ISLAMABAD: The Competition Appellate Tribunal (CAT) has remanded the high-profile Rs44 billion penalty case involving the Pakistan Sugar Mills Association (PSMA) and its member sugar mills back to the Competition Commission of Pakistan (CCP) for a fresh hearing. The Tribunal issued its short order in response to appeals filed by the PSMA and affiliated mills, challenging the CCP’s 2021 decision.
The Tribunal, in its directive, instructed that the matter be reheard by either the current Chairperson of the CCP or another member who was not part of the previously divided bench. The rehearing must conclude with a final decision within 90 days, as per the Tribunal’s instructions outlined in a press release on Friday.
The original ruling by the CCP in 2021 came from a four-member bench that reached a deadlock. Two members, including then Chairperson Ms Rahat Kaunain Hassan and Member Mujatba Lodhi, favored the imposition of the penalty. Meanwhile, Members Bushra Naz Malik and Shaista Bano dissented. To resolve the tie, the Chairperson exercised a casting vote under Subsection 5 of Section 24 of the Competition Act, 2010, converting the tie into a majority ruling.
However, the legality of using a casting vote in quasi-judicial proceedings became the primary point of contention in the appeals. The Tribunal has now concluded that the Chairperson was not legally empowered to cast such a vote in judicial matters under the Competition Act. Consequently, the prior decision based on this casting vote has been nullified.
The Tribunal’s order for a fresh hearing is seen as a pivotal moment for the enforcement of competition law in Pakistan. The new decision, following a complete re-evaluation, will ultimately determine whether the PSMA and its member mills engaged in anti-competitive practices.
With the recent appointment of a new Chairman, the Competition Appellate Tribunal has become fully functional and is now actively reviewing numerous long-standing appeals, signaling a renewed focus on market competition and regulatory enforcement in Pakistan.