REHMATULLAH KHAN and others vs GOVERNMENT OF PAKISTAN through Secretary, Petroleum and Natural Resources Division, Islamabad and others
This civil petition for leave to appeal arose from a judgment of the Peshawar High Court, which had dismissed the petitioners' appeal and upheld the trial court's decision non-suiting them in a suit for declaration, specific performance, and damages. The predecessor of the petitioners had applied to Pakistan State Oil Company Limited for the installation of a filling station. Although a feasibility report was prepared, no formal contract or agreement was ever executed between the parties. The core legal question was whether the mere submission of an application and preparation of a feasibility report created any enforceable legal relationship, agency, licence, or vested right to compel the installation of a filling station or claim damages. The Supreme Court of Pakistan held that in the absence of a concluded contract, no relationship of principal and agent or licence was created, and the mere filing of an application conferred no vested right upon the applicants. The Court laid down the principle that the filing of an application for a filling station, without a formal agreement or permission, creates no vested right, and consequently no declaratory relief or specific performance can be granted under section 42 of the Specific Relief Act.
- Does the mere submission of an application for the installation of a filling station create a vested right?
- Can a relationship of principal and agent be inferred in the absence of a written contract?
- Does the preparation of a feasibility report by an oil company constitute the grant of a licence?
- Is a suit for specific performance and declaration maintainable under section 42 of the Specific Relief Act without the existence of a concluded contract or vested right?
- Section 182 of the Contract Act
- Section 42 of the Specific Relief Act
' SARDAR MUHAMMAD RAZA KHAN, J.---Gul Nawaz Khan deceased of Janikhel, Tehsil and District Bannu, on 18-7-1993 submitted an application before Divisional Manager (Resales), Pakistan State Oil Company Limited, 9-C Rafique Lane, Peshawar Cantt., for the installation of a filling station. Spot was inspected by the functionaries of the Company, a feasibility report was also prepared but no agreement was ever signed by the Company. Gul Nawaz Khan died in the meantime, Rehmatullah Khan, Advocate and others, the legal heirs of Gul Nawaz Khan deceased, while basing their claim on such application of their predecessor-in-interest, filed a civil suit against the Government of Pakistan through Secretary, Petroleum and various functionaries of Pakistan State Oil Company for a declaration that they were entitled to the installation of a petrol pump and that the respondents be asked for the specific performance of the agreement qua such filling station and also for the damages in a sum of Rs,40,00,000 which according to the plaintiffs, was incurred on the infrastructure involved including the compensation for mental torture.
2. After serious contest by the defendant, learned Civil Judge-I, Bannu, vide his judgment dated 20- 11-1999, non-suited the plaintiffs. They filed Regular First Appeal No, 1 of 2000, which was heard by an Hon'ble Division Bench of Peshawar High Court and which on 25-4-2001 was dismissed.
Rehmatullah Khan etc. Have filed this petition for leave to appeal.
3. We may proceed from the admitted facts between the parties that no contract or agreement had ever been signed between the parties regarding the insllation of a filling station. The matter never proceeded beyond the submission of an application by Gul Nawaz Khan and a few actions like the preparation of feasibility report etc. It is also a matter of fact that whatever progress is made by the applicants on the spot qua the infrastructure, was a unilateral act sans any agreement or contract between the parties. These conditions being in existence, we have to see as to what relationship exists between the parties.
4. The first and foremost relationship that apparently strikes the mind is that of creation of agency.
Section 182 of the Contract Act lays down that an "agent" is a person employed to do any act for another or to represent another in dealings with third persons. The person for whom such act is done, or who is so represented, is called the "principal". If the relationship between the parties is viewed from such angle, we have no agreement or contract before us in black and white where from it could be ascertained as to whether Pakistan State Oil had employed Gul Nawaz Khan to do any act for the Company or to represent the Company in dealings with third persons. In the absence of such contract between the parties, we utterly failed to understand as to how could the relationship of principal and agent be determined between the parties. The instant conditions do not at all go to create an agency. Gul Nawaz Khan and his legal heirs, the plaintiffs, cannot assert any rights of an agent, the institution of agency ruled out altogether.
5. The second idea that comes to one's mind can be of a licence. Licence is defined in the Easements Act which we believe is not a case of the petitioners/plaintiffs.Coming to the dictionary meaning of the word "licence" we may refer to Fifth Edition of Black's Law Dictionary, page 829. It defines licence as: ' "The permission by competent Authority to do an act which, without such permission, would be illegal, a trespass, or a tort. Leave to do things which licensor could prevent. Permission to do a particular thing to exercise a certain privilege or to carry on a particular business or to pursue a certain occupation. Permission to do something which without the licence would not be allowable.
A licence is not a contract between the State and the licensee, but is a mere personal permit.
Licence with respect to real property is a privilege to go on premises for a certain purpose, but does not operate to confer on, or vest in, licensee any title, interest, or estate in such property."
6. From the above definition of a licence one can comprehend that it, in simple words, is a permission granted-by one to another to do some act or to enjoy a certain privilege. It is not a creation of contract and it does not confer any right upon the licensee to create any interest etc. The petitioners/ plaintiffs have remained completely at loss to prove as to whether even a permission in the shape of licence had been granted by Pakistan State Oil to install a filling station.
The answer is in the simple negative. What to talk of the grant of a licence in the instant case and the issuance of any authority in that behalf, the matter has not proceeded legally and technically beyond the filing of an application. Mere filing of application does not create any right for the grant of either an agency or a licence.
7. The permission by Pakistan State Oil to Gul Nawaz Khan to sell their petrol in his filling station, if at all granted, would have constituted a licence which even if granted could have been withdrawn at any time. Seen from any angle, no vested right was created by filing an application or even by submission of a feasibility report. In the event of non-creation of any vested right, no relief can be sought under section 42 of the Specific Relief Act. In the circumstances, the petitioners were rightly non-suited by the two Courts below.
8. There being no force in the petition, it is hereby dismissed and leave to appeal is refused. revisions by the competent authorities. Therefore, it is advisable to consult the official sources or legal professionals for the most up-to-date and accurate information.
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