Law:

Section:

Insurance Ordinance (XXXIX of 2000)------- --------Ss. 11, 29, 36, 63 & 157-------Securities and Exchange Commission (Insurance) Rules, 2002, Rr.9(2) & 13-------Securities and Exchange Commission of Pakistan Act (XLII of 1997), S.33-------SRO No.682(I)/2008 dated 25-6-2008-------Failure to maintain statutory deposit-------Exemption-------Imposition of penalty-------Record available with State Bank of Pakistan, having shown, that appellant/Insurance company had Nil balance against the statutory deposit, show-cause notice was issued to the appellant under Ss.11(1)(b), 29, 63 & 157 of Insurance Ordinance, 2000, calling upon the appellant to show-cause as to why action should not be initiated against appellant for violation of said sections-------Contention of appellant was that Executive Director (Insurance) of the Commission, had failed to take into account that upon fulfilment of all statutory requirements the appellant accrued a vested right to be granted exemption from the requirement of maintaining minimum statutory deposit under S.29 of Insurance Ordinance, 2000; as it was incumbent upon Executive Director (Insurance) of Commission, to set the minimum requirement as zero------- When application for granting exemption was made, Executive Director (Insurance) of the Commission, should have responded the request of appellant and if such request was to be refused, reasons should have been communicated to the appellant-------Contention of the appellant that, their application requesting exemption from minimum statutory deposit under S.29 of the Insurance Ordinance, 2000, should have been properly dealt with by the authorities, was accepted-------Executive Director (Insurance) of the Commission must exercise his discretion to grant exemption to the appellant, when criterion for minimum solvency as well as maintenance of a statutory deposit had been fulfilled-------Impugned order, was set aside-------Authorities were directed to review the matter and appropriate amendments in law were desired to be made, so that in future same issue was not faced by other Insurance Companies. Abdul Karim v. The Returning Officer/AC Hub at Hub and another PLD 1999 Quetta…

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