SC restores Tahir Mahmood as acting chairman SECP

Lahore: The Supreme Court of Pakistan has restored Mr. Tahir Mahmood as acting chairman of the Securities and Exchange Commission of Pakistan, setting aside the May 31 order of the Sindh High Court.

In a brief order, passed by Justice Jawwad S. Khawaja here on Friday, the learned court noticed that the Sindh High Court suspended the notification of Mr Tahir Mahmood as the SECP’s acting chairman without hearing the present petitioner Tahir Mahmood and even the federation, which had issued the notification on April 26.

The court was hearing the appeal filed by Mr Tahir Mahmood to vacate the impugned order of SHC against the acting chairman of SECP in a civil petition filed by Rana Mustafa Yousaf, an SECP employee.

While reviewing the order of the SHC, the honorable judge learned that it is apparent that

the civil petition was filed on May 31, as an urgent petition and was heard on the same day and no notice had been issued to the SECP. “Considering that the notification dated April 26 has been suspended without hearing the federation and Mr Tahir Mahmood (petitioner herein) who was working as the SECP acting chairman, it is appropriate to set aside the impugned order. Consequently, the impugned order of May 31 is set aside, stated the court order.

However, the Supreme Court remanded back the matter to the Sindh High Court and asked that the same shall be decided after hearing the parties and in particular the petitioner Tahir Mahmood.

 

The SECP argued in the court that Mr Tahir Mahmood is the only commissioner who has been appointed as Commissioner SECP from within SECP on the basis of his expertise, seniority, experience and eminence and all the other commissioners are from the market. The court also informed that he is the most senior official in SECP.

 

Moreover, Justice Khawaja wondered as to how a relatively junior Islamabad-based employee of the SECP flew to Karachi to file the urgent petition seeking a stay order against the acting chairman. The petitioner also filed fake residential affidavit in the SHC.

Rana Mustafa was also present in the courtroom and upon being questioned by Justice Khawaja, he stated that he is a deputy director and posted at the SECP head office in Islamabad. He also confirmed that he is a resident of Islamabad. When asked by the judge why in these circumstances and also bearing in mind that the head office of the SECP is in Islamabad and the notification of April 26 had also been issued in Islamabad, what compelled him to fly to Karachi and file a petition in the Sindh High Court. Did you have an ulterior motive for filing the petition in the SHC, which based on wrong facts? The court asked Mr Mustafa. He was unable to give any satisfactory answer.

Justice Khawaja said that the court would deal with the matter very strictly and that he may have to go to jail for attempting to abuse the court.

The court in its order also stated that prima facie a false address has been furnished by Rana Mustafa Yousuf Khan in the High Court of Sindh. The judge directed ordered his office to create a separate file and the same be numbered. This separate matter shall be dealt with independently because prima facie it does appear that the process of the court might have been abused by Rana Mustafa. However, at his request and in the interest of justice, he is given one week’s time to submit his written reply. For this separate matter, the case shall come up for hearing on June 25.