LAHORE: The Lahore High Court on Monday barred authorities from going ahead with the planned auction of dozens of commercial shops in Jaranwala after tenants filed a writ petition challenging the legality of the move.
Justice Malik Javaid Iqbal Wains issued a stay order, suspending the auction scheduled for July 25, 2025, and sought replies from the concerned government departments.
The petition was filed by 40 shopkeepers through Advocate Chaudhry Shoaib Saleem. The petitioners, many of whom have been operating businesses at the premises since before or shortly after the creation of Pakistan, argued that the auction violated their tenancy rights and existing agreements with the municipal authorities.
According to the petition, some of the shops were constructed in 2005 by the tenants themselves under a public-private partnership, while others were built by the local administration and allotted to tenants through oral and subsequently written agreements.
Ch Shoaib Saleem argued that they the petitioners entered into formal tenancy agreements with the municipal corporation in December 2023, in accordance with Punjab Local Government policies and a notification issued by the Secretary of Colonies on September 30, 2019. They added that all tenants were up to date with rent payments, which included a 10% annual increase as per the agreements.
Despite this, the Deputy Commissioner Faisalabad issued a public auction notice covering these shops, prompting the tenants to approach the court.
The petition contended that the auction notice contravened Section 94(7) of the Punjab Local Government Act, 2022, and infringed upon the petitioners’ fundamental rights under Articles 4, 10-A, 14, and 18 of the Constitution.
The petitioners also pointed out that substantial security deposits, around Rs 500,000 per shop, made in 2005 were still held by the government.
The court stayed the auction proceedings and adjourned the case for further hearing. The petitioners have requested the court to declare the auction notice illegal and to restrain the government from taking any coercive action against them.
Respondents in the petition include the Punjab Chief Secretary, Secretary Local Government, Secretary Colonies Department, Deputy Commissioner Faisalabad, and Assistant Commissioner Jaranwala.
Copyright Business Recorder, 2025
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