IHC resumes hearing of Grand Hyatt Hotel case

Islamabad High Court (IHC) here on Tuesday resumed hearing of Grand Hyatt Hotel apartments' case. Two-member bench of IHC comprising Justice Mohsin Akhtar Kiyani and Justice Amir Farooq heard the arguments submitted by the counsel of the said hotel project. In March 2017, the IHC declared the construction of luxury apartments on land meant for the hotel as 'illegal'. Later, a committee was constituted comprising attorney general, secretaries of Cabinet Division, Capital Administration and Development Division (CADD), and Law and Justice Division, and CDA chairman to probe the affairs of the project.
On Tuesday, senior advocate Makhdoom Ali Khan presented his arguments on behalf of Grand Hyatt Hotel developer BNP at the IHC. He informed that BNP has not violated the agreement at any stage and amendment in lease, which was under the supervision of NAB, was duly approved by the ECC. The BNP filed a civil suit against CDA for the financial losses occurred due to delay in the project. The NAB then first time intervened and played role to solve the matter. Payment rescheduling was being done due to concerns of PAF and CAA. Pakistan Air Force and Civil Aviation Authority restricted the project building plan from 45 storeys to 23 storeys on each tower.
Makhdoom Ali Khan told the court that BNP had submitted the required revised plan for hotel in 2014 but the CDA has not approved that plan till date. On the other hand, the CDA cancelled the lease giving a reason of non-construction of the hotel.
Justice Amir Farooq in his remarks asked if any default in payment is recorded. Makhdoom Ali Khan told the court that there is no payment default at any stage, adding that BNP has fulfilled all the relevant legal requirements and everything was well approved by CDA board as and when happened. He stated that CDA did not point out any illegality in structure when it was under construction and when the grey structure was ready as well as the interior finishing was at final stage then CDA intervened and cancelled the lease.
Justice Amir Farooq also asked if CDA can take unilateral decision regarding cancellation of the project and if any clause of contract allows CDA to do so. Makhdoom Ali Khan concluded his arguments saying that no one-sided cancellation is allowed in the law other than agreed terms of cancellation. He further said CDA cannot benefit from its own mistakes. He said such decisions from government departments create horrific impact on investment scenario which is not in the interest of Pakistan. The hearing of the case was adjourned till May 28.