The judgement, penned by Justice Abid Hussain Chattha, was issued on a petition filed by the Public Interest Law Association of Pakistan against the federal government.
The 134-page judgement noted that the decision taken by the caretaker Punjab government earlier this year to hand over a million acres of state land to the military for a joint venture on corporate agricultural farming (CAF) under Section 10 of the Colonization Act was "unlawful and of no legal effect and are set aside".
The court ruled that the caretaker government lacks a "constitutional and legal mandate to take any decision regarding CAF initiative and policy in any manner whatsoever, in terms of Section 230 of the Elections Act."
However, the court noted that any subsequent elected provincial government could review the conditions for the transfer of the land based on the decisions taken by the elected cabinet of former provincial chief minister Usman Buzdar in February 2022.
Further, the court noted that the armed forces, including the Pakistan Army and its subordinate or attached departments, "lack constitutional and legal mandate to indulge and participate in CAF initiative and policy in terms of Article 245 of the Constitution.
"Resultantly, all state land shall stand reverted to the GOP, the departments and persons as per its previous status."
The government was directed to ensure compliance with the judgement by amending the revenue record and submitting a compliance report to the LHC's Deputy Registrar (Judicial) within 15 days.
Read the full judgement here.