Statutory Regulatory Authorities

2017 PLD 207 ISLAMABAD Judicial Precedent

Arts. 154 & 153Rules of Business, 1973, R.3(3), Sched. II, Cl.2, Entry 53Notification SRO No.226(I)/2010, dated 3-4-2010Council of Common InterestStatutory Regulatory Authorities

Petitioner was aggrieved of the Memorandum whereby Prime Minister transferred administrative control and had placed five Statutory Regulatory Authorities i.e. National Electric Power Regulatory Authority, Pakistan Telecommunication Authority, Frequency Allocation Board, Oil and Gas Regulatory Authority and Public Procurement Regulatory Authority, under the control of Cabinet Division of Federal Government

Validity

Council of Common Interest held a pivotal status in scheme of Federalism

Obstructing or impeding its functions and bypassing or ignoring the forum which was established to strengthen bonds between Federating units would inevitably lead to defeating intent of framers of the Constitution, besides giving rise to unfounded suspicions and doubts

Placement of five Regulatory Authorities was not a matter relating to day-to-day functioning but it fell within the fold of general principles by which Federal Government was to be guided by Council of Common Interests in its management of public affairs; as such the same fell within the expression used in Art.154 of the Constitution and therefore, subject to the exclusive power and jurisdiction vested in the Council of Common interests

Any alternation made in administrative arrangement relating to regulatory authorities was subject to approval of Council of Common Interests

Policy decisions and guidelines of Council of Common Interests were binding on Federal Government, and the Government was not empowered to interfere with the affairs of regulatory authorities other than as provided under Art.154 of the Constitution and relevant legislative enactments

Provision of R.3(3) of Rules of Business, 1973 was subject to Arts.153 & 154 of the Constitution

Memorandum dated 19-12-2016, could not have been issued nor the Prime Minister was empowered to grant approval pursuance to powers vested under R.3(3) of Rules of Business, 1973

High Court declared the Memorandum in question to have been issued in violation of the constitutional mandate and as such was illegal, void and was issued without lawful authority and jurisdiction

Status which existed before issuance of Memorandum in question was restored

Any alteration or amendment of entry 53 of Cl.2 of Rules of Business, 1973 was required approval of Council of Common Interests

Constitutional petition was allowed in circumstances.