IHC says One Constitution Avenue apartment buyers have no ownership rights

ISLAMABAD: The Islamabad High Court has ruled that purchasers of apartments in the One Constitution Avenue project do not hold ownership rights in the development and may seek legal recourse against the builder to recover their money.

In a detailed judgement issued on Monday, IHC Chief Justice Sardar Muhammad Sarfraz Dogar dismissed a set of petitions filed by M/s BNP (Pvt) Limited, the project developer, along with investors and other stakeholders. The petitions had challenged the Capital Development Authority’s decision to cancel the lease of the multi-billion-rupee project.

The court held that the CDA’s action was lawful and in line with the framework earlier laid down by the Supreme Court. According to the judgement, the apartment buyers could not claim ownership rights in the project after the lease cancellation, though they remained free to pursue remedies against the builder for recovery of their investment.

Petitions dismissed

The case was argued by senior lawyers on behalf of the developer, including former Supreme Court judge Ijazul Ahsan, while advocate Kashif Ali Malik represented the CDA.

The dispute relates to a lease agreement executed in 2005. The matter concerns One Constitution Avenue, a high-value development in Islamabad that became the subject of prolonged litigation over the terms of the lease and the developer’s obligations.

By dismissing the petitions, the high court effectively upheld the CDA’s termination of the lease. The judgement said the impugned action was consistent with the law and with the Supreme Court’s earlier directions in the matter.

The ruling also addressed the position of those who had purchased apartments in the project. The court said such buyers did not acquire ownership rights in the property and that their remedy, if any, lay against the builder rather than through a claim to the project itself.

Legal position of buyers

The judgement is significant for investors and residents linked to the development because it clarifies their legal standing following the cancellation of the lease. While the court did not recognise ownership rights for apartment purchasers, it stated that they could seek recovery of their investment through appropriate legal proceedings against the developer.

The case has drawn attention because of the scale of the project and the number of stakeholders involved. The court’s detailed order now sets out the legal basis for rejecting the petitions and sustaining the CDA’s decision.

The court ruled that buyers of luxury apartments in the development do not have ownership rights and may instead pursue legal remedies against the builder for recovery of their investment.

With the petitions dismissed, the IHC judgement reinforces the legal effect of the lease cancellation and leaves the affected buyers to seek relief through separate proceedings against the builder.