MUHAMMAD IQBAL vs State Ss — 2022 PLD 378 SUPREME-COURT

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MUHAMMAD IQBAL VS State Ss. 5, 5B & 8---Export (Quality Control) Order, 1973, S. 4(a)---Constitution of Pakistan, Arts. 9, 10 & 14---Accused-exporter failing to ship the export consignment or refund the amount received in advance from the foreign buyer---Reappraisal of evidence---Condition of payment of fine for release from jail imposed by the High Court---Constitutionality---Special Court (Commercial) convicted the accused under section 5 of the Imports and Exports (Control) Act, 1950 read with section 4(a) of the Export (Quality Control) Order, 1973 and sentenced him to 9 months' rigorous imprisonment and also directed him to refund the amount of US $ 87,671.21 "as per current and existing rate of US Dollar"---High Court maintained the conviction, however, the sentence was reduced to one already undergone---Insofar as the recovery of compensation i.e. specified amount of US $ 87,671.21 was concerned, the High Court observed that the same shall be deposited by the accused equivalent to the Pakistan currency at the date of awarding conviction and thereafter his release letter shall be issued to the concerned Superintendent of Jail---Held, that there was sufficient documentary evidence on record to uphold conviction and sentence of the accused, however, he was in prison for more than eight (08) years only because he could not pay the compensation amount---Reading of sections 5 & 5B of the Imports and Exports (Control) Act, 1950 showed that the Commercial Court was empowered to direct the exporter/seller to refund or pay certain amount with or without damages to the foreign buyer and in case of his failure to pay that amount, it shall be recoverable as an arrear of land revenue along with interest at the prevailing bank rate for the period following the expiration of the time within which such amount was payable and it shall be credited to the Revolving Fund---Commercial Court may direct the payment of such compensation from out of the Revolving Fund set up by the Federal Government---In the present case the Special Court (Commercial) could have and should have directed refund to the buyer from the Revolving Fund if the same was immediately not payable by the accused-exporter---Law clearly stated that if the exporter failed to pay the amount to the buyer within the time specified by the Court, the said amount could be recovered as an arrear of land revenue, but the law did not call for indefinite incarceration in case of default in payment---In the circumstances of the case, indefinite confinement in return for default in payment was violative of Articles 9, 10 & 14 of the Constitution---Supreme Court set-aside the impugned condition of payment/refund of compensation amount for the release of the accused and directed that the Federal Government shall pay the foreign buyer compensation/ refund of an amount of US Dollar $ 87671.21 along with interest at the prevailing bank rate from the date of judgement of Trial Court till the date of payment from the Revolving Fund or from the Federal Consolidated Fund, if the former had not been established yet; that the Federal Government may recover the amount of compensation from the accused as arrears of land revenue, in separate proceedings---Jail petition was converted into appeal and allowed.

MUHAMMAD IQBAL vs State Ss — 2022 PLD 378 SUPREME-COURT

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