RAWALPINDI: The Lahore High Court (LHC) Rawalpindi Bench has modified its order in a high-profile procurement dispute, allowing the Pakistan Ordnance Factories (POF) to proceed with actions taken after signing a contract with a South Korean supplier.

However, the execution of the contract would be subject to the final outcome of the case.

During the hearing on Tuesday, Advo­cate Ahmer Bilal Soofi, representing the POF, said his client is a public limited company incorporated under the Companies Act 2017.

He argued that POF’s fundamental rights under Article 18 of the Consti­tution were being violated due to the court’s order dated December 16, 2024.

He maintained that the firm operates independently under its Board of Directors and does not qualify as a “person” under Article 199(5) of the Constitution.

He further contended that the petitioner, a foreign company based in South Korea, had failed to comply with international legalisation requirements regarding its Board Resolution and had obtained the order through misrepresentation of facts.

Additionally, he argued that the company was not a procuring agency under the Public Procurement Regulatory Authority (PPRA) Ordinance 2002, making the petition legally unsustainable.

The court was informed that the contract between the company and POF had already been signed on November 15, 2024, before the petition was filed on December 16.

The petitioner had also not exhausted the Grievance Redressal Committee mechanism before approaching the court.

Citing various legal precedents, the court acknowledged that once a contract is signed, vested rights are created in favour of the bidder.

It also highlighted the importance of foreign investment and the need to protect business interests under Article 18 of the Constitution.

The South Korean firm HBE had hired the services of senior counsel Farooq H. Naek.

However, he didn’t appear before the court on Tuesday since he was out of the country and expected to return in March. His associate, Advocate Iftikhar Abbasi, instead appeared before the court.

Following the arguments from both sides, the court modified its order, allowing the South Korean company to proceed with its contractual obligations till the final order.

The court directed all respondents to submit parawise comments and relevant documents before the next hearing on March 6.

Published in Dawn, February 5th, 2025