ISLAMABAD: In a landmark decision, the Lahore High Court, led by Justice Jawad Hassan, has upheld the validity of show-cause notices issued by the Competition Commission of Pakistan (CCP) in the poultry matter concerning price fixing of day-old chicks.
The decision reaffirms CCP’s authority to pursue investigations and act against monopolistic practices, ensuring a competitive market environment.
Justice Jawad Hassan emphasized that a show-cause notice issued on the basis of an inquiry report cannot be prematurely contested in the High Court. Referring to the legal doctrine of “ripeness”, he ruled that cases should proceed through CCP hearings, allowing appeals only after the CCP’s final decision. The judgment clarifies the CCP’s jurisdiction, safeguarding its autonomy to enforce competition laws without undue interference.
The court noted that obstructing CCP functions could hinder the Commission’s role in preventing anti-competitive practices and promoting fair business competition. Justice Hassan underscored the judiciary’s duty to support regulatory bodies like the CCP in upholding competitive integrity across industries.
Moreover, if the Court starts interfering at initial steps of the Regulator for not initiating inquiry, then it will create hurdle for the Regulator to proceed in the matter to protect the very purpose and object of law. It is settled law by now that this Court, before granting relief to a petitioners by exercising its extraordinary jurisdiction under Article 199 of the “Constitution”, must satisfy itself regarding the non-availability of any alternate remedy, or in case Court is inclined to grant relief even in presence of alternate remedy, Court should be satisfied that circumstances of the case make the other remedy inadequate.
The petitioner’s counsel argued that there were procedural lapses in the enquiry report; therefore show-cause notices should not have been issued. However, the CCP’s legal team, comprising Barrister AsadUllah Chatha, CCPs legal advisors, Barrister AmbreenAbbasi, Hafiz Muhammad Naeem and Hassan Raza, challenged the maintainability of the petition, a position the court ultimately upheld.
The CCP investigated suspected collusion and price-fixing by eight hatcheries for day-old broiler chicks from 2019 to June 2021. Forensic analysis revealed that prices were coordinated via SMS and WhatsApp by an official of a member firm.
The Pakistan Poultry Association (PPA) was also found in possible violation of Section 4 of the Competition Act for involvement in pricing discussions. However, the poultry companies M/s Sadiq Poultry and M/s Islamabad Feeds challenged the show-cause notices and have secured a stay order, temporarily halting CCP’s proceedings. This comprehensive 21-page judgment now stands as a precedent, strengthening the CCP’s authority to enforce anti-trust laws and foster fair competition within Pakistan’s economic landscape.
CCP Chairman Dr Kabir Sidhu has strategically strengthened the CCP’s legal team to enhance its capability in dealing complex competition cases and regulatory challenges. This overhaul has improved efficiency, and prioritized resolution of legal backlogs.
As a result, over 40 cases have been resolved by Competition Appellate Tribunal (CAT), High Courts and Supreme Court of Pakistan. The resolution of cases resulted in recovery of Rs100 million from businesses involved in anti-competitive practices.
Copyright Business Recorder, 2024
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