Law:

Section:

Sindh Local Government Ordinance (XII of 1979)--- ----S.53---West Pakistan Municipal Committees Octroi Rules, 1964, 8.225--­Constitution of Pakistan (1973), Art.199---Grant of Octroi Contract to petitioner---Government in exercise of supervisory powers recalled such contract and ordered re-auction---Validity---Government under provision of S.53, Sindh Local Government Ordinance, 1979, have been conferred very wide powers to take action in terms of its sub-clauses (a) to (d) of cl. (3) without any restriction or prohibition---Such action, however, could only be taken by the Government if anything was done or intended to be done by a Local Council which in the opinion of the Government was not in conformity with law--­Government had not passed a speaking order to point out that anything done at auctioning octroi could be termed as having been done against any provision of law to enable it to exercise jurisdiction so vested in it---Order of Government recalling octroi contract and ordering reauction being not sustainable was declared to have been passed without lawful authority and of no legal effect. JUDGMENT IMAM ALI G. KAZI, J: --The petitioners Messrs Zahid Hussain Shah, a firm that claims that they have been taking contracts to collect octroi on behalf of certain local councils. On 10-4-1991, the petitioners offered the highest bid of Rs.1,803,000.00 to the Union Council Landhi (respondent No.2) for collecting octroi on its behalf on the goods brought in within the jurisdiction of that council for the year 1991-92. Their such offer was required to be confirmed by the Divisional Auction committee appointed by the Government under their Notification No.SO-2/TC-VII(5)/87 dated 15th May, 1988 as the amount offered for collecting the octroi taxes did not exceed Rs.5 million. The meeting of the Divisional Auction Committee, Karachi was held on 13-4-1991 wherein their offer was duly confirmed. The approval of their bid by the Divisional Auction Committee was followed by execution of a valid agreement with the said union and they made required payments to the Union Council and made arrangements for commencing their business. Long thereafter the petitioners learnt…

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