In a significant development, a division bench of the Islamabad High Court (IHC) on Wednesday reversed a 2022 single-judge ruling that had declared the Pakistan Naval Farms and Naval Sailing Club on the banks of Rawal Lake unlawful. The bench also annulled orders for the demolition of the club and halted proceedings against former naval chief Admiral (retd) Zafar Mahmood Abbasi.
The division bench, consisting of Justice Inaam Amin Minhas and Justice Shah Rukh Arjumand, accepted the intra-court appeals filed against the earlier judgment. These appeals were submitted by the Ministry of Defence, Admiral (retd) Zafar Mahmood Abbasi, and other petitioners challenging the decision delivered by then IHC Chief Justice Athar Minallah in 2022.
Notably, the bench set aside the demolition directive for the Naval Sailing Club and overturned the order that had declared the land transfer to the Pakistan Navy headquarters unlawful. Additionally, the court nullified the instructions regarding misconduct and criminal proceedings against Admiral (retd) Abbasi related to the establishment and inauguration of the club.
The prior order that had instructed the Auditor General of Pakistan to evaluate any losses to the national treasury and recover those amounts from responsible officials was also revoked. Admiral (retd) Abbasi was represented by senior lawyer Ashtar Ausaf, while Sardar Ahmed Jamal and Abdul Wahid Qureshi appeared for other petitioners. The federal government’s case was handled by the Additional Attorney General and Assistant Attorney General, with counsel from the Capital Development Authority (CDA) also present.
The original 2022 ruling stemmed from a petition contesting the establishment of the Pakistan Naval Farms and the construction of the Naval Sailing Club near Rawal Lake. Justice Athar Minallah had ruled in January 2022 that the Pakistan Navy lacked authority to engage in real estate ventures unrelated to its core institutional functions.
The court had declared both the Naval Farms and the Sailing Club illegal, ordering the club’s demolition within three weeks. It held that the land occupied by the Navy near Rawal Lake was neither lawfully allotted nor authorized and that the Sailing Club was built within a protected national park area. The judgment directed authorities to reclaim the land and act in accordance with applicable laws.
Furthermore, the court ruled that the CDA was not empowered to issue a no-objection certificate (NOC) for the project and ordered action against Admiral (retd) Abbasi and other officers involved in the construction and inauguration of the club. The ruling was widely regarded as a landmark decision clarifying the limits on state institutions’ engagement in commercial and real estate activities, emphasizing that no institution is above the law.
The Ministry of Defence, Admiral (retd) Abbasi, and other affected parties subsequently filed intra-court appeals contesting the single-judge decision. The division bench initially heard the appeals in January 2022 and requested a report from the Cabinet Division on the implementation of the earlier verdict.
With the latest ruling, the division bench has effectively overturned the key findings and directives of the previous judgment, including the declarations of illegality concerning the Naval Farms and Sailing Club, as well as the orders related to demolition, land transfer, recovery of losses, and legal proceedings against the former naval chief.
