Pakistan State Oil (PSO) and different other companies have moved petitions against cancellation of their lease agreement, sealing and demolition of the structures.
The petitioner say, they had established fillings stations and CNG stations on the land owned by LDA and under law lease granted by LDA is to be extended periodically for three years for a total 33 years. They argued that in view of section 4 of Disposal of Land by Development Authorities (Regulations Act of 1998) such right of extension vests in favour of the lessee. They argued that period of extension perceived in the said law had admittedly not been exhausted, therefore, the lease cannot be terminated or site auctioned, as threatened, nor the same sealed or demolished.
They have prayed to the court to restrain LDA from pulling down, auctioning or sealing their sites.
Counsel for LDA argued that rent being paid by petitioners was not in line with market rate. Hence petitioner companies had no right to retain possession as original lease and the extended periods have expired.