Sugar mills’ relocation illegal, declares LHC

LAHORE: A division bench of the Lahore High Court on Monday scrapped relocation of three sugar mills, owned by Sharif family, from central Punjab to south Punjab, declaring ‘shifting illegal’ and without lawful authority. 

Announcing 38-page judgment on intra court appeals and petitions against single bench order, the bench led by Chief Justice Mansoor Ali Shah declared the relocation of Haseeb Waqas Sugar Mills (HWSM), Ittefaq Sugar Mills (ISML), and Chaudhry Sugar Mills (CSML) in violation of Punjab Industries (Control on Establishment and Enlargement) Ordinance, 1963 and Punjab Environmental Protection Act, 1997. 

The court ordered shifting of three sugar mills back to their original location within a time period of three months. Justice Shujaat Ali Khan was the other judge on the bench.  A single bench comprising Justice Ayesha A. Malik had issued a judgment on October 10, 2016 and declared the relocation of three sugar mills HWSM from Nankana Sahib to Muzaffargarh, ISML from Sahiwal to Bahawalpur and CSML from Toba Tek Singh to Rahim Yar Khan as illegal. Appeals were filed by these mills against the single bench order. 

Dismissing the appeals, the two-member bench held in order, “impugned judgment dated 10.10.16 of the learned single judge is upheld and it is declared that shifting/re-location of the aforesaid three sugar mills, from central Punjab to south of Punjab is in violation of the Ordinance, as well as, the ban notification, hence the establishment of the three sugar mills is declared illegal and without lawful authority”. 

The court also set aside relocation notification issued by Punjab government to facilitate the shifting of three sugar mills and ruled, “relocation notification dated 4.12.15 is declared ultra vires of the Ordinance, and is, therefore, set aside. 

Three sugar mills are directed to restore and restitute the position, as it stood when the first restraining order was issued in their case, respectively, by dismantling and removing the said mills from the present location within a period of three months from today.” 

The court further ruled that environmental assessment was not carried out for setting up three sugar mills to new location, which, according to court was blatant violation of Punjab Environmental Protection Act, 1997. 

“Commencement and setting up of the three sugar mills in the south of Punjab, without environmental impact assessment under the Punjab Environmental Protection Act, 1997, also renders the establishment of the three sugar mills illegal, the order explained.

“We also note with grave concern that ISML tried to mislead this court by misrepresenting that  the construction on site was being carried out for  setting up a power plant. HSWM also took the same plea. Now that it is admitted position that HWSM and ISML have become operational at their new locations in the south of Punjab, the plea regarding construction of power plant was no less than a fraud played on the court, the bench noted in the judgment. 

The bench went on to say, “the court had issued a status quo but CSML was established and went into operation in November 2016. Court order was totally ignored. The saddest part is that CSML admittedly belongs to Nawaz Sharif, former prime minister and his family. 

The court order further said, “inspite of the restraining orders of this court, the three sugar mills have been established and operationalised. It has also been submitted by the government that several sugar mills in central Punjab belonging to other established industrial groups of the country were facing similar operational and financial difficulties as the three sugar mills; however, no other sugar mill adopted this course of lawlessness. 

Initially, we were minded to keep the said mills sealed till such time that they procure permission under the Ordinance, if and when, the ban on setting up new sugar mills were to be lifted, however,considering that if court orders are allowed to be disobeyed by the elite, it would destroy the trust and confidence of the people in the system of justice. It would also debilitate and enfeeble the foundations of the rule of law in country. We cannot let this happen.

The strength of our democracy is in its core values of fairness, justice and accountability. Any step taken in violation of the restraining order of the court has to be reversed and the parties are bound to restitute and restore the original position as it was on the day when the restraining order was passed. Any compromise on this principle will decimate the sanctity of court orders and make a mockery of the judicial system, order concluded.