Law: Central Depository Companies (Establishment and Regulation) Rules, 1996

Section: 7

Law: Securities and Exchange Commission of Pakistan Act (XLII of 1997)

Section: 6(g)

Law: Code Of Civil Procedure, 1908.

Section: XXXIX

Summary:The Court refused to stay the suspension of the plaintiff brokerage house imposed for alleged involvement in a fraudulent share trading scheme involving Norrie Textile Mills Limited (NORT). The plaintiff claimed no liability for the fraudulent shares and argued discrimination and lack of hearing. The defendants presented evidence linking the plaintiff's CEO to NORT’s management and fraud. The Court held that public interest and fraud prevention outweigh the plaintiff’s claims and emphasized regulatory responsibility. The plaintiff was directed to cooperate with inquiry, and protection for innocent customers was ordered during the inquiry period.Core Points:Plaintiff is a brokerage house suspended for allegedly allowing trading in non-existent shares of NORT.Plaintiff argues it has no direct liability and suffered discrimination without proper hearing.Defendants claim plaintiff's CEO Noor Qadir was involved in NORT’s management and fraudulent share issue.Documentary evidence and communications implicate plaintiff in a major share fraud.Court applied Order XXXIX, Rules 1 & 2 CPC for temporary injunction criteria: prima facie case, irreparable harm, and balance of convenience.Court found no prima facie case in plaintiff’s favor, prioritizing public interest against…

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