| Citation(s) |
|---|
| 2024 SLG 4262 2024 SLD 4262 = 2024 CLD 773 |
Securities and Exchange Commission of Pakistan
Appeal No.79 of 2023, decided on 26th March, 2024. Date of hearing: 21st September, 2023.
Before Mujtaba Ahmad Lodhi and Abdul Rehman Warraich, Commissioners
Syed Bulent Sohail and Salman K. Haider for Appellants. Mehboob Ahmad, Additional Director, Adjudication-I, Muhammad Anwar Hashmi, Additional Joint Director, Adjudication-I and Raja Farukh Ahmad, Additional Joint Director, Adjudication-I for
Respondent.
Appeal No.79 of 2023, decided on 26th March, 2024. Date of hearing: 21st September, 2023.
Before Mujtaba Ahmad Lodhi and Abdul Rehman Warraich, Commissioners
Syed Bulent Sohail and Salman K. Haider for Appellants. Mehboob Ahmad, Additional Director, Adjudication-I, Muhammad Anwar Hashmi, Additional Joint Director, Adjudication-I and Raja Farukh Ahmad, Additional Joint Director, Adjudication-I for
Respondent.
TPL LIFE TRAKKER LIMITED---Appellant
VERSUS
DIRECTOR/HEAD OF DEPARTMENT, ADJUDICATION DEPARTMENT-I---Respondent
Law: Companies Act, 2017
Section: 199,, /33
Law: Securities and Exchange Commission of Pakistan Act, (XLII of 1997)
Section:
Companies (Investment in Associated Companies or Associated Undertakings) Regulations, 2017-------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.ORDERThis Order shall dispose of Appeal No. 79 of 2023 filed by M/s. TPL Trakker Limited (the "Appellant") under section 33 of the Securities and Exchange Commission of Pakistan Act, 1997 (the "SECP Act") against the order dated May 15, 2023 (the "Impugned Order") passed by the Director/HOD, Adjudication-I (the "Respondent") under section 199 of the Companies Act, 2017 (the "Act") read with…
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