1. ' WAJIHUDDIN AHMED, J.---The High Court, through the impugned order, has dismissed a number of Constitutional petitions where, inter alia, the imposition and realization of octroi firstly, by the Union Council Gujro in District, Karachi East and subsequently by its successor viz. Town Committee Gujro was questioned. One such petition, C.P. No,D2722 of 1993, was tiled by the present petitioner. It is contended before us that the levy of octroi in the disputed area is unlawful and even mala fide as the upgradation of the Union Council Gujro to Town Committee Gujro has been designed to circumvent the effect of Baba Corporation (Pvt.) Ltd. v. Province of Sindh Karachi (PLD 1989 Karachi 136) as upheld in Union Council v. Baba Corporation (Pvt.) Ltd. (1993 SCM R 596). These precedents opined that the relevant schemes of the Karachi Development Authority (KDA) were deemed to be Urban areas and because the Union Council Gujro could only be constituted in respect of a Rural area such was not competent to levy octroi in respect of the lands comprised in the Housing Societies and schemes of the K.D.A.
2. ' Our attention has also been drawn to section 7 of the Sindh Local Government Ordinance, 1979, which is relevant to declaration of a town as seems to have been occasioned in the instant case.
3. Such section is as below:-- "(7)(1) Any area declared as union, town, municipality or city shall, as far as possible be compact, and contiguous with territorial unity.
(2) The population of a local area shall in the case of-
(a) a union be such as may be specified by Government;
(b) a town be between five thousand to twenty five thousand;
(c) a municipality be between twenty five thousand to five lacs;
(d) a city be above five lacs.
(3) Government may, for reasons to be recorded, waive any of the aforesaid characteristics while delimiting a local area."
4. A perusal of the reproduced section would show that as far as possible a town shall be compact, and contiguous with territorial unity." Besides, population thereof would be between five thousand to twenty five thousand. It is urged that the areas of the upgraded entity are neither compact nor contiguous and even the quantum of the population exceeds twenty five thousand. The Government also has not been shown either to have waived any of such characteristcis or recorded reason therefor.
5. ' Significantly, the disputed area, we note, was already a part of the Urban area of K.D.A. And therefore, of the city of Karachi and such perhaps could not be relegated to the status of a town in contravention of section 7(1)(b) and (d) of the 1979 statute.
6. ' The questions, raised as above, require examination. The petition, accordingly, is allowed and leave to appeal is granted.