LHC declines to halt tribunal proceedings in Rs155 million poultry cartel case

The Lahore High Court has refused to stay proceedings of the Competition Appellate Tribunal (CAT) in the Rs155 million cartelisation case involving eight poultry hatcheries and the poultry association over alleged price-fixing of day-old broiler chicks, Business Recorder reported. 

The court allowed the CAT to continue with the appeals, while noting that the constitutional petitions would still be heard on their merits.

The decision was made in response to petitions filed by Supreme Farms (Private) Limited and Sabir Poultry, which had sought to restrain the tribunal from deciding appeals pending before it against an order of the Competition Commission of Pakistan (CCP). The petitioners argued that CAT proceedings should be suspended until the court adjudicated their constitutional challenges.

Supreme Farms questioned the constitutionality of Sections 34 and 53 of the Competition Act, 2010, which empower the CCP to conduct searches and inspections and to seek assistance from other authorities for evidence collection. 

The company also requested that CAT be barred from relying on forensic evidence prepared by the Federal Investigation Agency and data obtained from the Pakistan Telecommunication Authority, both of which formed part of the CCP’s findings.

According to the record, CCP teams had recovered electronic evidence during search and inspection operations at the offices of the poultry association and several hatcheries. This material was later subjected to forensic analysis and relied upon in the regulator’s order.

Sabir Poultry filed a separate petition on similar grounds, challenging the use of mobile phone data and PTA records and seeking a stay on the tribunal’s proceedings. 

In April this year, the CCP imposed cumulative penalties of Rs155 million on eight major poultry hatcheries and the poultry association after a suo motu inquiry found coordinated price-fixing.

The companies named in the order included Sadiq Poultry, Hi-Tech Group, Islamabad Group, Olympia Group, Jadeed Group, Supreme Farms (Seasons Group), Big Bird Group, and Sabir’s Group, which were found to be in violation of Section 4 of the Competition Act, 2010.