The Supreme Court issued notices on Wednesday, pertaining to the case of the surging prices of ghee and cooking oil to the parties involved, seeking their written objections.
Attorney General for Pakistan (AGP) Khalid Jawed Khan pointed out that the Competition Commission of Pakistan (CCP) had issued notices to a company for increasing ghee and cooking oil prices.
He told a three-judge bench, headed by Chief Justice of Pakistan Gulzar Ahmed, that the case in hand was very pertinent in terms of the authority of the regulators.
That company, he added, went on to file writ against the commission’s notices.
The attorney general said the powers of the regulators should be clarified in the guidelines by the court.
“Litigation against the decisions of the regulators also stops revenue,” he added.
The attorney general requested the top court to set guidelines on the powers of all regulatory bodies to protect the rights of company owners and consumers.
Granting the attorney general’s request, the court issued notices to the parties and sought written submissions from them.
The court also directed the CCP and the parties concerned to submit their submissions and adjourned the hearing of the case till March.
In November last year, the CCP had announced resumption of the inquiry into the unusual price hike of edible oil and ghee after the SC suspended the decision of the Islamabad High Court to halt the initial inquiry.
A statement issued by the CCP in this regard read that on July 30, 2020, the commission – noting the extraordinary increase in the prices of vegetable oil and ghee – launched an inquiry under Section 37(1) of the Competition Act of 2010 to detect violations of Sections 3 and 4 of the Act.
The rise in cooking oil and ghee prices was unusual because the price of palm oil, a major raw material in the production of these products, declined internationally during January-May 2020.
The CCP team had commenced the inquiry by requesting information and related data from the industry.
In November 2020, the commission issued an order to provide information under Section 36 of the Competition Act after non-cooperation of some companies in providing the requested data.
The Supreme Court suspended the proceedings of the judgment of the IHC dated September 14, 2021, till the final decision of the commission’s appeal. Accordingly, the CCP would resume its inquiry into the ghee and cooking oil prices.
One company, Dalda, obtained a restraining order from the IHC against the provision of information under Section 36 and subsequently the court in its order dated September 14, 2021, ruled in favour of the petitioner. The CCP immediately filed an appeal against the order and the case was set to be heard on November 22, 2021.
The statement further said that the Supreme Court allowed the CCP to appeal in order to consider various important legal issues which had arisen in connection with the erroneous decision.
