LAHORE – The Lahore High Court on Monday stayed the proposed auction of dozens of commercial shops located in Jaranwala that have long been leased out to tenants, after 40 shopkeepers challenged the auction through a writ petition.
Justice Malik Javaid Iqbal Wains took up the case on Monday and issued a stay order, restraining the authorities from going ahead with the auction scheduled for July 25, 2025.
The petition was filed by 40 tenants through Advocate Chaudhry Shoaib Saleem. The petitioners, many of whom have been running businesses at the same premises since before or shortly after the creation of Pakistan, argued that the auction move was unlawful and violated their legally protected tenancy rights.
Punjab Chief Secretary, Secretary Local Government, Secretary Colonies Department, Deputy Commissioner Faisalabad, Assistant Commissioner Jaranwala, were cited as respondents in the petition.
According to the petition, some of these shops were constructed by the petitioners themselves in 2005 under a public-private arrangement, while others were built by the municipal administration and leased out to tenants under oral and later formal agreements.
The petitioners said they had signed formal written tenancy agreements with the local municipal corporation in December 2023, in line with Punjab Local Government policies and a notification issued by the Secretary of Colonies on September 30, 2019. Under these agreements, rent is regularly paid with a 10% annual increase, and no tenant is in default.
Despite this, the Deputy Commissioner Faisalabad issued an auction notice published in newspapers which included these already-leased shops. The petition contended that this move violated 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 highlighted that they had deposited significant security amounts — reportedly around Rs 500,000 per shop in 2005 — which are still held by the government.
The court, after hearing initial arguments, issued a stay order against the auction proceedings and adjourned the hearing for further proceedings. The petitioners have requested the court to declare the auction notice unlawful and to restrain the government from taking any coercive measures against the tenants.
