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Criminal Investigations must not Interfere with pending Civil Litigation --- Islamabad High Court allowed the petitions, restraining the FIA from pursuing Criminal Charges against the petitioners until the Civil Matters are adjudicated

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Criminal Investigations must not Interfere with pending Civil Litigation --- Islamabad High Court allowed the petitions, restraining the FIA from pursuing Criminal Charges against the petitioners until the Civil Matters are adjudicated

Islamabad 03-12-2024: In a significant judgment, the Islamabad High Court (IHC) has barred the Federal Investigation Agency (FIA) from continuing its criminal investigation into the controversial Joint Venture Agreement (JV Agreement) involving Pakistan Television Corporation (PTV), ARY Communications Limited, and GroupM Pakistan. The Court ruled that the FIA cannot frame criminal charges against the petitioners until related civil disputes are resolved by the Lahore High Court and Sindh High Court.

The FIA initiated an inquiry under Section 160 of the Code of Criminal Procedure, 1898 (Cr.P.C), alleging violations of procurement regulations and financial losses linked to the JV Agreement. The agreement, signed in September 2021, was challenged on grounds of procedural irregularities and favoritism.

The Lahore High Court earlier upheld the legality of the JV Agreement, declaring it a transparent and competitive process (PLD 2022 Lahore 288). However, PTV later raised concerns over alleged non-compliance with Public Procurement Rules, 2004, and referred the matter to the FIA for investigation.

Mr. Justice Babar Sattar highlighted the following key points in the judgment:

The Court reaffirmed that civil and criminal proceedings can run concurrently. However, criminal investigations must not interfere with pending civil litigation. The Court emphasized that criminal liability in this case depends on resolving civil disputes before the Lahore and Sindh High Courts.

The Court underscored that the Lahore High Court’s decision on the JV Agreement’s legality is binding on all subordinate Courts and authorities unless overturned on appeal.

Any action by the FIA that prejudices ongoing civil litigation violates Article 204(2)(c) of the Constitution, which protects judicial proceedings from external influence.

The Court noted that the legality of the JV Agreement, including compliance with the Public Procurement Regulatory Authority Ordinance, 2002, is under judicial review. Until those matters are resolved, no criminal proceedings can proceed.

The Court allowed the petitions, restraining the FIA from pursuing criminal charges against the petitioners until the civil matters are adjudicated. The judgment also permits the FIA to seek permission from the relevant High Courts if it intends to proceed with the investigation during the ongoing litigation.