Monday, 24 August 2020

 Politics and politicians

Games played:

(1) Use of slogans;
(2) Game of Communal ism:
 (3) Use of beliefs:and :
(4) Regime shift and tidal waves.

Tools Used:

Land reforms,
Business Reforms and:
 Administrative reforms. 
(5) Centralization of Power.
(6) Use of Organized Crimes.
(7) Media Control.
(8) Interference in other organs of state:
(9) Games for Global Governance:
    Infra Government control:
    Supra National Control:
    Regional Government's control:
   Trans National Control

 Camino Winds :

 by John Grisham (A Novel)

This novel talks about the world of Global Crimes and its intensity. The characters described in the novel are living ones and can be observed easily in our daily life.
The antagonists are the criminals who earn millions of dollars and hide their proceed of crimes through a maze of shell companies. Hired killers are used to eliminate those who challenge these criminals.
The author is of the view that criminals have no morals and they work for their own motives .
The novel revolves around Nursing Home business and its fraudulent transactions.
According to the author we live in a world which is full of informers,snitches ,whistle blowers and rats
. The main motive behind killings , as per author , is to punish those who cause hurdles in their business deals.
Money earning being the motive of bad guys hence one finds confronted with espionage activities, contract killings and the use of spy services. The strength of beautiful women is used as these animals know how to seduce the wanted people.
These spy services recruit typical ex-servicemen who are used to not responding to authority, they cheat their bosses
.An enjoyable work."

 Organized Crime:

Causes?

Economic Failure,Corruption,Unemployment,low standard of living and reliance on underground markets provides stimulus for the growth of organized crimes.

How It Works:


It is a continuing enterprise that rationally works to profit from illicit activities that are often in great public demand.

Structure:


These organized groups have three types of structure namely, economic business type relationship,hierarchical organization structure, ethnicity or religious based groups .

Examples of these crimes:


Gambling,extortion,gun running, money laundering and counterfeit goods violence ,assault and murder, financial crimes, white collar crimes, drugs,human and sex trafficking

Founder:


El Capone of Chicago fame

Effects:


These crimes cause significant damage to the world's financial system through its subversion, through illegal activities.

Weapons of Attack:


Combating Criminal impunity
Money Laundering Control
Evidence based drug policy
Learning from anti terrorism efforts
An independent International Data Ban

 Title: Aleph By Paulo Coehlo

Novel Theme and Review


The theme of the novel is "Love" which according to the author by its nature overcomes hate and reduces conflicts. It is his belief that the force of love is the ultimate healer.
The author explains the character of conflicts and their nature. He asserts, for one's growth presence of conflicts in one's life is necessary; The intensity of conflicts,explains the author, reduces over a period of time and that moment ushers a new era in one's life.
He emphasis to practice mindfulness, these practices bring state of awareness which as per author,help us to understand what is happening in the present moment.
This awareness helps one to know what he should avoid in difficult times: beware that mindfulness protects from all the evil forces.
Author draws reader’s attention towards the 'philosophy of begging' which is a necessary tool for bringing change, in fact it makes one more innovative and open.
As per author existence of love has given a cause to find an answer to the mystery of life. Author is of the view that past and future only exist in our minds, whereas the, present moment exists outside the time zone and is known as eternity.
Karma according to him is not an act committed in the past, it is indeed what one does now to redeem the past.

Friday, 22 November 2019

Azimuddin Law Associates info@azimuddinlawassociates.com

NEWS, VIEWS AND LAW NOTES Volume 1. December 2019. Number 3 Editors: ADLA Staff

LAW NEWS:

Oregon Bar USA is considering grant of licensing
without a law degree
WTO News and Views

 WTO Appellate Body issues report in respect
of Brazil on its measure concerning Taxation
and charges.
 WTO Appellate Body releases its report on
Korea regarding Anti-Dumping Duties on
Pneumatic valves from Japan. 
 WTO issues panel report on India on its Export related measures. 





In this issue  News:  Law News  WTO News and Views       Public Opinion: What People expect from lawyers.  Essay:  Appeal Rights in Civil Matters.  Essay Review: The Cost of Corruption  Ideas: How to Build Resilient Law Firm Leadership.  Book Review: Game Changing Attorney  New Developments Views of California Court of Appeal on: Contracts, Criminal Law, Employment and Property Law  Recent Cases: International Tribunal on the rule and rights of an investor. Supreme Court of Pakistan Explains What Constitutes Terrorism. 

2




PUBLIC OPINION

What People Need from Lawyers
“Let justice be done though the heavens may fall.” That is the
Lawyers Credo and that is what lawyers do: It is evident from
history that lawyers have fought for justice. Lawyers fashion the
framework of government and build the institutions that are the
bulwark of free people. Leadership is thus the glory of profession
of law. That is why the voices of lawyers are needed more than
ever.
Whatever one’s beliefs are, lawyers stand concerned about
the polarization of societies that is, dividing the nations? 
Lawyers usually are concerned when public officials mock
the foundations of a country or use racially charged rhetoric that
tears apart the fabric of society. 
3

The truth is that public needs lawyer’s wisdom. They need
lawyer’s expertise. They need lawyer’s ability to see both sides of
an issue, to find common ground, and to bring people together. 
Lawyers are under an obligation to teach their fellow
citizens why societies need an independent judiciary and unbiased
political administration in order to support the view why pluralism
and tolerance are national heritage, and the source of strength. 
Appeal Rights in Civil Mattes

Appealing a Court Decision:

Where an individual or a body corporate feels aggrieved
with a court’s decision or order or decree, one can appeal against
the said order to a higher court.1 An appeal is the judicial
examination of the decision given by a Lower Court.2 The higher
                                             
 1 Right to appeal is statutory and substantive right. It is not merely a procedural right. Statutory right means that it is conferred by a statute.  2 Appeal is an application or petition to a higher authority or a court of law for reconsideration of the decision of a lower authority or an inferior court of law. It is an application or a proceeding for review to be carried out by a higher tribunal of a decision given by a lower one. An appeal is one in which the question is, whether the order of the court from which an appeal is brought was correct on the materials presented before the lower court.” See, Bhil Kanji Bhagwan v. Bhil Karsan Bijal: 2003 GLH (23) 385. 
4

court may allow or reject the appeal or even can impose a harsher
penalty3. 
Appeals:
The Code of Civil Procedure 1908, prescribes the rights,
obligations and procedure for filing the appeals in civil matters.4
An appeal lies against an original decree, appellate decree or an
order. These appeals can be filed within the prescribed time limit 5. 
Nature of an Appeal:
An appeal is a continuation of the dispute between the parties. An
appeal is required to be in the form of a memorandum
accompanied by the copy of decree or order appealed against.6 
Who can Appeal?
As a general principle, no one can appeal unless: (i) one is a
party to the proceedings or was treated as such; (ii) one is the                                               
 3 It would, therefore, be appropriate to get a legal advice before opting for an appeal.  4 In Sections 96 to 111 read with Order XLI to XLV of the Civil Procedure Code, 1908. Order XLI to XLII provide procedure for institution of appeals both from original and appellate decrees.   5 See Limitation Act, 1908. Generally period provided for filing an appeal is one calendar month.  6 Provisions of order XLI to order XLII of code of Civil Procedure, 1908 provide detailed procedure, and the way how the appeals are to be conducted.
5

legal representative of the plaintiff or defendant, (iii) one is privity
in estate, title or interest and the same is apparent on the face of
the record. A person having a legal grievance, which might have
deprived him of the benefit or bound by the order passed, is
entitled to the right of appeal.7 
An appeal can be preferred by any of the following persons:
 Any party to the suit adversely affected by the decree8, or
order, and where such party is dead, by his legal
representative.9
 Any transferee of the interest of such party, who, so far as
such interest is concerned, is bound by the decree10.
Waiver of one’s right to appeal
If a party agrees not to appeal or waives his right to appeal, he
cannot file an appeal and will be bound by an agreement if
otherwise such agreement is valid. Such an agreement, however,
                                             
 7 In case of doubt as to the existence of the right of appeal, the appellant may get a benefit of doubt. 8 Hafiz Mohamud v. Swamp Chand, (1942) 2 Cal 434. 9 Gajadhar v. Ganesh, (1871) 7 BomLR 149 10 Provided that his name is entered on the record of the suit. 
6

must be clear and unambiguous. Whether a party has or has not
waived his right of appeal depends upon the facts and
circumstances of each case. Similarly, where a party has accepted
the benefits under a decree of the court, he can be estopped from
questioning the legality of that decree. In Dexter’s case the court
observed: “It startles me that a person can say the judgment is
wrong and at the same time accept the payment under the
judgment as being right…. In my opinion, you cannot take the
benefit of a judgment as being good and then appeal against it as
being bad.”11 
But an agreement between the parties not to file an appeal is
valid if it is based on lawful or legal consideration and if otherwise
it is not illegal.
Appeal against ex-parte decree
                                             
 11 Dexters Ltd v. Hill Crest Oil Co. (1926) 1 KB 348
7

 Against an ex parte decree one has to file an appeal against such
a decree or order he may opt to file an application to set aside ex
parte decree.12
In an appeal against an ex parte decree, the appellate court is
competent to go into the question of the propriety or otherwise
of the ex parte decree passed by the trial court.
Whether or not an appeal lies against a consent decree
No appeal shall lie against a consent decree.13 This provision is
based on the broad principle of estoppel. It pre-supposes that the
parties to an action can, expressly or impliedly, waive or forgo
their right of appeal by any lawful agreement or compromise or
even by conduct. The consideration for the agreement involved in
the consent decree is that both the sides give up their right of
appeal.                                               
 12 See Section 96(2) of the Code of Civil Procedure, 1908. The only limitation is that appellant can be heard only on the merits of the case.  13 See Section 96(3) of the Code of Civil Procedure, 1908. Once the decree is shown to have been passed with the consent of the parties, Section 96(3) becomes operative and binds them. It creates an estoppel between the parties as a judgment on contest. Where there is a partial compromise and adjustment of a suit and a decree is passed in accordance with it, the decree to that extent is a consent decree and is not appeal-able. This provision, however, does not apply where the factum of compromise is in dispute or the compromise decree is challenged on the ground that such compromise had not been arrived at lawfully.

8

Appeal against preliminary decree
An appeal lies against a preliminary decree. Failure to appeal
against a preliminary decree, hence, precludes the aggrieved party
from challenging the final decree. 
Appeal against Orders
An aggrieved party can file an appeal against the judgment, where
a decree is not drawn up by the court.14
Representing the Appeal
One has a right to represent in the court of appeal, but one should
get legal advice about whether one has valid grounds to appeal. 
ESSAY REVIEW:
The Cost of Corruption  By Paolo Mauro, Paulo Medas, and Jean-Marc Fournier FD: IMF: September, 2019
An important article has been published in the latest issue
of FD, a publication of IMF in which the authors have described
the cost of corruption for a political society. The authors have
highlighted: the impact of corruption, how corrupt practices affect                                               
 14 See the provisions of Sections 104 and 105 of the Code of Civil Procedure, 1908.
9

the economies, the high spots for corruption, and the conclusions
from which policy makers can learn lessons. 
The authors emphasize on the costs of corruption as it leads
to decrease in tax revenue and causes social toll in different
directions. 
Noteworthy Points: The corruption can lead to:

 Substantial decrease in revenue collection.
 Overpayments for the purchase of goods and services.
 Distortions in spending priorities.
 Weakens the state’s ability to promote growth, as it drains
public resources away from being used for development. 
 Diminishing of the public trust in the government. 
The corrupt practices can cause:
 Unwanted tax exemptions
 Complex and opaque tax systems having discretion in the
hands tax officials.
 Reduction in revenue potential.
10

Following hot spots in this regard have been highlighted, where
possibilities of corruption are much higher:
 Oil and mining industry 
 State owned enterprises
 Discretion in the hands of top decision making authorities
 Procurement policies of the Government: 
Georgia’s Case
 The authors highlighted the case of Georgia which took
effective steps to decrease the corruption. Resultantly, the
reduction in corruption lead to: increases in tax revenue,
and tax compliance culture and these healthy policies
increased the government’s capacity to introduce welfare
oriented projects.
Lessons for policy makers: Defining the high risk areas which may include: 

 Government procurements
 Revenue administration
 Management of natural resources
11

 In-effective internal controls to check corrupt practices 
 Hiring of effective professionals who possess strong ethical
values 
The authors have emphasized that it is the duty of the
government to restore the confidence of the people in the state. 
IDEAS:
How to build resilient law firm leadership
Resilient leadership requires people to cultivate three
qualities, namely, (i) Authentic connection, (ii) Values, and (iii)
grounded optimism. 
An Authentic Connection
It is not about fitting in (having to conform to be admitted
into a group), it is about belonging (being able to show up
imperfectly and being accepted). How connected we feel to those
in our work lives can make a difference in our ability to absorb and
release the stress in a healthy way. Daily interactions make a
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critical difference in times of challenge and change when teams
must engage in hard conversations and difficult choices.
Values
All law firms have an established set of guiding principles or
values, whether they are memorialized or not. Those values must
be applied consistently, regardless of whether they are managing
up, managing down, or working peer-to-peer. The Resilient
leaders:
 Professional value into behaviors 
 Apply those behaviors consistently across the firm
Grounded Optimism
Grounded optimism and a healthy acceptance of mistakes
make us better, healthier thinkers. Managing a challenge or
change in responsive, thoughtful ways reduces stress for
everyone. Accordingly one has to practice grounded optimism,
and to have a healthy relationship with mistakes
13

[Source: How to build Resilient Law Firm Leadership by Renee
Branson].
BOOK REVIEW:
The Game Changing Attorney By Michael Mogill Published by Lioncrest Publishing [2018]

The Game Changing Attorney is an interesting and useful book. If
you are an attorney who wants to attract one’s ideal clients in the
new legal landscape of the modern solo or small firm practice,
then it is a must read. In order to distinguish your brand and
identity the same, the author offers real insight and valuable
advice. The book teaches what lawyers need to know in the light.
The book is often-funny, and presents a honest voice of Michael,
making it an enjoyable read.
For the business of law, the author tells you the importance
of the power of emotional connection. Any law firm owner, who
wants to learn how to grow their practice exponentially, the Book
is a must-read for him. 
14

For many years to come, the book will be a go-to guide for
to grow one’s law firm. There is no doubt about the fact that one
will grow his law firm if one follows the steps out lined in the
book. This book presents fresh, honest, insightful, and jam-packed
ideas for the growth of law firms.

NEW DEVELOPMENTS:

Developments in Law

1. Contract Law 
California Court of Appeal in the case of Magic Carpet Ride
v. Rugger Investment Group, considered the following
question:
“Whether a party substantially performed its contract
obligations is a triable issue of material fact that defeats
summary adjudication; a provision in the parties’ contract
making time of the essence does not automatically make a
defendant’s untimely performance a breach of contract
15

because there are triable issues regarding the scope of that
provision and whether its enforcement would result in a
forfeiture to the defendant and a windfall to the plaintiff.”
2. Criminal Law and Procedure
California Court of Appeal in the case of People v. Lucero,
observed as under:
“A declaration containing false testimony falls within the
ambit of a book, paper, record, instrument in writing, or
other matter or thing as used in Penal Code §134; the
statute does not differentiate between real and testimonial
evidence. A document does not need to be a forgery or
altered to support a prosecution under §134; the elements
of §134 and perjury by declaration under §118(a) do not
correspond.”
3. Employment Law 
16

California Court of Appeal in the case of McCormick v.
California Public Employees’ Retirement System, observed
as under: 
“Employees are eligible for a disability retirement under the
California Public Employees’ Retirement System pursuant to
Government Code §21156 when, due to a disability, they
can no longer perform their usual duties at the only location
where their employer will allow them to work, even if they
might be able to perform those duties at a theoretical
different location.” 
4. Real Property
California Court of Appeal in the case of Denham v. City of
Richmond (Sierra Club), observed as under:
“An initiative adopted by a city council created an
impermissible conflict within the city’s general plan by
17

amending the open-space element to prohibit residential
development that the land use element continued to allow;
a court may direct a city to correct inconsistencies in its
general plan when the inconsistency is created by an
initiative amending an existing plan.”
 [Source: LACBA Briefings, October 28, 2019]
Oregon Bar USA is considering grant of licensing without a law degree

The Oregon State Bar's board of governors took major steps
to liberalize rules around para-professional licensing and allowing
people without law degrees to sit for the bar exam.
The board of governors approved recommendations from
two separate bar task forces that are intended to increase access
to justice in the state. The first recommendation is for a Para
professional licensing program, allowing grant of licenses to
individuals to provide limited legal advice without a supervising
attorney.
18

For to qualify under the program, an individual would need
to be at least 18 years of age, holds a national certification exam,
and either have an associate’s degree from an approved or
institutionally accredited paralegal studies program or a law
degree or have 1,500 hours of experience as a paralegal under an
attorney’s supervision.
The most compelling argument for licensing
paraprofessionals is that the bar’s other efforts to close the
access-to-justice gap has continued to fall short. This program
intends to broaden the options available for persons seeking to
obtain legal services, while continuing to strive for full funding of
legal aid and championing pro bono representation by lawyers.
[ABA Journal, October 7, 2019]
RECENT CASES:
International Arbitration Award Cortec Mining Kenya Ltd v. Republic of Kenya  Case NO. ARB/15/09  Decided on October 22, 2019.

19

It was a matte where Tribunal was confronted with a legal
rule that under what circumstances an international
tribunal can seize jurisdiction to decide the matter
presented before it, and in what manner questions of
Investor compliance are reviewed? Through an
international arbitration award the Tribunal while deciding
the moot points considered the following important
principles of law:
 Where a mining license was obtained in violation of
domestic law, was it legal? 
 Whether or not they obtained rights are protected. 
 What are the effects of violations of domestic law?
 Whether or not a claimant is under burden to establish
jurisdiction under BIT and ICSID conventions. 
The Tribunal in this regard ruled that:
 An investor has to follow and meet substantial compliance
requirements prescribed by the host state. The Tribunal
20

case to the conclusion that issue of compliance with
domestic law was considered as central and focal point. 
 The investor has to establish that required licensing was
acquired in compliance with domestic law so as to make the
investment as protected one.
 The acquisition of licensing must not be an act of favor and
must meet all the required criteria. 
 Procedural defects are considered as violation. 
 Where an act was ab-initio void, it makes the investment
non-protected, as matter going out of the scope of Tribunal.
 International investment agreements only protect
investments made in compliance with domestic law. [see
Inceysa v. EL Salvadar, where the Tribunal found that it
lacked jurisdiction concerning an investment made in
breach of applicable law]15
                                             
 15 On the other hand where a government fails to discharge its burden of proof and it fails to show that the investor had violated the legality clause it had no case. 
21

 The purpose of international investment regime cannot be
to protect investment made in violation of the laws of host
state.
 There exists a requirements of due diligence on the part of
investor to ensure their activities comply with domestic law. 
 All agreements must be made in good faith.
 An investment like a licence (which is creative of the laws of
the host state) stands linked with an implied legality
requirement to the notion of investment under the ICSID
convention. 
 Where a license has been obtained in compliance with the
domestic law, it becomes a protected investment under BIT.
 Legal compliance issues are an evolving topic in investment
treaty making.
 However, a note of caution is that international arbitral
tribunals may have limited expertise to interpret domestic
legal requirements and it leads to a problem area in the
22

coordinated application of domestic and international
norms. 
SUPREME COURT OF PAKISTAN 

Anti Terrorism law, explained by the Supreme Court of Pakistan.
The court observed that the law prohibits possession of
inflammatory materials, and where the same is recovered from
the possession of an accused whether or not the same was
distributed, the act of possession of such inflammatory material
by itself is an offence within the framework of Anti-Terrorism Law.
[Qari Muhammad Ishaq Ghazi v. The State: 2019 SCMR 1646

Sunday, 22 September 2019

Azimuddin Law Associates info@azimuddinlawassociates.com

NEWS, VIEWS AND LAW NOTES
 Volume 1. October 2019. Number 2
Editors: ADLA Staff

 
NEWS

 WTO News and Views

Korea Anti-Dumping Duties challenge on Pneumatic Values from
Japan:
Appellate body of GATT dispute settlement mechanism has
issued on 10 September 2019 its final verdict on Korea Anti
Dumping duties on pneumatic values from Japan. The document
WT/DSS04/AB/R is available at WTO web. The decision though
upheld the panel’s findings, yet allowed partial relief to Japan in
certain areas. 
Safeguard Investigations on Flat-rolled Products
2

On 27 August 2019 Guatemala initiated safeguard
investigation in respect of flat-rolled products of other alloy steels
having a width of 600MM or more.
Such investigations seek to determine whether increased
imports of a product are causing or threatening to cause, serious
injury to the domestic industry. During safeguard investigations,
importers, exporters and other interested parties can present
evidence, views and respond to the presentations of other parties.
A WTO member can take a safeguard action (i.e. restrict imports of
a product temporarily) when the increased imports of the disputed
product are found to be causing, or threatening to cause, serious
injury to domestic industry.
Estate planning  Charitable Lead Annuity Trust (CLAT) Structure

The US Internal Revenue Service (IRS) has recently released
a private letter ruling approving a charitable lead annuity trust
(CLAT) structure that may prove useful in estate planning for high
net worth clients. In the case at issue, the taxpayer proposed to set
3

up a revocable trust where the trust would first pay certain debts
and expenses and then distribute the trust assets to other
individuals and trusts if the taxpayer predeceased his spouse.
Should the spouse die first, the trust would have paid the relevant
debts, made distributions to individuals and trusts and then
transfer the remaining assets to the CLAT, which would then pay a
5% annuity to the charity based upon the initial trust's fair market
value. The IRS approved this structure even though in most cases,
the CLAT must have a payout stream that lasts a predetermined
number of years to qualify for tax preferential treatment
(deduction of the present value of annuity payments for the
estate). Here, the IRS determined that it would eventually be
possible to calculate that specified payout term once the CLAT was
funded from the revocable trust after payment of debts, expenses
and distributions to other beneficiaries.
[Tax Facts on line]


4

ESSAY
Today and Tomorrow
 By Martin Wolf 
FD: IMF: JUNE 2019

In this article the author draws our attention towards global
changes such as shifts in global economic and political directions.
According to the author a transformation has also taken place in
the global power rivalry. The author notes the slowdown in the
process of globalization. According to the author technological
changes are also happening and affecting individuals, nations and
continents in a rapid manner. He discusses the financial fragility and
weak global demand. The climate change according to him is a
serious issue as well. 
IMF is confronting all these issues. The author outlines the
ways in which fund is moving for help and assistance where
required. The author believes that we are passing through a phase
of Economic Fragility and accordingly the IMF needs to work in the
following directions.
 Helping globalization to survive
5

 Meeting the challenge of unstable world economy 
 Serious engagement on the part of IMF to challenge the
ongoing problems confronting the global economy.
The author also draws our attention towards restructuring of
many of the functions and structure of the fund in the recent past.
According to him the fund has always been providing help and
assistance where necessary as the fund constantly adapts to the
confronting demands.
The author is, however, of the view that the world in general
and the fund member in particular should believe in funds
professionalism, and multilateralism and should help the fund in
seeking and extending the cooperation amongst its members in
order to successfully challenge the global economic problems.
Book Review:
International Law in World Politics By Shirley V. Scott

The book reflects a dramatically changing global context, and
introduces the actors, structures, processes, and issues of
6

international law. The materials in the book include: Current case
studies that bring the subject to life; through a chapter on
international courts and tribunals, more attention has been given
to trade and economic issues; the book also discusses contentious
topics such as Iran nuclear deal; Africa and the ICC, the Paris climate
agreement, rising tensions in the South China Sea etc. The book
effectively explains the role that international law plays in the arena
of world politics today.
The book discusses the following topics in details:
 Actors in international law. 
 States and non-state actors. 
 Intergovernmental organizations. 
 International courts and tribunals. 
 Structures and processes of international law. 
 Implications of a multilateral treaty and evolution of a
multilateral treaty regime.
 Human rights.
 The future directions of international law.
7

RECENT CASES
Principles of judicial review under article 184(3) of the Constitution laid down by the apex court: Ishaq Khan khakwani v. Railway Board PLD 2019. Supreme Court 602. 


-Art. 184 (3) – Power of Judicial review under Art. 184 (3) of the Constitution – scope – instances where the Supreme Court may exercise its power of judicial review stated. 

The Apex Court ruled, the scope of power of judicial review under
Article 184 (3) of the Constitution of Pakistan in the following
terms: 
I. Where acts or omissions on the part of State functionaries
reflect violation of mandatory provisions of law or the rules;
II. Breaches of contracts which do not entail examination of
minute/disputed questions of fact committed by public
functionaries involving dereliction of obligations flowing
from a statute, rules or instructions; 
III. Where public functionaries fail to exercise public authority,
especially while dealing with public property, public funds or
assets, in a fair, just, transparent and reasonable manner,
8

untainted by mala fides or colorable exercise of power for
ulterior motives, without discrimination and in accordance
with law, keeping in view the constitutional rights of the
citizens, even in the absence of any specific statutory
provisions setting forth the process in this behalf; 
IV. Interference with the decision making process is warranted
where it is vitiated on account of arbitrariness, illegality,
irrationality and procedural impropriety or where it is
actuated by mala fides; 
V. Illegal actions from the exercise of powers by the
Governmental bodies while exercising powers to dispense
and regulate special services by means of leases, licenses,
contracts, quotas, etc., as these authorities are expected to
act fairly, justly and in a transparent manner and such
powers cannot be exercised in an arbitrary or irrational
manner; 
VI. Inappropriate dealings of public funds, public property,
licenses, jobs or any other government largesse is to be dealt
9

with by public functionaries on behalf of and for the benefit
of the people; 
VII. Scrutinize matters where public money is being expended
through procurement or public property is being sold, so as
to ensure that transactions by the Government are
undertaken and contracts executed in a transparent manner,
legally, fairly and justly without any arbitrariness or
irrationality and public money and public property is not
squandered or stolen; 
VIII. The presence of elements such as personal solicitation and
personal influence in the procurement of contracts directly
leading to inefficiency in the public service and to
unnecessary expenditures of the public funds; 
IX. All agreements for pecuniary considerations to control the
business operations of the government, or the regular
administration of justice, or the appointments to public
offices, or the ordinary course of legislation, are void as
against public policy, without reference to the question,
10

whether improper means are contemplated or used in their
execution; If material changes are brought about in
agreements subsequent to the bidding to benefit a particular
party, this will in fact negate the notion of a fair and open
competitive bidding process; and 
X. Courts should ordinarily refrain from interfering in the policy
making domain of the Executive or in the award of contracts
and should not substitute its decision for that of the latter
unless the acts or omissions smack of arbitrariness,
favoritism and a total disregard of the mandate of law. 


CASE LAW:
Edited By: Zafar Iqbal

Baluchistan High Court explains the way to re-open an assessment of customs duties. Validity of penalty imposition order held after assessment of leviable duty and taxes under S.80, Customs Act, 1969 and payment thereof and after clearing the vehicles under S. 83, Custom Act, 1969, the available remedy of filing appeal under S. 193, Customs Act, 1969 was not availed by the concerned officials of the Collectorate of Customs Additional Collector of Customs (Adjudication) had no jurisdiction under the provisions of the
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Customs Act, 1969 to issue show cause notice and to pass Order in Original.

[Collector of Customs vs. M/s Al Habib Enterprises and Engineering: 2019 PTD 1712]. 

Baluchistan High Court, 31st January, 2019 

A business organization had imported concrete transit mixer
trucks which were allowed clearance for home consumption after
submission of prescribed documents. On a subsequent inquiry
Customs attributed an act of mis-declaration on the part of
importer by alleging that the year of manufacture of imported
trucks was incorrect. On the basis of said anomaly, a show cause
notice was issued by an authority namely, the Additional Collector
of Custom (Adjudication). The show cause notice was assailed by
the importer on the ground that Additional Collector who issued
show cause notice was not competent to initiate panel proceedings
under the law. The adjudication officer namely, Additional Collector
however, rejected importer’s plea and imposed penalties. The
order of penalty imposition was challenged before the Appellate
authority who set aside the penalty order. The appellate authority
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observed that the adjudication officer who imposed penalties was
not competent to pass penalty order since the same was not
authorized by law. The customs challenged validity of Appellate
authority’s order before the Baluchistan High Court. The High Court
held that after assessment of leviable duty and taxes under S. 80,
of the Customs Act, 1969 and payment thereof and after clearing
of the vehicles under S. 83, of the Customs Act, 1969, the available
remedy before the department was to file an appeal under S. 193,
of the Customs Act, 1969 and since the same was not availed by the
department, hence the initiation of penal action by the Additional
Collector of Customs (Adjudication) was without jurisdiction. 


ICJ DECISION: BOLIVIA V. CHILE1 

OBLIGATION TO NEGOTIATE ACCESS TO THE PACIFIC OCEAN

International Court of Justice – 1904 Treaty of Peace and Friendship (Bolivia-Chile)-obligation to negotiate – intention to be legally bound.

International Court of Justice, October 1, 2018
                                             
 1 https://www.icj-cij.org/files/case-related/153/153-20181001-JUD-01-00-EN.pdf 
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The need for universal adherence to and implementation of
the rule of law at both the national and international levels” stands
reaffirmed by the ICJ in their recent judgement namely, Bolivia V.
Chile. Amongst other things ICJ did give findings on important legal
issues which are summarized below: 
Bilateral Agreements
According to customary international law, as reflected in
Article 3 of the Vienna Convention, “agreements not in written
form” may also have “legal force”. Irrespective of the form that
agreements may take, they require an intention of the parties to be
bound by legal obligations. This applies also to tacit agreements.
The Diplomatic Exchanges
In the case concerning Maritime Delimitation and Territorial
Questions between Qatar and Bahrain,2 the court had found that
signed minutes of a discussion could constitute an agreement if
they “enumerate[d] the commitments to which the Parties ha[d]
                                             
 2 Qatar v. Bahrain, 1994 I.C.J.112 
14

consented” and did not “merely give an account of discussions and
summarize points of agreement and disagreement”.
Status of Declarations and Other Unilateral Acts
Consider the following declarations/statements of Chile:
“Willing to seek that Bolivia acquire its own outlet to the sea” and
“to give an ear to any Bolivian proposal aimed at solving its
landlocked condition”. And “unchanging purpose of studying,
together with that brother country, within the framework of a frank
and friendly negotiation, the obstacles that limit Bolivia’s
development on account of its landlocked condition”. The wording
of these texts does not suggest that Chile has undertaken a legal
obligation to negotiate Bolivia’s sovereign access to the Pacific
Ocean. With regard to the circumstances of Chile’s declarations and
statements, the Court further observes that there is no evidence of
an intention on the part of Chile to assume an obligation to
negotiate. In the opinion of the Court, “an obligation to negotiate
Bolivia’s sovereign access to the sea cannot rest on any of Chile’s
unilateral acts referred to by Bolivia.”
15

Estoppel
“Essential elements required by estoppel” are “a statement
or representation made by one party to another and reliance upon
it by that other party to his detriment or to the advantage of the
party making it”.
Legitimate Expectations
In the opinion of Court legitimate expectations may be found
in arbitral awards concerning disputes between a foreign investor
and the host State that apply treaty clauses providing for fair and
equitable treatment. It does not follow from such references that
there exists in general international law a principle that would give
rise to an obligation on the basis of what could be considered a
legitimate expectation.3 
The Charter of the United Nations
The Court held that no obligation to negotiate Bolivia’s
sovereign access to the Pacific Ocean arises for Chile under the
                                             
 3 Bolivia’s argument based on legitimate expectations thus cannot be sustained.
16

United Nations Charter. Concerning the OAS Charter, the Court
recalls that its Article 3 (i) provides that “controversies of an
international character arising between two or more American
States shall be settled by peaceful procedures”.
The Resolutions of the General Assembly
General Assembly resolutions merely recommend to Bolivia
and Chile that they enter into negotiations over the issue.
Moreover, as both Parties acknowledge, resolutions of the General
Assembly of the OAS are not per se binding and cannot be the
source of an international obligation. Chile’s participation in the
consensus for adopting some resolutions therefore does not imply
that Chile has accepted to be bound under international law by the
content of these resolutions. Thus, the Court refused to infer from
the content of the resolutions Chile’s legal stand position with
respect to their adoption that Chile has accepted an obligation to
negotiate Bolivia’s sovereign access to the Pacific Ocean.
The Legal Significance of Instruments, Acts and Conduct Taken
Cumulatively
17

The Court noted that Bolivia’s argument of a cumulative
effect of successive acts by Chile is predicated on the assumption
that an obligation may arise through the cumulative effect of a
series of acts, even if it does not rest on a specific legal basis.
However, given that the Court’s analysis shows that no obligation
to negotiate Bolivia’s sovereign access to the Pacific Ocean has
arisen for Chile from any of the invoked legal bases taken
individually, a cumulative consideration of the various bases cannot
add to the overall result. It is not necessary for the Court to consider
whether continuity existed in the exchanges between the Parties
since that fact, if proven, would not in any event establish the
existence of an obligation to negotiate Bolivia’s sovereign access to
the Pacific Ocean.
RECENT LEGISLATION 
The government has framed and circulated listed companies (Draft
Code of Corporate Governance) Regulations, 2019. The draft
regulations inter alia, provide for the composition of board, its
directors and members while defining the procedure for its
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meetings, issues which can be placed before Board of Directors,
their responsibility and functions. It also provides procedure for
audit, reporting and constitution of committees. 
RECENT GUIDANCE 
State Bank of Pakistan EPD Circular Letter No. 07 of 2019. [April 19, 2019].

Clarification relating to Foreign Currency Accounts
1. Attention of Authorized Dealers is invited to the second
proviso of sub-section (4) of the Section (5) of the
Protection of Economic Reforms Act (PERA), 1992 which,
inter-alia, states as under:
“provided that no cash shall be deposited in an
account of a citizen of Pakistan resident in
Pakistan, unless the account holder is a filer as
defined in the income Tax Ordinance, 2001 (XLIX
of 2001)”
2. It has come to our notice that some Authorized Dealers are
not allowing non-residents to open and maintain foreign
19

currency accounts on the pretext that they are not appearing
as ‘filer’ in the Active Taxpayer’s List of FBR.
3. However, it is evident from the aforementioned Proviso that
the instructions, contained therein, are not applicable to
non-residents.
4. An updated copy of the PERA, 1992 is enclosed herewith for
information and meticulous compliance.

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Friday, 6 September 2019

Impact of bilateral and multilateral treaties under international law

  • A treaty is an international agreement concluded between states in written form and governed by international law.1 A treaty can also come into existence through an agreement between a state and an international organisation or between two such organisations.2 A treaty does not have to be in writing in order to be valid and enforceable under international law.3 Treaties may be bilateral or multilateral.
Bilateral and multilateral treaties are governed by uniform legal rules; however, the process of negotiation and conclusion may differ. Generally bilateral treaties are initiated in the foreign ministry of one of the two interested parties. Instruments such as diplomatic notes are exchanged between the parties and draft instruments are prepared by the legal advisers.
Multilateral treaties are usually drafted at diplomatic conferences where participant states to the treaty are represented by their respective delegations. Drafts and working papers are considered by the delegates of such conferences and these documents serve as the basis for negotiations and bargaining.4
The negotiating and drafting process at these diplomatic conferences resembles that of national legislatures. Here amendments to different provisions of the working papers are presented, rapporteurs are designated, drafting committees are established, alternative texts are proposed and debated, etc. The conference records are a valuable source of information on the drafting history of the treaty. The formal results of the conference are frequently summarized in a so-called Final Act, which usually contains the text of the treaty. The Final Act can and often does serve to authenticate the text of the treaty.5
These treaties become effective on international plane when both states indicate their willingness to accept and adopt the agreement effective from a specific date. Multilateral treaties contain conditions specifying that how many states have to accept the treaty before it will be in force between them.6
The consent of a state to be bound by a treaty may be expressed by signature, exchange of instruments constituting a treaty, ratification, acceptance, approval or accession, or by any other manner if so agreed.7 For acceptance of the treaty under international law, the methods specified may be utilized by a state to indicate its acceptance of the treaty. The signatures on the treaty by competent authorities of the states will bring a binding effect.8
The Convention on treaties require that the treaty must provide that on ratification it will have a binding effect.9 On the international plane, ratification is an act whereby a state, through its head of state, foreign minister, or duly authorized diplomatic agent declares that it considers itself bound by the treaty. The declaration is usually contained in a so-called instrument of ratification. These instruments are either exchanged between the parties or deposited with a previously designated depository government or organisation, which performs various custodial functions relating to the treaty.10
Ratification usually is the subsequent act in a two-stage process, the process requires signature followed by ratification. The signature serves as a method for the authentication of the text of the agreement.11 The subsequent ratification brings the agreement into force, their earlier signature alone does not have that effect.12
These treaties are submitted to the national authorities, say parliaments, for ratification who are empowered under national law to approve these treaties. A typical sequence for adoption and ratification for a country would be as under:
(1) Negotiation of treaty by authorized representative; (2) Signature of the representative on the concluded agreement; (3) Submission of the treaty before the Parliament; (4) Approval of treaty by the Parliament; (5) Ratification of the instrument by the respective parties.
Once the treaty is ratified by the parties, only then the negotiating countries will be bound by the treaty.
Sometimes these treaties can be signed with statements labelled as reservations.13 The statement of reservation are to be interpreted in terms of the provisions of VCLT.13A To determine its impact such statements are in fact not relevant..
In addition to reservations, there may exist understandings or declarations. These statements provide that a given provision of the treaty is well understood and does have a specific meaning. But it has been observed that in practice such statements cause ambiguities, for example, whether a declaration is a reservation or merely a unilateral interpretation.
However, three exceptions to the rule relating to reservations, exists, ie, (i) reservations prohibited by treaty; (ii) the type of reservation, say typical or limited; (iii) whether or not reservation is incompatible with the object and purpose of treaty.14
Where reservations are accepted by the parties it proposes to modify the terms of the treaty between parties to the agreement.15 In case of ambiguity created by such statements, the way out has been provided by the provisions of VCLT.16 A treaty may, however, provide that a reservation to the agreement requires acceptance by all parties.17 Where a treaty is the part of the document accepted by an international organisation, the statement so made will have to be accepted by the organisation.18 Where reservations made are not incompatible with the object and purpose of the treaty, the parties to the agreement are free to accept or reject the reservation.19
Let us assume that there is a multilateral treaty with a large number of states parties that contains no prohibition regarding reservations. Let us assume further that State P seeks to ratify with a reservation modifying Article 5 of a treaty. What will be the treaty relations of State P, if State I accepts the reservation, State F objects to it but does not object to P becoming a party, and State Q objects to the reservation and does not want the treaty to enter into force between it and State P? Under the international law,20 the result will be as follows: (1) between State D and I, the treaty is in force as modified by P’s reservation to Article 5; (2) between State P and F, the treaty is in force, but Article 5 is inapplicable “to the extent of the reservation”; (3) the treaty is not in force between P and Q; and (4) the treaty relations between I, F, Q and all other parties and their obligations inter se are unaffected by P’s reservation.
As far as international law is concerned the obligation to perform treaties in good faith applies to the signing parties.21 A party to a treaty cannot invoke the provisions of its internal law as a justification for its failure to perform a treaty.22
A treaty is binding upon each party in respect of its entire territory.23 A treaty does not create either obligations or rights for a third state without its consent.24 Error of fact, fraud, corruption and duress, are also available under international law to invalidate treaties.25 A norm is accepted and recognized by the international community of states as a whole from which no derogation is permitted and which can be modified only by a subsequent norm of general international law having the same character.26
The mere fact that the government of a state who is party to a treaty has changed or has been overthrown does not, as a matter of law, can terminate or suspended a treaty.27 States may withdraw from a treaty, terminate it, or suspend its operation in a manner prescribed by the treaty or with the consent of all states parties thereto.28 It is an established principle of international law that a material breach of a treaty is a valid ground for its suspension or termination.29 International law recognizes that impossibility of performance and a fundamental change of circumstances (rebus sic standibus) in certain situations may justify the termination of or the withdrawal from a treaty.30
(The writer is an advocate and is currently working with Azim-ud-Din Law Associates. To see author’s other areas of interest visit Zafars Blog on International Studies http://blogoninternationalstudy.blogspot.com/
REFERENCES;
 1. See Article 2(1)(a) of the Vienna Convention on the Law of Treaty (VCLT) (May 23, 1969). It entered into force in 1980 and stands ratified by many states.
2. See Article 3 of VCLT which adopts a more restrictive definition because it was expressly made applicable only to agreements between states. 3. See legal status of Eastern Greenland, 1933 P.C.I.J. also see Article 3 of VCLT. International agreements involving international organisations are governed by a more recent treaty, the Vienna Convention on the Law of Treaties between States and International Organisations or between International Organisations, Mar. 21, 1986, 25 I.L.M. 543. This instrument compliments the VCLT and amplifies to a significant extent the existing body of norms applicable to international agreements.
4. See Article 9 of VCLT.
5. See Article 10 of VCLT. The adoption of the Final Act is not as a rule designed to bring the agreement into force; it simply establishes that the negotiations are completed.
6. See Article 24 of VCLT.
7. See Article 11 of VCLT.
8. See Article 8 of VCLT.
9. See Article 14(1) of VCLT. As per the Provisions of Article 7 and 14 of VCLT.
10. See Article 76-77 of VCLT.
11. See Article 10 of VCLT.
12. See Article 18 of VCLT.
13. See Article 2(1)(d) of VCLT: The Convention defines a reservation as, a unilateral statement, however phrased or named, made by a state, when signing, ratifying, accepting, approving or acceding to a treaty, whereby purports to exclude or to modify the legal effect of certain provisions of the treaty in their application to that State.
13A. See Article 2(1)(d) of VCLT
14. See Article 19 of VCLT. A reservation designed to enable a state to suspend any of the non-derogable fundamental rights be treated as incompatible with the treaty.
15. In the case of a bilateral treaty, the acceptance of the reservation results in an amendment of the treaty.
16. See Article 20 of VCLT: A reservation expressly authorized by a treaty does not require acceptance.
17. See Article 20(2) of VCLT.
18. See Article 20(3) of VCLT.
19. See Article 20(4) of VCLT.
20. See the provisions of VCLT.
21. See Article 27 of VCLT.
22. See Article 46 of VCLT.
23. See Article 29 of VCLT.
24. See Article 34 of VCLT.
25. See Article 48-52 of VCLT.
26. See Article 53 of VCLT.
27. See Article 63 of VCLT.
28. See Article 54 & 57 of VCLT.
29. See Article 60(3)(b) of VCLT.
30. See Article 61(1) of VCLT.