IHC Upholds Lease Cancellation in One Constitution Avenue

According to Beyond Time News, the Islamabad High Court (IHC) has issued its detailed written judgment in the One Constitution Avenue case, confirming the cancellation of the lease granted to BNP Private Limited.

The court dismissed the petition filed by the company and declared the Capital Development Authority’s (CDA) decision lawful.

Court Rejects BNP’s Petition

The Islamabad High Court ruled against BNP Private Limited, stating that the lease cancellation dated March 8, 2023, was valid.

Chief Justice Sarfaraz Dogar authored the written verdict. The court also dismissed an execution petition filed by the company.

In addition, the court disposed of applications submitted by third-party investors. It directed them to seek relief through appropriate legal forums.

Failure to Meet Financial Obligations

The court highlighted BNP’s failure to meet key financial conditions set by the Supreme Court of Pakistan.

The company did not pay the Rs2.916 billion installment for 2022, which was a major requirement under the agreement.

The judgment stated that the CDA acted in line with Supreme Court directives when it cancelled the lease.

“Lifeline” Opportunity Not Utilized

The IHC noted that BNP had earlier been given a chance to fulfill its obligations but failed to do so.

The court rejected the company’s argument regarding a technical issue in the 30-day notice issued before cancellation.

It ruled that such objections did not affect the legality of CDA’s decision.

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Background of the Case

In 2019, the Supreme Court had restored the lease and allowed BNP to pay Rs17.5 billion in installments over eight years.

While the company paid the 2021 installment, it failed to clear the 2022 dues.

After repeated notices, the CDA issued a final notice on February 7, 2023, and later cancelled the lease on March 8, 2023.

The court also termed a Rs50 million cheque submitted by BNP as insufficient.

Conclusion

The IHC’s ruling reinforces the importance of complying with financial and legal obligations in major development projects.

According to Beyond Time News, the decision brings clarity to the One Constitution Avenue case and directs affected parties to pursue further legal remedies through proper channels.