ISLAMABAD:The Supreme Court on Thursday referred the Sugar price case back to the Lahore High Court (LHC) with directions to decide the matter within 15 days.
A three-member SC bench headed by Justice Umar Ata Bandial heard the case filed by the federal government against the high court’s August 3 verdict regarding sugar price.
The government had in its appeal pleaded to the apex court to set aside the high court’s verdict. The appeal said that the government fixed sugar price under the Price Control and Prevention of profiteering and Hoarding Act, 1977 and that the LHC did not have the authority to fix price of the commodity.
During the course of proceedings, the court granted conditional permission to the mills to sell sugar at fixed ex-mill rate. The court also ordered that the sugar mills should voluntarily deposit the difference amount between the government’s fixed price and rate of the sugar mills in the high court till settlement of the issue.
Earlier additional attorney general informed the court that the government has fixed ex-mill rate of sugar at Rs 84 per KG, while the mills price was Rs 97.
“Sugar mills depositing only surety bonds is not sufficient,” the court said.
The court also directed the cane commissioner to compile the record of sugar stock and sale.
The court also ruled that the high court issued an exparte stay order against the government’s fixed price of the commodity.
The bench remarked that it was not the responsibility of the court to fix price or determine profit and loss as it only to decide the legal point of the matter. The high court’s intervention was entering in unconcerned jurisdiction, it added.
The Additional Attorney General said that the government was the protector of the rights of the people.
Justice Bandial asked did the government had full authority to set the price of sugar? The price of sugar was determined by a formula, he added.
He said that Sugar Mills was of the view that the government imported sugar at Rs 104 and imported sugar would be sold at Rs 89 with subsidy.
He said that the case would be remanded after revoking the interim order of the Lahore High Court.
The counsel for Sugar Mills owners said that if the interim order was terminated, it would be a loss to mills owners as entire stock would be lifted from mills.
The Additional Attorney General said that the mill owners would sell expensive sugar if the interim order was not voided.
Justice Sajjad Ali Shah asked would the state compensate the loss of mills due to cancellation of stay order?
Justice Bandial said that it would be appropriate to keep the difference in prices to a trustee. The amount would remain with the trustee until the case was decided, he added.
The counsel for mill owners said that his clients were ready to submit the amount based on the difference in prices to the Deputy Registrar Lahore High Court.