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Official Citation: 2026 SHC 1140
Court / Jurisdiction: Sindh High Court
Petitioner: Const. P. 2473/2026 (D.B.) Sindh High Court, Karachi - AM Associates & Another (Petitioner)
Ruling Summary: This decision was rendered by the Sindh High Court, officially reported as 2026 SHC 1140. In this matter between Const. P. 2473/2026 (D.B.) Sindh High Court, Karachi - AM Associates & Another (Petitioner) and the Respondent, the court adjudicated key questions of statutory construction, procedural regularity, and legal precedent under Pakistani law.
Core Holding: The honorable bench evaluated governing statutory provisions and judicial authorities to establish the rights of the parties, delivering the binding reasoning set out below.
COURT: Sindh High Court CASE NO: Const. P. 2473/2026 (D.B.) Sindh High Court, Karachi CITATION: 2026 SHC KHI 1140 PARTIES: AM Associates & Another (Petitioner) ORDER DATE: 21-MAY-26 BENCH: Hon'ble Mr. Justice Muhammad Saleem Jessar, Hon'ble Mr. Justice Nisar Ahmed Bhanbhro(Author) A.F.R: Yes ------------------------------------------------------------ Page 1 of 46
THE HIGH COURT OF SINDH KARACHI
BEFORE: Mr. Justice Muhammad Saleem Jessar Mr. Justice Nisar Ahmed Bhanbhro
C.P. No. D – 2473 of 2026 [AM Associates and another v. Government of Sindh through Chief Secretary and others]
Petitioners : M/s. Barrister Salahuddin Ahmed, Chaudhry Atif Rafiq, Neha Makhdoom, Muzzamil Iqbal and Sibtain Muhammad Ali, Advocates.
Respondents 1-6 : M/s. Jawwad Dero, Advocate General, Sindh assisted by M/s. Saifullah Khan and Faizan Ahmed Memon, Additional Advocates General, Sindh.
Respondent No.7 : M/s. Barrister Jahanzeb Awan and Shahan Karimi, Advocates.
Date of hearing : 07-05-2026
Date of decision : 07-05-2026
Date of Reasons : 21-05-2026
J U D G M E N T
Nisar Ahmed Bhanbhro, J. Through the instant Petition, the Petitioners have claimed following relief(s):
A- Direct the de-sealing of the project site located at Aldin Park, Main Rashid Minhas Road, Block -11, Gulshan - e - Iqbal Karachi and restrain the official Respondents from interfering with into the possession and usage of the project site and Lot-2 Site.
B- Restrain the official Respondents from interfering with the usage and utilization or removal of the petitioners‟ stocks including but not limited to the steel, construction material, motor vehicles, trucks, machinery, furniture and fittings, shuttering etc.,
C- Restrain the Respondents directly or indirectly from carrying on any works on the project Lot -2 awarded to the Petitioners and from initiating any bidding / tender process in relation to the same;
D- Direct the Nazir of this Honorable Court to make the inventory of the entire stocks of the Petitioners including but not limited to steel, construction material, motor vehicles,
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trucks, machinery, furniture and fittings, shuttering etc lying at the project site and determine the actual works completed by the Petitioners on the Lot - 2 Mosmiat to Numaish of BRT project under the contract;
E- Costs of the Petition.
F- Grant such other relief as may be fit and proper in the facts and circumstances of the case.
2. Mr. Salahuddin Ahmed, learned Counsel for the Petitioners contended that Petitioner No. 1 & Petitioner No. 2 entered into a joint venture agreement dated 15.11.2020 to jointly bid, acquire and execute ―Karachi Bus Rapid Transit‖ Red Line P roject Lot -2 Mosmiyat to Numaish (BRT) under the name and style ―CR3-AM Associates JV ‖; that the Respondent No 7 (M/S TransKarachi) invited tenders for execution of BRT Project; that Petitioners participated in the tender process and remained successful b eing lowest bidders. He contended that contract against bid value of Rs 15,93,57,01,527 ( PKR 15.94 Billion approximately) was awarded to Petitioners and contract agreement dated 04.01.2022 was executed between Respondent No 7 and Petitioners. He contended that Petitioners mobilized at the site, but M/STransKarachi failed to deliver complete site design; that until now only 50% of Site Design was handed over to Petitioners out of which 80% work was executed at site. He contended that M/S TransKarachi caused delays in execution of project, which resulted in cost escalation for which several claims were made to the Engineer and ultimately referred to Dispute Resolution Board (DRB) per terms and conditions of Contract. That out of five claims made by the Petit ioners four were resolved in their favor and an additional amount of Rs 3,77,44,58,690 (PKR 3.775 Billion) has been granted to Petitioners by DRB. Due to non - payment of amounts Petitioners filed Suit No 10325/2025 before the Court of 10 th Senior Civil Judg e Karachi South, the dispute was referred for arbitration vide order dated 20.04.2026 and an amount of PKR 1.6 Billion has been paid to the Petitioners. He contended that on 21.04.2026 Deputy Commissioner Karachi East, SSP Karachi East, Mukhtiarkar Gulshan e Iqbal and Station House Officer, Police Station Gulshan e Iqbal (Respondents No 3 to 6) along with heavy police and rangers deployment came to project site located at Aladin Park Rashid Minhas Road Karachi and sealed the premises. He further contended t hat on the same date Petitioner s were served with ―termination of contract ‖ notice. He argued that entire staff of
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the Petitioners was removed from the site forcibly and at the time of sealing huge stocks including construction material was lying at the si te. He contended that sealing of the site and forcible removal of the Petitioners from Project Site was unlawful, contrary to the terms of contract, high handedness, and attempt to snatch away the possession of project site. He contended that Petitioners w ere served a termination notice dated 21.04.2026 for termination of contract within one month’s time but impugned action was taken much before the expiry of notice period. He further contended that premises were sealed without any prior notice and Respondents No 3 to 6 were not authorized under any law to take a unilateral decision of sealing of premises. He contended that M/S TransKarachi did never require the sealing of project site and intended actions were taken under some extraneous considerations to f urther aggravate the agony faced by the people due to delay in execution of project. He contended that writ was maintainable in contractual disputes where the public authority did not act fairly, justly and reasonably and placed reliance upon the judgments in the case of Airport Services Vs. Airport Manager (1998 SCMR 2268), Ramna Pipe Vs. Sui Southern Gas Company (2004 SCMR 1274), Wak Orient Power Vs. Ministry of Water & Power (1998 CLC 1178), unreported judgment in the case of Anoud Tasveer Vs Federation of Pakistan). He contended that M/S TransKarachi was a government owned Company and falls within the definition of person and was amenable to writ jurisdiction of this Court and placed reliance upon the judgments in the case of Salahuddin Vs. Frontier Suga r Mills (PLD 1975 SC 244) , Pakistan Defence Officers Housing Authority Vs. Col. Syed Jawed Ahmed (2013 SCMR 1707), PIA Corporation Vs. Tanveer ur Rehman (PLD 2010 SC 676). He further contended that though forum for redress of contractual disputes was available within the contract agreement but pending adjudication of disputes before other forum, the interim relief can be granted by this Court under article 199 of the Constitution of Islamic Republic of Pakistan, of 1973 (the Constitution) and relied upon th e judgment in the case of Pak Saudi Fertilizers Ltd. Vs Federation of Pakistan (2002 PTD 679) . He contended that final relief can be granted at the interim stage and relied upon the judgment in the case of Government of Pakistan Vs. M.I. Cheema, Deoraj Vs State of Maharashtra & others, JDW Sugar Mills Vs. Federation of Pakistan (PLD 2024 Sindh 348). He contended that by sealing the project site without notice, the Petitioners were not dealt in accordance with law and fundamental rights of the Petitioners a s to business were curtailed which tantamount to
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violation of guarantee ensured under article 4, 9, 10 -A and 18 of the Constitution. He relied upon the unreported judgments in the case of Samina Alvi and another Vs Province of Sindh & others (CPD No 4934 o f 2024), Faisal Hameed Vs. Federation of Pakistan (CPD 803 of 2024) . He lastly prayed to allow this Petition.
3. Mr. Jehanzeb Awan, Learned Counsel for Respondent No 7 ( M/S TransKarachi) contended that Petitioners were awarded contract of BRT Corridor on University Road but they failed to execute the contract in terms of contract agreement, therefore, a termination notice in terms of the said agreement had been given to the Petitioner. He contended that on Petitioners were under an obligation to act upon the termination notice and hand over the site peacefully to Employer ( M/S TransKarachi). He contended that if Petitioner fail to comply with directions contained under termination notice, the action in accordance with law shall follow. He contended t hat project Site was not sealed but Petitioners’ Project Office was sealed and M/s TransKarachi had no relation or concern with the sealing of project Office. He contended that writ was not maintainable against the contractual obligations. He contended tha t on expiry of notice period the contract of Petitioners would be terminated as Petitioners were causing unnecessary delay in project which has resulted in huge inconvenience to people of Karachi. He contended that on termination of Contract bidding process would be conducted afresh. He prayed to dismiss the petition.
4. Mr Jawwad Dero, Learned Advocate General Sindh contended that the Petition was totally misconceived. He contended that Petitioners by twisting the pleadings have made an attempt to get life for the contract which M/S TransKarachi intended to terminate. He contended that no action with regard to the sealing of Project site was taken but Petitioners’ project office was sealed. He contended that Petitioners obtained Ten Acres Land on rent from K arachi Metropolitan Corporation (KMC) for establishment of project camp office for three years in July 2022. He contended that premises were leased out to Petitioners on certain terms and conditions which they failed to fulfill. He further contended that o n expiry of three years’ tenancy period, Petitioners were informed in writing to vacate the premises but despite repeated notices they failed to hand over the possession to KMC, therefore, KMC initiated action to retrieve the
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possession. He contended that on KMC’s request Commissioner Karachi directed Revenue Authorities for assistance. He contended that ample opportunity was provided to Petitioners to lift articles from the premises therefore, while retrieving the possession it was deemed necessary to seal the premises with sole aim of safety and safeguard of the articles kept in the property. He contended that Petitioners were aware about action taken by KMC but they deliberately did not array KMC as party to proceedings and twisted the relief towards cont ractual obligations. He contended that Project Site was not sealed it was open, however, government was rehabilitating the portions of University Road to ensure a safe passage for commuters. He contended that Petitioners were awarded contract of BRD Corridor on University Road but due to their in -expertise entire University Road was distributed and closed for traffic resulting into huge public cry. He contended that Petitioners have failed to comply with the contract agreement therefore government has decid ed to terminate the contract and for fresh bidding. He contended that action of sealing the project office was done in accordance with law. He contended that project land was retrieved on the request of KMC and now possession lies with original owner. He prayed to dismiss the petition.
5. Heard Arguments of Learned Counsel for the parties and perused material made available before us.
6. The crux of controversy involved in the instant petition related to a very important project involving public transport facility for Karachities. It is a much needed Bus Rapid Transit (BRT) corridor on University Road, which remains a limelight of every one’s talk.. University Road is lifeline of Karachi, as it not only houses Karachi’s largest educational network such as Karachi University, NED University, Federal Urdu University, Dow Medical University, Dawood Engineering University, Islamia College but also is a centre link to Country’s major wholesale market. University Road is center part of Karachi and it acts as heart and soul of city. Karachi has expanded as a massive populous and industrial city since the independence. Karachi represents a true picture of Pakistan as it accommodates all federating units and is mother of all cultures in the country. Karachi has loved and welcomed every one with open heart.
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7. Karachi is the largest populous city of Pakistan. The population of Karachi is estimated to be around 20.3 million as per Census estimates of 2023. The city's population continues to grow at about 5% per annum, largely thanks to its strong economic base and spans over a metropolitan area of roughly 3,527 square kilometers. The population and demographic distribution in the megacity has undergone numerous changes over the past 80 years. On 14th August, 1947, when Pa kistan emerged as an Independent Sovereign state, its population was about 450,000 inhabitants. By 1951, the city population had crossed one million mark. In the following decade, the rate of growth of Karachi was over 80 percent. Today, the city has grown 40 times to its size in 1947. Rapid expansion of Karachi invited many problems, the major one being transport facility to public which caters to the environmental needs of the city.
8. Haphazard increase in population of mega cities round the globe due to a population drift in search of bread and butter exposed various threats including that of environment. Increase in population of Mega Cities already a hub of industrial system multiplied environmental hazards. It resulted in unchecked vehicle augmentation and polluted the environment, that many of the mega cities were treated as humanly not liveable. Karachi also faced similar situation and by now it is indexed amongst some of the worst pollution hit cities.
9. The United Nations met about five decades ago i n year 1972 to make world environmental friendly and adopted Declaration of the United Nations Conference on the Human Environment, popular as “Stockholm Declaration”. The declaration adopted seven proclamations and 26 principles for human environment which reads as under:
The United Nations Conference on the Human Environment, having met at Stockholm from 5 to 16 June 1972, having considered the need for a common outlook and for common principles to inspire and guide the peoples of the world in the preservation and enhancement of the human environment,
Proclaims that:
1. Man is both creature and moulder of his environment, which gives him physical sustenance and affords him the opportunity for intellectual, moral, social and spiritual growth. In th e long and tortuous evolution of the human race on this planet a stage has been reached when, through the rapid acceleration of science and technology, man has acquired the power to transform his environment in countless ways and on an unprecedented scale. Both aspects of man's environment, the natural and
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the man-made, are essential to his well-being and to the enjoyment of basic human rights the right to life itself.
2. The protection and improvement of the human environment is a major issue which affec ts the well -being of peoples and economic development throughout the world; it is the urgent desire of the peoples of the whole world and the duty of all Governments.
3. Man has constantly to sum up experience and go on discovering, inventing, creating a nd advancing. In our time, man's capability to transform his surroundings, if used wisely, can bring to all peoples the benefits of development and the opportunity to enhance the quality of life. Wrongly or heedlessly applied, the same power can do incalculable harm to human beings and the human environment. We see around us growing evidence of man-made harm in many regions of the earth: dangerous levels of pollution in water, air, earth and living beings; major and undesirable disturbances to the ecologica l balance of the biosphere; destruction and depletion of irreplaceable resources; and gross deficiencies, harmful to the physical, mental and social health of man, in the man -made environment, particularly in the living and working environment.
4. In the developing countries most of the environmental problems are caused by under -development. Millions continue to live far below the minimum levels required for a decent human existence, deprived of adequate food and clothing, shelter and education, health and sanitation. Therefore, the developing countries must direct their efforts to development, bearing in mind their priorities and the need to safeguard and improve the environment. For the same purpose, the industrialized countries should make effo rts to reduce the gap themselves and the developing countries. In the industrialized countries, environmental problems are generally related to industrialization and technological development.
5. The natural growth of population continuously presents problems for the preservation of the environment, and adequate policies and measures should be adopted, as appropriate, to face these problems. Of all things in the world, people are the most precious. It is the people that propel social progress, create social wealth, develop science and technology and, through their hard work, continuously transform the human environment. Along with social progress and the advance of production, science and technology, the capability of man to improve the environment increases with each passing day.
6. A point has been reached in history when we must shape our actions throughout the world with a more prudent care for their environmental consequences. Through ignorance or indifference we can do massive and irreversible harm to the earthly environment on which our life and well being depend. Conversely, through fuller knowledge and wiser action, we can achieve for ourselves and our posterity a better life in an environment more in keeping with human needs and hopes. There are broad vistas for the enhancement of environmental quality and the creation of a good life. What is needed is an enthusiastic but calm state of mind and intense but orderly work. For the purpose of attaining freedom in the world of nature, man must use know ledge to build, in colaboration with nature, a better environment. To defend and improve the human environment for present and future generations has become an imperative goal for mankind-a goal to be pursued together with, and in harmony with, the established and fundamental goals of peace and of worldwide economic and social development.
7. To achieve this environmental goal will demand the acceptance of responsibility by citizens and communities and by enterprises and institutions at every level, all s haring equitably in common efforts.
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Individuals in all walks of life as well as organizations in many fields, by their values and the sum of their actions, will shape the world environment of the future. Local and national governments will bear the greates t burden for large -scale environmental policy and action within their jurisdictions. International cooperation is also needed in order to raise resources to support the developing countries in carrying out their responsibilities in this field. A growing cl ass of environmental problems, because they are regional or global in extent or because they affect the common international realm, will require extensive cooperation among nations and action by international organizations in the common interest.
The Con ference calls upon Governments and peoples to exert common efforts for the preservation and improvement of the human environment, for the benefit of all the people and for their posterity.
Principles States the common conviction that:
Principle 1
Man has the fundamental right to freedom, equality and adequate conditions of life, in an environment of a quality that permits a life of dignity and well-being, and he bears a solemn responsibility to protect and improve the environment for present and fu ture generations. In this respect, policies promoting or perpetuating apartheid, racial segregation, discrimination, colonial and other forms of oppression and foreign domination stand condemned and must be eliminated.
Principle 2
The natural resources of the earth, including the air, water, land, flora and fauna and especially representative samples of natural ecosystems, must be safeguarded for the benefit of present and future generations through careful planning or management, as appropriate.
Principle 3
The capacity of the earth to produce vital renewable resources must be maintained and, wherever practicable, restored or improved.
Principle 4
Man has a special responsibility to safeguard and wisely manage the heritage of wildlife and its habitat, which are now gravely imperiled by a combination of adverse factors. Nature conservation, including wildlife, must therefore receive importance in planning for economic development.
Principle 5
The non -renewable resources of the earth must be e mployed in such a way as to guard against the danger of their future exhaustion and to ensure that benefits from such employment are shared by all mankind.
Principle 6
The discharge of toxic substances or of other substances and the release of heat, in such quantities or concentrations as to exceed the capacity of the environment to render them harmless, must be halted in order to ensure that serious or irreversible damage is not inflicted upon ecosystems. The just struggle of the peoples of ill countrie s against pollution should be supported.
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Principle 7
States shall take all possible steps to prevent pollution of the seas by substances that are liable to create hazards to human health, to harm living resources and marine life, to damage amenities or to interfere with other legitimate uses of the sea.
Principle 8
Economic and social development is essential for ensuring a favorable living and working environment for man and for creating conditions on earth that are necessary for the improvement of t he quality of life.
Principle 9
Environmental deficiencies generated by the conditions of under - development and natural disasters pose grave problems and can best be remedied by accelerated development through the transfer of substantial quantities of financial and technological assistance as a supplement to the domestic effort of the developing countries and such timely assistance as may be required.
Principle 10
For the developing countries, stability of prices and adequate earnings for primary commodities and raw materials are essential to environmental management, since economic factors as well as ecological processes must be taken into account.
Principle 11
The environmental policies of all States should enhance and not adversely affect the present or future development potential of developing countries, nor should they hamper the attainment of better living conditions for all, and appropriate steps should be taken by States and international organizations with a view to reaching agreement on meeting the possible national and international economic consequences resulting from the application of environmental measures.
Principle 12
Resources should be made available to preserve and improve the environment, taking into account the circumstances and particular requirements of developing countries and any costs which may emanate - from their incorporating environmental safeguards into th eir development planning and the need for making available to them, upon their request, additional international technical and financial assistance for this purpose.
Principle 13
In order to achieve a more rational management of resources and thus to im prove the environment, States should adopt an integrated and coordinated approach to their development planning so as to ensure that development is compatible with the need to protect and improve environment for the benefit of their population.
Principle 14
Rational planning constitutes an essential tool for reconciling any conflict between the needs of development and the need to protect and improve the environment.
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Principle 15
Planning must be applied to human settlements and urbanization with a view to avoiding adverse effects on the environment and obtaining maximum social, economic and environmental benefits for all. In this respect projects which arc designed for colonialist and racist domination must be abandoned. Principle 16
Demographic policies which are…
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