KARACHI: Hearing a suit filed by M/s  Saif Trade Service versus Federation of Pakistan and Collector Adjudication suspended the impugned judgment passed under section 23C(4) of the Foreign Exchange Regulation Act (FERA) 1947 ordering attachment bank accounts of the petitioner company and further ordered that no-service action shall be taken till next date of hearing fixed to be after summer vacations.

The SHC bench earlier heard Mr.Shahab Imam Advocate, counsel for plaintiff and submitted that an amount of US $ 2,875,838 has been stuck up in the shape of consignments exported to UAE and Colombo (Sri Lanka) as payment of exported consignments are due against importers who are unable to pay the same.

The adjudicating authority however imposed a penalty of rupees 17,500,000. The order was challenged and stay application was also filed which is pending, the counsel told the bench adding that Lahore High Court has already struck down the sub section 4 of the section 23-C declaring the same as unconstitutional and violative of fundamental right of the petitioner Writ Petition No 36748 of 2022 titled Jan Muhammad Tayyab versus Federation of Pakistan & Others.

The bench allowing the plea by plaintiff counsel suspended the order of attachment and ordered issuance of summons and notices to the defendants for a date after summer vacations of the court.