Sugar mills’ petition dismissed; CCP’s actions against sugar mills valid, legal: SHC

KARACHI: Sindh High Court on Monday dismissed petitions filed by sugar mills against the powers of the Competition Commission of Pakistan (CCP), observing that Competition Act 2010 had enacted by the parliament and the previous ordinances, 2007, 2009 and 2010 were a valid piece of legislation and covered interprovincial trade, commerce and intercourse throughout Pakistan.

Dismissing petitions of sugar mills against the show cause notices issued by the CCP, SHC’s division bench headed by Justice Mohammad Iqbal Kalhoro observed that the parliament enjoyed power to legislate on subject of free competition in all spheres of commercial and economic activity to enhance economic efficiency and to protect consumers from cartelisation.

The court observed that all actions taken by the commission were valid and legal and the impugned show cause notices issued under the 2009 Ordinance to the petitioner sugar mills individually or Pakistan Sugar Mills Association based on inquiry report had been validly issued and did not suffer from any illegality or jurisdictional defect or incompetency to warrant interference by the court.

The court however held the provinces also enjoyed the same legislative power to introduce and ensure regime qua free competition to achieve the objectives, among others, set out in the Competition Act 2010 for enhancing economic efficiency and protecting consumers from anticompetitive behavior in respect of an economic activity strictly confined within their territorial limits physically and effectively.