The Lahore High Court has conditionally stopped the punitive action against the sugar mills of the estranged leader of the PTI, Jehangir Khan Tareen.
The sugar mills of Jehangir Tareen challenged the government act of fixing ex-mill rate of sugar on Tuesday.
The court sent notices to the federal and Punjab governments and other parties asking them to submit their reply.
The high court also conditionally halted the punitive action against the sugar mills belonging to Mr Tareen.
LHC Justice Risal Hassan Syed was hearing a petition filed by the JK Sugar Mills and JDW Sugar Mills.
The petition was filed by the shareholders of the sugar mills, Ali Khan Tareen and Maqsood Ahmad Malhi.
Deputy Attorney General Asad Ali Bajwa appeared before the court representing the federal government.
The federal government opposed the petition. The attorney general told the court that the government fixed the sugar ex-mill rate after listening to the stance of 32 sugar mills owners.
He held that the government fixed the ex-mill price of the commodity after fulfilling all the legal requirements.
Bajwa argued that the court order which the petitioners presented to stop the punitive action against the mills had already been challenged in the Supreme Court.
He further said that the petition filed by the sugar mills had not made the Federation of Pakistan and others party to it. He said the petitioners did not deserve the right to get relief from the court.
Salman Akram Raja Advocate appeared before the court to present the case of the petitioners.
In the petition, the federal government, Punjab government, cane commissioner and secretary food were made parties to the case.
According to the petition, the secretary industries fixed the ex-mill rate of sugar at Rs84.50 on July 30, 2021. While the retail price of the commodity was fixed at Rs89.50.
The petitioners pleaded that the government act of fixing ex-mill rate was illegal and it was affecting the petitioners.
They held that the high court had ordered to hear the stance of the sugar mills owners before fixing the price of the commodity.
But the government did not consult the petitioners despite the court order and issued the notification of fixing the sugar price at Rs89.50.
It is impossible to sell the commodity at government’s determined price, the petitioners said and pleaded the court to order for the cancellation of sugar price notification.—INP