Mrs. B.S. KHAN vs PAKISTAN STATE OIL CO. LTD.
This matter concerns a petition for leave to appeal against a High Court judgment that dismissed an eviction application filed by a lessee against a sub-lessee. The core legal question is whether premises owned by the Karachi Port Trust (KPT) but leased to a private party are exempt from the provisions of the Sind Rented Premises Ordinance, 1979, by virtue of a government notification, thereby depriving the Rent Controller of jurisdiction over disputes between such lessees and their sub-lessees. The High Court had held that because the land belonged to the KPT, it was exempt from the Ordinance, rendering the lessee incompetent to initiate eviction proceedings. The Supreme Court, noting that the interpretation of the exemption notification and its applicability to properties perpetually leased by the KPT involves a substantial question of law affecting numerous cases, granted leave to appeal. The key principle identified is that the scope of statutory exemptions for government-owned properties must be strictly construed to determine whether they extend to sub-tenancies created by lessees of such properties.
- Does the exemption of Karachi Port Trust premises from the Sind Rented Premises Ordinance 1979 apply to properties leased out by the Trust to private individuals?
- Is a lessee of Karachi Port Trust land competent to file an eviction application against a sub-lessee under the Sind Rented Premises Ordinance 1979?
- Does the Rent Controller have jurisdiction over eviction disputes involving land owned by the Karachi Port Trust?
- Section 2(f), Sind Rented Premises Ordinance 1979
- Section 3(2), Sind Rented Premises Ordinance 1979
ORDER
1. ABDUL KADIR SHAIKH,J.--This is a petition for leave to appeal from the judgment of a learned Judge of Sind High Court dated 29-4-1986 whereby an appeal filed by the petitioner was dismissed and as a result the order of the Rent Controller dated 13-4-1985 dismissing petitioner's application for respondent's eviction from the demised premises was upheld.
2. Facts of the case briefly said are that the petitioner let out the plot in question to respondents predecessor, M/s. Esso Standard, by an agreement dated 28-8-1983 on monthly lease. On 25-10- 1982 petitioner filed an application for respondent's eviction on the ground of their failure to pay rent for the month of October 1982 within the stipulated period. In the light of defence taken by the respondent, learned Rent Controller framed the following two issues for decision in the case:
(1) Whether the application is maintainable?
(2) Whether tenant had committed any default in payment of rent?
3. Learned Rent Controller finally came to the conclusion that the ejectment application was maintainable but the respondent had not committed any default in payment of rent and accordingly dismissed the application. The order of the Rent Controller lead to the appeals in the High court, one by the petitioner in respect of finding of the Rent Controller that the respondent had not committed default in payment of rent, and the other by the respondent regarding the decision on the first issue. Both these appeals were heard and decided together with the result that petitioner's appeal was dismissed and the one filed by the respondent was allowed. The reasons that prevailed with the learned Judge in the High Court: "Upshot of the above discussion is that the premises belonging to K.P.T. Are exempted. In the present case Mrs. B.S. Khan is lessee of K.P.T. Whereas State Oil is in occupation of land of K.P.T.
4. Though it has been given to them by lease. Therefore, lesses cannot invoke the jurisdiction of Rent Controller in respect of land of K.P.T. Which stands exempted, by virtue of notification dated 11th March, 1981."
5. Morever the definition of landlord is given in Sind Rented Premises ordinance, 1979 as under: "2(f)'landlord' means the owner premises and includes a person who is for the time being authorised or entitled to receive rent in respect of such premises.
6. The owner of the land is K.P.T. But Mrs. B.S.Khan who is lessee rented out the premises belonging to K.P.T. To State Oil and his rights are to the extent to recover the rent as such provision of Sind Rented Premises which include section 2 (f) are exempted therefore lessee is not competent to file rent case against sub-lessee. For the reasons stated above on this issue I allow the appeal No. F.R.A. 302 of 1985 and set aside the findings of the Rent Controller. I have come to the conclusion that Rent Controller ceased to have jurisdiction of these cases."
7. Mr.S.A. Samad Khan learned counsel appearing in support of this petition for leave to appeal from the judgment of the High Court raised several points of law, inter alia, that the learned Judge in the High Court has totally misconstrued the exemption accorded to the property belonging to Karachi Port Trust. According to him the exemption under the Notification No. VIII (3) 501/75, dated 15-3-1981 applies only to those properties that are owned and occupied by the Karachi Port Trust and not to those that are perpetually leased out by the Karachi Port Trust to the lessees who are entitled to recover rent from the sub-lessees. This notification reads as under: "No. VIII (3) 501/75.- In exercise of the powers conferred by subsection (2) of section 3 of the Sind Rented Premises Ordinance, 1979 and supersession of all orders issued previously, the Government of Sind are pleased to exempt the premises belonging to Karachi Port Trust Karachi, from the application of the Sind Ordinance."
8. Since the argument advanced by the learned counsel involves a substantial questions of law which is likely to govern large number ofl8 cases, we grant leave. Security Rs.2.500.
9. Appeal to be heard on the present record at an early date It is however open to the parties to file additional documents, if any.