Commercial operations: SHC asks PSO to refrain from giving preferential treatment

Sindh High Court (SHC) has ordered Pakistan State Oil (PSO) to refrain from according preferential treatment to any entity including National Logistic Cell (NLC) in the conduct of its commercial operations.

PSO should treat all eligible persons equally, equitably and without any discrimination while carrying out the commercial operations, a division bench of SHC comprised of Justice Muhammad Ali Mazhar and Justice K K Agha ruled in a petition, filed by Shaheen Freight Services and others, requesting the court to direct PSO to conduct its commercial loading and decanting operations on a first come first serve basis, without any nepotism and/or discrimination.

According to written order of the bench, petitioner contended that while the distribution of petroleum products takes place on a non-preferential basis, the same principle is not maintained in the instance of distribution of motor gasoline.

PSO maintains two separate queues at its depots; one being exclusively for NLC and the other being for everyone else, notwithstanding the admission of oil company's counsel that the volume of motor gasoline transported through NLC is a mere four percent of the total volume distributed by PSO. Bench observed that there is admitted partisan treatment meted out to the NLC by PSO, in one sphere of its commercial operations, and the counsel for the said respondents have been unable to justify the same.

Court stated that counsel have also failed to satisfy us as to how maintaining a dedicated queue solely for the benefit of NLC could qualify under the precepts of reasonable classification and/or be in the public interest and/or survive the test of arbitrariness, illegality, irrationality and/or impropriety set forth by the court.

Therefore, such conduct does not merit the approval of the court, the bench ruled.

Court didn't agreed with the arguments of the counsel of PSO that preferential treatment to one party is given on the presumed propensity of others to protest/go on strike and/or create law and order situations and stated that it is imperative to note that PSO does not indulge in partisanship while distributing diesel, furnace oil, jet fuel, kerosene, CNG, LPG, petrochemicals and/or lubricants.

The preferential treatment under reference is only observed in the instance of transporting motor gasoline. In a manner of speaking, apparently inequitable treatment is meted out to the entire private sector not for anything that they have done but on the basis of what the PSO assumes the private sector could do, bench observed.

If this argument is sustained then the private sector may effectively be excluded from participating in commercial operations of state enterprises entirely, it ruled.

Court observed that constitution confers upon its citizens the fundamental right to form associations or unions and assemble peacefully and maintained that while the constitution does not specifically stipulate a right to protest, however, democracy recognises such a right, and it was through democratic means that Pakistan was conceived.

Court ruled that the right to protest is not unfettered and that it remains subject to all just restrictions, especially that such class action must be devoid of any resort to violence and/or any infraction of the law. Any attempt or perpetration of violence and/or precipitation of a law and order situation is disapproved by the law and strict sanctions are envisaged for the perpetrators.

Court declared that PSO or any entity for that matter, remains at liberty to solicit prosecution in respect of any violence or other criminal conduct directed there against to the fullest extent of the law, however, a mere apprehension of such conduct, unjustifiably attributed to individuals, cannot be sustained as justification for marginalisation of the said persons in the arena of commercial enterprise.