1
Core Concept & Key Definitions
⚖️Law = a set of rules or a system of rules of conduct designed and enforced by the State to control and regulate the conduct of people.
🔄 Law is not stagnant
As circumstances and conditions in society change, laws are also changed as per the requirements of society. The word "law" is often preceded by an adjective — Civil Law, Criminal Law, Business Law.💼 Mercantile / Business Law
The part of civil law that deals with the rights and obligations of persons dealing with each other — contracts, partnership, sale of goods, negotiable instruments etc.🚫 Ignorance is no excuse
Civil law touches everyday life (debts, tenancy, sale of goods). One should know the law he is subject to — generally, ignorance of law is neither an excuse nor a defence.🎓 Why do Chartered Accountants study law? (Not to become expert lawyers)
🔍Be aware when legal problems arise
🤝Judge when outside assistance is required
💰Evaluate the financial implications of law
💬Communicate with the lawyers
2
Sources of Law in Pakistan
📚Basis of Pakistan's Legal System
Derived from English Common Law(including doctrine of equity)
Based on the Constitution of Pakistan 1973
and Islamic Law (Sharia)
↓ MAIN SOURCES OF LAW ↓
🏛️ 1. Legislation
Law created by Parliament and bodies to whom it has delegated authority. Includes: Act of Parliament, Ordinance by the President, and delegated legislation.👨⚖️ 2. Precedent
(Case law) — judgments/decisions of a superior court which are binding on subordinate courts.🕌 3. Customs
Customs, practices and beliefs so vital and intrinsic to the social and economic system that they are treated as laws, e.g. Sharia laws.📝 4. Agreement
Parties stipulate terms in their agreement which constitute law for the contracting parties.MCQ point: International treaties and conventions are NOT listed as a source of law in Pakistan.
3
Comparison — Civil Law vs Criminal Law
🆚| Basis | 🧑🤝🧑 Civil Law | 🚔 Criminal Law |
|---|---|---|
| 1. Definition / Application | Sets out the rights and duties of persons between themselves. Person whose rights are affected claims a remedy from the wrongdoer. Violation = a tort (a wrongdoing), not a crime. | Concerned with conduct so undesirable that the State punishes those who transgress. Violation = a crime. It is the State's responsibility (not private individuals) to bring the action in criminal trials. |
| Case title & parties | Tanveer v Khatri Tanveer = Plaintiff (claimant) · Khatri = Defendant | State v Khatri State prosecutes · Khatri = Accused; if found guilty = Convict |
| 2. Purpose | Provide a means by which an injured party can obtain compensation. | Regulate society by the threat of punishment. |
| 3. Harm caused | Claimant sues the defendant for harm caused or losses suffered. | State prosecutes the accused whether or not harm was caused. |
| 4. Burden of proof | Balance of probabilities → defendant held liable. | Beyond all reasonable doubt → guilty is convicted. |
| 5. Remedy | Damages, or another remedy such as specific performance or injunction. | Fine, or other sentence such as imprisonment or death sentence. |
📂 Examples — Civil laws
- Property disputes (Transfer of Property Act)
- Work-related disputes (employment law)
- Negligence (Tort)
- Consumer claims against manufacturers / service providers
- Commercial disputes between businesses
- Copyright disputes
- Defamation of character (Tort)
- Breach of contract (Contract Act, 1872)
📕 Examples — Criminal laws in Pakistan
- Pakistan Penal Code
- Anti-Money Laundering Act
- Prevention of Electronic Crimes Act
In business: fraud and money laundering are criminal activities that may occur in business.
4
Governing Structure of Pakistan Art. 50
🏛️Federal Parliamentary System — President = Head of State · elected Prime Minister = Head of Government. Federal Legislature = bicameral Majlis-e-Shoora (Parliament).
Majlis-e-Shoora (Parliament)
President
National Assembly(Lower House)
Senate(Upper House)
🎖️ The President Art. 41, 44, 46, 48
- Head of State; represents the unity of the republic
- Must be a Muslim
- Elected for 5 years by Senate + National Assembly + members of Provincial Assemblies
- Eligible for re-election, but not more than two consecutive terms
- Usually nominated/elected by the majority party in the NA
- PM keeps President informed on internal & foreign policy and legislative proposals
- Approves statutes passed by NA and Senate
- Acts on the advice of the Cabinet / Prime Minister
👔 Prime Minister Art. 90, 91
- Nominated and elected by a majority of members of the National Assembly, then appointed by the President
- Assisted by the Federal Cabinet — council of ministers appointed by the President on the advice of the PM
- Federal Ministers are supported by secretaries and other officers in each department to ensure policies are acted upon
🏛️ Senate Art. 59, 60, 49
- Permanent legislative body; equal representation from each of the four provinces, elected by members of their Provincial Assemblies; also representatives from Islamabad Capital Territory
- Term 6 years; half retire after 3 years → never dissolved all at once
- Members elect a Chairman and Deputy Chairman
- Chairman Senate is next in line to act as President if the office becomes vacant
- Role: promote national cohesion; alleviate smaller provinces' fears of domination
- Approves all statutes passed by NA except Money Bills
🗳️ National Assembly Art. 51, 52, 53
- Seats determined on the basis of population of provinces
- General seats: 5 years, by direct votes of registered voters; reserved seats for women and non-Muslims
- Members elect Speaker, Deputy Speaker and Prime Minister
- Most important function: law making and formulation of policies
5
Procedure / Roadmap — Process of Legislation
🧭Act of Parliament: A Bill on any matter other than a Money Bill may originate in either House (National Assembly or Senate). Art. 70
Scenario 1Passed without amendment Art. 70
Bill originated & passed in either House
➜Transmitted to other House → passed without amendment
➜Presented to President for assent
Scenario 2Passed with amendment Art. 70
Originated & passed in either House
➜Other House passes it with amendment
➜Sent back to originating House → passes with those amendments
➜President for assent
Scenario 3Rejected / not passed by other House Art. 70
Originated & passed in either House
➜Other House rejects or does not pass within 90 days
➜At request of originating House → Joint Sitting
➜Passed by majority of members present and voting
➜President for assent
Scenario 4Amendment not accepted by originating House Art. 70
Originated & passed in either House
➜Other House passes with amendment
➜Originating House does not pass it with such amendment
➜On its request → Joint Sitting; passed by majority present & voting
➜President for assent
Scenario 5Money Bill (finance / tax etc.) Art. 73
Originates only in the National Assembly
➜Copy sent to Senate for recommendations only
➜NA passes it with or without Senate's recommendations
➜President for assent
Senate's approval is NOT required for a Money Bill.
Power of PresidentArt. 75
President shall, within 10 days, either assent to the Bill or return it to Parliament for reconsideration of any provision or amendment — (only for a Bill other than a Money Bill).Scenario 6Returned by President Art. 75
Reconsidered by Parliament in Joint Sitting
➜Passed again (with/without amendment) by majority of members of both Houses present and voting
➜President for assent
⏳ Lapse of a Bill on dissolution of the National Assembly Art. 76
✖ Bill LAPSES if:
It is pending in, or passed by, the National Assembly and is pending in the Senate.✔ Bill does NOT lapse if:
It is pending in the Senate and has not been passed by the National Assembly.🗺️ Process of Legislation — Overview Chart
When National Assembly is IN session
↓
Money Bills
↓
National AssemblyAll other Bills
↓
National Assembly + Senate↓
President↓
Assent ✔Reject / Amend → sent for reconsideration to Parliament (joint sitting of NA & Senate)
↓
ACT / LAW
When National Assembly is NOT in session
↓
President↓
Ordinance
6
Ordinance — Power of the President Art. 89
📜Conditions to promulgate
- President deems it necessary to take immediate action; and
- The Senate or the National Assembly is not in session.
Legal effect
An Ordinance has the same force and effect as an Act of Parliament.Life of an Ordinance — Timeline
Day 0 · Ordinance promulgated
⬇
Stands repealed after 120 days if not presented/passed — by the NA (Money Bill) or by both Houses (other than Money Bill)
⬇
NA may extend it once for another 120 days by passing a resolution
Disapproval: If NA, before expiry of 120 days, passes a resolution disapproving the Ordinance, it expires on the day the resolution is passed.
7
Delegated Legislation
🏢Power is given by Parliament to an Executive (a minister or public body) to make subordinate / delegated legislation for specified purposes only — e.g. local authorities make bye-laws that apply within a specific locality.
👍 Advantages
- Time — Parliament does not have time to examine matters in detail
- Expert opinion — technical content is better worked out with professional, commercial or industrial groups outside Parliament
- Flexible — far simpler to amend than an Act of Parliament
👎 Disadvantages
- Undemocratic — law making moves from elected members to unelected civil servants and experts under a minister's supervision
- Bulk volume — produced in large amounts; becomes unmanageable and impossible to keep up-to-date
🛡️ Control over it
- Parliament restricts and defines the power to make rules.
- Courts — rules may be challenged as ultra vires (exceeding prescribed limits or made without due compliance). If the objection is valid, the court declares them void.
8
Application to Scenarios
🧩Case: Talal v Kashif
Talal files a suit in the civil court against Kashif.➜ Talal = Plaintiff; Kashif = Defendant.
Train accident
A train crash causes deaths and injuries.➜ State may prosecute the company / managers in the criminal court.
➜ Injured persons & relatives may bring civil actions for compensation.The same act may be both a crime and a tort — managers must know both.
NA passes, Senate rejects
➜ Not effective unless, at the request of the NA, it is considered in a joint sitting.➜ If passed by majority present & voting → President, who within 10 days assents or returns it for reconsideration.
Money Bill — NA in session
Originates in NA; after NA passes it, it is presented to the President without being transmitted to the Senate for approval.Money Bill — NA not in session
President (if immediate action needed) issues an Ordinance; repealed after 120 days if not passed by the NA.Bye-law exceeds powers
A local authority's bye-law goes beyond its delegated limits ➜ challenged in court as ultra vires ➜ court declares it void.9
Common Exam Traps (MCQ Distractors)
⚠️Criminal burden of proof: beyond any doubt / any reasonable doubt → beyond ALL reasonable doubt. Civil = balance of probabilities.
Non-money Bill origin: must start in NA → may originate in EITHER House. Money Bill → NA only.
President's electoral college: Senate + NA only → Senate + NA + members of Provincial Assemblies.
Returned Bill reconsidered by: NA & Senate independently → both Houses in JOINT sitting.
Re-election: three consecutive terms → not more than TWO consecutive terms.
Ordinance life: 90 / 60 / 100 days → 120 days (90 days = time for the other House to pass a Bill).
Acting President on vacancy: PM / Speaker / Chief Justice → Chairman of the Senate.
"Bulk volume" and "power to unelected civil servants" are DISADVANTAGES of delegated legislation — not advantages.
Parliament consists of: President, NA & Provincial Assembly → President, National Assembly & Senate.
Tort = violation of civil law, not of criminal law. A guilty accused = Convict (not plaintiff/defendant).
Ministers appointed by President on advice of: Chief Justice / Governor → the Prime Minister.
Criminal law aims to penalize wrongdoers — compensating injured parties is the aim of civil law.
10
Quick Revision Box — Numbers & Articles
⚡5 yrsPresident's term · NA general seats
2Max consecutive terms of President
6 / 3 yrsSenator's term / half retire every 3 years
90 daysOther House fails to pass → joint sitting
10 daysPresident to assent or return Bill
120 daysOrdinance repealed if not passed
+120 daysOne extension by NA resolution
4Sources: Legislation, Precedent, Customs, Agreement
- Art. 50 Governing structure / Parliament
- Art. 41, 44, 46, 48 President
- Art. 90, 91 Prime Minister & Cabinet
- Art. 59, 60, 49 Senate · Art. 51, 52, 53 National Assembly
- Art. 70 Act of Parliament (Scenarios 1–4) · Art. 73 Money Bill
- Art. 75 Power of President / return of Bill · Art. 76 Lapse of Bill
- Art. 89 Ordinance
- Civil vs Criminal on 5 points: definition, purpose, harm, burden of proof, remedy
Delegated legislation in one line: Advantages = Time · Experts · Flexible | Disadvantages = Undemocratic · Bulk volume | Control = Parliament + Courts (ultra vires → void)
Test yourself on this chapter
Practice 30 ICAP-pattern BLD MCQs with full explanations – Chapter 2 is free for everyone. Enrol for all chapters.
All CAF-4 BLD revision notes