1. Yousaf and Bashir have discussed plans to start a few businesses together.

One idea is to open a restaurant with Saqib and Nasir. Y intends to attract college age students who
are health and fitness minded to the restaurant. Y has been inspired by a chain of restaurants Fit N
Fast that specializes in health fast food and drinks with a counter for calculating calories and carbs at
the time the food is ordered. This is a very successful chain of restaurants from Denmark and is
gaining popularity in Europe and USA. Y wants to bring this idea to Pakistan.
The second idea is to start manufacturing wood furniture and deal in antique wooden furniture.
Rashid and Jibran are interested in joining in on this venture. Rashid has experience in making
furniture and until recently he had a “karkhana” which is now closed due to destruction by fire.
Jibran was recently in London for attending an employers conference and realized the potential in
trading antique wooden furniture to certain countries including U.K.
a. Suggest what type of entity is best suited for these activity for startup in Pakistan.
b. What options are available for bringing Fit N Fast to Pakistan? Suggest the most suitable way for
introducing it in Pakistan.
c. Suggest the mode in which Yousaf and Bashir will maintain control of the two separate businesses? (10)

2. The State Bank of Pakistan has issued an SRO in December 2020 that only men with beards can be
appointed as CEOs and CFOs of any company registered with the SECP under the Banking Companies
Ordinance if the company is using the words “Islamic”, “shariah” or “shariah compliant” in any of its
communication to the public at large.

In February 2021, SBP sent a notice to Bank-Fallah-hu-naas, who were offering Islamic Banking and
Shariah compliant products, to explain why they have not complied with the SRO. The bank did not
reply and SBP sent a subsequent notice to the bank and cancelled their licence. Address the
following issue

a. Identify the possible breach of fundamental rights in this case.

3. Read the following articles:
a. https://www.dawn.com/news/1624104/a-dose-of-truth
b. Critically evaluate the justification provided for waiver of IP protection in TRIPS as argued by the LDCs at
the WTO. Do you agree? Why?
c. In your opinion, USTRs change of stance at the WTO proceedings is serving the overall abidance of a strict
IPR regime? (15)
4. Read “ Judicial reforms and economic growth” and answer the following questions:
a. The Article was published in March 2012. In your opinion do the proposed reforms for the judicial system
by the author seem relevant today and why?

To achieve this, non-discriminatory and impartial application of law, enforcement of contracts, protection of
property rights and speedy disposal of cases are necessary.

(i) Ensuring broad based access to justice;

This proposed measure is still relevant today, because the poor still don’t get the privilege granted to the rich
of the country. The privileged class has the option to manipulate the result of the case whereas the poor is
required to pay a hefty amount and wait for a long time for the outcome of the case.

(ii) Revision of outdated procedures and laws;

Absolutely relevant today also, because of the mundane procedures and outdated laws, it is a perception that
Pakistan does not have a just legal system.

(iii) Use of modern technology in case management;

 Pakistan has started efforts to modernise its judiciary. Our justice system lags behind in the utilisation of
technology in judicial department. The first step towards modernising the judiciary has been taken by the
Islamabad High Court and the Lahore High Court by introducing an online case management system; out of
this the IHC case management system is more advanced.

Mobile applications have been launched which will allow lawyers and litigants to get updates about cases on
their mobile phones. These app users will be able to search for cases using individual case numbers, party
names, respondent names and names of the advocates.

Users will also be able to check the daily cause list. This will not only facilitate lawyers and litigants, but
will also ease the workload on clerical staff. Such an online case management system should also be
introduced by the high courts of other provinces.

However, officials of the judiciary should be mindful that the online case management system is not the end,
but rather the start of the journey towards an e-judiciary system. Further steps should be taken to use
technology in the modernisation of the judiciary.

(iv) Encouragement of Alternative Dispute Resolution (ADR) mechanisms,

ADR’s are better because it helps the businesses resolve conflicts quickly, ADR’s should be encouraged
because it saves time and money both.

(v) Tracking and enforcement of National Judicial Policy 2009;

The key features of the National Judicial Policy are strengthening the independence of the judiciary by its
separation from the executive and ridding the courts of the menace of corruption, thereby presenting a clean
and positive image of judiciary. These features include:

Independence of Judiciary

Misconduct - The Judges of the superior courts should follow the Code of Conduct prescribed for judges.
They should take all steps necessary to decide cases within the shortest possible time

Eradication of Corruption

Expeditious Disposal of cases

(vi) Directing the Special Courts and Tribunals to abide by the deadlines for the disposal of cases.

Only if there is a proper system and leadership where the subordinate courts have a deadline to follow, only
then, the court proceedings might become faster.

b. In view of the Rico diqq case and the combed cotton yarn case what are the two most important reforms
suggested by the author.

 Revision of outdated procedures and laws;

The most important law that needs updating is the Land Revenue Act to make it more germane to the
modern demands. For the Riko Deq case, the major problem was that the Baluchistan government said that
the land belonged to the Baluchi people and when TCC applied for mining rights, they were denied and so
TCC appealed in the ICSID and the ruling was in favour of TCC and Pakistan had to pay 6 billion dollars in
damages which was originally 11 billion dollars.

An investor will part with his financial savings and share his expertise and experience only when he is
assured that the firm will make profits.
c. Propose an update to this article for publishing next week. (15)

Judicial reforms and economic growth

The banking system cannot work if willful defaulters obtain stay orders from courts and bank loans remain
stuck.

Ishrat Husain March 16, 2012

Growth rates in Pakistan since 2008 have declined to almost half of the level achieved in the preceding four
years. The investment ratio in 2010-11 has been the LOWEST IN THE HISTORY OF PAKISTAN. Most of
the discussion on the stagnation and decline of the economy has rightly focused on fiscal deficits, energy
shortages, inflation, and high interest rates. But the relationship between the rule of law and investment and
business development is not much talked about in popular discourse. In the absence of a conducive legal
environment, uncertainties created by other factors such as political instability, security, law and order,
energy, etc., would make matters worse. But a well-functioning judicial system can reassure the investor and
act as a countervailing force to these other negative attributes. AN INVESTOR WILL PART WITH HIS
FINANCIAL SAVINGS AND SHARE HIS EXPERTISE AND EXPERIENCE ONLY WHEN HE IS
ASSURED THAT THE FIRM WILL MAKE PROFITS. To achieve this, non-discriminatory and impartial
application of law, enforcement of contracts, protection of property rights and speedy disposal of cases are
necessary.

The recent judicial activism and suo motu actions by the Supreme Court and High Courts have done a
GREAT DEAL OF GOOD IN ESTABLISHING A NEW EQUILIBRIUM BETWEEN THE EXECUTIVE,
PARLIAMENT AND THE JUDICIARY. This movement while commendable, should not distract the
attention from the more mundane tasks of (i) ensuring broad based access to justice; (ii) revision of outdated
procedures and laws; (iii) use of modern technology in case management; (iv) encouragement of Alternative
Dispute Resolution (ADR) mechanisms, (v) tracking and enforcement of National Judicial Policy 2009; (vi)
directing the Special Courts and Tribunals to abide by the deadlines for the disposal of cases. These
measures will have a more lasting impact on the economic governance of the country and help remove some
of the obstacles in the way of investment and equitable economic growth.

Access to judiciary is limited to only those who can afford good lawyers and pay their enormous fees and
expenses. Unequal access to justice is one of the main factors that perpetuates the patronage capacity of
politicians and, in turn, leads to poor economic governance. Feudalistic ethos that pervades our governance
structure cannot be altered until all citizens are treated equally by law. Today, it is only the rich who can
manipulate the system to their advantage.

The laws governing economic transaction, such as the Contract Act, the Evidence Act, the Registration Act,
the Transfer of Property Act, and the Stamp Code, were made in the 19th or 20th century. They are not only
deficient, defective and outdated but in some instances their applicability is limited. The most important law
that needs updating is the Land Revenue Act to make it more germane to the modern demands. Land use for
industrial, commercial and agricultural purposes is critical to the production of goods and service. Land
disputes on title and possession in both, urban and rural areas, form the bulk of civil litigation at the local
levels with appeals escalating all the way to the Supreme Court. The process of adjudication is not only
tedious, cumbersome, expensive but time consuming. Transparency of land sales through clear land titles
and market-based transactions would reduce the volume of litigation and promote efficient use of land —
both urban and rural.

CASE LOAD management in our courts, particularly at the lower level is ridden with inefficiencies. For the
last decade, an attempt is being made to manage the load through a transparent computerised system but the
results have been sporadic. Unless the top judicial leadership assigns a strict deadline, there is little chance
that it will be completed. Rigorous supervision of the lower courts and taking penal actions against non-
performers and rewarding those who are quick and fair in disposal of cases should be institutionalised.
While we all rightly criticise the informal jirgas, sardari practices and Qazi Courts, the fact remains that we
have been unable to extract the essential ingredients of these informal systems and enrich the formal legal
systems. The uprising in Malakand Division was inspired by the mullahs who contrasted the speedy and
expeditious justice of the Shariah Courts in the days of Wali of Swat, with the established judicial system
applied in the area since the merger of Malakand in the province of Khyber-Pakhtunkhwa. The Federal
Board of Revenue had implemented an Alternative Dispute Resolution mechanism until 2008. As soon as
the new government took power it abolished the mechanism rather than fixing its defects and weaknesses to
make it more effective. Small Causes Courts and properly functioning village level Masalahit Committees
and other means of ADR can take a lot of load off the present congestion in our courts and also provide
access to justice at very little cost.

A ray of hope appeared in 2009, when the NATIONAL JUDICIAL POLICY (NJP) was announced. The
policy made some very radical pronouncements such as that cases relating to banking and different taxes and
duties such as income tax, property tax, etc., should be decided within six months. All stay matters should be
decided within 15 days of grant of interim injunction. Rent cases should be decided within four months in
trial courts and appeals within two months. Cases regarding suits upon bill of exchange, hundies or
promissory notes should be decided through summary procedure within 90 days.

The banking system cannot simply work if willful defaulters obtain stay orders from the courts and bank
loans remain stuck. Even where the courts have decided cases in favour of the lenders, the execution of
decree takes a long time. The same is the case with income tax, sales tax, and customs pendency. Special
Courts are either without judges or some of their judges do not have full competence over the specialised
laws and regulations. The cases are adjourned and remain undecided for decades. The NJP should involve a
more proactive monitoring mechanism.

As one of the leading Pakistani lawyers has so aptly commented that the English model –– on which the
CODE OF CIVIL PROCEDURES (CPC) 1908 was based –– was discarded even in England, a long time
ago. The English model “preferred form over substance on account of this fundamental flaw, litigations
continue in Pakistan for decades while lawyers squabble over issues of virtually no consequence. In each
litigation there is a lawyer seeking justice for his client and an opposing lawyer who will very successfully
prolong and delay the litigation, while liberally drawing upon various dilatory provision of CPC. Knock outs
on the basis of hyper-technicalities and the causing of abnormal delays are, in fact, appreciated and
considered ‘assets’ and ‘qualities’ of astute lawyers.”