The Federal Constitutional Court (FCC) on Monday set aside all Sindh High Court (SHC) orders relating to the Nai Gaj Dam project and restrained courts from interfering in its construction until completion, ruling that further litigation should not delay a project of significant public importance.
The Nai Gaj Dam project in Sindh’s Dadu district was launched in 2009 with an estimated cost of Rs17 billion to support irrigation, conserve water and rehabilitate Manchar Lake.
The project has since faced repeated delays due to design changes, cost revisions, funding constraints and disputes between the federal and provincial governments over revised financing arrangements.
The bench, comprising Chief Justice Aminuddin Khan and Justice Ali Baqar Najafi, was hearing petitions filed by the Water and Power Development Authority (WAPDA).
The 17-page judgment held that disputes arising from the construction contract must be resolved through the mechanism agreed by the contracting parties rather than through judicial intervention.
Read: Private land acquisition required for Nai Gaj dam
“The present matter involves a project of immense public importance undertaken with public funds for the purposes of irrigation, rehabilitation of Manchar Lake, agricultural development and water conservation,” the court observed.
While contractual rights deserved protection, it added, disputes should be resolved in a manner that did not unnecessarily impede the timely completion of critical public infrastructure.
The court held that the SHC had issued its orders without properly considering the applicable legal framework, including the dispute resolution mechanism under the contract and the relevant provisions of the WAPDA Act and the National Accountability Bureau laws.
It further observed that the jurisdiction of the high courts under Article 199 of the Constitution could not be expanded beyond constitutional limits, warning that such judicial overreach could result in a miscarriage of justice.
Read More: Senate panel grills WAPDA on dam woes
Allowing the appeals, the FCC set aside the SHC’s judgment dated May 27, 2025, along with its orders of October 6, 2023, and June 13, 2025. The court also disposed of Constitutional Petition No 64 of 2018 and all pending applications.
The judgment directed WAPDA to decide within 15 days any request submitted by the contractor expressing its willingness to resume and complete the project.
Such a request must be filed within one week of the judgment and include an undertaking to complete the remaining work in accordance with the original contract, the arbitral award, the court decrees issued on February 19 and July 31, 2021, and the memorandum of understanding signed on September 21, 2021.
The court further instructed WAPDA to assess the remaining scope of work and determine a reasonable extension of time in line with the contractual provisions.
It added that if the contractor failed to honour its contractual obligations, WAPDA would be free to re-tender the remaining works in accordance with the law.Latest News, Breaking News & Top News Stories | The Express TribuneJahanzeb AbbasiRead More