Legal Case Summary

Case Details
Case ID 10949de0-3bbc-4352-a59f-7d770f4be8ad
Body View case body.
Case Number Civil Appeal No.8-K of 1978
Decision Date Jul 29, 1991
Hearing Date Jun 12, 1991
Decision The Supreme Court held that the provisions of the Foreign Exchange (Prevention of Payments) Act, 1972, specifically sections 2, 6, and 6-A, were unconstitutional as they violated Article 25 of the Constitution of Pakistan, which guarantees equality before the law. The Court determined that the provisions had been applied in a discriminatory manner, denying equal protection of the law to the appellant. The Court further ruled that the validation clause in the amendments to the Act did not cover actions taken prior to its enactment, thus rendering the State Bank's orders against the appellant invalid. The judgment emphasized the importance of equal treatment under the law and the necessity of a rational basis for any legislative classification.
Summary In the case of Inam-ur-Rehman vs. Federation of Pakistan, the Supreme Court of Pakistan addressed the constitutionality of the Foreign Exchange (Prevention of Payments) Act, 1972. The appellant, Inam-ur-Rehman, challenged the actions of the State Bank which directed banks to withhold payments related to repatriated foreign exchange. The Court examined the legality of the State Bank's actions under the provisions of the Act, focusing on Article 25 of the Constitution which guarantees equality before the law. The Court found that the provisions of the Act were discriminatory and unconstitutional, as they were applied selectively against the appellant without a rational basis. This landmark decision reinforced the principles of equal protection and fair treatment under the law, highlighting the need for legislative actions to be free from arbitrary and discriminatory practices. The ruling underscored that laws must be applied uniformly to all individuals, thereby protecting fundamental rights and ensuring justice in financial dealings. Keywords: Foreign Exchange, Constitutional Law, Supreme Court, Discrimination, Legal Rights.
Court Supreme Court of Pakistan
Entities Involved State Bank of Pakistan, Standard Bank Limited, Rawalpindi Engineering Company
Judges Zafar Hussain Mirza, Abdul Qadeer Chaudhry, Sajjad Ali Shah
Lawyers S.M. Zaffar, M. Shabbir Ghaury, Naeemur Rehman, AA. Siddiqi, Saeed A. Shaikh, Muhammad Naeem, Mrs. Majida Razvi
Petitioners Inam-ur-Rehman
Respondents Federation of Pakistan and others
Citations 1992 SLD 254, 1992 SCMR 563
Other Citations PLD 1957 (W.P.) Pesh. 100, PLD 1957 (W.P.) Quetta 1, PLD 1957 SC (Pak.) 9, PLD 1957 SC (Pak) 157, PLD 1975 SC 506, PLD 1976 Lah. 769, PLD 1983 SC 457, AIR 1953 SC 91, AIR 1955 SC 13, AIR 1956 Mad. 480, AIR 1958 SC 538, AIR 1963 SC 268, AIR 1973 SC 689, AIR 1957 Bom. 186, AIR 1969 All. 278, AIR 1969 Punj. & Haryana 98
Laws Involved Constitution of Pakistan, 1973, Foreign Exchange (Prevention of Payments) Act, 1972
Sections 185(3), 184(3), 25, 2, 2, 6, 6A