SHC Quashes FIA Actions, Restores Karachi Cotton Exchange Building to Tenants

Mohsin Tayebaly & Co. successfully represented the tenants of the Karachi Cotton Exchange Building before the Sindh High Court in a significant constitutional matter concerning due process, the exercise of statutory powers by public authorities, and the legal status of the Karachi Cotton Association and the Karachi Cotton Exchange Building.

The Petitions arose from the sealing of the Karachi Cotton Exchange Building by the Federal Investigation Agency (FIA) and the Evacuee Trust Property Board (ETPB), the issuance of eviction notices to the tenants, and the registration of criminal proceedings based upon a 1963 Notification asserting that the Karachi Cotton Association was an Evacuee Trust Property.

By its judgment dated 18.06.2026, the High Court of Sindh held that the legal status of the Karachi Cotton Association and the Karachi Cotton Exchange Building had never been determined in accordance with the applicable statutory framework and that the impugned actions had been taken without due process of law and without affording the affected parties an opportunity of hearing, contrary to the constitutional guarantees contained in Articles 4 and 10-A of the Constitution.

The High Court of Sindh also suspended the 1963 Notification, quashed the FIR registered by the FIA, and directed the Chairman, Evacuee Trust Property Board, Islamabad, to undertake a fresh determination of the status of the Karachi Cotton Association after providing all interested parties a fair opportunity of hearing. Pending such determination, the Court directed that the Karachi Cotton Association shall remain in possession of the Karachi Cotton Exchange Building and continue its business activities without interference, thereby safeguarding the rights and interests of the tenants occupying the premises.

The firm’s team in this matter was led by Arshad Tayebaly, Senior Partner, and included Talha Javed, Senior Associate, and Zubair Hashmi, Associate.