LHC reserves verdict on millers’ plea against sugar price fixation

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The Lahore High Court (LHC) Tuesday reserved verdict over the sugar millers plea, challenging the Punjab government’s notification about fixing sugar price as well as seeking a stay order against the provincial authorities to lift the commodity from their premises under recently fixed price.

Appearing before a single-member bench of the LHC comprising Justice Shams Mehmood Mirza, counsel for the petitioners alleged that sugar millers of the Punjab were not given opportunity to hear their point of view before fixation of the commodity price.

Sugar millers of the Punjab claimed before the court that in result of the provincial government punitive action in the matter against them will have grave impact on supply of sugar in the market. Counsel for the petitioners alleged saying the government intended to confiscate his clients’ mills stock saying such action will affect supplies, adding that he apprised the court that sugar millers required appointment of an auditor in the matter.

It is pertinent to mention that earlier on July 19, the Pakistan Sugar Mills Association (PSMA), through a letter to all deputy commissioners of Punjab, warned that the sugar price fixation matter was sub judice in the LHC. Thus the deputy commissioners should not take any illegal action or violate the court order.

Before the holy month of Ramazan, a bench of the LHC comprising Justice ShahidJameel had ordered that an agreed rate of sugar should be fixed after all mill owners weigh in, the millers counsel apprised the court on Tuesday. He submitted that LHC had restrained the Punjab government from implementing a notification about fixing the ex-mill and retail price of sugar.

The counsel further apprised the bench that the court’s order was being violated, which had ruled fixation of the price with agreement after hearing the stance of the owners. He reiterated that his clients’ point of view was not given heed despite the court orders.

However, the government attorney apprised the bench that all the millers have been served notice over the matter.

Pertinently mention that before Ramdan, the LHC judge had inquired from officials of the provincial ministry of industries who were present in the court whether they took stakeholders on board over the price. However, the official submitted that no sugar mill has responded to the ministry calls. Upon which the bench had observed, “They have affirmed to come for a meeting. Sit with them and fix the price,” the court said. “Under the Article 18 sugar mill owners have the right to bring the matter to the court,” the bench further observed. “You have to grant a subsidy if you will fix the price below the cost,” the bench said.”

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