the Pakistan Steel Mills by the CCI on May 29, 1997 continues to hold field, “but it would be in order if the matter is referred to the CCI for consideration”.
The short order also holds that it is not the function of the court, ordinarily, to interfere in policy-making domain of the executive. “However, the process of privatisation of the PSMC stands vitiated by acts of omissions and commissions on the part of certain State functionaries reflecting violation of mandatory provisions of the law and rules framed there under which adversely affected the decisions qua pre-qualification of a member of the successful consortium (Arif Habib), valuation of the project and the final terms offered to the successful consortium which were not in accordance with the initial public offer given through advertisement,” the court held.
Barrister Zafarullah Khan of Watan Party, while talking to The News after the announcement of the decision, said the decision would inject more confidence in the public to believe in the judiciary. “It is a great victory of law and would give more room to democratic norms to prevail.”
The chief justice after conclusion of arguments of the counsel for respondents, Sharifuddin
Pirzada for Privatisation Commission, Abdul Hafeez Pirzada for the the federal government and Kazim Hassan, assistant to Khalid Anwar, counsel for the Arif Habib Consortium, said the decision would be announced at around 4pm but it took three additional hours for the court to announce the short order at around 6.45pm on Friday.
Giving reasons, the court noted that the Board of Privatisation Commission (BOPC) after having the final report on evaluation of the PSMC assets on March 30, 2006, recommended the same day that the shares of the PSMC be sold at Rs 17.43 per share. On the very next day, the Cabinet Committee on Privatisation determined the reference price of the share at Rs 16.18, less than that suggested by the PC, whereas the final bid was accepted at Rs 16.80 per share.
The court also noted that apart from price, the government of Pakistan and the PC extended a number of other benefits to the purchaser. Earlier Friday, Hafeez Pirzada while answering a query by the chief justice contended that the process of privatisation of the PSM was never dropped.
The chief justice asked if the idea was not dropped (in 1997-98) why huge money of Rs 7 billion was invested in it. Pirzada responded that the investment was to make the PSM functional to facilitate its privatization. He maintained that if the PSM is put on resale, can anyone be offering more than the present price following the involvement of the Court? The chief justice, however, stated that there existed a (better) standing offer for the PSM.
Kazim Hassan admitted before the court that there was an FIR against Arif Habib under sections 409, 506, 342 and 386 PPC. Before announcement of the decision, Justice Iftikhar Muhammad Chaudhry termed the case “undoubtedly, a lengthy one that took four weeks to decide”.