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Auction of local govt`s shops stayed

By Our Staff Reporter 2026-09-26
LAHORE: The Lahore High Court on Thursday restrained the authorities from proceeding with the auction of local government`s shops occupied by 40 petitioners in Jaranwala and summoned the Faisalabad deputy commissioner in person on Sept 28.

A two-judge bench comprising Justice Malik Waqar Haider Awan and Justice Malik Javed1gbal Wains passed the stay order hearing an intracourt appeal filed by the shopkeepers against a single-bench judgement.

Advocate Shoaib Saleem argued on behalf of the appellants that their case was different from 92 other petitions decided through the consolidated judgment regarding proprietary and lease rights over state and local government properties.

The counsel submitted that the appellants had valid written lease agreements executed in 2023after approval by the district assessment committee and had also agreed to revised rents.

He said the Jaranwala Municipal Corporation had subsequently started receiving rent from them.

The bench asked how the shops could be auctioned when written agreements regarding the appellants` rights were already before the court.

The counsel argued that auctioning shops already leased to the appellants was unlawful and contrary to Section 94 of the Punjab Local Government Act, 2022 and the Punjab Local Government (Property) Rules, 2008.

The bench stayed the auction and directed the Faisalabad DC to appear in person to explain the government`s position.

Meanwhile, a single bench comprising Justice Ahmad Nadeem Arshad also stayed auction proceedings against several other Jaranwala shopkeepers in similar petitions.