HP | FKM

sugar sector
Sugar Sector

HP | FKM has regularly represented the Pakistan Sugar Mills Association (PSMA) and its members before the Superior Courts of Pakistan, in Constitutional, Civil, Commercial and Criminal matters, including legal proceedings seeking correction in the imbalance in the sugar sector regulatory regime. 

A brief summary of recent key cases handled by HP | FKM on behalf of PSMA and its member sugar mills is included hereinbelow: 

HP | FKM successfully challenged the notification issued by an authority controlled by the Federal Government attempting to regulate the quality control standards of refined sugar on behalf of PSMA and its members. 

HP | FKM successfully challenged the notification issued by the Sindh Government for the crushing season 2018/19 in respect of the fixation of the minimum price of sugarcane on behalf of the PSMA and its member sugar mills. 

HP | FKM successfully challenged the notification issued by the Sindh Government in respect of quality premium on behalf of the PSMA and its member sugar mills. 

HP | FKM successfully challenged the report of the Commission of Inquiry constituted by the Ministry of the Interior of the Federal Government before the Sindh High Court on behalf of various sugar mills situated in Sindh. Through the said report, recommendations were made in respect of initiation of severe penal actions by various regulatory bodies and law enforcement agencies against the said sugar mills. 

HP | FKM successfully challenged the notices issued by the Securities and Exchange Commission of Pakistan against various sugar mills, including but not limited to Mirpurkhas Sugar Mills Limited, Adam Sugar Mills Limited, etc. in relation to initiation of fishing and roving enquiries. 

HP | FKM successfully challenged various notices issued by officers of the Federal Investigation Agency on behalf of sugar mills including Mehran Sugar Mills Limited and Khairpur Sugar Mills Limited, in relation to alleged illegal sale and purchase of sugar. 

HP | FKM challenged the executive order issued by the Federal Government attempting to unlawfully regulate price of refined sugar, on behalf of PSMA and its member sugar mills. The Sindh High Court was pleased to grant interim relief in favour of the sugar mills, on the ground that the Federal Government lacked legislative and executive competence to initiate such actions. 

HP | FKM challenged the imposition of unprecedented cumulative penalty of Pakistan Rupees Forty-Four Billion by the Competition Commission of Pakistan, on behalf of PSMA and its member sugar mills, before the Competition Appellate Tribunal. The Honourable Tribunal has granted an injunction prohibiting the initiation of coercive measures against the sugar mills. 

HP | FKM regularly advises the PSMA and its members including Faran Sugar Mills Limited, and Sindh Abadgar’s Sugar Mills Limited in respect of criminal proceedings initiated against the CEOs and senior management of various sugar mills, allegedly on account of failure to pay dues to sugarcane farmer. 

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