SUI NORTHERN GAS PIPELINES LTD. vs FEDERATION OF PAKISTAN through Secretary, Ministry of Energy (Petroleum Div

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SUI NORTHERN GAS PIPELINES LTD. VS FEDERATION OF PAKISTAN through Secretary, Ministry of Energy (Petroleum Division) art.199---administrative arbitrariness---Legitimate expectancy, principle of---Past practice---Deviation without notice---Petitioner was natural gas supply company and aggrieved of decision of Oil and Gas Regulatory authority (OGRa) determining Re-Gasified Liquefied Natural Gas (RLNG) Weighted average Sale Provisional Price---Validity---High Court judicially reviewed OGRa decision to prevent administrative arbitrariness---Purpose was to protect petitioner company against injustice on account of unnecessary and uncontrolled discretionary power---Basic notions of fairness in administrative law such as need for consistent explanations, for explanations of changes in policy for an agency to follow its own rules for prospectively when changing policies etc.---Regular past practice of OGRa was to adopt certain benchmark for determination of provisional price---Such was a practice directed at petitioner company personally and remained operative until changed by OGRa suddenly and without notification of its intent to do so---Such act provided basis for legitimate expectation to petitioner company that settled practice was to be implemented and not departed from---Past practice of OGRa to decide the matter of provisional price in a particular manner was an expectation which qualified as legitimate---Such was clear, unambiguous and made by a person with actual authority---If such past practice had to be abandoned or changed, it could only be done after prior notice and hearing--- Policy was adopted by adjudication and any change in second adjudication could not be arbitrary nor could be retroactive---Re-visiting of past practice was to conform to rules of fairness and legitimate expectation---Sudden volte face by OGRa impacted petitioner company enormously financially and had a spiral effect on the consumers generally---High Court set aside the decision of OGRa as the same was null and without lawful authority---High Court directed OGRa to determine UFG for consumers on RLNG distribution network at actual average UFG of last financial year and policy guidelines issued by Federal Government for the period in dispute---Constitutional petition was dismissed, in circumstances.

SUI NORTHERN GAS PIPELINES LTD. vs FEDERATION OF PAKISTAN through Secretary, Ministry of Energy (Petroleum Division) art — 2022 MLD 1158 LAHORE-HIGH-COURT-LAHORE

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