LHC expands scope of property courts for overseas Pakistanis

LAHORE: The Lahore High Court (LHC) has declared that special courts established for overseas Pakistanis can hear a wide range of property-related disputes, going beyond narrow questions of ownership and possession.

In a judgement authored by Justice Anwaar Hussain, the court decided multiple petitions related to the scope of jurisdiction under the Punjab Establishment of Special Courts (Overseas Pakistanis Property) Act, 2025.

The matter reached the high court after special courts declined to hear several cases — including suits relating to specific performance, cancellation of transactions and inheritance claims — on the grounds that such disputes fell outside their limited mandate. These matters were subsequently referred back to civil courts, prompting affected litigants, including overseas Pakistanis, to challenge the interpretation before the LHC.

In one petition, an overseas Pakistani residing in Kuwait argued that the special court had refused to entertain his suit seeking a declaration and specific performance against a housing society in Lahore. He said the matter was transferred to a civil court.

In another petition, an overseas Pakistani stated that the special court refused to exercise jurisdiction in a dispute related to the cancellation of a general power of attorney.

Justice Hussain held that the lower courts had misinterpreted the law by adopting an unduly restrictive reading of the Act’s preamble. “The expressions ‘matters connected therewith’ and ‘incidental thereto’ are of wide import,” the judge noted, adding that the law was intended to cover the entire spectrum of disputes relating to immovable property involving overseas Pakistanis.

The judge ruled that special courts are not limited to disputes involving direct ownership or possession but also extend to matters relating to specific performance of contracts, partition, inheritance, validity of transactions and ancillary or consequential matters linked to property.

“Once the dispute relates to immovable property involving an overseas Pakistani, the jurisdiction extends to all matters having nexus with such immovable property,” the judge added.

He clarified that the jurisdiction of the special court depends on the status of a party as an overseas Pakistani, regardless of whether they are a plaintiff or defendant.

Justice Hussain stated that even if an overseas Pakistani is defending a case, the special court would retain exclusive jurisdiction, provided the dispute relates to immovable property.

The judge held that the law creates an exclusive legal regime, effectively ousting the jurisdiction of civil courts in relevant matters. The court also declared that all pending cases involving overseas Pakistanis and immovable property must be transferred to special courts in accordance with Section 13 of the Act.

The judge directed that such cases should proceed from the stage already reached to avoid fresh trials before the special courts.

He observed that even cases wrongly retained or returned to civil courts due to earlier confusion must now be shifted back to the special courts.

This interpretation, the judge noted, would ensure consistency and prevent litigants from being prejudiced due to judicial errors.

The court set aside the impugned orders in the petitions and directed that the matters be heard by the special courts in line with the clarified legal position.