Last month, the IHC dismissed the petition against the termination of the lease, stating that the buyers lacked title
The Islamabad High Court (IHC) on Monday issued a significant order restraining the authorities from evicting the flat owners of the sub-tenants of One Constitution Avenue until further notice.
A division bench comprising Justice Muhammad Azam Khan and Justice Inaam Ameen Minhas heard appeals filed by former air chief Mujahid Anwar Khan, former ICC president Ahsan Mani, former Senate chairman Wasim Sajjad and others. The appellants challenged point 30 of the decision on the protection of third party rights.
Advocates Taimur Aslam and Ali Raza appeared for the appellants while Kashif Ali Malik represented the Capital Development Authority (CDA).
During the proceedings, the CDA’s counsel argued that the complaints were not maintainable. Judge Inaam Ameen Minhas remarked: “We will hear the whole case later; today we are only considering their stay request.”
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The court inquired whether the apartment owners’ case had been dealt with when the case was before the Supreme Court. The bench also questioned how the residents started living in the building without completion certificate.
Justice Khan observed, “Did the CDA sleep when there was no completion certificate but the residents had already started living there?”
The CDA counsel informed the court that the building had still not received its completion certificate.
The court subsequently decided that no eviction of apartment owners may take place until further ruling.
The case concerns CDA’s cancellation of the project’s lease. Last month, the IHC dismissed the petition against annulment of the lease and disposed of related applications filed by apartment owners.
Residents claimed that the CDA had approved the construction plan and issued a no-objection certificate (NOC), after which flats were purchased. They maintained that the dispute was between the CDA and the developer and should be resolved between the parties concerned.
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In its detailed judgment, the court ruled that the buyers lack title.
The court stated that the buyers lacked title as the project’s lease had been terminated and the proper legal processes had not been followed regarding the transfer of title.
The project originally originated from a 13.5 hectare plot of land awarded to BNP Group after an auction on 9 March 2005 for Rs 4.88 billion. Although the possession was handed over the same year after an initial payment of Rs800 million, BNP has so far paid Rs1.02b, while the remaining Rs3.85b can be recovered in installments till 2026.
In July 2016, the CDA canceled the lease citing several violations. The decision was upheld by the IHC in 2017, which also declared the conversion of a planned five-star hotel into luxury apartments illegal. However, the Supreme Court overruled this judgment in early 2019 and ordered the developer to pay 17.5 billion. Rs. in installments over eight years.
CDA argued that BNP failed to meet its financial obligations after 21 years, and maintained that full ownership was conditional on 100% payment of the land cost. Of the total liability of DKK 17.5 billion. Rs., is only 2.9 billion. Rs – about 16.6% – was allegedly paid.
