Professional Documents
Culture Documents
Agri & CAD 22
Agri & CAD 22
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 risks
•
•
Production loss risk
Managerial capacity
Farmer • Risk of natural
disasters
• Effects of disease or
pests
• Work health risks
• Capital risk
Finances Market
• Business and tax risks
• 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
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
Encumbrance Encumbrance
Creation Recording
Standard Charge
Limited Company
Documents
Entities (other
Property Related
than limited
Documents
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
MODES OF ENCUMBRANCES
• INTANGIBLE PROPERTY
• Lien
• Assignment
• Hypothecation (for STA)
• TANGIBLE PROPERTY
• MOVEABLE PROPERTY
• Pledge,
• Hypothecation
• IMMOVEABLE PROPERTY
• Mortgage
• Charge as per section 100 TPA….(Passbook)
• Assignment
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
MOVEABLE
PROPERTY
CHARGE ON
MORTGAGE ASSIGNMENT
PASSBOOK
CREATION &
CREATION REGISTRATION
REGISTRATION SAME AS
MORTGAG
E
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; • Pass book;
Registered deed of allotment rights; • Fard (abstract from register Haqdaran),
• Registered deed of leasehold rights; • Girdawri (document narrating possession of
• Allotment letter/transfer letter of perpetual land)
proprietary rights; • Mutation
• Allotment letter/transfer letter of lease hold • Notification/letter from Government for the
rights; allotment/grant/lease of specific land;
• Lease deed/s; Mutation (intiqaal); PTD/PTO; • Certificate from Government regarding sale of
• Bay-nama (Sale Deed); government land
• Hiba-naama (Gift Deed); • PT-1 (a property tax record narrating the
• Tabadla-nama (Exchange Deed); record of an urban property).
• Tuqseem-nama (Demarcation Deed); • The transfer of allotment rights is often
• Dastbardari-nama (Relinquishment Deed); registered with sub-registrars hence creating
another optional document of title alongwith
• Conveyance Deed (transfer of rights by the allotment/transfer letter.
competent authority say court);
• 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, • Holding of agricultural land by virtue of mutation
• Allotment rights by a cooperative society, alone, Holding of agricultural land through
• Allotment rights by Federal/Provincial tenancy,
Government, • Absolute ownership of urban land through a deed
• Allotment rights by Housing Limited companies, registered under Transfer of Property Act (TPA)
to be recorded in property tax department,
• Lease hold rights by army housing schemes,
• Absolute ownership of rights (with land and
• Leasehold rights by army controlled schemes without roof) in a multistory building through a
under category, deed registered under Transfer of Property Act
• Long Leasehold rights by private individuals, (TPA) to be recorded in property tax department,
• Ordinary leasehold rights for possession (rent • Absolute ownership of space rights (without land
based holdings), and roof) in a multistory building through a deed
• Rights acquired through Grant of land by registered under Transfer of Property Act (TPA)
Federal/provincial governments, to be recorded in property tax department,
• Absolute ownership of agricultural land through a • Holding by way of trust,
deed registered under Transfer of Property Act • State Land,
(TPA), • Holding of Army Controlled land with the high
• Holding of agricultural land by virtue of pass security area.
book and mutation (in revenue record only),
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). READ THE FIRST DOCUMENT TO DETERMINE THE RIGHT
(exclusive)
II. Leasehold Rights (exclusive)
III. Licence
IV. Easement
State
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.
Division
Commissioner
District
Deputy Commissioner (Collector)
Patwar Circle
Patwari/ Tapadar controlling Gnerally one estate but can be more than one
ھ ک
یوین /اکشاکالعہق
KHASRA 4
اسملاھکہت
ہٹپ /مزارہع ک
ک ھیوٹدار
وخداکشت ھیوین3 ک
D ھیوین5
ک وخداکشت
ھیوین1 ک ک وخداکشت
ھیوین2 ھیوین4
ک
ھیوٹ کھی
KHASRA 2
وٹدار وٹدار کھی
دار
A B C
+
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.
60
GIRDAWARI
• .
KHARABA
SINDH NUMBER SHUMARI
• Crop Inspection Register Village Form (VF VI)
also called register Number Shumari, is updated
thrice a year on Rabi (1st 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
68
`MUTATION
ROAZNAMCHA
PROCESS
WAQIATI
IN SINDH
VILLAGE FORM
XI
ABSTRACT
اکیپااقتنل-رپتوٹپار
FROM
RAGISTER
HAQDARAN KACHERI
ZAMEEEN (JALSA-E-AAM)
RECORDS OF
RIGHTS
اکیپااقتنل-رپترساکر
REGISTER
7یا2دہہیافرم/)فزد(لسمایعمدی HAQDARAN -E-
ZAMEEN
DAILY DIARY
Ala Malik A
Abadi C
Deh
Adna Malik
Tirni
Gora
B Deh D
Malik Qabza
Districts 131
Tehsils 541
Division
Commissioner
District
Deputy Commissioner (Collector)
Patwar Circle
Patwari/ Tapadar controlling Gnerally one estate but can be more than one
Above Economic
Subsistence Holding Economic Holding
Holding
Sr. Province % of
% in % of % in % of % in
No. Acres Acres Acres Total
Total Total Total Total Total
Area
Farms Area Farms Area Farms
1 Punjab Up to 12.5 90 64 12.5 to 50 9 23 Above 50 1 13
2 KPK Up to 12.5 95 62 12.5 to 50 4 25 Above 50 1 13
3 Sindh Up to 16.0 85 40 16 to 64 11 50 Above 64 4 10
4 Balochistan Up to 32.0 94 42 32 to 64 4 10 Above 64 2 48
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
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 Town Planning
Development Trust Forces
Authorities
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
Sale/Transfer of
Ownership
Who approves maps?
Development Authorities/ Local Government/
Cantonment
Military
Local Estate
Development
Government/ Private house at Office/
Authority
TMO Agricultural land Cantonment
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)
House 41, Khayaban e Mujahid. DHA Phase 5, Lease (In Sindh). Land Held by Cantonment and DHA
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/
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/
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 Department. development authority hence local government
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/
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
• 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
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
descendants Father/mother
MOTHER 1/6, True Children`s
FATHER 1/6 Father
Descendants
1/3 Grandfather daughters &
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
• “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
• Lahore Development Authority (LDA) Holding of land and allotment/ permeant transfer of
proprietary rights (now abandoned). Land Development
• Rawalpindi Development Authority (RDA) Holding of land and allotment. Land Development
• Gujranwala Development Authority (GDA) Holding of land and allotment. Land Development
• Sargodha Development Authority (SDA) Holding of land and allotment. Land Development
• D.G. Khan Development Authority (DGKDA) Working under THE PUNJAB DEVELOPMENT OF CITIES
ACT, 1976
Holding of land and allotment. Land Development
• Koh-e-Suleman Development Authority (KeSDA) (previously exercise control over land-use, spatial planning, land-subdivision,
Fort Munro Development Authority) 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;
• Thal Development Authority • 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 • Established under Khyber Pakhtunkhwa Housing
(Policy making and overseeing body) 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.
Peshawar Development Authority (PDA) • Allotment in schemes
• Approval of private schemes societies.
• Building controls
Abbottabad Development Authority (ADA) • Allotment in schemes
• Approval of private schemes societies.
• Building controls
Bannu Development Authority (BDA) • 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.
Rural Area
1. Owner Ship Certificates issued by 1. N.E.C.
Union Council Authorities 2. Approved Building Plan
2. Owner Ship Certificate issued by 3. Development Certificate
Mukhtiarkar concerned issued by Union Council
3. 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)
E. Rural Area:
1. Sale Deed
2. Mutation or Oral Mutation
3. Jamanbandi
4. 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
1. Possession order
B) Government Schemes:
2. Site Plan
1. Registered Sale Agreement/Sale Deed
3. Building Plan with approval letter
2. Transfer letter/Allotment letter
1. Site Plan
C) Lease Hold & Contentment Schemes: 2. Building Plan with approval letter
1. Registered Lease deed/Sub-Lease
2. General Land Register (Certificate)
d) Evacuee Property:
1. Permanent Transfer Deed
2. PT-1
3. Subsequent Transfer
4. Possession order
5. Site Plan of Plot
6. Approved Building Plan
7. Letter of approval of the building plan
e) DHA/ Societies
1. Allotment letter
2. Site Plan
3. Bylaws
Peshawar Division/ KPK
• 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 LAW
Illegal possession/sale/ alienation of Mortgaged Property Section 20 FIO 2001.
• 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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