| Case ID |
009b57a4-3136-427f-b789-3849d870e2dd |
| Body |
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| Case Number |
Writ Petition No. 4776 of 2009 |
| Decision Date |
Apr 14, 2022 |
| Hearing Date |
Apr 14, 2022 |
| Decision |
The court dismissed the writ petition filed by the petitioner, Messrs Pakistan General Insurance Limited, against the orders of the Federal Insurance Ombudsman and the Securities and Exchange Commission of Pakistan. The court held that the Ombudsman had jurisdiction to direct the petitioner to encash performance bonds, as the matter involved issues of mal-administration. The petitioner was found to have repudiated the claim without lawful excuse, and the performance bonds were deemed irrevocable and unconditional. The court noted that the petitioner failed to avail of the alternate remedy provided under the Securities and Exchange Commission of Pakistan Act, which further justified the dismissal of the petition. |
| Summary |
This case revolves around a writ petition filed by Messrs Pakistan General Insurance Limited challenging the orders of the Federal Insurance Ombudsman and the Securities and Exchange Commission of Pakistan. The core issue involved the encashment of performance bonds executed by the petitioner in favor of contractors who failed to complete their projects on time. The Ombudsman directed the petitioner to encash these bonds, leading to legal challenges by the petitioner who argued jurisdictional issues. However, the court upheld the Ombudsman's authority, emphasizing the availability of alternate remedies and the unconditional nature of the performance bonds. The decision highlights the importance of compliance with contractual obligations and the role of regulatory bodies in ensuring accountability in the insurance sector. Keywords: performance bonds, securities commission, legal compliance, insurance regulations, contractual obligations. |
| Court |
Sindh High Court
|
| Entities Involved |
Securities and Exchange Commission of Pakistan,
Federal Insurance Ombudsman,
Pakistan General Insurance Limited,
Consolidated Construction Company,
Bawaqar Construction Company
|
| Judges |
SULTAN TANVIR AHMAD,
AHMAD NADEEM ARSHAD
|
| Lawyers |
Muhammad Basit Babar Chughtai,
Muhammad Ismail Makki
|
| Petitioners |
Messrs PAKISTAN GENERAL INSURANCE LIMITED
|
| Respondents |
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN,
others
|
| Citations |
2022 SLD 2440,
2022 CLD 1528
|
| Other Citations |
2013 CLD 1075,
2013 SCMR 338,
1999 SCMR 1881,
2009 CLD 1442
|
| Laws Involved |
Securities and Exchange Commission of Pakistan Act,
Insurance Ordinance
|
| Sections |
33(1),
130(2)
|