Reko Diq case: concessions, exemptions against law, Supreme Court told

Chief Justice Iftikhar Muhammad Chaudhry observed during hearing of Reko Diq case on Tuesday that transparency and upholding the law in contractual agreements are of far-reaching national import. A three-judge bench led by the Chief Justice Iftikhar Muhammad Chaudhry resumed the hearing of identical petitions filed against the lease awarded to foreign companies to mine gold and copper rich fields in Reko Diq in district Chaghai, Balochistan.
Resuming his arguments in the case, Ahmer Bilal Soofi, the counsel for Balochistan government, contended that concessions and exemptions were granted to BHP Billiton in the instant matter against the law. Soofi pleaded that mineral laws barred the government from entering into an agreement for exploration with any foreign company to which the Chief Justice observed that amendments were made in the Balochistan mineral law to attract or welcome foreign investors and added that court supported the application of those laws.
During the course of proceedings, the Chief Justice directed Soofi to cite local instead of international laws to substantiate his contentions in the matter and added that no company - foreign or local - was above the constitution. According to the Chief Justice, it is mandatory to follow Article 5 of the Constitution when entering into an agreement with a foreign company which stipulates loyalty to state and obedience to the Constitution and law by all.
The Chief Justice referred to the Pakistan Steel Mills (PSM) case, maintaining that the PSM contract was annulled because it was violative of the law. According to him, no contract has any legal status if it is contrary to law and the constitution. He further observed that the Balochistan government could not object to concessions/exemptions granted to a foreign company in the instant matter which was earlier granted by the provincial government itself.
The Chief Justice remarked that the Balochistan government should rectify its own mistakes instead of passing on the onus to the court. Quoting the Contract Act of Pakistan, the Chief Justice remarked that it allowed limited amendments in an agreement, subject to correction of any clause of the contract. The bench adjourned the hearing of case till December 12.