1. Brief facts of the instant Civil Revision are that petitioner obtained lease for collection of lease money for cycle stand for Regency Plaza, Faisalabad out side the State Bank for the year 1996-97.
2. Period expired on 30-10-1997. The petitioner filed a suit for declaration that he was entitled to retain the lease on the basis of Letter No.746, dated 17-7-1982 for the next five years after payment of enhanced 10% lease money captioned a Leasing out of Municipal Shops and other commercial units". He also prayed for interim injunction. The learned trial Court granted him temporary injunction. The respondent filed an appeal and the learned Appellate Court vide judgment dated 2-1-1998 reversed the finding of the learned trial Court and set aside the impugned order passed by the learned trial Court on the reasoning that the present petitioner/plaintiff has based his suit on the impugned Notification which stood overruled after enforcement of Local Councils (Lease)
3. Rules, 1990 and the grant of ad interim injunction restraining the respondent/defendant from leasing out the disputed cycle stand was without lawful authority. Against this judgment the instant Civil Revision has been filed.
2. I have heard the learned counsel for the parties and carefully perused the record. Learned counsel for the petitioner submits that the learned Appellate Court has passed this judgment while placing reliance upon "The Punjab Local Councils (Lease) Rules, 1990", these rules have not superseded and cancelled the earlier Notification dated 17-7-1982 which entitled the petitioner to retain the lease for the disputed cycle stand up to the period of five years subject to the payment of 10% annual increase and the respondent Municipal Corporation has already granted the lease upon 10% annual increase to one Rana Muhammad Rafiq son of Rehmat Ali. Learned counsel for the respondent submits that Notification dated 11-4-1990 has force of law as these rules are called the Punjab Local Councils (Lease) Rules, 1990 and these have come in force at once. According to these rules the Local Council is restrained to lease out any public auction for a period not exceeding one year and that is also through conducting an auction and giving public notice not less than one daily newspaper and at least seven days before the date fixed for auction. He has also admitted that the auction given to Rana Muhammad Rafiq is also hit by these rules and the respondent is reviewing the same.
4. 3.The contention raised by the learned counsel for the petitioner is not convincing as the copy of Letter No. S-III/2-11/80, dated 17-7-1982 on the subject "Leasing out of Municipal Shops and other Commercial Units" allows in supersession of the existing intructions contained in this Department's memorandum dated 31-7-1980 that after a period of expiry of leases the lease is allowed to remain with the lessee subject to 10% incresae in rent up to a period of 5 years and if the condition of negotiation is not acceptable to the lessees or parties concerned fail to arrive at an agreed decision before the expiry of the lease period the shops/commercial units should be resumed and re-auctioned according to the prescribed procedure.
5. 4.The Punjab Local Councils (Lease) Rules, 1990 came into force on 11th April, 1990, Rule 2 is reproduced as under:--
2. Lease of collection rights.--A Local Council may lease out by public auction for a period not exceeding one year, the collection rights of tax, fee, rate, toll, cess or other charges levied by a Local Council." and Rule 4 prescribes procedure of auction where it is provided that: Rule 4. Procedure of auction.--(1) For the conduct of an auction a public notice not less than one daily newspaper and at least seven days before the date fixed for auction shall be given by the Local Council.
6. (2)The notice shall contain the date of the meeting of the Local Council to be held for considering the acceptance of bids made in an auction: ' Provided that if the said meeting is not held for any reason then the meeting shall be held within seven days of the date of the auction: ' Provided further that the first auction for the relevant year shall be held at least two months before the start of the financial year and no subsequent attempts, if any, shall be made after fifteen days from the first attempt.
7. (3)No lease shall be granted through negotiation, persuasion or any method other than open auction unless two attempts of auction have been made.
8. (4).....................................
9. (5)......................
10. The contention of learned counsel for the petitioner that these rules have not superseded the Notification, dated 17-7-1982 is without force. The framers of Punjab Local Councils (Lease) Rules, 1990 have discouraged the negotiation as envisage in Rule 4(3) and lease being a grant cannot create any right in favour of the lessor, therefore, finding no legal infirmity in the judgment of the learned Appellate Court the instant Civil Revision is dismissed in limine.