The Islamabad High Court on Monday restrained the Capital Development Authority from taking any coercive action against residents of One Constitution Avenue, issuing a stay order on intra-court appeals linked to the long-running lease dispute.
A division bench comprising Justice Muhammad Azam Khan and Justice Raja Inaam Ameen Minhas heard appeals filed by occupants challenging the dismissal of their writ petitions and directed that no dispossession or enforcement action be taken until the next hearing.
The restraint order effectively maintains the status quo for residents of the high-rise residential complex in Islamabad’s prime sector, halting any immediate eviction process.
The case was initiated after residents challenged recent legal and administrative actions taken by the CDA in connection with the project’s lease status.
During proceedings, counsel for residents Sardar Taimur Aslam urged the court to direct the CDA board to hear their position, arguing that occupants should be given an opportunity to establish their case.
Another representative, Ali Raza, told the bench that the CDA had originally executed a lease agreement for the land and that sub-leases were issued while the main lease remained valid. He also argued that partial payments had been made sufficient to cover the constructed portion of the project.
On behalf of the CDA, counsel Kashif Ali Malik maintained that the authority remained the legal custodian of the land and referenced a Supreme Court directive from 2019 linked to the project’s financial settlement requirements.
He questioned the risk awareness of investors in the scheme and informed the court that no completion certificate had been issued and that residents did not possess valid CDA-issued documentation.
The bench observed that the CDA had previously issued correspondence to the developer and was aware of residents occupying the premises.
Justice Muhammad Azam Khan questioned procedural aspects including whether a completion certificate had ever been granted, while Justice Raja Inaam Ameen Minhas referred to precedent in another housing scheme case where occupants were not evicted despite legal disputes over legality.
The broader dispute originates from a 2005 lease agreement between the CDA and BNP for a five-star hotel project that was later converted into the One Constitution Avenue residential and commercial development.
The lease was terminated in 2016 but subsequently restored by the Supreme Court restoration order 2019 One Constitution Avenue case, subject to financial conditions including Rs17.5 billion in instalments backed by bank guarantees.
In the previous month, the Islamabad High Court had upheld the CDA’s lease cancellation due to payment default, a ruling that triggered strong objections from residents who alleged forcible service of eviction notices.
Subsequent intra-court appeals were filed by the Bank of Punjab and several flat owners, challenging the single-bench decision which also held that third-party purchasers would “sink or sail” with the original lessee.
Court records also brought into focus a 2012 interim arbitration award issued by Defence Minister Khawaja Muhammad Asif and former Faisalabad Chamber of Commerce president Mian Hamid Javed to settle disputes between the project’s two main partners.
That arbitration pertained to disagreements between Abdul Hafeez Sheikh of M BNP and Nadeem Zia Pirzada of M/s Paragon regarding the original hotel venture.
Documents submitted before the court further indicated that 240 flats in the disputed project had been allotted to a list of high-profile individuals, including former heads of state, former prime ministers, former chief justices, and other senior ex-public office holders.
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