The two-member bench comprising Justice Dost Muhammad Khan and Justice Qazi Faez Isa heard the case.
The court also rejected the report submitted by Capital Development Authority regarding slum areas of the federal capital and directed the authority to submit a comprehensive report in two months.
The court also directed the government to form a commission for town planning and to review the matters of Katchi Abadis.
The court also issued show-cause notices to Advocate Generals of Punjab and Sindh over absence from court proceedings.
During proceedings of the case, Justice Qazi Faez Isa remarked that provision of shelter to homeless people was constitutional responsibility of the government.
The court directed the government to prepare bill and table it before National and provincial assemblies within two months.
Justice Dost Muhamamd Khan remarked that the civic agency launched many housing schemes but did not fix any quota for poor.
Later, hearing of the case was adjourned for two months.