LAHORE /ISLAMABAD: A petition has been filed in the Lahore High Court (LHC) challenging the previous approval of providing interest-free loans to eleven judges of the high court.
The petition requested the court to declare the act as ‘unlawful,’ asserting that it violates the equity clause and code of conduct of the judges.
In his petition, the petitioner, Muhshkoor Hussain, contended that the actions of the respondents, which include the chief secretary, secretary S&GAD, secretary finance civil secretariat, and judges, amount to discrimination and inequality. He argued that these actions constitute a violation of Article 2-A and 25 of the Constitution.
Hussain contended, “The act of withdrawing interest-free loans by judges, who receive substantial salaries of Rs900,000, while the general public and even the poor are charged 22 percent interest on loans, is unethical, immoral, and unjustified.”
The judges of the Lahore High Court (LHC) had expressed their desire to avail themselves of interest-free loans equal to 36 times their basic pays for purchasing or constructing houses. Each judge has a basic pay of Rs912,862. Approval for granting the loan was given by the cabinet standing committee for finance, and two judges have already received interest-free loans amounting to Rs32.86 million each.
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The petitioner highlighted that the interest-free loan has been granted to several judges, and the loan amount is disbursed in one installment, to be repaid by deducting 25 percent of their basic pay on a monthly basis. Ultimately, the interest-free loan will be recovered over 12 years, even though some judges are set to retire sooner.
The petitioner underlined that there is no precedent for granting interest-free loans. Such loans, payable in installments from pension funds, have never been extended, neither to the general public nor to public functionaries. It’s essential to mention that the Pakistan central bank maintains a 22 percent interest rate.
Hussain emphasized, “The actions of the respondents and judges violate Article 2-A and 25 of the Constitution as they result in discrimination and inequality. While the general public, including the poor, are charged 22 percent interest on loans, judges with substantial salaries receiving interest-free loans is unethical, immoral, and unjustified.”
The petitioner further requested the court that if the loans have already been granted, they should be directed to charge interest at the rate applied to the general public. Additionally, he urged the court to prevent the granting of any more interest-free loans to judges in the future.
