Ittefaq Sugar Mills in Bahawalpur: SC allows appeal of Punjab govt

24 Nov, 2021

ISLAMABAD: The Supreme Court allowed the Punjab government appeal against the Lahore High Court order to process Ittefaq Sugar Mills application for establishing the sugar mill in Bahawalpur.

A three-judge bench, headed by Justice Umar Ata Bandial, on Tuesday, heard the appeal of the Punjab secretary Industries Commerce, Investment and Skills Development that cited Ittefaq Sugar Mill as respondent.

Ittefaq Sugar Mills was shifted from Pakpattan to Bahawalpur. The private sugar mills challenged the shifting of Ittefaq to south Punjab in the Lahore High Court, which declared the relocation of Ittefaq Mills on 11-09-2017.

The Supreme Court on 13-09-2018 upheld the LHC order.

The Ittefaq Mills relying the para 50 of the LHC order 11-09-2017, which states; “in future if any sugar mill wishes to relocate or shift from one local area to another in the Punjab, it can make an application under Section 3 of the Punjab Industries (Control on Establishment and Enlargement) Ordinance, 1963, if there is no ban on the establishment of the new sugar mill. Any such application will be considered in accordance with the provision of the Ordinance, especially Section 3,” filed writ petition in the Lahore High Court.

The additional advocate general Punjab contended that the Ittefaq Mill taking advantage of any stretchable to their interest from the LHC judgment, absolutely disobeyed and flouted the apex court judgment dated 13-09-2018.

The Supreme Court judgment dated 12-11-2018 had directed the sugar mills operating in Bahawalpur “to remove, within two months (from 12-11-2018) all their installations, equipment/machinery relevant for a sugar mills from present location and install, use the same at the original location of the sugar mills (from where this machinery was dismantled and shifted to the present place)…”

The AAG stated that the respondent is paying no heed to the clear-cut direction of the apex court order 13-09-2018 by not removing the installations/ equipment/ machinery from District Bahawalpur to its original location, i.e., District Pakpattan.

“Therefore, the respondent cannot be allowed to approbate and reprobate. i.e.. to blow hot and cold in the same breath,” he added.

The AAG contended that the LHC judgment held that in future, if any sugar mill wishes to relocate or shift from one local area to another in Punjab, it can make an application under Section 3, if there is no ban on the establishment of a new sugar mill.

There is complete ban on establishment of new sugar mills as notified by the notification dated 06-12-2006, which was challenged and ultimately declared valid by the Supreme Court. Since there is complete ban on establishment of sugar mill; therefore, any application to this effect cannot be entertained till lifting of the ban by the Punjab government.

The Ittefaq Sugar Mills filed writ petition before the LHC and prayed that the Punjab government be directed to grant necessary permission to it. The LHC allowed the writ petition of Ittefaq Mill on 29-06-2021.

The AAG contended that the LHC has not appreciated the fact that the ban notification dated 06-12-2006 still holds the field and it was upheld by the apex court in “Tariq Khan Mazari” case.

Copyright Business Recorder, 2021

Read Comments