The Peshawar High Court (PHC) on Thursday nullified the State Bank of Pakistan’s (SBP) decision to revoke the license of Orient Exchange Company, directing the bank to process the company’s No Objection Certificate (NOC) application within 30 days.
A two-member bench, headed by Justice Syed Arshad Ali and Justice Qazi Jawad Ehsanullah, heard the case with the Ministry of Finance, SBP, and the Director of the Exchange Policy Department as respondents.
Petitioner’s Arguments
Counsels for Orient Exchange, Barrister Qasim Wadood and Babar Khan Yousafzai, argued that the company was the only Category B exchange firm in the province and had applied for a Category A license. They contended that the SBP cancelled the existing license without justification, violating the principles of natural justice, as the company was not heard before the punitive action.
The lawyers emphasized that the company met all eligibility criteria under the Exchange Companies Manual and requested directions to issue an NOC to operate fully.
SBP’s Defense and Court Verdict
The SBP argued that Orient Exchange failed to meet upgradation requirements and was not integrated into the new exchange company system.
However, the PHC observed that the SBP failed to provide sufficient justification for such a severe action. The bench ruled that failing the “fit and proper” test alone cannot justify extreme measures, especially without a fair hearing under Article 10A.
Citing Supreme Court precedents, the PHC held that SBP violated Section 24A, declaring its cancellation order null and void.
