LHC strikes down Centre’s authority over sugar price

The Lahore High Court (LHC) on Thursday struck down the clauses of the Price Control and Prevention of Profiteering and Hoarding Act, 1977, and the Price Control and Prevention of Profiteering and Hoarding Order, 2021, which pertained to increasing the sugar price by the federal government.

A division bench led by Justice Shahid Karim passed the order on the litigation that included a number of intra-court appeals, arising from a judgment passed by a single Judge as well as the constitutional petitions that raised a common issue of law.

“Both the 1977 Act to the extent mentioned above as well as the 2021 Order are hereby struck down,” the bench ordered. “The 1977 Act to the extent that it extends to the whole of Pakistan is an action extra jus and thus unconstitutional,” it added.

“The 1977 Act is ultra vires the powers of the parliament to the extent that it applies to price control of essential foodstuff commodities and prevention of profiteering and hoarding in relation to the province of Punjab and is held to be without lawful authority and of no legal effect,” it said.

The court said that there was a common thread running through the appeals and petitions: “Does the power to fix price of essential commodities such as sugar in the present case lie in the Federal Government or the respective Provincial Governments under the Constitution”.

The petitioner’s counsel had contended the federal government had no right to fix the prices, adding it was purely a provincial right. They argued that after the 18th Amendment this right had been given to the provinces and the motive behind fixing prices by the federal government was mala fide.

The lawyer representing the federation had argued that the federal government had the right and the prices were increased by adopting the due process.