABA:- Mudaraba Mudarba like Musharaka can be used 1. Two parties execute Mudaraba
means an arrangement in for most of the financing needs. Agreement by way of which they decide
which a person participates that one party will provide Mudaraba
with his money (called capital and other party manages the
Rabbulmal) and another with capital for a particular period.
his efforts (called Mudarib) 2. Profit rate is to be decided as agreed
for sharing in profit from between them.
investment of these funds in 3. Mudarib has management rights and,
an agreed manner. therefore, he will utilize the partnership
capital in an agreed manner.
4. At the end of the tenor, Mudarib will
return principal and pre agreed share of
the profit to the Rabb-ul-Maal.
5. If the business incurs a loss, it will be
borne by Rabb-ul-Maal if there happens
no negligence on the part of Mudarib.
6. Investor is not liable for the losses
beyond the capital he has contributed.
MUSAQAT This mode is applicable in Under this mode, multiple options
(Irrigation):- agriculture sector in a very are available based on the
effective manner, especially ownership of land/orchard, rental
Musaqat (Irrigation) for orchard financing. A arrangements, labor, etc.
partnership is a specific or predetermined
partnership that depends share of the enterprise output
on one party presenting (e.g. a third or a half, etc.)
designated plants/trees will go to the provider for
that produce usable labor and
products/items/goods enterprise. This will be clearly
output to another in positioned in the contract.
order to work on their
irrigation in
consideration for a
common defined share
in fruits.
MUZARA’A
(Sharecropping):-
Muzara’a (Sharecropping) is
partnership in crops in which
one party presents land to
another for cultivation and
maintenance in consideration
for a common defined share
in the crop.
Muzara'a is an acceptable legal
contract suitable for financing
agricultural operations. It can take spelled out. They are as under:
several forms.
For instance, contract based
arrangement can specify that land
and other physical factors of
production for the enterprise could
come from one party while labor
could be provided by the other party.
Incidence of a three-party Muzara’a
partnership in which the first party
provides land, the second provides a
combination of required physical
inputs, and the third provides labor.
physical inputs, and the third
provides labor.
For Muzara'a contracts to be legally
viable, several critical conditions must be
1. The functions and obligations of each
individual or party in the contract
must be clearly and unambiguously
defined.
2. The location and characteristics of the
land to be cultivated under Muzara'a
must be clearly identified and
submitted to the party that is to
implement the operation.
3. The production goal of the enterprise
must be defined in terms of end
products i.e. crops or live stock to be
grown.
4. The period in which the Muzara'a
contract is to be effective must be
defined.
MUGHARASA Mugharasa is a legal contract Mugharasa contract requires following
(Agriculture): - suitable for financing development conditions to be followed:
of orchards/ trees. Under the
arrangement, it is specified that land 1. The functions and obligations of each
and other physical factors of individual or party in the contract
Mugharasa (agricultural)
partnership is a production can come from one party must be clearly and unambiguously
partnership in which one while labor can be provided by the defined.
party presents a treeless other party. 2. The location and characteristics of the
piece of land to another to land to be cultivated under Mugharasa
plant trees on it on the must be clearly identified.
condition that they share the 3. The production goal of the
trees and fruits in arrangement must be defined in terms
accordance with a defined of end products.
percentage. 4. The period in which the
Mugharasa contract is to be effective
must be defined.
5. Method of distribution of output must
be stated clearly in the contract.
 SECURITY AND COLLATERAL IN
ISLAMIC BANKING
RISK MANAGEMENT GUIDELINES FOR IB https://www.sbp.org.pk/ibd/2008/C1.htm

• IBIs should secure their financing/investments by accepting security

and collateral as per their financing policies which may include the
following:
• Charge on agricultural land through passbook system.
• Mortgage of rural, urban or commercial property.
• Hypothecation/mortgage of assets e.g. processing, grading and
packaging machinery, generator & refrigerators, etc.
• Lien on IBI deposit, IBI guarantee and/or;
• Individual/Group Guarantee.
• Any other tangible collateral security acceptable to IBI.
 REGULATORY FRAMEWORK ON
AGRI FINANCE DOCUMENTATION

 ACD Circular No. 05 of 2003

 ACD Circular No. 02 of 2010
 AC&MFD Circular No. 02 0f 2016August 08,
2016 
 MODES OF ENCUMBRANCES
• INTANGIBLE PROPERTY
• Lien
• Hypothecation (for STA)
• TANGIBLE PROPERTY
• MOVEABLE PROPERTY
• Pledge,
• Hypothecation
• IMMOVEABLE PROPERTY
• Mortgage
• Charge as per section 100 TPA….(Passbook)
 MOVEABLE PROPERTY (as per STA)
• As per Section 2 sub section 29 of STA, ”movable property” means any
tangible or intangible property other than immovable property, including but
not limited to receivables; rights under letters of credit; rights under trust
receipts; securities (including Government securities) other than book-entry
securities; right to funds credited in a deposit account; title documents;
negotiable instruments; intellectual property, including patents, trademarks,
copyrights, trade-names, goodwill, royalties; stock in trade; inventory; interest
in partnership and other form of entity; ornaments; jewelery; stones; goods-in-
transit; agricultural produce; leaves; grass, including growing grass; petroleum
or minerals that have been extracted; motor vehicles and property attached to
immovable property as defined in clause xxxviii of this sub-section;
• Collateral means “moveable property” whether located inside or outside
Pakistan, that is subject to a security interest.
 IMMOVEABLE PROPERTY
• Section 3 of TPA 1882 “attached to the earth” means-
(a) rooted in the earth, as in the case of trees and shrubs;
(b) imbedded in the earth, as in the case of walls or buildings; or
(c) attached to what is so imbedded for the permanent beneficial enjoyment of that to
which it is attached:
• “immoveable property” includes land, buildings, benefits to arise out of land and things
attached to the earth, or permanently fastened to anything attached to the earth, hereditary
allowances, rights to ways, lights, ferries and fisheries but does not include (a) standing
timber, growing crops or grass whether immediate severance thereof it intended or not; (b)
fruit upon and juice in trees whether in existence or to grow in future; and (c) machinery
embedded in or attached to the earth, when dealt with apart from the land (section 2 sub
section 6 of Registration Act 1908)
• "Immovable property" shall include land, benefits to arise out of land, and things attached
to the earth, or permanently fastened to anything attached to the earth. (section 3 of
General Clauses Act 1897)
 IMMOVEABLE PROPERTY (as per STA 2016)
• “immovable property” shall include land, benefits to arise out of land, and
things attached to the earth, or permanently fastened to anything attached to
the earth, and shall, notwithstanding anything inconsistent therewith
contained in the General Clauses Act, 1897 (X of 1897), Transfer of Property
Act, 1882 (IV of 1882), Registration Act 1908, (XVI of 1908) and any other
law for the time being in force, exclude property attached to immovable
property as defined in clause (xxxviii) of this sub-section; (STA section 2
sub section 25)
• Section 2 sub section (38) of STA 2016; ”property attached to immovable
property” means the following property irrespective of whether it is attached
to the earth or permanently fastened to anything attached to the earth:
– (a) plant, equipment or machinery;
– (b) fixtures and fittings;
– (c) cables or pipelines embedded in the earth or otherwise; and
– (d) any other item of property as may be notified by the Federal Government for the
purposes of this Act notwithstanding anything inconsistent therewith contained in the
General Clauses Act, 1897 (X of 1897), Transfer of Property Act, 1882 (IV of 1882),
Registration Act, 1908 (XVI of 1908) and any other law for the time being in force;
 LAWS OF ENCUMBRANCES-MOVEABLE PROPERTY

• TYPES & LAWS

MOVEABLE
PROPERTY

PLEDGE HYPOTHECATION LIEN

CREATION REGISTRATION CREATION REGISTRATION

Companies Agreement Entities

Agreement Entities (STA Companies (SECP
(Companies Act
(Contract Act) 2016) Contract Act (STA) Companies Act)
2017)
 LAWS OF ENCUMBRANCES-IMMOVEABLE PROPERTY

• TYPES & LAWS IMMOVEABLE

PROPERTY

CHARGE ON
MORTGAGE ASSIGNMENT
PASSBOOK

SAME AS
MORTGAGE
CREATION &
CREATION REGISTRATION
REGISTRATION

Agreement REGISTRAR ENDORSEMENT IN

(TRANSFER OF REGISTRATION ACT LIEN MARKING Passbook (Pass
PROPERTY ACT 1908 Book Act 1973)

CONCERNED
PROPERTY RECORD

SECP (COMPANIES
ACT)
ENCUMBRANCE
ON MOVEABLE
PROPERTY
• Contract Act 1872
• Financial Institutions Secured Transaction Act 2016 (STA)
• Sales of Goods Act 1930
 HYPOTHECATION
• ”Hypothecation” means a charge created by a customer, on all
or any present or after-acquired movable property, in favour of
a secured creditor without delivery of possession of the
movable property to such secured creditor; (Section 2 sub-
section 24 of STA 2016)
 PLEDGE
• “The bailment of goods as security for payment of a debt or
performance of a promise is called pledge”. (section 172).
• “A bailment is the delivery of goods by one person to another for
some purpose, upon a contract that they shall, when the purpose is
accomplished, be returned or otherwise disposed off according to the
direction of the person delivering them” (Section 148).
 PLEDGE DOCUMENTATION-GOLD
• Agreement to Finance
• Personal Guarantee
• Letter of Pledge
• Schroffs/ Goldsmith Assessment
• Delivery and sealing the bag in presence of Customer
• Undertaking of Genuineness
• Indemnification
 PLEDGE DOCUMENTATION-STOCKS
• IB-12
• IB-6/7
• (IB-24/22/23) In case of collateral
• IB-29(not used for Agri Credit)
• IB-26
• No liability/charge certificate
• Letter of Disclaimer.
• Letter of request from borrower to take delivery
• Letter of entrustment from bank to Muccaddum.
• Godown Certificate from Muccaddum.
• Delivery receipt Report by Muccaddum.
• Stock Report.
• Delivery Order.
 TYPES OF SHORTAGE
Decrease in quantity
• Due to Fire
• Due to natural calamity.
• Due to theft/burglary
• Due to forced lifting of the customer
• Due to mischievous lifting of stocks by the customer in connivance with
Muccaddum.
• Due to irregular/improper/delayed issuance or Non-Issuance of Delivery
Order by the bank.
• Due to Improper calculation of DP.
 TYPES OF SHORTAGE
Decrease in quality
• Due to Moisture/pests or other instant force majure problems
• Mal-handling/careless control of stocks which may contain thousands of instances
like Cotton bales needs moisture at certain degree a little bit of carelessness may
create havoc.
• Mal-handling/careless control of stocks with malafide intentions.
• Natural Calamity eg; rain, heat etc
• Stock being older than 180 days in violation of FIFO not observed.
• Subjective rating/grading of stocks by auditor.
 PERSONAL GUARANTEE
• By virtue of personal guarantee the borrower or other person
giving guarantee for the repayment of “purchase price” binds
himself personally to adjust the bank finance in case of default.
• The person furnishing personal guarantee shall be taken as
wearing the same shoe as that of borrower.
 LEGAL POSITION OF PERSONAL
GUARANTEE
• The said person shall be treated as “customer”, meaning
thereby the claim/suit shall be filed at the same time against
him and the borrower. The general perception that the guarantor
shall be contacted after the recovery efforts from borrower have
failed, does not carry any legal standing after promulgation of
Financial Institution (Recovery of Finances) Ordinance 2001.
• Section 2 (c) of The Financial Institution (Recovery of
Finances) Ordinance 2001 defines customer as “a person to
whom finance has been extended by a financial institution and
includes a person on whose behalf a guarantee or letter of credit
has been issued by a financial institution as well as A SURETY
OR AN INDEMNIFIER”
 PROPERTY OF THE PERSONAL GUARANTOR
• Section 16 of the Financial Institution (Recovery of Finances) Ordinance 2001 deals with the
issue.
• “Attachment before judgment, injunction and appointment of Receivers.- (1)
Where the suit filed by a financial institution is for the recovery of any amount through the
sale of any property which is mortgaged, pledged, hypothecated, assigned, or otherwise
charged or which is the subject of any obligation in favor of the financial institution as
security for finance or for or in relation to a finance lease, the Banking Court may, on
application by the financial institution, with a view to preventing such property from being
transferred, alienated, encumbered, wasted or otherwise dealt with in a manner which is likely
to impair or prejudice the security in favor of the financial institution, or otherwise in the
interest of justice 
• (a) restrain the customer and any other concerned person from transferring, alienating,
parting with possession or otherwise encumbering, charging, disposing or dealing with the
property in any manner;
• (b) Attach such property;
• (c) Transfer possession of such property to the financial institution; or
• (d) Appoint one or more Receivers of such property on such terms and conditions as it may
deem fit. “
 DP note why Redundant Now?
(For Commercial Banks)
• Contract never dies.
• Limitation?
• History of Banking Recovery Jurisdictions
• Civil Court Speedy Trials of Negotiatble Instruments.
• Banking Tribunal Act 1979
• Banking Tribunal Act 1984
• Banking Recovery Act 1997
• FIO 2001
IMMOVEABLE PROPERTIES
WHAT DOES LAND RECORD
MEAN?
GENERAL TYPES OF DOCUMENTS FOR LAND USE
• The Registered deed of absolute ownership;
Registered deed of allotment rights;
• Registered deed of leasehold rights;
• Allotment letter/transfer letter of perpetual
proprietary rights;
• •
Allotment letter/transfer letter of lease hold
rights;
• Lease deed/s; Mutation (intiqaal);
PTD/PTO;
• Bay-nama (Sale Deed);
• Hiba-naama (Gift Deed);
• Tabadla-nama (Exchange Deed);
• another optional document of title alongwith
Tuqseem-nama (Demarcation Deed);
• Dastbardari-nama (Relinquishment Deed);
• Conveyance Deed (transfer of rights by the
competent authority say court);
• Pass book;
• Fard (abstract from register Haqdaran),
• Girdawri (document narrating possession of
land)
• Mutation
Notification/letter from Government for the
allotment/grant/lease of specific land;
• Certificate from Government regarding sale of
government land
• PT-1 (a property tax record narrating the record
of an urban property).
• The transfer of allotment rights is often
registered with sub-registrars hence creating
allotment/transfer letter.
• The transfer of leasehold rights are often
registered with sub-registrars hence creating
another optional document of title alongwith the
lease deed.
GENERAL TYPES OF LAND MANAGEMENT RIGHTS IN
PAKISTAN
• Allotment rights by a development authority,
• Allotment rights by a cooperative society,
• Allotment rights by Federal/Provincial
Government,
• Allotment rights by Housing Limited
companies,
• Lease hold rights by army housing schemes,
• Leasehold rights by army controlled schemes
under category,
• Long Leasehold rights by private individuals,
• Ordinary leasehold rights for possession (rent
based holdings),
• Rights acquired through Grant of land by
Federal/provincial governments,
• Absolute ownership of agricultural land through
a deed registered under Transfer of Property Act
(TPA),
• Holding of agricultural land by virtue of pass
book and mutation (in revenue record only),
• Holding of agricultural land by virtue of
mutation alone, Holding of agricultural land
through tenancy,
• Absolute ownership of urban land through a
deed registered under Transfer of Property Act
(TPA) to be recorded in property tax department,
• Absolute ownership of rights (with land and
without roof) in a multistory building through a
deed registered under Transfer of Property Act
(TPA) to be recorded in property tax department,
• Absolute ownership of space rights (without
land and roof) in a multistory building through a
deed registered under Transfer of Property Act
(TPA) to be recorded in property tax department,
• Holding by way of trust,
• State Land,
• Holding of Army Controlled land with the high
security area.
DOCUMENTS & LAND RECORD SYSTEMS IN
PAKISTAN
 TYPES OF LAND HOLDING THAT CAN BE
MORTGAGED
1. Absolute Ownership (Free Hold)
1. Freehold of Urban Land
2. Freehold of Urbanized Land
3. Freehold of Agricultural Land
2. Possession rights
I. Allotment Rights by Statutory Bodies
(authorities/coop societies registered
under the relevant act). (exclusive) READ THE FIRST DOCUMENT TO DETERMINE THE RIGHT

II. Leasehold Rights (exclusive)

III. Licence
IV. Easement
 State

Federal Lands Military Lands Provinces

Federally Others (Property Tax,

Federally Federally Controlled Administered Housing & Urban Development Evacuee Property
Cooperative Housing Defence Purpose Development Cooperative
Federal Capital Administered Housing Schemes in Board of Revenue Authorities Trust, Government
Lands
Societies in other parts of
other parts of Lands (HUD)/Other alike Housing Societies departments owned
provinces controlling agency
provinces departments of like SBCA/ PHATA land)
Provincial etc
Administration of Provincial Governments
CDA owned private Land MEO Controlled Government Land Ownership &
schemes through Political Lands (Forest, Deserts & DEVELOPMENT allotment
Agents (DC/Acs) others ) Low Income AUTHORITIES
Housing Owned Schemes
Town Planning/ Map Federal Owned Private Lands Provincial Schemes Purchase of Land
land-without Administered Government Land from Private Approval of
approvals of Local
Government further grant of under cultivated under
sources/granted by maps/designs
Provincial
Controlled areas rights Cantonment lease/allotment Town Planning & Government through
Urbanization Development
master planning Authority/
Private Housing
Schemes Private Land DEVELOPMENT Local
AUTHORITIES
Approval of maps / Agricultural Government
Private Housing
designs of private Schemes
housing schemes
Approval of maps /
(within area)
designs of private
Private Land under housing schemes
small cities (within area)
(through Local
Government)-
Private Housing
Schemes

OWNERSHIP STRUCTURE OF
PAKISTAN
Colonies
 DEFINITION OF SALE AS PER TPA 1882
SECTION 54 OF TPA
• Sale” is a transfer of ownership in exchange for a price paid or
promised or part paid and part promised.
• Delivery of tangible immovable property takes place when the
seller places the buyer, or such person as he directs in
possession of the property.

• SO TWO ELEMENTS- OWNERSHIP AND POSSESSION

“POSSESSION & OWNERSHIP-100 k years ago”
DAWN OF AGRICULTURE-Asia
 MUGHAL ERA-PRE & POST
.
 KHILJIS & MUGHALS
– Sultan Ala-uddin Khilji (1255 – 1316) , who was the first
ruler to introduce a system of land administration in
Indo-Pak Sub Continent.
– Sher shah Sori 1540-45 (Talati to Patwari)
– Mughal Emperor Akbar's minister for revenue affairs, Todar
Mal (d. 1659) is rightly credited for laying down the basic
foundations of the land administration system which is now
prevalent in South Asia
 COLONIALISM
• Documented established practices of Land revenue
• Specifically worked on Measurements, demarcations
• Transfer of Property Act 1882 (sale, Exchange, Lease, Gift,
Conveyance)
• Land Revenue Act 1887 (Now 1967)
• Cooperative Societies Act 1860, 1925 (Allotment)
• Modern concepts of “enjoyment of possession”
• Colonization of Government Land Act 1912
 SETTLEMENT
• In 1765, the East India Company acquired the Diwani, or control over the revenues.
• “Permanent Settlement” was introduced in Central Indo-Pak and Bangal in 1793 by
Lord Cornwallis planned by John Shore, his next in command. The zamindars and
revenue collectors were converted into so many landlords.
• “Ryotwari‫واری‬‫ رعی ت‬Settlement” system was introduced in south and south-western India,
there were no zamindars with large estates with whom settlement of land revenue could
be made. Under the Ryotwari system, the government got tax from those who cultivated
lands with their own hands. Under the Ryotwari system, all the middlement were
removed, however all occupants/ cultivators ( ryots ) were on rent and state was the
Zamindar.
• “Mahalwari ‫مح ا لواری‬Settlement System” was a modified version of the zamindari
settlement, introduced in the Ganga valley, the North-West Provinces, parts of central
India, and the Punjab. The revenue settlement was to be made village by village or estate
(mahal) by estate with landlords or heads of families who collectively claimed to be the
landlords of the village or the estate.
 MOUZA / DEH/ ESTATE
• It is a territorial unit with a separate name, definite
boundaries, and area precisely measured and divided into
plots / khasras / survey numbers.
• Each mouza is a revenue estate and has a cadastral map
maintained in the land revenue record with a Hadbast
Number except Sindh Province. Mouza, Deh, Village, Killi
and Chak are the names commonly used for it.
• The term mouza / deh is widely used in the settled areas
while the term village and or killi are used in the unsettled
areas. There may be one or more settlements, abadies,
basties, dhokes, goths, etc. in the territory of a mouza / deh.
• The mouzas / dehs may also have scattered inhabitation
while there may be some mouzas without population as well.
 GENERAL
• During British Era the concept of boundaries in Land Revenue System were
organized. In the first regular settlements the survey of village consisted of
two distinct stages. (Documented in 1852).
– Preparation of Boundary Map (Naqsha Thakbasi)
– Making of field Map and a Khasra (Khasra was a register narrating each field with
its number and its owners and cultivators, soil and class of land)
• In Pakistan about 190 Million books and registers are used for land record.
• Halqa Patwari manages about 17 registers.
• No changes can be made in record-set till next settlement which is normally
carried out after every 30-35 years.
 Board of Revenue
Member BOR

Division
Commissioner

District
Deputy Commissioner (Collector)

Tehsil/ Taluka (Powers

Tehsildar/ Mukhtiarofkar
Revenue Officer)
(Assistant Naib Tehsildar/ Assistan Mukhtiar Kar
Assistant Commissioner Revenue Officer
Collector of Firstpowers)
Grade) (Assistant Collector of Second Grade)

Girdawar/Kanugo/ Head Tapadar Circle

Kanoongo (Kanugo)/ Head Tapadar

Patwar Circle
Patwari/ Tapadar controlling Gnerally one estate but can be more than one

Estates/ Deh/ Mauza/Village/Chak/Deh (assessment Circle)

Village Notable (Chaudhry, Numberdar etc)
LAND REVENUE SYSTEM
KHASRA
 KHASRA
• Khasra was a register, showing in respect of each field, its number in the map, the names of its owner
and of the person who cultivated it, its linear dimensions are area, the soil or class of land which it
contained and the crops growing in it at the time of measurement.
• The area of village is now divided into squares of equal size, the skeleton traverse being built up on a
square usually of 200 kadams laid down with great care somewhere near the center of the village. In
making this square the first thing to do is to measure with the utmost accuracy in open ground a base
line of 200 kadams, represented by a 5-inch line on the map, the scale commonly adopted being one
inch to 40 Kadam. The ends of this line are marked by small masonry pillars, which should be well
built and carefully preserved by stone or concrete blocks. If the first square is accurately laid down, it
is not difficult to ensure the correctness of the whole traverse.
• In all survey work each parcel of land lying in one spot, in the occupation of one person, or of several
persons holding jointly, and held under one title, should ordinarily be measured as a separate survey
number; but large area may be broken up into convenient fields. (Land Settlement Manual Chapter 4
(4.13.i)
 ‫‪KHASRA 3‬‬

‫‪KHASRA 4‬‬
‫ش‬ ‫ن‬ ‫کت‬
‫ھ و ی‪ /‬کا ت کا‬ ‫سالم کھات ہ‬
‫ق‬
‫خ ش‬ ‫تن‬
‫پ ٹ ہ ‪ /‬مزارعہ‬ ‫ک یھ وٹ‬ ‫عال ہ‬
‫تن‬
‫ود کا ت‬ ‫کھ و ی ‪3‬‬ ‫دار‬
‫‪D‬‬ ‫کھ و ی ‪5‬‬
‫تن‬ ‫خ ش‬ ‫خ‬
‫کھ و ی ‪1‬‬ ‫تن‬ ‫ود کا ت‬ ‫ود کاش ت ت ن‬
‫کھ و ی ‪2‬‬ ‫کھ و ی ‪4‬‬
‫ک یھ وٹ‬ ‫ک یھ وٹ‬
‫‪KHASRA 2‬‬

‫دار‬ ‫ک یھ وٹ دار‬
‫‪B‬‬ ‫دار‬
‫‪A‬‬ ‫‪C‬‬
‫ن‬ ‫خ‬
‫‪ KHASRA 1‬سرہ‪ /‬سروے مب ر ‪1‬‬
 KHEWAT & KHATONI NUMBER
• The sub account number is a number , given to the cultivators.
• As Khewat number refers to a set of owners, khatoni number refers to a set of
cultivators in the same sense. This khatoni number is given to the cultivators in the
Khewat
• Each Khewat will have at least one khatoni or more khatonies but will appear in a
sequence within the Khewat and in the village.
• The Khatoni number if in one sense shows the cultivators then in another sense will
show “who are the persons who have the possession of the Khatoni consisting of
various Khasras in the Khewat.
• In still another sense it also shows who are the persons who are owners of various
khasras in the khatoni. In the same way as in case of Khewat where owner may sell,
gift or mortgage, same type of transaction also takes place in the Khatoni also.
 KHEWAT/ HOLDING
• It is also called as revenue record/jamabandi number and it is ownership number.
• The khewat is the number of owner's holdings which should be arranged in the
order in which the names of owners are given in the village in genealogical tree
(Shajra Nusb).
• The first column of jamanadi is the Khewat number or number khewat. It is the
number of owner/owners of land. It is written in black ink.
• This number is subject to change in next jamabandi. Sometimes a number in red ink
is mentioned in this column, it is the number of khewat in last jamabandi mentioned
for reference only.
 MIN & SALAM
• The ’Min’ means partially and ’Salam’ means completely. A term MIN is at times
mentioned which denotes to the part of whole khewat number which is divided into parts.
• If min is mentioned against an old Khewat/Khatoni/Khasra number then one can assume
that the Khewat / khatoni / khasra under consideration is carved / formed out of the old
Khewat / Khatoni / Khasra partially or transaction is taking place partially.
• ’Salam’ word refers to the fact that new Khewat / Khatoni / Khasra is formed out of the
old Khewat / Khatoni / Khasra when same was transacted completely.
• In case the Khewat / Khatoni / Khasra is formed due to min transaction, then one will see
’Min’ besides the Khewat / Khatoni / Khasra.
• In case nothing is mentioned then it could be very well assumed that the Khewat / khatoni
/ khasra is ’Salam’, by default.
SINDH-VILLAGE FORM VIII-A
 SHAJRA NASAB

• Prepared in every estate at the time of settlement, it forms a part of record of

rights.
• Shajra Nasb is a pedigree table showing succession to ownership rights
occurring from time to time in an estate.
• It is revised after every five years along with Jamabandi and in the interval,
changes occurring from time to time are reflected in the Patwari’s copy
through suitable references.
• The Shajra Nasb also serves as an index for locating an owner’s accounts
(Khata Numbers) in the Jamabandi. In the new Jamabandi owner’s accounts
are arranged as per arrangement in the Shajra Nasb. The name of owner in
the Shajra Nasb is arranged according to caste and sub-caste.
SHAJRA NASB
 MEASUREMENTS
(distance from right heel of first step from second step)

+
9 sq kadam = 1 marla (about 30 sq
yards)
 SURVEYS & BOUNDARIES
• There is a separate record of rights, field map and a separate assessment for ever estate or
Mahal but the unit for the purposes of the survey is not the estate but the village or Mauzas.
• Sub-divisions of estate also exist known as Taraf, Patti, Khel (in KP) or Jum (In Baluchistan).
• To demarcate boundaries masonry platforms called Sihaddas are built at every point where the
boundaries of two estate meet.
• Where the boundaries of two Mauza (deh) meet a tri-junction pillar named sihada is erected.
• At every angle on the boundary line between two Sihaddas the Burji (pillars) are erected.
Several fields can have one survey number and one field may have many Killas with different
survey numbers (canal irrigated areas) thus inconveniently divided.
 KILA
• On new canals in the west of the Punjab each survey square in Crown
lands has been divided into 25 small squares, known as kilas, each
occupying a fraction over an acre. Each Kila forms a field or survey
numbers
• Kilabandi has been introduced to a large extent even in privately owned
estate on the Lower Chenab and Lower Jehlum Canals.
• On the newest canals the squares have been replaced by rectangles
containing exactly 25 acres, so that the kila is the equivalent of an
acre.
• On old canals it is difficult to induce landowner to accept Kilabandi,
which involves the breaking up of old field boundarie
 MEASUREMENT
• The simplest way or measuring land is by pacing.
• When a man in walking steps out first with his left foot, the pace or kadam is the distance between the heel
of the right foot in its original position and the heel of the same foot after it has been advanced in from of
the left foot to make the second step.
• A kadam is the usual unit of measures of length and a square kadam the unit of measures of area.
• In the east of the Punjab, where the bigha is the local measure, the square kadam is known as the biswani;
in the west, where the ghumao is employed, it is known as the sarsahi. Twenty biswanis make a biswa, and
twenty biswas a bigha. Nine sarsahis make a Marla, Twenty merlas a kanal, and eight kanals a ghumao.
• The bigha of the Western Punjab is one half of a ghumao. As the average height of a man, in different
localities varies greatly, it is not surprising that the local measures in use were found to be far from
uniform.
• The bigha employed in some settlements in the east of the Punjab is 5/24th of an acre. It is usually known
as the kachcha bigha, to distinguish it from the old Mughal measurs known as the Shahjahani or pakka
bigah which is exactly three times as large. Where the shahjahani bigha is the unit of area the linear
measure is not the kadam; but the gatha of 99 inches. The kadams in use vary from 54 to 66 inches, the
latter being the most usual length.
 MEASUREMENTS
• The following are the basic measurements of land used in Punjab, Pakistan in ascending order.
• 1 karam is 5.5 feet
• 1 marla is 9 Sq karams (272.25 sq ft)
• 1 kanaal is 20 marlas (5,445 sq ft)
• 1 keela is 8 kanaals (43,560 sq ft = 1 acre)
• 1 marabba is 25 keelas (1,089,000 sq ft = 25 acres)
• A keela is measured rectangularly, reckoned as an area 36 karams x 40 karams, or 198 feet x 220 feet = 43,560 square feet.
Kothis are measured in marlas and kanaals. Most are 2-4 kanaals but the big ones can be anything from 4-6 kanaals.
A couple of older measures:
SINDH MEASUREMENTS
1 biswa = 15 Sq karams; 12 biswas = 1 kanaal
1 bigha = 20 biswas - 1008 Sq Yards - 842.68 Sq Mtr
• Guntas are fractions of Acres.
• 120 Square Yards = 1 Gunta,
• 40 Guntas = 1 Acre
• 1 Anna = 20.16 sq yd
• 6 Anna = 1 Guntha = 120 square yard
• 4 Guntha = 1 Jareeb = 484 square yard
• 4 Jareeb = 1 Kanee = 1936 square yard
• 10 Jareeb = 1 Acre = 4840 square yard
• 25 Acres = 1 Marabba
 KHASRA GIRDAWARI
• Khasra Girdawari is a document, in which the
patwari enters the name of owner, name of
cultivator, land/khasra number, area, kind of
land, cultivated and non cultivated area, source
of irrigation, name of crop and its conditions,
revenue and rate of revenue, minimum twice
in a year.
88
 GIRDAWARI
• .
KHARABA
 SINDH NUMBER SHUMARI
• Crop Inspection Register Village Form (VF
VI) also called register Number Shumari, is
updated thrice a year on Rabi (1 st Jan to 31st
Jan), Kharif (1st Sep to 31st Oct) and Adhawa
(1st March to 10th March).
• Statement of Kharaba (Village Form XXV) is
prepared where land is dried and no harvest is
made.
NUMBER SHUMARI VF-VI
SINDH -Kharaba Form XXV
 FIELD MAP
• A field map for every revenue village is prepared at the time of
the Settlement. The original map is called ’MUSAVI’. Its
updated version is called ’SHAJRA KISTWAR’ and these are
kept in safe custody in the Record Room. A wax copy called
‘MOMI’ is available in the Tehsil.
• All changes in field boundaries occurring due to partition, sale
etc. attested in Mutation are entered from the Parat Sarkar
Mutation onto the Momi. A copy on cloth called ’LATHA’ is
kept and updated by the Patwari.
MUSAAVI
AKS SHAJRA

96
 `MUTATION
ROAZNAMCHA PROCESS
WAQIATI
IN SINDH
VILLAGE FORM
XI
DOCUMENT
REGISTER
NARRATING DAKHIL KARIJ
TRANSFER OF
( MUTATION
INTEREST( SAL
REGISTER)
E DEED/
MORTGAGE IN SINDH (FORM
DEED ) VIII A & B)

‫نتق‬ ‫ٹ‬
ABSTRACT ‫کاپی ا ال‬-‫پرت پ وار‬
FROM
RAGISTER
HAQDARAN KACHERI
ZAMEEEN (JALSA-E-AAM)

RECORDS OF ‫کاپی‬-‫پرت تسرکار‬

‫ف‬ ‫نق‬
‫س‬
RIGHTS
‫ا ال‬
‫دی ہہ‬/)‫رد (م ل مع ی ادی‬ REGISTER
‫ف‬ HAQDARAN -E-
7 ‫ ی ا‬2 ‫ارم‬ ZAMEEN
 DAILY DIARY

• The Roznamcha Waqiati (Daily Diary) to be

maintained by the Patwari, shall be in the
Form XX. The pages of Roznamcha shall be
stitched in a volume and each page shall bear
the book number and page number in print.
DAILY DIARY
SINDH-VILLAGE FORM IX
SINDH-VILLAGE FORM IX
 MUTATION REGISTER (REGISTER DAKHIL KHARIJ)
(FORM XXXV)
• The mutation register consists of a foil and counterfoil. The latter is the Patwari`s copy of the
register, the former is removed after orders have been passed and sent to the Tehsil to be filed
with Jamabandi.
• The Authorized officer shall forward the information so received to the cell. The incharge of
the cell shall affix a copy of the entry on the notice board of the Taluka/Tehsil Office and
shall also forward a copy of the entry to the tapedar (patwari) concerned for affixing it at a
conspicuous place in Tapedar area/Patwar Circle and shall also intimate in writing to the
persons so involved in the transaction.
• The aggrieved person may file objection within 15 days of the receipt of the notice.
• A katcheri (Jalsa-e-Aam) will be convened in the concerned Tapa (patwar Circle) and
objections shall be resolved out.
• The entries in the register of mutation shall after they have been certified by the Mukhtiarkar
be transferred to the record of rights .
 MUTATION REGISTER
• .
MEMO OF MUTATION
MEMO OF MUTATION-SINDH
 TATIMA SHAJRA
• The tatima shajra in the case of a partition will be a copy of that
prepared as soon as the partition is completed.
• Application under Section 117 of Land revenue Act 1967 is given
for partition and after due process the Order of Partition is issued
under Section 145 of Land Revenue Act 1967.
• In the case of a transaction based on a registered deed the revenue
officer should immediately on receipt of the registration
memorandum from the Registration Office, direct the Kanungo
and the Patwari to proceed to the spot and prepare a tatima shajra,
• Revenue Officer shall not sanction the mutation in the absence of
a proper map of the new field numbers attested by the Kanungo
and checked by himself.
 PARTITION

• Application under Section 117 of Land

revenue Act 1967 is given for partition and
after due process the Order of Partition is
issued under Section 145 of Land Revenue Act
1967.
 SINDH-MEASUREMENT-PARTITION
• Land Measurement System will be through either of “Square
System”, “Rectangulation System” and Kishtawari System (old
khasra/ survey system) in hilly or rainy areas where
measurement as per previous two systems is not possible.
• For demarcation application is made under section 117 of Land
Revenue Act 1967 and is recorded in register XXXIII (33) and
after due process will prepare report and will enter in register
XXXIII-A.
 TATIMMA SHAJRA
• .
 RECORD OF RIGHTS- Fard Malkiyat
Fard Malkiyat (Misl-e Miadi)‫م سلمع ی ا دی‬
• The document showing ownership of land is called the
"Fard Malkiyat".
• On the top of jamabandi the information like Hadbast
number (it is the number of boundary of revenue
village)
• It is created from the Haqdaran Zamin (Jammabandi)
Register and the incorporations made through any
mutation (Intiqal). It is essentially just a copy of a
particular part of the Haqdaran Zamin Register.
112
 SINDH RECORD OF RIGHT
• Village Form II Urban Property Register (Revenue based lands)
used for Small cities of Sindh.
• Form VII-B is used for Agricultural land and mutations.
• Form VII-A is used for re-Writing/Reconstruction of Record for
Agricultural Land.
• Village Form VIII-A (Register of Holding for respective
Harvest) is filled out.
VILLAGE FORM VII-B
VILLAGE FORM VII-A
 RECORD OF RIGHTS-
REGISTER HAQDARAN –E- ZAMEEN

Register Haqdaran Zamin (Land Registration) / Jammabandi

‫مس ک‬
Register / Misl-e Hiqayut‫لح ای ت‬
• It primarily shows the right holders of land including details on
owner, cultivator, land, soil, and rent. It is created every four
years for incorporating recent mutations (Intiqal) from Register
Dakhil Kharij, that have taken place since the last document
was created from the previous Haqdaran Zamin (land owners)
register.
 CONSOLIDATION OF HOLDINGS
• Consolidation means the redistribution of all or any of the lands in an estate or sub-
division of an estate so as to reduce the number of plots (Section 2 (f) Punjab
Consolidation of Holding Ordinance 1960).
• Any two or more land-owners in an estate or a sub-division holding together not less
than the minimum area of land prescribed in this behalf may make an application in
writing to the Consolidation Officer of the consolidation of their holdings.
•  Not less than fifty-one per cent of the land-owners in an estate or a sub-division,
holdings not less than fifty-one per cent of the cultivated area in the estate or the sub-
division, make an application for consolidation of their holdings.
•  A land-owner or a tenant shall have the same right in the holding or land allotted to
him in pursuance of a scheme of consolidation as he had in his original holding or
tenancy, as the case may be.
 FARD BADAR
.
 SHAMILAT
• Around the cultivated land owned by the original founding families of a village, there could
be huge tracts of waste land called “Shamlat” land, collectively owned by the village owners
over which they would have a right either to reclaim the land themselves or allow others also
to do so.
• The original owners were called “AaIa Maliks” and others who had reclaimed the land with
their consent were called “Adna Maliks”. The Aala Maliks had the right to bring further
Shamlat waste land under cultivation by digging wells or adopting some other means.
• In certain cases even Adna Maliks would have the right to expand the area of their
ownership by reclaiming Shamlat land. However, an Adna Malik could not allow
strangers to bring the Shamlat land under cultivation.
• Persons who had reclaimed land as Adna Maliks, as well as those who had been transferred
rights only to a piece of land (without the right to Shamlat lands) were called “Malik
Qabza”. There could also be another class, mainly herdsmen, enjoying grazing rights over
the Shamlat waste lands and paying a fee for it (“Tirni/Phirini”).
 ‫ئ‬ ‫ش‬ ‫ش‬
‫آسا یش‬/‫الت دی ہہ‬‫م‬ ‫م‬
ِ ‫ ا‬/‫ا الت‬

Ala Malik A Abadi C

Deh

Adna Malik

Tirni
Gora
B Deh D

Malik Qabza

Reclaimed land/ purchased

 SHAMILAT & ASAISH
• Shamilat is the concept available in Punjab, Federal Capital and
part of KPK whereas in Sindh and part of Baluchistan
‫ئ‬ the term
used for similar type of land is “ASAISH” ‫ آسا ی ش‬though this is
restrained to Colonization of Government Lands Act only.
• Section 2 (1) (c) of The Sind Goth Abad (Housing Scheme) Act
1987 states, “Asaish” means the land adjacent to a village and
reserved for grazing and other common use of the village
community;
 SHAMILAT
• The proprietary and possessory rights in "Shamilat Deh", vested, in absolute
terms, in proprietors. The purpose for which a particular parcel of
"Shamilat Deh" could be used, the rights of proprietors and non-proprietors
therein were set out, in the "Sharat Wajib-ul-arz”.
• A proprietor was absolute owner of his share in "Shamilat Deh", held in common
with other proprietors and could, depending upon rights recorded in the "Sharat
Wazib-ul-arz", cultivate, sell, mortgage, lease and even partition the common
land.
• The proprietors had a right to exclude non-proprietors from user of this land. The
share holding of a proprietor was calculated as per his proprietary land holdings
or the land revenue paid or the numbers of "ploughs" etc.
 SHAMILAT
• The cultivated land in "Shamilat Deh" was cultivated by proprietors in accordance
with their share holdings. Large tracts of land were left for pastures called
"Charagah" or "Charand". The "Shamilat Deh" of a revenue estate was used for
common purposes like pasture (Charand), Johar (pond) or Chappar, streets paths,
cremation grounds, school, chaupals etc., but more often than not its user was
confined to proprietors.
• The non-proprietors, though, an integral part of agrarian societies, were excluded
from ownership and in many villages from the user of common land.
• A revenue officer did not venture into the "Abadi Deh" situated within the "Lal
Lakir", or demarcate khewats, khatonies or khasra numbers. A single khewat,
khatoni and khasra number was allotted to the "Abadi Deh". The normal rule of
ownership of land within "Abadi Deh" was and is even today that ownership,
follows possession.
MUTATION OF SHAMILAT
 LAND SETTLEMENT MANUAL CHAPTER 7.19
• If a deed of transfer by sale, gift, mortgage or exchange does not
specially mention that a share of shamilat is transferred with the land it
should be presumed that the Shamilat is not transferred.
• Where a mutation of inheritance, sale, gift or mortgage covers a share of
the shamilat, the shamilat khata should be entered in the mutation so that
the mutation of the co-sharers in the shamilat may be correctly entered
in the jamabandi (NOW CALLED Register Haqdaran e Zamin).
• The name of the person to whom the shamilat pertaining to this new
khata belongs, shall also be recorded in the column of ownership under
that of the new owner with the title hissadar shamilat, and the khata of
the new holding shall always be incorporated in the jamabandi
immediately below the khata of the holding from which it was taken.
LAND SETTLEMENT MANUAL CHAPTER 7.41
• The mutation of the share of the shamilat should be dealt with as part of the same
mutation proceeding as the transfer of the original holding, but it is a part in which
any of the co-sharers of the shamilat have a right to be heard, and a distinct order
should be passed by the revenue officer whether the mutation of the shamilat is
sanctioned or not.
• When the mutation does not cover a share in the shamilat then in column 8 of the
mutation sheet and in the ownership column of the jamabandi the new alienee
shall be shown as bila hissa shamilat or malik kabza so as to secure that at
partition he shall not simply by being a khewatdar receive a share of the shamilat
to which he has no title.
• In the estate, where the common (Shamilat) land exists, the owner who has no
share in common land should be shown as “Malik Qabza” and the person who
has no land but has right in the common land should be shown as “Righ holder
in common land ( Haqadar Shamilat)”
 LAL-LAKEER
• A revenue estate or the select land parcel of a revenue estate which attains
urban character, are merged with the village settlement boundaries, commonly
known as ‘Red Line’.
• As soon as Collector will get report about change in character of land from
agriculture to residential, he issues orders for extension of “Red-Line”.
Revenue Officer shall enter a mutation in favour of Abadi Deh ( Urban
Portion of Land)
• Individual rights are diminished and certified copies cannot be issued in
favour of an individual. (Due to the fact that Land Revenue System is not land
titling system but a revenue collection system)
• The revenue collection is therefore transferred for collection under W.P.
Urban Immoveable Property Tax Act 1958
 LAL-LAKEER
• During, all settlement operations, the land falling under settlements i.e.
constructed areas were declared as Abad-i-Deh within the Lal-Lakeer and no
detailed record of ownership or propriety rights was included in Misl-e-Haqiat.
• Throughout the history of the settlement, the main thrust of the Government
remained upon the preparation of record of rights related to agriculture lands
with a view to assess the land revenue and with the purpose that by virtue of
occupation upon agricultural land who was responsible to pay the land revenue
or rent to the government.
• The West Pakistan Land Revenue Act, 1967 excludes the site of a town or
village from its preview under section 3 of the very Act. Para 7.57-A of the
Land Records Manual lays down the procedure to put areas that have become
'urban',
 LAL-LAKEER
• The properties that are included in the lal lakeer/ red circle of
the abadi deh (abadi deh is the residential area of a village, and
lal lakeer/ red circle is the line that is drawn in revenue record
to encircle that residential area) are allotted a single khasra
(survey number) and forthwith preparation of record of rights
under West Pakistan Land Revenue Act, 1967 for such
encircled properties is stopped, exposing them to exploitation
and fraud.
• It may be noted here that 'lal lakeer' exists in the majority of
about 25,892 villages of the Punjab.
SINDH TERMS
 Passbook System
• Pass book was introduced in 1973 under the agriculture commercial & industrial
purpose act from the Federal Govt. for the farmers (land owners) to facilitate
them in availing credit facilities from banks.
• It is an authenticated document for obtaining loan from banks
That Confirms:
• Ownership of agriculture land , accurate measurements , locations, soil
conditions and valuation.
• Endorsement in the pass book to create a charge in favor of banks
• Prohibition to alienate the agriculture land until the outstanding amount is repaid
• Amount of default recoverable as arrears of land revenue
• Agriculture financing is allowed to only the owner of the agricultural lands
against their pass book
 DEFINITIONS (SEC 3)

• (b)“land” means land used for agricultural

purposes or for purposes subservient to agriculture;
• (d) “loans or advances” means loans or advances
for agricultural, commercial and industrial]
purposes and includes ‘finance’ as defined in FIO
2001;
• (da) “pass book” means a title-document prepared
in the prescribed manner setting out particulars of
land owned by land owner and shall include e-pass
book prepared or issued by a designated agency;
 PASS BOOK AND ENCUMBRANCE

• 4. Presentation of pass book.-

• (1) A land owner applying to any bank for the grant of a loan or advance may, for the
purpose of enabling the bank to take action in accordance with sub-section (4), produce
before the bank a pass book prepared in the prescribed form and manner 
• (2) The entries in the pass book shall be authenticated by the Revenue Officer and
shall be prima facie evidence of the title of the holder of the pass book to the
parcels of land entered in the pass book, free of any prior encumbrance, unless
otherwise specified therein.
• (3) The pass book shall be deemed to be a title deed and accepted as such by the
bank for granting a loan or advance to a land-owner on the security of such land
entered therein as he may indicate.
• (4) If the bank grants a loan or advance to the land-owner on the production of the pass
book, the bank shall endorse the pass book against the entry relating to the land on
the security of which the loan or advance is granted by it.
• (5) The endorsement made in the pass book under subsection (4) shall create a
charge in favour of the bank on the land against the entry relating to which the
endorsement has been made and the land-owner shall be debarred from alienating the
land until the outstanding amount of the loan or advance granted by the bank has been
repaid.
 ENTRY IN PASSBOOK-CHARGE
• (5-A) A charge on any land created under subsection (5)
shall be entered in the relevant revenue records against
the entry relating to such land].
• (6) Any alienation of land in contravention of subsection
(5) shall be void.
• (7) If the land-owner fails to repay the amount of the loan
or advance in accordance with the terms of his agreement
with the bank, the bank may, without prejudice to any
other legal remedy available to it, apply to the Collector
for the recovery of the amount in default as an arrear of
land revenue and thereupon all the provisions of the
Revenue Recovery Act, 1890, shall apply to the recovery of
the amount in default as they apply to the recovery of an
arrear of land revenue
PASS BOOK HOW FILLED
 PUNJAB PRE-EMPTION ACT 1991
• “Immovable property” means immovable property situated in any area other than an urban area or
within cantonment limits as declared by any law relating to Local Bodies or Cantonments, as the
case may be, for the time being in force;
• “pre-emptor” means a person who has the right of pre-emption;
• “right of pre-emption” means a right to acquire by purchase an immovable property in preference to
other persons by reason of such right; and
• “sale” means permanent transfer of the ownership of an immovable property in exchange for a
valuable consideration and includes transfer of an immovable property by way of ‘hiba bil-iwaz’ or
‘hiba baa-shart-ul-iwaz’, but does not include—
– transfer of an immovable property through inheritance or will or gift, other than ‘hiba bil-iwaz’ or ‘hiba ba-shart-
ul-iwaz’;
– a sale in execution of a decree for money or of any order of a civil, criminal, revenue or any other court or a
Revenue Officer or any local authority;
– exchange of agricultural land; and
– transfer of an immovable property for a consideration other than valuable consideration, such as the transfer of an
immovable property by way of dower or composition in a murder or hurt case.
LAND REVENUE RECORD- SOME STATISTICS
Admin Unit Number

Districts 131

Tehsils 541

Kanungo Circles 1,600

Patwar Circles 12,145

Total Mouzas 49,463

Rural Mouzas 43,205

 Board of Revenue
Member BOR

Division
Commissioner

District
Deputy Commissioner (Collector)

Tehsil/ Taluka (Powers

Tehsildar/ Mukhtiarofkar
Revenue Officer)
(Assistant Naib Tehsildar/ Assistan Mukhtiar Kar
Assistant Commissioner Revenue Officer
Collector of Firstpowers)
Grade) (Assistant Collector of Second Grade)

Girdawar/Kanugo/ Head Tapadar Circle

Kanoongo (Kanugo)/ Head Tapadar

Patwar Circle
Patwari/ Tapadar controlling Gnerally one estate but can be more than one

Estates/ Deh/ Mauza/Village/Chak/Deh (assessment Circle)

Village Notable (Chaudhry, Numberdar etc)
 Land holding in Pakistan
Province Subsistence Economic Holding Above Economic holding
Holding

Punjab Upto 12.5 Acres Upto 12.5 to 50 Above 50 Acres

Acres

KPK Upto 12.5 Acres Upto 12.5 to 50 Above 50 Acres

Acres

Sindh Upto 16 Acres Upto 16 to 32 Above 64 Acres

Acres

Baluchistan Upto 32 Acres Upto 32 to 64 Above 64 Acres

Acres
 DISBURSEMENT PATTERN
• .
PAKISTAN- LAND HOLDING PATTERN
No. of Population Percentage of Land holding Area Percentage of
population cultivated area

8,359, 672 100% All 55,600,000 Acres 100 %

5,600,000 67% Upto 5 Acres 10,180,000 Acres 18%

1,920,000 23% 5 to 12.5 Acres 14,180,000 Acres 25%

725,922 9% 12.5 Acres to 50 15,380,000 Acres 27%

Acres

94,479 1.21% 50 to 150 Acres 6,730,000 Acres 13%

19,271 0.23% Above 150 Acres 9,132,000 Acres 17%

 HOLDING PATTERN
..
RELEVANT LAWS, PRECAUTIONS REGARDING

URBANIZATION OF AGRI/RURAL LANDS

 URBANIZATION
As per Census 2020 results, 63.74 % of population live in rural household. Due to Urbanization the number
of Rural Mauza have decreased and the Urban Mauzas have almost doubled in number
https://www.pbs.gov.pk/sites/default/files/population/2017/tables/pakistan/Table28n.pdf

  Number of Mouzas
Census Year
Rural Partly Forest Forest Urban Unpopulated Total
Urban Populated Unpopulated

Mouza 43,205 1,149 52 170 2,400 2,487 49,463

Census
2020
Mouza 45,906 1,576 - 439 1,099 3,356 52,376
Census
2008
 MAUZAS IN PAKISTAN
(MAUZA CENSUS 2020)
  Number of Mouzas
Province

Rural Partly Forest Forest Urban Unpopul Total

Urban Populate Unpopulated ated
d
Khyber 9,200 221 18 2 213 119 9,773
Pakhtunkh
wa

Punjab 22,508 608 14 117 1,371 1,844 26,462

Sindh 5,211 199 18 42 298 208 5,976

Balochistan 6,223 100 2 1 415 316 7,057

 CAUTIONS
• More than 50 % of towns, cities in Pakistan are build by
urbanizing the rural lands. Care should be exercised to review
the first transfer of title. CAVEAT EMPTOR
• It is not necessary that the current title is in accordance of law
and duly registered hence contains no legal defects.
• One must see how land was urbanized and under which law.
There are federal and provincial laws provided.
 CATEGORIES OF LAND REVENUE PROPERTIES
1. Lands which were agricultural in its character at the time of first settlement and still
continues with the same character and its Misl-e-Haqiat is prepared and Register
Haqdaran-e-Zameen being updated from time to time. PMU-LRMIS has
predominantly computerized land records related to this category and services are
being rendered through LRMIS.
2. Land declared within the Lal Lakeer as Abad-e-Deh at the time of first settlement for
which no separate record of individual rights was prepared.
3. Lands for which Misl-e-Haqiat was prepared at the time of first settlement being
agricultural land and subsequently Misl-e-Miyadi and Register Haqdaran-e-Zameen
from time to time were updated but practically and factually such lands came under
urban areas, towns and housing societies and the shares of the landowners are recorded
with preparation of Tatimmas (supplementary maps) or without the preparation of
Tattimas, but no record is prepared as urban area/Town site/Village site on modern
lines on new format after a fresh survey.
 State
TREE OF LAND RIGHTS IN
PAKISTAN
Provincial
Federal Lands Armed Forces
Governments

Lease (Management
Land Rights Development Institutions through Cantt
Boards

Institutions/ Authorities Evacuee Property Use for Defence

Board of Revenue / Development Town Planning
Authorities Trust Forces

Grant of of Lease
Grant of to Grant of Ownership
Lease of Agri land Shamilat/ Asaesh/
Ownership Rights to Development Allotment/Lease Lease/Allot Building Control
to individuals Development Authority Colonization
to Individuals
Authorities

Sub-Lease (in case

Inheritance/ sale/ gift/
exchange/ Conveyance Cannot sub-lease of multistory Lease
apartments)

Sub-lease for lands Allotment

Sale/Transfer of
Ownership
 Who approves maps?
Development Authorities/ Local Government/
Cantonment
 Military
Local
Development Estate Office/
Government/ Private house at
Agricultural land Authority Cantonment
TMO
converted into residential Board
Military/Defence forces
(in addition to Aks Shajra Private Housing scheme
owned Area under
that demarcates the into Metropolitan area
Cantonments
boundaries and maps
approves designs within
approved boundaries)

Private Housing Scheme

Development Authority Private Land in the
in small towns (not
owned Cantonment Limits
declared as Metropolitan)

Government Lands WHO APPROVES MAPS/DESIGN/TOWN PLANNING IN

allotted/ leased for
specific purpose
WHICH TYPES OF PROPERTY
 Is it in Private Housing
Scheme or Government
Scheme?
Word “Society” is used for Cooperative Housing Society & Scheme is
either Government/ Development Authority Scheme or Private Scheme
EXISTING STRUCTURE OF Scheme
HOUSING “SCHEMES” IN
PAKISTAN

Government Scheme Private Scheme

Development Authority Builder Owned

Special Sectors Schemes High Rise Buildings
Schemes Horizontal Schemes

Sub-Lease/Allotment of Agricultural Land

Low Income Housing Plot converted into Urban-
Scheme (Lease or ownership kept Ownership transfer to
with Builder) end users

Cooperative Society for Agricultural Land

High Rise Building with converted into Urban-
Industrial Schemes
transfer of rights to Ownership with Builder
Society or owners of flats (Allotment to end user)
 TAKE AWAY
 Check ownership of scheme- Government/ Development Authority/ Private
 If private, it will be mostly Land Revenue Document based, Check ownership of
Builder
 Check Arazi Centre to see type of land in Fard/ Mutation
 Check locality area, who will pass the master plan/ maps
 Development Authority,
 Cantonment
 Local Government (Town Municipal Officer/ Union/ Tehsil/ District Council)
 Check what type of ownership right builder will transfer ULTIMATELY
 Insist for Registered Deed based on Fard/ Mutation from Arazi Centre.
 Be careful of getting a registered sale deed narrating just possession or allotment
letter
 DON’T GET SWAYED ON WORD “APPROVED SCHEME” ITS JUST THE MAP
OF SCHEME WHICH IS APPROVED AND THAT TOO WITH LIMITED TIME
TO COMPLETE
Address of property tells
the type of property?
Type of property according to land holding type.
 Property Logic/ Use of Word in address Type of land holding right Who approves Map

House 41, Khayaban e Mujahid. DHA Phase 5,   Lease (In Sindh). Land Held by Cantonment and DHA

Karachi leasing through Lease

Housing Authority

House 5, Block 9, Clifton. Karachi Clifton is Cantonment Board Area Lease Cantt Board

Plot 48, SITE Area. Karachi Industrial Estate Allotment Industrial Estates operated through SBCA

House No 48, Steel Town Cooperative Housing Cooperative Housing Society Allotment See the map for ambit of Development Authority/

Society. Karachi Local Government

Survey No 12, Deh Mithun, Mirpur Khas. Wherever word Deh, Survey, Goth will be used in Sindh Freehold See the map for ambit of Development Authority/

Address, it will be a freehold/ Land Revenue, Land Local Government

Revenue

House No 73, Moon Road, Civil Lines, Larkana Word of “Civil Line” shows it is a “Colony” owned by Lease Larkana does not have metropolitan area and

Provincial Government through Land Revenue development authority hence local government

Department. Lease/Allotment is made and in some rare

instances Government has sold them auction.

Khasra No 55, Khewat 5, Mauza Thull, Dera Allah Words of “Khasra Number”, “Khewat”, “Khatoni”, Free hold See the map for ambit of Development Authority/

yar “Mauza” “Kot”, means free hold Local Government

May be private scheme

House Number 5, Airport Road. Multan Cantt. Word of cant means Lease Lease Cantt

99-BB, Phase 4, DHA. Lahore Except for in Sindh, All Development Authorities Allot in Allotment DHA
MODES OF CONVEYANCE
 MODES OF TRANSFER
1. Sale
2. Exchange
3. Gift
4. Relinquishment
5. Inheritance
6. Will
7. Conveyance
I. Court Decrees
II. Grant through Allotment
III. Lease
IV. Allotment
 INSTANCES OF TYPES
Free Hold Lease Allotment

Revenue Based Properties MEO properties Cooperative Societies

Urban/Property tax Properties Provincial Government owned Development Authorities

Properties in Sindh

Evacuee Trust Properties Hills/ Authorities Industrial Estates/ Government

special Schemes
 TYPES OF FREE HOLD
URBAN PROPERTIES

• Through conversion from Rural to Urban

– Sindh
– Other than Sindh
• Through transfer from Development Authority
• Through Evacuee Property Trust PTD
• Through PTO
• Apartments
– Sindh ( Form II areas)
– Other than Sindh
 DOCUMENTS NARRATING INTEREST
URBAN-FREE HOLD
1. Sale deed,
2. Mutation/ Sanad
3. Sakni certificate from Tehsildar if plot is Shamile Abadi Area
4. Fard Jamanbandi/ Form II
5. Aks Shajra
6. P.T.O./P.T.D/Sale Deed/Gift Deed
7. City Survey Extract/Deh Form-II (Mutation)
8. Statement issued by the Legal Heirs along with copy of
statement from City Survey in cases of heir ship
 ALLOTMENT
• Allotment means the grant by a person duly authorized
in this behalf of a right of use or occupation of any
immovable property to any other person, but does not
include a grant by way of lease; 
• The term allotee also covers a person who, after a
property is allotted in his name, acquires it by following
a prescribed sale process. This may include paying the
transaction cost and several registration charges.
• Allotment of rights means conferring the right to use/
enjoy exclusive possession.
 WHO CAN ALLOT?
• Federal Government
• Provincial Government
• Board of Revenues
• Cooperative Housing Societies
• Industrial Estates
• Development Authorities
• (individuals cannot issue allotment/ allocation letters)
 SOME FACTS ABOUT ALLOTMENT
• Allotment of rights means conferring the right to use/ enjoy
exclusive possession.
• No one can pass a better title unless he himself possesses.
• Allotment can be “allotment of leasehold rights”.
• Transfer of allotment will be through “transfer letter”.
• Sale of allotment rights can also be made through registered deed,
but it shall be “sale of allotment rights”. The title of the land in this
case will be allotment letter not the sale deed, which will be
considered corroborative document.
 LAWS RELATING TO COOPERATIVE HOUSING
SOCIETIES
• The Cooperative Societies Act 1860 (Applicable only for
Charitable Societies)
• The Cooperative Societies Act 1925 (Applicable on all other
types of CO-OP societies
• The Cooperative Societies Rules 1927
• The Sindh Cooperative Housing Societies Act 2020
• Sindh Cooperative Societies Rules, 1927
• Model By-Laws of Cooperative Housing Society Punjab
DOCUMENTS-COOPERATIVE SOCIETY
1. Sale Agreement (Regd) (OPTIONAL)
2. Allotment order
3. Transfer letter (in case of transfer of plot)
4. Share Certificate (Optional)
5. By-Laws of Society
6. Building Plan of House approved by Development Authority
under which Society is located/ TMO
7. Permission to Sale/Mortgage/Assign
 ALLOTMENT FOR KACHI ABADI OR SPECIAL
SCHEMES
• Specific purpose-helping the poor
• Restriction for further transfer upto certain time
• Rights allotted vary in different areas (leasehold rights
can be allotted too)
• Subject to building control
 LEASE TPA 1882
• 105. Lease defined. A lease of immovable property is a transfer of a
right to enjoy such property, made for a certain time, express or
implied, or in perpetuity, in consideration of a price paid or promised,
or of money, a share of crops, service or any other thing of value, to be
rendered, periodically or on specified occasions to the transferor by the
transferee, who accepts the transfer on such terms.
• Lessor, lessee, premium and rent defined. The transferor is called the
lessor, the transferee is called the lessee, the price is called the premium,
and the money, service or other thing to be so rendered is called the
rent.
 LEASE-LAND RIGHTS?
• Lessor is the owner, lessee is just enjoying “exclusive” rights of
possession.
• The status and duration of leasehold ownership is normally
governed by the type of land use. Leases for agricultural use
are short-term (lasting 1-5 years), medium-term for agro-based
industry such as poultry or dairy farms (10-33 years), and long
term for residential, commercial, industrial and amenity uses
(usually 99 years).
 LEASED PROPERTIES
• MEO properties (Cantonment Board)
• Provincial Government owned Properties in Sindh ( City
Registrar)
• Hills/ Authorities (Concerned Development Authority)
 LEASE-MILITARY ESTATE LANDS
• MILITARY ESTATES OFFICER-. Military Estates
Officers are the agents of the Government of Pakistan
for the administration of certain lands the property of
that Government, and perform the functions
prescribed by these rules and the rules for the
Acquisition, Custody and Relinquishment of lands.
• General Land Register—The Military Estates Officer
shall prepare, in the form prescribed in Schedule I, a
General Land register of all land in the Cantonment
• The Register should be divide into as many volumes
of convenient size as may be necessary and one page
should be allotted to each survey number.
 MEO-SURVEY NUMBER
• Every piece of land which is in separate occupation or use of any
kind shall be given a separate survey number in the register.
• Where a military holding is spread over large areas, each of
which is separated by a well defined boundary, each portion
should receive a separate number; roads which traverse a
holding and over which the public has a right of way should be
excluded from the holding “Separate survey number” includes
Survey numbers as well as subsidiary survey numbers.
• In the case of mutations the plot should be described by
subsidiary survey numbers
GENERAL LAND REGISTER
 THREE CATEGORIES OF MEO LAND
Land in Cantonments must fall into one or other of three
main categories, namely:-
• (1) Land which “is vested in Central Government (forces)”.
(Classes “A and “B”).
• (2) Land which “is vested in the Cantonment Board.” (Class
“C”).
• (3) Land which falls into neither of the first two categories.
LEASE OF PROVINCIAL LANDS-Sindh
• Lease to Development Authority
• Lease by Development Authority
• Lease for specific purpose
• Lease for Agriculture
• Conversion of Rural Land (Goth Abad Act) issuance of
Form II/ Issuance of Lease by Development Authority
 SALE
• As per Section 54 of Transfer of Property Act 1882, “Sale” is a transfer of ownership in
exchange for a price paid or promised or part paid and part promised. Such transfer, in the
case of tangible immovable property of the value of one hundred rupees and upwards, or in
the case of a reversion or other intangible thing, can be made only by a registered instrument.

• In the case of tangible immovable property, of a value less than one hundred rupees, such
transfer may be made either by a registered instrument or by delivery of the property.
Delivery of tangible immovable property takes place when the seller places the buyer, or such
person as he directs in possession of the property.
 
• A contract for the sale of immovable property is a contract that a sale of such property shall
take place on terms settled between the parties. It does not, of itself, create any interest in or
charge on such property.
 EXCHANGE
• As per Section 118 of Transfer of Property Act 1882, when two
persons mutually transfer the ownership of one thing for the
ownership of another, neither thing or both things being money
only, the transaction is called an “exchange”. A transfer of
property in completion of an exchange can be made only in
manner provided for the transfer of such property by sale.
 GIFT
• A gift of a property can be made in favor of a natural person (human being) or a
legal person, such as a company, trust etc.
• A gift can be made to any person out of love and affection i.e. daughter, teacher etc.
• A gift can be made to any person in return for his/her services rendered to the donee
i.e. a servant.
• A gift can be made to a daughter to equalize her share in inheritance.
• During lifetime, One can gift all my property or a part of it. One can make a gift of
the whole of that property of which he/she is the sole owner. However, one can
make a gift of his/her share if the property is jointly owned.
• A gift made during Marz-ul-Maut cannot take effect beyond 1/3 of a donee's estate,
after payment of funeral expenses and debts, unless the legal heirs of the deceased
endorse such a gift after the donor's death. A gift made in favour of an heir during
Marz-ul-Maut cannot take effect unless other legal heirs endorse such a gift after
the donor's death.
 INHERITANCE & SUCCESSION
• Inheritance is the process of the heir inheriting his ancestors' Property.
Succession governs how the inheritance would take place.
• Upon death of any family member, legal heirs languish in courts for years
before they are able to obtain Letters of Administration (for immovable
properties) and Succession Certificates (for movable properties).
• Succession Certificate & Letter of Administration can be sought from
NADRA instead of Civil Court. (certain areas in Pakistan) and in case of
dispute/ issue, application is filed under Succession Act 1925.
• https://succession.nadra.gov.pk/
 SUCCESSION CERTIFICATE THROUGH NADRA

• Application initiation and deceased details

• Legal heirs and Assets Details
• Biometric Verification/Consent by Legal Heirs
• Document Scanning
• Advertisement in Newspaper
• Objection logging
• Case Approval
• Printing and Delivery
ADMINISTRATION OF THE ESTATE OF DECEASED
MUSLIM
The estate of a deceased Mahomedan is to be applied successively in payment of
1. His funeral expenses and death-bed charges;
2. expenses of obtaining probate, letters of administration, or succession certificate;
3. Wages due for service rendered to the deceased within three months next
preceding his death by any laborer, artisan or domestic servant;
4. Debts of the deceased according to their respective priorities (if any); and
5. Legacies (wills etc) not exceeding one-third (sunni/shia difference) of what
remains after all the above payments have been made.
6. The residue is to be distributed among the heirs of the deceased according to
the law of the sect to which he belonged at the time of his death
 RULES
• Upon death all the assets and civil liabilities are devolved to
legal heirs. Criminal Liability dies with the death.
• During the life time of an ancestor a legal heir cannot claim any
estate as right. Birth right is not recognized.
• Whether the murder was intentional or by accident, any act
committed by the heir apparent which causes the death of his
ancestor, punishable under the law, forbids him to inherit the
ancestor’s property.
 RULES
• Illegitimate child is considered to be the child of the mother
only.
• Hence, it cannot inherit from the father, and neither can the
father inherit from it.
• If it is proved that a person is missing for 7 years and has not
been heard of, then the burden of proof of his life is on the
person to affirm it. (Section 124 of Qanoon e Shahadat Order
1984)
 RULES
• A person who changes into a different faith than Islam or an
apostate is not entitled to inherit the property of a deceased
Muslim under Islamic law.
• If there is none from the classes of heirs, the properties of the
deceased are ultimately inherited by the State. 
• ESCHEAT is right of a government to take ownership of estate
assets or unclaimed property
 SUNNI LAW

Deceased
SHARER

RESIDUARY

DISTANT KINDRED
 SHIA LAW

Deceased
SHARER
RESIDUARY
 DECEASED

DISTANT
QURANIC SHARERS RESIDUARY
KINDRED

HUSBAND DESCENDANTS
WIFE ¼, 1/8
½,1/4 DESCENDANTS ASCENDANTS
SONS
SONS OF DECEASED OF DECEASED
SONS, DAUGHTERS OF SON
DAUGHTER OF SON
Daughter`s
ASCENDANTS Children & False Grand
Father/mother
MOTHER 1/6, True
descendants
Children`s
FATHER 1/6 Father
1/3 Grandfather daughters & Descendants
descendants of parents
Descendants (daughter/mot
PATERNAL PATERNAL GRAND
Full
of father her side)
GRANDFATHER 1/6 MOTHER 1/6 Consanguine Sons and sons of full
Brother/ Brothers & & Consanguine
SIsters Sister Brother
FULL SISTER CONSANGUINE
Descendants of
2/3 SISTER ½, 2/3 Paternal Grand
father
UTERINE BROTHER UTERINE Full Sons of full & SUNNI
1/6, 2/3 paternal Cong paternal Consanguine
SISTER 1/6, 2/3 paternal uncles LAW
uncles Uncles
 DECEASED

HEIRS BY HEIRS BY MARRIAGE

CONSANGUINITY (HUSBAND/WIFE
(SAME FATHER)

CLASS 1 CLASS 2 CLASS 3

GRAND PARENTS PATERNAL UNCLES &

PARENTS HOW HIGH AUNTS
SOEVER SHIA LAW
CLASSES OF HEIRS
MATERNAL UNCLES
& AUNTS
CHILDREN/ BROTHERS &
OTHER LINEAR SISTERS & THEIR
DESCENDANTS DESCENDANTS CHILDREN OF PATERNAL
AND MATERNAL UNCLES &
AUNTS
 WILL

• 'Will' is a method by which a person may instruct, during

his/her lifetime, about the treatment of his/her properties
after his/her death.
• A person uses a Will when he/she wants his/her property to
be treated after his/her death, differently from the personal
law of inheritance, which is applicable to him/her.
 WILL SUNNI & SHIA LAWS
• Although a Will can be made orally or in writing, it is better to reduce it to writing to avoid
complications of proving it through evidence before courts in legal proceedings as it will be more
difficult to prove an oral Will if it is disputed.
• In Islamic law, the two major sects, 'Sunni' and 'Shia' have different rules for making Wills.
• A Sunni Muslim can dispose off a maximum of 1/3 of his/her estate through a Will. The rest of
the property has to be compulsorily divided among the legal heirs of a deceased Sunni Muslim.
• A Shia Muslim can dispose off more than 1/3 of his/her estate through a Will. If the Will is
made by a Shia Muslim with respect to more than 1/3 of the estate, then this Will shall not be
valid unless other legal heirs give their consent.
• Revocation of Will
– Will can be changed during the lifetime of a person who has made a Will.
– A Will cannot be changed, by a person making a Will, when that person is on his/her deathbed.
– A Will can be revoked during the lifetime of a person who has made a Will.
– A Will cannot be revoked by a person making a Will when he/she is on his/her deathbed.
 POWER OF ATTORNEY
• General Power of Attorney means that Attorney may perform more than
one job on behalf of the Principal and all his acts will be binding on the
Principal as done by him and under his authority
• Irrevocable. If the Power of Attorney is executed for consideration then it
cannot be unilaterally revoked.
• Special Power of Attorney
• Registration Requirements
• Death of Principal
• Pecuniary Liability incurred
• Precautions
 CREATION OF CHARGE
MORTGAGE
• A mortgage is the transfer of an interest in specific immovable property
for the purpose of securing the payment of money advanced or to be
advanced by way of loan, an existing or future debt or the performance
of an engagement which may give rise to a pecuniary liability.
CHARGE AS PER SECTION 100 OF TPA
• Where immovable property of one person by act of parties or operation
of law made security for the payment of money to another, and the
transaction does not amount to a mortgage, the latter person is said to
have a charge on the property; and all the rights and liabilities which
apply to a simple mortgage shall, so far as may be, apply to such
charge.
 TYPES OF MORTGAGE
1. Simple Mortgage also known as Registered Mortgage.
2. Mortgage by conditional sale.
3. Usufructurary mortgage.
4. English Mortgage
5. Mortgage by deposit of title deed (Equitable Mortgage).
6. Anomalous Mortgage.
 SIMPLE MORTGAGE
• Where, without delivering possession of the mortgaged
property, the mortgagor binds himself personally to pay the
mortgage money, and agrees expressly or impliedly, that, in the
event of his failing to pay according to his contract, the
mortgagee shall have a right to cause the mortgaged property to
be sold and the proceeds of sale to be applied, so far as may be
necessary, in payment of the mortgage-money, the transaction
is called a simple mortgage and the mortgagee a simple
mortgagee
 REGISTERED MORTGAGE HOW CREATED
• Registered Mortgage is created by executing mortgage deed (being a contract between bank and
customer). This agreement is registered with the registrar of assurances and requisite stamp fee and
registration fee as per provincial stamp duty schedule, is paid.
• Following steps are involved.
– Stamp Papers as per required stamp duty
– Printing of stamp papers as per standard format of IB-22/23
– Appointment of Local Commission or Presentation of deed with both the parties before sub-registrar.
(whereapplicabale)
– Signature of the both parties
– Two Witnesses
– Report of Local Commission (in case of appointment of local commission.
– Submission of Documents to Registrar
– Rectification of any Objection raised by Registrar
– Re-submission to Registrar
 REGISTERED MORTGAGE HOW CREATED
• Formalities pertaining to photo registrar.
• The date of making of a document needs not be the date of execution and subsequent
registration. As per section 49 of the Registration Act, the document after its
registration shall be deemed to be effective since its execution.
• Registration of deed by the registrar and recording the same in Book 1. The registrar
shall affix following details on every document after registration,
– Document Number.
– Book No (which is always Book 1)
– Volume No.
– Sub-Volume No (if used).
– Date of Registration.
– Stamp of Registration Authority.
– Signature of Registration Authority.
 EQUITABLE MORTGAGE
• “Where a person delivers to a creditor or his agent documents of title to immoveable property with intent
to create a security thereon, the transaction is called a mortgage by deposit of title deeds”. (Section 58-f of
TPA 1882).
• Equitable mortgage is created by mere deposit of title deed, however to further secure the interest of the
bank a “memorandum” of deposit of title deed (MODTD) is sought from borrower.
– The equitable mortgage is created when the documents are deposited with the bank with the
intention to create equitable mortgage for seeking loan.
– The memorandum of deposit of title deeds (MODTD/IB-24) is executed to recite the
arrangements made.
– The IB-24 needs not be compulsorily registered with registrar of assurances.
– The date of MODTD/IB-24 should be same as of IB-6 (Agreement for Financing).
– The date of IB-6 and IB-24 should ideally be the date of date of disbursement (allowing limit
thoughtless of the fact that first withdrawal is made afterwards).
NOT ALL REGISTERED DOCUMENTS
ARE TITLE DEEDS
(THERE IS NO LAW FOR LAND TITLING IN PAKISTAN- WE ARE USING
REVENUE GATHERING SYSTEMS FOR LAND TITLING)
 WHAT CAN BE CONVEYED
(TANSFER OF PROPERTY ACT 1882)
• What may be transferred. Property of any kind may be transferred.
• An easement cannot be transferred apart from the dominant heritage.
Nothing in this section shall be deemed to authorize a tenant having an
transferable right of occupancy to assign his interest. (Section 6 of TPA
1882)
• The seller is bound to disclose to buyer any material defect in the property
or in the seller's title thereto of which the seller is, and the buyer is not,
aware, and which the buyer could not with ordinary care discover.
(Section 55 (1)(a) of TPA 1882)
• Latin maxim, nemo dat quod non habet, which means “no one can
transfer a better title than what he himself possesses”
 DISCLAIMERS OF
REGISTRATION ACT 1908
• “Registering officer not liable for thing bona fide done or
refused in his official capacity. No registering, officer shall be
liable to any suit claim or demand by reason of anything in
good faith done or refused in his official capacity”. (Section 86
of Registration Act 1908)
 DISCLAIMERS OF REGISTRATION RULES 1929
Registering officers not concerned with validity of document.---
• “Registering officers should bear in mind that they are in no way concerned with the
validity of documents brought to them for registration, and that it would be wrong for them
to refuse to register on any such grounds as the following, e.g., that the executant was
dealing with property not belonging to him, or that the instrument infringed that rights of
third persons not parties to the transaction, or that the transaction was fraudulent or opposed
to public policy. These and similar matters are for decision, if necessary, by competent
Courts of law and registering officers, as such, have nothing to do with them. If the
document is presented in a proper manner by a competent person at the proper office within
the time allowed by law and if the registering officer is satisfied that the alleged executant is
the person he represents himself to be, and if such person admits execution, the registering
officer is bound to register the document without regard to its possible effects”
• (Rule 135 of Registration Rules 1929
 TAKE AWAY

Latin maxim, “Caveat Emptor”

means
“Buy at your own risk”
 USES OF LANDS
• URBAN PROPERTIES
• AGRICULTURAL PROPERTIES
• COMMERCIAL PROPERTIES
• INDUSTRIAL PROPERTIES
 BUILDING AUTHORITIES
TOWN PLANNING, BUILDING CONTROLS
&
LAND HOLDING RIGHTS
 SINDH-LAND DEVELOPMENT AUTHORITIES
• Sindh Building Control Authority (SBCA)
• Karachi Development Authority (KDA)
• Malir Development Authority (MDA)
• Lyari Development Authority (LDA)
• Hyderabad Development Authority (HAD)
• Sehwan Development Authority (SDA)
• Sindh Kuchi Abadi Authority
• Defence Housing Authority

 Defence Housing Authority (Lahore,
Gujranwala, Rawalpindi, Bahawalpur)
 Lahore Development Authority (LDA)
 Rawalpindi Development Authority (RDA)
 Gujranwala Development Authority (GDA)
 Faisalabad Development Authority (FDA)
 Multan Development Authority (MDA)
DEVELOPMENT AUTHORITIES IN
PUNJAB
Multan, Holding of land and allotment. Land Development
No other Building laws apply on DHA.
Holding of land and allotment/ permeant transfer of
proprietary rights (now abandoned). Land Development
Holding of land and allotment. Land Development
Holding of land and allotment. Land Development
Working under THE PUNJAB DEVELOPMENT OF
CITIES ACT, 1976
Holding of land and allotment. Land Development
Working under THE PUNJAB DEVELOPMENT OF
CITIES ACT, 1976
Holding of land and allotment. Land Development

 Bahawalpur Development Authority (BDA)
 Sargodha Development Authority (SDA)
 D.G. Khan Development Authority (DGKDA)
 Koh-e-Suleman Development Authority (KeSDA) (previously exercise control over land-use, spatial planning, land-subdivision,
Fort Munro Development Authority)
 Thal Development Authority
DEVELOPMENT AUTHORITIES IN
PUNJAB
Holding of land and allotment. Land Development
Holding of land and allotment. Land Development
Working under THE PUNJAB DEVELOPMENT OF CITIES ACT,
1976
Holding of land and allotment. Land Development
land development and zoning by public and private sectors for
purposes of commerce, markets, shopping, residential, recreation,
parks, entertainment, passenger and transport freight and transit
stations, commercialization and approval of private housing
schemes;
• It extends to the districts of Mianwali, Bhakkar, Muzaffargarh,
Layyah and Khushab.
• The Authority may frame a scheme or schemes for the
development of any local area or part thereof
• Holding of land and allotment. Land Development
• The land which was not shown as banjar jadid, banjar qadim or
ghair mumkin in Khasra girdawari of Rabi 1951 shall not be
acquired. Land holding less than 15 acres shall not be acquired.
 KP DEVELOPMENT AUTHORITIES
Khyber Pakhtunkhwa Housing Authority
(Policy making and overseeing body)
Peshawar Development Authority (PDA)
Abbottabad Development Authority (ADA)
Bannu Development Authority (BDA)
• Established under Khyber Pakhtunkhwa Housing
Authority Act, 2005
• To facilitate affordable housing schemes
• formulate provincial land use policy.
• As per Khyber Pakhtunkhwa Model Building Bye-
laws, 2017, residential plots are “allotted” under the
schemes made by Land Development Authorities.
• Allotment in schemes
• Approval of private schemes societies.
• Building controls
• Allotment in schemes
• Approval of private schemes societies.
• Building controls
• establishing Townships Schemes and
• to execute developmental works -
 KP LAND DEVELOPMENT AUTHORITIES
D.I. Khan Development Authority • Building Control & Development
• Allotment of schemes made by itself

Galiyat Development Authority • No Housing Scheme is allowed in the private sector as

per Galiyat Development Authority Building By Laws
2003.
• Plots shall be allotted and transferred through transfer
deed form.

Karak Development Authority • Building Control & Development

• Allotment of schemes made by itself

Kaghan Development Authority • Building Control & Development

• Allotment of schemes made by itself
• Licence for Shops
• Lease of some of the buildings

Kohat Development Authority • Building Control & Development

• Allotment of schemes made by itself
 KP LAND DEVELOPMENT AUTHORITIES

Mardan Development Authority • Building Control & Development

• Allotment of schemes made by itself

Mansehra Development Authority • Building Control & Development

• Allotment of schemes made by itself

Swabi Development Authority • Building Control & Development

• Allotment of schemes made by itself

Swat Development Authority • Building Control & Development

• Allotment of schemes made by itself

Kalam Development Authority To be developed under KP Urban Area Development

Ordinance 2020

Lower Dir Development Authority To be developed under KP Urban Area Development

Ordinance 2020
BALUCHISTAN DEVELOPMENT AUTHORITIES
Balochistan Special Development Board (For Low
Cost Housing Schemes)
Established under Balochistan Special Development
Board Act, 2017
Baluchistan Development Authority
• To provide units through open ballot system which
shall be not less than 120 square-yards for Low
Cost Housing and 80 square-yards for Shelter
Homes,
• The units allocated shall not be rented and
transferred for a period of fifteen years from the
date of allocation of such unit and no sale deed or
power of attorney shall be registered for transfer of
units; to ensure that the target group may benefit
from this facility as end-user;
• to issue instructions to the full fledge Balochistan
Building Control Authority on its constitution/
formation, but presently under QDA or MCQ
• To control and regulate construction, provision of
amenities, town planning, building control in entire
province.
• Allotment of Industrial and Residential Plots by
Development Authorities.
 BALUCHISTAN –LAND DEVELOPMENT AUTHORITIES

Quetta Development Authority • For Quetta City & Outskirts

(Established through Quetta Development Authority • Allotment & Lease in certain types of properties
Ordinance 1978)

Gawadar Development Authority • Allotment of Plots

• Building controls
DIVISIONS OF PAKISTAN &
DOCUMENTS
AUTHORITIES HOLDING LAND RIGHTS IN
KARACHI
 DOCUMENTS USED IN KARACHI
Title Documents
A. Free hold properties (Rural Areas): D. Cooperative Housing Society/ Industrial
1. Ownership Certificate duly issued by the Taluka Estates:
Mukhtiarkar or Sanad (L-20) 1. Allotment letter
2. Deh Form-VII/Mutation 2. Share Certificate
3. Deh Form-II /Mutation 3. Lease Deed
4. Aks Shajra/site plan 4. Extract of the Property
B. Free Hold Property (Urban Areas): OTHER DOCUMENTS
5. P.T.O./P.T.D/Sale Deed/Gift Deed 1. N.E.C. (Search Certificate) from the date of
6. City Survey Extract/Deh Form-II (Mutation) execution of lease deed
7. Statement issued by the Legal Heirs along with copy 2. Approved Building Plan with approval
of statement from City Survey in cases of inheritence letter from SBCA
C. Lease Hold Property: 3. Approved Site/lay out Plan from
8. Lease Deed/Sub-Lease Deed/Sale Deed/Gift Deed KDA/MDA/LDA
9. Deh Form-II (Mutation) (in case of Gothabad scheme 4. Clearance Certificate from MEO (in case of
MDA/LDA) Cantt)
10. Allotment order in case of Gothabad schems, Katchi 5. Approved Building plan from MEO/DHA
Abadi schemes in case of Cantt/ DHA Properties
D. Cantonment Areas: 6. Permission to Mortgage/Sale ( in lease or in
1. Lease Deed allotment where first document does not
2. Extract of the Property grant right)
3. Search Certificate
 Hyderabad/ MirpurKhas Division
Title Documents Other documents required
A. Free hold properties (Rural Areas): 1. N.E.C.
1. Ownership Certificate duly issued by the 2. Approved Building Plan
Taluka Mukhtiarkar or Sanad with approval letter
2. Deh Form-VII
3. Approved Site Plan
3. Deh Form-II (Mutation)
B. Free Hold Property (Urban Areas): 4. Aks-e-Shajra
4. P.T.O./P.T.D/Sale Deed/Gift Deed 1. N.E.C.
5. City Survey Extract/Deh Form-II (Mutation) 2. Approved Building Plan with
6. Statement issued by the Legal Heirs along approval letter
with copy of statement from City Survey in 3. Approved Site Plan
cases of heir ship
4. N.E.C. from the date of execution of
C. Lease Hold Property:
lease deed
7. Lease Deed/Sub-Lease Deed/Sale Deed/Gift
5. Approved Building Plan with
Deed
approval letter
8. Deh Form-II (Mutation)
6. Approved Site Plan
9. Allotment order
7. Clearance Certificate from MEO
D. Cantonment Areas:
8. Approved Building Plan with
1. Lease Deed approval letter
2. Extract of the Property 9. Approved Site Plan
 Sukkur/ Larkana/ Jacobabad/ Dadu/
Khairpur
Title Documents Other documents required
Urban Area
1. Sale Deed 1. N.E.C.
2. P.T..D/P.T.O 2. Permission to Assign
3. F.T.O. 3. Approved Building Plan
4. Gift deed with approval letter
5. Lease Deed/Sub-lease deed
6. City Survey Extract
7. Deh Form-II
8. Deh Form-VII
9. Mutation

Rural Area
10. Owner Ship Certificates issued by 4. N.E.C.
Union Council Authorities 5. Approved Building Plan
11. Owner Ship Certificate issued by 6. Development Certificate
Mukhtiarkar concerned issued by Union Council
12. Deh Form-II
 Quetta/ Bolochistan
Title Documents Other documents required
A. Lease hold properties
1. Lease Deed 1. Fard Jamabandi Record
2. Sale Deed (in case of subsequent transaction) 2. Sale Deed (in case there is subsequent
3. Mutation transaction (Registered)

B. Free Hold Property (Rural & Urban Area) 3. Permission to assign

3. Sale Deed (Registered) 4. N.E.C. from the date of lease deed
4. Mutation in favor of Applicant 5. Approved Building Plan
5. Fard
6. Jamabandi Record
C. Free Hold Property (with no sale deed):
7. Mutation in Favor of applicant 1. Building Plan with Building Permit
8. Fard 2. N.E.C.
9. Jamabandi Record 3. Aks e Shajra
4. Sakni Certificate
D. Lease Hold cases of Cantonment Area
10. Lease Deed (Registered)
11. Sale deed (In case of a subsequent Transaction) 5. Building Plan with Building Permit
6. N.E.C.
E. Lease Hold cases where land leased by 7. Aks-e-Shajra
Municipal/Town Committee, Local Govt,
Prov.Govt. 8. Site Plan
12. Jamabandi Record 9. Non Encumbrance Certificate
10. Building Plan with Building Permit
 Multan/ Bahawalpur Division
Title Documents Other documents required

(a) Free hold properties (Urban) 1. Aks-e-Shajra

1. Sale Deed/Gift Deed/Exchange Deed/Court 2. Approved Building plan +
Decree Approval letter
2. Court certified copy of Mutation
3. Copy of record of Right (Fard Malkiyat)
1. Clearance certificate from Excise
(b) Urban area land where no record is & Taxation Department
available in Revenue Department: 2. Building plan + Approval letter
1. P.T.D. 3. Indemnity Bond regarding
2. Confirmation of P.T.D. finality of P.T.D.
3. PT-I
4. Building Plan + Approval letter
5. N.E.C. from the date of Lease
(c) Lease Hold Property: Deed
4. Lease Deed/Sub Lease Deed 6. Approved Building Plan
5. Extract from GLR
 Faisalabad/ Sargodha Division
Title Documents Other documents required

A. Free Hold property (Urban Area) 1. Aks-e-Shijra

1. Sale deed, 2. Approved Building Plan with
2. Gift deed (Regd) approval letter N.E.C.
3. Mutation 1. Approved Building Plan with approval
4. Fard Jamanbandi letter
B. Evacuee Property (Urban Area) 2. Possession slip
5. PTD/PTO 3. Approved Building Plan with approval
6. Confirmation of PTD (Permanent Transfer deed) letter
C. FDA/Punjab Govt. Housing Scheme (Urban)
7. Sale Agreement (Regd) 4. Approved Building Plan with approval
8. Allotment order letter
9. Transfer letter (in case of transfer of plot)
5. Approved Building Plan with Approval
D. Cantonment Board (Urban Area)
letter from District Council/Union Council
10. Lease deed
concerned
11. MEO letter
12. Copy of G.L.R.

E. Rural Area:
13. Sale Deed
14. Mutation or Oral Mutation
15. Jamanbandi
16. Demarcation Certificate
 Lahore/Gujranwala Division
Title Documents Other documents required for investment
A) Free Hold Properties: 1. Akse-Shujra
1. Registered Sale Deed 2. Building plan with
2. Certified copy of Mutation approval letter
3. Jamabandi

B) Government Schemes: 1. Possession order

4. Registered Sale Agreement/Sale Deed 2. Site Plan
5. Transfer letter/Allotment letter 3. Building Plan with approval
letter

C) Lease Hold & Contentment Schemes: 4. Site Plan

6. Registered Lease deed/Sub-Lease 5. Building Plan with approval
7. General Land Register (Certificate) letter

(d) DHA/ Societies

8. Allotment letter
9. Site Plan
10. Bylaws
 Islamabad (Capital Area)Other cities of Islamabad

Title Documents Other documents required for investment

Allotment Letter/Transfer order Permission to Assign
1. Site Plan/ Layout Plan
After completion of house a Conveyance 2. Demarcation Certificate
Deed is executed between CDA and 3. Approved Building plan
Allottee along with approval letter

a) Free hold properties (Urban 4. Possession order/slip

1. Registered Sale deed/Gift Deed
2. Last Jamabandi, or city survey record
3. Mutation or sakni certificate from 5. Akse Shajra duly
Tehsildar if plot is Shamile Abadi Area demarcated
6. Approved Building Plan
b) Free hold property (Rural) 7. Co-sharer Affidavit (in case
The following documents are required
of co-sharer)
in addition to above documents:
1. Permission from Tehsildar
 Islamabad (Capital Area)Other cities of Islamabad Zone
(…….. Contd…..)

c) Lease hold property of Cantonment Area

1. Lease deed/Sub Lease duly registered
2. GLR (General Land Register)

d) Evacuee Property:
3. Permanent Transfer Deed
4. PT-1
5. Subsequent Transfer
6. Possession order
7. Site Plan of Plot
8. Approved Building Plan
9. Letter of approval of the building plan
e) DHA/ Societies
10. Allotment letter
11. Site Plan
12. Bylaws
 Peshawar Division/ KPK

Title Documents Other documents required

A. Lease Hold Properties: 1. Approved Building

1. Sale Deed Plan with approval
2. Lease Deed
3. Gift Deed letter
4. Permanent Transfer Deed in 2. Approved Site Plan
case of Evacuee Property
(PTD)
5. Mutation Certificate

B. Free Hold Properties: 1. Certificate of Assurance by

6. Last Jamabandi or City Collector
Survey Extract 2. Aks-e-Shajra
7. Sale Deed (in case of 3. Building Plan
purchase)
8. Mutation
 Abbottabad/Hazara Division/ Northern Areas

Title Documents Other documents required

A. Lease Hold Properties: 1. Site plan of the plot

1. Lease deed or agreement for sale/Sale 2. Approved Building Plan with
deed approval letter

B. Free Hold Property: 3. Aks-e-Shajra

2. Mutation 4. Site plan
3. Last Jamabandi 5. Approved Building Plan with
4. Sale deed (in case property is approval letter.
purchased by applicant)

C. Un-Settled Area of Northern

Areas: 6. Approved Building Plan with
1. Girdawri approval letter
2. Sale Deed 7. Aks Shajra
 GILGIT BALTISTAN
• Land tenure system in Gilgit-Baltistan (GB) is a mosaic of
formal and informal patterns. Broadly it can be categorized into
– Private land (Through Settlements under Land Revenue 1967)
– Private Land (under‫ن‬ Nautor-meaning grant of waste land for
subsistence) ‫)) و طور‬
– Khalisa land (state land),
– Government land (exclusively owned by the State),
– Shamilat-E-Deh (community lands)
– Charagahs (pastures).
• Although various exercises to prepare land records have been
taken in hand since 1887 to bring lands in the formal fold, yet a
larger part has remained unsettled till today.
 TYPES OF LANDS
Private Land:
• In Gilgit-Baltistan, private lands are taken as lands in which some
individual or families enjoy exclusive rights of use. In settled areas,
such rights are recognized by an entry in Records-of-Rights/
subsequent periodical records. It could have been acquired as
hereditary, by sale, gift or otherwise. A good proof of such a title can be
Fard (copy of entry in periodical record) or mutation. In unsettled areas
these rights are being regulated by customary rules and possession
Khalisa Land
• These are government lands which have either been entered as Khalisa
land in revenue record in settled areas or in the unsettled areas of
former States, political District and Agency of Chilas and Darel/ Tangir.
It includes areas which had never been under the possession of
anybody or had not been allotted to any community or a zamindar. It
also includes all such “Berun-e-Line” area outside the boundary of a
village whether in a settled or unsettled area.
 TYPES OF LAND
Community/ Customary Land
• Customary land is land whose allocation and use is
governed by traditional tribal laws. A community, as a
whole, gets rights in such lands. Any use, whatsoever, is
subject to general approval of all or at least nominated
representatives of that community.
Pasture Land:
• These are range lands and included in the category of
Khalisa lands with some grazing and right of usage to
neighbouring communities. To a pasture more than one
community do have grazing rights. The management of
these pastures is carried out by the Departments of
Agriculture and Forest in Gilgit-Baltistan.
 GB ORDER 2009
According to Fourth Schedule (Assembly Legislative List) of GB (Empowerment
and self-Governance) Order, 2009, GBLA is mandated to legislate on land
matters; especially security of tenure and titles, as shown hereunder;
• Land, that is to say, rights in or over land; land tenures, including the relation of
landlord and tenant, and the collection of rents; transfer, alienation and
devolution of agricultural land; land improvement and agricultural loans;
colonization.
• Taxes on agricultural income and on the value of agricultural land.
• Duties in respect of succession to agricultural land.
• Estate Duty in respect of agricultural land.
• Taxes on lands and buildings
YET NO LAW MAKING IS CONDUCTED BY GB ASSEMBLY SO FAR.
 RECOVERIES
LEGAL STRATEGY & FORECLOSURE
 FOR MICRO FINANCE BANKS
MICROFINANCE INSTITUTIONS ORDINANCE, 2001

• PART-1: APPLICATIONS OF OTHER LAWS

• (2) Save as otherwise provided in this Ordinance, the Banking Companies Ordinance and any other
law for the time being in force relating to banking companies or financial institutions shall not
apply to microfinance institutions licensed under this Ordinance and a microfinance institution
shall not be deemed to be a banking company for the purposes of the said Ordinance, the State
Bank of Pakistan Act, 1956 (XXXIII of 1956), or any other law for the time being in force relating to
banking companies.

• EFFECT
• Recoveries of the loans obtained from the Microfinance Institutions cannot be made under the
Recovery Ordinance 2001 through Banking Court.
• Recovery is made through summary suit under Order XXXVII(37) of Civil Procedure Code 1908
(CPC)
 ORDER 37 CPC
• RULE 2.
• Institution of summary suits upon bills of exchange, etc: - (1) All suits upon bills of exchange hundies or
promissory notes, may, in case the plaintiff desires to proceed hereunder be instituted by presenting a plaint in
the form prescribed; but the summons shall be in Form No.4 in Appendix B or in such other form as may be from
time to time prescribed.
• (2) In any case in which the plaint and summons are in such forms respectively the defendant shall not appear
or defend the suit unless he obtains leave from a Judge as hereinafter provided so to appear and defend; and in
default of his obtaining such leave or of his appearance and defence in pursuance thereof, the allegations in the
plaint shall be deemed to be admitted and the plaintiff shall be entitled to a decree –
• RULE 7
• Procedure suits: Save as provided by this Order the procedure in suits hereunder shall be the same as the
procedure in suits instituted in the ordinary manner.
 STEP IN RECOVERY AND APPLICABLE LAW
STEP
Illegal possession/sale/ alienation of Mortgaged Property
Sale of moveable (pledged) property
Sale of Moveable (other than pledged) property
Sale of Immoveable Property
Filing of civil banking suit
Filing of criminal complaint in case of dishonored
cheque
Sale of immoveable property
Auctions and objection
LAW
Section 20 FIO 2001.
Section 176 of Contract Act
Section 19 of FIO 2001 read with FIO Rules 2018
after decree
 Section 15 of FIO 2001 read with FIo rules 2018
(before decree- from banking Court)
 Collector/ Tehsildar/ Mukhtiarkar under Land
revenue Act 1967
 Section 9 FIO 2001
 For NAPHDA related properties- With Adjudicator.
FIO 2001 (section 20)
 FIO 2001 (section 19) after decree
 Collector/ Tehsildar/ Mukhtiarkar under Land
revenue Act 1967
FIO 2001 Section 19 read with Section 15
 BANKING COURT PROCEEDINGS
• Plaint (section 9) with applications under section 16 and section 151 of CPC
• Permission to Leave & Appear to Defend (PLA). (section 10)
• Interim Decree under Section 11/ Interim or Final Decree under section 14
(mortgage based)/PLA allowed
• If PLA allowed then following steps will be observed. If decree is issued it will
convert into execution.
• Framing of Issues
• Questions of Fact
• Questions of Law
• Arguments
• Witnesses
• Decree
• Appeal
• District Court
• Single Bench High Court
• DB High Court (Intra Court Apeal)
• Supreme Court
• Execution. (section 19) with or without intervention of court.
• Criminal Complaint under section 20
 Recovery Modes
• Section 4(vii) of LACIP ACT 1973 reads “If the land owner fails to repay the amount of the loan or
advance in accordance with the terms of his agreement with the bank, the bank may, without prejudice
to any other legal remedy available to it, apply to the collector for the recovery of the amount in
default as an Arrear of Land Revenue and thereupon all the provision of the Revenue Recovery Act,
1890 (I of 1890) shall apply to the recovery of the amount in default as they apply to the recovery of an
Arrear of Land Revenue.”
• Action will be taken by the Revenue Authorities for Recovery of the dues as Arrears of Land Revenue
under Provisions of the W.P. Land Revenue Act, 1967 as under:-

• Section– 81 A notice of demand to be issued by the Revenue Officer for payment of the dues recoverable
as Arrears of Land Revenue within 15 days. 
• Section– 82 After lapse of 15 days of the notice of demand u/s 81, a “Further Notice” is issued to the
defaulter, and after lapse of 30 days of service of such further notice, the Revenue Officer may issue a
Warrant of Arrest directing a particular Officer to Arrest and present the defaulter before the Revenue
Officer.
 RECOVERY MODES
• Section– 83 Moveable propriety and uncut and un gathered crops may be distained and
sold by order of the Revenue Officer.
• Section– 84 Having exhausted the remedies by way of Arrest and sale of moveable
property, the District Officer Revenue (DOR) by an order may transfer and hand-over
possession of Agri-land of defaulter to any solvent Land Owner of the Estate for a period
not exceeding 15 years. The transferee of the Land will now become liable for making
payment of the relative arrears.
• Section– 86 When arrears of land revenue are due for more than one year, and foregoing
processes are not deemed sufficient, the DOR may, in addition to or instead of all or any of
these processes, order the annulment of existing assessment of the Agri-land in respect of
which the arrears are due.
• Section– 87 DOR shall issue a proclamation in respect of every attachment or annulment
of assessment of a land made on account of Arrears of Land Revenue. In this case, all
payments due from any person to the defaulter on account of Rents etc of the land will be
payable to the DOR.
• Section– 88 When all the foregoing processes are deemed to be insufficient, the DOR,
with prior approval of the Board of Revenue, may sell the Agri-land of the defaulter towards
satisfaction of the Arrears of Land Revenue.
• Section– 90 If the arrears can’t be recovered by way of the above processes, the collector
may effect the recovery by proceeding against other property, if any owned by the defaulter
and proclamation shall be issued prohibiting transfer or further charging of such property.
.

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