PLD 2014

P L D 2014 Islamabad 79 (PLP)

PAKISTAN TELECOMMUNICATION COMPANY LIMITED — Appellant Versus PAKISTAN TELECOMMUNICATION AUTHORITY — Respondent

Jurisdiction / Court
High Court
Decided Date
N/A
Honorable Judges
N/A
Case Reference Summary (AEO Optimized)
Citation P L D 2014 Islamabad 79 (PLP)
Forum / Court High Court
Bench Members N/A
Parties PAKISTAN TELECOMMUNICATION COMPANY LIMITED — Appellant Versus PAKISTAN TELECOMMUNICATION AUTHORITY — Respondent
Primary Law (c) Constitution of Pakistan, (d) Pakistan Telecommunication (Re-organization) Act (XVII of 1996), (a) Appeal
💡 Quick Legal QA & Summary / سوال و جواب خلاصہ
Q1: What are the key laws and sections cited in P L D 2014 Islamabad 79 (PLP)?

This judgment primarily cites: (c) Constitution of Pakistan, (d) Pakistan Telecommunication (Re-organization) Act (XVII of 1996), (a) Appeal, (b) Pakistan Telecommunication (Re-organization) Act (XVII of 1996) as referenced in Pakistani case law index.

Q2: Which judicial bench decided the case P L D 2014 Islamabad 79 (PLP)?

The case was heard and decided by the High Court bench comprising: N/A.

Q3: What is the official citation format for this judgment on Pakistan Law Portal?

Cite this legal precedent as: P L D 2014 Islamabad 79 (PLP) (PAKISTAN TELECOMMUNICATION COMPANY LIMITED — Appellant Versus PAKISTAN TELECOMMUNICATION AUTHORITY — Respondent). Read the full summary and cross-referenced laws free on Pakistan Law Portal.

Laws Cited

(c) Constitution of Pakistan (d) Pakistan Telecommunication (Re-organization) Act (XVII of 1996) (a) Appeal (b) Pakistan Telecommunication (Re-organization) Act (XVII of 1996)

Representation

  • Babar Sattar for Respondent No.2.

Headnotes / Summary

Appeal against a consenting order was not competent.

S. 4(m)

Competition Act (XIX of 2010), S. 28

Anti-competitive practices in providing broadband services

Concurrent jurisdiction of Pakistan Telecommunication Authority (PTA) and Competition Commission

Complainant-companies filed complaints before PTA alleging that Pakistan Telecommunication Company Limited (PTCL) provided broadband services to them for onward sale to the public, but at the same time provided same services to the general public as well; that PTCL provided broadband services to the public at a much lower rate and put the complainant-companies in a position where they could not provide the same services on the same rate

Maintainability

Concurrent jurisdiction was available to the Competition Commission as well as PTA to adjudicate upon the present complaints

Different companies were involved in the same business, so in order to maintain a healthy competition among companies, the jurisdiction of PTA could not be considered as ousted

Appeal was disposed of accordingly.

Art. 18(b)

Freedom of trade, business or profession

Regulation of business in the interest of fair competition

Scope

Under Art. 18 of the Constitution, every citizen had a right to enter into any lawful business, however, the same could be regulated in the interest of fair competition, under Art. 18(b) of the Constitution

Object of free trade and business was also to maintain a healthy competition therein

Object of freedom of business was also to avoid monopoly of any person.

S. 4(m)

Anti-competitive practices in providing broadband services

Complaint filed before Pakistan Telecommunication Authority (PTA)

Complainant-companies filed complaints before PTA alleging that Pakistan Telecommunication Company Limited (PTCL) provided broadband services to them for onward sale to the public, but at the same time provided same services to the general public as well; that PTCL provided broadband services to the public at a much lower rate and put the complainant-companies in a position where they could not provide the same services on the same rate

PTCL agreed to provide its accounts to PTA to deduce as to whether it was actually providing broadband services to the public at reduced prices against prices of the complainant-companies

PTA disposed of the complaints after consent of both parties and directed PTCL to submit its audited accounts

Subsequently PTCL filed present appeal against order of PTA

Competency

Present appeal was filed against a consenting order, thus the same was not competent

Additionally PTA had only called record of PTCL to determine as to whether fair competition existed in the market or not

No final order was passed by PTA, so the present appeal was incompetent on such score as well

Appeal was dismissed accordingly.

Judgment & Decree

RIAZ AHMAD KHAN, J.-- This judgment is directed to dispose of F.A.O. No.72 of 2011.

2. Brief facts of the case are that the Pakistan Telecommunication Company Limited, appellant herein, is a public limited company, engaged in the business of provision of Telecommunication Services throughout Pakistan under a license issued by the respondent, the Pakistan Telecommunication Authority. Like PTCL there are other similar companies, who are providing Telecommunication Services to the masses. In fact PTCL provides services to these small companies and at the same time to the masses as well. Some of these companies by the name of ISPAK, LINKdotNET and Micronet Broadband filed complaints dated 10-11-2010 and 28-2-2011 against the appellant, wherein it was alleged that the appellant was involved in anti-competitive practices in the broadband service. The allegation was that the PTCL provides services at the lower rates to the masses and as a result the complainants are placed at a position, where they can not provide the same service on the same rate. It was further alleged that since the complainants provide the DSL service at a higher rates; so, as a result they suffer losses. It was, therefore, prayed that a direction be issued to PTCL for reduction of rate of whole sale internet broadband services.

3. The respondent, the Pakistan Telecommunication Authority while adjudicating upon the complaints asked for comments from all the concerneds. The appellant submitted that as per direction of the authority separate accounts of PTCL for FY 2010-11 will be submitted before the authority by 31st, December, 2011. In response to the appellant's commitment to provide its separated accounts by 31st December, 2011, the complainants requested the Authority to dispose of their complaints, as no further proceedings were required. In view of the above said situation, the Authority passed the following order: "Keeping in view the aforementioned facts and findings, the Authority hereby disposes off the complaints lodged by the complainants and directs PTCL to prepare and submit its audited separated accounts for retail and wholesale segment of broadband services in addition to services already covered in Accounting Separation Regulations/Guidelines 2007 by 31st December, 2011." Feeling aggrieved of the above said order, present appeal was filed.

4. Learned counsel for the appellant submitted that the complaints were not maintainable, as the respondent had no jurisdiction to adjudicate upon the complaints. The complainants if had any grievance, could invoke the jurisdiction of Competitive Commission. It was further submitted that in fact the complainants had already invoked the said jurisdiction and therefore, the complaints were not maintainable. It was further submitted that the complaints were violative of Article 18 of the Constitution of Islamic Republic of Pakistan, as the same were meant to prohibit a healthy competition.

5. On the other hand, learned .counsel for the respondent submitted that the complainants, no doubt had filed complaints with the Competitive Commission and thereafter the present complaints were filed before the respondent. Since, the Competitive Commission has the powers to investigate a case under Suo Motu powers, therefore, the complaints are pending there, but the appellant is not party to that. It was further submitted that under section 4(m) of the Pakistan Telecommunication (Reorganization) Act, 1996 the respondent has the powers to regulate competition in the telecommunication sector and protect consumer rights. As such, the Authority had the jurisdiction to entertain the complaints. The learned counsel further submitted that the appellant had given consent before the respondent/Authority and against a consenting order, appeal was not competent. It was further submitted that the appellant is a huge Public Limited Company, which provides services to different companies for onward sale of the same to the public, but at the same time provides those services to the general public as well. The PTCL has got different types of services; so, by reducing price of one service and increasing the price of the other, PTCL creates a situation for the complainants, which not only causes loss to the complainants, rather it becomes impossible for the complainants to run their business or compete with the PTCL. The respondent/Authority only directed PTCL to submit/check the separate accounts of retail prices of PTCL and wholesale segment. By comparison of the two, the Authority could come to know as to whether PTCL was actually providing services at reduced prices against the prices of the complainants or not. Even final order was not passed and the same was challenged before this Court.

6. I have heard learned counsel for the parties and have also perused the record.

7. Admitted position in the present case is that the appeal has been filed against a consenting order and the same is not competent. Furthermore, the contention of learned counsel for the petitioner that the Authority had no jurisdiction to entertain the complaints is not correct. There is no doubt that the Competitive Commission is empowered to adjudicate upon such like complaints, nevertheless concurrent jurisdiction is available to the Competitive Commission as well as the respondent/Authority. In this respect, contention of learned counsel for the appellant is that by establishment of the Competitive Commission impliedly jurisdiction of the Authority has been ousted but it is not correct. Since, different companies are involved in the same business, so in order to maintain a healthy competition among the companies, the jurisdiction of the authority can not be considered as ousted.

8. The contention that the complaints were in violation of Article 18 of the Constitution of the Islamic Republic of Pakistan, 1973 is also not correct. Under Article 18 of the Constitution, every citizen has a right to enter upon any lawful business; however, the same could be regulated in the interest of fair competition, under sub-clause (b) of Article 18 ibid. In other words, one object of free trade and business is to maintain a healthy competition therein. The object of freedom of business is also to avoid monopoly of any person. The respondent, in the present case, has only called record of the petitioner to determine as to whether fair competition exists in the market or not. No final order was passed, so the appeal is incompetent on this score as well.

9. In view of the above said circumstances, I find no force in this appeal and the same is hereby dismissed. MWA/17/ISL. Appeal dismissed.