Judgment - BNP Vs CDA - 03-03-2017
This document is a judgment sheet from the Islamabad High Court in W.P. No. 3043 of 2016, a case between BNP Pvt. Ltd. and the Capital Development Authority. The judgment is delivered by Justice Athar Minallah and involves the cancellation of a plot allotted on lease to BNP Pvt. Ltd. and the cancellation of apartment purchases by other petitioners. The document provides the background and facts of the case.
Information on Islamabad Capital Territory (ICT) laws and regulations
The provided data discusses the essential laws governing planning, development, and construction within the Islamabad Capital Territory (ICT). The importance of adhering to these regulations, specifically the Master Plan, was highlighted, along with potential consequences for not complying with them.
The key fact in this context is the importance of adherence to the Master Plan and regulations governing the ICT area. If the personal injury claim has arisen due to non-compliance of these regulations, implying potential negligence, this information hence becomes relevant.
Reference: 25, 32
Dispute over land use and violation of regulations
The case revolves around a plot of land which has been a matter of dispute over its usage. The land was put up for sale or lease by the regulatory authority for the exclusive construction of a Five Star Hotel. This was done via open auction where several entities participated for the bidding. The company in question, however, was not an active part of this bidding process. Despite not participating in the bidding process, they were allowed to execute the lease deed and carry out construction work on this land. Upon later inspection, it was found that residential apartments were being built on this plot of land and were sold. This was a direct violation of land disposal regulations set by the authority.
The company was allowed to carry out construction work on the land despite not participating in the bidding process which was exclusively done for constructing a five-star hotel. Later, they were found to violate the norms by constructing and selling residential apartments.
Reference: 33, 40
Regulatory failure and negligence by the Capital Development Authority (CDA)
The CDA negligently allowed a petitioner/company to deceive members of the public into investing in two unlawfully constructed buildings. The company collected a large amount of money from these investors, mainly widows, retired officials and expatriates, and was granted an extension of the payment schedule by the Authority in violation of the terms and conditions. The CDA breached its fiduciary duties and disregarded legislative intent, thereby raising accusations of a pattern of regulatory failure.
1. The CDA violated its own terms and conditions by extending the payment schedule for the company.
2. The company collected substantial money from deceived investors.
3. There is a pattern of regulatory failure by the CDA, with other buildings also constructed in violation of regulations.
4. The court maintains that rights claimed on the basis of illegality are void.
Reference: 41, 42, 43, 44, 45, 46, 47, 48
Cancellation of Land Allotment to BNP Pvt. Ltd. by the Capital Development Authority
The Capital Development Authority (CDA) cancelled the allotment of a 13.5-acre plot of land at the end of Constitution Avenue in Islamabad to BNP Pvt. Ltd. The land was supposed to be used for the construction of a building to mark the 50th Anniversary of Pakistan's Independence, a purpose not envisaged in the original Master Plan of Islamabad. The plot was later advertised for use in constructing a five-star hotel. After conducting a bidding process, the land was pre-qualified for the BNP Group, a consortium of four juridical persons. However, additional plans to construct a shopping mall were not approved, leading to the plot's cancellation.
The CDA has authority over land allocation and had originally designated the plot for an unrecognized purpose in the Master Plan. This plot was later bid on and pre-qualified by BNP Group for a five-star hotel. Controversy arose due to the CDA's decision to cancel the allotment after not approving of a proposed shopping mall.
Reference: 1, 8
Cancellation of the lease deed by the Authority's Board
The petitioner/company filed a W.P. No. 2734 of 2016, informing the court that the Board of the Authority had convened a meeting. In the meeting, the Board decided to cancel the lease deed of the petitioner for violating bylaws and regulations. A formal letter on this cancellation was issued to the petitioner/company.
Lease deed cancellation, violation of bylaws, formal letter issued.
Reference: 17
Discrepancy in the "Type" of construction
The record shows a difference between what the plot was advertised for and what it was used for. It was offered for the construction of a 5 Star Hotel, not residential apartments. The petitioner/company has sold 240 apartments to the public.
Misrepresentation of plot usage, sale of 240 apartments.
Reference: 18
Filing of petitions due to plot cancellation
The petitioner/company argues that as part of the Consortium, the construction of residential apartments was allowed. They also maintain that they were not required to make 100% payment of the lease amount, and that the delay in construction was due to a dispute with the Civil Aviation Authority.
The Consortium, permissible apartment construction, less than 100% lease payment.
Reference: 19
Authority admits regulatory failure
The Authority admits to its regulatory failure in enforcing the provisions of the Ordinance of 1960 and the Regulations. However, they argue that the lease deed was not signed by all partners of the Consortium and that the apartments were not meant to be sold.
Regulatory failure admission, disagreement on lease deed and apartment sales
Reference: 20
Buyers argue their rights cannot be denied
Purchasers claim that they were justified in believing that the construction was in accordance with the law. They assert that the Authority cannot benefit from its own errors.
Rights of the Purchasers, Authority's error cannot be beneficial to them.
Reference: 22
The controversy around the plot's lease deed cancellation
The dispute is primarily about the construction of 240 residential apartments, which the petitioner/company claims to have sold to purchasers.
Dispute over the construction, sale of apartments claimed by petitioner.
Reference: 24
Bidding Process Initiation for the Five Star Hotel Construction
The bidding process for the construction of the Five Star Hotel and serviced apartments was initiated. This involved the invitation of bids, submission from different construction companies and the selection process.
The initiation date for the bidding process is important as it signifies the beginning of the project and the case itself.
Reference: 9
Lease Deed Approval
The lease deed for the project was approved. After the bidding process is settled, it is the necessary legal contract that outlines the agreement between two parties.
Provincial authorities are responsible for this approval which acts as a binding legal document between the parties.
Reference: 10
Rescheduling of Payments
The payments were rescheduled due to some issues that are not mentioned in the data.
The rescheduling of the payments might have been a reason for dispute and could be an important element of the claim.
Reference: 11
Submission and Approval of the Building's Plans
After the rescheduling of the payments, the building's plan was submitted and approved by the relevant authorities for construction
The approval of building plans signifies the official starting phase of construction.
Reference: 12
Objections Raised Regarding the Building's Height
Issues were raised by the authorities about the height of the hotel and serviced apartments.
This can be crucial as the objections might have halted the project or caused modifications leading to extra costs, delays or other issues.
Reference: 13
Settlement between the Authority and Petitioner/Company
A settlement was reached between the Provincial Authority and the Petitioner/Company about the objections.
The details of the settlement may provide insight on who was at fault and could directly influence the personal injury claim.
Reference: 14
Amendments to the Payment Clause
Changes were made to the payment clause of the contract which were not elaborated in the data provided.
These amendments might have had an effect on the project timeline and indirectly on the underlying personal injury claim.
Reference: 15
Initiation of Inquiries by National Accountability Bureau (NAB) and Federal Investigation Agency (FIA)
The NAB and the FIA initiated inquiries into the project possibly due to reported irregularities or non-compliance with contracts/agreements.
This marks the beginning of legal scrutiny and investigations into the project, directly related to the allegations in the personal injury claim.
Reference: 16