Supreme Court Rejects Consumer Law Claim for Blocked BISP Retailer ID

The Supreme Court has set aside lower court orders that aimed to restore the blocked identification of a retailer for the Benazir Income Support Programme (BISP). The apex court determined that a complaint filed by a Point-of-Sale (PoS) agent against BISP over his deactivated ID was not valid under consumer protection laws.

A two-judge bench, led by Justice Muhammad Ali Mazhar, ruled that the relationship between the PoS agent and BISP did not qualify as a "consumer service" arrangement. Consequently, the complaint filed under the Khyber Pakhtunkhwa Consumer Protection Act of 1997 was deemed not maintainable. This decision overturns previous rulings by the Consumer Protection Court in Bannu and the Peshawar High Court, which had ordered BISP and Bank Alfalah to reinstate the agent's ID.

Despite dismissing the maintainability of the consumer protection claim, the Supreme Court, in the interest of justice, has mandated an inquiry. The BISP director general for cash transfers in Islamabad is directed to investigate the deactivation of the complainant's ID. The complainant, Fardayaz Khan, must be given a full opportunity to explain the reasons for his ID being blocked and to be confronted with any complaints lodged against him by the BISP Directorate.

An appropriate order is to be passed within 45 days following this inquiry, allowing Khan to pursue further legal remedies if necessary. The case originated when Khan, who claimed to be a PoS retailer distributing BISP payments under a franchise agreement, had his ID deactivated by Bank Alfalah in May 2021. His subsequent legal challenges, initially dismissed by the Wafaqi Mohtasib, eventually led to the Consumer Protection Court's directive for ID restoration.

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We held that [the] complaint under Section 13 of the Khyber Pakhtunkhwa Consumer Protection Act of 1997 was not maintainable.