Law: Provident Funds Act (XIX of 1925)

Section: 2 , 5 , 6

Provident Fund Act (XIX of 1925)--- ----Ss. 2, 5 & 6---Pakistan Insurance Employees Provident Fund Regulations 1954, Regn. 14(5), (6)---Constitution of Pakistan (1973), Art.203-D-- Repugnancy to Injunctions of Islam ---Vires of Ss.2, 5 & 6 and Regin.14(5), (6) Pakistan Insurance Employees Provident Fund Regulations. 1954, on the touchstone of teachings of Islam---Provident Fund---Ownership---Subscriber being owner of Provident Fund was authorised to make increase/ decrease in the monthly instalment only; could nominate a person or persons and confer the right to receive the amount standing to his credit in the Fund in the event of his death---Muslim subscriber as per provision of Regn.14(5), Pakistan Insurance Employees Provident Fund Regulations, 1954, has been authorised to accept or reject interest on the amount of Provident Fund, subscriber, while drawing advance from his account in the Fund, same would be recovered from him in the specified number of instalments and after principal of the advance had been fully repaid interest would be paid thereon at the fixed rate---Muslim subscribers whose deposit in the Fund carried no interest, would not, however, be required to pay into the Fund any additional instalments on account of interest on advances granted to them from the Fund---Conditions relating to Provident Fund being well-known to subscriber, he had every authorization to change or modify his option in every respect---Stipulation of interest which forms part of the interest was open to subscriber for acceptance or rejection-- Provident Fund was a portion of subscriber remuneration deferred in his/her own interest according to the mutually accepted contractual agreement; it was a sort of loan to be paid by the Government and subscriber had the option to accept or reject interest thereon---Interest accrued on the Provident Fund would come under the definition of Riba and thus, impugned provisions of the Provident Fund Act, 1925 viz. Ss.2, 5 & 6 and Regulation related thereto i.e., 1.1(5)(6), Pakistan Insurance Employees Provident Fund Regulations, 1954, were declared to be repugnant to injunctions of Islam and were required to be amended in…