CCP allowed to complete proceedings against Fauji Fertilizer and Haier Pakistan

May 30, 2022: The Competition Commission of Pakistan (CCP) will complete the legal proceedings against Fauji Fertilizer Company and Haier Pakistan following favourable orders passed by the Islamabad High Court, which dismissed the writ petitions of the undertakings and allowed CCP to complete the proceedings.

The IHC while dismissing the writ petitions also imposed costs upon the petitioners for filing frivolous petitions against the CCP, a press release issued showed today.

In a writ petition filed by Fauji Fertilizer Company Limited against the CCP in June 2021, the Islamabad High Court dismissed the petition and imposed cost upon Fauji Fertilizer Company.

The CCP had initiated proceedings against Fauji Fertilizer Company in compliance with an order passed by the Competition Appellate Tribunal in March 2018 and had issued a hearing notice to Fauji Fertilizer Company in this regard.

However, Fauji Fertilizer Company had challenged the said notice before the Islamabad High Court. The Court, however, was not convinced by the objections raised by Fauji Fertilizer Company against the CCP’s notice and dismissed its petition while imposing costs upon it amounting to Rs100,000/- in favour of the CCP.

In November 2021, Haier Pakistan (Pvt.) Ltd. had filed a writ petition against the CCP wherein it had challenged an enquiry initiated by the CCP against it under Section 37 of the Competition Act 2010 for alleged violation of Section 10 of the Act (deceptive marketing practices).

The Islamabad High Court after hearing the arguments of both sides held that it was not convinced by Haier Pakistan’s argument that the CCP’s enquiry against it was a ‘roving enquiry’ and was part of a ‘fishing expedition’ as alleged by Haier Pakistan.

On the contrary, the Court was of the view that the CCP’s enquiry was based on valid concerns in relation to possible deceptive marketing by Haier Pakistan through its marketing material. Consequently, the Court dismissed Haier Pakistan’s petition and imposed a cost of Rs. 50,000/- upon it in favour of the CCP.

Press Release