Government Servants Housing Foundation

2013 CLC 1566 LAHORE-HIGH-COURT-LAHORE Judicial Precedent

R. 22(a) & provisoPunjab Government Servants Housing Foundation Act (X of 2004), S.3Constitution of Pakistan, Art. 199Constitutional petitionGovernment Servants Housing FoundationConditions for allotment

House was allotted to the petitioner, which after default in payment by the petitioner was then re-allotted to another member of the Housing Foundation, who within a period of three months, sold the same to yet another member of the Housing Foundation

Contention of the petitioner was that per R.22(a) of the Punjab Government Servants Housing Foundation, 2005; the new allottee could not have alienated the house within one year of delivery of possession

Validity

Third party rights had been created in relation to the house in question which had the protection of a valid notification issued by the Provincial Government whereby the condition of one year was not to apply in case of first sale/transfer of the allotted house

No unconscionable dealing was attributed to the second allottee, therefore High Court did not have any valid reason to interfere with the legal effect of the transfer made in favour of the respondent

High Court however observed that the notification although had been in existence for three years but had not yet been incorporated in the typed-out/printed version of the Punjab Government Servants Housing Foundation Rules, 2005 and it appeared that for the purpose of informing the ordinary members of the Housing Foundation, the Rules in original form were shown but where Foundation was so inclined, the amendment to the Rules was brought out to facilitate the persons who may be favoured/accommodated

Said proviso to Rule 22(a) of the Punjab Government Servants Housing Foundation Rules, 2005 encouraged allottees of the houses to sell their houses even before taking possession thereof at a cash premium made available from the real estate market

Respondent Housing Foundation was rendering a service at a subsidized price to retired civil servants, by guaranteeing them accommodation in their old-age, however by virtue of said proviso to R.22(a) of the Punjab Government Servants Housing Foundation Rules, 2005; speculators had entered into the affairs of the Housing Foundation whereby conduct of the Housing Foundation was affected by commercial considerations

High Court directed the Provincial Government to look into the commercial effect of the proviso to R.22(a) of the Punjab Government Servants Housing Foundation Rules, 2005 that had been added and the incentive that the same gave to retired government servants to sell their allotted houses at a profit which had been constructed using public money

High Court further observed that such an opportunity to allottees was transferring good public money into speculative ventures for cash by ambitious retired civil servants and therefore Provincial Government should accordingly review the effect of R.22(a) of the Punjab Government Servants Housing Foundation Rules, 2005

Constitutional petition was disposed of, accordingly.