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S. M. YOUNUS versus PREMIER MERCANTILE SERVICE, KARACHI


Section 13 (2) (ii) (a) Subcontracting Tenants (Partnership Firms) Incorporating themselves into a limited company No evidence of mixing of directors' assets with companies As a matter of treating and using the company's name, there was no justification for the costume, in these circumstances, to advance the ideology of a separate institutional company, a separate entity from the partnership firm. It is responsible for subletting and evacuating both the tenant and all tenants.

1981 C L C 1380

[Karachi]

Before Muhammad Zahoorul Haq, J

S. M. YOUNUS AND 2 OTHERS ‑Appellants

versus

MESSRS PREMIER MERCANTILE SERVICE, KARACHI AND

Another ‑‑Respondents

Second Appeal No. 91 of 1977, decided on 18th January, 1981.

(a) West Pakistan Urban Rent Restriction Ordinance (VI of 1959)‑‑--

-----S. 13 (2) (ii) (a)‑Subletting premises‑‑Tenant (partnership firm) incorporating itself into limited Company‑No evidence of mixing up of Directors' assets with those of Company and of treating Company as mere partnership firm and using name of Company as mere cloak‑‑No justification, in circumstances, held, existed to give go‑by to theory of separate entity‑Company, field further, a separate entity from partnership firm hence case one of subletting and both tenant and sub‑tenant liable to ejectment.

Salomon v. Saloman 1897 A C 22 ; The President v. Mr. Justice Shaukat Ali P L D 1971 S C 585 and Manek J. Mobed v. Shah Behram P L D 1974 S C 351 rel.

(b) West Pakistan Urban Rent Restriction Ordinance (VI of 1959)‑‑‑

‑‑ S. 13 (2) (ii) (a)‑‑Assignment of tenancy‑Sub‑tenant Company taking over business of tenant partnership firm paying rent all along and in possession of premises‑Held, assignment of tenancy made by tenant (partnership firm) in favour of sub‑tenant (Company) and same being not permissible in law tenant and sub‑tenant both liable to ejectment.

Hassan Akhar for Appellants.

N. R. Dubash for Respondents.

Dates of hearing : 18th and 22nd December, 1980.

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