The Islamabad High Court (IHC) on Monday issued a stay order restraining the Capital Development Authority (CDA) from taking any coercive action or dispossessing the residents of One Constitution Avenue in Islamabad.The decision came during the hearing of intra-court appeals filed by residents challenging the dismissal of their earlier writ petitions.

A division bench comprising Justice Muhammad Azam Khan and Justice Raja Inaam Ameen Minhas directed the CDA not to proceed with any eviction or enforcement action until the next hearing.

During the proceedings, the residents’ lawyers argued that the CDA and relevant authorities should provide them a fair opportunity to present their case and verify the legality of their occupancy.

They maintained that sub-leases were executed under an existing lease agreement between the CDA and the original developer, and that partial payments had already been made which covered the developed residential area.

On the other hand, the CDA counsel argued that no completion certificate had been issued for the project and that residents lacked formal documentation from the authority, questioning the legality of the occupation.The court also examined whether the CDA had knowledge of resident occupancy and past communications with the developer.The dispute traces back to a 2005 lease agreement for a hotel project later converted into a luxury residential complex.

The lease was terminated in 2016, restored by the Supreme Court in 2019 under strict financial conditions, and later faced cancellation again due to alleged payment defaults.Earlier judicial proceedings had sparked controversy after eviction notices were reportedly issued to residents.The case also involves intra-court appeals from flat owners and financial institutions such as the Bank of Punjab, challenging earlier rulings.

The court adjourned the hearing while maintaining protection for residents through the stay order, keeping the matter pending further judicial review.