Legal Case Summary

Case Details
Case ID 0b15a6ff-9d9d-44cf-be26-76260488737b
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Case Number Constitutional Petition No. 1237 of 2010
Decision Date Jul 15, 2013
Hearing Date Mar 12, 2013
Decision The Sindh High Court, presided over by Justice Aqeel Ahmed Abbasi, dismissed the Constitutional Petition No. 1237 of 2010 filed by Messrs FORD RHODS SIDAT HYDER AND COMPANY through Chairman against JAMES FINLAY LTD. and another. The petitioner challenged the judgment of the VIth Additional District Judge Karachi and the Rent Controller regarding the fixation of fair rent under the Sindh Rented Premises Ordinance, 1979. The court examined the application under Section 8(1) of the Ordinance, which allows the Rent Controller to determine fair rent based on factors such as the rent of similar premises, rise in construction and repair costs, imposition of new taxes, and the annual value of the premises. The petitioner argued that the rent increase was unlawful and contrary to the rent agreement, while the respondent maintained that the fixation followed legal provisions. After thorough analysis, the court concluded that the Rent Controller had acted within his jurisdiction and that the lower courts' decisions were valid. The concurrent findings by the lower courts were upheld, and no errors or arbitrariness were found that would warrant interference by the High Court. Consequently, the petition was dismissed without any order as to costs.
Summary In Constitutional Petition No. 1237 of 2010, the Sindh High Court addressed a dispute between Messrs FORD RHODS SIDAT HYDER AND COMPANY through Chairman (petitioner) and JAMES FINLAY LTD. and another (respondent) concerning the fixation of fair rent under the Sindh Rented Premises Ordinance, 1979. The petitioner challenged the Rent Controller's decision to increase the rent from Rs.3.01 to Rs.40 per square foot per month, arguing that it was exorbitant and contrary to the existing rent agreement, which stipulated a 25% increase every three years. The respondent contended that the increase was justified based on similar premises' rents, rising construction and repair costs, new taxes, and the annual value of the premises. The Sindh Rented Premises Ordinance empowers the Rent Controller to determine fair rent by considering factors like comparable rents, cost rises, tax impositions, and property value. The petitioner further appealed the Rent Controller's decision through F.R.A No.172 of 2009, which was subsequently modified by the Appellate Court to reduce the rent to Rs.27 per square foot per month, citing considerations of similar premises and fairness. However, the High Court upheld the modified decision, emphasizing that the Rent Controller acted within legal boundaries and that the lower courts' concurrent findings were appropriate. The court referenced several precedents, including cases like Fazal Hanan v. Mukarram Jan and Sultan Ali v. Mst. Khatija Bai, to reinforce the legality of rent fixation under the Ordinance. Ultimately, the High Court found no grounds of illegality, arbitrariness, or perverse findings in the lower courts' decisions and dismissed the petition without awarding costs. This case underscores the judiciary's role in balancing contractual agreements with statutory provisions to ensure fair rent determination, reflecting broader themes of property law and tenant-landlord relations in Pakistan.
Court Sindh High Court
Entities Involved Sindh High Court, Rent Controller, Constitution of Pakistan, Sindh Rented Premises Ordinance, 1979, F.R.A No.172 of 2009, First Rent Appeal No.172 of 2009
Judges AQEEL AHMED ABBASI, J
Lawyers Fazle Rabbi, Mian Mushtaq Ahmed
Petitioners Messrs FORD RHODS SIDAT HYDER AND COMPANY through Chairman
Respondents JAMES FINLAY LTD. and another
Citations 2013 SLD 2889, 2013 YLR 2541
Other Citations Fazal Hanan v. Mukarram Jan 2003 CLC 397, Hafiz Mansoor Ahmed and others v. Messrs Rajput Films Corporation 1998 CLC 963, Volkat (Pakistan) Ltd., Karachi v. Interavia Pakistan Ltd., Karachi 2001 SCMR 671, Qazi Majid Ali v. State Life Insurance Corporation of Pakistan SBLR 2011 Sindh 461, Messrs Mermaid Constructions (Pvt.) Ltd. v. State Life Insurance Corporation PLD 1999 Kar. 322, Nighat Riaz v. Manzoor Hussain 1985 MLD 1533, Mst. Fatima and 3 others v. Abdul Jabbar 1987 MLD 321, Messrs Olympia Shipping and Weaving Mills Ltd. and another v. State Life Insurance Corporation 2001 SCMR 1103, Shahid Ahmed alias Shahid Mukhtar and 9 others v. Mst. Rasheeda Khatoon PLD 1996 Kar. 494, Sultan Ali v. Mst. Khatija Bai 1995 CLC 1441, Messrs Abdul Majeed Chawla and Sons v. Anwar Yahya 1990 MLD 1711, Unreported judgment passed in FRA No.610/1998 page 10
Laws Involved Sindh Rented Premises Ordinance, 1979, Constitution of Pakistan
Sections 8, 9, Art.199