Legal Status of Pagri (Goodwill)

What is pagree?

Its history is very old before the partion this method of transferring / on rent was used which is still in present in the old area of the city.If any property is given on the huge amount of advance equal to about sale consideration and very small amount of monthly rent it is called pagri or goodwill. Basically this is old term and method transferring the immoveable property which was used by the Hindus and Memons. Still this way of transferring the immoveable property is exist in Sindh especially at Karachi in old areas. This is the best way for selling the property for the real owner. They receive the huge amount equal to market value of the property and in spite of receiving the huge amount the right of ownership is not transferred and moreover they also get the monthly amount as rent which is normally few hundreds. However in this term the pagree holder is allowed to sale the property on same way viz on pagree but the real owner get the percentage of the whole consideration and then accept the new pagree holder as his tenant aned change the receipt in his name. Pagri has neither ownership status nor the pagree holder claim as owner of the property.

Difference between the tenant and pagree holder

There is little defference between the pagree holder and tenant. In tenancy the huge money is received as rent on monthly basis and advance money is charged normal and in tenancy the tenant is not allowed to sale the property. On the other hand the pagree holder have to paid huge amount about equal to sale consideration but minimum monthly rent is charged but the pagree holder is allowed to sale the property.

Difference between the ownership and pagree

There is also difference between the ownership basis of the property and on the basis of pagree. Although the pagree holder has right to sale the property, but right of ownership cannot be transferred. The pagree holder cannot considered as owner of the property either he has been living for many decades but his status is as pagree holder.

Legal status of the Pagri

In law there is no provision of pagri, no law support to the pagree holder. The pagri holder is just tenant and treated as tenant. The real owner has full rights of the ownership of the property. He can sue as landlord of the property. He can enhance the rent. He can eject the pagree holder on the ground of the default, for bona fide personal use and other as mentioned in the tenancy law. So in law the pagree holder is just tenant and courts proceed the case and treated him as tenant. Law does not support and does not give right of ownership in any case.

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