The court directed the secretary of the provincial culture and archaeology department to explain if the government was still interested in acquiring the house and turn it into a national monument, Dawn online reported.
The order was issued on a petition of Haji Lal Mohammad Khan, owner of the house, who is seeking orders for the government to de-notify the purchase of the house.
Haji Lal's counsel Shahnawaz Khan challenged the historical significance of the residence, saying much misinformation was attached to the property.
"The house was initially in the ownership of Ghulam Mohiyuddin who transferred it on January 26, 1943, to Ghulam Sarwar, father of Dilip Kumar (Yousaf Khan), the Indian film star," the petitioner said.
There was a claim that Dilip Kumar spent his childhood in the house. This was contrary to the facts on record as he was born in 1922 and his father purchased the property in 1943, Shahnawaz said.
The lawyer said the house in question could not be called Dilip Kumar's ancestral property as his father had sold it within three days of the purchase.
The then provincial government in 2012 issued a notification of acquiring the house, but the petitioner turned down the offer.