Dr. FAROOQ HAMID And Others vs Kaka MUHAMMAD KHAN And 6 Other
This matter arises from civil appeals before the Supreme Court of Pakistan concerning a landlord-tenant dispute over commercial premises. The core legal question involved the lawful resolution of the eviction and reconstruction dispute through a mutually agreed compromise between the parties. The Supreme Court of Pakistan accepted the written compromise agreement filed by the parties, disposing of the appeals in terms of the settlement. The court held that the parties must strictly adhere to the agreed conditions, which permitted the landlord to reconstruct the building subject to the tenants retaining their right of occupation in the newly constructed shops, with rent to be subsequently determined by the Rent Controller. The key principle laid down is that appellate courts may dispose of matters in accordance with lawful compromises reached between contesting litigants, and that breach of solemn undertakings given to the court pursuant to such settlements constitutes contempt of court.
- Can appellate proceedings be disposed of in terms of a written compromise reached between landlords and tenants?
- Whether breach of an undertaking given to the court pursuant to a settlement terms amounts to contempt of court?
- How is the rent of newly-reconstructed premises determined when parties agree to such terms in a compromise?
ORDER
1. ABDUL KADIR SHAIKH, J.----Learned counsel for all the parties state that the parties have amicably settled the dispute and have filed an application in writing in this behalf and pray that these appeals may be disposed of on the following terms and conditions:-- "The parties request that these appeals may be disposed of on the following terms and conditions:
(1) That the respondents-tenants agree that appellant shall be permitted to reconstruct the new building as per sanctioned plan Ex.P/1 annexed herewith.
(2) That the appellant shall be permitted by the respondents to demolish their respective shops while they shall continue to remain in possession of the site of the premises.
(3) That in order to enable the appellant to demolish the present structure of the shops, respondents shall remove their goods, articles and other effects from the shops within 30 days from today.
(4) Appellant shall demolish and carry out the reconstruction work of the new building so far as the shops are concerned within the next following six months.
2. For ensuring compliance with the above terms a Commissioner may be appointed.
(5) After the completion of the newly-reconstructed shops within the above stipulated period, respondents-tenants shall be entitled to occupy their respective shops forthwith. The rent of the shops will be determined by the Rent Controller on the application of any of the parties. Until the determination of the rent by the Rent Controller, respondents shall pay rent at the present rate from the date of the occupation of the newly-constructed shops.
(6) That appellant shall not sell, transfer, alienate or dispose of the site or reconstructed shops in any manner until the respondents-tenants occupy the same.
(7) The appellant shall pay the fees of the Commissioner, as ordered by the Court.
(8) The parties undertake to abide by these terms and conditions and any violation will amount to a contempt of Court.
(9) If the Masjid Road is widened by the Municipal Corporation it would not affect the tenants' right nor the sizes of their shops nor through any other excuse the tenants shall be deprived of their above right.
3. In view of the fact that the parties have settled the controversy among them, we grant the request and dispose of the appeals in the terms of the compromise.
4. The Additional Registrar, Administration, Baluchistan High Court is appointed as the Commissioner and his fees are fixed at Rs.3,000 payable by the appellant within two weeks.
5. It is made clear to the parties that breach of the undertaking to abide by the terms and conditions and any violation thereof will amount to a contempt of Court.
6. In the circumstances, the parties are left to bear their own costs.