Law: Companies Ordinance, 1984

Section: 221

Companies Ordinance (XLVII of 1984)--Ss. 221(2) & 224 Companies (General Provisions and Forms) Rules, 1985, R.16 Securities and Exchange Commission of Pakistan Act (XLII of 1997), S.33 Making gain by purchase and sale of securities Failure to deposit said gain Appellant made gain in purchase and sale transaction as beneficial owner of 'Insurance Company "(Issuer)" Said, sale transaction resulted in gain of Rs.1,157,450.00 to the appellant, but same was not tendered to Issuer within period specified in S.224(2) of Companies Ordinance, 1984 Show cause notice was issued by Securities and Exchange Commission to appellant to show cause as to why gain made by it in the transaction, should not be tendered by it in favour of Commission as provided in S.224(2) of Companies Ordinance, 1984 -Opportunity of personal hearing was granted to appellant, but Commission being not satisfied by arguments of appellant, directed appellant to tender Rs.822, 974 to the Commission Appellant in his appeal against order of Commission had contended that Commission had misdirected itself in law holding that Joint Venture Agreement was not an agreement to sell as contended by appellant, but in fact was a sale agreement Appellant had further contended that another Insurance Company had given a "Put Option" in Joint Venture Agreement which it could exercise after two years from the date of execution of Joint Venture Agreement which would mean that sale transaction was completed on expiry of "Put Option" period of two years Claim of appellant was that purchase and sale transactions were not executed within six months as required by S.224 of Companies Ordinance, 1981 ¬Contention of appellant was repelled because that was only an option available with the other Insurance Company to sell back shares purchased by it In case that, option was indeed exercised by the other Insurance Company, that transaction would have amounted to a separate transaction Impugned order passed by Commission, could not be interfered with in appeal. ORDER The appellant mentioned above has filed this Appeal No. 14 of 2003 under section 33 of the Securities and Exchange Commission of Pakistan Act, 1997 before the…

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