In December 2008 the Lahore High Court dismissed the appeal of Attock Refinery against the SECP order, and the company filed an appeal against the LHC verdict, which has been decided recently by the Supreme Court. — File Photo
ISLAMABAD The Supreme Court of Pakistan has upheld the order the SECP passed more against the Attock Refinery over various irregularities more than eight years back.

The SECP order was issued in January 2002 by the executive director (Enforcement) after investigation into the affairs of the Attock Refinery Limited for allegedly transferring profits to its associated company--Attock Petroleum Limited-- through transfer pricing.

The SECP had said that the Attock Refinery obtained huge amount of subsidy of Rs1.4 billion during 1999-2001 from the federal government as its profits were guaranteed at the rate of 10 per cent of the paid-up share capital under import parity pricing formula.

The SECP had observed that there were several other serious irregularities and violations of the Companies Ordinance, 1984. It appointed a chartered accountant for a detailed investigation into the affairs of the Attock Refinery.

However, in December 2008 the Lahore High Court dismissed the appeal of Attock Refinery against the SECP order, and the company filed an appeal against the LHC verdict, which has been decided recently by the Supreme Court.

The Supreme Court Bench comprised of Justice Jawwad S Khawaja and Justice Khilji Arif Hussain.

The bench dismissed the petition of Attock Refinery and refused the leave to appeal. Justice Jawwad S. Khawaja observed, “We have gone through the record and have noted the recalcitrant attitude of the petitioner company, which, through dilatory tactics, frustrated the investigation of its affairs for the last nine years.

We also note that the Order dated 14.1.2002 has been passed by the SECP, after due consideration of all circumstances and for sound reasons, which have been recorded therein”.

“We have also been impressed by the thoroughness and professionalism with which the matter has been dealt with by the SECP. We are, therefore, of the opinion that considering the issues highlighted by SECP, the investigation of the affairs of the petitioner company must be undertaken”. The company itself should have no reluctance in joining the investigation, if it can explain and answer the significant and well founded questions, which have been raised by the SECP, the learned court observed.”

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