The petition was jointly filed under Article 185 (3) of the Constitution by the federal and all provincial governments, Ministry of Industries and Production, Ministry of Food and Agriculture and Trading Corporation of Pakistan (TCP). Attorney General Sardar Latif Khosa along with provincial advocates general filed the petition.
Pakistan Sugar Mills Association and one Abdul Quddus had been made respondents in the petition. The petition contended that the impugned judgement of Lahore High Court (LHC) had been rendered without reference to record and was liable to be set aside till final adjudication of the petition by the apex court.
The federal government argued that LHC judgement if sustained would result in closure of sugar mills scaring away sugar dealers and ultimately inflicting loss to the growers of sugarcane who were already diminishing over the past couple of years. The petition stated that the whole sugar industry would end up in chaos in case the LHC decision was sustained.
It further stated that the price fixed by LHC would require subsidy of Rs 37 to 40 billion, which was beyond the capacity of the federal and the provincial governments having already deficit budget of Rs 722 billion in the Centre. The petition said that in such an eventuality, additional import of 1.5 million tons of sugar would be a heavy burden on the national exchequer already under stress and strain.
"If the operation of LHC's September 3 impugned judgement is not suspended during the pendency of the instant petition, irreparable loss will occur," the petition further stated. It said the forcible lifting of sugar stock at the price fixed by LHC for selling in the open market by exercising coercive process would drain sugar from the market making it inaccessible to the general public.
The petition says that fixation of sugar price by LHC was unrealistic making the business of manufacturing and selling sugar confiscatory, thus infringing the fundamental rights guaranteed by Article 18 of the Constitution. The petition stated that the price of sugar fixed by the federal government in conjunction and unison with the provincial governments, the sugar suppliers at Rs 45 per kg being lower to the rate in India selling Rs 60 per kg and in Afghanistan at Rs 70 per kg was better regulated as compared to the neighbouring countries.
The petition maintained that the LHC directions regarding sugar prices encompassed the mills of Punjab only and sugar mills of the rest of the country were conveniently left out of the ambit of the courts' order. It said that notices were not issued to any of the sugar mills operating in the province of Punjab during the proceedings of the case pertaining to sugar crises.
The decision to approach the apex court was taken in a three-hour long meeting chaired by the Prime Minister Syed Yousuf Raza Gilani at Prime Minister House on Thursday. It was decided to file a petition to inform the apex court over the issue of sugar crisis.
Earlier, Pakistan Sugar Mills Association and Punjab Sugar Dealers Association had also filed identical appeals in the Supreme Court against the LHC verdict, which are pending for adjudication. According to court sources, the federal and the provincial governments' petition would be heard on September 24 along with the other petitions filed by Pakistan Sugar Mills Association and Punjab Sugar Dealers Association.