KARACHI DEVELOPMENT AUTHORITY and others vs Syed IQBAL AHMED and others
This matter arises from appeals directed against the judgment of the High Court of Sindh, Karachi, which allowed constitutional petitions filed by respondents regarding demand notices issued by the Karachi Development Authority for non-utilization fees (NUF) on allotted plots. The core legal question concerned the validity of demand notices issued in excess of amounts stipulated under original contracts and subsequent notifications regarding NUF rates. Upon hearing counsel for the respondents, the Supreme Court disposed of the appeals in terms agreed upon by the parties. The Court held that respondents were free to challenge the vires of specific notifications and resolutions dated 30-1-2001 before the High Court afresh, uninfluenced by the previous judgment, and outlined procedural safeguards regarding voluntary deposits and suspension applications. The key principle laid down is that matters concerning the vires of subordinate legislation not dilated upon by the lower court can be remanded or left open for independent adjudication through constitutional jurisdiction.
- Can a party challenge the vires of notifications and resolutions regarding non-utilization fees afresh in the High Court if the lower court did not dilate upon them?
- Whether the voluntary deposit of an outstanding amount at a revised rate is subject to a claim instituted through the constitutional jurisdiction of the High Court?
' IFTIKHAR MUHAMMAD CHAUDHRY, C.J.---The above appeals with the leave of the Court are directed against the judgment dated 7-2-2002 of the High Court of Sindh, Karachi passed in Constitutional Petitions Nos. 948 of 1996, 1014, 980. 1868, 1869, 568, 545, 1352 of 1999, 572,.573 of 2001, 1672 of 2000 and 117 of 2000 whereby the petitions filed by the respondents were allowed to the extent that the demand notices in excess of the amount stipulated under the original contract were invalid.
2. The necessary facts as noted in the impugned judgment were that the respondents or their predecessor-in-interest were allotted various plots by the appellant (Karachi Development Authority) and a certain amount by way of occupancy value was required to be paid by the allottees. The allotment orders also contained a provision to the effect that construction on the plots would be raised within a specified period of time and in case of failure to do so, the allottees would be liable to pay non-utilization fee (NUF) to the extent of a certain percentage of the occupancy value. The rate of such, fee varied from 3 per cent to 10 per cent in the respective allotment Orders and in certain cases, the amount of such fee was exorbitant.
3. Hafiz Abdul Baqi, learned counsel for the appellant has not appeared, though he sent an application for adjournment through fax, which was not entertained by the office.
4. Messrs R.F. Virjee, H.A. Rehmani and Hashmat Ali Habib, learned counsel for the respondents have appeared in Civil Appeals Nos.985, 986, 990, 991 and 992 of 2003.
5. We have gone through the impugned judgment of the learned High Court with their assistance.
The learned counsel for the respondents after arguing the matter at some length have stated that the appeals be disposed of in the following terms:--
(i) As the learned High Court has not dilated upon the vires of Notifications Nos. KKDA/DR/NUF/ 2001/67 and KDA/DR/SC/2001/68, dated 30-1-2001 and the resolution passed by Karachi Development" Authority, therefore, the respondents shall be free to challenge the same in the High Court afresh and the learned High Court without being influenced or prejudiced in any manner from the impugned judgnient as well as the demand notice, which is based upon the notifications referred to hereinabove will dispose of the matter independently and expeditiously, preferably within a period of three months;
(ii) If any of the respondents deposits the outstanding amount of NUF at the revised rate of 12.5 per cent voluntarily, it would be subject to his claim if instituted by invoking Constitutional jurisdiction of the High Court; and
(iii) The respondents while challenging the above notifications before the High Court may also file an application for suspension of the demand notice, which shall be disposed of as early as possible in order to avoid any adverse order that may be passed by the Karachi Development Authority requiring deposit of the outstanding amount.
The appeals are disposed of accordingly.