Find a Lawyer

Constitutional Petition No.D-82 of 1985, decided on 27th May, 1985.

Price Control and Prevention of Profiteering and Hoarding Act (XXIX of 1977)--

--S.3--Notifications dated 5-8-1974 and 18-3-1980--Nationalisation of industries--Acquisition of Commodities--- Contention that Federal Government was not empowered to acquire commodities from persons using cotton seed in their own plant had no fore--Ghee industry nationalised by Government--Nationalisation not challenged at any stage--Restriction imposed by Government on utilisation of cotton seed in private plant, held, reasonable--Authority of Government to have control over essential commodity discussed.

---S.3--Notifications dated 5-8-1974 and 18-3-1980--Constitution of Pakistan (1973), Art. 199--Laches--First notification to control procurement and distribution of cotton seed oil issued by Government in 1974--Petitioner did not challenge said notification up to 1955 Second notification issued in 1980 and petitioner challenged both notifications in 1985--No explanation submitted by petitioner for delay--Petition dismissed on point of laches.

Qadir Hussain Sayed for Petitioner.

Wajihuddin and A. A. Ashry for Respondents.

The petitioner Company is engaged in the manufacturing of cooking oil marketing it under the Brand name 'Bella Cooking Oil' and extracting of cotton seed oil for which purpose the petitioner set up a solvent Extracting Plant with Cooking Oil Refinery at Nawabshah Sind in. 1969. On 2-9-1973 the Government of Pakistan nationalised the Ghee industry and in order to feed the said industry the Government resorted to measures of acquiring the cotton seed oil. Vide Notification dated '5-8-1974 the respondent No.3 controlled the entire procurement and distribution of the cotton seed oil. Through another notification dated 18-3-1980 (Annexure 'C') the Government directed that no producer of cotton seed oil shall consume himself or sell or in any way dispose of any quantity of the said oil to any person other than Hyderogenated Vegetable Oil Factory designated for the purpose by the Ghee Corporation of Pakistan and their nominee.

2. The petitioner has challenged these two notifications in this constitutional petition. The notification dated 18-3-1980 is the steno type copy of the notification dated 5-8-1974 (Annexure 'A') Its the petition the petitioner has mainly relied on the fact that constitutional petition has been admitted against these notifications in the Lahore High Court and, therefore, the company has filed the present petition.

3: We have heard the learned counsel for the parties: According t the learned counsel .for the petitioner the Federal Government was not empowered to acquire -the commodities from the persons who are using the cotton seed in their own solvent Extraction plant. This contention has no force. The Ghee industry has beer nationallised on 2-9-1973 and nationalisation has not been challenged at any stage. Even otherwise it was within the power of the Government of Pakistan to nationalise the industry. The restriction imposed by the Government is reasonable and unreasonableness cannot be found in the statute.

4. Learned counsel for the respondent has stated that the cotton seed oil is to be used only for the purpose of Hydrogenated Vegetable Ghee bulk of which is imported and the Government has to provide subsidiary. It was with this intention the impugned notifications have been made to procure all the cotton seed available in the market and reduce the import gap. The cotton seed has been declared .essential commodity and distribution quota has been fixed according to requirements. Cotton seed oil is not permissible to be manufactured from the Cotton seed under the Government policy and for that soya-bean is provided. The petitioner wanted to extract cotton seed oil into cooking oil. It is further stated that some people are extracting and selling it in the market for other purposes. The first notification was issued in the year 1974 but the petitioner did not challenge .that notification upto 1985. The second notification was also issued in 1980 and these two notifications have now been challenged in 1985. No explanation has been submitted by the petitioner for this delay. Therefore, the petition is to be dismissed on the point of laches. As discussed earlier even on merits the petitioner has no case. Learned counsel has relied on the case admitted in the Lahore High Court but ultimately these petitions have been dismissed.

Under section 3 of the Price Control and Prevention of Profiteering and Hoarding Act, 1977 (Act NO.XXIX of 1977) the Federal Government has the 'authority for securing equitable distribution of an essential commodity and its availability at fair prices for regulating the prices, production, movement, transport, supply, distribution, disposal and sale of the essential commodity. Cotton seed is one of the items mentioned in the schedule as the essential commodity.

Learned counsel for the petitioner has stated that the Federal Government had not delegated the power to the Joint Controller General, Prices and Supplies to issue notification impugned in this petition. Learned counsel for the respondent has produced a notification dated 6-6-1977 by which the Federal Government empowered the Joint Controller with the powers conferred to him by section 3 of the said Act (Act XXIX of 1977). Learned counsel for the respondent has stated that the petitioner is not registered with the Ghee Corporation of Pakistan as required by the Notification dated 26-11-1983.

For all the aforesaid reasons, we see no force in this petition. The same is consequently dismissed.

H.B.T.

Find a Lawyer Near You

Dealing with a matter like this? Connect with a verified advocate in your city — free on SJP Lawyers Directory.