Best Pakistani Lawyers

Property Rights

The laws that regulate property rights in Pakistan and are relevant to our research questions are summarised in the section below.

  • (i) Land Revenue Act, 1967[6] – Each province has its own set of laws that emanate from the Land Revenue Act, 1967. This is the basic law that deals with the records of rights and transfers through mutations. Each of the provinces has adopted this law, albeit with minor changes.
  • (ii) Transfer of Property Act, 1882[7] – The general law describing and regulating matters of property transfer (lease, sale, mortgage, etc.) is the Transfer of Property Act, 1882.
  • (iii) Registration Act, 1908[8] – The general law that regulates the registration of documents is the Registration Act, 1908. This law is applicable in our context, as whenever property rights are transferred or mutated, often requisite documentation needs to be registered(particularly in urban areas).
  • (iv) Local and Special Laws – These local and special laws include laws governing housing societies whether they fall under the private category, cooperative societies, mutual societies, and cantonment boards, etc.

Some of the above-mentioned laws are more relevant in a rural context, whereas others are more applicable in urban areas. Some laws have ‘overlapping applications’ but on a general and practical levels, laws governing immovable property in rural areas are different from the urban areas’ immoveable property laws.[9] As we move forward and discuss the processes involved, this difference will become more apparent.

 

PROPERTY RIGHTS: WHAT ARE THEY?

Defining, allocating, and protecting property rights is an essential tool to form the basis of efficient and effective markets and society. ‘Property Rights’ is a term used to define the right to possess resources and the right to determine their utilisation. The term is not limited to just public ownerships, but property rights are extended to private individuals and organisations. However, the issue of property rights remains a highly complex matter and must be thoroughly assessed.

Every country defines property rights through various laws, rules, and regulations, with ultimate enforcement of property rights the responsibility of the state and its institutions.

In the case of Pakistan, it is essential to study the relevant laws defining and governing property rights comprehensively. This brief aims to describe Pakistan’s existing land property rights and evaluate the land record system. Moreover, the brief will also identify the laws regulating property rights in Pakistan and analyse the right to transfer land and property. 

DEFINING PROPERTY AND LAND IN PAKISTAN

  • The terms ‘Land’ and ‘Property’ are often used interchangeably in Pakistan. However, as per the regulations, property, and land have two separate definitions.
  • In Pakistan, property means anything tangible or intangible that can be owned by or vested in by an individual. Any property that physically exists, even temporarily, is referred to as tangible. In contrast, a property is considered intangible when it does not physically exist, such as patents or intellectual property rights.
  • On the other hand, ‘Land’ is defined as immovable property. Subsequently, we can infer that ‘Land’ is a type of ‘Property’, falling under the tangible category. There are other types of ’Property’, as explained above.
  • We can, thus, conclude based on the information mentioned above that ‘Property’ and ‘Land’ as per the legal definitions cannot be used interchangeably and are defined independently.

Pakistan’s property definitions are further classified under immovable and moveable properties. As per these, immovable property includes the following:

  • Land, buildings, and benefits gained from land and other things attached to the earth
  • Permanently fastened to anything attached to the earth
  • Hereditary allowances
  • Rights to ways
  • Lights
  • Ferries
  • Fisheries

The following, however, are not to be considered as immovable property:

  • Standing timber
  • Growing crops or grass
  • Fruit upon and juice in trees regardless of whether it exists presently or currently is just expected to grow in future
  • Machinery embedded in the earth, particularly in cases where it is dealt with apart from the land.

The above are thus considered under ‘Moveable Property’. This is because of the definition of ‘Moveable Property’, explained in reference to immovable properties. In summation, all property that cannot be defined as immovable property shall be considered ‘Moveable Property’.

AND OWNERSHIP: WHO IS ALLOWED?

The property rights are defined and protected under the Constitution of Pakistan through various laws and rules and regulations. Special and specific laws are in place to define and protect different types of property rights.

Four articles of the Constitution of Pakistan deal with private property rights in the country. These include Articles[1] 23, 24, 172, and 173. 

Regulation and Administration of Property Rights with Special Reference to Land Records

The system of land records and enforcement of property rights system in Pakistan are closely tied to the ‘Revenue Collection’ system. Since colonial times, revenue departments have done law enforcement of property rights and recording and maintenance of land. The respective revenue departments of provinces are in charge of land administration and enforcement of property rights.

These provincial revenue departments are ‘with which every person has to come in contact concerning any matter in relation to or arising out of land’. However, the system is devolved so that immediate maintenance of and hence any changes in land records happens at the sub-district level, i.e., the Village and Tehsil levels. The figure above depicts the formal levels characteristic of this devolution

Arbitration Act,1940

1. Arbitration Act, 1940:

  • Scope: The Act applies to both domestic and international arbitration conducted in Pakistan.
  • Enforcement: The awards made through arbitration are enforceable in the same manner as a decree of the court.

2. International Arbitration:

  • Recognition: Pakistan is a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which facilitates the recognition and enforcement of foreign arbitral awards.

3. International Centre for Settlement of Investment Disputes (ICSID):

  • Pakistan is a member of the ICSID, which provides facilities for the arbitration and conciliation of investment disputes.

4. Reforms and Proposed Amendments:

  • There have been discussions about the need for arbitration law reforms in Pakistan to bring it in line with modern practices.
  • Proposals for a new Arbitration Law have been considered to replace the outdated Arbitration Act, 1940, and to provide a more efficient and modern arbitration regime.

5. Arbitration Institutions:

  • The Lahore Centre for International Commercial Arbitration (LCIA) and the Karachi Centre for Dispute Resolution (KCDR) are institutions that provide arbitration services in Pakistan.

6. Enforcement of Awards:

  • Arbitral awards, whether domestic or international, can be enforced through the Pakistani courts. The courts generally follow a pro-enforcement approach, especially in light of international conventions.

7. Confidentiality:

  • Arbitration proceedings in Pakistan are generally confidential, and the parties involved are bound by confidentiality obligations.

8. Role of the Courts:

  • The courts in Pakistan play a supportive role in arbitration, including the appointment of arbitrators and the enforcement of awards. The courts are generally supportive of the arbitration process.

9. Challenges:

  • Despite efforts for reform, challenges may include delays in the legal system and a need for more specialized arbitrators.

10. Recent Developments:

  • Given the evolving nature of laws, it’s essential to stay updated on any recent developments or amendments to the arbitration framework in Pakistan.
Open chat
Hello 👋
Can we help you?