LHC Chief Justice Syed Mansoor Ali dismissed the petition, observing "the matter raised by the petitioner is not justifiable before the court and falls within the domain of politics".
The court announced the verdict on Friday which it had reserved last month after hearing arguments from Saeed's counsel A K Dogar.
Dogar said Saeed will challenge the verdict in the intra-court.
In the petition Saeed said India had been "committing atrocities on Kashmiris and violating the UN resolutions".
He alleged that Indian forces were killing innocent Kashmiris and had ruined their daily life.
Saeed, who carries a $10 million bounty on his head, further said India also did not give Kashmiris their right to self-determination.
Dogar in his arguments said "(former Prime Minister) Jawaharlal Nehru had taken the Kashmir dispute to the UN Security Council and announced that if Kashmiris wanted to go with Pakistan then India would not send its army to Kashmir. However, the Indian government later betrayed its undertaking".
Citing different judgements, Dogar said if an issue involves public interest the court can interfere in political and foreign issues.
"Indian army is killing innocent Kashmiris, but Pakistan government is doing nothing practically except issuing statements," Dogar said.
Criticising the LHC verdict, Dogar said the single bench in its dismissal order did not notice that the appellant was seeking enforcement of fundamental right to live with peace and security and without fear of another war with India.
"It is the duty of superior courts to practically enforce the provisions of a fundamental right and issue directions to this effect," he said.
Diplomatic tensions between India and Pakistan have been rising since the September 18 attack on an army base in Uri in Jammu and Kashmir that killed 18 Indian soldiers.
Pakistan has rejected allegations of its involvement in the assault with both countries hitting out at each other including at the UN General Assembly.
Photograph: Reuters
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