LHC strikes down restriction on supply of wheat from public stock to new flour mills

LAHORE, Dec 28 (APP):The Lahore High Court (LHC) has struck down the restriction imposed by Punjab Food department on supply of wheat from public stock to new flour mills for grinding, after declaring the same as unconstitutional.

The court struck down Clause 7, which prohibits supply of wheat from public stock to new flour mills for grinding, of a notification dated May 19, 2022, issued by the Food Department secretary under Section 3 of the Punjab Foodstuffs (Control) Act, 1958.

As per a written judgement released here on Wednesday, Justice Abid Hussain Chattha passed the orders while allowing petitions filed by Rana Abdul Basit Khan and others challenging the restriction on supply of wheat from public stock to new flour mills for grinding.

The petitioner’s counsel argued before the court that the petitioners established flour mills after getting no objection certificates from the departments concerned and authorities had issued Foodgrains Licenses to them under the Foodgrains (Licensing Control) Order, 1957 for the purposes of purchase, grinding, sale or storage of Foodgrains and manufacturing of value added products.

He submitted that the petitioners approached the Food department for release of wheat from public stock but their request was denied by citing Clause 7 of the notification, which prohibits supply of wheat from public stock to new flour mills for grinding.

He submitted that the clause 7 of the notification was beyond powers conferred under Section 3 of the Punjab Foodstuffs (Control) Act, 1958, adding that the restriction was a violation of Articles 8, 18 and 25 of the Constitution. He contended that the restriction imposed by the department was discriminatory and pleaded with the court to set aside it.

However, a counsel for the Food department argued that newly established mills were not entitled to obtain wheat from the public stock as per Clause 7 of the notification, which regulates supply of wheat stock to flour mills to ensure uninterrupted supply of wheat flour and to stabilize its price in the market.

He also submitted that formulation of policy falls within the exclusive domain of the Executive, which does not require any interference by the court. He pleaded with the court to dismiss the petitions.

After hearing detailed arguments of the parties, the court struck down the clause after declaring the same as unconstitutional. The court held that the restriction was unreasonable, arbitrary and capricious.