UNITED INSURANCE COMPANY LIMITED vs The DIRECTOR/HOD, ADJUDICATION-I, ADJUDICATION DIVISION, SECURITIES AND EX

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UNITED INSURANCE COMPANY LIMITED VS The DIRECTOR/HOD, ADJUDICATION-I, ADJUDICATION DIVISION, SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN, ISLAMABAD S. 156---SRO No. 1545(I)/2019 dated 06-12-2019---Penalty for contravention of provisions relating to Insurance Ordinance, 2000---Legislation---Delegation of powers ---Sub-delegation---Scope---Appellant (Insurance Company) was penalized by the Director /HOD of Adjudication Department of Securities and Exchange Commission of Pakistan (Respondent)---Argument of the appellant was that delegation of powers under S. 156 of the Insurance Ordinance, 2000, to respondent amounted to sub-delegation---Validity---Section 156 of the Insurance Ordinance, 2000, was is a penal clause that was delegated in different persons to adjudicate the matters involving violations of the substantive provisions of the Insurance Ordinance, 2000---Furthermore, the Securities and Exchange Commission of Pakistan ('Commission') had delegated its powers through SRO No. 1545(I)/2019 ('the SRO') to various persons, therefore, it was not sub-delegation, rather it was a direct delegation of powers---Sub-delegation was the process whereby a delegatee further delegates powers delegated tohim to any third person, however, in the present case, the Commission directly delegated its powers to different persons including the Respondent (Director /HOD of Adjudication Department of Commission), therefore, it could not be considered as sub-delegation---Even the preamble of the SRO was self-explanatory, that the Commission had delegated its powers through the SRO to different officers, therefore, the question of sub-delegation did not arise---Even otherwise, S. 156 of the Insurance Ordinance, 2000, was not relevant to the present case because neither the Show Cause Notice was issued under the said section nor the impugned order had relied upon the said provision---Misreporting of financial facts was a serious violation and the misreporting of admissible assets by the Appellant for calculation of solvency had been duly established by the Respondent which included "related party" receivables while calculating solvency---Appeal, filed by Insurance Company, was dismissed.

UNITED INSURANCE COMPANY LIMITED vs The DIRECTOR/HOD, ADJUDICATION-I, ADJUDICATION DIVISION, SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN, ISLAMABAD S — 2025 CLD 903 SECURITIES-AND-EXCHANGE-COMMISSION-OF-PAKISTAN

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