LHC dismisses industries’ pleas challenging CCP formation

LAHORE: The Lahore High Court (LHC) Monday dismissed a long pending set of petitions by almost all industries, challenging establishment of the Competition Commission of Pakistan (CCP) and the competence of the parliament to enact a law on the subject of competition.

The industries including cement, oil & gas, energy, fertilisers, healthcare, education, telecom and real estate also moved the high court on the same grounds and got stay against the commission’s actions. A full bench comprising Justice Ayesha A Malik, Justice Shahid Jamil Khan and Justice Sajid Mahmood Sethi held the hearing on the petitions in June this year and reserved its judgment on July 16.

The petitioners’ case was that there was no entry in the Federal Legislative List (FLL) which allowed the parliament to enact a law on the subject of competition. They argued that parliament did not have the power to make laws on matters which were not enumerated in the FLL as all residue power was vested with the provinces after the 18th Amendment to the Constitution. They said the FLL did not contain any entry on the subject of competition or monopolies or in any manner with reference to anti-trust restrictions.

The attorney general had argued that competition was a federal subject and fell within parliament’s legislative authority under the provisions of the Constitution.

The bench did not agree with the petitioners and observed that the parliament could legislate on the subject of trade, commerce, industry and intercourse so as to keep it ‘free’ throughout the country and in the interest of free competition. On the question of parallel judicial system in terms of Competition Appellate Tribunal (CAT), the bench observed that establishment of administrative courts and tribunals for federal subjects was provided for in the FLL of the Constitution, which authorised the parliament to establish administrative courts and tribunals in relation to federal subjects.