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TPL LIFE TRAKKER LIMITED vs DIRECTOR/HEAD OF DEPARTMENT, ADJUDICATION DEPARTMENT-I Regln — 2024 CLD 773 SECURITIES-AND-EXCHANGE-COMMISSION-OF-PAKISTAN

Case information

Citation
2024 CLD 773 SECURITIES-AND-EXCHANGE-COMMISSION-OF-PAKISTAN
Year
2024
Reporter
CLD
Parties
TPL LIFE TRAKKER LIMITED vs DIRECTOR/HEAD OF DEPARTMENT, ADJUDICATION DEPARTMENT-I Regln
Subject matter
Criminal
Provisions referred to
S. 199---S; S. 33---I; S. 199; Companies Act (XIX of 2017); Pakistan Act (XLII of 1997); Companies Act

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

Judgment text as reported

TPL LIFE TRAKKER LIMITED VS DIRECTOR/HEAD OF DEPARTMENT, ADJUDICATION DEPARTMENT-I Regln. 5(6)---Companies Act (XIX of 2017), S. 199---Securities and Exchange Commission of Pakistan Act (XLII of 1997), S. 33---Investment in associated companies and undertakings---Recovery of accrued mark-up / interest receivable from associated companies---Regulatory requirements, non-compliance of---Company was penalized for not instituting any mechanism for the recovery of mark-up in accordance with regulatory requirement---Contention of the Appellant/Company was that failure to comply with the Companies Act, 2017 and the 2017 Regulations was unintentional as it relied on a legal opinion obtained from a reputable law firm---Validity---Contention of the appellant did not absolve it from committed violations as the recovery of interest/mark-up periodically and on regular basis was a mandatory requirement under S. 199 of the Companies Act, 2017, read with Regulation 5(6) of the Companies (Investment in Associated Companies or Associated Undertakings) Regulations, 2017, and any agreement between the appellant and its associated companies could not override the explicit dictates of legal provisions---Appellate Bench also considered that the interest and trust of shareholders had been violated---Appellant had submitted before the Appellate Bench that it had already started recovering the interest amount from its associated companies and it would provide the relevant details along with repayment schedule to the concerned department regarding recovery of the remaining interest amount---In view of the commitment to recover the interest, the Bench had not enhanced the penalty---Appellate Bench found no reason to interfere in the impugned order---Appeal, filed by company, was dismissed.

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