IN THE SUPREME COURT OF PAKISTAN 
        (Original Jurisdiction) 
 
 
 
 
 
Present 
 
 
Mr. Justice Jawwad S. Khawaja  
 
 
Mr. Justice Khilji Arif Hussain 
 
 
Constitution Petition No. 59 of 2011 and CMAs Nos. 326 and 633 of 2012 and 
Crl. O. P. 94 of 2012 in Const. P. 59/2011. 
(Petition under Article 184 (3) of the Constitution) 
 
Muhammad Ashraf Tiwana etc. 
 
 
.…   
Petitioner(s) 
 
 
 
 
Versus  
Pakistan etc.  
 
 
 
 
 …    
Respondent(s) 
 
For the Petitioner(s):  
Mr. Afnan Karim Kundi, ASC (in both cases) 
 
 
 
 
Assisted by Barrister Momin Ali Khan (Advocate) 
 
 
 
In Const. P. 59/2011:  
 
For respondents-1&3:  
Mr. Anwar Mansoor Khan, Sr. ASC 
 
 
 
 
Mr. Naveed Akhtar, S.O. Finance Division 
For respondents-2,5&6: 
Mr. Muhammad Akram Sheikh, Sr. ASC assisted by 
 
 
 
 
Barrister Sajeel Sheryar and 
 
 
 
 
Ch. Hasan Murtaza Mann (Advocates) 
For respondent-4: 
 
Mr. Salman Akram Raja, ASC assisted by  
 
 
 
 
Malik Ghulam Sabir Advocate 
 
 
 
 
Mr. Sameer Khose Advocate 
 
 
 
 
Ms. Aneesa Agha Advocate 
 
 
 
 
Malik Ahsan Mehmood Advocate 
 
 
 
 
Ms. Zainab Qureshi Advocate 
 
 
 
 
 
In Crl. O.P.94/12: 
For respondent-1: 
 
Mr. Anwar Mansoor Khan, Sr. ASC 
For respondent-2: 
 
Mr. Muhammad Akram Sheikh, Sr. ASC 
Amicus Curiae:  
 
Nemo 
For SECP: 
 
 
Mr. Muzaffar Ahmed Mirza, Dir. Litigation. 
Date of Hearing: 
 
09.04.2013 
 
  
 
 
 
 
ORDER 
 
 
Jawwad S. Khawaja, J. This petition has raised important questions of public 
importance relating to the enforcement of fundamental rights guaranteed in Chapter I 
of Part II of the Constitution. The salient aspect of this petition relates to the 
functioning and governance structure of the Securities and Exchange Commission of 
Pakistan (SECP) which is the apex regulator inter alia, of the corporate sector and the 
capital markets of the country. 
2. 
Over the course of several days, we have heard and noted in detail, the 
submissions of learned counsel representing the parties. For reasons to be recorded we 
hold, declare and direct as under:- 
3. 
That:- 
(a) 
the selection and appointment of respondent No. 4 namely, 
Muhammad Ali Ghulam Muhammad as Commissioner and 
Chairman SECP does not meet the requirements of the Securities and 
Exchange Commission of Pakistan Act 1997 (the SECP Act); 
(b) 
as a consequence, the notification No. SRO 21 (KE)/2011 dated 24th 
December 2010 appointing Mr. Muhammad Ali Ghulam Muhammad 
as Commissioner and Chairman SECP is set aside; 
(c) 
      the Federal Government shall, without delay, make appointments to 
statutory positions in SECP which meet the requirements of the 
SECP Act including Sections 5, 6 and 7 thereof, in a credible, 
rigourous, transparent and open manner, through a selection and 
appointment 
process 
undertaken 
with 
due 
diligence 
and 
deliberation which manifestly and demonstrably ensures that the 
appointees meet the requirements of law as enunciated by 
precedent, including mutatis mutandis, the principles of law 
determined in the case of Muhammad Yasin vs. Federation of Pakistan 
(PLD 2012 SC 132); 
(d) 
       the insertion of section 5(5) in the SECP Act through the Finance Act 
2003 was violative of the Constitution and in particular Article 73 
thereof;  
(e) 
  Clause 3(1) of Chapter 11 of the SECP Service Rules (HR 
Handbook), which allow for termination simpliciter (without cause) 
of employees of SECP, is ultra vires the Constitution and inter alia, the 
SECP Act; 
(f) 
the above Clause must be replaced appropriately by provisions 
ensuring due process and adherence, inter alia to Articles 9, 10A, 14, 
18 and 25 of the Constitution and which are consistent with the 
provisions of the SECP Act ensuring independent and objective 
decision making without fear or favour, required of an independent 
regulator; 
(g) 
the prayer in the petition for striking down the order dated 13.6.2011 
terminating the employment of the petitioner is disallowed as not 
pressed, but without prejudice to his rights/remedies, if any, before 
a competent forum in accordance with law; 
(h) 
respondent No.1 (Federation) and respondent No.2 (SECP) shall bear 
the costs of the petitioner.   
4. 
A copy of this Order shall be sent to each member of the Securities and 
Exchange Policy Board for action deemed appropriate by said Board in relation to the 
governance structure and decision making policies of SECP as per requirements of the 
SECP Act and for consideration on issues of policy-making highlighted by the present 
petition and for the effective performance of the Board’s functions under the SECP Act, 
particularly section 21 thereof. The Board having, inter alia, the duty to “oversee the 
performance of [SECP] to the extent that the purposes of the [SECP] Act are achieved”, shall 
look into this petition and documents placed on file and after making such further 
inquiries as may be deemed appropriate by it, submit within 45 days, a report as to the 
performance of the SECP.   
5. 
A copy of this Order shall be sent to the Secretary, Ministry of Finance to enable 
the Federal Government to remain compliant with the law and legal principles 
enunciated by this Court, in terms of Article 189 of the Constitution. The Secretary 
(Finance) shall also look into this petition and documents placed on file (including 
those filed by the Ministry itself) to examine wrongdoings/shortcomings, if any, within 
the Ministry and the decision-making processes of the Federal Government under the 
SECP Act. A report in this respect shall be submitted in Court within 45 days.    
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Judge 
 
 
 
 
 
 
 
 
 
 
 
 
 
Judge 
Islamabad, the 
 
Announced on 12.4.2013. 
A. Rehman 
 
