ARZOO TEXTILE MILLS LTD. vs FEDERATION OF PAKISTAN S — 2024 CLC 1359 LAHORE-HIGH-COURT-LAHORE

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ARZOO TEXTILE MILLS LTD. VS FEDERATION OF PAKISTAN S.31---Constitution of Pakistan, Art. 199---Constitutional petition---Policy matter---Recalling of subsidy---Alternate remedy, non-availing of---Promissory esstopel---Applicability---Petitioners / companies were industrial consumers of electricity in the category of consumers under B-3 & B-4 class tariff and were aggrieved of withdrawal of subsidy vide notification No. PF.5-(02-ZR) 2020, dated 28-02-2023 by DISCOS on the principle of Promissory estoppel---Validity---No Government could function if its policy is continuously reviewed without giving any permanence but no Government can earn a good reputation amongst its masses if it takes a decision without any economic viability---No government can survive unless it is in a position to give economic benefits to its subjects and it is equally important that no Government is acceptable unless it properly appropriates funds for the promotion of export oriented industry to compete with international commodities---Policy decisions are to be taken on the basis of hard ground realities which cannot be interfered with by High Court---Subsidy was merged into tariff before it was charged to petitioners / companies and the same could be challenged before appropriate forum---Policy decisions of Government were areas where jurisdiction under Art. 199 of the Constitution could not be exercised---Promissory estoppels were not attracted stricto sensu as Government had taken the decision not on its own but based on certain contingencies which were not in its control---Petitioners / companies did not play any fraud and decision taken by Government to offer subsidy was partially acted upon until the time when notification in question was issued---Power to take decision by Government included power to recall, therefore, recalling of subsidy was with prospective effect---Subsidies (time-bound or otherwise) was part of the tariff and could be challenged under the National Electric Power Regulatory Authority Act, 1997, through alternate remedies---Constitutional petition was dismissed, in circumstances.

ARZOO TEXTILE MILLS LTD. vs FEDERATION OF PAKISTAN S — 2024 CLC 1359 LAHORE-HIGH-COURT-LAHORE

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