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FSC disposes of plea against House Building Finance Corporation (HBFC) Act, 1952

ISLAMABAD: A Bench of the Federal Shariat Court (FSC) headed by its Chief Justice Dr Syed Muhammad Anwer and comprising Justice Khaidm M. Shaikh on Monday disposed of the Shariat petition regarding House Building Finance Corporation (HBFC) Act, 1952.

The House Building Finance Corporation Act 1952, was challenged by the petitioner on the ground that Section 28 of the Act gives unfettered power to the House Building Finance Corporation to sell out the house of a borrower in case of default in repayment of the loan amount, which renders the Corporation into a money lender engaged in usury, which is forbidden by the express command of the Holy Quran.

The Bench, after perusal of record and hearing the parties, held that the said Act has already been repealed by the Federal Government through HBFCA 2018 (Repeal) Act. However, the Bench noted that law under discussion i.e. the Act of 2018 (Act No.XXV of 2018) was virtually a one-liner law, yet it suffered from a serious mistake of legislative drafting, which needless to say practically defeated the very cause of its promulgation.

The Bench noted that State cannot afford even a slightest error in drafting of laws, as it may cause serious legal complications. Therefore, the Bench ruled that the Secretary Law and Justice is directed to ensure special care in legislative drafting, keeping in view the sensitivity attached thereto, as a mistake of only one word, as happened in the subject legislation, may defeat its very purpose. A copy of this order be sent to Secretary Law and Justice for compliance.

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