Bank

Receivable amount was written off by debiting it in the Profit & Loss account as expenditure with the nomenclature 'provision for bad debts'

Validity

No reason existed for disallowance of claim of bad debt for the "banks

Only criteria was adoption of rules fixed by the State Bank

If there was no deviation of the Prudential Bank Regulation, the claim of bad debts could not be disallowed

Since it was not the case of the Department that there was deviation, the claim of bad debt of the banks were allowed in full by the Appellate Tribunal.

Rule 9, Banks (Nationalization) Payment of Compensation Rules, 1974, which provides for reckoning of interest from the date of acquisition of the shares and its annual payment and the procedure of payment of interest and provisions referring to interest, are repugnant to Injunctions of Islam

Shariat Appellate Bench of the Supreme Court directed that instead of merely deleting the word "interest" from the various clauses of R.9, a new Rule should be framed on the lines indicated by the Court ensuring effective enforcement of prohibition of interest in future

Return of the profit relatable to the shares to be managed through Shariah compliant modes

Shairat Appellate Bench of Supreme Court directed that the law shall cease to have effect from 30-6-2001.

Bank Business-Bank-Securities bought below face value-Conversion to other securities at par-Surplus-Whether income or capital gain

principles applicable.

Bank -Letters addressed to "Manager" of Bank are properly addressed to the Bank.