Sugar Cartel Case Sent Back to Tribunal for New Proceedings After Supreme Court Ruling

The Competition Appellate Tribunal (CAT) will initiate fresh proceedings in the sugar cartel case, which involves allegations of price manipulation by sugar mills in the past. The Supreme Court of Pakistan has remanded the long-running sugar cartel case back to the CAT for fresh proceedings, directing the Tribunal to decide the matter anew after giving all parties a full right of hearing. This decision came in response to appeals filed by the Pakistan Sugar Mills Association (PSMA) and others against a CAT judgment that had annulled the Competition Commission of Pakistan (CCP) Chairperson’s use of a casting vote in adjudicatory proceedings. In its detailed order, authored by Justice Shakil Ahmed, the Supreme Court upheld the Tribunal’s finding that the CCP Chairperson cannot exercise a casting vote in quasi-judicial matters, terming such use inconsistent with Article 10-A of the Constitution, which guarantees a fair trial. However, the Supreme Court set aside the CAT’s direction for a rehearing by the CCP Chairperson or any other member, and instead ordered the Tribunal itself to hear and decide the appeals within 90 days. The Court held that Section 24(5) of the Competition Act, which allows a casting vote, applies only to administrative or internal matters of the Commission, not to its adjudicatory proceedings. The sugar cartel case began with a CCP inquiry into the increase in sugar prices in 2020. The inquiry found that several major sugar mills had formed a cartel and manipulated prices. The Commission imposed heavy penalties worth billions of rupees. In 2021, a four-member CCP bench delivered a split decision: two members upheld the penalties, while two disagreed. To break the tie, the Chairperson used a casting vote to support the penalties. The PSMA and other mills challenged this decision before the CAT. In May 2025, the Tribunal ruled that the Chairperson could not use a casting vote in such proceedings and set aside the decision. Both sides later appealed to the Supreme Court. The Supreme Court has now sent the case back to the Tribunal for a fresh hearing and final decision.