ALI ASLAM MALIK vs NATIONAL ACCOUNTABILITY BUREAU S — 2022 PCrLJ 644 KARACHI-HIGH-COURT-SINDH

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ALI ASLAM MALIK VS NATIONAL ACCOUNTABILITY BUREAU S. 18(g)---Securities and Exchange Commission of Pakistan Act (XLII of 1997), Ss. 2(pa), 27 & 41-B [as inserted by Securities and Exchange Commission of Pakistan (Amendment) Act (XXXVI of 2016)]---Constitution of Pakistan, Art. 199---Constitutional petition---Quashing of proceedings---Regulated activity---Liability, determination of---Pendency of civil suit---Petitioners were Stock Exchange Brokers and were alleged to have caused loss to State exchequer by selling shares in question at very low price---Petitioners sought quashing of proceedings before National Accountability Bureau (NAB) on the plea that it was a regulated activity and forum to inquire into such matters was Securities and Exchange Commission of Pakistan---Validity---Dispute between parties was one pertaining to rate that shares in question were sold by petitioners---Suit was already pending in High Court for determination of amount at which the shares were to be sold---Liability of petitioners, if any towards shareholders was disputed between the parties---Many factors and market conditions existed that were to be taken into account before liability of petitioners could be affixed---Such was an ongoing process and was to reach finality when pending suit for determination of liability was decided---Securities and Exchange Commission of Pakistan was best placed to determine in the first instance, whether an offence or fraud had taken place--- Securities and Exchange Commission of Pakistan was granted substantial powers under S. 27 of Securities and Exchange Commission of Pakistan Act, 1997, to investigate whether any regulated person was engaged in committing fraud, misfeasance or other misconduct in carrying out a regulated activity, which was the complaint against petitioners---Securities and Exchange Commission of Pakistan for the purpose of investigation could seek assistance of any other investigating agency or bureau under S. 29(4) of Securities and Exchange Commission of Pakistan Act, 1997--- Securities and Exchange Commission of Pakistan had extensive powers to investigate the matter and if needed could file a reference with NAB---As no reference was made by Securities and Exchange Commission of Pakistan, proceedings against petitioners were void ab initio and were quashed---Petition was allowed, in circumstances.

ALI ASLAM MALIK vs NATIONAL ACCOUNTABILITY BUREAU S — 2022 PCrLJ 644 KARACHI-HIGH-COURT-SINDH

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