| Case Details | |
|---|---|
| Case ID | 3770e3f3-c3c6-4834-a081-f5fbcb73554c |
| Body | View case body. Login to View |
| Case Number | W.P. No.23960 of 2023 |
| Decision Date | Jul 12, 2023 |
| Hearing Date | Jun 21, 2023 |
| Decision | The Lahore High Court dismissed the writ petitions filed by Arzoo Textile Mills Ltd. challenging the Federal Government's notification that withdrew the subsidy on industrial electricity tariffs. The Court held that the policy decisions of the Government cannot be challenged under Article 199 of the Constitution, and the Government has the authority to revoke subsidies based on economic realities. The Court found that the petitioners' claims of promissory estoppel were not applicable as the subsidy was not granted through statutory powers but was a policy decision. The petitioners were informed that the Government could withdraw such benefits at any time, and thus, the case was dismissed with no merit. |
| Summary | In the case of Arzoo Textile Mills Ltd. vs. Federation of Pakistan, the Lahore High Court dealt with the withdrawal of a subsidy on industrial electricity tariffs that was initially set at Rs. 19.99 per KWh. The petitioners argued that the withdrawal of the subsidy through a notification issued by the Federal Government was unconstitutional and violated their rights under various articles of the Constitution of Pakistan, including Article 4, 10-A, 18, 24, and 25. They contended that the Government's actions disregarded prior assurances made to them, which had influenced their business decisions and export contracts. The Government, represented by the Additional Attorney General, countered that the subsidy was a policy decision based on economic feasibility and could be revoked at any time. The Court ultimately ruled that the Government's policy decisions are not subject to judicial review under Article 199, leading to the dismissal of the petitions. This case highlights the complexities of government subsidies and the legal challenges that can arise when such financial supports are withdrawn, particularly in the context of international trade and economic commitments. |
| Court | Lahore High Court |
| Entities Involved | FESCO, Federation of Pakistan, FBR, MEPCO, Arzoo Textile Mills Ltd., LESCO, NTDC, GEPCO |
| Judges | ALI BAQAR NAJAFI |
| Lawyers | Mr. Salman Akram Raja, Mr. Arslan Riaz, Rai Amer Ijaz Kharal, Mr. Rabeel Safdar Tatla, Mr. Muhammad Omar Malik, Mr. Arslan Fazil, Mr. Mustafa Kamal, Malik Bashir Ahmad Khalid, Mr. M.A. Rizwan Kamboh, Mr. Qamar-uz-Zaman Cheema, Mr. Khalil-ur-Rehman, Mr. Hashim Aslam Butt, Mr. Naveed Khalid, Ms. Samia Aslam, Mr. Saima Safdar Chaudhary, Ms. Uzma Firdous, Malik Farrukh Khurshid, Malik Ahsan Mehmood, Hafiz Muhammad Shehzad, Ch. Iqbal Ahmad Khan Dehangal, Mr. Nauman Aziz, Mr. Abdul Rehman Qadar Khan, Barrister Hassan Qadar Khan, Rana Sohail Ashraf, Malik Imran Khan Thaheem, Mr. Muhammad Ihtisham Arshad, Mian Mehmood Rashid, Mr. Irfan Ghaus Ghumman, Mr. Irfan Dogar, Mr. Hassan Raza, Mr. S.M. Ghaffar Khan, Mr. Iftikhar Gull Khan, Mr. Muhammad Amir Masood Niazi, Barrister Muhammad Hassan Anwaar Pannun, Rana Muhammad Imran Qamar, Mr. Muhammad Tariq Bashir, Mr. Muhammad Abu Bakar, Mr. Abdul Hameed Tahir Kasuri, Mr. Ali Akbar Rana, Mr. Tanveer Ahmad Gill, Mr. Abdul Waheed Habib, Mr. Muhammad Nauman Khurshid Mayo, Mr. Waseem Ahmad, Ch. Babar Waheed, Syed Tassadaq Mustafa Naqvi, Syed Tassadaq Murtaza Naqvi, Mr. Ali Naqi Zaidi, Mr. Muhammad Anwar Khan, Mr. Muhammad Usman Latif, Mr. Muhammad Arfan Randhawa, Mr. Muhammad Umar, Syed Muhammad Ali Abdullah Mashhadi, Mr. Omer Daraz Sheikh, Sardar Jehangir Hassan Dogar, Barrister Ch. Hasnain Yunus, Mr. Mujtaba Hassan Tatla, Mian Aqeel Chaudhary, Mr. Muhammad Nadeem Abbasi, Barrister Taimoor Malik, Barrister Maleeha Bukhari, Mr. Mohsin Iqbal, Barrister Maryam Hayat, Mr. Naveed Anjum, Mr. Muhammad Irfan Khan, Mr. Fazal Elahi Akbar, Mr. Muhammad Usman Rafiq, Mr. Muhammad Imran Mansha, Mr. Moiz Tariq, Mr. Riasat Noor Zaman, Mr. Muhammad Aslam Sheikh, Mr. Muhammad Shehzad Wattoo, Mr. Muhammad Naeem, Mr. Muhammad Tahir, Mr. Haris Iftikhar, Mr. Mustafa Haroon, Mr. Mohib Ghazi, Mr. R.A. Majid, Mr. Abdul Qadus, Rana Zohaib, Mr. Anees Sherwani, Mr. Sher Baz Ali, Mr. Muhammad Imtiaz Gujjar, Mr. Muhammad Saad, Mr. Muhammad Javed Arshad, Mr. Hammad-ul-Hassan Hanjra, Malik Ghulam Hassan Ahmad, Mr. Waqar Hassan, Mian Muhammad Hussain, Mr. Nauman Azeem Butt, Mr. Abuzar Hussain, Sardar Azam Mehmood Kasana, Mian Ijaz Latif, Mr. Anees-ur-Rehman, Malik Nadir Ali Sherazi, Mehar Junaid Masood Ahmad, Mr. Faisal Zaffar, Ch. Ahsan Gujjar, Mr. Tanvir Abbas Bhatti, Mr. Muhammad Muzahir Chaudhary, Syed Alamdar Hussain, Mr. Muhammad Irfan Liaqat, Mian Subah Sadiq Klasson, Mr. Muhammad Faizan Sadiq, Syed Waqas Zafar, Mr. Aasim Sohaib, Mr. Muhammad Tahir Munir, Rana Muhammad Usama, Mr. Saad Waqas, Mr. Muhammad Imtiaz-ur-Rehman, Azeem Ullah Virk, Ch. Usman Latif, Mr. Sagheer Ahmad |
| Petitioners | ARZOO TEXTILE MILLS LTD. |
| Respondents | FEDERATION OF PAKISTAN |
| Citations | 2023 SLD 1583, (2023) 128 TAX 229 |
| Other Citations | K-Electric Limited through Chief Executive Officer, Karachi Vs. Federation of Pakistan through Secretary, Ministry of Energy and Secretary, Ministry of Finance, Islamabad and others (PLD 2023 Supreme Court 412), Al-Samrez Enterprise Vs. The Federation of Pakistan (1986 SCMR 1917), Messrs Elahi Cotton Mills Ltd and others Vs. Federation of Pakistan through Secretary M/o Finance, Islamabad and 6 others (PLD 1997 SC 582), National Saving Central Directorate, Islamabad through D.G. and another Vs. Muhammad Farooq Raja (PLD 2021 SC 320), Dossani Travels Pvt. Ltd. and others Vs. Messrs Travels Shop (Pvt) Ltd. and others (PLD 2014 SC 1), Peshawar Electric Supply Company Ltd. (PESCO) and another Vs. SS Polypropylene (Pvt.) Ltd. Peshawar and others (PLD 2023 SC 316), Mst. Fatima Faryad and others Vs. Government of Punjab and others (2020 CLC 836), Dewan Salman Fibber Ltd. and others V. Federation of Pakistan, through Secretary, M/o Finance and others (2015 PLD 2304) |
| Laws Involved | Constitution of Pakistan, 1973 |
| Sections | 199 |