Section 255

Seizure of documents by registrar, inspector or investigation officer.—(1) Notwithstanding anything contained in Code of Criminal Procedure, 1898(Act V of 1898) or any other law including Banking Companies Ordinance (Act LVII of 1962) the registrar, inspector or investigation officer, as the case may be, upon information in his possession or otherwise or during investigation, has reasons to believe that documents, books and papers or anything relating to any company or any chief executive or officer of such company or any associate of such person or is useful or relevant to any proceedings or investigation under this Act which is required or may be destroyed, mutilated, altered, falsified or secreted, the registrar, inspector, or investigation officer after obtaining prior permission of the Commission, signed by one Commissioner, without warrants, enter such place and cause a search to be made at any time freeze, seize or take possession of and retain any document, object, article, material, thing, account books, movable or immovable property or cause any account, property or thing to be maintained in specific manner.

(2) For the purposes of sub-section (1), the registrar may, after he has obtained the permission from the Commission under that sub-section (1), may also authorise any officer subordinate to him, not inferior in rank to an assistant registrar to enter, with such assistance as may be required, the place where he has reasons to believe that any of the items referred in sub-section (1) are kept;

(a) to search that place; and

(b) to seize any of the items referred in sub-section (1) as he considers necessary.

(3) The registrar shall return the items seized under this section as soon as may be and, in any case, not later than thirty days after such seizure, to the company or, as the case may be, to the chief executive or any other person from whose custody or power they were seized:

Provided that the Commission may, after providing to the company an opportunity to show cause against the order proposed to be made by it, allow the registrar to retain the items seized for a further period not exceeding thirty days:

Provided further that the registrar may, before returning items as aforesaid, take copies of, or extracts from them or put such marks of identification thereon as he considers necessary.

(4) Where, the registrar, inspector or investigation officer, as the case may be, has apprehension that any person or occupants of any place to be searched may create hindrance, resist search, or such document or thing is not known to be in the possession of any person, or where general search is required for the purposes of any proceedings, inspection or investigation under this Act, or any person will not or would not produce any document or thing as required by the registrar, inspector or investigation officer in any proceedings, inspection or investigation under this Act, a search-warrants from the concerned Magistrate

may be obtained.

(5) The registrar, inspector or investigation officer after obtaining warrant under sub-section (4) may conduct search of such person and enter any place and seize any property, material, document or thing required under this Act or is associated with commission of any offence under this Act or administered legislation and Magistrate while issuing orders under this section may also direct local police, authority or any agency to provide necessary assistance to such person.

(6) The registrar, inspector or investigation officer executing the warrants shall comply and proceed in manner provided in the Criminal Procedure Code 1898(Act V of 1898) including sections 102, section 48 and section 52:

Provided that any proceeding under this section shall not be vitiated or called into question for non–observance of any requirement of Section 103 of the Code and shall be admissible in the Court of law.

(7) Notwithstanding anything contained in sub section (3) in case of seizure of any property, material or thing by the investigation officer, in relation to any offense under this Act or administered legislation or scheduled offences, may retain any property, material, document or thing seized under sub-section (1) or (5) which is a case property and produce the same as and when required during the trial in accordance with law.

(8) Where the Commission has reason to believe that proceeds of crime of any offence under this Act or administered legislation, it may pass an order to freeze account, securities and any other moveable property or part or parts thereof for not more than thirty days.

(9) Any person aggrieved of the seizure, freezing or retention by the investigation officer may approach the Court and obtain order for release of such accounts, securities, movable or immovable property, things or material seized or retained, after expiry of thirty days of such seizure or freezing order by the inspector or investigator under sub-sections (1), (5) or (8), if it can satisfy the Court that such property, accounts, securities, material or thing is not associated with any offence under this Act or any administered legislation and Court while passing order of release may impose such restriction and condition as deemed necessary.

Explanation I.—For the purposes of sub-section (8) the expression “Court” means the Company Bench of the High Court having jurisdiction where registered office is situated, in case of company or any connected person and in all other case, it will be the Company Bench of the High Court having territorial jurisdiction over area where the search has been conducted under this section.

Explanation II.—For the purposes of this Act, the expression “administrated legislation” shall have the same meaning as provided in clause (aa) of sub-section (1) of section 2 of the Securities and Exchange Commission of Pakistan Act, 1997 (XLII of 1997).