The Islamabad High Court has issued its detailed written judgment on the dispute over the lease of One Constitution Avenue, dismissing the appeal filed by BNP (Private) Limited against its cancellation. The court upheld the Capital Development Authority’s (CDA) decision dated March 8, 2023, which terminated the lease.

Chief Justice Muhammad Sarfraz Dogar authored the judgment, which also rejected BNP Limited’s execution petition. The court ruled that the CDA acted within its legal authority and in line with applicable laws when cancelling the lease. Petitions filed by third-party investors were also disposed of, with the court directing them to seek remedies before the appropriate forums.

The judgment noted that BNP Limited failed to meet its financial obligations under earlier Supreme Court directions. In particular, the company defaulted on the Rs. 2.916 billion installment due for 2022, which formed a key condition of the agreement. The court also observed that the CDA’s cancellation aligned with earlier Supreme Court orders that had allowed BNP Limited to clear dues amounting to Rs. 17.5 billion in installments over eight years.

The court further stated that BNP Limited did not fully benefit from the “lifeline” opportunity previously granted by the Supreme Court. Its objection regarding a technical issue in the 30-day notice period was also rejected.

Earlier, the Supreme Court had reinstated the lease on January 9, 2019, subject to repayment of outstanding dues within the stipulated timeframe.

Despite repeated reminders from the CDA, BNP Limited failed to pay the 2022 installment. The authority issued a notice on February 7, 2023, and formally cancelled the lease on March 8, 2023. The court also noted that a Rs. 50 crore cheque submitted by the petitioner was insufficient to clear the outstanding liabilities.