DALDA FOODS LIMITED vs The COMPETITION COMMISSION OF PAKISTAN Ss — 2022 CLD 10 ISLAMABAD

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DALDA FOODS LIMITED VS The COMPETITION COMMISSION OF PAKISTAN Ss. 30, 33, 36 & 37---Constitution of Pakistan, Art. 199---Constitutional petition---Calling for information relating undertaking--- Refusal to provide information---Sectoral inquiry---Scope---Petitioner undertaking was aggrieved of letters issued by Competition Commission of Pakistan (CCP) asking the petitioner to provide information in the matter of price increase---Plea raised by petitioner was that such requirement of CCP was without any authority---Contention of CCP was that petitioner was not suspected of having breached any provision of Competition Act, 2010, and CCP was conducting a sectoral inquiry and seeking information from all undertakings that formed part of the industry concerned---Validity---Despite broad powers at its disposal, when regulator called for information, it could not compel an undertaking to 'provide answers which might involve an admission' by undertaking to 'the existence of an infringement which the regulator must prove'---Competition Commission of Pakistan did not determine whether it was in possession of facts that prima facie established a plausible case for breach of Competition Act, 2010---Reasoned order was not passed by CCP stating that requirements of S. 37(2) of Competition Act, 2010 stood satisfied, while identified suspected infraction of provisions of Competition Act, 2010 and factual basis of such findings in relation to which information had been sought from petitioner---No special allowance was made under S. 37 of Competition Act, 2010, for a sectoral inquiry nor had prescribed a test for such purpose different from one prescribed in relation to individual undertakings--- Inquiry in question was ordered by CCP for a collateral purpose without satisfying requirements of S. 37 and inquiry ordered was passed in breach of provisions of Competition Act, 2010, and was therefore void---Subsequent orders seeking information from petitioner for the purposes of inquiry and S. 36 of Competition Act, 2010 and order reiterating demand for information was contingent upon and rooted in a void order were not backed by any lawful authority---High Court set aside letter issued by CCP seeking information, letter informing petitioner that inquiry had been ordered by CCP under S. 37 of Competition Act, 2010, and special order passed under S. 36 of Competition Act, 2010, were all set aside--- Constitutional petition was allowed, in circumstances.

DALDA FOODS LIMITED vs The COMPETITION COMMISSION OF PAKISTAN Ss — 2022 CLD 10 ISLAMABAD

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