KARACHI, May 8: A division bench of the Sindh High Court has declared that the SITE Association has no right to charge non-utilisation fee.

This was spelt out in a short order given by the division bench, comprising Justice Sabihuddin Ahmed and Justice Ali Aslam Jaferri, while allowing the petition filed by Habib Jamal, managing director, Indus Battery.

He had approached the court through counsel Abid Zuberi after the company received Rs1.5 million notice for NUF. The matter pertains to plot No.F-336 of 0.58 acre in SITE.

After handing over possession and signing of the lease on Dec 15, 1979, the respondent on April 28, 2001, demanded a sum of Rs13,79,732 as outstanding dues in respect of different charges, including Rs13,77,337 as non-utilisation fee up to June 30, 2001.

It was the case of the petitioner that the respondent further threatened the petitioner that in case payment was not made, recovery would be effected through the DC under the Revenue Act.

The petitioner, through a letter (dated May 10, 2001) informed the respondent that as the plot was located on 14 feet ditch and no infrastructure was available in the area, they could only build a high compound wall around the plot. The petitioner had requested for waiver of the NUF and informed the respondent that development charges and rent up to June 30, 2001, had already been paid.

It was submitted that the demand of NUF at the enhanced rate of premium was illegal, arbitrary and without jurisdiction. It was submitted that neither the agreement to lease nor allotment letter provided for payment of NUF. It was submitted that the whole action on the part of the respondent was of no legal effect and no adverse or coercive action could be taken against the petitioner in respect of non-utilisation of the plot which in any event was not on account of the petitioner’s failure to develop the plot.

It was contended by the petitioner that on May 14, 2001, the respondent reiterated the demand of payment of NUF and further threatened the cancellation of the alleged provisional allotment without any further notice.

The petitioner reminded the respondent not to take any action till the decision of the board on the petitioner’s request for waiver of NUF. This plea was rejected by the respondent and he demanded payment of NUF within 15 days.

As the tussle continued, the respondent through its letter dated Feb 14, 2002, purported to be a final show-cause notice, demanded the payment of NUF and other charges and the petitioner was called upon to show cause as to why the alleged provisional allotment may not be withdrawn.

The petitioner, therefore, prayed for declaring the impugned letters of April 28, 2001, Dec 29, 2001 and Feb 14, 2002, demanding NUF as illegal, arbitrary, without jurisdiction and contrary to the constitutional and natural justice.

The petitioner had also prayed for prohibiting the respondent from cancelling the allotment of the petitioner’s plot or taking any adverse or coercive action against the petitioner. It had also prayed for declaring that the respondent had no right to charge or demand NUF at enhanced rate.

Hearing adjourned: A division bench of the Sindh High Court on Wednesday adjourned hearing of a petition challenging the jurisdiction of Union Council Nazim and Town Nazim, Karachi to sell or allot place for weekly Fair Price Markets to anyone.

The bench, comprising Justice Sabihuddin Ahmed and Justice Zia Pervez, was hearing a petition filed by Weekly Fair Price Markets Association. The matter would come up on May 26.

The Karachi City District Government and others were made respondents through counsel, Abdul Mujeeb Pirzada and Khalid Jawaid, contending that according to Local Government Ordinance, Union Council Nazim and Town Nazim do not possess authority to sell or allot plots for Weekly Fair Price Markets to any interested party all over Karachi.

Suleman Habibullah AAG, Sindh submitted that Karachi City District Government had not so far decided about the allotment of these markets.

The AAG submitted that plots in question would not be auctioned nor any third party interest created till the next date.