CRESCENT STAR INSURANCE LIMITED vs SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN Ss

Fields are extracted from the reported citation and judgment text. Where a detail is not stated in the record, it is not shown.

CRESCENT STAR INSURANCE LIMITED VS SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN Ss. 45, 46 & 158---Companies Ordinance (XLVII of 1984) [since repealed], S. 4---Issuance of ordinary shares---Approval of the Securities and Exchange Commission of Pakistan ('the Commission') with certain conditions)---Penalty for false statement in documents (books, records, accounting, reporting etc.)---Commission granted approval of issuance of ordinary shares to the Appellant (Insurance Company) subject to the condition that the issuance of shares shall be in cash and the Appellant was required to submit bank statements to the Commission upon receipt of the subscription money from the shareholders and underwriters to the issue---Commission penalized the Appellant (Insurance Company) as inspection of the Appellant revealed that apart from subscription (of about one-fourth shares) from general public, remaining (about three-fourth) right shares were issued to the underwriters (three different companies); Inspection report revealed that the Appellant's bank account showed that on one date an amount (of Rs. 230 million) was credited and debited simultaneously eleven times and Rs. 0.573 million and 10.246 million were also credited on the same day ; while debit and credit transactions showed receipt of Rs.230 million against the subscription of right shares ,however, each transaction was credit and debited sequentially and the bank balance remained unchanged---Contention of the Appellant was that the impugned order was hit by the principle of double jeopardy as by an earlier order, passed about two years ago, it had already been penalized---Validity---Record revealed that by virtue of earlier order, the Appellant, was penalized on account of non-compliance of another statutory requirement (to maintain the minimum paid-up capital), whereas, the impugned order was a culmination of the Show Cause Notice having been issued under Ss. 45 & 46 read with S.158 of the Insurance Ordinance, 2000---Impugned Order had been passed under the provisions of the Insurance Ordinance which were not the subject of the earlier order dated---Contention of the Appellant was misplaced as mere mentioning of facts in an earlier order did not in any manner operate as an estoppel to invoke the relevant provisions of law on account of a contravention---Appellate Bench upheld the impugned order passed by the Commission---Appeal, filed by (Insurance) Company, was dismissed, in circumstances.

CRESCENT STAR INSURANCE LIMITED vs SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN Ss — 2024 CLD 1272 SECURITIES-AND-EXCHANGE-COMMISSION-OF-PAKISTAN

Case information

Judgment text as reported

Other judgments reported in 2024 CLD