| Case ID |
3c806ebf-e36f-4316-8398-4e30fc10858c |
| Body |
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| Case Number |
Constitutional Petition No. 168 of 1988 |
| Decision Date |
Jan 18, 1999 |
| Hearing Date |
Dec 09, 1998 |
| Decision |
The Sindh High Court ruled that the imposition of a penalty of Rs. 8,80,305 on the petitioner was without lawful authority and directed the State Bank of Pakistan to refund the amount. The court found that the authorities had failed to demonstrate that their actions did not violate the petitioner's fundamental rights under Article 25 of the Constitution of Pakistan. It was established that the imposition of such a heavy penalty was unconscionable and lacked a reasonable nexus to the harm caused. The court emphasized that all public powers and administrative discretion must be exercised fairly and reasonably. |
| Summary |
In the case of MESSRS NEELAM TEXTILE MILLS LTD vs. STATE BANK OF PAKISTAN, the Sindh High Court dealt with the interpretation of the Pay As You Earn Scheme Act of 1973. The petitioners contended that the penalty imposed for failure to repatriate foreign exchange earnings was unjust. The court recognized the importance of fair administrative discretion and ruled against the imposition of the penalty, highlighting the need for reasonable grounds before such financial burdens are enforced. The case underscores the balance between regulatory compliance and the protection of fundamental rights, making it a significant reference point in administrative law and economic regulations in Pakistan. Keywords: Pay As You Earn Scheme, Sindh High Court, penalty, foreign exchange, administrative discretion. |
| Court |
Sindh High Court
|
| Entities Involved |
STATE BANK OF PAKISTAN,
NEELAM TEXTILE MILLS LTD
|
| Judges |
RANA BHAGWAN DAS, JUSTICE,
SABIHUDDIN AHMED, JUSTICE
|
| Lawyers |
Khawaja Shamsul Islam for Petitioner,
Nemo for Respondents Nos. 1 and 2,
H. A. Rehmani for Respondent No. 3
|
| Petitioners |
MESSRS NEELAM TEXTILE MILLS LTD
|
| Respondents |
2 OTHERS,
STATE BANK OF PAKISTAN
|
| Citations |
1999 SLD 1260,
1999 PLD 433
|
| Other Citations |
Shamroz Khan v. Muhammad Amin PLD 1978 SC 89,
Government of West Pakistan v. Mistri Patel PLD 1969 SC 80
|
| Laws Involved |
Pay As You Earn Scheme Act (XXXI of 1973)
|
| Sections |
4
|