FCC overturns SC's Monal demolition order

High court orders in Nai Gaj Dam case also set aside

ISLAMABAD:

The Federal Constitutional Court (FCC) on Monday set aside the Supreme Court's demolition order in the Monal Restaurant case and, in a separate ruling, barred all courts from interfering in the Nai Gaj Dam project until its completion, delivering two significant judgments on administrative and infrastructure matters.

In the Monal Restaurant case, the court annulled the Supreme Court's decision that had ordered the demolition of the restaurant in the Margalla Hills. The FCC allowed the appeals filed by the Capital Development Authority (CDA) and the Metropolitan Corporation. It also vacated the stay order.

The Supreme Court had, on June 11, 2024, ordered the demolition of Monal Restaurant within three months. The federal government subsequently supported the review petition against that judgment. The FCC ruling came just days after it had withdrawn another Supreme Court's order that led to the demolition of Nasla Tower in Karachi.

In the Monal Restaurant case, the FCC ruled that ownership disputes would be decided independently by the trial courts without being influenced by judicial observations made in earlier proceedings, while administrative matters would be determined by the relevant regulatory authorities. It also directed the trial courts to decide the pending cases as expeditiously as possible.

During the hearing, Justice Hassan Azhar Rizvi observed that several aspects had not been taken into consideration in the Supreme Court's judgment. He said the court would decide the matter in accordance with the law rather than emotions and that its judgment would not include irrelevant or non-judicial matters.

Counsel Ahsan Bhoon praised the court's detailed examination of the case. However, Justice Rizvi remarked that the court did not require praise and would issue only such orders as were warranted on the basis of the proceedings.

In a separate verdict in the Nai Gaj Dam construction case, the FCC barred all courts from interfering in the project until its completion and ruled that disputes arising from the construction contract must be resolved through the dispute resolution mechanism provided in the agreement.

The court said its directions were intended to prevent further litigation from obstructing the completion of a vital public infrastructure project. It also set aside the high court's judgment and orders relating to the construction of the dam.

The 17-page verdict, authored by Chief Justice Aminuddin Khan, held that the high court had issued erroneous directions without properly considering the applicable law. It observed that the high court had failed to take into account the contractual dispute resolution mechanism as well as the relevant provisions of the Wapda Act and the NAB laws.

The court further held that the jurisdiction of the high court under Article 199 of the Constitution could not be rewritten, observing that exceeding constitutional limits results in a manifest miscarriage of justice. It expressed the expectation that the parties would proceed in accordance with the original contract.

The court directed Wapda (Water and Power Development Authority) to decide any complaint lodged by the contractor within 15 days of its receipt and ruled that, if the contractor breached the agreement, Wapda would be free to re-tender the works in accordance with the law.