Delegation of Powers by PEMRA Authority

In M/s Fun Infotainment (Pvt) Ltd/NEO T.V. vs. Pakistan Electronic Media Regulatory Authority (PEMRA) (PLD 2024 SC 230), the Supreme Court of Pakistan addressed the validity of actions taken by the Chairman of PEMRA under delegated authority. The Court found that the delegation of authority to the Chairman PEMRA to approve the recommendations of the Council of Complaints (COC) was not properly authorized under the PEMRA Ordinance, 2002, as it lacked the necessary legal framework and conditions set by rules.

Background:

The case originated from a complaint filed before the COC of PEMRA, alleging that NEO T.V. had violated the Electronic Media (Programmes and Advertisements) Code of Conduct, 2015, in a program aired on March 8, 2021. After reviewing the reply from NEO T.V., the COC found the content to be in violation of the Code of Conduct and recommended a fine of Rs. 500,000 to be imposed on the channel. This recommendation was subsequently approved by the Chairman PEMRA on April 29, 2021.

NEO T.V. appealed against the fine to the Lahore High Court, which dismissed the appeal. The channel then sought leave to appeal to the Supreme Court, challenging the authority of the Chairman PEMRA to approve the COC’s recommendation without proper delegation of powers.

Key Issues:

Authority of the Chairman PEMRA: Whether the Chairman PEMRA had the validly delegated authority to approve the recommendations of the Council of Complaints under the PEMRA Ordinance, 2002.

Legal Framework for Delegation: Whether the delegation of powers to the Chairman PEMRA was in accordance with the statutory requirements of the PEMRA Ordinance, 2002, including any conditions prescribed by rules.

Compliance with Statutory and Regulatory Requirements: The extent to which PEMRA followed the necessary legal procedures for delegating powers to its Chairman, and whether such delegation met the standards of reasonableness and non-arbitrariness.

Court's Analysis:

Delegation of Powers Under the PEMRA Ordinance: The Supreme Court noted that the PEMRA Ordinance, 2002, provides PEMRA with the authority to delegate its powers, responsibilities, or functions under Section 13. However, this delegation must be subject to conditions as prescribed by rules. The Court found that while PEMRA had attempted to delegate the power to approve COC recommendations to the Chairman PEMRA through a decision in a meeting dated July 31, 2007, this delegation was not accompanied by any rules or conditions, rendering it legally deficient.

Improper Delegation and Legal Requirements: The Court emphasized that for any delegation of power to be valid, it must be done in accordance with a structured framework, with clear conditions and standards outlined in the rules. The absence of such rules and conditions meant that the delegation to the Chairman PEMRA was not valid under the Ordinance. The Court reiterated that the authority to delegate should not be exercised arbitrarily, and public bodies must confine and structure their discretion by promulgating decisional criteria.

Violation of Procedural Requirements: The judgment highlighted that the Chairman PEMRA’s approval of the COC’s recommendation to fine NEO T.V. was beyond his authority due to the lack of valid delegation. The Court concluded that public bodies, including PEMRA, must ensure that any delegation of power is both procedurally sound and legally valid, adhering strictly to the statutory framework established by law.

Court's Conclusion: The Supreme Court allowed the appeal, converting the petition into an appeal and setting aside the fine imposed on NEO T.V. by PEMRA. The Court held that the Chairman PEMRA did not have validly delegated authority to approve the recommendation of the COC, and therefore, the action taken was unauthorized.

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