| Case ID |
41a9ddae-1901-488b-b1a8-86c89819805b |
| Body |
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| Case Number |
Writ Petition No. 1199 of 1987 |
| Decision Date |
May 27, 1990 |
| Hearing Date |
|
| Decision |
The Lahore High Court ruled that the Market Committees established under the Punjab Agricultural Produce Markets Ordinance, 1978, are local authorities and thus exempt from the payment of Zakat. The court emphasized that the functions performed by these committees align with those of local authorities as defined in the General Clauses Act. The court found that the memorandums requiring the deduction of Zakat from these committees were without lawful authority and declared them ineffective. The decision affirmed the status of Market Committees as local authorities empowered to manage their own funds and responsibilities. |
| Summary |
The Lahore High Court case involving Market Committees from Chichawatni District addressed the legality of Zakat deductions from these bodies. The court determined that Market Committees, established under the Punjab Agricultural Produce Markets Ordinance, 1978, function as local authorities. This judgment clarified that such committees are not subject to Zakat under the Zakat and Ushr Ordinance, 1980, as they do not meet the criteria of 'Sahib-e-Nisab'. The ruling emphasized the committees' autonomy in managing their funds and executing government-like functions, reinforcing their role in agricultural marketing regulation. This landmark decision is crucial for understanding the financial obligations of local authorities in Pakistan and sets precedence for similar cases in the future. |
| Court |
Lahore High Court
|
| Entities Involved |
Government of Punjab,
Market Committees,
Central Directorate of National Savings
|
| Judges |
MIAN NAZIR AKHTAR, J
|
| Lawyers |
Muhammad Jehangir Arshad for Petitioner,
Muhammad Haneef Sheikh for Respondents
|
| Petitioners |
MARKET COMMITTEE, CHICHAWATNI DISTRICT SAHIWAL through Chairman
|
| Respondents |
FEDERATION OF PAKISTAN through Secretary Ministry of Finance Islamabad and 3 others
|
| Citations |
1991 SLD 1631,
1991 CLC 118
|
| Other Citations |
P L D 1976 Lah. 258,
P L D 1965 SC 201
|
| Laws Involved |
Punjab Agricultural Produce Markets Ordinance,
General Clauses Act,
Zakat and Ushr Ordinance
|
| Sections |
XXIII of 1978,
20,
21,
X of 1897, S.3(28),
XVIII of 1980, S.2(xxiii)(a)
|