| Case ID |
399ca092-1de7-4e80-8d50-70950f81d5be |
| Body |
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| Case Number |
Appeal No. 35 of 2016 |
| Decision Date |
Jul 12, 2016 |
| Hearing Date |
May 11, 2016 |
| Decision |
The appeal filed by Shireen Arshad Khan against the order imposed by the Securities and Exchange Commission of Pakistan was granted. The court found that the Show Cause Notice was not properly served to the Appellant, which rendered the proceedings void and without lawful authority. As a result, the Impugned Order imposing a penalty of Rs. 200,000 was set aside. The court emphasized the importance of adhering to the principles of natural justice and proper notification before imposing penalties. The ruling reinforces the necessity for due process in regulatory actions, ensuring that all parties are adequately informed and allowed an opportunity to defend themselves against allegations. |
| Summary |
In the case of Shireen Arshad Khan vs. Director of the Securities and Exchange Commission of Pakistan, the appeal revolved around the legality of penalties imposed for alleged violations of company regulations. The key issue was whether the Show Cause Notice (SCN) was appropriately issued to the Appellant. The Appellant, Shireen Arshad Khan, contested the allegations relating to excessive perks and remuneration provided to her as Chairperson of Aik Hunar Aik Nagar, arguing that she was not a member of the company and thus not subject to the rules in question. The court's decision underscored the importance of fair procedural practices in regulatory enforcement and highlighted the necessity for proper notification in compliance with legal mandates. The ruling not only set aside the penalty but also reinforced principles of justice and due process within corporate governance. The implications of this case are significant for regulatory bodies and corporations alike, emphasizing the need for clarity in the application of laws and regulations governing corporate conduct. The outcome serves as a precedent for future cases involving similar issues of compliance and procedural integrity, ensuring that all parties receive a fair opportunity to address any allegations made against them. |
| Court |
Securities and Exchange Commission of Pakistan
|
| Entities Involved |
Aik Hunar Aik Nagar (AHAN),
Ministry of Industries and Production (MoIP)
|
| Judges |
Zafar Abdullah,
Fida Hussain Samoo
|
| Lawyers |
Not available
|
| Petitioners |
Shireen Arshad Khan
|
| Respondents |
Director, (Corporatization and Compliance Department) Securities And Exchange Commission Of Pakistan
|
| Citations |
2017 SLD 1443,
2017 CLD 531
|
| Other Citations |
2011 CLD 1228,
2013 SCMR 1159,
2003 CLD 131
|
| Laws Involved |
Securities and Exchange Commission of Pakistan Act, 1997,
Companies Ordinance, 1984,
Companies (General Provisions and Forms) Rules, 1985
|
| Sections |
33,
506(2),
6(4)(ii)
|