Islamabad, March 19, 2025 – The Ministry of Commerce (MoC) has suspended the Directorate General of Trade Organizations’ (DGTO) order regarding the Karachi Chamber of Commerce and Industry (KCCI) elections until the next hearing scheduled for April 10, 2025.
The decision follows an appeal filed by Jawed Bilwani challenging the DGTO’s March 3, 2025, order, with Muhammad Arshad Jamal appearing as the respondent in the case.
READ MORE: KCCI Elections Annulled by DGTO, Fresh Polls Ordered
Legal Debate Over Regulator’s Role in Appeals
At the outset of the hearing, the Secretary of Commerce raised a fundamental legal question about whether the regulator—having passed the original order—should be a respondent in the appeal process. The three counsels present at the hearing unanimously opined that the regulator does not need to attend such hearings and could, at most, be a proforma party.
The Secretary also noted that three separate appeals were filed with the Ministry of Commerce concerning the KCCI elections for the 2024–26 term. He asked the counsels whether they preferred to first address two pre-election appeals against DGTO’s Orders No. 17 and 34 of 2024 or proceed with the current post-election appeal against Order No. 03 of 2025. The counsels requested that the post-election appeal be decided first.
Arguments on Maintainability of Appeal
The formal proceedings began with the counsels presenting arguments on the maintainability of the appeal. The counsel representing KCCI argued that appeals against DGTO’s orders fall under Section 21(2) of the Trade Organizations Act (TOA), 2013, which allows any person or trade organization aggrieved by a decision of the regulator to file an appeal before the appellate forum. He contended that the provisions of TOA, 2013, are statutory, and the Trade Organizations Rules (TOR), 2013, are subservient to them. Thus, the appeal was deemed maintainable before the Secretary of Commerce.
On the other hand, the counsel for Respondent No. 2 contended that Rule 18(7) applies strictly to pre-election complaints and that decisions made under this rule are final. He argued that although the current case was a post-election appeal, the issues originated before the elections, making the DGTO’s March 3 decision final and non-appealable before the Secretary of Commerce. Additionally, the counsel for Respondent No. 1 maintained that KCCI had violated Rule 18(7) by failing to comply with previous orders, rendering the elections illegal.
KCCI’s Request for Interim Suspension of the Order
KCCI’s legal counsel urged the Secretary of Commerce to suspend the impugned order while the appeal was under review. In support of this request, he presented the following arguments:
• The respondents, despite lodging pre-election complaints, participated in the elections, thereby waiving their right to challenge the voter lists after the fact.
• A previous pre-election complaint had resulted in DGTO’s Order No. 54/2024, which was never challenged before the appellate forum, weakening the respondents’ case.
• The impugned order did not consider the election results, where the defeated party secured only 18% of the votes.
• DGTO’s Order No. 17 of 2024 never required bifurcation of voter lists but only directed KCCI to share them for security reasons. Substantive compliance had been achieved.
• Under Section 16 of TOA, 2013, there was no mismanagement within KCCI to justify appointing an administrator, making the order legally flawed.
Findings and Decision
After hearing arguments from both sides, the Secretary of Commerce ruled that:
1. The appellate authority of the Ministry of Commerce is not limited to reviewing orders of an administrator; it can also hear appeals from aggrieved trade organizations under Section 21(2) of TOA, 2013.
2. The regulator does not have the authority to determine the jurisdiction of the appellate forum or the maintainability of an appeal.
3. The recommendation to appoint an administrator for KCCI was procedurally flawed and did not meet the statutory conditions under Section 16 of TOA, 2013.
4. The appointment of an administrator is a prerogative of the Ministry of Commerce, and such a decision should not be based solely on the regulator’s recommendation.
5. Nullifying the elections without appointing an administrator or an executive committee would leave KCCI non-functional.
6. Further hearings and deliberations are required before reaching a final decision on the matter.
In light of these findings, the Ministry of Commerce ruled as follows:
• The Secretary of Commerce has jurisdiction over the appeal filed against DGTO’s Order No. 03/2025.
• The impugned order dated March 3, 2025, is suspended until the next hearing.
• All parties are directed to appear before the Secretary of Commerce on April 10, 2025, for further proceedings.
This decision marks a critical moment for KCCI, as the suspension of DGTO’s order allows its elected body to continue functioning until a final resolution is reached. The upcoming hearing on April 10 will be pivotal in determining the fate of KCCI’s electoral process and governance.