PROVINCE OF PUNJAB vs DISTRICT JUDGE S — 2022 CLC 908 LAHORE-HIGH-COURT-LAHORE

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PROVINCE OF PUNJAB VS DISTRICT JUDGE S.12(2)---Transfer of Property Act (IV of 1882), S. 54---Specific Relief Act (I of 1877), S. 42---Suit for declaration and permanent injunction was filed by respondent against another respondent contending that said respondent being owner of lands in question sold the same to the said respondent and received total consideration---Respondent filed consenting written statement and also recorded statement that a compromise had been effected between the parties; accepted the suit of said another respondent as correct---Trial Court decreed the suit in favour of the respondent---Petitioner/Province filed application under S.12(2) of Civil Procedure Code, 1908 contending that both the respondents collusively got decreed the suit just to evade the payment of stamp duty etc.; that suit property was falling within the jurisdiction of the Municipal Committee and the same could not be alienated without a registered deed; that said respondents had played fraud; that the Court had no jurisdiction to entertain the suit for declaration of respondents who did not possess any title---Held, that since no title document existed, the alleged sale between respondent was not completed---One respondent sought declaration of his title on the basis of agreement to sell by claiming himself the owner of suit property instead of filing suit for specific performance of an agreement as he could not seek declaration merely on the strength of said document, therefore, the form of the suit was incorrect---After Notification No.15246/74/ 2237/LR-V, dated 30-12-1974 issued by Provincial Government making S.54 Transfer of Property Act, 1882, applicable in the whole Province, no oral sale could take place and transfer of immovable property worth Rs.100/- or more could only be transferred by a registered instrument of transfer---Such requirement of compulsory registration was restricted only to Municipalities/Notified Areas---As far the agreement to sell of immovable property was concerned, sale of such property would take place in terms settled between the parties and rights arising out of that agreement were to be sought through its specific performance---Declaratory decree procured by any person on the basis of agreement to sell was void ab-initio, therefore, the same was of no avail to him to use as a plank---If decree was challenged on the basis of fraud, misrepresentation or without jurisdiction, the court had first to see whether the suit was maintainable under the law and then to see whether any fraud/misrepresentation was made out from the available record---Transfer of title under the garb of consent decree on basis of agreement to sell was void ab-initio---One of the Respondents in the garb of declaratory suit, intended to save dues/duties fraudulently---Respondents had entered into compromise dishonestly, by concealing the true facts from the Court, deliberately/knowingly to get the suit decreed---Constitutional petition was accepted accordingly.

PROVINCE OF PUNJAB vs DISTRICT JUDGE S — 2022 CLC 908 LAHORE-HIGH-COURT-LAHORE

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