KARACHI, May 11 The Sindh High Court restrained the Privatization Commission, the Oil and Gas Development Corporation and other respondents on Monday from proceeding with the consideration of tenders for extraction and sale of natural gas at Bobi, Sanghar district.

An urgent petition was filed by Advocates Abdul Hafeez Pirzada and Abdul Sattar Pirzada on behalf of Zafar Mahmood Malik, an OGDC shareholder, saying that gas and other natural resources having been specified in Part II of the federal legislative list, fell within the purview of the Council of Common Interests under Articles 153 and 154 of the Constitution. The subjects mentioned in Part II of the federal legislative list could be dealt with by the government only through the CCI in the light of the Supreme Court judgment in the Pakistan Steel case, they said.

In violation of the constitutional provision, the OGDC, the counsel maintained, the Privatization Commission and the ministry of petroleum and natural resources have decided to invite tenders for the exploration, extraction and sale of gas produced by the Bobi gas field in the district of Sanghar. The tenders were invited in March and were to be opened and considered in April. Subsequently, however, the date for submission of bids was extended to May 12. The tenders submitted by the bidders by May 12 were intended to be opened on the same date. The petitioners' counsel said the decision was unlawful and third party interest would be created if the bidding process was allowed to proceed further.

A division bench comprising Justices Khilji Arif Hussain and Arshad Siraj Memon urgently took up the petition and issued notices to the attorney-general and the respondents for May 21. In the meantime, the bidding process was stayed and the respondents were restrained from acting on their tender notices of March 14 and April 27.

The petitioner had earlier successfully challenged the award of contract for gas exploration at Tando Allahyar and Sinjhoro. The OGDC board of directors passed a resolution to rescind its decision and the petition, moved in 2006, was withdrawn in 2008 as having borne fruit. The corporation again advertised the contract in February 2009 and the court again stayed the bidding at the petitioner's behest. The latest invitation for bids aimed at establishment of an extraction plant by a private investor at the Bobi gas field, Sanghar.

Notices issued

The Sindh High Court on Monday issued notices to the Sindh home secretary, the SHO of the Manghopir police station and others on a petition filed by the managing director of the People's Steel Mills, adds PPI.

Petitioner's counsel Zahid Hamid submitted that M/s Valibhai Karamuddin Sindh (Pvt) Ltd wrote a letter on April 9, 2009 to the SP Gadap seeking registration of an FIR against the MD People's Steel Mills, Munir Ahmed, alleging that he was involved in encroachment and illegal construction on the company's 37 acres in Deh Manghopir, Karachi.

He submitted that since the People's Steel Mills worked under the National Command Authority, any action against the petitioner could only be taken through the Strategic Plans Division.

The division bench comprising Justice Khilji Arif Hussain and Justice Arshad Seraj Memon after a preliminary hearing issued notices to the home secretary and others for May 15.