Law: Banking Companies Ordinance, 1962

Section: 41, 42

(a) Banking Companies Ordinance (LVII of 1962)------- Ss.41 & 42---BCD Circular No. 13, dated 20-6-1984---Introduction of the Circulars by State Bank of Pakistan---Islamisation of Banking System in Pakistan---Commencement of transitional period-- Judgment by Supreme Court in case of Dr. M. Aslam Khaki reported as PLD 2000 SC 225-- Applicability---Laws by which the Banking business was to be conducted was set moving from the year 1962, and a concrete law was enforced from 1-1-1985---BCD Circular No.l3, dated 20-6-1984, had stated the transitional period given to the Banks for the purpose of transition from old system of banking into the Islamic System of Banking---Contention that the judgment by the Supreme Court ix case of Dr. M. Aslam Khaki would be operative from the date mentioned in it as regards the banking transition was repelled. Dr. M. Aslam Khaki v. Syed Muhammad Hashim PLD 2000 SC 225 ref. (b) Banking Companies Ordinance (LVII of 1962)------- Ss.41 & 42---BCD Circular No. 13, dated 20-6-1984---BCD Circular No. 32, dated 26-11-1984-- Islamisation of banking system---Constitution of Shariat Board--?Object and purpose ---Shariat Board was to arrange for exchange of information for the evaluation of the practice and for providing guidance of successfully managing the Islamic economy---Islamic economy is in its totality the economy of the country and laws in respect of, not only the banking but also in other aspects which included interest being charged by other institutions, payment to various Banks and other such-like transformation---Supreme Court in its judgment in the case of Dr. M. Aslam Khaki PLD 2000 SC 225 had given period of transformation. Dr. M. Aslam Khaki v. Syed Muhammad Hashim PLD 2000 SC 225 ref. (c) Banking Companies Ordinance (LVII of 1962)------- Ss.41 & 42---BCD Circular No. 13, dated 20-6-1984---BCD Circular No. 32, dated 26-11-1984-- Islamisation of economy--?Judgment by Supreme Court in case of Dr. M. Aslant Khaki reported as PLD 2000 SC 225---Effect of the judgment on BCD Circular No.13, dated 20-6-1984 and BCD Circular No. 32, dated 26-11-1984---Supreme Court in the judgment gave various aspects of law for…