LHC Expands Jurisdiction of Overseas Property Courts

The Lahore High Court has ruled that special courts established for overseas Pakistanis are empowered to hear a wide range of immovable property disputes, including matters relating to inheritance, partition, specific performance, and cancellation of property-related transactions.

According to reports, the judgment was delivered by Justice Anwaar Hussain while deciding multiple petitions concerning the jurisdictional scope of the Punjab Establishment of Special Courts (Overseas Pakistanis Property) Act, 2025.

The petitions arose after certain special courts declined to entertain cases involving inheritance claims, specific performance suits, and cancellation of transactions, holding that such disputes fell within the jurisdiction of ordinary civil courts.

In one matter, an overseas Pakistani residing in Kuwait challenged the transfer of his suit against a housing society in Lahore to a civil court after the special court refused to hear his claim seeking declaration and specific performance.

In another petition, an overseas Pakistani contested a decision whereby the special court declined jurisdiction in a case involving cancellation of a general power of attorney.

Justice Hussain observed that subordinate courts had adopted an unduly restrictive interpretation of the legislation by narrowly construing the preamble of the Act.

The judgment noted that the phrases “matters connected therewith” and “incidental thereto” carry broad legal significance and demonstrate the legislature’s intent to cover the entire spectrum of immovable property disputes involving overseas Pakistanis.

The court held that the jurisdiction of special courts is not confined to disputes concerning ownership or possession alone, but also extends to contractual matters, inheritance claims, partition proceedings, validity of transactions, and related ancillary issues concerning immovable property.

The judgment further directed that all pending cases involving overseas Pakistanis and immovable property be transferred to the designated special courts in accordance with Section 13 of the Act.

Additionally, the court ordered that transferred matters should continue from the stage already reached in the proceedings to avoid restarting trials and causing unnecessary delay.