The court was hearing the plea filed by convicts, Nazeer and Dilawar against death sentence and commuted their sentence into life imprisonment.
The decision on the plea came after 22 years.
The anti-terrorism court had awarded death sentence to Nazeer and Dilawar.
However, three other accused, Abdul Jalil, Ali Asghar and Ghulam Ali were awarded life term.
The convicted accused had killed four people, Sultan, Ghulam Mohammad, Dost Ali and Gul Hassan in 1997 over irrigation water issue in Badin.