PESHAWAR, Oct 4: The Peshawar High Court has suspended arrest warrants issued by the Federal Ombudsman against the president and regional chief of Habib Bank Limited.

A two-member bench comprising Justice Nasirul Mulk and Justice Shehzad Akber Khan also admitted the plea for full hearing the writ petition of the HBL’s president, challenging an order of the Wafaqi  Mohtasib and the President  of Pakistan.

Advocate Abdul Rauf Rohaila appeared for the petitioner and argued that the order of the Ombudsman was against the law.

According to prosecution, Shams Khan had purchased foreign exchange bearer certificate (FEBC) worth Rs 462,000 on Sep 21, 1987 from the HBL, Peshawar Cantt Branch, which was subsequently purchased by Zafeerullah Khan, chief engineer, Civil Aviation Authority, Peshawar. He lost his suitcase on July 12, 1990 at the central railways station of Amsterdam (Netherlands).

His brother Col Abdul Hakeem Afghani approached the manager of the HBL Peshawar Cantt, informing that FEBC of Rs 462,000 had been lost. This complaint was forwarded to the head office of the HBL, however, in terms of FEBC rules, the State Bank of Pakistan had opined and directed that there was no need of circulating the number of stolen FEBC as they were bearer in character and could be encashed on presentation.

The owner of the certificates filed a complaint with the Ombudsman who after hearing the parties on Sep 5, 1991, directed that the bank should pay principal amount as well as profit accrued till the date of payment. The HBL filed representation to the President of Pakistan who vide order dated Jan 29, 2000, dismissed the representation.

Zafeerullah, filed a petition for implementation of the Ombudsman and President’s orders respectively. On that petition, the director general of the Ombudsman’s office issued arrest warrants of the president, HBL and regional chief of the NWFP on July 2, 2002.

Before the high court, Mr Rohaila argued that the Ombudsman had limited jurisdiction in terms of Article 2(2) of the Presidential Order No 1 of 1983 for the establishment of Ombudsman as it was only with regard to maladministration of any government department for which a complaint could be filed. He argued that no malice on the part of the HBL had been claimed and in fact the PEBC had been reportedly stolen and lost in Amsterdam due to the negligence the complainant.

He also contended that the FEBC were bearer in nature and could be encashed on presentation, therefore no claim whatsoever could be entertained. In support of his contentions, Mr Rohaila also referred to the notification SRO 575(I)/85 dated June 6, 1986, stating that no claim should be acceptable in case the bonds were stolen, lost, destroyed or mutilated.

After hearing his argument the court admitted the petition for full hearing and suspended the arrest warrants.