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2022 YLR 921

Khizer Hayat Khan vs Federation Of Pakistan and others

Citation2022 YLR 921
CourtLahore High Court
Case No.Writ Petition No. No.69293 of 2020
Date2021-01-21
Judge(s)Mirza Viqas Rauf
ResultPetition dismissed

MIRZA VIQAS RAUF , J.---The petitioner is a business concern , who is running a compressed natural gas (hereinafter referred as "CNG ") filling station in the name and style of Al-Baddar Filling Station at Darya Road, Bhakkar . For the said purpose, the petitioner obtained a license from the Oil and Gas Regulatory Authority (hereinafter referred as "OGRA "), which is valid up till 24th March, 2025. It is grievance of the petitioner that respondent No.3, through letter dated 19th November , 2020, directed respondents Nos.4 to 6 to seal the filling station. As a result thereof, on the direction of respondent No.4, respondent No.5 sealed the premises on 21st November , 2020.

2. This petition is resisted by the respondents on the ground that petitioner has committed theft of gas on account of which " CNG " filling station has been sealed.

3. Learned counsel for the petitioner contended that the petitioner is holding a valid license for running the business of "CNG " filling station. He added that even otherwise, at present the petitioner is dealing with flare gas under a private settlement for which he has been authorized by the respondent No.2 through letter dated 1st December , 2020. Learned counsel submitted that respondents have no lawful authority to seal the premises and as such impugned action is illegal and unlawful.

4. Conversely , Mr. Umar Sharif, represe nting the Sui Northern Gas Pipelines Limited (hereinafter referred as "SNGPL ") (respondent No.3) has vehemently opposed this petition, with the contention that petitioner was involved in theft of "CNG " on the basis of which he was proceeded against and his premises were sealed. In support of his contentions, learned Legal Advisor referred Section 28 of the Gas (Theft Control and Recovery) Act, 2016 (hereinafter referred as "The Act, 2016 ") and Section 284 of the Punjab Local Government Act, 2019 (hereinafter referred as "The Act, 2019". It is contended that petitioner has no valid license for running business of flare gas.

5. On the other hand, Ch. Akbar Ali, learned Assistant Attorney General for Pakistan submitted that "OGRA " has already issued a show cause notice to the petitioner on the complaint of "SNGPL " and the proceedings to this effect are under process.

6. Syed Shadab Hussain Jafri, learned Additional Advocate General, while adding to the contentions raised on behalf of respondents, submitted that petitioner has contravened the conditions of license and as such he has rightly been proceeded by respondents Nos. 4 to 6.

7. Heard. Record perused.

8. The petitioner is engaged in the busin ess of compression of natural gas for the purpose of storing, filing and distribution of "CNG " to the customers. In order to regulate the said business, the Federal Government established "OGRA " whose powers and functions are defined under section 6 of the Oil And Gas Regulatory Authority Ordinance, 2002 in terms whereof the authority is exclusively responsible for granting licenses for carrying out of regulated activities and regulating such activities.

4. The petitioner was initially granted the provisional license on 25th March, 2005 by the "OGRA", which was extended on 28th September , 2017 under Rule-7 of Compressed Natural Gas (CNG) (Production and Marketing)

Rules, 1992 for a period of 15 years up to 24th March, 2020 and a further extension was allowed vide letter dated 7th October , 2019 up till 24th March, 2015. In the meanwhile, a raid was conducte d by "SNGPL "/respondent No.3 on 26th February 2020 and it was found that the petitioner is involved in theft of gas. As. a result, his premises were sealed. A criminal case FIR No.91 dated 27th February , 2020 was also lodged against the petitioner at Police Station City Bhakkar . To this effect, a suit for recovery of amount of Rs.31,60,66,347/- has also been instituted by "SNGPL "/ respondent No.3 under "The Act, 2016", which is pending. The petitioner de-sealed the "CNG" filling station by his own without any formal approval from the District Government and started business as a result of which, respondent No.3 issued letter dated 19th November , 2020 to respondents Nos. 4 to 6 for re-sealing the premises in pursuance to which respondent No.5 proceeded accordingly .

5. Section 28 of "The Act, 2016" empowers the Gas Utility Company to seek information from or the assistance of any Ministry , Division or agency of the Federal Government, any department or agency of a Provincial Government, local authority , financial institution, political agent, law enforcement agency , including the police and the Federal Investigating Agency , paramilitary forces, levies, land revenue officials, including patwaris or mukhtarkar , and the Securities and Exch ange Commission of Pakistan and it shall be the duty of such Ministry , Division, department, agency , local authority , financial institution, law enforcement agency and Security and Exchange Commission of Pakistan to furnish such information or render such assistance, including but not limited to, removal of encroachments, as may reasonably be required. Respondents Nos,4 to 6, as per mandate of section 28 of the Act ibid, while invoking the provisions of section 284 of "The Act, 2019" sealed the premises and as such no illegality was committed to this ef fect.

11. So far contention of learned counsel for the petitioner that the petitioner has been allowed to run the business of flare gas through letter dated 1st December , 2020 by the Department of Explosives, Ministry of Energy (Petroleum Division), suffice to observe that such department is only meant to ensure the safety measures. The business activity with regard to " CNG " or flare gas is to be regulated by the "OGRA" through a license.

12. It is manifestly clear from the record that petitioner has not obtained any license from the "OGRA" for running the business of (layer gas, as such he is precluded to run the said business. On account of contravention of the terms of license, the petitioner is already facing proceedings before the "OGRA" in terms of a show cause notice dated 12th January , 2021.

13. In the light of above, no justifiable reason is made out to interfere with the impugned action of sealing.

Resultantly , this petition fails and is dismissed with no order as to costs. revisions by the competent authorities. Therefore, it is advisable to consult the official sources or legal professionals for the most up-to-date and accurate information.

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