| Case ID |
3ae13f9f-b76e-4799-80f3-57a548febc1e |
| Body |
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| Case Number |
Appeal No. 41 of 2015 |
| Decision Date |
Jan 11, 2016 |
| Hearing Date |
Dec 10, 2015 |
| Decision |
The appeal against the order dated 01/10/15 was heard, and it was determined that the Pakistan Mutual Insurance Company failed to submit the required Statement of Assets for Solvency. Despite the company's CEO admitting to the default, a fine was imposed on the directors and the company. However, given the company's cessation of new contracts and the initiation of voluntary winding up, the penalty was set aside. The company was warned to ensure compliance with relevant laws until the winding up process was completed. |
| Summary |
This case revolves around the Pakistan Mutual Insurance Company (Guarantee) Ltd. which faced penalties for failing to submit the Statement of Assets for Solvency as mandated by the Insurance Ordinance, 2000. The company's non-compliance led to a show-cause notice and subsequent fines imposed on the company and its directors. The appeal highlighted the challenging circumstances faced by the company, including the cessation of new insurance contracts and the initiation of a voluntary winding-up process. The decision ultimately favored the appellants by setting aside the imposed penalties while emphasizing the need for future compliance with legal regulations. This case is significant in understanding the regulatory framework surrounding insurance companies and the consequences of non-compliance, making it a crucial reference for legal professionals and companies in the insurance sector. |
| Court |
Securities and Exchange Commission of Pakistan
|
| Entities Involved |
Securities and Exchange Commission of Pakistan,
Pakistan Mutual Insurance Company
|
| Judges |
Zafar Abdullah
|
| Lawyers |
Ch. Abdul Karim,
Hasnat Ahmad,
Farrukh M. Qureshi
|
| Petitioners |
THE PAKISTAN MUTUAL INSURANCE CO. (GUARANTEE) LTD. THROUGH CHIEF EXECUTIVE OFFICER AND 7 others
|
| Respondents |
CHAIRMAN, SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN AND another
|
| Citations |
2017 SLD 673,
2017 CLD 264
|
| Other Citations |
Not available
|
| Laws Involved |
Insurance Ordinance, 2000
|
| Sections |
46(1)(b),
51,
63(2)(d),
65,
144,
156
|