Lines Area Makro-Habib outlet: review petitions dismissed

28 Aug, 2015

The Supreme Court Thursday dismissed identical review pleas filed against its 2009 verdict that directed Makro-Habib cash & carry to close outlet from Lines Area Karachi by restoring 4.9 acres of land - on which outlet was built - to its original status of a playground.
Announcing a 32-page judgement during 2009 in a suo motu notice of the matter, the then Chief Justice Iftikhar Muhammad Chaudhry had issued directives to the City District Government Karachi (CDGK) to develop and maintain 4.9 acres land as playground or use it for a purpose permissible under the law. "The playground was and will remain an amenity plot falling within the jurisdiction and zoning/regulatory control of the CDGK", the judgement held.
The Supreme Court had ruled that federal government, acting in the name of former president Pervez Musharraf, had no legal authority to grant leasehold rights to the Army Welfaroe Trust (AWT) which reportedly sub-leased the land to MHPL to build a grocery outlet. A three-member bench led by Chief Justice Jawwad S Khawaja resumed the hearing of review petitions filed by Makro-Habib Pakistan Limited (MHPL), Army Welfare Trust (AWT), Federation of Pakistan and a Karachi-based NGO Shehri in the matter. Appearing on behalf of the MHPL, senior advocate Anwar Khalid contended that his client entered into an agreement with good faith that the AWT had lawfully obtained the lease from the defence ministry, investing more than 800 million rupees to set up a store in a backward area.
He argued the outlet provides employment to about 350 families and has played a major part in the economic revival of that highly depressed and slum area, adding that suo motu notice power cannot be exercised to intervene public rights.
Anwar pleaded that Sindh High Court had been invoked to decide the title of the land for government of Pakistan, AWT or CDGK, saying the area would be devastated economically if his client''s outlet demolished. The bench observed that the land measuring 4.9 acres is situated in a central and densely populated area of Karachi and the national kittly was subjected to a substantial loss as the AWT was just paying Rs 6,020 against the lease. On July 31, 2006, the AWT sub-leased the land to Makro-Habib for an initial term of 30 years after receiving an advance rent of Rs 100 million based on a variable annual amount of at least Rs 17.5 million and a maximum equivalent to one per cent of the annual turnover of the outlet. Chief Justice Jawwad S Khawaja said that the court has nothing to do with the AWT financial benefits which had been set up for the objective of welfare of serving and retired personnel of the armed forces and their families; however, he observed that allocation should be made to the trust through permissible means. He observed that government property must not be given for peanuts, saying the court has nothing to do with allocation to the AWT and observed, "Let it be made through budgetary allocation through representatives of the people of Pakistan in the Parliament". "Review petitions in the matter dismissed reasons of which would be recorded later", the bench concluded.

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