SHEIKH AZMAT SAEED, J.--- This constitutional petition is directed against the letter, dated 23-8- 2004, purported to be issued by respondents, whereby, the registration of the petitioner's firm as an approved supplier has been suspended.
2. The brief facts leading to the filing of this petition are that petitioner claims to be the sole proprietor of a firm known as "Fluid System International" (FST), which it is stated is the representative/agent of LOWARA an ITT company manufacturers and suppliers, inter alia, of pumps. It is stated that the petitioner was initially registered as an approved supplied with the respondent in the name of style of Jones Flex. Thereafter the petitioner commenced to carry on its business in the name of FST. In the year 2002 the FST was registered as' an approved supplier with the respondent within the ambit of Purchase Manual for the supply of LOWARA ITT water sewerage and pumping machinery which was subsequently extended.
Thereafter, it appears that some issues pertaining to the payment of sales tax surfaced and as a consequence whereof, the respondent vide the impugned letter, sought the explanation of the petitioner and also suspended the registration. The petitioner appeared to have submitted the requisite reply, but it was not adverted to by the respondent. Hence, this petition.
3. That as directed, respondents furnished their report and parawise comments and perusal thereof reveals that currently some investigation is under way against the petitioner's firm by the Customs and Excise Department of the Federal Government.
4. That during the pendency of this petition, C.M. No.534 of 2005 was filed under Order I, rule 10, C.P.C. On behalf of Messrs KSB Pumps Company Ltd. Stated to be a competitor of the petitioner firm.
5. Learned counsel for the parties have been heard and the record appended with this petition perused.
6. The registration of an approved supplier is regulated by Purchase Manual issued by the Government of the Punjab. In this regard, the respondents resorted to clause 94-D of the Purchase Manual for the suspension of the petitioner's registration, which reads as under: "The contractor has not been found to have indulged in corrupt and fraudulent practices relating to the trade. In such cases, apart from refusal to renew the registration the name of the contractor may be removed from the list of registered firms or he may be blacklisted or his registration suspended for a period to be prescribed in the suspension order."
7. That the petitioner solicited and obtained the response of the Customs and Excise Department, Government of the Punjab with regard to the issue of the sales tax, which was responded to by the Directorate-General of Intelligence and Investigation, Customs and Excise, Government of Pakistan, through its letter No.C.No.M-833/DCI/Seiz/ H/04/6073, dated 4/5-10-2004, in the following manner:- - "It is to inform that a routine investigation is under way regarding the authenticity of declared values in consignments of pumps and motors being imported by your firm during last few years and the extent of evasion once ascertained will be communicated to you when the investigations are finalized.
It is however, not the invention of this Directorate to hamper your legal business activities in any manner and therefore, the concerned Ministry has already been informed vide letter of even No. Dated 10-9-2004 (Annexure "I").
Moreover, this Director has neither asked the PHED and HUD Department for suspension of your licence nor you have been restrained from conducting your legal business activities in any manner.
8. A bare perusal of the contents of the said letter, makes it abundantly clear that petitioner by no stretch of the imagination has been found to have indulged in "corrupt or fraudulent practices".
And understandably, the basic disqualification specified for the annulment of petitioner's registration is palpably lacking in the instant case. I have further noticed that tenor of both the impugned letter and that of dated 4/5-10-2004 reproduced hereinabove, is self-contradictory, inasmuch as, the impugned action hardly discloses any nexus or basis with the relevant provision of the Purchase Manual. In my view, the petitioner has been penalized unilaterally on erroneous assumptions and in violation of Article 18 of the Constitution of the Islamic Republic of Pakistan that safeguards the freedom of trade, business and profession. In this view the matter, it is a fit case for interference by this Court in the exercise of its constitutional jurisdiction and invalidation of the impugned letter which is not sustainable in law. Consequently, I accept this writ petition and set aside the impugned suspension letter of the petitioner firm declaring it to have been issued without any lawful justification and legal effect, with no order as to costs.