PESHAWAR, July 4: The company judge of Peshawar High Court on Monday convicted the former chief executive of Islamic Investment Bank (IIB) charged with obstruction in sale of the bank property in the liquidation process, and sentenced him to one month imprisonment with a fine of Rs3,000.

Justice Dost Mohammad Khan convicted Nadeem Anwer on three counts under different sections of Pakistan Penal Code and sentenced him to one month imprisonment under each of the three sections. The court directed that his prison terms should run concurrently.

The court had ordered liquidation of the bank on May 18, 2009, after the bank turned bankrupt and had appointed Barrister Mudassir Amir as official liquidator for that purpose.

During hearing of the liquidation process on June 6, a bidder Aftab Lateef had agreed before the court to purchase a hotel in Rawalpindi, Rawal Hotel, which belonged to the bank in return of Rs63 million. The court had directed him to submit the call deposit and on next date on June 20 his bid and that of another bidder would be opened.

On June 20, the said bidder did not turn up following which his arrest warrants were issued by the court. Later, he filed an application wherein he claimed that he was still interested in purchasing the property but the former chief executive had threatened him in that regard.

The court conducted summary trial of the accused ex-chief executive under section 184 (obstructing sale of property offered for sale by authority of public servant), 186 (obstructing public servant in discharge of public function) and 188 (disobedience to order of public servant) of PPC.

The company judge also ordered attachment of a property acquired by another bidder who failed to deposit the outstanding amount to the tune of Rs45 million in the allowed duration. The said property included 80 flats in F-11 sector of Islamabad.

In this regard the court issued directives to the senior civil judge and senior superintendent of police, Islamabad, to handover possession of said property to the official liquidator. The court adjourned hearing of the case to July 29.

Meanwhile, the court also adjourned hearing of a criminal complaint filed by the Security and Exchange Commission of Pakistan (SECP) requesting the court to try the bank management and directors involved in negligence and excesses which had resulted in the bankruptcy of the bank. The bank was facing deficit of around Rs2 billion.

As some of the lawyers representing the accused-directors could not appear, the hearing was adjourned till Aug 19.

Due to closure of the bank the monthly profits as well as encashment of matured deposit certificates of the depositors have been stopped for the last many years.

Most of these depositors, belonging to Khyber Pakhtunkhwa province, were living on the monthly profits from their deposits as their only source of income and have now been passing through hard times.

It may be recalled that an accountability court had also convicted bank chief executive Nadeem Anwer and several others in a reference filed against them. However, the Islamabad High Court had suspended their sentences following which they were released from prison.

The convicted officials have also filed application before the company judge contending that their trial by the judge amounted to double jeopardy, which was prohibited under the Constitution.