SC reserves verdict in Royal Palm case

By Sohail Khan
April 12, 2019

ISLAMABAD: Federal Minister for Railways Sheikh Rashid Ahmed on Thursday said that the National Accountability Bureau (NAB) is not so powerful so as to conduct the trial of four generals allegedly involved in illegal lease of the railway’s prime land to the Royal Palm Club management.

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The Federal Minister for Railways argued before a three-member bench of the apex court headed by Justice Sheikh Azmat Saeed that reserved a judgment in a petition, challenging the validity of the contract between Pakistan Railways and Mainland Husnain relating to Royal Palm Golf & Country Club. PTI leader Ishaq kahn Khaqwani had filed the petition the apex court. Other members of the bench comprised Justice Faisal Arab and Justice Ijazul Ahsen

Sheikh Rashid contended that railways is near the path of bankruptcy adding that elimination of corrupt bureaucracy is the need of the hour for changing the country’s condition. In this respect, he said that only the country’s highest court can ensure the elimination of corrupt bureaucracy.

He said that the anti-graft body can’t dare to hold the trail of retired generals involved in illegal lease of the railway’s prime land to the Royal Palm Club management.

A NAB reference is also pending before an Islamabad accountability court against the illegal lease of the railway’s prime land to the Royal Palm Club management.

The suspects in the reference include Lt-Gen retired Javed Ashraf Qazi, then chairman and minister of railways, Lt -Gen retired Saeeduz Zaman, former secretary and chairman of the railways board, Maj-Gen retired Hamid Hassan Butt, Brig retired Akhtar Ali Baig, Iqbal Samad Khan, Khurshid Ahmed Khan, Abdul Ghaffar, Pervez Qureshi and Ramzan Sheikh (one of the owners of the club).

Sheikh Rashid submitted that Qatar has offered to take the railway’s land on lease saying that the Board of Investment has observed that it is the best chance to take out Railways from deficit. He informed the court that the Golf Club got the railways 103 acres land on lease and later on got other land as well. He submitted that the client had to pay Rs52 per square yard but the parties concerned used to pay only Rs4 per square yard

Similarly he said that according to the assessment made by the parties concerned the amount for the land was Rs1. 2 billion. “But according to our assessment, Rs 5 billion was required to be paid to the Railways,” Sheikh Rashid said. This is Qabza Mafia which had taken over 40 percent additional land of Railways, Sheikh Rashid alleged adding that this is the biggest corruption case of the sub continent.

Barrister Syed Ali Zafar, arguing on behalf of Mainland Husnain, submitted that firstly each and every allegation made in the petition is mirrored in a reference filed by NAB in this very case in the Accountability Court.

He contended that any finding on any of the issues, whether in favour of or against Mainland Husnain, will prejudice the criminal trial and, therefore, either the Court should dispose of the petition and wait for the final outcome of the trial in the Accountability Court or quash the reference and decide the matter itself.

He questioned as to whether the Supreme Court could proceed in the matter under Article 184(3) without a trial adding that under Article 10-A of the Constitution, the civil and criminal liabilities of any person have to be decided by fair trial and therefore Article 184(3) is not the appropriate remedy.

As a third preliminary submission, Barrister Zafar argued that the contract between the parties contained an arbitration clause which provided that all disputes must be settled through arbitration, and accordingly this dispute between Pakistan Railways and Mainland Husnain has to be decided by arbitration.

Justice Ijazul Ahsen however, observed that the court decides the matter directly on the basis of admitted facts and also empowered to declare the contract as null and void on the basis of admitted facts.

Barrister Ali Zafar informed the court that the advertisement and bidding documents clearly specified that Pakistan Railways has the site of 162 acres which also contained a golf course of 103 acres and that proposals were invited from parties for the best possible design to build a golf course and other facilities along with club house, tennis court, swimming pools, restaurants etc.

Barrister Aitizaz Ahsen, Barrister Wasim Sajjad, representing other parties in the instant mater also argued before the court while Salman Akram Raja, counsel for Pakistan Railways also argued. Meanwhile, the court reserved the judgment in the instant case.

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