SHC sets aside commerce ministry’s decision of cancelling shipbreakers association’s licence

The Sindh High Court (SHC) has set aside the ministry of commerce order with regard to cancellation of the Pakistan Ship Breakers Association’s (PSBA) licence and directed the ministry to decide the appeal of the petitioner afresh after providing ample opportunity of hearing to the association’s representatives.

The order came on a petition of the PSBA against the rejection of its appeal with regard to the cancellation of its licence by the ministry of commerce. A counsel for the petitioner submitted that the PSBA was a trade body of the shipbreaking industry and it was registered on April 19, 2013, with the director general trade organisation (DGTO). The counsel submitted that the impugned order was communicated to the PSBA secretary general intimating the cancellation of licence with immediate effect on the premise that the cut-off date for the submission of an application for the renewal of licence was January 18, 2018, but the association had failed to apply for the renewal.

He submitted that an appeal was filed before the ministry of commerce, which dismissed it on January 3, 2019. He informed the SHC that the address of the association’s office had been changed and the show-cause notice was allegedly sent at the previous address, and hence, the question of submitting a reply did not arise.

The counsel pointed out that the regulator had ample powers and discretion to extend the period for applying for the renewal of licence, and submitted that despite such expressed provision available for extension, the appellate authority failed to consider the cause of the delay. The petitioner’s counsel admitted that there were some lapses for applying for the renewal of licence, but the action of cancellation was taken without providing any opportunity of hearing and due process of law.

He submitted that the impugned order was affirmed by the appellate authority without passing any speaking order with regard to the effect of non-service of show-cause notice and circumstances that had resulted the delay.

A division bench of the SHC headed by Justice Mohammad Ali Mazhar, after hearing the arguments of the counsel, observed that the DGTO had issued the show-cause notice on August 6, 2018, under the Section 7 of the Trade Organizations Act, 2013 as to why the licence of the association may not be cancelled, but the association failed to respond to the notice.

The high court observed that the Section 9 of the law provided that where the licence of a trade organisation was cancelled under the Section 7, the federal government may consider grant of license de novo after a period of one year from the date of the cancellation of licence.

The bench observed that the appellate order had primarily focused on the issuance of the show-cause notice and non-submission of reply by the petitioner but the prime question was never considered, which was the change of address and non-service of the show-cause notice.

The court set aside the appellate order with regard to the cancellation of the PSBA licence and directed the ministry of commerce to decide the appeal of the PSBA afresh after providing ample opportunity of hearing to the petitioner. The court observed that the appellate authority shall consider all the pleas raised by the petitioner afresh and pass a speaking order within one month.