| Case ID |
2308ac97-4791-4f48-bd82-961fce4903a4 |
| Body |
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| Case Number |
Civil Petitions Nos. 1191, 1192 and 1193 of 2017 |
| Decision Date |
Feb 12, 2018 |
| Hearing Date |
|
| Decision |
The Supreme Court ruled that the Securities and Exchange Commission of Pakistan (SECP) could not challenge the High Court's judgment which set aside its orders directing insurance companies to pay claims. The Court held that the Insurance Ombudsman and SECP's roles are investigatory and recommendatory, and any aggrieved party must seek judicial review under Article 199 of the Constitution of Pakistan. The Court emphasized that the jurisdiction of the Insurance Ombudsman was limited to complaints of maladministration and that the SECP serves as the final appellate authority. The decision reinforces the independence of the SECP and the need for proper channels for aggrieved parties to seek redress. |
| Summary |
This case revolves around the jurisdiction of the Securities and Exchange Commission of Pakistan (SECP) and the Insurance Ombudsman regarding insurance claims. The Supreme Court of Pakistan adjudicated on the appeals filed by the SECP against the Lahore High Court's decision that favored various insurance companies in claims disputes. It was determined that the SECP, as an appellate authority, does not have the standing to contest the High Court's ruling, which set aside its directives for insurance companies to settle claims. The Court highlighted that the SECP's role is to review decisions made by the Ombudsman and that aggrieved parties have the right to seek judicial review under Article 199 of the Constitution. The case underscores the importance of due process in insurance claims and the limitations of regulatory bodies in challenging judicial decisions. This ruling is significant for stakeholders in the insurance sector, ensuring that claimants have recourse to the courts when dissatisfied with administrative decisions. The case also cited several precedents that reinforce the principle of finality in administrative orders unless challenged by the affected parties. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN,
MESSRS EAST WEST INSURANCE COMPANY
|
| Judges |
MUSHIR ALAM,
MAZHAR ALAM KHAN MIANKHEL
|
| Lawyers |
Syed Hamid Ali Shah, Advocate Supreme Court
|
| Petitioners |
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN, KARACHI
|
| Respondents |
MESSRS EAST WEST INSURANCE COMPANY THROUGH GM AND OTHERS
|
| Citations |
2019 SLD 651,
2019 SCMR 532
|
| Other Citations |
Syed Yakoob v. K.S. Radhakrishnan and others AIR 1964 SC 477,
Mohtesham Mohd. Ismail v. Spl. Director Enforcement (2007) 8 Supreme Court Cases 257,
M.S. Kazi v. Muslim Education Society and others (2016) 9 Supreme Court Cases 263
|
| Laws Involved |
Insurance Ordinance, 2000,
Constitution of Pakistan, 1973
|
| Sections |
125,
130(2),
199
|