LAHORE: Chief Justice Mian Saqib Nisar on Saturday directed Syed Babar Ali Shah of the Packages Industries to deposit Rs500 million with the Supreme Court as a token amount to be adjusted against unpaid rent for using a state land since expiry of lease in 2015.

A two-judge bench headed by the chief justice also ruled that the land leased out to the industry would be put to sale through open bidding instead of extension in the lease deed.

A civil society member, Abdullah Malik, had filed an application to the court challenging the possession of the Packages Industries on the state land measuring 231 kanals and 19 marla despite the expiry of the lease. He complained that the industry had not been paying a single penny to the government against its possession and also established a shopping mall on the leased land in violation of the law.

Banks surveyors to assess actual rent

Senior lawyer Dr Parvez Hassan appeared on behalf of Syed Babar Ali Shah and stated that the land was first given to his client in 1955 on a 30-year lease for the purpose of establishing industry. The lease was extended for another 30 years in 1985 while an application for the extension of the lease was pending with the authority concerned since 2015, he added.

However, the counsel maintained that the shopping mall had not been constructed on the leased land but the purchased land of the industry. Chief Justice Nisar took strong notice of the inordinate delay in decision on the application for the extension of the lease. He said the officials involved in the delay had been enabling the industry to prolong its possession on the land unlawfully.

Later, the Lahore deputy commissioner and member (colonies) of Board of Revenue (BoR) appeared on the court’s direction. Explaining the delay in decision on the application, the member (colonies) stated that the government had not made any policy to revise the leases of the state land rather decided to auction them.

The bench observed that the inaction on the part of the government officials caused an annual loss of Rs200 million to the national exchequer.

Dr Hassan assured the chief justice that his client was ready to pay rent for the land’s possession after the expiry of lease whatever amount the court would determine.

At this, Chief Justice Nisar directed the counsel to deposit Rs500m with the court within a week as a token amount for the rent to be determined by a team of banks surveyors. He also asked the counsel to submit by Monday a list of top five banks surveyors to be selected for the purpose of ascertaining the amount of the rent. The chief justice also directed the BoR to hold demarcation of the whole land to examine whether the industry had encroached upon any state land.

Meanwhile, the court also issued notices to the lessees of 32 petrol pumps in Lahore who, according to the DC, had been holding the possession of the land despite cancellation of their lease since 2017.

Published in Dawn, January 6th, 2019