Law: Companies Ordinance, 1984

Section: 224,222

Law: Securities and Exchange Commission of Pakistan Act, (XLII of 1997)

Section: 33

Companies Ordinance (XLVII of 1984)--Ss. 224 & 222 Security and Exchange Commission of Pakistan Act (XLII of 1 997), S.33 Appeal before Appellate Bench of the Commission Trading by Chief Executive of Company Detection of tenderable gain from return filed by appellant under S.222 of the Companies Ordinance, 1984¬Contention of appellant was that purchase of shares was made in good faith and in satisfaction of debt previously contracted Validity Appellant had taken contradictory stance Appellant's voluntary commercial decision of entering into a settlement and purchase of shares, which he was not legally bound to honour, could not be termed as acquiring a security in satisfaction of a debt Mala fides of appellant was evident from the fact of having availed of the buy back facility @ Rs.10, when its market value was @ Rs.18 Appellant had failed to prove from record his assertion that profit made from such transaction was tendered to company in form of interest free loan and subsequently waived off the same If only purchase of shares had been made, it would have been a different situation, but the manner of purchase and sale of shares clearly showed that the same had been done to gain profits, which was not lawfully tendered to company Plea that statutory period had lapsed was also not correct Appellate Bench of the Commission finding no merits in the appeal upheld the impugned order. ORDER This is an appeal against the order (impugned order), dated 25th July, 2001 passed by the then Executive Director (SM), whereby Mr. Tariq Baig, Chief Executive of Messrs Tariq Glass Industries Limited formerly Messrs Nasir Siddiq Corporation, (Pakistan) Limited (the "Company") to tender Rs.2,260,000 (Rupees two million two hundred sixty thousand only) to the Securities and Exchange Commission of Pakistan being tenderable gain as provided under section 224(2) of the Companies Ordinance, 1984 ("the Ordinance"). 2. The brief facts, leading to the filing of the appeal are that on examination of return in Form 32 made as at 28 5 1994, filed by the appellant with the Corporate Law Authority (now dissolved) in pursuance of the requirements of section 222 of the Ordinance an amount…

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