Supreme Court of Pakistan has barred National Accountability Bureau fromtaking action in the certain financial cases.
The three-judge bench led by Chief Justice Umar Ata Bandial in its orderalso said that under Section 31-C, the accountability court cannot takecognisance, under the NAB Ordinance, of an offence against an officer or anemployee of a bank or financial institution for writing off, waving,restructuring or refinancing any financial facility, interest or mark-up,without prior approval of the SBP.
“Under Section 31-D, no inquiry, investigation or proceedings in respect ofimprudent loans, defaulted loans or rescheduled loans can be initiated orconducted by NAB against any person, company or financial institutionwithout reference from the SBP governor.
“Unlike Section 31-C that relates to only taking cognisance of an offenceby the accountabilitycourt, Section 31-D provides protection even against initiation of inquiry,investigation or proceedings against a person or a company in respect ofimprudent loans, defaulted loans or rescheduled loans. The protectionprovided under Section 31-D is, therefore, broader and more expansive.
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“Admittedly, the Azgard Nine Limited (ANL) had defaulted on the loansextended by multiple financial institutions, and it was that default thatled the ANL and the financial institutions to enter into Debt Swap andMaster Restructuring Agreements, under which the loans were restructuredand as a consequence, the servicing of the debt to the financialinstitutions stood rescheduled.”
