Licensor and Licensee

Adverse claim against licensor-A licensee is not legally in a position to set up a claim adverse to or against the licensor or in himself.

Shop in dispute belonging to Karachi Municipal Corporation, was transferred to petitioner by original licensee and transfer regularised by said Corporation

Corporation charged double rent from petitioner on ground of unauthorised construction of upper portion of shop allegedly made by petitioner

Upper portion was in fact already in existence when shop was in occupation of original licensee and no objection was taken by Municipal Corporation thereto nor they demanded any extra rent for same from him and transfer of shop in favour of petitioner was regularised alongwith upper portion

Held, petitioner could not, be burdened with greater liability than original licensee or with responsibility of having constructed upper portion nor could he be charged any extra rent for upper portion

Karachi Municipal Corporation could increase licence fee if law permitted them to do so but they would not have any right of cancelling allotment on account of superstructure upon shop or on account of non-payment of any extra rent nor they would demolish said superstructure.