HYDERABAD, Dec 14: The whole exercise of leasing out the Lakhra Power Plant (LPP) to the Lahore-based Associated Group was patently illegal and unconstitutional, because on a similar point, Supreme Court had struck down the entire privatisation exercise of Pakistan Steels Mills.

This was said by Abdul Hafeez Pirzada advocate while arguing before the Sindh High Court, Hyderabad circuit bench on Thursday.

He said that if the possession of the plant was handed over to intervener, then transaction would attain finality where points of transparency, irregularity and impropriety are also involved in impugned leasing of the plant which is a national asset.

Appearing on behalf of Habibullah Energy Limited (HEL), Mr.Pirzada claimed that his client was the lowest bidder in the issue and his petition also involved some common points, raised by Abdul Mujeeb Pirzada, advocate, the counsel appearing on behalf of the office-bearers of the Zonal Labour Union, Lakhra Power House and requested the court to decide his petition at the stage of limine.

Abdul Mujeeb Pirzada, who was partly heard on last date of hearing and was to continue his arguments, was not heard today as Abdul Hafeez Pirzada spoke at length on some common points of two petitions.

The division bench comprising Mr.Justice Mohammad Moosa K.Leghari and Mr.Justice Maqbool Baqar adjourned the matter to January 11, 2007 by consent.

He referred to another petition that has been admitted by the Chief Justice Sindh High Court on a similar point in Karachi regarding Liquefied Petroleum Gas (LPG).

He said that he was not informed about pre-qualification because the Associated Group (AG) had already been pre-qualified and waved a letter purportedly written by Chairman Wapda dated June 14 to AG that it would be given lease if its bid matches lowest one.

He said Privatisation Commission Ordinance 2000 and its Rules are the moot point of the case. “Illegally is patent in the matter”, he contended while mentioning that whole process had been vitiated because deal had been made surreptitiously between Wapda and AG.

“Any government body or institution where the state has any interest cannot be disposed of without approval of Council of Common Interest (CCI)”, he said and drew attention of the court towards unbundling of Wapda in 1997 following amendments in Wapda Act whereby National Transmission and Despatch Company (NTDC), General Companies (Gencos) and Distribution Companies (Discos) were created while only Water Wing was retained in the Wapda. He said that reference price is to be approved by Privatisation Commission (PC) and that apex court had struck down PSM's privatisation on similar points.

Regarding LPG's case, of which the Sindh High Court is seized of, Mr Pirzada pleaded that LPG was a by-product of natural gas and it had been kept in part-II of Federal Legislative List thus it is under the cover of CCI.

He also quoted Gadoon Amazai case while discussing Articles 153, 154 and 157 of the Constitution.“I will present PSM verdict before their lordships”, he submitted.

He was critical of the fact that none was representing federal government, National Electric Power Regulatory Authority (NEPRA), Ministry of Water & Power, Privatisation Commission which are principal parties while comments have been filed by LPP and Wapda for which he sought time to file rejoinder.

Abid Aziz Shaikh along with Ibrahim Naqshbandi appeared on behalf of Shahid Hamid, who is representing federal government and Wapda. He filed para-wise comments of Wapda and LPP which are taken on record.