Sealing petrol pumps, CNG stations: LHC extends stay order to February 25

The Lahore High Court (LHC) here on Tuesday extended the stay order to February 25 against demolition or sealing of 18 petrol pumps and CNG stations, as Lahore Development Authority (LDA) sought time to file its reply. Pakistan State Oil (PSO) and different companies have moved petitions against cancellation of their lease agreement, sealing and demolition of their petrol pumps.
They pleaded that they had established petrol pumps and CNG stations on the land owned by LDA and pointed out that 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, therefore, prayed to the court to restrain LDA from demolishing, auctioning or sealing their sites. Counsel for LDA argued that rent being paid by petitioners is not in line with market rate. Hence petitioner companies have no right to retain possession, as original lease and the extended periods have expired.