The Competition Appellate Tribunal (CAT) on Friday remanded the case involving the Pakistan Sugar Mills Association (PSMA) and its member mills back to the Competition Commission of Pakistan (CCP) for a fresh hearing.
According to the CCP, this development came in response to appeals filed by PSMA and its affiliated sugar mills. In its ruling, the tribunal directed that the matter be reheard by either the Chairperson or another CCP member who was not involved in the previously divided opinions.
The tribunal further instructed that a final decision should preferably be issued within 90 days. Following the rehearing, the decision of the Chairperson or designated member will determine whether the PSMA and its members violated competition laws.
In 2021, the CCP had imposed a record penalty of nearly Rs44 billion (approximately over US$265 million) on 55 sugar mills and the PSMA for allegedly engaging in cartelization, anti-competitive conduct, and collectively deciding export volumes, among other violations.
The original decision was issued by a four-member CCP bench, which ended in a deadlock. Chairperson Rahat Kaunain Hassan and member Mujatba Lodhi supported the penalties, while Bushra Naz Malik and Shaista Bano dissented.
To resolve the tie, the then Chairperson invoked a casting vote—permitted under Subsection 5 of Section 24 of the Competition Act, 2010—via a note dated August 13, 2021. This action tipped the decision in favor of upholding the penalties.
However, the legality of this casting vote became the focal point of the appeals. In its latest decision, the CAT ruled that the Chairperson does not have the authority to exercise a casting vote in quasi-judicial proceedings under the Competition Act, 2010. As a result, the Chairperson’s vote—and the resulting decision—has been set aside.
