IHC issues written order regarding cancellation of lease on One Constitution Avenue

The Islamabad High Court (IHC) has dismissed a petition challenging the cancellation of lease of BNP (Private) Limited, ruling that the Capital Development Authority's (CDA) lease cancellation order issued on March 8, 2023, was legal and valid

ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 4th May, 2026) The Islamabad High Court (IHC) has dismissed a petition challenging the cancellation of lease of BNP (Private) Limited, ruling that the Capital Development Authority's (CDA) lease cancellation order issued on March 8, 2023, was legal and valid.

Chief Justice, Sardar Muhammad Sarfraz Dogar issued a written judgment in the One Constitution Avenue case, dismissing the execution petition filed by BNP Limited and disposing of applications filed by third-party investors. The court ruled that investors might approach the relevant forum for their rights.

According to the judgment, the petitioner company failed to comply with the financial terms set by the Supreme Court. The company defaulted on payment of Rs. 2.

916 billion for the year 2022.

"The CDA's cancellation of the lease is precisely in accordance with the right granted by the Supreme Court," the IHC observed. "The petitioner did not take advantage of the lifeline opportunity provided by the Supreme Court."

The court also rejected the petitioner's objection regarding a technical flaw in the 30-day notice and declared the petitioner's cheque of Rs. 500 million as insufficient.

The Supreme Court had restored the lease on January 9, 2019, directing payment of Rs. 17.5 billion over eight years. While BNP Limited submitted its installment for 2021, it defaulted on the 2022 payment. The CDA issued repeated reminders before serving a notice on February 7, 2023, and subsequently cancelling the lease on March 8, 2023.