SUPREME COURT OF PAKISTAN 
(Original Jurisdiction) 
 
 
PRESENT: 
 
 
 
Mr. Justice Gulzar Ahmed, CJ 
 
 
 
Mr. Justice Ijaz ul Ahsan 
 
 
 
  
 
 
 
 
 
 
 
 
REPORT NO.128-K OF 2021 
 
[Report on behalf of Shehri-Citizens Vs. Federation of Pakistan 
and others] 
 
AND 
 
REPORT NO.135-K OF 2021 
 
[Regarding KMC Officer Co-operative Housing Society land of 
abounded KMC Sewage Vs. Federation of Pakistan and others] 
 
AND 
 
REPORT NO.146-K OF 2021 
 
[Chairman KMC Officer Co-operative Housing Society Owais 
Qarni Town at Abandoned KMC Sewage Farm Vs. Federation 
of Pakistan and others] 
 
 
In attendance 
: Mr. Ayyaz Shaukat, DAG 
Mr. Fauzi Zafar, 
Addl. A.G., Sindh 
 
Mr. S.M. Saulat Rizvi, 
Addl. A.G., Sindh 
(via video link from Karachi) 
 
  
 
: Mr. Abrar Hasan, ASC 
Mazhar Khan, Chairman 
Qazi Mumtaz Iqbal,  
General Secretary 
(For 
KMC 
Officers 
Co-operative 
Housing Society) 
 
  
 
 Mrs. Amber Alibhai, In person 
Muhammad Iqbal Memon, 
Commissioner, Karachi 
Muhammad Shahab Aslam, 
A.C. Revenue, Karachi 
Mrs. Azra Muqeem, 
Legal Advisor, KMC 
Dr. Saeed Ahmed Qureshi, 
Focal Person to Chief Secretary, 
Sindh 
(all via video link from Karachi) 
 
  
Reports No.128-K, 135-K and 146-K of 2021 
 
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Date of Hearing 
: 11.01.2022 
 
O R D E R 
 
 
 
GULZAR AHMED, CJ.- Since partition time, there 
exists in Karachi a plot of land measuring 1016 acres for 
Sewage Farm on Manghopir Road, Karachi, popularly known as 
Gutter Baghicha and the whole of the land is an amenity land 
and is meant for use of a park in the City of Karachi. This whole 
plot of land is now almost in the heart of the City of Karachi. 
The land of Gutter Baghicha belongs to Karachi Metropolitan 
Corporation (KMC) for developing it as a park and creating 
other amenities in it. With the passage of time, a certain portion 
of the land of Gutter Baghicha came to be occupied 
unauthorizely and it is alleged that some portion of it is 
occupied by Kachi Abadis while some part of it is occupied by 
factory or industry.  Graveyards also exist on some portion of 
this land. On some portion of this land there is KDA Treatment 
Plant TP-I, Incinerator Plant and also Pumping Station.  
2. 
 
KMC by law is mandated to establish and maintain 
parks in the City of Karachi and also to ensure that none of the 
lands meant for such purposes is occupied and encroached 
upon. KMC seems to have failed in securing the land of Gutter 
Baghicha measuring 1016 acres and allowed it to be 
encroached and there also seems to be some illegal allotments 
on portions of this Gutter Baghicha land. We, however, in the 
present case, are dealing with grant of 200 acres of land of 
Gutter Baghicha to KMC Officers’ Co-operative Housing Society 
Limited (hereinafter called the Society). On 27.12.2021, while 
Reports No.128-K, 135-K and 146-K of 2021 
 
- 3 - 
 
 
 
hearing matters relating to Civil Petition No.9 of 2010, which is 
a petition under Article 184(3) of the Constitution of the Islamic 
Republic of Pakistan, 1973, it was brought to the notice of the 
Court that 200 acres of land of Gutter Baghicha, which land is 
meant for the park for the people of the City of Karachi has been 
allotted to the Society. On the said date, the Chairman of the 
Society, appeared before the Court and requested for time to 
engage a counsel. The Society has filed its Report bearing 
No.146-K of 2021. 
3. 
 
We have heard the submissions of Mr. Abrar Hasan, 
learned ASC on behalf of the Society. We have also heard the 
submission of Mrs. Azra Muqeem, Legal Advisor, KMC, and also 
Mrs. Amber Alibhai, who has appeared in person on behalf of 
Shehri-Citizens for a Batter Environment.  
4. 
 
In the report filed by the Society, referred to above, it 
has attached a photocopy of Society letter dated 03.01.1993, 
addressed to the Minister for Local Government, Sindh, 
Karachi, wherein the Society has requested for grant of 200 
acres of KMC land in KMC Sewage Farm, Manghopir Road, 
Karachi i.e. Gutter Baghicha labelled as waste land. The letter is 
signed by one Abdul Hafeez, Chief Promotor of the Society. The 
Society has filed a copy of Minutes of Meeting held on 
06.03.1993 in KMC building under the Chairmanship of the 
Minister, Local Government, Sindh. In these Minutes on the 
subject of grant of 200 acres of land to the Society, the Minister, 
Local Government, appears to have passed an order that 200 
acres of waste KMC land at Sewage Form, Manghopir Road, 
Reports No.128-K, 135-K and 146-K of 2021 
 
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Karachi (Gutter Baghicha) may be granted to the Society for 
housing purposes at the rate of Rs.10/- per square yard as 
Occupancy Value and at the rate of Rs.15/- per square yard as 
Development Charges. These Minutes are contained in a 
document dated 09.03.1993 signed by Mohammad Irshad 
Ahmad, Minister for Local Government, Sindh. The Society 
again seems to have made an application to KMC Council 
Secretariat for grant of lease of 99 years, pursuant to the 
Minutes recorded in document dated 09.03.1993. Giving details 
for which the land is required i.e. for residential purposes of 
KMC employees requested that 200 acres of land may be 
allotted to the Society under Section 45(5)(i) of the Sindh Local 
Government Ordinance, 1979 (the Ordinance of 1979). The 
administrator, 
KMC 
passed 
a 
Resolution 
No.82 
dated 
11.03.1993, which is as follows: 
 
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There is a letter dated 25.07.1993, signed by Muhammad 
Siddique Dar, Section Officer-VI, Government of Sindh, Local 
Government, Public Health Engineering and Rural Development 
Department, 
addressed 
to 
the 
Municipal 
Commissioner, 
Metropolitan Corporation, Karachi on the subject of Grant of 
200 Acres of Waste KMC Land in Sewage Farm, Manghopir 
Road, Karachi (Gutter Baghicha) to the Society. The contents of 
the said letter are as follows: 
Reports No.128-K, 135-K and 146-K of 2021 
 
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“The Municipal Commissioner, 
Metropolitan Corporation, 
Karachi. 
 
Subject: GRANT OF 200 ACRES OF WASTE KMC LAND IN 
SEWAGE FARM MANGHOPIR ROAD, KARACHI TO 
KMC 
OFFICER’S 
CO-OPERATIVE 
HOUSING 
SOCIETY. 
 
 
Reference your letter No.SDLE/6335/93, dated 29-
5-1993, on the subject noted above. 
 
2. 
In exercise of powers conferred by section 45(5)(1) of 
the Sindh Local Government Ordinance, 1979, Government 
of Sindh are please to accord approval to the KMC Council 
Resolution No. 82, dated 11-3-1993, regarding allotment of 
200 Acres of Waste KMC land in Sewage Farm Manghopir 
Road Karachi in favour of KMC Officer’s Co-op. Housing 
Society for allotment to its registered members, at the rate of 
Rs.10/- per sq. yard occupancy value plus development 
charges at the rate of Rs.15/- per sq. yard, for residential 
purpose, on 99 years lease basis, on the terms and 
conditions specified in the above resolution. 
 
         SD/- 
(MUHAMMAD SIDDIQUI DAR) 
SECTION OFFICER-VI 
 For Secretary to Government of 
Sindh” 
 
5. 
 
The letter is signed by Section Officer for Secretary 
to Government of Sindh. The letter also does not mention that it 
is issued under the direction of the competent authority rather 
the 
Section 
Officer 
himself 
has 
accorded 
approval 
of 
Government of Sindh which is not legal as Section Officer is not 
shown to have power to accord approval of the Government of 
Sindh.   
6. 
 
The said letter mentions that in exercise of powers 
conferred by Section 45(5)(i) of the Ordinance of 1979, the 
Government of Sindh is pleased to accord approval to KMC 
Council Resolution No.82 dated 11.03.1993 regarding allotment 
of 200 acres of waste KMC land in Sewage Form, Manghopir 
Road, Karachi (Gutter Baghicha) to the Society for allotment to 
its registered members at the rate of Rs.10/- per square yard 
occupancy value plus development charges at the rate of 
Reports No.128-K, 135-K and 146-K of 2021 
 
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Rs.15/- per square yard for residential purposes on 99 years 
lease basis. It seems that some payments in respect of the land 
were deposited. On 03.08.1993, an allotment letter seems to 
have been issued by KMC of the said 200 acres of land to the 
Society. On the same day i.e. 03.08.1993, handing and taking 
over of possession was also made. On 11.08.1993, lease of the 
land was also signed and executed by KMC in favour of the 
Society and it was also registered. The Society appears to have 
prepared a layout plan in which it has provided plots of land for 
residential and commercial purposes. The Society, apparently, 
has made allotment of the plots to its members i.e. the 
employees of KMC. 
7. 
 
The learned counsel for the Society, in the first 
place, has contended that the plots have been allotted by the 
Society to KMC retired employees. We have asked the learned 
counsel to show whether the Society is for the retired employees 
of KMC, he admitted that the Society is not meant for the 
retired employees but of serving employees of KMC. The learned 
counsel further contended that in some cases the plots are in 
the name of widows of KMC employees. We have asked the 
learned counsel for the Society to show under what mandate of 
law KMC or the Sindh Government or the Minister of Local 
Government, Sindh, has granted the land to the Society. The 
learned counsel referred to provision of Section 45(5) clause (i) 
of the Ordinance of 1979. The learned counsel also contended 
that the Society has filed a Civil Suit in the High Court of Sindh 
Reports No.128-K, 135-K and 146-K of 2021 
 
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in which it has obtained a stay order in respect of the land in 
question.  
8. 
 
The legal Advisor, KMC has referred to Rule 10 of the 
Sind People’s Local Council (Land) Rules, 1975 (the Rules of 
1975) to contend that the land in question was rightfully leased 
out to the Society. On the other hand, Mrs. Amber Alibhai 
relying upon Report No.128-K of 2021 contended that the whole 
of the land of KMC Sewage Form, Manghopir Road, Karachi 
known Gutter Baghicha measuring 1016 acres is meant for a 
park for the City of Karachi and could not be allotted by KMC to 
its own employees for housing and commercial purposes and 
such grant/allotment/ lease is wholly illegal and prayed that 
the land allotted, granted and leased to the Society may be 
retrieved. 
9. 
 
As noted above, the learned counsel for the Society 
has placed complete reliance on Section 45(5)(i) of the 
Ordinance of 1979 to support the grant/allotment/lease of 200 
acres of land to the Society. Section 45 of the Ordinance of 1979 
is as follows: 
 “45. Contracts.- (1)  
Every 
council 
shall, 
within the budget grant, be competent to enter 
and perform all such contracts as it may 
consider necessary or expedient in order to 
carry into effect the provisions and purposes of 
this Ordinance. 
 
(2) 
 All contracts made by or on behalf of a 
council shall be :- 
 
(a) 
in writing expressed to be made in the 
name of the council; and  
(b) 
reported to the council by the Mayor or, 
as the case may be, Chairman, at the 
meeting next following the execution of 
the contract.  
 
Reports No.128-K, 135-K and 146-K of 2021 
 
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(3)  
All contracts shall, subject to the rules, 
be entered into after inviting competitive 
tenders or quotations: 
 
Provided that tenders or quotations 
involving expenditure exceeding such amount 
as may be prescribed shall be invited by a 
notice in a newspaper; 
 
Provided further that in case the lowest 
tender or quotation is not accepted, the 
authority competent to grant the contract, if 
other than the council, shall lay down in 
writing, and if the council itself, shall express in 
the 
resolution 
approving 
the 
tender 
or 
quotation, the reasons for not accepting the 
lowest tender or quotation. 
 
(4) All contracts for transfer by grant, sale, 
mortgage, lease or otherwise of immovable 
property or any interest and right thereto or 
disposal or sale of movable property or for 
leasing out rights to collect taxes shall, subject 
to the rules be entered into after inviting offers 
in an open auction : 
 
Provided that if the highest bid is not 
accepted by the council, approval in writing of 
Government shall be obtained, and Government 
shall, in its order give reasons for not accepting 
the highest bid : 
 
Provided further that a council may with 
the approval of Government enter into a 
contract without inviting offers in auction. 
 
(5) 
Notwithstanding anything contained in 
sub-section (4) its council may grant, sell, or 
lease out land at rates to be fixed in 
consultation with Government, to :- 
 
(i) 
Associations, organisations, individuals 
or any department or institution of the 
Federal or a Provincial Government for 
establishing, maintaining or extending 
education, 
religious 
and 
charitable 
institutions or for such other purposes 
for the benefit of the public, subject to 
the condition that if the land is not used 
for the purpose it was granted, the 
council 
may, 
after 
affording 
such 
association, organization, individual or 
department or institution, as the case 
may be, an opportunity to show-cause 
against the proposed action, resume 
such land alongwith structures, if any 
without any compensation; 
Reports No.128-K, 135-K and 146-K of 2021 
 
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(ii) land 
holders 
for 
adding 
to 
their 
holdings, alignments or small plots of 
not more than forty square yards at the 
market price likely to be obtained in 
auction; 
(iii) holders of lease for twenty years or 
more after the expiry of the lease, on the 
same terms and conditions. 
 
(6) Government may subject to the other 
provisions of this ordinance, make rules laying 
down the procedure to regulate the making of 
contracts and the execution thereof.  
 
(7) No contract executed otherwise than in 
conformity 
with 
the 
provisions 
of 
this 
Ordinance shall be binding on the council.”  
 
The reading of this provision shows that it deals with the 
matters relating to the Contracts. Sub-section (5)(i) of the above 
Section provides that notwithstanding anything contained in 
sub-section (4) its council may grant, sell, or lease out land at 
rates to be fixed in consultation with the Government, to 
associations, organisations, individuals or any department or 
institution of the Federal or a Provincial Government for 
establishing, maintaining or extending education, religious and 
charitable institutions or for such other purposes for the benefit 
of the public, subject to the condition that if the land is not 
used for the purpose it was granted, the council may, after 
affording 
such 
association, 
organization, 
individual 
or 
department or institution, as the case may be, an opportunity to 
show-cause against the proposed action, resume such land 
alongwith structures, if any without any compensation. It is 
apparent from the reading of this provision that it speaks of 
grant/sell/lease of the land to associations, organizations, 
individuals or any department or institution of the Federal or a 
Provincial Government and the purpose is also given that is for 
Reports No.128-K, 135-K and 146-K of 2021 
 
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establishing, maintaining or extending educational, religious 
and charitable institutions.  
10. 
 
The learned counsel for the Society has contended 
that this provision also contains that the land could be used for 
such other purpose also. We note that though “for such other 
purpose” is mentioned in the provision but it is also written that 
such other purposes for the benefit of the public. It was also 
noted that the words for such other purposes can only be read 
in ejusdem generis, in that, it has meaning confined to its 
earlier words that are educational, religious and charitable 
purposes. 
The 
land 
of 
200 
acres 
have 
been 
granted/allotted/leased by KMC to the Society for use of 
housing purposes of its own employees and also as the layout 
plan shows for commercial purposes. This provision of law does 
not at all provide that the Council could grant, sell or lease the 
land of KMC to its own employees for housing and commercial 
purposes. The land which is allowed to be granted, sold or 
leased, in the first place is to associations, organizations, 
individuals or any department or institution of the Federal or a 
Provincial 
Government 
and 
that 
too 
for 
establishing, 
maintaining or extending educational, religious and charitable 
institutions and for such other purposes for the benefit of the 
public. Obviously, the allotment of land for housing and 
commercial purposes to the employees of KMC will not be that 
for the benefit of the public. Thus, reading of the provision of 
Section 
45(5)(i) 
ibid 
did 
not 
at 
all 
provide 
for 
Reports No.128-K, 135-K and 146-K of 2021 
 
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grant/allotment/lease of a land to the Society for allotment to 
the employees of KMC.  
11. 
 
The Legal Advisor of KMC has referred to Rule 10 of 
the Rules of 1975, which reads as follows: 
10. 
Leasehold right to Co-operative Housing 
Societies.—(1) A Council shall prepare a general 
lay out of the areas to be granted to Co-
operative Housing Societies dividing the area in 
blocks and the blocks in plots. 
 
(2) 
Such lay out shall specify the purpose for 
which the plots shall be used, the class of 
buildings to be constructed on such plots and 
the order in which the construction of such 
buildings on different plots in each block shall 
commence. 
 
(3) The Council shall, with the approval of 
Government, prepare a schedule showing the 
occupancy value per square yard for each block 
and for each plot in such block except the plots, 
if any, reserved for providing amenities for the 
residents of the block. 
 
(4) 
Subject to these rules such blocks shall 
be leased to the Co-operative Housing Societies 
on payment of a deposit equal to twenty per 
cent. of the occupancy value and ground rent 
for one year in advance for such blocks. 
 
(5) 
The balance of the occupancy value and 
rent shall be paid by the Society in the manner 
as may be specified by the Council. 
 
(6) 
The lease shall be for a period of ninty-
nine years, commencing from the date of the 
payment of full occupancy value of the plot. 
 
(7) 
Where the Co-operative Housing Society 
has completed the buildings on all the 
residential plots in a block in accordance with 
the rules, terms and conditions of the lease and 
bye-laws, it shall, be entitled to a lease for the 
same period of the plots reserved, if any, for 
providing amenities for the residents of the 
block free of ground rent but where the Society 
has failed to commence or complete buildings 
as aforesaid the plots reserved for providing 
amenities shall not be lease out to the Society 
and the same shall be disposed of in any 
manner as the Council may deem fit. 
 
Reports No.128-K, 135-K and 146-K of 2021 
 
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(8) 
Where more than one and Society applies 
for any particular block or blocks, such block 
or blocks shall be leased by drawing lots. 
 
(9) 
Where the Society fails to fulfill the terms 
and conditions of the lease or fails to carry out 
development of the land, the Council shall be 
competent to carry out the development and 
grant direct leases to the allottees/members of 
the 
Society; 
provided 
that 
such 
allottees/members have paid full occupancy 
value and development charges incurred by the 
Council.” 
 
So far Rule 10 of the Rules of 1975 is concerned, we note 
that Rule 3 thereof provides that the lands shall vest in a 
Council. Clause (b) thereof provides that all lands shall include 
open spaces, playgrounds, gardens, parks and other places of 
public resort belonging to the Council or transferred to it by 
Government or reserved or acquired by it, by gift, purchase or 
otherwise. Under Rule 7 of the Rules of 1975, the Council has 
been given power to lease out land for constructing buildings for 
residential and commercial purposes. Rule 8 of the Rules of 
1975, provides that sale of the Council land shall be made by 
public auction on payment of full occupancy value. Rule 10 of 
the Rules of 1975 provides a Council to prepare a general lay 
out of the areas to be granted to Co-operative Housing Societies 
dividing the area in blocks and the blocks in plots and also to 
lease the blocks to the Co-operative Housing Society.  
12. 
 
In the first place, we note that the land of Gutter 
Baghicha is not a building site on which construction of 
building of residential and commercial purposes can be made, 
for that, the whole land of Gutter Baghicha is an amenity land 
and can only be used for amenity purpose that of park. The 
Reports No.128-K, 135-K and 146-K of 2021 
 
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leasehold right of amenity plot cannot be granted to a Society 
nor any such thing is provided in Rule 10 of the Rules of 1975, 
cited before us.  
13. 
 
Thus, Rule 10 of the Rules of 1975, as relied upon 
by the Legal Advisor of KMC, has no application to the case in 
hand and cannot protect the grant/allotment/lease of land 
under the provision of Section 45(5)(i) of the Ordinance of 1979 
and once the Ordinance of 1979 itself cannot support such 
grant/allotment/lease, the same could not be saved by the 
Rules, as the Rules have to be consistent with the law under 
which the Rules are made. 
14. 
 
An overall examination of the case and the law 
referred to by the learned counsel for the parties, we note that 
KMC or the Council or the Government of Sindh or the Minister 
of Local Government, Sindh were not empowered to grant 200 
acres of land of Sewage Form, Manghopir Road, Karachi (Gutter 
Baghicha) to the Society, as neither the law allowed such grant 
or allotment or sale of the land to the Society for the purpose of 
KMC employees housing and commercial use; as such, land as 
noted in the very provision is to be used for establishing, 
maintaining or extending educational, religious and charitable 
organizations and for the benefit of public. Thus, from inception 
the Society has wrongly claimed the land granted to it under the 
provision of Section 45(5)(i) of the Ordinance of 1979 and the 
very 
grant 
made 
under 
this 
very 
provision 
by 
the 
Administrator/Council or the Government of Sindh is totally 
Reports No.128-K, 135-K and 146-K of 2021 
 
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against the law and could only be considered as illegal but void 
exercise.  
15. 
 
During the course of hearing of this matter, the 
Secretary of the Society has admitted that though allotment has 
been made to the employees of KMC but no housing or any 
commercial building has been constructed on the land up till 
now. During the course of hearing, learned counsel for the 
Society has admitted that the terms and conditions of KMC 
employees does not mention that they would be entitled to grant 
of land by KMC for their houses.  
16. 
 
We are of the considered view that the grant/ 
allotment/lease of 200 acres of land at Sewage Farm, 
Manghopir Road, Karachi (Gutter Baghicha) to the Society was 
altogether illegal and not supportable by law and void ab initio.  
17. 
 
We, therefore, hold and declare that the grant of 200 
acres of land by the Minister, Local Government, Sindh 
contained in the Minutes of Meeting dated 06.03.1993 
mentioned in document dated 09.03.1993, the approval of the 
Government of Sindh vide letter dated 25.07.1993, the letter of 
allotment dated 03.08.1993, the letter of possession dated 
03.08.1993 and the lease deed dated 11.08.1993, are all 
contrary to law, illegal and thus, set aside, resultantly, all 
consequential allotments made by the Society to its members 
are also declared to be contrary to law and illegal and the same 
are also set aside and cancelled.  
18. 
 
The Administrator, KMC is directed to resume the 
land immediately and to utilize it for the amenity purposes that 
Reports No.128-K, 135-K and 146-K of 2021 
 
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of park for which it is meant. The Administrator shall submit its 
report to the Court of showing compliance of the Court order 
within two weeks.  
19. 
 
All the reports are disposed of. 
 
 
   
 
CHIEF JUSTICE 
 
 
 
Special Bench-I 
 
Islamabad 
11.01.2022 
‘APPROVED FOR REPORTING’ 
Mahtab/* 
JUDGE