A two-member bench of IHC headed by Justice Noorul Haq Qureshi gave the "two-month deadline" to the Islamabad Anti-Terrorism Court to conclude the case against Mumbai attack mastermind Lakhvi and six others going on since 2009.
The bench was hearing the government's plea for cancellation of 55-year-old Lakhvi's bail.
After the arguments from the prosecution and defence lawyers, the bench said: "This court gives two months to the trial court to conclude the Mumbai case and adjourns this case (a plea to cancellation of bail to Lakhvi) till then."
"The court is pending this case for a period of two months till the conclusion of the Mumbai case. If it is reported that the Mumbai case could not be concluded (in two months) because of delaying tactics of the defence lawyers this court will cancel Lakhvi's bail," the judge remarked.
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He was responding to the arguments of the prosecution that the Mumbai case had been inordinately delayed because of the delaying tactics of the defence lawyers.
The government managed to keep Lakhvi behind the bars under the MPO for nearly four months since the trial court granted him bail on December 19 last year.
On April 10, Lakhvi was released from the Adiala Jail in Rawalpindi after the Lahore High Court suspended his detention under a security act.
India lodged a strong protest over the release, saying the "negative development" reinforced the perception that Pakistan has a dual policy on dealing with terrorists.
He and six others -- Abdul Wajid, Mazhar Iqbal, Hamad Amin Sadiq, Shahid Jameel Riaz, Jamil Ahmed and Younis Anjum -- have been charged with planning and executing the Mumbai attack in November, 2008 that left 166 people dead.