The federal government has designated five high courts as special courts to handle offenses under the Companies Act, 2017, and other related legislation.
The federal government has officially designated five high courts as special courts under Section 37 of the Securities and Exchange Commission of Pakistan (SECP) Act, 1997. These special courts are empowered to try offenses under the Companies Act, 2017, and other administered legislation within their respective jurisdictions.
On July 24, 2024, the Ministry of Law and Justice informed the Cabinet about the reallocation of business related to the administration of Special Courts and Tribunals under federal subjects. This reallocation assigned the responsibility to the Ministry of Law and Justice. Following this, the Chief Justices of the concerned high courts gave their concurrence to notify these special courts and banking courts under Section 37 of the SECP Act, 1997.
The Ministry of Law and Justice provided the following details to the Cabinet regarding the designated high courts:
Special Court for offenses in banks, Islamabad Special Court for offenses in Quetta Special Court for offenses in banks, Karachi Special Courts for offenses in banks (I & II, Lahore) and Special Court for offenses in banks, Multan Banking Court I, Peshawar
The Ministry of Law and Justice cited Section 37 of the SECP Act, 1997, which outlines the jurisdiction and authority of these special courts. According to Section 37:
No court other than a court of sessions shall take cognizance of any offense punishable with imprisonment or a combination of imprisonment and fine under the SECP Act or any administered legislation, except on a complaint by an authorized officer of the Commission. The Federal Government, in consultation with the Chief Justice of the concerned high court, may notify any other court presided by a session judge or equivalent to take cognizance of such offenses.
In case of a transfer from a court of sessions, it will not be necessary to recall any witness or re-record evidence. The court to which the case is transferred will continue the proceedings from the previous stage.
After a brief discussion, the Cabinet approved the proposal from the Ministry of Law and Justice. The proposal, titled “Designation of Special Courts (Offenses in Banks) and Banking Courts to Try Offenses under Section 37 of the Securities and Exchange Commission of Pakistan Act, 1997,” received unanimous approval.
The designation of these high courts as special courts is a significant step towards enhancing the legal framework for handling corporate offenses in Pakistan. By empowering these courts to handle offenses under the Companies Act, 2017, and other related legislation, the government aims to streamline the judicial process and ensure more efficient handling of corporate cases.
The business community and legal experts have welcomed this move, recognizing it as a positive step towards improving the corporate regulatory environment in Pakistan. The establishment of special courts is expected to expedite the resolution of corporate disputes and ensure better enforcement of corporate laws.
With the notification of these high courts as special courts, the government has laid the groundwork for more effective enforcement of corporate regulations. This initiative is expected to bolster investor confidence and contribute to a more robust business environment in Pakistan.
