A property owner may have a registered deed, mutation in his name, and a complete property record. But if the revenue office refuses to issue Fard Malkiat, the entire property transaction can stop. This is exactly what happened in an important Lahore High Court case reported as 2025 CLC 1961.
The key question was serious: can revenue officers stop Fard Malkiat merely because CVT was allegedly unpaid on an old General Power of Attorney? The court explained that CVT on Power of Attorney in Pakistan is not automatic in every case. The law must be applied carefully, and a citizen’s property record cannot be blocked without lawful authority.
This judgment is important for property owners, buyers, housing scheme developers, lawyers, and revenue officials because it explains the difference between lawful tax recovery and unlawful restriction on property rights.
Table of Contents
IRAC Summary
| IRAC | Short Points |
| Issue | Whether Fard Malkiat could be refused because CVT was allegedly unpaid on a previous General Power of Attorney. |
| Rule | Under section 6 of the Punjab Finance Act, 2012, CVT may apply where immovable property is acquired through certain modes, including power of attorney. Recovery must follow legal procedure. |
| Analysis | The petitioner acquired land through a registered Exchange Deed, not through the General Power of Attorney. The Sub-Registrar had no legal power to stop Fard Malkiat without an injunction or attachment order. |
| Conclusion | The Lahore High Court allowed the petition and declared the restriction on Fard Malkiat without lawful authority. |
Judgment at a Glance
| Point | Details |
| Case Title | Ghazanfar Amin v. Province of Punjab and others |
| Citation | 2025 CLC 1961 Lahore |
| Court | Lahore High Court, Bahawalpur Bench |
| Main Law | Punjab Finance Act, 2012, sections 6(3) and 6(17) |
| Main Topic | CVT on General Power of Attorney and refusal of Fard Malkiat |
| Final Result | Petition allowed; restriction declared without lawful authority |
Background of the Case
The dispute started from land measuring 46 kanals in District Bahawalnagar. The original owner executed a General Power of Attorney in 2016. Later, in 2020, the petitioner acquired land through a registered Exchange Deed. This exchange was personally executed by the owner and was not completed through the General Power of Attorney.
After the exchange, the land was mutated in the petitioner’s name. The petitioner later developed a housing scheme and needed Fard Malkiat to transfer plots to buyers. However, the Halqa Patwari refused to issue Fard Malkiat because an audit objection stated that CVT of more than Rs.25 million was unpaid on the old General Power of Attorney.
This made CVT on Power of Attorney in Pakistan the central legal issue. The petitioner argued that he had acquired ownership through a separate registered Exchange Deed, so his Fard Malkiat could not be stopped due to an old CVT objection against another person.
For a wider understanding of property transfer disputes, you may also read our guide on Power of Attorney Law in Pakistan.
What Is CVT?
CVT means Capital Value Tax. In property matters, it is connected with the value of immovable property. Under the Punjab Finance Act, 2012, CVT could be payable where a person acquired immovable property through purchase, gift, exchange, power of attorney, surrender, relinquishment, or long lease.
But the important word is “acquires.” The court did not treat every Power of Attorney as a taxable property transfer. The court looked at the surrounding words in section 6(3), such as purchase, gift, exchange, surrender, relinquishment, and lease. This showed that the law was concerned with the actual acquisition of property.
For legal reference, section 6 of the Punjab Finance Act dealt with Capital Value Tax on immovable property and explained when CVT could be connected with property acquisition.
Therefore, CVT on Power of Attorney in Pakistan depends on the real nature of the transaction. If a General Power of Attorney is merely an authority document, the situation may be different. If it is used as a practical method to acquire property, then CVT may become relevant.
Legal Issue Before the Court
The main issue was whether the revenue authorities could refuse Fard Malkiat to a registered owner because unpaid CVT was alleged on an earlier General Power of Attorney.
The government side argued that CVT on a power of attorney given to a stranger had already been upheld by the Supreme Court. The petitioner argued that his case was different because he did not acquire property through the General Power of Attorney. He acquired it through an independent Exchange Deed.
This distinction became the heart of CVT on Power of Attorney in Pakistan. The court had to decide whether the tax objection could legally affect the petitioner’s right to obtain Fard Malkiat.
Court’s Analysis
The Lahore High Court explained that tax laws must be interpreted strictly. A citizen cannot be taxed by assumption, pressure, or unclear language. Tax liability must come from clear words of law.
The court applied the legal principle of noscitur a sociis, which means that a word is understood by the company it keeps. In section 6(3), the word “power of attorney” appears with purchase, gift, exchange, surrender, relinquishment, and lease. These words are all connected with acquisition of property.
On this basis, the court held that CVT on Power of Attorney in Pakistan may not be chargeable on every General Power of Attorney. A person can show that he is not liable in a particular case.
In the present case, the petitioner acquired property through Exchange Deed No.554 dated 20 February 2020. That transaction was independent of General Power of Attorney No.70 dated 28 June 2016. The court also noted that the petitioner and another necessary party were not properly heard, and no proper assessment order by the Collector was shown.
No Legal Power to Stop Fard Malkiat
This was the strongest part of the judgment. Section 6(17) of the Punjab Finance Act, 2012, allowed recovery of unpaid CVT as arrears of land revenue from the person liable to pay it. But the government side could not show any law that allowed the Sub-Registrar to stop Fard Malkiat of the property owner.
If any tax amount is recoverable as arrears of land revenue, the authorities must follow the procedure provided under the Punjab Land Revenue Act, 1967.
The court clearly observed that no provision was cited empowering the Sub-Registrar to prohibit issuance of Fard Malkiat without an injunction or attachment order by a court or competent authority.
This means CVT on Power of Attorney in Pakistan can be recovered through legal procedure, but revenue officers cannot create an informal punishment by blocking property record. If tax is due, the department must proceed against the liable person according to law.
Practical Lessons for Property Owners
If your Fard Malkiat is refused because of a CVT objection on an old General Power of Attorney, first check the actual transaction. Did you acquire the property through that Power of Attorney, or through a separate registered deed?
Keep your registered deed, mutation copy, Fard application, written refusal, CVT notice, old GPA, tax challans, and ownership chain. These documents can help prove whether the refusal is legal or unlawful.
The lesson from CVT on Power of Attorney in Pakistan is simple: revenue officers must follow law. They cannot stop property documents merely because an audit objection exists.
Key Takeaways
CVT on Power of Attorney in Pakistan is not automatic in every case. The department must see whether the property was actually acquired through the Power of Attorney. A registered property owner cannot be deprived of Fard Malkiat without lawful authority. Tax recovery must follow the procedure provided by law.
The judgment also protects the right of a property owner to approach the High Court under Article 199 when a revenue action directly affects his property rights.
Conclusion
The Lahore High Court’s ruling in 2025 CLC 1961 gives strong guidance on CVT on Power of Attorney in Pakistan. The court did not stop lawful tax recovery. It only stopped an unlawful restriction on Fard Malkiat.
If CVT is genuinely due, the authorities may proceed against the responsible person. But they must follow the law, give hearing where required, pass proper orders, and use proper recovery procedure. They cannot block Fard Malkiat of a registered owner without legal authority.
For ordinary citizens, this case gives one clear message: property rights cannot be controlled through informal office instructions. Lawful ownership deserves lawful protection.
Disclaimer
This article is for legal awareness only. It is not legal advice. For any property, tax, or revenue dispute, consult a qualified lawyer.
FAQs
What is CVT?
CVT means Capital Value Tax. It is a tax connected with the value of immovable property.
Is CVT payable on every General Power of Attorney?
No. The court held that CVT may not be payable on every General Power of Attorney.
Can Patwari refuse Fard Malkiat due to unpaid CVT?
Fard Malkiat cannot be refused without lawful authority, injunction, attachment order, or proper legal basis.
What was the final decision in 2025 CLC 1961?
The Lahore High Court allowed the petition and declared the restriction on Fard Malkiat without lawful authority.
What should a property owner do if Fard Malkiat is refused?
He should obtain written reasons, collect property documents, check the actual transaction, and consult a lawyer for legal remedy.