Pakistan Case Law
2007 PLD Karachi 214

Syed ARSHAD ALI and 55 others vs PAKISTAN TELECOMMUNICATION

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Citation2007 PLD Karachi 214
CourtSindh High Court
Case No.Constitutional Petition No.D-2086 and Misc. No.8139 of 2006
Date2006-12-13
Judge(s)Sabihuddin Ahmed, C.J., and Faisal Arab
ResultOrder accordingly
AI Summary — generated from this judgment; read the full text below and verify before relying on it.

This matter came before the Sindh High Court through a constitutional petition filed by Syed Arshad Ali and 55 others against Pakistan Telecommunication and others. A preliminary objection was raised regarding the maintainability of the petition under Article 199 of the Constitution of Pakistan 1973, on the ground that respondent No.1 Company had been privatized. The Court examined the factual position that 62% of the shares remained with the Federal Government, while managerial control and a portion of shares were transferred. The Court held prima facie that since the proposed buyer was exercising managerial control on behalf of the Federal Government as the owner, the petition under Article 199 was maintainable. The petition was admitted for regular hearing, while clarifying that the question of maintainability was not foreclosed and could be raised again at the final hearing. The key principle laid down is that a privatized company retaining substantial government shareholding and where managerial control is exercised on behalf of the government may remain amenable to constitutional writ jurisdiction.

Questions settled in this judgment
  • Whether a constitutional petition under Article 199 of the Constitution of Pakistan 1973 is maintainable against Pakistan Telecommunication after its partial transfer of managerial control?
  • Does the retention of majority shares by the Federal Government make a privatized company amenable to writ jurisdiction?
  • Can a preliminary objection regarding the maintainability of a petition be raised again at the final hearing if the petition is admitted for regular hearing?
Laws & provisions referred
  • Article 199, Constitution of Pakistan 1973
constitutional petitionmaintainabilityprivatizationmanagerial controlwrit jurisdictionshares

ORDER

1. ' A preliminary objection as to the maintainability of this petition was raised by Mr. Sakhiullah Chandio on the ground that respondent No.1 Company has been privatized and, therefore, a petition under Article 199 of the Constitution against the aforesaid respondent is not maintainable.

2. Upon information sought learned counsel stated that 62% shares in the company continued to remain with the Federal Government (respondent No.8) but 26% were transferred to the proposed buyer' of controlling shares i.e. Respondent No.3. However, the managerial control was effectually transferred to the proposed buyer to the extent or 58.43% shares. We are prima facie inclined to take the view that the proposed buyer under the present state of affairs is only exercising A managerial control on behalf of the owner which is the Federal Government and, therefore, the petition under Article 199 is maintainable.

3. ' The questions raised in the petition require consideration and we would accordingly admit it and fix it for regular hearing on 16-2-2007 at 11.00 a.m. However, the questions of its maintainability may not be treated fore-closed and also be raised at the final hearing.

Cited by 6 cases

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