GHAZI FABRICS INTERNATIONAL LTD. vs FEDERATION OF PAKISTAN art — 2023 CLC 324 LAHORE-HIGH-COURT-LAHORE

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GHAZI FABRICS INTERNATIONAL LTD. VS FEDERATION OF PAKISTAN art.199---Constitutional petition---Public law---Natural gas sale price---Determination---Zero rated sector---Petitioners were aggrieved of additional security imposed by Sui Northern Gas Pipelines Limited (SNGPL) as Oil and Gas Regulatory authority revised sale prices and tariff for zero rated industry operated on indigenous gas---Validity---Issue did not merely pit one consumer against SNGPL but an entire industry was in tension with SNGPL---acts set in motion by SNGPL had a spiral effect not only on the petitioners but also on economy in general as petitioners were export oriented industries and were a major source of earning of foreign exchange---any impact on petitioners would affect public purse and trickle down to the general public---There was a public law element inviting High Court to a searching inquiry and High Court could not sit in a state of judicial inertia---SNGPL exercised sovereign function of State---There was a monopoly so far as half of the country was concerned---SNGPL was a State owned public utility company and its actions were justiceable by High Court---Judicial review could be applied in certain circumstances to exercise of public contractual power---Public law principles were to be applied to executive agencies such as SNGPL as it was not formally separate from its sponsoring department and also because it was engaged in public service delivery---Test that was to be applied by courts was that the process might have a sufficient public law element irrespective of any connection with a statute or policy---Regarding contractual powers, preponderant approach was to regard contracts made by public authorities as subject to judicial review if there was a sufficiently "public law element" to the matter---Issue raised by petitioners was not purely contractual but related to rule of law and was to be judged on the basis of principles of administrative law such as irrationality and impropriety---High Court set aside the notices issued by authorities to petitioners---Constitutional petition was allowed, in circumstances.

GHAZI FABRICS INTERNATIONAL LTD. vs FEDERATION OF PAKISTAN art — 2023 CLC 324 LAHORE-HIGH-COURT-LAHORE

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