Gulzar Ahmad Khan Vs. Province of Punjab.

P L D 1992 Federal Shariat Court 535

Before Tanzil-ur-Rahman, CJ., Abaid Ullah Khan and Nazir Ahmad Bhatti, JJ GULZAR AHMAD KHAN and 2 others---Petitioners

versus

PROVINCE OF PUNJAB and others---Respondents

Shariat Petition No.80/L, 82/1, of 1991 and 1/L of 1992, decided on 30th June, 1992.

National Industrial Cooperative Finance Corporation By-laws--

---- By-law 3(6)---Constitution of Pakistan (1973), Art. 203-D---Repugnancy to Injunctions of Islam---By-law 3(6) of National Industrial Cooperative Finance Corporation Limited to the extent "to draw interest thereon" was repugnant to Injunctions of Islam---Authorities concerned were directed to suitably amend the said provision of law within six months, failing which same shall cease to be effective as on and from 31st December, 1992.

Dr. Mehmoodur Rahman Faisal and others v. Secretary, Ministry of Law, Justice and Parliamentary Affairs Government of Pakistan, Islamabad and others PLD 1992 FSC 1 fol.

Syed Afzal Haider, for Petitioners (in all the Petitions).

Maqbool Elahi Malik, A.-G. (Punjab) with Maqsood Ahmad for Respondents (in Shariat Petition No. 1/L of 1992).

Nabeel Sarwar for the Cooperative Board for Liquidation, Punjab.

Date of hearing: 30th June, 1992.

JUDGMENT

TANZIL-UR-RAHMAN, CJ.---These are three Shariat Petitions involving the same questions as to the repugnancy of by-law 3(6) of the By-laws of the National Industrial Cooperative Finance Corporation Limited, in so far as it relates to the levy and charge of interest on the ground that `the same is repugnant to the Injunctions of Islam as laid down in the Holy Our'an and Sunnah of the Holy Prophet. The by-law reads as under:

Objects:--

3.The objects for which the Corporation is established are:--

(1)To extend loans, advances, credit or other financial facilities to members of the Society and on the demand of members to arrange for them outside finance or credit from various sources including banks and financial institutions upon the guarantee or the securities.

(2)Deleted.

(3)Deleted.

(4)Deleted.

(5)To purchase and sell appliances of the art and manufactured goods.

(6)To buy, sell, transfer, assign, endorse, pledge or otherwise negotiate Government securities of the legitimate investment of the surplus funds of the Corporation for its shareholders or depositors or general public without incurring any financial responsibility, to draw interest thereon and to do all other things incidental to such business."

2.In view of the detailed judgment pronounced by this Court in Dr.Mehmood-ur-Rahman Faisal and others v. Secretary, Ministry of Law, Justice and Parliamentary Affairs Government of Pakistan, Islamabad and others P L D 1992 FSC 1, the sub-by-law (6) of by-law 3 of the National Industrial Cooperative Finance Corporation Limited, challenged here in the petitions to the extent "to draw interest thereon" is declared repugnant to the Injunctions of Islam as laid down in the Holy- Qur'an and Sunnah of the Holy Prophet.

3.The concerned authority is directed to suitably amend the said provision of law within six months, failing which it shall cease to be effective as on and from 31st of December, 1992.

M.BA./720/FSC ????????

Petition accepted.