The Rent Tribunal in Faisalabad dismissed two separate petitions seeking the eviction of McDonald’s under the Punjab Rented Premises Act 2009.
The dispute between the landlords and the tenant arose upon the expiry of the initial term of the lease. The landlords argued that McDonald’s was liable to be evicted upon expiry of the initial term and moved the Rent Tribunal for this purpose. However, prior to the expiry of the initial term McDonald’s had invoked its right to extend the lease further in accordance with the lease agreement. The Rent Tribunal agreed with this reasoning noting that the agreement conferred a unilateral right on the tenant to extend the lease at its sole discretion and McDonald’s having exercised that right could not be evicted from the premises.
The Tribunal found no evidence that the tenant had committed default in terms of the Punjab Rented Premises Act 2009 and decided the matter in favor of the tenant.
Lawyers from our dispute resolution team helped secure this important victory for McDonald’s Pakistan. Zeerak Elahi led the final arguments.
