Case Details

Citation(s)
2021 SLG 1683 2021 SLD 1683 2021 PLD 483
Lahore High Court
Writ Petition No. 35089 of 2020 (and other connectedPetitions), heard on 19th February, 2021, Date of ghearing:19th February, 2021.
MRS. AYESHA A. MALIK, JUSTICE
Khalil-ur-Rehman and Anis-ur-Rehman for Petitioners (in W.Ps. Nos.35089/20, 36727/20, 128267/18, 40568/20, 37819/20, 43313/20, 35367/20 and 11921/21).Malik Bashir Ahmad Khalid for Petitioners (in W.Ps. Nos.35355/20, 35357/20 and 35652/20).Mrs. Samia K

SURAJ COTTON MILLS LIMITED THROUGH ADIL BASHIR AND 8 OTHErsVSFEDERATION OF PAKISTAN THROUGH SECRETARY AND 2 OTHERS

Law: Oil and Gas Development Company Limited Employees Service Rules, 2002

Section: 8

Law: Natural Gas Tariff Rules, 2002

Section: 18

Oil and Gas Regulatory Authority Ordinance (XVII of 2002)--- ----S. 8---Natural Gas Tariff Rules, 2002, R. 18---Pricing for retail consumers of natural gas---Advice of Federal Government for minimum price and sale price of natural gas---Mandatory nature of obligations cast under upon Oil and Gas Regulatory Authority (OGRA) and Federal Government under S.8 of Oil and Gas Regulatory Authority Ordinance, 2002---Scopes impugned demand for arrears of charges for use of gas created by respondent OGRA on ground that such demand was based on tariff, which was notified in contravention of S.8 of Oil and Gas Regulatory Authority Ordinance, 2002 read with R. 18 of Natural Gas Tariff Rules, 2002; as Federal Government not render its mandatory advice on prescribed tariff, and thus demand for arrears based on impugned notification issued by OGRA was illegal---Validity---Oil and Gas Regulatory Authority per S.8 of Oil and Gas Regulatory Authority Ordinance, 2002 issues prescribed price whereas Federal Government notifies sale price and in event of failure of Federal Government to advise OGRA within stipulated time, OGRA was obligated to notify prescribed price, if higher, as sale price---Section 8 of Oil and Gas Regulatory Authority Ordinance, 2002 cast an obligation on Federal Government to issue its advice within 40 days on sale price and it also cast an obligation on OGRA to make a determination and issue a notification, when Federal Government does did not issue its advice in 40 days, and such statutory provisions were mandatory in order to ensure that process of notifying tariff and ensuring that licensee of natural gas received its revenue requirements was maintained---Upon failure of Federal Government to render advice, it was mandatory upon OGRA to notify prescribed price, if higher, as sale price in terms of S.8(4) of Oil and Gas Regulatory Authority Ordinance, 2002, and no such notification was issued in the present cases however could not get benefit for such shortcomings and had no right to decide what tariff should be and if they were aggrieved during process of determination of tariff, a statutory remedy was available to them under Oil and Gas Regulatory…
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