| Citation(s) |
|---|
| 2025 SLG 5208 2025 SLD 5208 = 2025 SHC 3294 |
M. A. No.11 of 2020
Muhammad Faisal Kamal Alam, J
Dates of hearing : 30.09.2024 07.10.2024 and 10.10.2024. Appellant [Muhammad Iqbal (Partner)] : Through Barrister Syed Ahsan Ali Shah.
Respondents No.1 and 2. [Appellate Bench No.1, SECP and the Executive Supervision Department, Company Law Division-SECP] : Through M/s. Syed Imran Hashmi and Syed Ibad, Advocates.
[Muhammad Iqbal (Partner)
VERSUS
Appellate Bench No.1 and another]
Law: Companies Ordinance, 1984
Section: 255(3),260
Summary:
The appellant, a partner in a Chartered Accountants firm, was penalized Rs.10,000/- by SECP for allegedly misclassifying short-term investments of a client under IAS-39, which was interpreted as a misstatement in the client’s accounts. The appellant argued that the reclassification was permissible under IAS-39 in “rare circumstances†and that no mens rea or willful default existed. The Court reviewed the case, considered professional judgment and precedent, and concluded that the penalty was unwarranted. The token penalty was therefore set aside, but the appellant was cautioned to exercise due diligence in future assignments.
Sections Used:
Section 255(3) – Companies Ordinance, 1984