PIONEER INSURANCE COMPANY LTD. Versus CONTROLLER OF INSURANCE

1. AJMAL MIAN, CJ. --This petition is directed against the order of respondent cancelling the licence of the petitioner's company which was operating as an Insurance Company. The reason for filing of the above petition is that at present the appellate Tribunal before which appeal is competent has not been duly constituted inasmuch as its Chairman has not been appointed. The petitioner has also filed an appeal which is pending for adjudication but no interlocutory order could have been passed for want of the appointment of the Chairman. It is, therefore, contended by Mr. Hasan Feroze learned counsel for the petitioner, that since there is no competent Tribunal functioning the only remedy available to the petitioner is in the form of the present petition. But the fact remains whether the matter before this Court in exercise of constitutional jurisdiction can be more suitably dealt with by an appellate Tribunal. In our view, it will be just and proper to dispose of the above petition in the following terms:

(i) The respondent will not act upon the impugned order till the expiry of one week from the date of taking over charge by the Chairman of the Tribunal in order to enable the petitioner to obtain an interlocutory order.

(ii) That during the intervening period from now till the expiry of the above one week from the date of taking over charge by the Chairman of the Tribunal, the Petitioner may operate but subject to the condition that they will deposit half of the premium to be received by them in a separate account to be opened which will not be touched by the petitioner till the order of the Chairman of the Tribunal and they will furnish security of the remaining half of the amount of the premium which they had received during the months of December, 1988 and January, 1989 to the satisfaction of the Nazir of this Court.

(iii) The petitioner shall furnish a copy of the statement of the issuance of the new insurance policies and all the receipts of the premium weekly to the respondent. The first 'statement will be given on 13th February, 1989.

(iv) That a sum of Rs.327,241. 01 has been released by the State Bank out of the compulsory security amount of Rs.350,000 in connection with the Execution Application No.lll/87 pending before a learned Single Judge of this Court as a security for contesting the Execution Application, and therefore, a sum of Rs.40,395.99 is lying with the State Bank of Pakistan. The petitioner shall ensure that a total sum of Rs.350,000 is deposited by them including the above balance amount within the statutory period of two months from 26-2-1989 failing which it will be open to the respondent to take action against the petitioner in accordance with law and this stay will stand vacated if it will be operating by them.

2. The petition stands disposed of.

3. H.B.T./P-114/K

4. Order accordingly.