1998CLC511 (PLP)

This petition under Article 19 of the Constitution of Islamic Republic of Pakistan, 1973 calls in question an order, dated 13‑3‑1997 of respondent No. l whereby the petitioner was directed to pay commercialization charges at the rate of 25% of the market value which was determined at the rate of Rs.1,87,500 per Marla.

2. The facts leading to the filing of this petition are that the petitioner was allotted a residential Plot No.593‑B in People's Colony, Faisalabad. Later on, the District Housing Committee allowed commercialization of various plots in People's Colony including that of the petitioner in accordance with the policy of the Government of the Punjab as laid down in Letter No.DHC‑Fsd‑95/885, dated 18‑4‑1995 which reads as under: "The commercialization of residential plots will not be allowed except on roads/streets referred to in para. (iii) and subject to payment of commercialization fee @ 25 % of the prevailing market rates of the commercial plots in the area. " According to the respondents, the market price is to be worked out at the rate of Rs.1,87,000 per Marla while the petitioner claims that the value should be worked out at the rate of Rs.42,000 per Marla. The petitioner had filed a representation against the order which was not being decided, obliging the petitioner to file a Writ Petition No.3467/1997 which was disposed of on the undertaking of the respondents that the same shall be decided within a week: On 13‑3‑1997, the petitioner's representation was rejected. Hence this petition.

3. It is common ground between the parties that the commercialization of the plot was allowed in terms of the policy of the Government of the Punjab laid down in Circular No.SO(DII) HP&EP 5‑2/81 (Pt‑II), dated 27‑3‑1993, the relevant paras. of which read as under:‑‑‑ (iv) The commercialization of residential plots will not be allowed except on roads/streets referred to in para. (iii) and subject to payment of commercialization fee 0 25 % of the prevailing market rates of the commercial plots in the area. (v) The market value of commercial plots will be determined on the basis of the commercial rates laid down for the area in the valuation tables prepared and adopted by the District Collectors for assessing the stamp duty and registration fee payable on the transfer of urban property. (vi) The commercialization fee so assessed will be charged in lump sum and in advance without making any exception/exemption in this regard by any officer/Authority; There is no dispute that according to the aforesaid policy the petitioner is liable to pay conversion charges at the rate of 25 % of the market value of the property. Again the learned counsel for the parties are agreed that the market value has to be determined on the basis of the rates laid down in the valuation table prepared and adopted by the District Collectors for assessing stamp duties and registration fee payable on transfer of urban properties. This is so provided in sub‑para. (v) of the policy which has been reproduced above. It may pertinently be stated that the valuation table is prepared in pursuance of section 27‑A of the Stamp Act, 1887 by every Collector of the District.

4. According to the respondents, the market rate of the properties as given in the valuation table issued by the District Collector, Faisalabad on 2‑4‑1994 was Rs.1,87,000 per Marla. The learned counsel for the petitioner has however objected to the adoption of that price for determining the market value of the plot in dispute by pointing out that the rate of Rs.1,87,000 per Marla. is the value fixed in the Table for a constructed plot. This contention is fully borne out by the relevant entry which reads thus: "Satiana Road Commercial (constructed) 1,87,000 per Marla". Admittedly, the plot in question was at the relevant time open and vacant and no construction had been raised thereon. Obviously therefore, the respondents acted clearly in excess of their jurisdiction in working out the market value of the plot at the rate of Rs.1,87,000 per Marla. On the other hand, they should have applied the rate of Rs.42,000 per Marla fixed in the schedule for vacant plots.

5. In the impugned order, the committee headed by respondent No.l has taken the view that the plot in question was situate at main road and that the rate of Rs.42,000 per Marla could not be applied. This approach, to say the least, is wholly erroneous. It is clearly provided in the commercialization policy that the construction charges would be worked out on the basis of rates given in the Valuation Table issued by the Deputy Commissioner/Collector in terms of section 27‑A of the Stamp Act, 1887. There is nothing in the policy which permits the respondents to deviate from this rule on the basis of location of the plot. If a plot falls within a particular area, the rate fixed in the valuation table has to be applied irrespective of other considerations. In view of the above, this petition is allowed; the impugned order is declared to be without lawful authority and of no legal effect; the respondents are directed to work out the charges for commercialization at the rate of Rs.42,000 per Marla and refund the excess amount, if any, received from the petitioner. No order as to costs. A.A./A‑204/L Petition accepted.