Law: Special US Dollar Bearer Bonds Rules, 1998

Section: R-2

special US Dollar Bearer Bonds Rules, 1998----Rr. 2, 3 & 10(3)---State Bank of Pakistan EDMD Circular No.9, dated 15-6-2002---Constitution of Pakistan' (1973), Art.199---Constitutional petition---Purchase of Special US Dollar Bearer Bonds---Re-investment in bonds on maturity thereof on expiry of fixed term---Purchaser's claim for redemption bonus of 5% on maturity of reinvested bonds---Refusal of authority to accept such claim---Validity---Bonds on maturity were encashable at purchaser's discretion either in Pak Rupee or US Dollars---Denominations of bonds was in US Dollars and interest payable was based on London Inter-Bank Offer Rate (LIBOR), which applied to US Dollars and not to Pak Rupee---Reinvestment was neither a continuation of original contract nor the same transaction, but would amount to encashment of bonds on maturity in Dollars followed by a fresh contract for reinvestment in US Dollars under fresh conditions not providing for payment of bonus on encashment of bonds in Pak rupee---Purchaser on reinvestment was entitled to LIBOR plus 2% and enjoy tax exemption, which was a higher rate of profit as compared to prevailing rate of profit on sale of Special US Dollar Bonds---Purchaser had chosen second incentive on maturity of bonds i.e. to obtain amount in US Dollars---Impugned action was neither discriminatory nor hit by promissory estoppel---High Court dismissed constitutional petition. Chambers 20th Century Dictionary; The New Shorter Oxford English Dictionary; Oxford English Dictionary (1982); I.A. Sherwani and others v. Government of Pakistan 1991 SCMR 1041 rel. Tradex (Pvt.) Limited v. Governor, State Bank of Pakistan 2003 CLD 756; Messrs Dadabhoy Cement Industries Limited v. Messrs National Development Finance Corporation 2002 CLC 166; Habib-ur-Rehman alias Rehman alias Raja Bottal v. The State 1992 SCMR 1625 and Messrs United Kashmir Flour Mills (Pvt.) Ltd. Company v. Government of Azad Jammu and Kashmir 2003 YLR 2835 distinguished. (b) Words and phrases--- ----"Reinvest" and "reinvestment"----Meaning. Chambers 20th Century Dictionary; The New Shorter Oxford English Dictionary and Oxford English Dictionary (1982) ref. JUDGMENT ZIA PERWAZ,…

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