ISLAMABAD (Kashmir English): The Islamabad High Court (IHC) on Monday issued a detailed verdict in the One Constitution Avenue case, dismissing the petition of BNP (Private) Limited against the cancellation of the lease of the multi-billion-rupee project.
The court upheld the lease cancellation order issued by the Capital Development Authority (CDA) on March 8, 2023, and dismissed the execution petition of BNP Limited, the developer of the project.
While the court disposed of investors’ petitions, ruling that buyers of luxury apartments do not have ownership rights and may instead pursue legal remedies against the builder for recovery of their investment.
In a detailed judgment, IHC Chief Justice Sardar Sarfraz Dogar dismissed a set of petitions filed by BNP along with investors and other stakeholders, challenging the CDA decision to terminate the lease.
The court held that the impugned action by CDA was in accordance with the law and consistent with the framework laid down earlier by the Supreme Court, and the petitioner did not take advantage of the lifeline opportunity granted by the Supreme Court.
Furthermore, it ruled that the petitioner did not comply with the financial conditions set by the Supreme Court, and the company failed to deposit Rs 2.916 billion of the 2022 installment.
According to the decision, the Supreme Court had restored the lease on January 9, 2019, ordering the payment of Rs 17.5 billion over 8 years, while BNP Limited deposited the 2021 installment but defaulted in paying the 2022 installment.
After repeated reminders, the CDA issued a notice on February 7, 2023, and then an order to cancel the lease on March 8, and the court also declared the Rs 500 million cheque deposited by the petitioner as insufficient.
