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ISLAMABAD: The Supreme Court Thursday remanded sugar price case to the Lahore High Court (LHC) with the direction to decide the petitions related to the matter within 15 days.

A three-judge bench, headed by Justice Umar Ata Bandial, heard the federation’s appeal against the LHC order dated 03-08-2021. The bench noted that the matter is still pending before the High Court, adding a single bench of the LHC had passed a one-sided interim order against the sugar price fixed by the federal government.

Additional Attorney General Aamir Rehman contended that the government had fixed the sugar price @Rs84.50 per kg ex-mills and Rs89.50 per kg retail.

He said that the LHC had granted stay against the ex-mill price fixed by the government. The AAG submitted it is the government’s prerogative to fix ex-mill price, adding as it is the custodian of the people’s rights.

Justice Bandial inquired whether the government has full control to determine the price, adding the price is determined under a formula. He said it is the stance of the mills owners that the government imported sugar @ Rs104 per kg.

The government after paying subsidy is selling the sugar @Rs89.

Govt moves SC against LHC sugar price verdict

The judge said whether it is right or wrong but the court cannot determine sugar price as the courts do not have the jurisdiction to decide about policy matters.

He said the apex court passes verdict on legal points, and it is not responsible to decide about prices or profit and loss.

The Court said that the high courts’ intervention in price issue is beyond their jurisdiction as such intervention causes shame for the courts.

The AAG requested the bench to set aside the interim order, adding if it is not set aside then the mills owners would sell sugar at high price.

Justice Sajjad Ali Shah said if the LHC order is set aside then the mills owners would face loss.

He asked the AAG whether the government would pay for it.

Justice Bandial said it would be appropriate that the differential amount is deposited with the Trustee and it should remain with it till the final verdict on the matter.

The counsel for the mills said they would deposit the differential amount with the deputy registrar of the LHC.

The Court allowed the sugar mills to sell sugar at ex-mills price and retail price and directed them to deposit the differential amount at the High Court.

The cane commissioners were asked to compile the record of sugar sale.

The federal government on August 10 had filed an appeal in the Supreme Court against the LHC verdict on sugar price.

The LHC in its order dated 03-08-2021 had restrained the government from taking action against the sugar mills owners.

Order to fix price of sugar rattles the industry

The sugar mills’ owners had petitioned before the LHC for suspension of notification dated 16.07.2021, whereby, ex-mill sugar price was fixed at Rs83.24 and retail price at Rs88.24.

The government has prayed before the court to grant leave to appeal against the order of single bench of LHC and set aside it in the interest of justice, saying it is an irreparable loss to the public at large, when the sugar, an essential commodity, is sold on a high rate.

The federation contended that the LHC single bench order dated 03-08-2021 is against the facts and law of the case, and the High Court has erred in law by granting final relief in the garb of interim relief.

Copyright Business Recorder, 2021

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