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The Deputy Commissioner lacked the Authority to Seal Premises or impose Penalties without Written Authorization from the Oil and Gas Regulatory Authority (OGRA) under the Rules of 2016 --- Lahore High Court, Lahore

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Islamabad 27-12-2024: In a landmark judgment, the Lahore High Court, Bahawalpur Bench, quashed two orders issued by the Deputy Commissioner, Bahawalpur, sealing a petrol pump and imposing a Rs. 1 million penalty. The Court ruled that the Deputy Commissioner acted without lawful authority, violating constitutional and legal provisions.

The case, titled M/s Khan Petroleum Services Vs. Government of Punjab and others, involved the petitioner challenging two impugned orders dated October 29, 2024, and November 13, 2024, issued under Rule 44 of the Pakistan Petroleum (Refining, Blending, and Marketing) Rules, 1971. The Court held that the said rules had been overridden by the updated Pakistan Oil (Refining, Blending, Transportation, Storage and Marketing) Rules, 2016, promulgated under the Oil and Gas Regulatory Authority Ordinance, 2002.

The Court emphasized that the Deputy Commissioner lacked the authority to seal premises or impose penalties without written authorization from the Oil and Gas Regulatory Authority (OGRA) under the Rules of 2016. The actions under the outdated Rules of 1971 were deemed ultra vires and void.

The judgment highlighted the petitioner’s right to trade and business under Article 18 of the Constitution and ruled that arbitrary actions by public authorities infringed upon fundamental rights.

The imposition of fines and imprisonment was conducted without adherence to the procedural safeguards prescribed in Chapter XXII of the Code of Criminal Procedure, 1898, rendering the actions unlawful.

The Court ruled that the Rules of 2016, formulated under the Ordinance of 2002, supersede the Rules of 1971, making any inconsistent actions under the older rules invalid.

Mr. Justice Muhammad Tariq Nadeem set aside the impugned orders, declaring them null and void. The Court held that the Deputy Commissioner’s actions were beyond his legal powers and violated the provisions of the Ordinance of 2002 and the Rules of 2016. The petitioner’s Writ Petition was deemed fully maintainable under Article 199 of the Constitution.