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Constitutional Petitions against Show-Cause Notices are Premature unless the Notices are issued without Jurisdiction, Lawful Authority, or are tainted with Mala Fide Intent --- Lahore High Court, Lahore

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Islamabad 19-11-2024: The Lahore High Court’s Rawalpindi Bench, in a judgment delivered by Mr. Justice Jawad Hassan, has dismissed writ petitions challenging the issuance of show-cause notices by the Competition Commission of Pakistan (CCP). The petitions, filed by M/s Sadiq Poultry (Private) Limited and M/s Islamabad Feeds (Private) Limited, contested the legality and procedural compliance of the notices issued under Section 30 of the Competition Act.

The Court ruled that constitutional petitions against show-cause notices are premature unless the notices are issued without jurisdiction, lawful authority, or are tainted with mala fide intent. It emphasized that such notices do not constitute adverse orders but are procedural tools ensuring due process.

The Court applied the doctrine of ripeness, holding that judicial intervention is unwarranted at the preliminary stage of regulatory proceedings. It stated that the petitioners’ grievances were hypothetical and lacked the necessary maturity for adjudication.

Mr. Justice Jawad Hassan underscored the importance of exhausting statutory remedies under Sections 41-44 of the Competition Act before invoking the Court’s extraordinary jurisdiction under Article 199 of the Constitution. The Court noted that bypassing these remedies undermines the regulatory framework.

The judgment reaffirmed the CCP’s mandate to ensure free competition and protect consumers from anti-competitive behavior. It lauded the Commission’s adherence to procedural fairness, including the opportunity for hearings, as enshrined in the Competition Act.

The Court relied on landmark decisions, including Dalda Foods Ltd. Vs. CCP (2023 SCMR 1991) and Commissioner Inland Revenue Vs. Millat Tractors (2024 SCMR 700), to highlight the procedural nature of show-cause notices and the CCP’s authority to conduct independent inquiries.

The petitions were dismissed, with the Court directing the petitioners to respond to the CCP’s show-cause notices. It clarified that the notices were preliminary steps aimed at providing the petitioners an opportunity to present their stance. Mr. Justice Jawad Hassan emphasized that judicial interference at this stage would hinder the regulatory process.