Lahore High Court Dismisses Petition Challenging NEPRA’s Fixed Charges Due to Non-Exhaustion of Statutory Remedies

Islamabad, 18-11-2024: The Lahore High Court, in a significant judgment, dismissed the petition filed by M/s Five Star Steel Industry (Pvt.) Ltd. and others under Article 199 of the Constitution of Pakistan, challenging the imposition of fixed charges on their electricity bills by the National Electric Power Regulatory Authority (NEPRA). Mr. Justice Shakil Ahmad ruled that the petition was not maintainable due to the availability of an adequate statutory remedy.

The petitioners sought to challenge NEPRA’s decision dated July 11, 2024, which imposed increased fixed charges for September 2024, arguing that the decision was arbitrary, unreasonable, and unlawful. They claimed the charges violated Section 31 of the Regulation of Generation, Transmission, and Distribution of Electric Power Act, 1997.

The petitioners further contended that the NEPRA Appellate Tribunal under Section 12(G) of the Act was non-functional due to a vacant seat, leaving them without an alternative remedy.

The Court held that:

1. Availability of Alternate Remedy: The NEPRA Tribunal was fully functional at the time of filing the petition, as confirmed by the Office of the Court. The petitioners’ claim of non-functionality was dismissed as a suppression of material facts.
2. Non-Maintainability of Constitutional Petition: Mr. Justice Shakil Ahmad emphasized that constitutional jurisdiction under Article 199 should not be invoked when an alternate statutory remedy exists, except in cases of jurisdictional error, lack of authority, or mala fide action none of which were evident here.
3. Statutory Forums for Specialized Disputes: Citing precedents, the Court reiterated that specialized forums like the NEPRA Tribunal are created to ensure expeditious dispute resolution by experts, and bypassing such forums burdens the judiciary unnecessarily.

The judgment referenced key rulings to support its findings:

1. Indus Trading and Contracting Company Vs. Collector of Customs (2016 SCMR 842):
2. Lahore High Courts should not exercise jurisdiction under Article 199 where specialized forums are available.
3. Mian Azam Waheed Vs. Collector of Customs (2023 SCMR 1247):
4. Constitutional remedies cannot replace statutory ones unless extraordinary circumstances exist.

The Court dismissed the petition in limine, observing that the petitioners did not approach the Tribunal despite its availability, disqualifying them from equitable relief under Article 199.

This ruling underscores the importance of exhausting statutory remedies and reaffirms the judiciary’s reluctance to bypass specialized forums in matters involving regulatory disputes.

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