Summary LHC nullifies Multan Municipal Corporation’s order, ruling that commercialisation fees must follow the law and rates applicable when the dispute arose.
LAHORE (Muhammad Ashfaq) - The Lahore High Court has set aside an order issued by the Municipal Corporation Multan in a commercialisation fee dispute, ruling that financial obligations must be determined under the law and rates applicable when the cause of action arose.
The court observed that retrospectively applying a subsequently introduced policy or imposing additional financial demands is unlawful once the relevant legal requirements have been fulfilled.
Justice Javed Hassan issued the verdict on a petition filed by Mian Abbas Ahmed, setting aside an order dated May 11, 2026, issued by the chief officer of the Municipal Corporation Multan.
According to the judgment, the petitioner applied on December 8, 2005, for approval of a commercial site plan for a property measuring approximately six marlas. The relevant authorities directed him to deposit Rs42,470 as a building fee and Rs12,000 as a processing fee.
According to the petitioner’s counsel, the municipal authorities failed to decide the site plan application within the prescribed period, leaving the matter pending before the commercialisation committee. The petitioner subsequently constructed the building, but the commercialisation dispute remained unresolved.
Even after the petitioner applied for permission to construct a second floor in 2022, the matter continued to be contested before different forums.
The judgment stated that on May 11, 2026, the chief officer of the Municipal Corporation Multan rejected the application and directed that commercialisation fees be charged under the rules applicable to the 2025-26 financial year.
The court observed that the officer had neither provided substantial reasons for rejecting the application nor explained the relevant statutory provisions and rules. It held that an order issued without reasons could not legally be sustained.
Justice Javed Hassan further observed that public authorities and officials are required to make decisions in accordance with the law and clearly state the reasons behind their orders. Administrative and judicial decisions must take into account the relevant facts, applicable law and judicial precedents.
The court ruled that the rights of parties in financial matters must be determined under the law in force when the relevant legal right arose or the dispute originated. Applying a subsequently introduced policy to past matters to impose an additional financial burden was not permissible.
Allowing Mian Abbas Ahmed’s constitutional petition, the Lahore High Court set aside the chief officer’s order dated May 11, 2026.
