Law:

Section:

State Bank of Pakistan B.C.D. Circular No.34 dated 26-11-1984-------Constitution of Pakistan (1973), Art. 199---Constitutional petition---Reduction in profit rate by the Bank---Petitioner/ investor, in the year 2000 made investment of Rs.2.00 million with the Bank in its monthly income scheme under "Profit/Loss Sharing System"---At time of making investment, petitioner earned a rate of profit of 9.0% on the Scheme earning Rs.16, 000 per month income without deduction of Zakat; thereafter from time to time Bank reduced profit rate, resulting in the year 2004 profit payment was diminished to Rs.4,463 per month---Plea of Bank was that it had informed the petitioner that Profit/Loss Sharing System' under which petitioner had made investment, did not contain any contractual commitment for a fixed or other rate of profit to be paid by the Bank on its monthly income Scheme and that profit rate on Profit/Loss Scheme' deposit accounts were declared by the Bank with the prior approval of State Bank of Pakistan in terms of its BCD Circular 34 date 26-11-1984---Petitioner had reiterated his basic point that it was contrary to reason that rising profits of the Bank should be reflected in declining profits rates on its Profit/Loss Scheme Accounts'---Petitioner had sought careful scrutiny of the record submitted, but had not raised any specific objection to the Bank's financial statements and P.L.C. profit rate calculated under BCD Circular No.34---Financial statement of Bank had shown that its profit after tax had risen considerably in the year 2004 and net mark up/interest income of Bank had also increased during the same period---Financial statements of the Bank did not provide specific and relevant information for the purpose of BCD Circular No.34 criteria and calculation---State Bank of Pakistan being author of BCD Circular No. 34 and its governing statutory authority, same played a regulatory role to ensure compliance of the circular, for the purpose of safeguarding investors' rights---High Court referred the matter to the State Bank of Pakistan to ensure that provisions and objectives of said Circular were duly met. JUDGMENT UMAR ATA BANDIAL, J.---In the year 2000 the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492