139/2010 Suit Nasim Beg (Plaintiff) V/S The Securities and Exchange Commission of Pakistan (Defendant)

139/2010 Suit Nasim Beg (Plaintiff) V/S The Securities and Exchange Commission of Pakistan (Defendant) Sindh High Court

Bench: Hon'ble Mr. Justice Nazar Akbar Order Date: 28-APR-14

Specific Relief Act (I of 1877)--- ----Ss. 42 & 54---Companies Ordinance (XLVII of 1984), S.224(2)---Discretion of court as to declaration of status or right---Bar to such declaration---Trading by director, officers and principal shareholders of a company---Show-cause notice under S.224(2) of the Companies Ordinance, 1984---Suit for declaration and permanent injunction challenging issuance of show-cause notice to plaintiff by the Securities and Exchange Commission of Pakistan (SECP), under S.224(2) of the Companies Ordinance, 1984---Maintainability of such suit---Contention of the plaintiff was inter alia that he had not realized any tenderable and/or other gain and was not therefore liable to tender any amount under S.224 of the Companies Ordinance, 1984---Held, that declaration sought by plaintiff was not in respect of any legal character of the plaintiff---Very fact that plaintiff had submitted a detailed reply to the show-cause noticed issued by the SECP, was contrary to his claim in the plaint and in the said reply plaintiff had not claimed that the defendants had acted illegally, in a mala fide way or that they were not competent to issue impugned notice under S.224 of the Companies Ordnance, 1984---Fact that plaintiff had submitted to the jurisdiction of the SECP unconditionally amounted to accepting jurisdiction of SECP to issue notice under the Companies Ordinance, 1984---Plaintiff should have appeared before the competent authority for personal hearing, which he had avoided---Plaintiff had not sought declaration as to his own rights and status; and declaratory relief could only be granted in respect of legal character which was not under threat in the present case---Plaintiff was therefore neither entitled to declaration or permanent injunction---Suit being incompetent and not maintainable, was dismissed in circumstances.