- It also puts on hold shifting of a sugar mill
- Case referred to Lahore High Court
A three-member bench, headed by Chief Justice Saqib Nisar, has ordered that three sugar mills owned by Sharif Family stop their crushing operations and referred the matter to Lahore High Court to decide on the matter within seven days.
The application was submitted by JDW Sugar Mills against the relocation of Ittefaq, Haseeb and Chaudhry sugar mills from northern to southern Punjab.
Aitzaz Ahsan, representing JWD Mills, argued that Lahore High Court gave temporary relief to three mills. ‘Ittefaq Sugar Mill has continued its crushing operations under the cover of this relief. As it was not functional, its transfer is against the law. According to law, only functional sugar mills can be moved,’ he argued. Mr Chaudhary cited a Supreme Court judgment where it barred establishment of sugar mills in areas where cotton is produced.
Barrister Aitzaz also made reference to a 2006 notification where a bar was placed on constructing new sugar mills and relocating older ones. He prayed that since a power plant is installed along with sugar mills, its transfer is illegal and asked the court to stop all crushing operations of these mills.
Advocate Salman Akram Raja, counsel of Ittefaq Sugar Mills, argued that in December 2015 an amendment was made by a committee headed by chief minister Punjab in which the restriction on new sugar mills was retained, while the bar on transferring was removed.
‘The amendment was made while remaining in the ambit of law and it is only an allegation,’ answered Mr Raja when CJ Saqib asked whether the notification was amended to benefit the family and relatives.
Mr Raja also argued that in case factories are not allowed to work thousands of workers will lose their jobs and an investment of 380 million rupees will go to waste.
When Chief Justice Saqib Nisar asked as to who are the shareholders of Ittefaq Sugar Mills, Mr Raja replied that Tariq Shafi, Javed Shafi and their family own the shares. The bench inquired whether Hamza Shahbaz and his family own some shares in the mill. ‘Hamza Shahbaz Sharif or his family has no shares in the sugar mill,’ replied Advocate Salman Akram Raja.
Justice Umer Atta Bandial remarked that the issue at hand is of interests. ‘The chief executive has direct relation with the amendment in the notification,’ he said.
The bench has transferred the case to Lahore High Court and directed the court to hear all parties and decide the matter within seven days.
Back in July, Mrs Justice Ayesha A Malik of the Lahore High Court in JDW Sugar Mills Ltd etc vs Province of Punjab etc had upheld that no new sugar mills or change of location of existing sugar mills is allowed in Punjab.