| Case ID |
3aeb2c92-7d3f-417b-9c2d-596ca2777bcd |
| Body |
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| Case Number |
Civil Suit No.1343 of 2008 |
| Decision Date |
Jun 02, 2009 |
| Hearing Date |
|
| Decision |
The Sindh High Court dismissed the application for a temporary injunction filed by the plaintiff, Al-Mal Securities and Services Ltd., which sought to suspend the operation of a Notice issued by the Securities and Exchange Commission of Pakistan (SECP) that suspended the plaintiff's trading rights. The court found that the plaintiff failed to establish a prima facie case, as significant evidence linked the plaintiff to alleged fraudulent activities involving trading non-existent shares of Norrie Textile Mills Limited. The court emphasized the need to protect the public from potential fraud and directed that a mechanism be established to allow innocent customers of the plaintiff to transfer their accounts to other brokerage houses, thereby ensuring that they do not suffer undue hardship due to the suspension of the plaintiff's operations. |
| Summary |
This case revolves around Al-Mal Securities and Services Ltd., a brokerage house whose operations were suspended by the Securities and Exchange Commission of Pakistan (SECP) due to allegations of trading in non-existent shares of Norrie Textile Mills Limited. The plaintiff sought a temporary injunction against this suspension, claiming irreparable loss. However, the court found sufficient evidence linking the plaintiff's CEO to the fraudulent activities and ruled that the public must be protected from potential fraud. The decision underscored the importance of regulatory oversight in maintaining market integrity and ensuring public trust in financial institutions. The court did not grant the stay but allowed for measures to aid innocent customers affected by the suspension. |
| Court |
Sindh High Court
|
| Entities Involved |
Securities and Exchange Commission of Pakistan,
Al-Mal Securities and Services Ltd.,
Norrie Textile Mills Limited
|
| Judges |
MUHAMMAD KARIM KHAN AGHA, J
|
| Lawyers |
Shahab Sarki,
Ejaz Ahmed,
Jehanzeb Awan,
Mrs. Masooda Qureshi
|
| Petitioners |
ALMAL SECURITIES AND SERVICES LTD.
|
| Respondents |
Defendant No. 2,
Defendant No. 3,
Securities and Exchange Commission of Pakistan through Joint Director, Securities Market Division
|
| Citations |
2009 SLD 1927,
2009 CLD 1358
|
| Other Citations |
Collector, Sahiwal v. Muhammad Akhtar 1971 SCMR 681,
Abdul Wahid v. Securities and Exchange Commission of Pakistan 2008 CLD 57,
Securities and Exchange Board of India v. Alka Synthetics Ltd AIR 1999 Gujarat 221
|
| Laws Involved |
Specific Relief Act (I of 1877),
Central Depository Company (Establishment and Regulation) Rules, 1996,
Securities and Exchange Commission of Pakistan Act (XLII of 1997),
Civil Procedure Code (V of 1908)
|
| Sections |
42,
54,
7,
6(g),
O.XXXIX, Rr.1 & 2
|