IHC declares Section 7 of Finance Act null and void

The Islamabad High Court (IHC) has declared Section 7 of the Finance Act 2015 void ab initio, declaring it contradictory to the Constitution, and struck it down along with all orders and actions taken under its provisions, including notifications.

Justice Arbab Muhammad Tahir issued a detailed verdict on a petition challenging the amendment made to the Auditor General Ordinance 2001 through the Finance Act.

The ruling stated that the Constitution is the supreme law of the land and all legislation derives its authority from it. If any law exceeds its given powers or contradicts a constitutional provision, it is deemed beyond legal authority (ultra vires) and unconstitutional.

The judgment further stated that parliament enacts laws within the constitutional framework and that any legislation conflicting with the Constitution or its Parent Act is rendered ineffective.

For a law to be valid, it must be logical and clear and must not contradict general legal principles or Constitution.

The ¬court ruled that by-laws could be annulled if they are enacted in violation of legal procedures, contradict other laws or go against their parent legislation. By-laws that are ambiguous, unclear, unreasonable or illogical can also be declared void.