Impact of Unregistered Lease Deed in Ejectment Proceedings
CIVIL LAWRENT
The Lahore High Court reviewed a constitutional petition filed by M/S Phipsons Company (Private) Limited against the final order and judgment passed by the Special Judge (Rent) and Appellate Court, respectively. The case concerned the ejectment petition initiated by Zahid Moyeen, a Mutwalli (caretaker) of Ghulam Rasool Trust, seeking to evict the petitioner from a basement property in Lahore.
Key Issues:
The petitioner contested that their application for leave to contest was within the statutory period of ten days. The court had to determine if the day of first appearance should be included in this calculation. The petitioner argued that the ejectment petition was invalid as it was filed by Zahid Moyeen individually, without the Trust’s direct authorization. The petitioner further claimed that a lease agreement from 1972 extended their lease to 99 years, contrary to the respondent's assertion of a ten-year lease.
Legal Analysis:
Timeliness of Leave to Contest: The court referred to Section 8 of the Punjab General Clauses Act, 1956, which mandates excluding the first day when calculating a period of days. Based on precedent cases such as Abdul Karim vs. Shakeel Ahmad (2012 CLC 261) and Mst. Saima Zameer vs. Muhammad Javed Iqbal (2017 CLC 1695), the court concluded that the petitioner's application for leave to contest was indeed filed within the ten-day period.
Authority of Mutwalli: The court examined the powers granted to the Mutwalli under the arbitration award of 18.06.1989, which authorized the Mutwalli to lease properties and engage in legal actions for the Trust. Consequently, the court found that Zahid Moyeen had the authority to file the ejectment petition, satisfying the definition of “landlord” under Section 2(d) of the Punjab Rented Premises Act, 2009.
Validity of Lease Agreement: The petitioner’s claim of a 99-year lease was scrutinized under the requirement for such agreements to be registered, as stipulated by the Registration Act, 1908, and the Transfer of Property Act, 1882. The court referenced Habib Bank Limited vs. Dr. Munawar Ali Siddiqui (1991 SCMR 1185) and similar cases, affirming that an unregistered lease exceeding one year is considered a month-to-month tenancy. Hence, the petitioner’s lease was not legally binding beyond the stipulated terms.
Court’s Conclusion: The Lahore High Court concluded that the application for leave to contest was filed within the statutory period. The Mutwalli was authorized to file the ejectment petition. The lease agreement for 99 years was invalid due to non-registration, and thus the tenancy was considered month-to-month. While acknowledging the erroneous dismissal of the leave to contest application on timeliness, the court upheld the ejectment on substantive grounds, dismissing the petition.
Contact Us:
For expert legal assistance in landlord-tenant disputes, lease agreements, and related matters, contact AUJ LAWYERS LLP. Our experienced team in Lahore is dedicated to providing comprehensive legal services to protect your rights and interests.
We are here to help
Talk to our lawyers today. We tailor our services around your legal needs so that we can reach the desired outcome together.