2013 PLP 1273 (CLD)

MAQBOOL BAQAR, J.

Applicant/accused, Syed Muhammad Furqan son of Syed Nasir Hussain, has through this application prayed for his enlargement on bail in Crime No.5 of 2012, registered at P.S. FIA, Corporate Crime Circle, Karachi, on 9-2-2012 for offences under sections 409, 420, 477-A, 109, 34, P.P.C. Brief facts of the prosecution case are that the applicant, who is a Director of Eastern Capital Limited, a brokerage house dealing in securities, ("The Company"), in connivance with the co-accused, namely, Munir Muhammad Ladha, Executive Chairman of the said company, Abdul Samad Ladha, Chief Executive Officer of the company, one Mudasir Iftikhar, the Karachi Stock Exchange Limited and four different banks as nominated in the F.I.R., have pledged the various shares of their various clients including the complainant, Aman Aziz Siddiqui, with the nominated banks, to secure certain finances obtained by the company, unauthorisedly and illegally. It is further alleged that the accused persons having defaulted in the repayment of such finances. The creditors nominated banks sold the said pledged shares in open market towards recovery of the amounts outstanding in respect of such finances. As per the ledger account of the complainant, Aman Aziz Siddiqui, maintained by the company various shares were purchased during the period from 1-7-2008 to 13-9-2009 but the same were not reflected in the CDC Sub-Account of Aman Aziz Siddiqui, most of the said shares were transferred to CDC Sub-Account No. 504, in the name of Abu Baker Siddique, one of the shareholders of the company and a brother of accused Munir Muhammad Ladha and Abdul Samad Ladha. It is further alleged that 50,000 shares, held by the complainant in "TRG", as reflected from CDC Sub-Account of the complainant, have been pledged with the banks directly from the said account which shares on account of default in the repayment of financial facilities obtained against such pledged were on 19-12-2008 sold by the creditor banks. As per Securities and Exchange Commission of Pakistan, the company has been declared a defaulter. It is stated that in terms of section 24 of the Central Depositories Act, 1997 a stock broker is not authorized to pledge shares with any bank/financial institution and/or Stock Exchange without authorization from the sub-account holder. Such restriction is also imposed by section 16(c) of Securities and Exchange Ordinance, 1969. It is further stated that the sub-account in the name of the complainant was opened by the company on 30-2-2000 who is the registered member of Karachi Stock Exchange and also a registered broker of SECP. The learned counsel for the applicant submits that the applicant was a paid employee of the company and was working for the company as General Manager, Human Resources and Administration and has through letter dated 15-12-2008 resigned from his job with the company. The learned counsel submits a photocopy of such letter with acknowledgement of receipt bearing a seal of company. He also submits before us a photocopy of Interoffice Memo dated 2-1-2009 from ECL, purportedly signed by accused Munir Muhammad Ladha. The learned counsel also submits a print out, downloaded from the site of Securities and Exchange Commission of Pakistan, (Securities Market Division), showing the shareholding of the applicant in the company as 0.02% with 650 shares, out of total shares of 4,030,

000. The learned counsel submits that presently the applicant is serving with National Logistics Cell as Senior Manager (HR) on a fixed salary of Rs.65,000 per month and submits a photocopy of a certificate issued by National Logistics Cell and the relevant salary slip in support of his claim. According to the Investigating Officer, the applicant was arrested on 31-3-2012 and has remained in the custody of FIA upto 11-4-2012 whereafter he is in judicial custody. The I.O. candidly admits that none of the witnesses, whose statements have been recorded by him under section 161, Cr.P.C., have alleged any personal involvement of the present accused in the entire transaction. He submits that he has not been able to lay hands on any document which may implicate the applicant directly. He, however, submits that as per the list of Directors, obtained by him from the record of the company the applicant is one of the Directors out of its five Directors. He further submits that the co-accused Munir Muhammad Ladha, Chairman/ Director and Abdul Samad Ladha, CEO/Director of the company are absconding. He further admits that all the relevant documents pertaining to the transaction/ scam in question have been signed and executed by the said two absconding accused only. It is also pertinent to note that neither the complainant has made any allegation against the accused nor the accused has been nominated by him in the F.I.R. However, in the challan the applicant has been nominated as a co-accused. Such, according to the I.O. has been done for the reason that the accused is a Director of the company. Syed Ashikue Raza, the learned Deputy Attorney-General opposes the request for grant of bail. He submits that a huge amount of more than Rs.5 million is involved in the present case. He submits that the company has in violation of legal prohibition pledged the shares of the complainant and their various other clients and that three of the accused are still absconding. As noted above, the applicant admittedly held merely 0.02% shares in the capital of the company, it seems that the applicant was merely a paid employee of the company. Though he has remained in the physical custody of FIA for about 11 days, nothing incriminating could be procured and/or discovered against the applicant. Admittedly, none of the documents pertaining to the case transaction have been executed and/or signed by the applicant. In the circumstances, it is essential to hold further inquiry into the guilt of the applicant, if any, in this case. We would, therefore, admit the applicant to bail, subject to his furnishing surety in the sum of Rs.10,00,000 (Rupees One Million only) and a surety bond in the like amount to the satisfaction of the Nazir of this Court. MWA/M-70/K Bail granted.