ISLAMABAD, June 7: The Supreme Court was informed by the UBL counsel on Friday that the controversy about interest on the loans extended by the banks was the creation of those big industrialists who after obtaining huge loans from the banks, rush to the courts that they were being asked to pay Riba which was un-Islamic.

The proceedings in the Riba case, which were marred by unruly scenes on Thursday, remained peaceful on Friday. The office of the Supreme Court had asked all those who wanted to attend the proceedings to produce their identity cards for entering the court room.

At the very outset of the proceedings, Ismail Qureshi advocate, representing Jamat-i-Islami, apologised for the unruly scenes in the court on Thursday. He, however, alleged that the government agencies were involved in the incident to pave the way for in-camera trial.

Raja Akram, counsel for the UBL, stated that verses of Holy Quran which ordained that those involved in Riba business, were in fact in war with Almighty God and his Holy Prophet, were applicable only to deprived persons.

To support his argument that charging of interest on the loan extended by the banks was not un-Islamic, the counsel referred to Tarjuman-i-Quran by Maulana Abul Kalam Azad.

At this juncture, Chief Justice Sheikh Riaz observed that tafseer by Maulana Azad was not complete and only covered 17 Paras of Holy Quran.

The counsel replied that it made no difference for him as the commentary of Sura Al Baqra was complete to which he wanted to refer.

He said that Holy Quran enjoined upon the Muslim not to charge Riba and also encouraged write-off of the loan extended to the deprived person. He said that application of the Quranic verses was only confined to the deprived classes and not to all transactions.

He stated that the court, while deciding the case, did not consider this aspect on which prominent religious scholars had commented and held that increase of any kind on the loan extended, no matter what was its size, was Riba.

Raja Akram then referred to Tafseer-ul-Quran by Sir Syed Ahmad Khan, who also said that verses concerning Riba related to deprived persons and not for the industrial loans extended by the modern banks.

He said those who were leading luxurious life, riding Mercedez Benz, living in palatial houses, have flats in London, when asked to return the hard-earned money of the depositors which they had borrowed from the bank, rush to the courts, saying that banks were forcing them to act in violation of Islamic injunctions which prohibited payment of Riba.

The counsel argued that equating those who borrow huge amounts from the banks for setting up industries with those who get it for personal needs, could not be allowed.

Justice Dr Allama Khalid observed that the principle which was laid down for the oppressed was also applicable to all transactions.

The counsel then referred to Maulana Abul Ala Moududi’s book on interest. The counsel stated that Maulana Moududi said that Riba was not defined by Holy Quran and its possible explanation was that it was common in Arab that everybody knew that.

The counsel stated that according to Maulana Moududi, the Holy Quran prohibited what was in vogue in Arab. The counsel stated that in Arab it was common that if somebody borrowed money, he would agree to pay a certain amount at a certain date and if the borrower failed to repay at the specific date, the amount of return would be doubled or tripled.

The counsel said that Holy Quran commanded in clear words that Muslims should not charge double or triple times, and if the intent was for general application, it could have been explicitly ordained that no amount should be charged on the borrowed money.

The counsel, at the end of proceedings on Friday, stated that he would continue his efforts to show to the court that the application of verses of Holy Quran relating to Riba was only confined to deprived persons.

The counsel was still on his feet when the court adjourned the hearing till Monday.

However, an announcement by the government that President Pervez Musharraf would embark on a three-day visit to Saudi Arabia and UAE from June 10, is likely to delay the hearing of Riba case as the Chief Justice would become the Acting President.

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