Decision of LHC
Decision of LHC
Decision of LHC
Judgment Sheet
IN THE LAHORE HIGH COURT AT LAHORE
JUDICIAL DEPARTMENT
WP No.48379/2019
Ghani Global Glass Limited
Versus
Federation of Pakistan through Secretary Energy (Power
Division), Islamabad etc.
JUDGMENT
Date of Hearing 20.11.2019
Petitioners by the Mr. Ahmed Pervaiz,
Advocates: Mr. Muhammad Mohsin Virk,
Mr. Muhammad Aslam Sheikh,
Mr. Sher Baz Ali,
Mr. Majid Jehangir,
Mr. Khalil ur Rehman,
Mr. Mustafa Kamal,
Mr. Lisan Ullah Khan,
Mian Muhammad Hussain Chotya,
Malik Sohail Ashiq Shujra,
Sheikh Muhammad Akhtar Shahzad,
Rana Mehboob Alam Khan,
Syed Najaf Hussain Shah,
Sayyed Alamdar Hussain Naqvi,
Mr. Imran Anjum Alvi,
Mian Mahmood Rashid and Rubi Saleha,
Malik Kashif Rafique Rajwana and Rabia
Hassan
Mr. Arshad Nazir Mirza,
Mr. H.M. Majid Siddiqui,
Mr. Moiz Tariq,
Rana Muhammad Arshad Khan,
Rai Muhammad Azam Kharal,
Mian Ali Akbar,
Rana Ahmed Tayyab Shahid,
Mr. S.M. Raheel,
Mr. Sohail Javed Chughtai,
Chaudhary Muhammad Ajmal Haq,
Mr. Muhammad Irfan Liaqat,
Mr. Muhammad Farooq Sheikh,
Mr. Khalid Gulzar,
Rana Sajid Rasool,
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basis thereof have built that payment into their costs for the purposes
of their business. Furthermore once the bill has been paid, there is no
justification to seek any adjustment against a paid bill nor does the
law provide for the same.
4. Learned counsel further argued that the tariff was first
determined on 8.3.2016 being a multi year consumer end tariff for the
years 2015 to 2020. Against this tariff, LESCO filed a motion leave to
review which was dismissed by NEPRA vide order dated 19.5.2016.
The Federal Government made a request to reconsider the tariff which
was also dismissed on 1.7.2016 by NEPRA. The Respondent
distribution companies approached the Hon’ble Islamabad High Court
through various different petitions, consequent to which the matter
was remanded to NEPRA to re-determine the tariff for the financial
year 2015-16 to 2019-20. On 23.10.2017 NEPRA on its own made
some adjustments to the tariff for the financial year 2016-17 and for
the first time notification for the financial year 2015-16 and 2016-17
was issued on 22.3.2018. In the meantime on 27.4.2018, Regulation of
Generation, Transmission and Distribution of Electric Power Act,
1997 (“the Act”) was amended, such that several amendments were
made to Section 31 of the Act of which Section 31(4) is relevant for
the purposes of the dispute before the Court. The Federal Government
made a request before NEPRA for making uniform tariff and NEPRA
issued its decision on 19.12.2018 for the financial year 2016-17 and
2017-18. This was notified on 1.1.2019. On 14.6.2019 NEPRA made
its second decision whereby adjustments were made in the tariff that
had already been notified on 1.1.2019. These adjustments were
notified on 28.6.2019 after following the requirements of law for
public notices and calling for objections. Learned counsel further
argued that all adjustments made are in violation of Section 31(2)(a),
31(2)(c), 31(3)(a) and 31(3)(d) of the Act. Learned counsel further
argued that the decision was taken by only three members of NEPRA
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9. The basic frame work of the law for tariff determination falls
under the Act. Section 7 provides for the powers and functions of the
Authority, wherein Section 7(2)(i) prescribes that the Authority shall
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Petitioners which they seek to enforce nor is there any basis on which
they can claim that the periodical adjustments are illegal or have been
even given retrospective effect. The periodical adjustments are in
terms of the prescribed procedure under the scheme of the Act, hence
no illegality is made out. Furthermore, remedy of appeal is provided
under the Act, which was never availed by the Petitioners.
(AYESHA A.MALIK)
JUDGE
Allah Bakhsh*