ISLAMABAD: In a significant legal twist, the Competition Appellate Tribunal (CAT) has set aside a major Rs 44 billion penalty imposed on the Pakistan Sugar Mills Association (PSMA) and its member mills, ordering the Competition Commission of Pakistan (CCP) to conduct a fresh hearing in the case.
The Tribunal’s decision follows appeals filed by the PSMA and several sugar mills challenging the CCP’s 2021 order, which had found them guilty of violating competition laws. That order had originally been issued by a four-member bench split evenly in its opinions. Two members, including then-Chairperson Rahat Kaunain Hassan, backed the penalty, while the other two dissented. To break the deadlock, the Chairperson used a casting vote—an action that has now been ruled invalid by the Tribunal.
According to the Tribunal, the Chairperson did not have the authority to exercise a casting vote in quasi-judicial proceedings under the Competition Act, 2010. As a result, her vote has been nullified and the matter has been returned to the CCP for rehearing.
The case will now be re-evaluated by either the current Chairperson or another member of the Commission who was not involved in the previous decision. The Tribunal has urged that a final determination be made preferably within 90 days.
This development is likely to have far-reaching consequences for regulatory governance and corporate accountability in Pakistan, especially within the powerful sugar sector. It also comes as the CAT regains full functionality following the recent appointment of a new Chairman by the federal government, allowing it to resume hearings on a backlog of long-pending appeals.
