Supreme Court upholds prior property rights

May 12, 2026 (MLN): The Supreme Court of Pakistan has ruled that a subsequent purchaser of property cannot claim legal protection unless they are able to prove good faith, proper due diligence, and lack of knowledge regarding any prior agreement related to the property.

The ruling came in a series of connected civil appeals, heard by a three-member bench comprising Justice Shahid Waheed, Justice Musarrat Hilali, and Justice Muhammad Shafi Siddiqui, according to APP.

According to the detailed written judgment issued for reporting purposes, the apex court upheld the decision of the Lahore High Court and dismissed all appeals filed in the property dispute case, according to the press release.

The court observed that the original owners of the disputed property had admitted the existence of the initial agreement to sell.

In contrast, the subsequent purchasers failed to establish that they had entered into the transaction in complete good faith or without prior knowledge of the earlier agreement or ongoing dispute over the property.

The judgment emphasized that under the law, a subsequent transferee carries a significant burden to demonstrate not only bona fide intent but also that reasonable and proper inquiry into the property title had been conducted before completing the transaction.

However, the court found that the purchasers had failed to satisfy this legal requirement.

The Supreme Court further clarified that once the rights of the original purchaser are legally recognized, a later transferee cannot obtain a superior legal title where the subsequent transfer lacks transparency.

Declaring the Lahore High Court’s judgment lawful and well-founded, the apex court upheld the ruling and dismissed all connected appeals.

The bench also disposed of pending impleadment and stay applications after terming them ineffective in light of the final verdict.

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