ISLAMABAD: The Director General Trade Organisations (DGTO) has issued interim order, directing respondents –Zaka Ashraf and Co– not to function as elected body of Pakistan Sugar Mills Association (PSSMA). DGTO also rejected the plea of the respondents –Aslam Ghani Usman and 11 others in the case –seeking halting of hearing into the case as in their view the matter was sub-judice and pending for hearing before Lahore High Court.
PSMA is one of the most prestigious trade associations of Pakistan and its working with the government is taken seriously . It operates for elections under a rotation formula. In order to make it a real national trade organisation, all provinces of Pakistan head PSMA on their turn. However, a gang of sugar millers led by Zaka Ashraf, a lahore-based miller, overruled the basic principle of rotation and refused to accept Khyber Pukhtunkhaw (KPK) right to elect its nominee to lead PSMA for a current 2-year term (2024-26). Instead giving KPK its right , Zaka Ashraf through an illegal CEC elected like-minded office bearers. Seeing intrusion of Zaka Asharif and Co , Rizwanullah Khan, PSMA KPK chief , took the matter to DGTO.
DGTO issued notices to the parties for hearing for April 29, 2025, but respondents did not take DGTO notices seriously and remained absent from the hearing. DGTO took serious notice of respondents missing from the hearing and subsequently passed on the interim order dated April 29, 2025. In its interim order, DGTO directs all respondents not to function as PSMA office bearers till final order is passed by this office. Zaka Ashrif and compliances faced unparalleled embarrassment for grabbing PSMA office through an illegitimate and retired CEC.
Background
1.1 Complaint: A petition dated 18 April, 2025 was lodged by the Complainant (Chairman, KPK Region and member of the Central Executive Committee of the Pakistan Sugar Mills Association, “PSMA”) challenging the legality of an election conducted by the Retired Executive Committee (2022-24).
1.2 Notices: Copies of the complaint and a notice of hearing for 296 April, 2025 at 1400 hrs were dispatched by courier and e-mail on 23 April 2025, with delivery confirmations on file.
1.3 Non-appearance: On 29 April 2025 the Complainant and counsel attended; no Respondent or authorised representative appeared and no written reply has been received.
1.4 Respondents’ post-hearing letter: After the hearing concluded, the office received a letter dated 26 April 2025 from Mr. Taimoor Aslam Khan, Advocate Supreme Court, on behalf of the Respondents. Relying on an appeal pending before the Islamabad High Court (CMA No. 02 of 2025 in an appeal under Section 21(4) TOA 2013), the letter seeks adjournment sine die on the ground that the present dispute is sub-judice. The letter, however, does not explain the Respondents’ failure to appear on 29 April 2025 despite due service.
2 Prima facie Findings
2.1 The Complainant has prima facie established urgency and potential irreparable harm, as the Respondents are reportedly functioning as office bearers of PSMA on the basis of an election declared illegal in the complaint.
2.2 The Respondents’ failure to appear or respond to correspondence raises concerns about procedural fairness and compliance with statutory obligations under the Trade Organisations Act, 2013 and Rules, 2013.
2.3 Allowing such actions to proceed before adjudication risks irreparable prejudice, possible third-party complications, and frustration of any eventual relief.
2.4 The Respondents silence and non-attendance, despite duly-served notice, justify interim protection of the Association’s affairs.
2.5 Effect of the pending High-Court appeal. The interim order dated 20 January 2025 of the Honourable Islamabad High Court merely declares that “any election held pursuant to the impugned order shall be subject to the final outcome of the instant appeal. It neither stays the working of PSMA nor restrains this office from exercising its statutory powers under Section 14 of TOA 2013 regarding events that transpired after 30 September 2024. Consequently, the plea to adjourn these proceedings sine die is misconceived and is hereby declined.
3 Interim Order (Section 14(3)(g))
Invoking the powers conferred by Section 14(3)(g) Trade Organisations Act 2013, the following directions take immediate effect
A. Status quo: All Respondents, their agents, or any person acting under their instructions are restrained from taking, ratifying, or implementing any. decision, resolution, transaction, or representation on behalf of PSMA (Central or regional) until further orders of the undersigned.
B. Non-recognition: PSMA and its regional offices shall not recognise or give effect to any act performed by the Respondents in their claimed capacities during the currency of this order.
C. Adjournment request: The application contained in Respondents’ counsel’s letter dated 26 April 2025 stands rejected for the reasons stated in para 2.5 above.
D. Written replies deadline: Each Respondent may file a written reply with supporting documents by 9 May 2025 (1700 hrs), serving a copy on the Complainant the same day.
E. Next hearing: The matter is fixed for Tuesday, 13 May 2025 at 1400 hrs in the DGTO Conference Room, Islamabad. Failure to appear will result in ex-parte proceedings and a final speaking order on the available record.
This interim relief is without prejudice to the merits of the dispute and is issued solely to preserve the subject-matter pending final determination.
