CAT directs CCP to reassess PSMA penalty case

May 23, 2025 (MLN): The Competition Appellate Tribunal (CAT) has 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.

In its short order, the Tribunal directed that the matter be reheard by the CCP Chairperson or any other Commission member not involved in the earlier conflicting opinions.

The Tribunal further instructed that a final decision be issued preferably within 90 days.

The original CCP order from 2021 was issued by a four-member bench that was equally divided, according to the press release.

Chairperson Ms. Rahat Kaunain Hassan and Member Mujatba Lodhi supported imposing penalties, while Members Ms. Bushra Naz Malik and Shaista Bano dissented.

To resolve the deadlock, Chairperson Hassan exercised a casting vote under Subsection 5 of Section 24 of the Competition Act, 2010, via a note dated August 13, 2021.

This action converted the tie into a majority decision upholding the penalty.

The legality of this casting vote became the central point of the appeals.

The CAT has now ruled that the Chairperson does not hold the authority to cast a deciding vote in quasi-judicial proceedings under the Competition Act, 2010.

Consequently, the opinion formed through the casting vote has been set aside.

Following the new hearing, the final decision from the Chairperson or the assigned member will determine whether PSMA and its members violated competition laws.

This ruling comes as the CAT resumes full operations, following the federal government’s recent appointment of a new Chairman, enabling the Tribunal to hear several pending appeals.

Copyright Mettis Link News