Companies Act, other administered legislation: Five HCs designated as special courts to try cases

Updated 04 Aug, 2024

ISLAMABAD: The federal government has notified five high courts as special courts under Section 37 of the Securities and Exchange Commission of Pakistan Act, 1997, to try offenses under the Companies Act, 2017 or any other administered legislation, in their respective jurisdiction, well-informed sources told Business Recorder.

On July 24, 2024, the Ministry of Law and Justice apprised the Cabinet that business related to the administration of Special Courts/ Tribunals under Federal subjects stood allocated to Ministry of Law and Justice.

It was further apprised that accordingly, the Chief Justices of the concerned High Courts have given concurrence to notify the Special Courts (offices in banks) and Banking Courts under section 37 of the SECP Act, 1997 to take cognizance of the offences under the said Act or any administered legislation.

The following detail was provided to the Cabinet: (i) Islamabad High Court, (Special Court, offences in banks, Islamabad; (ii) High Court Balochistan (Special Court, offences in Quetta; (iii) High Court Sindh, Karachi (Special Court, offences in banks, Karachi; (iv) Lahore High Court (Special Court, offences in banks -1&II, Lahore Special Court (offences in Banks) Multan; and (Peshawar High Court (Banking Court-1, Peshawar.

The Ministry of Law and Justice cited section 37 of the Securities and Exchange Commission of Pakistan Act, 1997 (XLII of 1997) which is as follows 37.Cognisance of offences -(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1898 (Act No. V of 1898) but subject to the administered legislation, no court other than the court of sessions shall take cognizance of any offence punishable with imprisonment or imprisonment in addition of fine under this Act or any administered legislation, except on a complaint by an officer authorized in this behalf by the Commission signed by the Commissioner: Provided that the Federal Government may, in consultation with the Chief Justice of the concerned High Court, notify any other court established under any other law presided by Session Judge or equivalent to take cognizance of any offences under this Act or any administered legislation.

SECP releases report titled ‘Insured Pakistan: Pools Dynamics’

(2) Subject to sub-section(1), in case of transfer of case from court of sessions it will not be necessary to recall any witness or record any evidence a new that may have been recorded and the court to which the case is transferred shall continue proceedings from the stage before such transfer.

The sources said based on the recommendations of the respective high courts, ie, Islamabad, Balochistan, Sindh, Lahore and Peshawar, the Ministry of Law and Justice proposed that five high courts may be notified under Section 37 of the Securities and Exchange Commission of Pakistan Act, 1997, to try offences under the Companies Act, 2017 or any administered legislation, in their respective jurisdiction. The draft notification was also shared with the Cabinet.

After a brief discussion, the Cabinet accorded approval of the proposal of Ministry of Law and Justice titled “designation of Special Courts (offences in banks) and banking courts to try offences under Section 37 of the Securities and Exchange Commission of Pakistan Act 1997 (XLII of the 1997).”

Copyright Business Recorder, 2024

Read Comments