LHC extends stay order against CCP’s show-cause notices to sugar mills

LAHORE: The Lahore High Court (LHC) on Thursday extended a stay order against the show-cause notices of the Competition Commission of Pakistan (CCP) issued to several sugar mills owned by politicians of the ruling and opposition parties, for alleged violation of laws in a bid to monopolise the commodity.

SW Sugar Mills, Gojra Samundari Sugar Mills and others challenged the legality of the notices and the jurisdiction of the CCP.

Read more: LHC issues show cause notices to sugar mills of Khusro Bakhtiar, Sharif family

Advocate Sultan Ali Awan contended on behalf of the mills that the impugned notices had been issued on the basis of an illegal inquiry report prepared under a redundant law of 2007. He stated that petitions against previous notices were already pending before the Supreme Court and the commission issued the fresh impugned notices to the petitioners.

The counsel also questioned the existence of the CCP saying the commission, under the law, shall consist of not less than five members and not more than seven. However, he said, at present, there were only four members of the commission in utter violation of the mandatory provisions of the Competition Act 2010.

He argued that the entire composition of the CCP was neither in accordance with the law nor it fulfilled the mandatory statutory requirements.

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The counsel asked the court to set aside the impugned show-cause notices and also declare the CCP non-existent, invalid and illegal for being not in consonance with the law.

After hearing some arguments, Justice Ayesha A Malik extended the stay order till December 29. The court on December 9, had suspended the operation of the impugned notices and sought replies from the respondents.