Law: Foreign Exchange Regulation Act, 1947

Section: Ss. 5(1)(c), 23 & 20

Foreign Exchange Regulation Act (VII of 1947), Ss. 5(1)(c), 23 & 20-Resident in Pakistan making payment to another resident in Pakistan at behest of Pakistani residing outside Pakistan--- Not guilty in absence of State Bank's direction under S. 20. JUDGMENT   The appellant Muhammad Sharif son of Lal Din has been convicted by the learned Sessions Judge, Foreign Exchange Tribunal, Karachi under section 23 of the Foreign Exchange Act and sentenced to R. I. for 9 months in addition to a fine of Rs. 3,000, in default further R. I. for six months.   The trial Court framed a charge under section 5 (1) (c) read with section 23 of theForeign Exchange Act 1947, in that Muhammad had paid two sums of Rs. 2,500 and Rs. 250 to Muhammad Ramzan and Amir Khan at the behest of one Ghulam Rasul who according to the prosecution was a resident of Kuwait in the Persian Gulf outside Pakistan through one Ghulam Muhammad.   The circumstances that led to the prosecution of the appellant are that Agha AinulHasan, S. I. of Special Police, attached to the State Bank of Karachi, on the basis of infor mation regarding illegal business in Foreign Exchange, secured the sanction of the District Magistrate, Karachi and thereafter intercepted certain letters and receipts from the Saddar Post Office, Karachi. He also recorded the statements of Muhammad Ramzan and Amir Khan and submitted his report to the State Bank. On the basis of the report, a complaint Exh. 4-B was filed by Qamarul Islam Siddiqui, Deputy Assistant Controller of the State Bank of Pakistan, especially empowered in this behalf. This complaint was filed on the 2nd of June 1962. Four witnesses were examined in furtherance of the prosecution case, and they are Qamrul Islam Siddiqui, Agha Ainul Hassan, Amir Khan and Muhammad Ramzan. The relevant part of the statement of the appellant is Exh. 5 at page 20 of the Paper book in answer to whether he had paid two sums of Rs. 2,500 and Rs. 250 to Muhammad Ramzan and Amir Khan respectively at the behest of Ghulam Rasul and Hussain, resident of Kuwait of the Persian Gulf without the necessary permission. The appellant replied as under :-   "Ghulam Rasul while…