' This is a suo motu revision is exercise of the powers conferred by Para. 29 of the Land Reforms Regulation 1972 and initiated in consequence of a note recorded by the Inspection Team of the Federal Land Commission.
2. According to the memorandum of objections, the declarant "had alienated an area of 73-08 acres equal to 3078 PIUs. By way of registered sale deed during the crucial period which has been declared as valid by the Land Commissioner, Sind. The bona fide of the alienation is doubtful for the reasons that the land alienated already stands mortgaged with the Bank vide entry No, 157 of v.
F. VII-B and note of the Supervising Tapedar against entry No, 179 dated 28-10-69."
3. I have thoroughly checked the revenue record and have heard the arguments of the learned counsel. Village Form VII for deh Kanchari, Taluka Khipro shows at leaf 53, Entry 157 dated 25-8-67 that the land has been mortgaged to the Agricultural Development Bank of Pakistan and again leaf 59, Entry 179 dated 28-10-69 shows a note on the vendee's mutation concerning the mortgage.
4. The learned counsel conceded that at the time of the sale, the land stood mortgaged to the Agricultural Development Bank of Pakistan and as such it was duly encumbered with an embargo on its sale. However, be urged that the alienee/vendee purchased the land in good faith and for valuable consideration. Furthermore he obtained a certificate dated 11-12-68 from the Revenue Authorities and thus complied with the legal formalities prior to the purchase of the land.
5. The sale deed also expressly emphasises that the land is free from all encumbrances and the vendee naturally relied upon these representations. He sincerely believed that there were no impediments to impair the sale.
6. On 13-10.1969, on behalf of the declarant, the vendee paid up the entire outstanding amount of Rs, 8,000 and the claim of the Bank was there- fore, satisfied much prior to the promulgation of MLR-115. A copy of the letter of redemption issued by the Bank on 24.4-70 is placed on record. The learned counsel agreed that this was not a regular practice but urged that it was simply a harmless and innocent irregularity which did not adversely affect the interests of any one.
7. The learned counsel argued that the mortgage is only a transfer of the land which does not involve any transfer of possession. It simply creates a charge on the property. In any case, the purchaser takes subject to that or any other charge. Moreover, as the recovery is to be made from the land 1. e. From the person who is in occupation/possession of the land, the interests of the Agricultural Development Bank of Pakistan were not and indeed could never be jeopardised. The interests of the Agricultural Development Bank of Pakistan have the statutory protection of section 2 of the West Pakistan Agricultural Bank (Recovery of Dues) Ordinance, 1959. Furthermore, section 24 of the Agricultural Bank Act 1957, also provides for the recovery powers of the Bank.
8. I will, as indeed I must restrict myself to the question of whether the impugned transaction is bona fide alienation and for the following reasons in brief, I adjudge that the said alienation by way of registered sale deed is a genuine and bona fide transaction
(a) That the sale took place in 19(.8 much before the introduction of the present Land Reforms.
(b) The dues of the Agricultural Development Bank of Pakistan were fully paid up in 1969 much prior to the crucial date of 20-12-971.
(c) The mortgage created a charge on the land to the extent of the amount of dues only. Since only a small sum Rs, 8,000 was involved, it could not be allowed to paralyse a sale of 73-08 acres of land by way of registered deed.
(d) If the contract was voidable at all, it was viodable up to the date of the satisfaction of the dues.
(e) The vendees are innocent third parties to the present case and they have purchased land in good faith and for valuable consideration.
(f) Though the conduct of the declarant has been doubtless reprehensible in that he has deliberately, knowingly and wilfully made a false representation to the vendees, no body's interest has suffered in con- sequence.
(g) Only in very exceptional and extraordinary circumstances supported by strong and forceful evidence, could a sale by registered deed be declared void. In the present case such exceptional circumstances are neither shown nor revealed and no extraordinary action is therefore warranted.
9. Accordingly the objection is dismissed and the notice is vacated.