Ruling on an appeal, the Competition Appellate Tribunal (CAT) has remanded a case pertaining to alleged violations of competition law by the Pakistan Sugar Mills Association (PSMA) and its member mills to Competition Commission of Pakistan (CCP) for a fresh hearing.
In its short order, the Tribunal ordered a rehearing of the case by either the CCP’s chairperson or any other member who was not a signatory to either of the earlier conflicting opinions. It has directed a final decision be issued within 90 days.
The appeals pertained to a CCP order issued in 2021 by a four-member bench. Two members, including Chairperson Rahat Kaunain Hassan and Member Mujatba Lodhi, supported the imposition of the penalty, while the remaining two Members—Bushra Naz Malik and Shaista Bano—issued a dissenting opinion. To break the deadlock, the chairperson exercised a casting vote under Section 24(5) of the Competition Act, 2010, through a note dated Aug. 13, 2021—effectively converting the stalemate into a majority ruling upholding the penalty.
The legality of this casting vote was the central issue of the appeals. The Tribunal’s ruling states the Chairperson lacks authority to exercise a casting vote in quasi-judicial proceedings under the Competition Act, 2010. It has set aside the chairperson’s opinion based on the casting vote.
The ruling states that a fresh hearing will settle the matter and determine any potential violations of competition law by the PSMA and its member sugar mills.