Law:

Section:

(a) Karachi Development Authority Allotment Regulations-------Reglns. 6(d) & 23---Allotment of plot---Power to enhance rates of occupancy value---Prospective effect of the enhanced rates---Karachi Development Authority could not enhance the rate of occupancy value without approval of the Provincial Government---Even if such approval was accorded, the new rates would not exceed 3 % of the original occupancy value and could only apply prospectively and not to the allotments made earlier. Abdul Majeed v: K.D.A. 1992 MLD 2401 ref. (b) Karachi Development Authority Allotment Regulations--- ----Reglns. 6(d) & 23---Contract Act (IX of 1872), S.74---Constitution of Pakistan (1973), Art.199---Constitutional petition---Occupancy value rates, enhancing of---Charging of impost---Dispute was with regard to the increase of rates of the occupancy value and charging of the impost--­Principles---Impost could neither be treated as a tax levied under statutory authority nor a fee for services rendered---Impost could only be treated as penalty for breach of contract, which could be claimed under S.74 of the Contract Act, 1872, provided that was reasonable and did not exceed the amount mentioned in the contract---Authorities could riot claim mark-up on non-utilization fee and the maximum limit must be confined to 3% of the original occupancy value---Demand made by the authorities was set aside---Petition was allowed in circumstances. JUDGMENT SABIHUDDIN AHMAD, J.--- The predecessor-in-interest of the petitioner was allotted a plot of land measuring about 240 sq. yards vide allotment order, dated 19-4-1975 and possession was delivered to the allottee on 3-5-1975. Thereafter, the scheme under which the allotment had been made was transferred to the Karachi Metropolitan Corporation, which undertook to fulfil obligations undertaken by the respondent No.1. The petitioner thereafter purchased the allotments rights from the original allottee and transfer was effected in the name of the petitioner vide transfer order, dated 22-8-1997. Subsequently, a lease was also executed in her favour by the K.M.C. Later on the scheme appears to have been retransferred to the respondent No. 1.…

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