Supreme Court (SC) has ruled that the Board of Trustees of Karachi Port Trust (KPT) is not authorized under the law to create housing societies for its employees and lease, transfer or sell the property/land of the port to them.

The act of board of trustees of creating housing societies for employees of KPT is contrary to the very mandate of the KPT Act and is declared to be wholly illegal being void ab initio, a detailed order of three-member bench of SC stated in a case pertaining to KPT Employees Housing Society on Mai Kolachi Road Karachi.

The bench headed by Chief Justice of Pakistan (CJP) Justice Gulzar Ahmed in its order explained that on a detailed examination of the provision of the KPT Act, it is crystal clear that nowhere in the Act, the Board of Trustees of the Port of Karachi have been given power or authority to lease out, transfer or sell KPT property/land for residential purpose to its employees ie its officers and servants.

The Federal Government has created by a statutory instrument, the KPT, and has vested in the Board of Trustees the management of the affairs of the Port. Thus, the Board of Trustees of the Port of Karachi acts as Trustees on behalf of the Federal Government in respect of management of the affairs of the Port, the order stated.

Court made it clear that the power of managing the affairs of the Port does not give power and authority to the Board of Trustee to arrogate to itself or to any officer and servant of KPT, the very land of the Port which is vested in trust with the Board of Trustees.

The Order further stated that it was argued before the court by the counsel for KPT that the sanction of Federal Government has been obtained for leasing, transferring or selling of KPT property/land for housing societies to its officers and servants.

But in the very report of the Chairman, filed before this Court by way of CMA No.34-K/2019, there is no mention of obtaining of such approval from the Federal Government nor copy of such Notification(s) or order(s) of the Federal Government is attached with the application.

SC declared all leases, transfers or selling of property/land of the Port of Karachi by the Board of Trustees to its officers and servants illegal and cancelled such leases, transfers or sale of the port property/land .

SC declared that the whole of the property/land leased, transferred or sold to the officers servants/workers will immediately revert to the Port of Karachi to be used strictly in accordance with the KPT Act and ordered the Board of Trustees to only manage the affairs of the port as laid down in the KPT Act and nothing more.

SC ruled that the officers, servants/workers are only entitled to payment of their salaries, fees and allowances to be sanctioned by the board for their services and nothing beyond it is provided in Section 21 of the KPT Act.

SC also declared that if any amount has been received by the KPT from any of its officers, servants/workers in respect of lease, transfer or selling of the Port land, the Board of Trustees of KPT shall immediately refund such amount to their offices, servants/workers and shall also pay, as compensation, the difference between the values of the money when the same was received and the value of money currently prevailing.

SC ordered the federal government, which opposed granting of lease, transfer or sale of the KPT land to the officers servants/workers of the board shall look into the matter and deal with the Board of Trustees in accordance with law.