The Islamabad High Court (IHC) on Monday issued a stay order preventing authorities from evicting apartment owners at One Constitution Avenue until further notice. A two-judge bench, led by Justice Muhammad Azam Khan and Justice Inaam Ameen Minhas, heard intra-court appeals filed by sub-leaseholders including Mujahid Anwar Khan, Ehsan Mani, and Wasim Sajjad.
Legal representatives Taimur Aslam and Ali Raza appeared for the appellants, while Advocate Kashif Ali Malik represented the Capital Development Authority (CDA). The petitioners challenged paragraph 30 of a single-judge verdict related to the protection of third-party rights in the One Constitution Avenue case.
In a significant development last month, IHC Chief Justice Sardar Muhammad Sarfraz Dogar affirmed the CDA’s cancellation of the lease for the multi-storey building. His detailed judgment, issued on May 4 following an April 30 hearing, dismissed petitions filed by the developer and addressed those submitted by investors. The court found the developer had failed to meet financial conditions set by the Supreme Court, notably the non-payment of the 2022 installment.
The judgment also disposed of petitions by investors, stating that sub-lessees claiming bona fide purchaser status could not be granted relief under Article 199 without supporting evidence. The ruling emphasized that these investors must “sink or sail with the petitioner,” though it noted they could seek remedies in a court of competent jurisdiction. It further highlighted that sub-lessees might pursue claims against the petitioner or BNP in an appropriate legal forum.
During Monday’s hearing, Justice Minhas indicated the court would first address the stay petition before proceeding with the full case. She questioned whether the rights of apartment owners had been properly considered in prior Supreme Court proceedings, noting that the petitioners’ rights remain intact the challenged order.
Justice Minhas also asked when the CDA appointed an administrator for the building. Advocate Raza responded that this occurred on March 12, 2023. Advocate Aslam countered by arguing that the CDA should not oppose the current arrangement, as a residents’ committee had been managing the building. He added that a committee formed by Prime Minister Shehbaz Sharif was reviewing the matter, with its recommendations expected to require approval from both the cabinet and the CDA board.
Advocate Raza stated that the CDA had previously recognised the rights of the apartment owners and had collected lease charges ranging between 15% and 18% from them. Justice Minhas questioned why the CDA acknowledged residents’ rights, while Justice Khan inquired whether the building had ever been issued a completion certificate. The CDA’s counsel confirmed that no completion certificate had been granted to the building to date.
