Law:

Section:

Balochistan Local Government Act (V of 2010--- ----Ss. 110 & 111---Property of Metropolitan Corporation rented out to a lessee/café owner---Increase in rent---Litigation between parties confined to determination of rent---Parties using pretext of pending litigation to enter into a compromise agreement where under the cafe was to be demolished and replaced by a multistoried (commercial) building---Legality---Held, that said agreement was completely beyond the purview of existing litigation, which was the determination of rent---Lessee and Metropolitan Corporation had used the pretext of the present petition to embark upon a venture for individual personal benefit---Cafe was the sole cafe used by the inhabitants of the city as well as the members of legal fraternity---Metropolitan Corporation did not consider the public interest of the inhabitants of the city---Agreement was also against the provisions of the Balochistan Local Government Act, 2010, and contravened impugned order of the High Court---No consent or approval could be accorded to such an agreement---Supreme Court remanded the case to the High Court accordingly. Property in question was rented out to the lessee by the Metropolitan Corporation. Lessee was running a café at the property. Metropolitan Corporation enhanced the monthly rent from Rs. 6500 to Rs. 50,000. High Court in agreement with both parties ordered that cafe in question was the sole café used by the inhabitants of city as well as the members of legal fraternity, as such, the lessee shall improve the standard of plantation, food, crockery, fixtures and furniture etc., without structural change and further construction, and that, being a national asset, neither would be the café in question converted into commercial plaza, nor would the open space be reduced by further construction. Lessee and Metropolitan Corporation entered into a (compromise) agreement whereunder the café was to be demolished and replaced by a multistoried building having a bakery, hotel, showrooms, halls and offices and the monthly rent payable to the Metropolitan Corporation would be Rs. 50,000. Said agreement was completely beyond the purview of existing…

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