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Search Results: Categories: Correction of Entries in the Record of Rights (1 found)
Javed Iqbal and others VS Mst Farhat Iqbal (decd) thr LRs
Citation: Pending
Case No: C.A.852/2025
Judgment Date: 06/04/2026
Jurisdiction: Supreme Court of Pakistan
Judge: Justice Shahid Bilal Hassan
Cancellation of Sale DeedCivil LawContract LawCorrection of Entries in the Record of RightsPower of AttorneySuit for Declaration
Summary: (a) Contract Act (IX of 1872)---
----Ss. 211 & 215---Attorney and principal---Fiduciary obligation---Transfer of principal’s property by attorney in favour of his own sons---Validity---Attorney, acting under registered general power of attorney, transferred principal’s inherited property in favour of his own sons through registered sale deed and mutation---Principal subsequently revoked power of attorney and sought cancellation of sale deed and mutation on ground of misuse of authority, fraud and absence of consent---Held, that attorney stands in fiduciary relationship with principal and cannot validly transfer principal’s property in favour of himself or his close relatives without prior permission, approval and consent of principal after full disclosure of material circumstances---Transfer in favour of sons of attorney, without proof of express consent of principal, was legally unsustainable.
Cited Cases:
• Fida Muhammad v. Pir Muhammad Khan PLD 1985 SC 341
• Maqsood Ahmad v. Salman Ali PLD 2003 SC 31
• Jamil Akhtar v. Las Baba PLD 2003 SC 494
• Muhammad Ashraf v. Muhammad Malik PLD 2008 SC 389
• Allah Bakhsh v. Muhammad Riaz PLD 2025 SC 63
(b) Power of attorney---
----General power of attorney---Authority to alienate immovable property---Scope---General power of attorney does not, merely by reason of being described as “general”, automatically include authority to sell or alienate property of principal---Such authority must be contained in a clear and specific clause, and even then Court must examine whether principal’s knowledge, intention and consent are clearly established---Held, that implied authority to alienate property is not readily deducible from vague or general words, particularly where principal alleges fraud or misrepresentation.
Cited Case:
• Fida Muhammad v. Pir Muhammad Khan PLD 1985 SC 341
(c) Power of attorney---
----Attorney purchasing or transferring property for his own benefit or for benefit of close relatives---Special permission of principal---Requirement---Attorney transferred suit property in favour of his own sons---Held, that where attorney intends to deal with principal’s property for his own benefit or in favour of close fiduciary relations, he must obtain special permission/prior approval of principal---Failure to obtain such consent entitles principal to repudiate transaction---Burden lies heavily upon attorney and beneficiaries to establish valid consent and lawful authority.
Cited Cases:
• Maqsood Ahmad v. Salman Ali PLD 2003 SC 31
• Jamil Akhtar v. Las Baba PLD 2003 SC 494
• Muhammad Ashraf v. Muhammad Malik PLD 2008 SC 389
• Allah Bakhsh v. Muhammad Riaz PLD 2025 SC 63
(d) Sale by attorney---
----Transfer in favour of attorney’s sons---Absence of express written consent---Effect---No cogent or reliable evidence was produced to prove that principal had granted express consent or prior approval for transfer of suit property in favour of attorney’s sons---Held, that in absence of such consent, transaction was hit by settled principles governing fiduciary obligations of attorney and could not be sustained.
(e) Sale transaction---
----Payment through cheque---Proof of sale consideration---Evidentiary value---Attorney/brother relied upon alleged cheque payment in favour of principal/sister to support sale transaction---Held, that payment through cheque, by itself, was not conclusive proof of valid sale transaction, particularly where no agreement to sell or independent corroborative evidence existed to show lawful bargain---Mere production of payment, without proof of underlying transaction and principal’s informed consent, did not satisfy legal standard required to validate alienation of immovable property.
(f) Fraud and misuse of authority---
----Power of attorney executed due to close familial relationship---Subsequent sale in favour of attorney’s sons---Material alteration in written statement regarding consideration---Effect---Principal had executed power of attorney in favour of appellant due to close familial relations for management of suit property---Attorney later transferred property in favour of his sons---Appellants initially pleaded purchase for valuable consideration, but later materially altered alleged sale consideration in amended written statement without explanation---Held, that surrounding circumstances, fiduciary relationship, absence of proven consent and inconsistency regarding consideration supported conclusion that authority had been misused and transaction was not legally sustainable.
(g) Civil suit---
----Cancellation of sale deed and mutation---Attorney’s unauthorized transfer---Trial Court decree restored by High Court---Supreme Court refusal to interfere---Trial Court decreed suit for cancellation; appellate Court reversed; High Court restored Trial Court decree---Supreme Court held that core question was whether attorney could validly transfer principal’s property to his own sons without express written consent and whether such consent had been proved---No reliable evidence of prior approval or express consent having been produced, High Court rightly restored decree of Trial Court---Appeal was dismissed.
Disposition: Appeal was dismissed. Supreme Court upheld High Court judgment dated 06.10.2025 whereby decree of Trial Court cancelling the impugned sale deed and mutation was restored. No order as to costs.
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