ISLAMABAD HIGH COURT, ISLAMABAD

1. Short title, extent and commencement.—(1) This Act may be called the Carriage by Air Act, 2012.

(2) It extends to the whole of Pakistan.

(3) It shall come into force at once.

(4) The applicable provisions of the Carriage by Air Conventions shall have the force of law in Pakistan in relation to any carriage by air to which they apply, irrespective of the nationality of the aircraft performing that carriage:

Provided that the provisions of Carriage by Air Conventions shall not apply to international carriage by air performed and operated directly by the Islamic Republic of Pakistan for non-commercial purposes in respect to its functions and duties as a sovereign state and to the carriage of persons, cargo and baggage for the military authorities on aircraft registered in or leased by the Islamic Republic of Pakistan, the whole capacity of which has been reserved by or on behalf of such authorities.

(5) Sub-section (4) is subject to other provisions of this Act.

2. Definitions.—In this Act, unless there is anything is repugnant in the subject or context,—

(a) "applicable provisions" means,--

(i) the provisions of Warsaw Convention, 1929, as set out in the First Schedule;

(ii) the provisions of the Warsaw Convention as amended at The Hague, 1955, as set out in the Second Schedule;

(iii) the provisions of the Guadalajara Convention, 1961, as set out in the Third Schedule; and

(iv) the provisions of the Montreal Convention, 1999, as set out in the Fourth Schedule;

so far as they relate to the rights and liabilities of carriers, carriers' servants and agents, passengers, consignors, consignees and other persons;

(b) "Carriage by Air Conventions" means,—

(i) the Convention known as the Warsaw Convention, 1929;

(ii) the Convention known as the Warsaw Convention as amended at The Hague, 1955;

(iii) the Convention supplementary to that Convention known as the Guadalajara Convention, 1961; and

(iv) the Convention known as the Montreal Convention, 1999.

3. Application of the Carriage by air conventions, as amended, to Pakistan.—(1) The rules contained in the First Schedule, being the provisions of the convention for the unification of certain rules relating to international carriage by air relating to the rights and liabilities of carriers, passengers, consignors, consignees and other persons, known as the Warsaw Convention, 1929, shall, subject to the provisions of this Act, have the force of law in Pakistan in relation to any carriage by air to which those rules apply, irrespective of the nationality of the aircraft performing the carriage.

(2) The rules contained in the Second Schedule, being the provisions of the convention for the unification of certain rules relating to international carriage by air known as the Warsaw Convention as amended at The Hague, 1955, shall, subject to the provisions of this Act, have the force of law in Pakistan in relation to any carriage by air to which those rules apply, irrespective of the nationality of the aircraft performing the carriage.

(3) The rules contained in the third Schedule, being the provisions of the Convention supplementary to the Warsaw Convention, 1929 for the unification of certain rules relating to international carriage by air performed by a person other than the contracting carrier, known as the Guadalajara Convention, 1961, shall subject to the provisions of this Act, have the force of law in Pakistan in relation to any carriage by air to which those rules apply, irrespective of the nationality of the aircraft performing the carriage and the rules contained in the Third Schedule shall be supplementary to, and form part of, the rules contained in the First Schedule or, as the case may be, the Second Schedule, and shall have effect accordingly.

(4) The rules contained in the Fourth Schedule, being the provisions of the Convention for the unification of certain rules relating to international carriage by air known as the Montreal Convention for the Unification of Certain Rules for International Carriage by Air, 1999, shall, subject to the provisions of this Act, have the force of law in Pakistan in relation to any carriage by air to which those rules apply, irrespective of the nationality of the aircraft performing the carriage.

(5) Notwithstanding anything contained in the Fatal Accidents Act, 1855 (XIII of 1855), or any other law for the time being in force, the rules contained in the First, Second, Third or, as the case may be, Fourth Schedule shall, in all cases to which those rules apply, determine the liability of a carrier in respect of the death of a passenger, and the rules contained in the Sixth Schedule shall determine the persons by whom and for whose benefit and the manner in which such liability may be enforced.

(6) Any sums mentioned in rules 21, 22, 23 or 24 of the Fourth Schedule shall, for the purpose of any action against a carrier, be converted into rupees at the rate of exchange prevailing on the date on which the amount of damages to be paid by the carrier is ascertained by the Court.

(7) Any sum in francs mentioned in Rule 22 of the First Schedule and as the case may be, Rule 22 of the Second Schedule, shall, for the purpose of any action against a carrier, be converted into rupees at the rate of exchange prevailing on the date on which the amount of damages to be paid by the carrier is ascertained by the Court.

(8) Any reference in the first, Second, Third and Fourth Schedules,—

(a) to the territory of any High contracting Party or Parties or State Party or Parties to the convention shall be construed as a reference to all the territories in respect of which he is a party; and

(b) agents of the carrier shall be construed as including a reference to servants of the carrier.

(9) The applicability of the Carriage by Air Conventions to any international carriage by air, as defined by the First, Second or, as the case may be, the Fourth Schedule, shall be dependent on the High Contracting Party or Parties or State Party or Parties, as the case may be being a signatory or signatories to the same Carriage by Air Convention.

(10) If more than one of the Carriage by Air Conventions apply to a carriage by air, the applicable provisions that shall have the force of law shall be those of whichever is the most recent applicable Carriage by Air Convention in force.

4. Provisions regarding suits against High contracting Party or Parties or State Party or Parties who undertake carriage by air.—(1) Every High contracting Party or Parties or State Party or Parties to the Carriage by Air Conventions shall, for the purposes of any suit brought in a Court in Pakistan in accordance with,—

(a) the provisions of Rule 28 of the First Schedule where a High contracting Party to the Warsaw Convention, 1929, has not availed himself of the provisions of the Additional Protocol thereto; or

(b) the provisions of Rule 28 of the Second Schedule where a High Contracting Party to the Warsaw Convention as amended at The Hague, 1955, has not availed himself of the provisions of the Additional Protocol thereto; or

to enforce a claim in respect of carriage undertaken by him, be deemed to have submitted to the jurisdiction of that Court and to be a person for the purposes of the Code of Civil Procedure, 1908 (Act V of 1908).

(2) The High Court may make rules of procedure providing for all matters which may be expedient to enable such suits to be instituted and carried on.

(3) Nothing in this section shall authorize any Court to attach or sell any property of a High contracting Party or Parties or State Party or Parties to the Carriage by Air Conventions.

5. Application of Act to carriage by air which is not international.—(1) The rules contained in the fifth Schedule shall apply to all, carriage by air, not being international carriage by air as defined in the First, Second, or as the case may be, Fourth Schedule.

(2) Notwithstanding anything contained in the Fatal Accidents Act, 1855 (XIII of 1855), or any other law for the time being in force, the rules contained in the Fifth Schedule shall, in all cases to which those rules apply, determine the liability of a carrier in respect of the death of a passenger, and the rules contained in the Sixth Schedule shall determine the person by whom and for whose benefit and the manner in which such liability may be enforced.

(3) The Federal Government, shall every three years, if not earlier, review all limits of liability provided for carriage by air, not being international carriage, in rules 21 and 22 of the fifth Schedule, any subsequent notifications thereto or any other law, and shall in the official gazette, accordingly notify the reviewed amounts of all such limits of liability.

6. Issuance of substitution of electronic means for delivering documents of carriage.—(1) Nothing contained in this Act shall prevent the issuance of an individual or collective document of carriage through electronic means which preserves the information required by the applicable provisions contained, as the case may be, in the First, Second, Fourth and Fifth Schedules as a substitute for the delivery of the document referred to in those applicable provisions and if any such other means is used, the carrier shall offer to deliver to the passenger a written statement of the information so preserved:

Provided that an electronic document of carriage shall be deemed to be a negotiable instrument as defined in Section 13 of the Negotiable Instruments Act, 1881 (XXVI of 1881), and may be dealt with in any manner as a paper document of carriage and the Electronic Transactions Ordinance 2002 (LI of 2002), shall apply to such electronic document of carriage notwithstanding the provisions of clause (a) of section (1) of Section 31 thereof.

(2) Notwithstanding anything contained in Section 31 of the Electronic Transactions Ordinance 2002 (LI of 2002), any document mentioned in this Act issued through electronic means shall be deemed to be a document for the purposes of the Electronic Transactions Ordnance, 2002 (LI of 2002), and all references to such document in this Act and the applicable provisions contained in the First, Second, Fourth and Fifth Schedules shall include their 'electronic form' and all such documents shall attract all the protections and exemptions provided for in the Electronic Transaction Ordinance 2002 (LI of 2002).

7. Repeal.—The Carriage by air Act, 1934 (XX of 1934), the Carriage by Air (International Convention) Act, 1966 (X of 1966), and Carriage by Air (Supplementary Convention) Act, 1968 (V of 1968) are hereby repealed.

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THE FIRST SCHEDULE

[See Section 3(1)]

THE WARSAW CONVENTION, 1929

UNIFICATION OF CERTAIN RULES RELATING TO INTERNATIONAL CARRIAGE BY AIR RELATING TO THE RIGHTS AND LIABILITIES OF CARRIERS PASSENGERS, CONSIGNORS, CONSIGNEES AND OTHER PERSONS.

RULES

CHAPTER-I

SCOPE-DEFINITIONS

1. (I) These rules apply to all international carriage of persons, luggage or goods performed by aircraft for reward. They apply also to such carriage when performed gratuitously by an air transport undertaking.

(2) In these rules "High Contracting Party" means a High Contracting Party to the Convention.

(3) For the purposes of these rules the expression "international carriage" means any carriage in which, according to the contract made by the parties, the place of departure and the place of destination, whether or not there be a break in the carriage or a transshipment, are situated either within the territories of two High Contracting Parties, or within the territory of a single High Contracting Party, if there is an agreed stopping place within a territory subject to the sovereignty, suzerainty, mandate or authority of another Power, even though that Power is not a party to the Convention. A carriage without such an agreed stopping place between territories subject to the sovereignty, suzerainty, mandate or authority of the same High Contracting Party is not deemed to be international for purposes of these rules.

(4) A carriage to be performed by several successive air carriers is deemed, for the purposes of these rules, to be one undivided carriage, if it has been regarded by the parties as a single operation, whether it has been agreed upon under the form of a single contract or of a series of contracts, and it does not lose its international character merely because one contract or a series of contracts is to be performed entirely within a territory subject to the sovereignty, suzerainty, mandate of authority of the same High Contracting Party.

2. (1) These rules apply to carriage performed by the State or by legally constituted public bodies provided it falls within the conditions laid down in Rule 1.

(2) These rules do not apply to carriage performed under the terms of any international postal Convention.

CHAPTER II

DOCUMENTS OF CARRIAGE

PART I. —Passenger ticket

3. (1) For the carriage of passengers the carrier must deliver a passenger ticket which shall contain the following particulars:—

(a) the place and date of issue;

(b) the place of departure, and of destination;

(c) the agreed stopping places, provided that the carrier may reserve the right to alter the stopping places in case of necessity, and that if he exercises that right, the alteration shall not have the effect of depriving the carriage of its international character;

(d) the name and address of carrier or carriers;

(e) a statement that the carriage is subject to the rules relating to liability Contained in this Schedule.

(2) The absence, irregularity or loss of the passenger ticket does not affect the existence or the validity of the contract of carriage, which shall none the less be subject to these rules. Nevertheless, if the carrier accepts a passenger without a passenger ticket having been delivered he shall not be entitled to avail himself of those provisions of this Schedule which exclude or limit his liability.

PART II--Luggage ticket

4. (1) For the carriage of luggage, other than small personal objects of which the passenger takes charge himself, the carrier must deliver a luggage ticket,

(2) the luggage ticket shall be made out in duplicate, one part for the passenger and the other part for the carrier.

(3) the luggage ticket shall contain the following particular:—

(a) the place and date of issue;

(b) the place of departure and of destination;

(d) the number of the passenger ticket;

(e) a statement that delivery of the luggage will be made to the bearer of the luggage ticket;

(f) the number and weight of the packages;

(g) the amount of the value declared in accordance with Rule 22 (2);

(h) a statement that the carriage is subject to the rules relating to liability contained in this Schedule.

(4) The absence, irregularity or loss of the luggage ticket does not affect the existence or the validity of the contract of carriage, which shall none the less be subject to these rules. Nevertheless, if the carrier accepts luggage without a luggage ticket having been delivered, or if the luggage ticket does not contain the particulars set out at (d), (f) and (h) of sub-rule (3), the carrier shall not be entitled to avail himself of those provisions of this Schedule which exclude or limit his liability.

PART III.--Air consignment note

5. (1) Every carrier of goods has the right to require the consignor to make out and hand over to him a document called an "air consignment note"; every consignor has the right to require the carrier to accept this document.

(2) The absence, irregularity or loss of this document does not affect the existence or the validity of the contract of carriage which shall, subject to the provisions of Rule 9, be none the less governed by these rules.

6. (1) The air consignment note shall be made out by the consignor in three original parts and be handed over with the goods.

(2) The first part shall be marked "for the earner", and shall be signed by the consignor. The second part shall be marked "for the consignee''; it shall be signed by the consignor and by the carrier and shall accompany the goods. The third part shall be signed by the carrier and handed by him to the consignor after the goods have been accepted.

(3) The carrier shall sign an acceptance of the goods,

(4) The signature of the carrier may be stamped; that of the consignor may be printed or stamped.

(5) If, at the request of the consignor, the carrier makes out the air consignment note, he shall be deemed, subject to proof to the contrary to have done so on behalf of the consignor.

7. The carrier of goods has the right to require the consignor to make out separate consignment notes when there is more than one package.

8. The air consignment note shall contain the following particular:—

(a) the place and date of its execution;

(b) the place of departure and of destination;

(c) the agreed stopping places, provided that the carrier may reserve the right to alter the stopping places in case of necessity, and that if he exercises that right the alteration shall not have the effect of depriving the carriage of its international character;

(d) the name and address of the consignor;

(e) the name and address of the first carrier;

(f) the name and address of the consignee, if the case so requires;

(g) the nature of the goods;

(h) the number of the packages, the method of packing and the particular marks or number upon them;

(i) the weight, the quantity and the volume or dimensions of the good;

(j) the apparent condition of the goods and of the packing;

(k) the freight, if it has been agreed upon, the date and place of payment and the person who is to pay it;

(l) if the goods are sent for payment on delivery, the price of the goods and, if the case so requires, the amount of the expenses incurred;

(m) the amount of the value declared in accordance with Rule 22 (2);

(n) the number of parts of the air consignment note;

(o) the documents handed, to the carrier to accompany the air consignment note;

(p) the time fixed for the completion of the carriage and a brief note of the route to be followed, if these matters have been agreed upon;

(q) a statement that the carriage is subject to the rules relating to liability contained in this Schedule.

9. If the carrier accepts goods without an air consignment note having been made out, or if the air consignment note does not contain all the particulars set out in Rule 8(a) to (i) inclusive and (q), the carrier shall not be entitled to avail himself of the provisions of the provisions of this Schedule which exclude or limit his liability.

10. (1) The consignor is responsible for the correctness of the particulars and statements relating to the goods which he inserts in the air consignment note.

(2) The consignor will be liable for all damage suffered by the carrier or any other person by reason of the irregularity, incorrectness or incompleteness of the said particulars and statements.

11. (1) The air consignment note is prima facie evidence of the conclusion of the contract, of the receipt of the goods and of the conditions of carriage.

(2) The statements in the air consignment note relating to the weight, dimensions and packing of the goods, as well as those relating to the number of packages, we prima facie evidence of the facts stated; those relating to the quantity, volume and condition of the goods do not constitute evidence against the carrier except so far as they both have been, and are stated in the air consignment note to have been , checked by him in the presence of the consignor, or relate to the apparent condition of the goods.

12. (1) Subject to his liability to carry out all his obligations under the contract of carriage, the consignor has the right to dispose of the goods by withdrawing them at the aerodrome of departure or destination, or by stopping them in the course of the journey on any landing, or, by calling for them to be delivered at the place of destination or in the course of the journey to a person other than the consignee named in the air consignment note, or by requiring them to be returned to the aerodrome of departure. He must not exercise this right of disposition in such a way as to prejudice the carrier or other consignors and he must repay any expenses occasioned by the exercise of this right.

(2) If it is impossible to carry out the orders of the consignor the carrier must so inform him forthwith.

(3) If the carrier obeys the orders of the consignor for the disposition of the goods without requiring the production of the part of the air consignment note delivered to the latter, he will be liable, without prejudice to his right of recovery from the consignor, for any damage which may be caused thereby to any person who is lawfully in possession of that part of the air consignment note.

(4) The right conferred on the consignor ceases at the moment when that of the consignee begins in accordance with Rule 13. Nevertheless, if the consignee declines to accept the consignment note or the goods, or if he cannot be communicated with, the consignor resumes his right of disposition.

13. (1) Except in the circumstances set out in Rule 12, the consignee is entitled, on arrival of the goods at the place of destination, to require the carrier to hand over to him the air consignment note and to deliver the goods to him, on payment of the charges due and on complying with the conditions of carriage set out in the air consignment note.

(2) Unless it is otherwise agreed, it is the duty of the carrier to give notice to the consignee as soon as the goods arrive.

(3) if the carrier admits the loss of the goods, or if the goods have not arrived at the expiration of seven days after the date on which they ought to have arrived, the consignee is entitled to put into force against the carrier the rights which flow from the contract of carriage.

14. The consignor and the consignee can respectively enforce all the rights given them by Rules 12 and 13, each in his own name, whether he is acting in his own interest or in the interest of another, provided that he carries out the obligations imposed by the contract.

15. (1) Rules 12, 13 and 14 do not affect either the relations of the consignor or the consignee with each other or the mutual relations of third parties whose rights are derived either from the consignor or from the consignee.

(2) The provisions of Rules 12, 13, and 14 can only be varied by express provision in the air consignment note:

Provided that an electronic document of carriage shall be deemed to be a negotiable instrument as defined in Section 13 of the Negotiable Instruments Act, 1881 (XXVI of 1881) and may be dealt with in any manner as a paper document of carriage and the Electronic Transactions Ordinance 2002 shall apply to such electronic document of carriage notwithstanding Section 31(1)(a) of the Electronic Transactions Ordinance 2002.

16. (1) The consignor must furnish such information and attach to the air consignment note such documents as are necessary to meet the formalities of customs, octroi or police before the goods can be delivered to the consignee. The consignor is liable to the carrier for any damage occasioned by the absence, insufficiency or irregularity of any such information or documents, unless the damage is due to the fault of the carrier or his agents.

(2) The carrier is under no obligation to enquire into the correctness or sufficiency or such information or documents.

CHAPTER III

LIABILITY OF THE CARRIER

17. The carrier is liable for damage sustained in the event of the death or wounding of a passenger or any other bodily injury suffered by a passenger, if the accident which caused the damage so sustained took place on board the aircraft or in the course of any of the operations of embarking or disembarking.

18. (1) The carrier is liable for damage sustained in the event of the destruction or loss of, or of damage to, any registered luggage or any goods, if the occurrence which caused the damage so sustained took place during the carriage by air.

(2) The carriage by air within the meaning of the preceding Paragraph comprises the period during which the luggage or goods are in charge of the carrier, whether in an aerodrome or on board an aircraft, or, in the case of a landing outside an aerodrome, in any place whatsoever.

(3) The period of the carriage by air does not extend to any carriage by land, by sea or by river performed outside an aerodrome. If, however, such a carriage takes place in the performance of a contract for carriage by air, for the purpose of loading, delivery or trans-shipment, any damage is presumed, subject to proof to the contrary, to have been the result of an event which took place during the carriage by air.

19. The carrier is liable for damage occasioned by delay in the carriage by air of passengers, luggage or goods.

20. (1) The carrier is not liable if he proves that he and his agents have taken all necessary measures to avoid the damage or that it was impossible for him or them to take such measures.

(2) In the carriage of goods and luggage the carrier is not liable if he proves hat the damage was occasioned by negligent pilotage or negligence in the handling of the aircraft or in navigation and that, in all other respects, he and his agents have taken all necessary measures to avoid the damage.

21. If the carrier proves that the damage was caused by or contributed to by the negligence of the injured person the Court may exonerate the carrier wholly or partly from his liability.

22. (1) In the carriage of passengers the liability of the carrier for each passenger is limited to the sum of 125,000 francs. Where damages may be awarded in the form of periodical payments, the equivalent capital value of the said payments shall not exceed 125,000 francs. Nevertheless, by special contract the carrier and the passenger may agree to a higher limit of liability.

(2) In the carriage of registered luggage and of goods, the liability of the carrier is limited to a sum of 250 francs per kilogram, unless the consignor has made, at the time when the package was handed over to the carrier, a special declaration of the value at delivery and has paid a supplementary sum if the case so requires. In that case the carrier will be liable to pay a sum not exceeding the declared sum, unless he proves that that sum is greater than the actual value to the consignor at delivery.

(3) As regards objects of which the passenger takes charge himself the liability of the carrier is limited to 5,000 francs per passenger.

(4) The sums mentioned in this rule shall be deemed to refer to the French franc consisting of 65-1/2 milligrams gold of milesimal fineness 900.

23. Any provision tending to relieve the carrier of liability or to fix a lower limit than that which is laid down in these rules shall be null and void, but the nullity of any such provision does not involve the nullity of the whole contract, which shall remain subject to the provisions of this Schedule.

24. (1) In the cases covered by Rules 18 and 19 any action for damages, however founded, can only be brought subject to the conditions and limits set out in this Schedule.

(2) In the cases covered by Rule 17 the provisions of sub-rule (1) also apply, without prejudice to the questions as to who are the persons who have the right to bring suit and what are their respective rights.

25. (1) The carrier shall not be entitled to avail himself of the provisions of this Schedule which exclude or limit his liability, if the damage is caused by his willful misconduct or by such default on his part as is in the opinion of the Court equivalent to willful misconduct.

(2) Similarly the carrier shall not be entitled to avail himself of the said provisions, if the damage is caused as aforesaid by any agent of the carrier acting within the scope of his employment.

26. (1) Receipt by the person entitled to delivery of luggage or goods without complaint is prima facie evidence that the same have been delivered in good condition and in accordance with the document of carriage.

(2) In the case of damage, the person entitled to delivery must complain to the carrier forthwith after the discovery of the damage, and, at the latest, within three days from the date of receipt in the case of luggage and seven days from the date of receipt in the case of goods. In the case of delay the complaint must be made at the latest within fourteen days from the date on which the luggage or goods have been placed at his disposal.

(3) Every complaint must be made in writing upon the document of carriage or by separate notice in writing dispatched within the times aforesaid.

(4) Failing complaint within the times aforesaid, no action shall lie against the carrier, save in the case of fraud on his part.

27. In the case of the death of the person liable, an action for damages lies in accordance with these rules against those legally representing his estate.

28. An action for damages must be brought at the option of the plaintiff, either before the Court having jurisdiction where the carrier is ordinarily resident, or has his principal place of business, or has an establishment by which the contract has been made or before the Court having jurisdiction al the place of destination.

29. The right of damages shall be extinguished if an action is not brought within two years, reckoned from the date of arrival at the destination, or from the date on which the aircraft ought to have arrived, or from the date on which the carriage stopped.

30. (1) In the case of carriage to be performed by various successive carriers and falling within the definition set out in sub-rule (4) of Rule 1, each carrier who accepts passengers, luggage or goods is subjected to the rules set out in this Schedule, and is deemed to be one of the contracting parties to the contract of carriage in so far as the contract deals with that part of the carriage which is performed under his supervision.

(2) In the case of carriage of this nature, the passenger or his representative can take action only against the carrier who performed the carriage during which the accident or the delay occurred, save in the case where, by express agreement, the first carrier has assumed liability for the whole journey.

(3) As regards luggage or goods, the passenger or consignor will have a right of action against the first carrier, and the passenger or consignee who is entitled to delivery will have a right of action against the last carrier, and further, each may take action against the carrier who performed the carriage during which the destruction, loss, damage or delay took place. These carriers will be jointly and severally liable to the passenger or to the consignor or consignee.

CHAPTER IV

PROVISIONS RELATING TO COMBINED CARRIAGE

31. (1) In the case of combined carriage performed partly by air and partly by any other mode of carriage, the provisions of this Schedule apply only to the carriage by air, provided that the carriage by air falls within the terms of Rule 1.

(2) Nothing in this Schedule shall prevent the parties in the case of combined carriage from inserting in the document of air carriage conditions relating to other modes of carriage, provided that the provisions of this Schedule are observed as regards the carriage by air.

CHAPTER V

GENERAL AND FINAL PROVISIONS

32. Any clause contained in the contract and all special agreements entered into before the damage occurred by which the parties purport to infringe the rules laid down by this Schedule, whether by deciding the law to be applied, or by altering the rules as to jurisdiction, shall be null and void. Nevertheless for the carriage of goods arbitration clauses are allowed, subject to these rules, if the arbitration is to take place in the territory of one of the High Contracting Parties within One of the jurisdictions referred to in Rule 28.

33. Nothing contained in this Schedule shall prevent the carrier either from refusing to enter into any contract of carriage, or from making regulations which do not conflict with the provisions of this Schedule.

34. This Schedule does not apply to international carriage by air performed by way of experimental trial by air navigation .undertakings with the view to the establishment of a regular line of air navigation, nor does it apply to carriage performed in extraordinary circumstances outside the normal scope of an air carrier's business.

35. The expressing "days" when used in these rules means current days, not working days.

36. When a High Contracting Party has declared at the time of ratification of or of accession to the Convention that the first Paragraph of Article 2 of the convention shall not apply to international carriage by air performed directly by the State, its colonies, protectorates or mandated territories or by any other territory under its sovereignty, suzerainty or authority, these rules shall not apply to international carriage by air so performed.

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THE SECOND SCHEDULE

[See Section 3(2)]

THE WARSAW CONVENTION AS AMENDED AT THE HAGUE, 1955 UNIFICATION OF CERTAIN RULES RELAITNG TO INTERNATIONAL CARRIAGE BY AIR.

RULES

CHAPTER I

SCOPE — DEFINITIONS

1. (1) These rules apply to all international carriage of persons, baggage or goods performed by aircraft for reward. They apply also to such carriage when performed gratuitously by an air transport undertaking.

(2) In these rules "High Contracting Party" means a High Contracting Party to the convention.

(3) For the purposes of these rules the expression "international carriage" means any carriage in which, according to the agreement between the parties, the place of departure and the place of destination, whether or not there be a break in the carriage or a trans-shipment, are situated either within the territories of two High Contracting Parties or within the territory of a single High Contracting Party if there is an agreed stopping place within the territory of another Slate, even if that State is not a High Contracting Party. Carriage between two points within the territory of a single High Contracting Party without an agreed stopping place within the territory of another State is not international carriage for the purposes of these rules.

(4) Carriage to be performed by several successive air carriers is deemed, for the purposes of these rules, to be one undivided carriage if it has been regarded by the parties as a single operation, whether it had been agreed upon under the form of a single contract or of a series of contracts, and it does not lose its international character merely because one contract or a series of contracts is to be performed entirely within the territory of the same State.

2. (1) These rules apply to carriage performed by the State or by, legally constituted public bodies provided it falls within the conditions laid down in Rule 1.

(2) These rules shall not apply to carriage of mail and postal packages.

CHAPTER II

DOCUMENTS OF CARRIAGE

PART I.—Passenger ticket

3. (1) In respect of the carriage of passengers a ticket shall be delivered containing:

(a) an indication of the places of departure and destination;

(b) if the places of departure and destination are within the territory of a single High Contracting Party, one or more agreed stopping places being within the territory of another State, and indication of at least one such stopping place;

(c) a notice to the effect that, if the passenger's journey involves an ultimate destination or stop in a country other than the country of departure, the Warsaw Convention may be applicable and that the Convention governs and in most cases limits the liability of carriers for death or personal injury and in respect of loss of or damage to baggage.

(2) The passenger ticket shall constitute prima facie evidence of the conclusion and conditions of the contract of carriage. The absence, irregularity or loss of the passenger ticket does not affect the existence or the validity of the contract of carriage which shall, none the less, be subject to these rules. Nevertheless, if, with the consent of the carrier, the passenger embarks without a passenger ticket having been delivered, or if the ticket does not include the notice required by sub-Rule 1 (c) of this rule, the carrier shall not be entitled to avail himself of the provisions of Rule 22.

PART II—Baggage check

4. (1) In respect of the carriage of registered baggage, a baggage check shall be delivered, which, unless combined with or incorporated in a passenger ticket which complies with the provisions of Rule 3, sub-rule (1), shall contain:

(a) an indication of the places of departure and destination ;

(b) if the places of departure and destination are within the territory of a single High contracting Party, one or more agreed stopping places being within the territory of another State, an indication of at least one such stopping place;

(c) a notice to the effect that, if the carriage involves an ultimate destination or stop in a country other than the country of departure, the Warsaw Convention may be applicable and that the Convention governs and in most cases limits the liability of carriers in respect of loss of or damage to baggage.

(2) The baggage check shall constitute prima facie evidence of the registration of the baggage and of the conditions of the contract of carriage. The absence, irregularity or loss of the baggage check does not affect the existence or the validity of the contract of carriage which shall, none the less, be subject to these rules. Nevertheless, if the carrier takes charge of the baggage without a baggage check having been delivered or if the baggage check, unless combined with or incorporated in the passenger ticket which complies with the provisions of Rule 3, sub-Rule 1 (c), does not include the notice required by sub-Rule 1 (c) of this rule, he shall not be entitled to avail himself of the provisions of Rule 22, sub-rule (2).

PART III.—Air Waybill

5. (1) Every carrier of goods has the right to require the consignor to make out and hand over to him a document called an "air waybill"; every consignor has the right to require the carrier to accept this document.

(2) The absence, irregularity or loss of this document docs not affect the existence or the validity of the contract of carriage which shall, subject to the provisions of Rule 9, be none the less, governed by these rules.

6. (1) The air waybill shall be made out by the consignor in three original parts and be handed over with the goods.

(2) The first part shall be marked "for the carrier," and shall be signed by the consignor. The second part shall be marked "for the consignee"; it shall be signed by the consignor and by the carrier and shall accompany the goods. The third part shall be signed by the carrier and handed by him to the consignor after the goods have been accepted.

(3) The carrier shall sign prior to the loading of the goods on board the aircraft.

(4) The signature of the carrier may be stamped; that of the consignor may be printed or stamped.

(5) If, at the request of the consignor, the carrier makes out the air waybill, he shall be deemed, subject to proof to the contrary, to have done so on behalf of the consignor.

7. The carrier of goods has the right to require the consignor to make out separate waybills when there is more than one package.

8. The air waybill shall contain:

(a) an indication of the places of departure and destination;

(c) a notice to the consignor to the effect that, if the carriage involves an ultimate destination or stop in a country other than the country of departure, the Warsaw Convention may be applicable and that the Convention governs and in most cases limits the liability of carriers in respect of loss of or damage to goods.

9. If, with the consent of the carrier, goods are loaded on board the aircraft without an air waybill having been made out, or if the air waybill does not include the notice required by Rule 8, Paragraph (c), the carrier shall not be entitled to avail himself of the provisions of Rule 22, sub-rule (2).

10. (1) The consignor is responsible for the correctness of the particulars and statement relating to the goods which he inserts in the airway bill.

(2) The consignor shall indemnify the carrier against all damage suffered by him, or by any other person to whom the carrier is liable, by reason of the irregularity, incorrectness or incompleteness of the particulars and statements furnished by the consignor.

11. (1) The airway bill is prima facie evidence of the conclusion of the contract, of the receipt of the goods and of the conditions of carriage.

(2) The statement in the airway bill relating to the weight, dimensions and packing of the goods, as well as those relating to the number of packages, are prima facie evidence of the facts stated; those relating to the quantity, volume and condition of the goods do not constitute evidence against the carrier except so far as they both have been, and are stated in the airway bill to have been, checked by him in the presence of the consignor, or relate to the apparent condition of the goods.

12. (1) Subject to his liability to carry out all his obligations under the contract of carriage, the consignor has the right to dispose of the goods by withdrawing them at the aerodrome of departure or destination, or by stopping them in the course of the journey on any landing, or by calling for them to be delivered at the place of destination or in the course of the journey to a person other than the consignee named in the airway bill, or by requiring them to be returned to the aerodrome of departure. He must not exercise this right of disposition in such a way as to prejudice the carrier or other consignor and he must repay any expenses occasioned by the exercise of this right.

(2) If it is impossible to carry out the orders of the consignor the carrier must so inform him forthwith.

(3) If the carrier obeys the orders of the consignor for the disposition of the goods without requiring the production of the part of the airway bill delivered to the latter, he will be liable, without prejudice to his right of recovery from the consignor, for any damage which may be caused thereby to any person who is lawfully in possession of that part of the airway bill.

(4) The right conferred on the consignor ceases at the moment when that of the consignee begins in accordance with Rule 13. Nevertheless, if the consignee declines to accept the airway bill or the goods, or if he cannot be communicated with, the consignor resumes his right of disposition.

13. (1) Except in the circumstances set out in Rule 12, the consignee is entitled, on arrival of the goods at the place of destination, to require the carrier to hand over to him the airway bill and to deliver the goods to him, on payment of the charges due and on complying with the conditions of carriage set out in the airway bill.

(2) Unless it is otherwise agreed, it is the duty of the carrier to give notice to the consignee as soon as the goods arrive.

(3) If the carrier admits the loss of the goods, or if the goods have not arrived at the expiration of seven days after the date on which they ought to have arrived, the consignee is entitled to put into force against the carrier the rights which flow from the contract of carriage.

(2) The provisions of Rule 12, 13 and 14 can only be varied by express provision in the airway bill.

(3) Nothing in these rules prevents the issue of a negotiable airway bill:

Provided that an electronic document of carriage shall be deemed to be a negotiable instrument as defined in Section 13 of the Negotiable Instruments Act, 1881 (XXVI of 1881) and may be dealt with in any manner as a paper document of carriage and the Electronic Transactions Ordinance 2002 shall apply to such electronic document of carriage notwithstanding Section 31(I)(a) of the Electronic Transactions Ordinance 2002.

16. (1) The consignor must furnish such information and attach to the airway bill such documents as are necessary to meet the formalities of customs, octroi or police before the goods can be delivered to the consignee. The consignor is liable to the carrier for any damage occasioned by the absence, insufficiency or irregularity of any such information or documents, unless the damage is due to the fault of the carrier or his agents.

(2) The carrier is under no obligation to enquire into the correctness or sufficiency of such information or documents.

CHAPTER III.

LIABILITY OF THE CARRIER

(2) The carriage by air within the meaning of the preceding sub-rule comprises the period during which the luggage or goods are in charge of the carrier, whether in an aerodrome or on board an aircraft, or, in the case of a landing outside an aerodrome, in any place whatsoever.

(3) The period of the carriage by air does not extend to any carriage by land, by sea or by river performed outside an aerodrome. If, however, such a carriage takes place in the performance of a contract for carriage by air, for the purpose of loading, delivery or transshipment, any damage is presumed, subject to proof to the contrary, to have been the result of an event which took place during the carriage by air.

19. The carrier is liable for damage occasioned by delay in the carriage by air of passengers, luggage or goods.

20. The carrier is not liable if he proves that he and his servants or agents have taken all necessary measures to avoid the damage or that it was impossible for him or them to take such measures.

21. If the carrier proves that the damage was caused by or contributed to by the negligence of the injured person the Court may exonerate the carrier wholly or partly from his liability.

22. (1) In the carriage of persons the liability of the carrier for each passenger is limited to the sum of two hundred and fifty thousand francs. Where, in accordance with the law of the Court seized of the case, damages may be said payments shall not exceed two hundred and fifty thousand francs. Nevertheless, by special contract, the carrier and the passenger may agree to a higher limit of liability.

(2) (a) In the carriage of registered baggage and of goods, the liability of the carrier is limited to a sum of two hundred and fifty francs per kilogramme, unless the passenger or consignor has made, at the time when the package was handed over to the carrier, a special declaration of interest in delivery at destination and has paid a supplementary sum if the case as requires. In that case the carrier will be liable to pay a sum not exceeding the declared sum, unless he proves that that sum is greater than the passenger's or consignor's actual interest in delivery at destination.

(b) In the case of loss, damage or delay of part of registered baggage or goods, or of any object contained therein, the weight to be taken into consideration in determining the amount to which the carrier's liability is limited shall be only the total weight of the package or packages concerned. Nevertheless, when the loss, damage or delay of part of the registered baggage or goods, or of an object contained therein, affects the value of other packages covered by the same baggage check or the same airway bill, the total weight of such package or packages shall also be taken into consideration in determining the limit of liability.

(3) As regards objects of which the passenger takes-charge himself the liability of the carrier is limited to five thousand francs per passenger.

(4) The limits prescribed in this rule shall not prevent the Court from awarding, in accordance with its own law, in addition, the whole or part of the Court costs and of the other expenses of the litigation incurred by the plaintiff. The foregoing provision shall not apply if the amount of the damages awarded, excluding Court costs and other expenses of the litigation, does not exceed the sum which the carrier has offered in writing to the plaintiff within a period of six months from the date of the occurrence causing the damage, or before the commencement of the action, if that is later.

(5) The sums mentioned in francs in this rule shall be deemed to refer to a currency unit consisting of sixty-five and a half miligrammes of gold of millesimal fineness nine hundred. These sums may be converted into national currencies in round figures. Conversion of the sums into national currencies other than gold shall, in case of judicial proceedings, be made according to the gold value of such currencies at the date of the judgment.

23. (1) Any provision tending to relieve the carrier of liability or to fix a lower limit than that which is laid down in these rules shall be null and void, but the nullity of any such provision does not involve the nullity of the whole contract, which shall remain subject to the provisions of this Schedule.

(2) Sub-rule (1) of this rule shall not apply to provisions governing loss or damage resulting from the inherent defect, quality or vice of the goods carried.

24. (1) In the cases covered by Rules 18 and 19 any action for damages, however founded, can-only be brought subject to the conditions and limits set out in this Schedule.

(2) In the cases covered by Rule 17 the provisions of sub-rule (1) also apply, without prejudice to the questions as top who are the persons who have the right to bring suit and what are their respective rights.

25. The limits of liability specified in Rule 22 shall not apply if it is proved that the damage resulted from an act or omission of the carrier, his servants or agents, done with intent to cause damage or recklessly and with knowledge that damage would probably result:

Provided that, in the case of such act or omission of a servant or agent it is also proved that he was acting within the scope of his employment.

25A. (1) If an action is brought against a servant or agent of the carrier arising out of damage to which these rules relate, such servant or agent, if he proves that he acted within the scope of his employment, shall be entitled to avail himself of the limits of liability which that carrier himself is entitled to invoke under Rule 22.

(2) The aggregate of the amounts recoverable from the carrier, his servants and agents, in that case, shall not exceed the said limits.

(3) The provisions of sub-rules (1) and (2) of this rule shall not apply if it is proved that the damage resulted from an act or omission of the servant or agent done with intent to cause damage or recklessly and with knowledge that damage would probably result.

(2) In the case of damage, the person entitled to delivery must complain to the carrier forthwith after the discovery of the damage, and, al the latest, within seven days from the date of receipt in the case of baggage and fourteen days from the date of receipt in the case of goods. In the case of delay the complaint must be made at the latest within twenty-one days from the date on which the baggage or goods have been placed at his disposal.

(3) Every complaint must be made in writing upon the document of carriage or by separate notice in writing dispatched within the times aforesaid.

(4) Failing complaint within the times aforesaid, no action shall lie against the carrier, save in the case of fraud on his part.

27. In the case of the death of the person liable, an action for damages lies in accordance with these rules against those legally representing his estate.

29. The right of damages shall be extinguished if an action is not brought within two years, reckoned from the date of arrival at the destination or from the date on which the aircraft ought to have arrived, or from the date on which the carriage stopped.

30. (1) In the case of carriage to be performed by various successive carriers and falling within the definition set out in sub-rule (4) of Rule 1, each carrier who accepts passengers, baggage or goods is subjected to the rules set out in this Schedule, and is deemed to be one of the contracting parties to the contract of carriage in so far as the contract deals with that part of the carriage which is performed under his supervision.

(3) As regards baggage or goods, the passenger or consignor will have a right of action against the first carrier, and the passenger or consignee who is entitled to delivery will have a right of action against the last carrier, and further, each may take action against the carrier who performed the carriage during which the destruction, loss, damage or delay took place. These carriers will be jointly and severally liable to the passenger or to the consignor or consignee.

CHAPTER IV

PROVISIONS RELATING TO COMBINED CARRIAGE

(2) Nothing in this Schedule shall prevent the parties in the case of combined carriage from inserting in the document of air carriage conditions relating to other mode of carriage, provided that the provisions of this Schedule are observed as regards the carriage by air.

CHAPTER V

GENERAL AND FINAL PROVISIONS

34. The provisions of rules 3 to 9 inclusive relating to documents of carriage shall not apply in the case of carriage performed in extraordinary circumstances outside the normal scope of an air carrier's business.

35. The expression "days" when used in these rules means current days, not working days.

36. For the purposes of these rules the word "territory" means not only the metropolitan territory of a State but also all other territories for the foreign relations of which that State is responsible.

37. When a High Contracting Party has declared at the time of ratification of or of accession to the Convention that the first Paragraph of Article 2 of the Convention shall not apply to international carriage by air performed directly by the State, its colonies, protectorates or mandated territories or by any other territory under its sovereignty, suzerainty or authority these rules shall not apply to international carriage by air so performed.

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THE THIRD SCHEDULE

[See Section 3(3)]

THE GUADALAJARA CONVENTION 1961 UNIFICATION OF CERTAIN RULES RELATING TO INTERNATIONAL CARRIAGE BY AIR PERFORMED BY A PERSON OTHER THAN THE CONTRACTING CARRIER

RULES

1. In these rules,—

(a) "Warsaw Convention" means the Convention for the Unification of Certain Rules Relating to International Carriage by Air signed at Warsaw on 12th October, 1929, or the Warsaw Convention as amended at The Hague, 1955, according to whether the carriage under the agreement referred to in Paragraph (b) is governed by the one or by the other;

(b) "Contracting Carrier" means a person who as a principal makes an agreement for carriage governed by the Warsaw Convention with a passenger or consignor or with a person acting on behalf of the passenger or consignor;

(c) "actual carrier" means a person, other than the contracting carrier, who, by virtue of authority from the contracting carrier, performs the whole or part of the carriage contemplated in Paragraph (b) but who is not with respect to such part a successive carrier within the meaning of the Warsaw Convention. Such authority is presumed in the absence of proof to the contrary.

2. If an actual carrier performs the whole or part of carriage which according to the agreement referred to in Article 1. Paragraph (b), is governed by the Warsaw Convention, both the contracting carrier and the actual carrier shall, except as otherwise provided in these rules, be subject to the rules of the Warsaw Convention, the former for the whole of the carriage contemplated in the agreement, the latter solely for the carriage which he performs.

3. The acts and omissions of the actual carrier and of his servants and agents acting within the scope of their employment shall in relation to the carriage performed by the actual carrier, be deemed to be also those of the contracting carrier.

4. The acts and omissions of the contracting carrier and of his servants and agents acting within the scope of their employment shall, in relation to the carriage performed by the actual carrier, be deemed to be also those of the actual carrier. Nevertheless, no such act or omission shall subject the actual carrier to liability exceeding the limits specified in Article 22 of the Warsaw Convention. Any special agreement under which the contracting carrier assumes obligations not imposed by the Warsaw Convention or any waiver of rights conferred by the Convention or any special declaration of interest in delivery at destination contemplated in Article 22 of the said Convention, shall not affect the actual carrier unless agreed to by him.

5. Any complaint to be made or order to be given under the Warsaw Convention to the carrier shall have the same effect whether addressed to the contracting carrier or to the actual carrier. Nevertheless, orders referred to in Article 12 of the Warsaw Convention shall only be effective if addressed to the contracting carrier.

6. In relation to the carriage performed by the actual carrier, any servant or agent of that carrier or of the contracting carrier shall, if he proves that he acted within the scope of his employment, be entitled to avail himself of the limits of liability which are applicable under these rules to the carrier whose servant or agent he is unless it is proved that he acted in a manner which, under the Warsaw Convention, prevents the limits of liability from being invoked.

7. In relation to the carriage performed by the actual carrier, the aggregate of the amounts recoverable from that carrier and the contracting carrier, and from their servants and agents acting within the scope of their employment, shall not exceed the highest amount which could be awarded against either the contracting carrier or the actual carrier under these rules, but none of the persons mentioned shall be liable for a sum in excess of the limit applicable to him.

8. In relation to the carriage performed by the actual carrier, an action for damages may be brought, at the option of the plaintiff, against that carrier or the contracting carrier, or against both together or separately. If the action is brought against only one of those carriers, that carrier shall have the right to require the other carrier to be joined in the proceedings, the procedure and effects being governed by the law of the Court seized of the case.

9. Any action for damages contemplated in Rule 8 must be brought at the option of the plaintiff, either before a Court in which an action may be brought against the contracting carrier, as provided in Article 28 of the Warsaw Convention or before the Court having jurisdiction at the place where the actual carrier is ordinarily resident or has his principal place of business.

10. Any contractual provision tending to relieve the contracting carrier or the actual carrier of liability under these rules or to fix a lower limit than that which is applicable according to these rules shall be null and void, but the nullity of any such provision does not involve the nullity of the whole agreement, which shall remain subject to the provisions of these rules.

11. In respect of the carriage performed by the actual carrier, Rule 10 shall not apply to contractual provisions governing loss or damage resulting from the inherent defect, quality or vice of the cargo carried.

12. Any clause contained in an agreement for carriage and all special agreements entered into before the damage occurred by which the parties purport to infringe these rules, whether by deciding the law to be applied, or by altering the rules as to jurisdiction, shall be null and void. Nevertheless, for the carriage of cargo arbitration clauses are allowed, subject to these rules, if the arbitration is to take place in one of the jurisdictions referred to in Rule 9.

13. Except as provided in Rule 8, nothing in these rules shall affect the rights and obligations of the two carriers between themselves.

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THE FOURTH SCHEDULE

[See Section 3(4)]

THE MONTREAL CONVENTION FOR THE UNIFICATION OF CERTAIN RULES FOR INTERNATIONAL CARRIAGE BY AIR 1999 UNIFICATION OF CERTAIN RULES FOR INTERNATIONAL CARRIAGE BY AIR.

RULES

CHAPTER I

GENERAL PROVISIONS

1. Scope of application.—(1) This Schedule applies to all international carriage of persons, baggage or cargo performed by aircraft for reward. It applies equally to gratuitous carriage by aircraft performed by an air transport undertaking.

(2) For the purposes of this Schedule, the expression "International carriage" means any carriage in which, according to the agreement between the parties, the place of departure and the place of destination, whether or not there be a break in the carriage or a transshipment, are situated either within the territories of two States Parties, or within the territory of a single State Party if there is an agreed stopping place within the territory of another State, even if that State is not a State Party. Carriage between two points within the territory of a single State Party without an agreed stopping place within the territory of another State is not international carriage for the purposes of this Schedule.

(3) Carriage to be performed by several successive carriers is deemed, for the purposes of this Schedule, to be one undivided carriage if it has been regarded by the parties as a single operation, whether it had been agreed upon under the form of a single contract or of a series of contracts, and it does not lose its international character merely because one contract or a series of contracts is to be performed entirely within the territory of the same State.

(4) This Schedule applies also to carriage as set out in Chapter V, subject to the terms contained therein.

2. Carriage performed by State and carriage of postal items.—(1) This Schedule applies to carriage performed by the State or by legally constituted public bodies provided it falls within the conditions laid down in Rule 1.

(2) In the carriage of postal items, the carrier shall be liable only to the relevant postal administration in accordance with the rules applicable to the relationship between the carriers and the postal administrations.

(3) Except as provided in Paragraph 2 of this rule, the provisions of this Schedule shall not apply to the carriage of postal items.

CHAPTER II

DOCUMENTATION AND DUTIES OF THE PARTIES RELATING TO THE CARRIAGE OF PASSENGERS, BAGGAGE AND CARGO

3. Passengers and baggage.—(1) In respect of carriage of passengers, an individual or collective document of carriage shall be delivered containing:

(a) an indication of the places of departure and destination;

(b) if the places of departure and destination are within the territory of a single State Party, one or more agreed stopping places being within the territory of another State, an indication of at least one such stopping place.

(2) Any other means which preserves the information indicated in Paragraph 1 may be substituted for the delivery of the document referred to in that Paragraph. If any such other means is used, the carrier shall offer to deliver to the passenger a written statement of the information so preserved.

(3) The carrier shall deliver to the passenger a baggage identification tag for, each piece of checked baggage.

(4) The passenger shall be given written notice to the effect that where this Schedule is applicable it governs and may limit the liability of carriers in respect of death or injury and for destruction or loss of, or damage to, baggage, and for delay.

(5) Non-compliance with the provisions of the foregoing Paragraphs shall not affect the existence or the validity of the contract of carriage, which shall, nonetheless, be subject to the rules of this Schedule including those relating to limitation of liability.

4. Cargo.—(1) In respect of the carriage of cargo, an airway bill shall be delivered.

(2) Any other means which preserves a record of the carriage to be performed may be substituted for the delivery of an airway bill. If such other means are used, the carrier shall, if so requested by the consignor, deliver to the consignor a cargo receipt permitting identification of the consignment and access to the information contained in the record preserved by such other means.

5. Contents of airway bill or cargo receipt.—The airway bill or the cargo receipt shall include:

(a) an indication of the places of departure and destination;

6. Document relating to the nature of the cargo.—The consignor may be required, if necessary, to meet the formalities of customs, police and similar public authorities, to deliver a document indicating the nature of the cargo. This provision creates for the carrier no duty, obligation or liability resulting therefrom.

7. Description of airway bill.—(1) The airway bill shall be made out by the consignor in three original parts.

(2) The first part shall be marked "for the carrier"; it shall be signed by the consignor. The second part shall be marked "for the consignee"; it shall be signed by the consignor and by the carrier. The third part shall be signed by the carrier who shall hand it to the consignor after the cargo has been accepted.

(3) The signature of the carrier and that of the consignor may be printed or stamped.

(4) If, at the request of the consignor, the carrier makes out the airway bill, the carrier shall be deemed, subject to proof to the contrary, to have done so on behalf of the consignor.

8. Documentation for multiple packages.—When there is more than one package:

(a) the carrier of cargo has the right to require the consignor to make out separate airway bill;

(b) the consignor has the right to right to require the carrier to deliver separate cargo receipts when the other means referred to in Paragraph 2 of rule 4 are used,

9. Non-compliance with documentary requirements.—Non-compliance with the provisions of Rules 4 to 8 shall not affect the existence or the validity of the contract of carriage, which shall, nonetheless, be subject to the rules of this Convention including those relating to limitation of liability.

10. Responsibility for particulars of documentation.—(1) The consignor is responsible for the correctness of the particulars and statements relating to the cargo inserted by it or on its behalf in the airway bill or furnished by it or on its behalf to the carrier for insertion in the cargo receipt or for insertion in the record preserved by the other means referred to in Paragraph 2 of Rule 4. The foregoing shall also apply where the person acting on behalf of the consignor is also the agent of the carrier.

(2) The consignor shall indemnify the carrier against all damage suffered by it, or by any other person to whom the carrier is, liable, by reason of the irregularity, incorrectness or incompleteness of the particulars and statements furnished by the consignor or on its behalf.

(3) Subject to the provision of Paragraph 1 and 2 of this rule, the carrier shall indemnify the consignor against all damage suffered by it, or by any other person to whom the consignor is liable, by reason of the irregularity, incorrectness or incompleteness of the particulars and statement inserted by the carrier or on its behalf in the cargo receipt or in the record preserved by the other means referred to in Paragraph 2 of rule 4.

11. Evidentiary value of documentation.—(1) The airway bill or the cargo receipt is prima facie evidence of the conclusion of the contract, of the acceptance of the cargo and of the conditions of carriage mentioned therein.

(2) Any statements in the airway bill or the cargo receipt relating to the weight, dimensions and packing of the cargo, as well as those relating to the number of packages, are prima facie evidence of the facts stated; those relating to the quantity, volume and condition of the cargo do not constitute evidence against the carrier except so far as they both have been, and are stated in the airway bill or the cargo receipt to have been, checked by it in the presence of the consignor, or relate to the apparent condition of the cargo.

12. Right of disposition of cargo.—(1) Subject to its liability to carry out all its obligations under the contract of carriage, the consignor has the right to dispose of the cargo by withdrawing it at the airport of departure or destination, or by stopping it in the course of the journey on any landing, or by calling for it to be delivered at the place of destination or in the course of the journey to a person other than the consignee originally designated, or by requiring it to be returned to the airport of departure. The consignor must not exercise this right of disposition in such a way as to prejudice the carrier or other consignors and must reimburse any expenses occasioned by the exercise of this right.

(2) If it is impossible to carry out the instructions of the consignor, the carrier must so inform the consignor forthwith.

(3) If the carrier carries out the instructions of the consignor for the disposition of the cargo without requiring the production of the part of the airway bill or the cargo receipt delivered to the latter, the carrier will be liable, without prejudice to its right of recovery from the consignor, for any damage which may be caused thereby to any person who is lawfully in possession of that part of the airway bill or the cargo receipt.

(4) The right conferred on the consignor ceases at the moment when that of the consignee begins in accordance with Rule 13. Nevertheless, if the consignee declines to accept the cargo, or cannot be communicated with, the consignor resumes its right of disposition.

13. Delivery of the cargo.—(1) Except when the consignor has exercised its right under Rule 12, the consignee is entitled, on arrival of the cargo at the place of destination, to require the carrier to deliver the cargo to it, on payment of the charges due and on complying with the conditions of carriage.

(2) Unless it is otherwise agreed, it is the duty of the carrier to give notice to the consignee as soon as the cargo arrives.

(3) If the carrier admits the loss of the cargo, or if the cargo has not arrived at the expiration of seven days after the date on which it ought to have arrived, the consignee is entitled to enforce against the carrier the rights which flow from the contract of carriage.

14. Enforcement of the rights of consignor and consignee.—The consignor and the consignee can respectively enforce all the rights given to them by Rules 12 and 13, each in its own name, whether it is acting in its own interest or in the interest of another, provided that it carries out the obligations imposed by the contract of carriage.

15. Relations of consignor and consignee or mutual relations of third parties.—(1) Rules 12, 13 and 14 do not affect either the relations of the consignor and the consignee with each other or the mutual relations of third parties whose rights are derived either from the consignor or from the consignee.

(2) The provisions of Rules 12, 13 and 14 can only be varied by express provision in the airway bill or the cargo receipt.

(3) Nothing in these rules prevents the issue of a negotiable airway bill:

Provided that an electronic airway bill shall be deemed to be a negotiable instrument as defined in Section 13 of the Negotiable Instruments Act, 1881 (XXVI of 1881) and may be dealt with in any manner as a paper airway bill and the Electronic Transactions Ordinance 2002 shall apply to such electronic airway bill notwithstanding Section 31(1)(a)of the Electronic Transactions Ordinance 2002.

16. Formalities of customs, police or other public authorities.—(1) The consignor must furnish such information and such documents as are necessary to meet the formalities of customs, police and any other public authorities before the cargo can be delivered to the consignee. The consignor is liable to the carrier for any damage occasioned by the absence, insufficiency or irregularity of any such information or documents, unless the damage is due to the fault of the carrier, its servants or agents.

(2) The carrier is under no obligation to enquire into the correctness or sufficiency of such information or documents.

CHAPTER III

LIABILITY OF THE CARRIER AND EXTENT OF COMPENSATIONFOR DAMAGE

17. Death and injury of passengers- damage to baggage.—(1) The carrier is liable for damage sustained in case of death or bodily injury of a passenger upon condition only that the accident which caused the death or injury took place on board the aircraft or the course of any of the operations of embarking or disembarking.

(2) The carrier is liable for damage sustained in case of destruction or loss of, or of damage to, checked baggage upon condition only that the event which caused the destruction, loss or damage took place on board the aircraft or during any period within which the checked baggage was in the charge of the carrier. However, the earner is not liable if and to he extent that the damage resulted from the inherent defect, quality or vice of the baggage. In the case of unchecked baggage, including personal items, the carrier is liable if the damage resulted form its fault or that of its servants or agents.

(3) If the carrier admits the loss of the checked baggage, or if the checked baggage has not arrived at the expiration of twenty-one days after the date on which it ought to have arrived, the passenger is entitled to enforce against the carrier the rights which flow from the contract of carriage.

(4) Unless otherwise specified, in this Schedule the term "baggage" means both checked baggage and unchecked baggage.

18. Damage to cargo.—(1) The carrier is liable for damage sustained in the event of the destruction or loss of, or damage to, cargo upon condition only that the event which caused the damage so sustained took place during the carriage by air.

(2) However, the carrier is not liable if and to the extent it proves that the destruction, or loss of, or damage to, the cargo resulted from one or more of the following:

(a) inherent defect, quality or vice of that cargo;

(b) defective packing of that cargo performed by a person other than the carrier or its servants or agents.

(d) an act of public authority carried out in connection with the entry, exit or transit of the cargo.

(3) The carriage by air within the meaning of Paragraph 1 of this rule comprises the period during which the cargo is in the charge of the carrier.

(4) The period of the carriage by air does not extend to any carriage by land, by sea or by inland waterway performed outside an airport. If, however, such carriage takes place in the performance of a contract for carriage by air, for the purpose of loading, delivery or transshipment, any damage is presumed, subject to proof to the contrary, to have been the result of an event which took place during the carriage by air. If a carrier, without the consent of the consignor, substitutes carriage by another mode of transport for the whole or part of a carriage intended by the agreement between the parties to be carriage by air, such carriage by another mode of transport is deemed to be within the period of carriage by air.

19. Delay.—The carrier is liable for damage occasioned by delay in the carriage by air of passengers, baggage or cargo. Nevertheless, the carrier shall not be liable for damage occasioned by delay if it proves that it and its servants and agents took all measures that could reasonably be required to avoid the damage or that it was impossible for it or them to take such measures.

20. Exoneration.—If the carrier proves that the damage was caused or contributed to by the negligence or other wrongful act or omission of the person claiming compensation, or the person from whom he or she derives his or her rights, the carrier shall be wholly or partly exonerated from its liability to the claimant to the extent that such negligence or wrongful act or omission caused or contributed to the damage. When by reason of death or injury of a passenger compensation is claimed by a person other than the passenger, the carrier shall likewise be wholly or partly exonerated from its liability to the extent that it proves that the damage was caused or contributed to by the negligence or other wrongful act or omission of that passenger. This rule applies to all the liability provisions in this Schedule, including Paragraph 1 of Rule 21.

21. Compensation in case of death or injury of passengers.—(1) For damages arising under Paragraph 1 of Rule 17 not exceeding 100,000 Special Drawing Rights for each passenger, the carrier shall not be able to exclude or limit its liability.

(2) The carrier shall not be liable for damages arising under Paragraph 1 of Rule 17 to the extend that they exceed for each passenger 100,000 Special Drawing Rights if the carrier proves that:

(a) such damage was not due to the negligence or other wrongful act or omission of the carrier or its servants or agents; or

(b) such damage was solely due to the negligence or other wrongful act or omission of a third party.

22. Limits of liability in relation to delay, baggage and cargo.—(1) In the case of damage caused by delay as specified in Rule 19 in the carriage of persons, the liability of the carrier for each passenger is limited to 4,150 Special Drawing Rights.

(2) In the carriage of baggage, the liability of the carrier in the case of destruction, loss, damage or delay is limited to 1,000 Special Drawing Rights for each passenger unless the passenger has made, at the time when the checked baggage was handed over to the carrier, a special declaration of interest in delivery at destination and has paid a supplementary sum if the case so requires. In that case carrier will be liable to pay a sum not exceeding the declared sum, unless it proves that the sum is greater than the passenger's actual interest in delivery at destination.

(3) In the carriage of cargo, the liability of the carrier in the case of destruction, loss, damage or delay is limited to a sum of 17 Special Drawing Rights per kilogramme, unless the consignor has made, at the time when the package was handed over to the carrier, a special declaration of interest in delivery at destination and has paid a supplementary sum if the case so requires. In that case the carrier will be liable to pay a sum not exceeding the declared sum, unless it proves that the sum is greater than the consignor's actual interest in delivery at destination.

(4) In the case of destruction, loss, damage or delay of part of the cargo, or of any object contained therein, the weight to be taken into consideration in determining the amount to which the carrier's liability is limited shall be only the total weight of the 'package or packages concerned. Nevertheless, when the destruction, loss, damage or delay of a part of the cargo, or of an object contained therein, affects the value of other packages covered by the same air waybill, or the same receipt or, if they were not issued, by the same record preserved by the other means referred to in Paragraph 2 of rule 4, the total weight of such package or packages shall also be taken into consideration in determining the limit of liability.

(5) The foregoing provisions of Paragraph 1 and 2 of this rule shall not apply if it is proved that the damage resulted from an act or omission of the carrier, its servants or agents, done with intent to cause damage or recklessly and with knowledge that damage would probably result:

Provided that, in the case of such act or omission of a servant or agent, it is also proved that such servant or agent was acting within the scope of its employment.

(6) The limits prescribed in Rule 21 and in this rule shall not present the Court from awarding, in accordance with its own law, in addition, the whole or part of the Court costs and of the other expenses of the litigation incurred by the plaintiff, including interest. The foregoing provision shall not apply if the amount of the damages awarded, excluding Court costs and other expenses of the litigation, does not exceed the sum which the carrier has offered in writing to the plaintiff within a period of six months from the date of the occurrence causing the damage, or before the commencement of the action, if that is later.

23. Conversion of monetary units.—(1) The sums mentioned in terms of Special Drawing Right In this Schedule shall be deemed to refer to the Special Drawing Right as defined by the International Monetary Fund. Conversion of the sums into national currencies shall, in case of judicial proceedings, be made according to the value of such currencies in terms of the Special Drawing Right at the date of the judgment. The value of a national currency, in terms of the Special Drawing Right, of a State Party which is a Member of the International Monetary Fund, shall be calculated in accordance with the method of valuation applied by the International Monetary Fund, in effect at the date of the judgment, for its operations and transactions. The value of a national currency, in terms of the Special Drawing Right, of a State Party which is not a Member of the International Monetary Fund, shall be calculated in a manner determined by that State.

(2) Nevertheless, those State which are not Members of the International Monetary Fund and whose law does not permit the application of the provisions of Paragraph 1 of this rule may, at the time of ratification or accession or at any time thereafter, declare that the time limit of liability of the carrier prescribed in Rule 21 is fixed at a sum of 1500000 monetary units per passenger in judicial proceedings in their territories; 62500 monetary units per passenger with respect to Paragraph 1 of Rule 22; 15,000 monetary units per passengers with respect to Paragraph 2 of Rule 22; and 250 monetary units per kilogramme with respect to Paragraph 3 of Rule 22, This monetary unit corresponds to sixty-five and a half milligrammes of gold of millesimal fineness nine hundred. These sums may be converted into the national currency concerned in round figures. The conversion of these sums into national currency shall be made according to the law of the State concerned.

(3) The calculation mentioned in the last sentence of Paragraph 1 of this rule and the conversion method mentioned in Paragraph 2 of this rule shall be made in such manner as to express in the national currency of the State Party as far as possible the same real value for the amounts in Rule 21 and 22 as would result from the application of the first three sentences of Paragraph 1 of this rule. States Parties shall communicate to the depositary the manner of calculation pursuant to Paragraph 1 of this rule, or the result of the conversion in Paragraph 2 of this rule as the case may be, when depositing an instrument of ratification, acceptance, approval of or accession to this Schedule and whenever there is a change in either.

24. Review of limits.—(1) Without prejudice to the provisions of Rule 25 of this Schedule and subject to Paragraph 2 below, the limits of liability prescribed in rules 21, 22 and 23 shall be reviewed by the Depositary at five-year intervals, the first such review to take place at the end of the fiffth year following the date of entry into force of the Convention, or if the Convention does not enter into force within five years of the date it is first open for signature, within the first year of its entry into force, by reference to an inflation factor which corresponds to the accumulated rate of inflation since the previous revision or in the first instance since the date of entry into force of the Convention. The measure of the rate of inflation to be used in determining the inflation factor shall be the weighted average of the annual rates of increase or decrease in the Consumer Price Indices of the States whose currencies comprise the Special Drawing Right mentioned in Paragraph 1 of Rule 23.

(2) If the review referred to in the preceding Paragraph concludes that the inflation factor has exceeded 10 per cent, the Depositary shall notify States Parties of a revision of the limits of liability. Any such revision shall become effective six months after its notification to the States Parties. If within three months after its notification to the States Parties a majority of the States Parties register their dis approval, the revision shall not become effective and the Depositary shall refer the matter to a meeting of the States Parties. The Depositary shall immediately notify all States Parties of the coming into force of any revision.

(3) Notwithstanding Paragraph 1 of this rule, the procedure referred to in Paragraph 2 of this rule shall be applied at any time provided that one-third of the States Parties express a desire to that effect and upon condition that the inflation factor referred to in Paragraph 1 has exceeded 30 per cent since the previous revision or since the date of entry into force of this Convention if there has been no previous revision. Subsequent reviews using the procedure described in Paragraph 1 of this rule will take place at five-year intervals starting at the end of the fifth year following the date of the reviews under the present Paragraph.

25. Stipulation on limits.—A carrier may stipulate that the contract of carriage shall be subject to higher limits of liability than those provided for in this Schedule or to no limits of liability whatsoever.

26. Invalidity of contractual provisions.—Any provision tending to relive the carrier of liability or to fix a lower limit than that which is laid down in this Schedule shall be null and void, but the nullity of any such provision does not involve the nullity of the whole contract, which shall remain subject to the provisions of this Schedule.

27. Freedom to contract.—Nothing contained in this Schedule shall prevent the carrier from refusing to enter into any contract of carriage, from waiving any defences available under the Schedule, or from laying down conditions which do not conflict with the provisions of this Schedule..

28. Advance payments.—In the case of aircraft accidents resulting in death or injury of passengers, the carrier shall, if required by its national law, make advance payments without delay to a natural person or persons who are entitled to claim compensation in order to meet the immediate economic needs of such persons. Such advance payments shall not constitute a recognition of liability and may be offset against any amounts subsequently paid as damages by the carrier.

29. Basis of claims.—In the carriage of passengers, baggage and cargo, any action for damages, however founded, whether under this Schedule or in contract or in tort or otherwise, can only be brought subject to the conditions and such limits of liability as are set out in this Schedule without prejudice to the question as to who are the persons who have the right to bring suit and what are their respective rights. In any such action, punitive, exemplary or any other non-compensatory damages shall not be recoverable.

30. Servants, agents—Aggregation of claims.—(1) If any action is brought against a servant or agent of the carrier arising out of damage to which this Schedule relates, such servants or agent, if they prove that they acted within the scope of their employment, shall be entitled to avail themselves of the conditions and limits of liability which the carrier itself is entitled to invoke under this Schedule.

(2) The aggregate of the amounts recoverable from the carrier, its servants and agents, in that case, shall not exceed the said limits.

(3) Save in respect of the carriage of cargo, the provisions of Paragraph 1 and 2 of this rule shall not apply if it is proved that the damage resulted from an act or omission of the servant or agent done with intent to cause damage or recklessly and with knowledge that damage would probably result.

31. Timely notice of complaints.—(1) Receipt by the person entitled to delivery of checked baggage or cargo without complaint is prima facie evidence that the same has been delivered in good condition and in accordance with the document of carriage or with the record preserved by the other means referred to in Paragraph 2 of Rule 3 and Paragraph 2 of rule 4.

(2) In the case of damage, the person entitled to delivery must complain to the carrier forthwith after the discovery of the damage, and, at the latest, within seven days from the date of receipt in the case of checked baggage and fourteen days from the date of receipt in the case of cargo. In the case of delay, the complaint must be made at the latest within twenty-one days from the date on which the baggage or cargo have been placed at his or her disposal.

(3) Every complaint must be made in writing and given or dispatched within the times aforesaid.

(4) If no complaint is made within the times aforesaid, no action shall lie against the carrier, save in the case of fraud on its part.

32. Death of person liable.--In the case of the death of the person liable, an action for damages lies in accordance with the terms of this Schedule against those legally representing his or her estate.

33. Jurisdiction.—(1) An action for damages must be brought, at the option of the plaintiff, in the territory of one of the State Parties, either before the Court of the domicile of the carrier or of its principal place of business, or where it has a place of business through which the contract has been made or before the Court at the place of destination.

(2) In respect of damage resulting from the death or injury of a passenger, an action may be brought before one of the Courts mentioned in Paragraph I of this rule, or in the territory of a State Party in which at the time of the accident the passenger has his or her principal and permanent residence and to or from which the carrier operates services for the carriage of passengers by air, either on its own aircraft or on another carrier's aircraft pursuant to a commercial agreement, and in which that carrier conducts its business of carriage of passengers by air from premises leased or owned by the carrier itself or by another carrier with which it has a commercial agreement.

(3) For the purposes of Paragraph 2,—

(a) "commercial agreement" means an agreement, other than an agency agreement, made between carriers and relating to the provision of their joint services for carriage of passengers by air;

(b) "principal and permanent residence" means the one fixed and permanent abode of the passenger at the time of the accident. The nationality of the passenger shall not be the determining factor in this regard.

34. Arbitration.—(1) Subject to the provisions of this rule, the parties to the contract of carriage for cargo may stipulate that any dispute relating to the liability of the carrier under this Schedule shall be settled by arbitration. Such agreement shall be in writing.

(2) the arbitration proceedings shall, at the option of the claimant, take place within one of the jurisdictions referred to in Rule 33.

(3) the arbitrator or arbitration tribunal shall apply the provisions of this Schedule.

(4) The provisions of Paragraphs 2 and 3 of this rule shall be deemed to be part of every arbitration clause or agreement, and any term of such clause or agreement which is inconsistent therewith shall be null and void.

35. Limitation of actions.—The right to damages shall be extinguished if an action is not brought within a period of two years, reckoned from the date of arrival at the destination, or from the date on which the aircraft ought to have arrived, or from the date on which the carriage stopped.

36. Successive carriage.—(1) In the case of-carriage to be performed by various successive carriers and falling within the definition set out in Paragraph 3 of Rule 1, each carrier which accepts passengers, baggage or cargo is subject to the rules set out in this Schedule and is deemed to be one of the parties to the contract of carriage in so far as the contract deals with that part of the carriage which is performed under its supervision.

(2) In the case of carriage of this nature, the passenger or any person entitled to compensation in respect of him or her can take action only against the carrier which performed the carriage during which the accident or the delay occurred, save in the case where, by express agreement, the first carrier has assumed liability for the whole journey.

(3) As regards baggage or cargo, the passenger or consignor will have a right of action against the first carrier, and the passenger or consignee who is entitled to delivery will have a right of action against the last carrier, and further, each may take action against the carrier which performed the carriage during which the destruction, loss, damage or delay took place. These carriers will be jointly and severally liable to the passenger or to the consignor or consignee.

37. Right of recourse against third parties.—Nothing in this Schedule shall prejudice the question whether a person liable for damage in accordance with its provisions has a right of recourse against any other person.

CHAPTER-IV

COMBINED CARRIAGE

38. Combined carriage.—(1) In the case of combined carriage performed partly by air and partly by any other mode of carriage, the provisions of this Schedule shall, subject to Paragraph 4 of Rule 18, apply only to the carriage by air, provided that the carriage by air falls within the terms of Rule 1.

CHAPTER-V

CARRIAGE BY AIR PERFORMED BY A PERSON OTHER THAN THE CONTRACTING CARRIER

39. Contracting carrier —Actual carrier.—The provisions of this Chapter apply when a person (hereinafter referred to as "the contracting carrier") as a principal makes a contract of carriage governed by this Schedule with a passenger or consignor or with a person acting on behalf of the passenger or consignor, and another person (hereinafter referred to as "the actual carrier") performs, by virtue of authority from the contracting carrier, the whole or part of the carriage, but is not with respect to such part a successive carrier within the meaning of this Schedule. Such authority shall be presumed in the absence of proof to the contrary.

40. Respective liability of contracting and actual carriers.—If an actual carrier performs the whole or part of carriage which, according to the contract referred to in Rule 39, is governed by this Schedule, both the contracting carrier and the actual carrier shall, except as otherwise provided in this Chapter, be subject to the rules of this Schedule, the former for the whole of the carriage contemplated in the contract, the latter solely for the carriage which it performs.

41. Mutual liability.—(1) The acts and omissions of the actual carrier and of its servants and agents acting within the scope of their employment shall, in relation to the carriage performed by the actual carrier, be deemed to be also those of the contracting carrier.

(2) The acts and omissions of the contracting carrier and of its servants and agents acting within the scope of their employment shall, in relation to the carriage performed by the actual carrier, be deemed to be also those of the actual carrier. Nevertheless, no such act or omission shall subject the actual carrier to liability exceeding the amounts referred to in rules 21, 22, 23 and 24. Any special agreement under which the contracting carrier assumes obligations not imposed by this Schedule or any waiver of rights or defences conferred by this Schedule or any special declaration of interest in delivery at destination contemplated in Rule 22 shall not affect the actual carrier unless agreed to by it.

42. Addressee of complaints and instructions.—Any complaint to be made or instruction to be given under this Schedule to the carrier shall have the same effect whether addressed to the contracting carrier or to the actual carrier. Nevertheless, instructions referred to in Rule 12 shall only be effective if addressed to the contracting carrier.

43. Servants and agents.—In relation to the carriage performed by the actual carrier, any servant or agent of that carrier or of the contracting carrier shall, if they prove that they acted within the scope of their employment, be entitled to avail themselves of the conditions and limits of liability which are applicable under this Schedule to the carrier whose servant or agent they are, unless it is proved that they acted in a manner that prevents the limits of liability from being invoked in accordance with this Schedule.

44. Aggregation of damages.—In relation to the carriage performed by the actual carrier, the aggregate of the amounts recoverable from that carrier and the contracting carrier, and from their servants and agents acting within the scope of their employment, shall not exceed the highest amount which could be awarded against either the contracting carrier or the actual carrier under this Schedule, but none of the persons mentioned shall be liable for a sum in excess of the limit applicable to that person.

45. Addressee of claims.—In relation to the carriage performed by the actual carrier, an action for damages may be brought, at the option of the plaintiff, against that carrier or the contracting carrier, or against both together or separately. If the action is brought against only one of those carriers, that carrier shall have the right to require the other carrier to be joined in the proceedings.

46. Additional jurisdiction.—Any action for damages contemplated in rule 45 must be brought, at the option of the plaintiff, in the territory of one of the States Parties, either before a Court in which an action may be brought against the contracting carrier, as provided in Rule 33, or before the Court having jurisdiction at the place where the actual carrier has its domicile or its principal place of business.

47. Invalidity of contractual provisions.—Any contractual provision tending to relieve the contracting carrier or the actual carrier of liability under this Chapter or to fix a lower limit than that which is applicable according to this Chapter shall be null and void, but the nullity of any such provision does not involve the nullity of the whole contract, which shall remain subject to the provisions of this Chapter.

48. Mutual relations of contracting and actual carriers.—Except as provided in Rule 45, nothing in this Chapter shall affect the rights and obligations of the carriers between themselves, including any right of recourse or indemnification.

CHAPTER-VI

OTHER PROVISIONS

49. Mandatory application.—Any clause contained in the contract of carriage and all special agreements entered into before the damage occurred by which the parties purport to infringe the rules laid down by this Schedule, whether by deciding the law to be applied, or by altering the rules as to jurisdiction, shall be null and void.

50. Insurance.—States Parties shall require their carriers to maintain adequate insurance covering their liability under this Schedule. A carrier may be required by the State Party into which it operates to furnish evidence that it maintains adequate insurance covering its liability under this Schedule.

51. Carriage performed in extraordinary circumstances.—The provisions of Rules 3 to 5, 7 and 8 relating to the documentation of carriage shall not apply in the case of carriage performed in extraordinary circumstances outside the normal scope of a carrier's business.

52. Definition of days.—The expression "days" when used in this Schedule means calendar days, not working days.

CHAPTER-VII

FINAL CLAUSES

53. Signature, Ratification and Entry into Force.—(1) This Convention shall be open for signature in Montreal on 28 May, 1999 by States participating in the International Conference on Air Law held at Montreal from 10 to 28 May, 1999. After 28 May, 1999, the Convention shall be open to all States for signature at the headquarters of the International Civil Aviation Organization in Montreal until it enters into force in accordance with Paragraph 6 of this Article.

(2) This Convention shall similarly be open for signature by Regional Economic Integration Organizations. For the purpose of this Convention, a "Regional Economic Integration Organization" means any organization which is constituted by sovereign States of a given region which has competence in respect of certain matters governed by this Convention and has been duly authorized to sign and to ratify, accept, approve or accede to this Convention. A reference to a "State Party" or "Stales Parties" in this Convention, otherwise than in Paragraph 2 of Article 1, Paragraph l(b) of Article 3, Paragraph (b) of Article 5, Articles 23, 33, 46 and Paragraph (b) of Article 57, applies equally to a Regional Economic Integration Organization. For the purpose of Article 24, the references to "a majority of the States Parties" and "one-third of the States Parties" shall not apply to a Regional Economic Integration Organization.

(3) This Convention shall be subject to ratification by States and by Regional Economic Integration Organizations which have signed it.

(4) Any State or Regional Economic Integration Organization which does not sign this Convention may accept, approve or accede to it at any time.

(5) Instruments of ratification, acceptance, approval or accession shall be deposited with the International Civil Aviation Organization, which is hereby designated the Depositary,

(6) This Convention shall enter into force on the sixtieth day following the date of deposit of the thirtieth instrument of ratification, acceptance, approval or accession with the Depositary between the States which have deposited such instrument. An instrument deposited by a Regional Economic Integration Organization shall not be counted for the purpose of this Paragraph.

(7) For other States and for other Regional Economic Integration Organizations, this Convention shall take effect sixty days following the date of deposit of the instrument of ratification, acceptance, approval or accession.

(8) The Depositary shall promptly notify all signatories and States Parties of:

(a) each signature of this Convention and date thereof;

(b) each deposit of an instrument of ratification, acceptance, approval or accession and date thereof;

(d) the date of the coming into force of any revision of the limits of liability established under this Convention;

(e) any denunciation under Article 54.

54. Denunciation.—(1) Any State Party may denounce this Convention by written notification to the Depositary.

(2) Denunciation shall take effect one hundred and eighty days following the date on which notification is received by the Depositary.

55. Relationship with other Warsaw Convention Instruments.—This Convention shall prevail over any rules which apply to international carriage by air:

(1) between States Parties to this Convention by virtue of those States commonly being Party to:

(a) the Convention for the Unification of Certain Rules relating to International Carriage by Air signed at Warsaw on 12 October, 1929 (hereinafter called the Warsaw Convention);

(b) the Protocol to amend the Convention for the Unification of Certain Rules relating to International Carriage by Air signed at Warsaw on 12 October, 1929, done at he Hague on 28 September, 1955 (hereinafter called The Hague Protocol);

(c) the Convention, Supplementary to the Warsaw Convention, for the Unification of Certain Rules relating to International Carriage by Air Performed by a Person other than the Contracting Carrier, signed at Guadalajara on 18September, 1961 (hereinafter called the Guadalajara Convention);

(d) the Protocol to amend the Convention for the Unification of Certain Rules relating to International Carriage by Air signed at Warsaw on 12 October, 1929 as amended by the Protocol done at The Hague on 28 September, 1955, signed at Guatemala City on 8 March, 1971 (hereinafter called the Guatemala City Protocol);

(e) Additional Protocol Nos. 1 to 3 and Montreal Protocol No. 4 to amend the Warsaw Convention as amended by The Hague protocol or the Warsaw Convention as amended by both The Hague Protocol and the Guatemala City Protocol, signed at Montreal on 25 September, 1975 (hereinafter called the Montreal Protocols); or

(2) within the territory of any single State Party to this Convention by virtue of that State being Party to one or more of the instruments referred to in sub-Paragraphs (a) to (e) above.

56. States with more than one System of Law.—(1) If a Stale has two or more territorial units in which different systems of law are applicable in relation to matters dealt with in this Convention, it may at the time of signature, ratification, acceptance, approval or accession declare that this Convention shall extend to all its territorial units or only to one or more of them and may modify this declaration by submitting another declaration at any time.

(2) Any such declaration shall be notified to the Depositary and shall state expressly the territorial units to which the Convention applies.

(3) In relation to a State Party which has made such a declaration:

(a) references in Article 23 to "national currency" shall be construed as referring to the currency of the relevant territorial unit of that State; and

(b) the reference in Article 28 to "national law" shall be construed as referring to the law of the relevant territorial unit of that State.

57. Reservations.—No reservation may be made to this Convention except that a State Party may at any time declare by a notification addressed to the Depositary that this Convention shall not apply to:

(a) international carriage by air performed and operated directly by that State Party for non-commercial purposes in respect to its functions and duties as a sovereign State; and/or

(b) the carriage of persons, cargo and baggage for its military authorities on aircraft registered in or leased by that State Party, the whole capacity of which has, been reserved by or on behalf of such authorities.

-----------

THE FIFTH SCHEDULE

[See Section 5]

APPLICABLE RULES RELATING TO CARRIAGE BY AIR WHICH IS NOT INTERNATIONAL

RULES

CHAPTER I

GENERAL PROVISIONS

1. Scope of application.—(1) This Schedule applies to all carriage of passengers, baggage and cargo performed by aircraft for reward.

(2) This Schedule applies also to carriage as set out in Chapter-V, subject to the terms contained therein.

2. Carriage performed by State and carriage of postal items.—These rules do not apply to the carriage of postal packets performed under terms of any international Postal Convention or of postal packets as defined under any law for the time being in force in Pakistan regarding transport of mail.

CHAPTER-II

DOCUMENTATION AND DUTIES OF THE PARTIES RELATING TO THE CARRIAGE OF PASSENGERS, BAGGAGE AND CARGO

3. Passengers and baggage.—(1) In respect of carriage of passengers, an individual or collective document of carriage shall be delivered containing an indication of the places of departure and destination.

(3) The carrier shall deliver to the passenger a baggage identification tag for each piece of checked baggage.

4. Cargo.—(1) In respect of carriage of cargo, an airway bill shall be delivered.

5. Contents of airway bill or cargo receipt.—The airway bill or the cargo receipt shall include:

(a) an indication of the places of departure and destination; and

(b) an indication of the weight of the consignment.

7. Description of airway bill.—(1) The airway bill shall be made out by the consignor in three original parts.

(3) The signature of the carrier and that of the consignor may be printed or stamped.

(4) If, at the request of the consignor, the carrier makes out the air waybill, the carrier shall be deemed, subject to proof to the contrary, to have done so on behalf of the consignor.

8. Documentation for multiple packages.—When there is more than one package:

(a) the carrier of cargo has the right to require the consignor to make out separate airway bills;

(b) The consignor has the right to require the carrier to deliver separate cargo receipts when the other means referred to in Paragraph 2 of Rule 4 are used.

(2) The consignor shall indemnify the carrier against all damage suffered by it, or by any other person to whom the carrier is liable, by reason of the irregularity, incorrectness or incompleteness of the particulars and statements furnished by the consignor or on its behalf

(3) Subject to the provisions of Paragraphs 1 and 2 of this Rule, the carrier shall indemnify the consignor against all damage suffered by it, or by any other person to whom the consignor is liable, by reason of the irregularity, incorrectness or incompleteness of the particulars and statements inserted by the carrier or on its behalf in the cargo receipt or in the record preserved by the other means referred to in Paragraph 2 of Rule 4.

(2) Any statements in the air waybill or the cargo receipt relating to the weight, dimensions and packing of the cargo, as well as those relating to the number of packages, are prima facie evidence of the facts stated; those relating to the quantity, volume and condition of the cargo do not constitute evidence against the carrier except so far as they both have been, and are stated in the air waybill or the cargo receipt to have been, checked by it in the presence of the consignor, or relate to the apparent condition of the cargo.

12. Right of disposition of cargo.—(1) Subject to its liability to carry out all its obligations under the contract of carriage, the consignor has the right to dispose of the cargo by withdrawing it at the airport of departure of destination, or by stopping it in the course of the journey on any landing, or by calling for it to be delivered at the place of destination or in the course of the journey to a person other than the consignee originally designated, or by requiring it to be returned to the airport of departure. The consignor must not exercise this right of disposition in such a way as to prejudice the carrier or other consignors and must reimburse any expenses occasioned by the exercise of this right.

(2) If it is impossible to carry out the instructions of the consignor, the carrier must so inform the consignor forthwith.

(2) Unless it is otherwise agreed, it is the duty of the carrier to give notice to the consignee as soon as the cargo arrives.

(3) if the carrier admits the loss of the cargo, or if the cargo has not arrived at the expiration of seven days after the date on which it ought to have arrived, the consignee is entitled to enforce against the carrier the rights which flow from the contract of carriage.

14. Enforcement of the rights of consignor of consignee.—The consignor and the consignee can respectively enforce all the rights given to them by Rules 12 and 13, each in its own name, whether it is acting in its own interest or in the interest of another, provided that it carries out the obligations imposed by the contract of carriage.

(2) The provisions of Rules 12, 13 and 14 can only be varied by express provision in the air waybill or the cargo receipt.

(3) Nothing in these rules prevents the issue of a negotiable, airway bill:

16. Formalities of customs, police or other public authorities.—(1) the consignor must furnish such information and such documents as are necessary to meet the formalities of customs, octroi or police and any other public authorities before the cargo can be delivered to the consignee. The consignor is liable to the carrier for any damage occasioned by the absence, insufficiency or irregularity of any such information or documents, unless the damage is due to the fault of the carrier, its servants or agents.

(2) The carrier is under no obligation to enquire into the correctness or sufficiency of such information or documents.

CHAPTER III

LIABILITY OF THE CARRIER AND EXTENT OF COMPENSATION FOR DAMAGE

17. Death and injury of passengers—damage to baggage.—(1) The carrier is liable for damage sustained in case of death or bodily injury of a passenger upon condition only that the accident which caused the death or injury took place on board the aircraft or in the course of any of the operations of embarking or disembarking.

(2) The carrier is liable for damage sustained in the case of destruction or loss of, or of damage to, checked baggage upon condition only that the event which caused the destruction, loss or damage took place on board the aircraft or during any period within which the checked baggage was in the charge of the carrier. However, the carrier is not liable if and to the extent that the damage resulted from the inherent defect, quality or vice of the baggage. In the case of unchecked baggage, including personal items, the carrier is liable if the damage resulted from its fault or that of its servants or agents.

(4) Unless otherwise specified, in this Schedule the term "baggage" means both checked baggage and unchecked baggage.

(2) However, the carrier is not liable if and to the extent it proves that the destruction, or loss of, or damage to, the cargo resulted from one or more of the following:

(a) inherent defect, quality or vice of that cargo;

(b) defective packing of that cargo performed by a person other than the carrier or its servants or agents;

(d) an act of public authority carried out in connection with the entry, exit or transit of the cargo.

(3) The carriage by air within the meaning of Paragraph 1 of this Rule comprises the period during which the cargo is in the charge of the carrier.

(4) The period of the carriage by air does not extend to any carriage by land, by sea or by inland waterway performed outside an airport. If, however, such carriage takes place in the performance of a contract for carriage by air, for the loading, delivery or transshipment, any damage is presumed, subject to proof to the contrary, to have been the result of an event which took place during the carriage by air. If a carrier, without the consent of the consignor, substitutes carriage by another mode of transport for the whole or part of a carriage intended by the agreement between the parties to be carriage by air, such carriage by another mode of transport is deemed to be within the period of carriage by air.

20. Exoneration.—If the carrier proves that the damage was caused or contributed to by the negligence or other wrongful act or omission of the person claiming compensation, or the person from whom he or she derives his or her rights, the carrier shall be wholly or partly exonerated from its liability to the claimant to the extent that such negligence or wrongful act or omission caused or contributed to the damage. When by reason of death or injury of a passenger compensation is claimed by a person other than the passenger, the carrier shall likewise be wholly or partly-exonerated from its liability to the extent that it proves that the damage was caused or contributed to by the negligence or other wrongful act or omission of that passenger. This Rules applies to all the liability provisions in this Schedule, including Paragraph 1 of Rule 21.

21. Compensation in case of death or injury of passengers.—(1) For damages arising under Paragraph 1 of Rule 17 not exceeding Rs. 50,00,000/-for each passenger, the carrier shall not be able to exclude or limit its liability.

(2) The carrier shall not be liable for damages arising under Paragraph 1 of Rule 17 to the extent that they exceed for each passenger Rs.50,00,000/- if it is proved that:

(a) such damage was not due to the gross negligence, intent to cause damage, willful misconduct or omission of the carrier or its servants or agents; or

(b) such damage was solely due to the gross negligence, intent to cause damage, willful misconduct or omission of a third party.

22. Limits of liability in relation to delay, baggage and cargo.—(1) The carrier is liable for damage occasioned by delay in the carriage by air of passengers, baggage or cargo to the extent of the amount of any such damage which may be proved to have been sustained by reason of such delay or of an amount representing double the sum paid for the carriage, whichever amount may be smaller:

Provided that the carrier may, in special circumstances, by special and separate contract in writing expressly by drawing specific and highly conspicuous attention of such a clause exclude, increase or decrease the limit of his liability as above provided.

(2) In the carriage of baggage, the liability of the carrier in the case of destruction, loss, or damage is limited to Rs, 1000 per kilogramme for each passenger unless the passenger has made, at the time when the checked baggage was handed over to the carrier, a special declaration of interest in delivery at destination and has paid a supplementary sum if the case so requires. In that case the carrier will be liable to pay a sum not exceeding the declared sum, unless it proves that the sum is greater than the passenger's actual interest in delivery at destination.

(3) In the carriage of cargo, the liability of the carrier in the case of destruction, loss, or damage is limited to a sum of Rs. 1000 per kilogramme, unless the consignor has made, at the time when the package was handed over to the carrier, a special declaration of interest in delivery at destination and has paid a supplementary sum if the case so requires. In that case the carrier will be liable to pay a sum not exceeding the declared sum, unless it proves that the sum is greater than the consignor's actual interest in delivery at destination.

(4) In the case of destruction, loss, or damage of the part of the cargo, or of any object contained therein, the weight to be taken into consideration in determining the amount to which the carrier's liability is limited, shall be only the total weight of the package or packages concerned. Nevertheless, when the destruction, loss, or damage of a part of the cargo, or of an object contained therein, affects the value of other packages covered by the same airway bill, or the same receipt or, if they were not issued, by the same record preserved by the other means referred to in Paragraph 2 of Rule 4, the total weight of such package or packages shall also be taken into consideration in determining the limit of liability.

(5) The foregoing provisions of Paragraphs 1 and 2 of this Rule shall not apply if it is proved that the damage resulted from an act or omission of the carrier, its servants or agents, done as a result of gross negligence, wilful misconduct or with intent to cause damage:

Provided that, in the case of such act or omission of a servant or agent, it is also proved that such servant or agent was acting within the scope of its employment.

(6) The limits prescribed in Rule 21 and in this Rule shall not prevent the Court from awarding in addition, the whole or part of the Court costs and of the other expenses of the litigation incurred by the plaintiff, including interest. The foregoing provision shall not apply if the amount of the damages awarded, excluding Court costs and other expenses of the litigation, does not exceed the sum which the carrier has offered in writing to the plaintiff within a period of twelve months from the date of the occurrence causing the damage, or before the commencement of the action, whichever is later.

23. Review of limits.—Without prejudice to the provisions of Rule 24 of this Schedule the limits of liability prescribed in Rules 21 and 22 shall be reviewed by the Federal Government as provided in Section 4(5) of this Bill at five-year intervals.

24. Stipulation on limits.--A carrier may stipulate that the contract of carriage shall be subject to higher limits of liability than those provided for in this Schedule or to no limits of liability whatsoever.

25. Invalidity of contractual provisions.—Any provision tending to relieve the carrier of liability or to fix a lower limit than that which is laid down in this Schedule shall be null and void, but the nullity of any such provision does not involve the nullity of the whole contract, which shall remain subject to the provisions of this Schedule.

26. Freedom to contract.—Nothing contained in this Schedule shall prevent the carrier from refusing to enter into any contract of carriage, from waiving any defences available under the Schedule, or from laying down conditions which do not conflict with the provisions of this Schedule.

27. Advance payments.—In the case of aircraft accidents resulting in death or injury of passengers, the carrier shall, if required by its national law, make advance payments without delay to a natural person or persons who are entitled to claim compensation in order to meet the immediate economic needs of such persons. Such advance payments shall not constitute a recognition of liability and may be offset against any amounts subsequently paid as damages by the carrier.

28. Basis of claims.—In the carriage of passengers, baggage and cargo, any action for damages, however founded, whether under this Schedule or in contract or in tort or otherwise, can only be brought subject to the conditions and such limits of liability as are set out in this Schedule without prejudice to the question as to who are the persons who have the right to bring suit and what are their respective rights. In any such action, punitive, exemplary or any other non-compensatory damages shall not be recoverable.

29. Servants, agents - aggregation of claims.—(1) If an action is brought against a servant or agent of the carrier arising out of damage to which the Schedule relates, such servant or agent, if they prove that they acted within the scope of their employment, shall be entitled to avail themselves of the conditions and limits of liability which the carrier itself is entitled to invoke under this Schedule.

(2) The aggregate of the amounts recoverable from the carrier, its servants and agents, in that case, shall not exceed the said limits.

(3) Save in respect of the carriage of cargo, the provisions of Paragraphs 1 and 2 of this Rule shall not apply if it is proved that the damage resulted from an act or omission of the servant or agent done as a result of gross negligence, willful misconduct or with intent to cause damage.

30. Timely notice of complaints.—(1) Receipt by the person entitled to delivery of checked baggage or cargo without complaint is prima facie evidence that the same has been delivered in good condition and in accordance with the document of carriage or with the record preserved by the other means referred to in Paragraph 2 of Rule 3 and Paragraph 2 of Rule 4.

(2) In the case of damage, the person entitled to delivery must complain to the carrier forthwith after the discovery of the damage, and, at the latest, within three days from the date of receipt in the case of checked baggage and seven days from the date of receipt in the case of cargo. In the case of delay, the complaint must be made at the latest within fourteen days from the date on which the baggage or cargo have been placed at his or her disposal.

(3) Every complaint must be made in writing and given or dispatched within the times aforesaid.

(4) if no complaint is made within the times aforesaid, no action shall lie against the carrier, save in the case of fraud on its part.

31. Death of person liable.—In the case of the death of the person liable, an action for damages lies in a accordance with the terms of this Schedule against those legally representing his or her estate.

32. Arbitration.—Subject to the provisions of this Rule, the parties to the contract of carriage for cargo may stipulate that any dispute relating to the liability of the carrier under this Schedule shall be settled by arbitration. Such agreement shall be in writing.

(2) The arbitrator or arbitration tribunal shall apply the provisions of this Schedule.

(3) The provisions of Paragraph 2 of this Rule shall be deemed to be part of every arbitration clause or agreement, and any term of such clause or agreement which is inconsistent therewith shall be null and void.

33. Limitation of actions.—The right to damages shall be extinguished if an action is not brought within a period of two years, reckoned from the date of arrival at the destination, or from the date on which the aircraft ought to have arrived, or from the date on which the carriage stopped.

34. Successive carriage.—(1) In the case of carriage to be performed by various successive carriers, each carrier which accepts passengers, baggage or cargo is subject to the rules set out in this Schedule and is deemed to be one of the parties to the contract of carriage in so far as the contract deals with that part of the carriage which is performed under its supervision.

35. Right of recourse against third parties.—Nothing in this Schedule shall prejudice the question whether a person liable for damage in accordance with its provisions has a right of recourse against any other person.

CHAPTER-IV

COMBINED CARRIAGE

36. Combined carriage.—(1) In the case of combined carriage performed partly by air and partly by any other mode of carriage, the provisions of this Schedule shall, subject to Paragraph 4 of Rule 18, apply to the carriage by air.

CHAPTER-V

CARRIAGE BY AIR PERFORMED BY A PERSON OTHER THAN THE CONTRACTING CARRIER

37. Contracting carrier - actual carrier.—The provisions of this Chapter apply when a person (hereinafter referred to as "the contracting carrier") as a principal makes a contract of carriage governed by this Schedule with a passenger or consignor or with a person acting on behalf of the passenger or consignor, and another person (hereinafter referred to as "the actual carrier") performs, by virtue of authority from the contracting carrier, the whole or part of the carriage, but is not with respect to such part a successive carrier within the meaning of this Schedule. Such authority shall be presumed in the absence of proof to the contrary.

38. Respective liability of contracting and actual carriers.—If an actual carrier performs the whole or part of carriage which, according to the contract referred to in Rule 37, is governed by this Schedule, both the contracting carrier and the actual carrier shall, except as otherwise provided in this Chapter, be subject to the rules of this Schedule, the former for the whole of the carriage contemplated in the contract, the latter solely for the carriage which it performs.

39. Mutual liability.—(1) The acts and omissions of the actual carrier and of its servants and agents acting within the scope of their employment shall, in relation to the carriage performed by the actual carrier, be deemed to be also those of the contracting carrier.

(2) The acts and omissions of the contracting carrier and of its servants and agents acting within the scope of their employment shall, in relation to the carriage performed by the actual carrier, be deemed to be also those of the actual carrier. Nevertheless, no such act or omission shall subject the actual carrier to liability exceeding the amounts referred to in Rules 21, 22 and 23. Any special agreement under which the contracting carrier assumes obligations not imposed by this Schedule or any waiver of rights or defences conferred by this Schedule or any special declaration of interest in delivery at destination contemplated in Rule 22 shall not affect the actual carrier unless agreed to by it.

40. Addressee of complaints and instructions.—Any complaint to be made or instruction to be given under this Schedule to the carrier shall have the same effect whether addressed to the contracting carrier or to the actual carrier. Nevertheless, instructions referred to in Rule 12 shall only be effective if addressed to the contracting carrier.

41. Servants and agents.—In relation to the carriage performed by the actual carrier, any servant or agent of that carrier or of the contracting carrier shall, if they prove that they acted within the scope of their employment, be entitled to avail themselves of the conditions and limits of liability which are applicable under this Schedule to the carrier whose servant or agent they are, unless it is proved that they acted in a manner that prevents the limits of liability from being invoked in accordance with this Schedule.

42. Aggregation of damages.—In relation to the carriage performed by the actual carrier, the aggregate of the amounts recoverable from that, carrier and the contracting carrier, and from their servants and agents acting within the scope of their employment, shall not exceed the highest amount which could be awarded against either the contracting carrier or the actual carrier under this Schedule, but none of the persons mentioned shall be liable for a sum in excess of the limit applicable to that person.

43. Addressee of claims.—In relation to the carriage performed by the actual carrier, an action for damages may be brought, at the option of the plaintiff; against that carrier or the contracting carrier, or against both together or separately. If the action is brought against only one of those carriers, that carrier shall have the right to require the other carrier to be joined in the proceedings.

44. Invalidity of contractual provisions.—Any contractual provision tending to relieve the contracting carrier or the actual carrier or the actual carrier of liability under this Chapter or to fix a lower limit than that which is applicable according to this Chapter shall be null and void, but the nullity of any such provision does not involve the nullity of the whole contract, which shall remain subject to the provisions of this Chapter.

45. Mutual relations of contracting and actual carriers.—Except as provided in Rule 42, nothing in this Chapter shall affect the rights and obligations of the carriers between themselves, including any right of recourse or indemnification.

CHAPTER-VI

OTHER PROVISIONS

46. Mandatory application.—Any clause contained in the contract of carriage and all special agreements entered into before the damage occurred by which the parties purport to infringe the rules laid down by this Schedule, whether by deciding the law to be applied, or by altering the rules as to jurisdiction, shall be null and void.

47. Carriage performed in extraordinary circumstances.—The provisions of Rules 3 to 5, 7 and 8 relating to the documentation of carriage shall not apply in the case of carnage performed in extraordinary circumstances outside the normal scope of carrier's business.

48. Definition of days.—The expression "days" when used in this Schedule means calendar days, not working days,

49. Insurance.—(1) The carrier shall maintain adequate insurance covering all possible liability under this Schedule. A carrier may be required by the Federal Government to furnish evidence that it maintains adequate insurance covering its liability under this Schedule.

(2) The carrier shall comply with rules that may be notified through publication in the Official Gazette by the Federal Government regarding the obligation of the carrier to maintain adequate insurance coverage.

---------------

THE SIXTH SCHEDULE

[See Sections 3(5) and 5(4)]

PROVISIONS AS TO LIABILITY OF CARRIERS IN THE EVENT OF THE DEATH OF A PASSENGER

1. The liability shall be enforceable for the benefit of such of the members of the passenger's family as sustained damage by reason of his death.

In this rule the expression "member of a family" means wife or husband, parent, step-parent, grandparent, brother, sister, half-brother, half-sister, child, stepchild, grandchild:

Provided that, in deducing any Such relationship as aforesaid any illegitimate person and any adopted person shall be treated as being, or as having been, the legitimate child of his mother and reputed father or, as the case may be.

2. An action to enforce the liability may be brought by the personal representative of the passenger or by any person for whose benefit the liability is under the last preceding rule enforceable, but only one action shall be brought in Pakistan in respect of the death of any one passenger, and every such action by whosoever brought shall be for the benefit of all such persons so entitled as aforesaid as either are domiciled in Pakistan, or, not being domiciled there, express a desire to take the benefit of the action.

3. Subject to the provisions of the next succeeding rule the amount recovered in any such action, after deducting any costs not recovered from the defendant, shall be divided between the persons emitted in such proportions as the Court may direct.

4. The Court before which any such action is brought may at any stage of the proceedings make any such order as appears to the Court to be just and equitable in view of, as the case may be, the provisions of the First, Second, Third, Fourth and Fifth Schedules to this Bill limiting the liability of a carrier and of any proceedings which have been, or are likely to be, commenced outside Pakistan in respect of the death of the passenger in question.

5. (1) Any person competent to bring an action under Rule 2 of this Schedule may, instead of bringing such action, apply to the carrier to make payment of the amount which could have been recovered in any such action to the members of the passeager's family mentioned in the certificate granted under Rule 6 to be divided between them in the proportions set out in the certificate.

(2) Where an application under sub-rule (1) is not accompanied by a certificate under Rule 6, the carrier shall advise the applicant to obtain such certificate.

6. (1) Any person competent to bring an action under Rule 2 may apply to the District Judge or the High Court, as the case may be, having jurisdiction to issue a succession certificate following the death of the passenger for the grants of a certificate to the effect that only the persons named therein are the members of the passenger's family for whose benefit the liability is enforceable under Rule 1.

(2) A certificate under sub-rule (1) shall set out the proportion in which each member mentioned therein shall receive the amount recoverable; and the proportion shall be such as may be agreed upon amongst the members or, in the absence of such agreement, as may be determined by District Judge or, as the case may be, the High Court.

7. For the purpose of the grant of a certificate under Rule 6, the District Judge or the High Court, as the case may be, shall publish, or cause to be published, in such newspapers as he or it may think fit, a copy of the application for such certificate and shall follow, so far as may be, the same procedure as in the case of an application for a succession certificate under the Succession Act, 1925 (XXXIX of 1925), or any applicable law for the time being in force.

8. Payment made by the carrier in accordance with the certificate shall give him full and final discharge from his liability.

-----------------------

ACT NO. V OF 2012

CONSTITUTION (TWENTIETH AMENDMENT)
ACT, 2012

An Ad further to amend the Constitution of the Islamic Republic of Pakistan

[Gazette of Pakistan, Extraordinary, Part-I, 29^th February, 2012]

No. F. 9(5)/2012-Legls.—The following Act of Majlis-e-Shoora (Parliament) received the assent of the President on 28th February, 2012, is hereby published for general information:—

WHEREAS it is expedient further to amend the Constitution of the Islamic Republic of Pakistan;

It is hereby enacted as follows:—

1. Short title and commencement.—(1) This Act may be called the Constitution (Twentieth Amendment) Act, 2012.

(2) It shall come into force at once.

2. Amendment of Article 48 of the Constitution.—In the Constitution of the Islamic Republic of Pakistan, hereinafter referred to as the Constitution, in Article 48, in Clause (5), in Paragraph (b), after the word "Cabinet", the words, commas, figures and letter "in accordance with the provisions of Article 224 or, as the case may be, Article 224-A”, shall be added.

3. Amendment of Article 214 of the Constitution.—In the Constitution, in Article 214,—

(a) in the marginal note, the word "Commissioner's", shall be omitted; and

(b) after the word "Pakistan", the commas and words ",and a member of the Election Commission shall make before the Commissioner,", shall be inserted.

4. Amendment of Article 215 of the Constitution.—In the Constitution, in Article 215,—

(a) in the marginal note, after the word "Commissioner", the words "and members", shall be added;

(b) in clause (1),—

(i) after the word "Commissioner", the words "and a member", shall be inserted; and

(ii) in the proviso, after the word "incumbent", the word "Commissioner", shall be added;

(i) after the word "Commissioner", occurring for the first time, the words "or a member", .shall be inserted; and

(ii) after the word "Commissioner", at the end, the words and commas "or, as the case may be, a member", shall be added: and

(d) in clause (3), after the word "Commissioner", the words "or a member", shall be inserted.

5. Amendment of Article 216 of the Constitution.—In the Constitution, in Article 210,—

(a) in the marginal note, after the word "Commissioner", the words "and members", shall be inserted;

(b) in clause (1), after the word "Commissioner", the words "or a member", shall be inserted; and

(c) in clause (2), after the word "Commissioner", occurring for the first time, the words "or a member", shall be inserted.

6. Amendment of Article 218 of the Constitution.—In the Constitution, in Article 218, in clause (3), the words "constituted in relation to an election", shall be omitted.

7. Amendment of Article 219 of the Constitution.—In the Constitution, in Article 219, in Paragraph (e), for the full stop, at the end, a colon shall be substituted and thereafter the following proviso shall be inserted, namely:

"Provided that till such time as the members of the Commission are first appointed in accordance with the provisions of Paragraph (b) of clause (2) of Article 218 pursuant to the Constitution (Eighteenth Amendment) Act, 2010, and enter upon their office, the Commissioner shall remain charged with the duties enumerated in Paragraphs (a), (b) and (c) of this Article.".

8. Amendment of Article 224 of the Constitution.—In the Constitution, in Article 224,—

(a) in clause (1A),—

(i) in the first proviso, for the word "selected", the word "appointed", shall be substituted;

(ii) after the proviso, as amended hereinabove, the following new proviso shall be inserted, namely:—

"Provided further that if the Prime Minister or a Chief Minister and their respective Leader of the Opposition do not agree on any person to be appointed as a care-taker Prime Minister or the care-taker Chief Minister, as the case may be, the provisions of Article 224A shall be followed:"; and

(iii) in the second proviso, for the word "further", the word "also", shall be substituted; and

(b) in clause (6), for the full stop, at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:—

"Provided that if at any time the party list is exhausted, the concerned political party may submit a name for any vacancy which may occur thereafter.".

9. Insertion of new Article 224-A of the Constitution.—In the Constitution, after Article 224, amended as aforesaid, the following new Article, shall be inserted, namely:—

"224-A. Resolution by Committee or Election Commission.—(1) In case the Prime Minister and the Leader of the Opposition in the outgoing National Assembly do not agree on any person to be appointed as the cure-taker Prime Minister, within three days of the dissolution of the National Assembly, they shall forward two nominees each to a Committee to be immediately constituted by the Speaker of the National Assembly, comprising eight members of the outgoing National Assembly, or the Senate, or both, having equal representation from the Treasury and the Opposition, to be nominated by the Prime Minister and the Leader of the Opposition respectively.

(2) In case a Chief Minister and the Leader of the Opposition in the outgoing Provincial Assembly do not agree on any person to be appointed as the care-taker Chief Minister, within three days of the dissolution of that Assembly, they shall forward two nominees each to a Committee to be immediately constituted by the Speaker of the Provincial Assembly, comprising six members of the outgoing Provincial Assembly having equal representation from the Treasury and the Opposition, to be nominated by the Chief Minister and the Leader of the Opposition respectively.

(3) The Committee constituted under clause (I) or (2) shall finalize the name of the care-taker Prime Minister or care-taker Chief Minister, as the case may be, within three days of the referral of the matter to it:

Provided that in case of inability of the Committee to decide the matter in the aforesaid period, the names of the nominees shall be referred to the Election Commission of Pakistan for final decision within two days.

(4) The incumbent Prime Minister and the incumbent Chief Minister shall continue to hold office till appointment of the care-taker Prime Minister and the care-taker Chief Minister, as the case may be.

(5) Notwithstanding anything contained in clauses (1) and (2), if the members of the Opposition are less than five in the Majlis-e-Shoora (Parliament) and less than four in any Provincial Assembly, then all of them shall be members of the Committee mentioned in the aforesaid clauses and the Committee shall be deemed to be duly constituted.'".

10. Amendment of the Second Schedule to the Constitution.—In the Constitution, in the Second Schedule,—

(a) in Paragraph 1,—

(a) "Academic Council" means the Academic Council of the University;

(b) "Authority" means any of the Authorities of the University specified or set up in terms of Section 15;

(d) "college" means a constituent college;

(e) "Commission" means the Higher Education Commission set up by the Higher Education Commission Ordinance, 2002 (LIII of 2002);

(f) "constituent college" means an educational institution by whatever name described, maintained and administered by the University;

(g) "Dean" means the head of a Faculty or the head of an academic body granted the status of a Faculty by this Act or by the statutes or regulations;

(h) "department" means a teaching department maintained and administered, or recognized by the University in the manner as may be prescribed;

(i) "Director" means the head of an institute established as a constituent institution by the University by statutes or regulations in terms of the powers delegated by this Act;

(j) "Faculty" means an administrative and academic unit of the University consisting of one or more departments, as may be prescribed;

(k) "Government" means the Federal Government;

(l) "prescribed" means prescribed by statutes, regulations or rules made under this Act;

(m) "Principal" means the head of a college;

(n) "Representation Committees" means the Representation Committees constituted under Section 23;

(o) "Review Panel means the Review Panel set up by the Chancellor in accordance with the provisions of Section 8;

(p) "Search Committee" means the Search Committee set up by the Senate under Section 11;

(q) "Senate" means the Senate of the University;

(r) "statutes", "regulations" and "rules" mean respectively the statutes, the regulations and the rules made under this Act and for the time being in force;

(s) "Syndicate" means the Syndicate of the University;

(t) "University teachers" include Professors, Associate Professors, Assistant Professors, Lecturers, Demonstrators and Instructors engaged whole-time by the University or by a constituent college and such other persons as may be declared to be teachers by regulations;

(u) "University" means Shifa Tameer-e-Millat University; and

(v) "Vice-Chancellor" means the Vice-Chancellor of the University.

CHAPTER II

THE UNIVERSITY

3. Incorporation.—(1) There shall be established at Islamabad a University to be called Shifa Tameer-e-Millat University, Islamabad which shall be a non-profitable University.

(2) The University shall consist of the following, namely:—

(a) the Chancellor, the members of the Senate and the Vice-Chancellor;

(b) the members of the Authorities established under Section 15;

(c) all University teachers, researchers and persons recognized as students of the University in accordance with terms prescribed from to time; and

(d) all other full-time officers and members of the staff of the University.

(3) The University shall be a body corporate by the name of ShifaTameer-e-Millat University having perpetual succession and a common seal, and may sue and be sued by the said name.

(4) The University shall be competent to acquire and hold property, both movable and immovable, and to lease, sell or otherwise transfer any movable and immovable property which may have become vested in or been acquired by it.

(5) Notwithstanding anything contained in any other law for the time being in force, the University shall have academic, financial and administrative autonomy, including the power to employ officers, teachers and other employees on such terms as may be prescribed, subject to the provisions of this Act. In particular, and without prejudice to the authority granted to the Commission by the law, the Government or an authority or auditor appointed by the Government shall have no power to question the policy underlying the allocation of resources approved by the Senate in the annual budget of the University.

4. Powers and purposes of the University.—The University shall have the following powers, namely:—

(i) to provide for education and scholarship in such branches of knowledge as it may deem fit, and to make provision for research, service to society and for the application, advancement and dissemination of knowledge in such manner as it may determine;

(ii) to prescribe courses of studies to be conducted by it and the colleges;

(iii) to hold examinations and to award and confer degrees, diplomas, certificates and other academic distinctions to and on persons who have been admitted to and have passed its examinations under prescribed conditions;

(iv) to prescribe the terms and conditions of employment of the officers, teachers and other employees of the University and to lay down terms and conditions that may be different from those applicable to Government servants in general;

(v) to engage, where necessary, persons on contracts of specified duration and to specify the terms of each engagement;

(vi) to confer honorary degrees or other distinctions on approved persons in the manner as may be prescribed;

(vii) to provide for such instruction for persons not being students of the University as it may prescribe; and to grant certificates and diplomas to such persons;

(viii) to institute programmes for the exchange of students and teachers between the University and other universities, educational institutions and research organisations;

(ix) to provide career counselling and job search services to students and alumni;

(x) to maintain linkages with alumni;

(xi) to develop and implement fund-raising plans;

(xii) to provide and support the academic development of the faculty of the University;

(xiii) to confer degrees on persons who have carried on independent research under prescribed conditions;

(xiv) to accept the examinations passed and the period of study spent by students of the University at other universities and places of learning equivalent to such examinations and periods of study in the University, as it may prescribe, and to withdraw such acceptance;

(xv) to co-operate with other universities public authorities or private organisations in such manner and for such purposes as it may prescribe;

(xvi) to institute Professorships, Associate Professorships, Assistant Professorships and Lectureships and any other posts and to appoint persons thereto;

(xvii) to create posts for research, extension, administration and other related purposes and to appoint persons thereto;

(xviii) to recognize selected members of the teaching staff of educational institutions admitted to the privileges of the University or such other persons as it may deem fit, as University Teachers;

(xix) to institute and award financial assistance to students in need, fellowships, scholarships, bursaries, medals and prizes under prescribed conditions;

(xx) to establish teaching departments, schools, constituent colleges, faculties, institutes, academies, museums and other centres of learning for the development of teaching and research and to make such arrangements for their maintenance, management and administration as it may prescribe;

(xxi) to provide for the residence of the students of the University and the constituent colleges, to institute and maintain halls of residence and to approve or license hostels and lodging;

(xxii) to maintain order, discipline and security on the campuses of the University;

(xxiii) to promote the extra curricular and recreational activities of such students, and to make arrangements for promoting their health and general welfare;

(xxiv) to demand and receive such fees and other charges as it may determine;

(xxv) to make provision for research, advisory or consultancy services and with these objectives to enter into arrangements with other institutions, public or private bodies, commercial and industrial enterprises under prescribed conditions;

(xxvi) to enter into, carry out, vary or cancel contracts;

(xxvii) to receive and manage property transferred and grants, contributions made to the University and to invest any fund representing such property, grants, bequests, trusts, gifts, donations, endowments or contributions in such manner as it may deem fit;

(xxviii) to provide for the printing and publication of research and other works; and

(xxix) to do all such other acts and things, whether incidental to the powers aforesaid or not, as may be requisite or expedient in order to further the objectives of the University as a place of education, learning, and research.

5. University open to all classes, creeds, etc.—(1) The University shall be open to all persons of either gender and of whatever religion, race, creed, class, colour or domicile and no person shall be denied the privileges of the University on the grounds of religion, race, caste, creed, class, colour or domicile.

(2) An increase in any fee or charge that is in excess of ten% annum on an annualised basis from the last such increase may not be made except in special circumstances, and only with the approval of the Chancellor.

(3) The University shall institute financial aid programmes for students in need, to the extent considered feasible by the Senate given the resources available, so as to enable admission and access to the University and the various opportunities provided by it to be based on merit rather than ability to pay.

6. Teaching at the University.—(1) All recognized teaching in various courses shall be conducted by the University or the colleges in the prescribed manner and may include lectures, tutorials, discussions, seminars, demonstrations, distance learning and other methods of instruction as well as practical work in the laboratories, hospitals, workshops, fields and other Governmental or private organizations.

(2) The authority responsible for organizing recognized teaching shall be such as may be prescribed.

CHAPTER III

OFFICERS OF THE UNIVERSITY

7. Principal Officers.—The following shall be the principal officers of the University, namely:—

(a) the Chancellor;

(b) the Vice-chancellor;

(d) the Principals of the Constituent colleges or institutes;

(e) the Chairpersons of the teaching departments;

(f) the Registrar;

(g) the Treasurer;

(h) the Controller of Examinations; and

(i) such other persons as may be prescribed by the statutes or regulations to be the principal officers of the University.

8. Chancellor.—(1) There shall be the Chancellor of the University who shall, as soon as may be, after the commencement of this Act, be elected by the Chancellor Election Council from amongst its members by two-third majority, in which fraction will be counted as one. The following shall be the composition of the Chancellor Election Council namely:—

(a) all members of the Board of Governors of Shifa Foundation;

(b) all members of the Board of Governors of Tameer-e-Millat Foundation;

(d) one representative of the Board of Trustees of the Endowment Fund of the university nominated by the same board.

(2) The term of office of the Chancellor shall be for a period of seven years.

(3) The Chancellor shall, when present, preside at the meetings of the Senate and the Convocation of the University. In the absence of the Chancellor the Vice-Chancellor shall preside over the meetings of the Senate and the Convocation of the University and in the absence of both, the Chancellor may nominate any member of the Senate, not being employee of the University or the Government, to preside over the meetings of the Senate and the Convocation of the University.

(4) The members of the Senate as well as the Vice-Chancellor shall be appointed by the Chancellor from amongst the persons recommended by the Representation Committee set up for this purpose or the Search Committee established in accordance with this Act and the statutes, as the case may be, along with those elected.

(5) Every proposal to confer an honorary degree shall be subject to confirmation by the Chancellor.

(6) If the Chancellor is satisfied that serious irregularity or mismanagement with respect to the affairs of the University has occurred, he may:

(a) as regards proceedings of the Senate, direct that specified proceedings be reconsidered and appropriate action taken within one month of the direction having been issued:

Provided that if the Chancellor is satisfied that either no reconsideration has been carried out or that the reconsideration has failed to address the concern expressed, he may, after calling upon the Senate to show cause in writing, appoint a five member Review Panel to examine and report to the Chancellor on the functioning of the Senate. The report of the Review Panel shall be submitted within such time as may be prescribed by the Chancellor. The Review Panel shall be drawn from persons of eminence in academics and in the fields of law, accountancy and administration; and

(b) as regards proceedings of any Authority or with respect to matters within the competence of any Authority other than the Senate, direct the Senate to exercise powers under Section 17.

9. Removal from the Senate.—(1) The Chancellor may, upon the recommendation of the Review Panel, remove any person from the membership of the Senate on the ground that such person,—

(a) has become of unsound mind;

(b) has become incapacitated to function as member of the Senate;

(d) has absented himself from two consecutive meetings without just cause; or

(e) has been guilty of misconduct, including use of position for personal advantage of any kind, or gross inefficiency in the performance of functions.

(2) The Chancellor shall remove any person from the membership of the Senate on a resolution calling for the removal of such person supported by at least three-fourths of the membership of the Senate:

Provided that before passing such resolution the Senate .shall provide the member concerned a fair hearing:

Provided further that the provisions of this section shall not be applicable to the Vice-Chancellor in his capacity as a member of the Senate.

10. Vice-Chancellor.—(1) There shall be a Vice-Chancellor of the University who shall be an eminent academic or a distinguished administrator and shall be appointed on such terms and conditions as may be prescribed.

(2) The Vice-Chanccllor shall be the chief executive officer of the University responsible for all administrative and academic functions of the University and for ensuring that the provisions of this Act statutes, regulations and rules are faithfully observed in order to promote the general efficiency and good order of the University. The Vice-Chancellor shall have all powers prescribed for this purpose, including administrative control over the officers, teachers and other employees of the University.

(3) The Vice-Chancellor shall, if present, be entitled to attend any meeting of any Authority or body of the University.

(4) The Vice-Chancellor may, in an emergency that in his opinion requires immediate action ordinarily not in the competence of the Vice-Chancellor, take such action and forward, within seventy-two hours, a report of the action taken to the members of the Emergency Committee of the Senate, to be set up by statute. The Emergency Committee may direct such further action as is considered appropriate.

(5) The Vice-Chancellor shall also have the following powers, namely:—

(a) to direct teachers, officers and other employees of the University to take up such assignments in connection with examination, administration and such other activities in the University as he may consider necessary for the purposes of the University;

(b) to sanction by re-appropriation an amount not exceeding an amount prescribed by the Senate for an unforeseen item not provided for in the budget and report it to the Senate at the next meeting;

(c) to make appointments of such categories of employees of the University and in such manner as may be prescribed by the statutes;

(d) to suspend, punish and remove, in accordance with prescribed procedure, from service officers, teachers and other employees of the University except those appointed by or with the approval of the Senate;

(e) to delegate, subject to such conditions as may be prescribed, any of his powers under this Act to an officer or officers of the University; and

(f) to exercise and perform such other powers and functions as may be prescribed.

(6) The Vice-Chancellor shall present an annual report before the Senate within three months of the close of the academic year. The annual report shall present such information as regards the academic year under review as may be prescribed, including disclosure of all relevant facts pertaining to,—

(a) academics;

(b) research;

(d) finances.

(7) The Vice-Chancellor's annual report shall be made available, prior to its presentation before the Senate, to all officers and University teachers and shall be published in such numbers as are required to ensure its wide circulation.

11. Appointment and removal of the Vice-chancellor.—(1) The Vice-Chancellor shall be appointed by the Chancellor on the basis of recommendations made by the Senate.

(2) A Search Committee for the recommendation of persons suitable for appointment as Vice-Chancellor shall be constituted by the Senate on the date and in the manner prescribed by the statutes and shall consist of two eminent members of society nominated by the Chancellor, of whom one shall be appointed the Convenor, two members of the Senate, two distinguished University Teachers who are not members of the Senate and one academic of eminence not employed by the University. The two distinguished University Teachers shall be selected by the Senate through a process, to be prescribed by Senate that provides for the recommendation of suitable names by the University Teachers in general. The Search Committee shall remain in existence till such time that the appointment of the next Vice-Chancellor has been made by the Chancellor.

(3) The persons proposed by the Search Committee for appointment as Vice-Chancellor shall be considered by the Senate and of these a panel of three, in order of priority, shall be recommended by the Senate to the Chancellor:

Provided that the Chancellor may decline to appoint any of the three persons recommended and seek recommendation of a fresh panel. In the event of a fresh recommendation being sought by the Chancellor the Search Committee shall make a proposal to the Senate in the prescribed manner.

(4) The Vice-Chancellor shall be appointed for a renewable tenure of five years on terms and conditions prescribed by statute. The tenure of an incumbent Vice-Chancellor shall be renewed by the Chancellor on receipt of a resolution of the Senate in support of such renewal:

Provided that the Chancellor may call upon the Senate to reconsider such resolution once.

(5) The Senate may, pursuant to a resolution in this behalf passed by three-fourths of its membership, recommend to the Chancellor the removal of the Vice-Chancellor on the ground of inefficiency, moral turpitude, physical or mental incapacity or gross misconduct, including misuse of position for personal advantage of any kind:

Provided that the Chancellor may make a reference to the Senate stating the instances of inefficiency, moral turpitude or physical or mental incapacity or gross misconduct on the part of the Vice-Chancellor that have come to his notice. After consideration of the reference the Senate may, pursuant to a resolution in this behalf passed by two-thirds of its membership, recommend to the Chancellor the removal of the Vice-Chancellor:

Provided further that prior to a resolution for the removal of the Vice-Chancellor being voted upon the Vice-Chancellor shall be given an opportunity of being heard but he shall not be called upon to cast his vote.

(6) A resolution recommending the removal of the Vice-Chancellor shall be submitted to the Chancellor forthwith. The Chancellor may accept the recommendation and order removal of the Vice-Chancellor or return the recommendation to the Senate once for reconsideration.

(7) At any time when the office of the Vice-Chancellor is vacant, or the Vice-Chancellor is absent or is unable to perform the functions of his office due to illness or some other cause, the Senate shall make such arrangements for the performance of the duties of the Vice-Chancellor as it may deem fit.

12. Registrar.—(1) There shall be a Registrar of the University to be appointed by the Senate on the recommendation of the Vice-Chancellor, on such terms and conditions as may be prescribed.

(2) The experience as well as the professional and academic qualifications necessary for appointment to the post of the Registrar shall be as may be prescribed.

(3) The Registrar shall be a full-time officer of the University and shall,—

(a) be the administrative head of the secretariat of the University and be responsible for the provision of secretariat support to the Authorities of the University;

(b) be the custodian of the common seal of the University;

(d) supervise the process of election, appointment or nomination of members to the various authorities and other bodies in the prescribed manner; and

(e) perform such other duties as may be prescribed.

(4) The term of office of the Registrar shall be a renewable period of three years:

Provided that the Senate may, on the advice of the Vice-Chancellor, terminate the appointment of the Registrar on grounds of inefficiency or misconduct in accordance with prescribed procedure.

13. Treasurer.—(1) There shall be a Treasurer of the University to be appointed by the Senate on the recommendation of the Vice-Chancellor, on such terms and conditions as may be prescribed.

(2) The experience, professional and academic qualifications necessary for appointment to the post of the Treasurer shall be as may be prescribed.

(3) The Treasurer shall be the chief financial officer of the University and shall,—

(a) manage the assets, liabilities, receipts, expenditures, funds and investments of the University;

(b) prepare the annual and revised budget estimates of the University and present them to the Syndicate or a committee thereof for approval and incorporation in the budget to be presented to the Senate;

(d) get the accounts of the University audited annually so as to be available for submission to the Senate within six months of the close of the financial year; and

(e) perform such other duties as may be prescribed.

(4) The term of office of the Treasurer shall be a renewable period of three years:

Provided that the Senate may, on the advice of the Vice-Chancellor, terminate the appointment of the Treasurer on grounds of inefficiency or misconduct in accordance with prescribed procedure.

14. Controller of Examinations.—(1) There shall be a Controller of Examinations, to be appointed by the Senate on the recommendation of the Vice-Chancellor, on such terms and conditions as may be prescribed.

(2) The minimum qualifications necessary for appointment to the post of the Controller of Examinations shall be as may be prescribed.

(3) The Controller of Examinations shall be a full-time officer of the University and shall be responsible for all matters connected with the conduct of examinations, shall be the custodian of the academic records, and perform such other duties as may be prescribed.

(4) The Controller of Examinations shall be appointed for a renewable term of three years:

Provided that the Senate may, on the advice of the Vice-Chanrellor, terminate the appointment of the Controller of Examinations on grounds of inefficiency or misconduct in accordance with prescribed procedure.

CHAPTER IV

AUTHORITIES OF THE UNIVERSITY

15. Authorities.—(1) The following shall be the Authorities of the University, namely:—

(a) Authorities established by this Act,

(i) the Senate;

(ii) the Syndicate; and

(iii) the Academic Council.

(b) Authorities to be established by the statutes,—

(i) Graduate Studies and Research Management Council;

(ii) Recruitment, Development, Evaluation and Promotion Committees for teachers and other staff whether at the level of the department, college, institute. Faculty or the University;

(iii) Career Placement and Internship Committee of each Faculty;

(iv) Search Committee for the appointment of the Vice-Chancellor;

(v) the Representation Committees for appointment to the Senate, Syndicate and the Academic Council;

(vi) Faculty Council; and

(vii) Departmental Council.

(2) The Senate, the Syndicate and the Academic Council may set up such other committees or sub-committees, by whatever name described, as are considered desirable through statutes or regulations as may be appropriate. Such committees or sub-committees shall be Authorities of the University for the purposes of this Act.

16. Senate.—(1) The body responsible for the governance of the University shall be described as the Senate and shall consist of the following, namely:—

(a) the Chancellor who shall be the Chairperson of the Senate;

(b) the Vice-Chancellor;

(c) one member of the Government not below the rank of Additional Secretary from the Ministry of Education or any other department relevant to the special focus of the University;

(d) four persons from society at large being persons of distinction in the fields of administration, management, education, academics, law, accountancy, medicine, fine arts, architecture, agriculture, science, technology and engineering such that the appointment of these persons reflects a balance across the various fields:

the special focus or affiliation of the University, to be declared in the manner prescribed, may be reflected in the number of persons of distinction in an area of expertise relevant, to the University who are appointed to the Senate;

(e) one person from amongst the alumni of the University;

(f) two persons from the academic community of the country, other than an employee of the University, at the level of professor or principal of a college;

(g) four University Teachers; and

(h) one person nominated by the Commission.

(2) The numbers of the members of the Senate described in clauses (e) to (h) of sub-section (1) may be increased by the Senate through statutes subject to condition that the total membership of the Senate does not exceed twenty one, with a maximum of five University Teachers, and the increase is balanced, to the extent possible, across the different categories specified in sub-section (1).

(3) All appointments to the Senate shall be made by the Chancellor. Appointments of persons described in clauses (e) and (f) of sub-section (1) shall be made from amongst a panel of three names for each vacancy recommended by the Representation Committee set up in terms of Section 23 and in accordance with procedure as may be prescribed:

Provided that effort shall be made, without compromising on quality or qualification, to give fair representation to women on the Senate:

Provided further that as regards the University Teachers described in clause (g) of sub-section (1) the Senate shall prescribe a procedure for appointment on the basis of elections that provide for voting by the various categories of University Teachers. Provided also that the Senate may alternatively prescribe that appointment of University Teachers to the Senate shall also be in the mariner provided by this sub-section for the persons described in clauses (e) and (f) of sub-section (1).

(4) Members of the Senate, other than ex-officio members, shall hold office for a period of three years. One-third of the members, other than ex-officio members, of the first Senate, to be determined by lot, shall retire from office on the expiration of one year from the date of appointment by the Chancellor. One-half of the remaining members, other than ex-officio members, of the first Senate, to be determined by lot, shall retire from office on the expiration of two years from the date of appointment and the remaining one-half, other than ex-officio members, shall retire from office on the expiration of the third year:

Provided that no person, other than an ex-officio member, may serve on the Senate for more than two consecutive terms:

Provided further that the University Teachers appointed to the Senate may not serve for two consecutive terms.

(5) The Senate shall meet at least twice in a calendar year.

(6) Service on the Senate shall be on honorary basis:

Provided that actual expenses may be reimbursed as prescribed.

(7) The Registrar shall be the Secretary of the Senate.

(8) Unless otherwise prescribed under this Act, all decisions of the Senate shall be taken on the basis of the opinion of a majority of the members present. In the event of the members being evenly divided on any matter the person presiding over the meeting shall have a casting vote.

(9) The quorum for a meeting of the Senate shall be two-thirds of its membership, a fraction being counted as one.

17. Powers and functions of the Senate.—(1) The Senate shall have the power of general supervision over the University and shall hold the Vice-Chancellor and the Authorities accountable for all the functions of the University. The Senate shall have all powers of the University not expressly vested in an Authority or officer by this Act and all other powers not expressly mentioned by this Act that are necessary for the performance of its functions.

(2) Without prejudice to the generality of the foregoing powers, the Senate shall have the following powers namely:—

(a) to approve the proposed annual plan of work, the annual and revised budgets, the annual report and the annual statement of account;

(b) to hold, control and lay down policy for the administration of the property, funds and investments of the University, including the approval of the sale and purchase or acquisition of immovable property;

(c) to oversee the quality and relevance of the University's academic programmes and to review the academic affairs of the University in general;

(d) to approve the appointment of the Deans, Professors. Associate Professors and such other senior faculty and senior administrators as may be prescribed;

(e) to institute schemes, directions and guidelines for the terms and conditions of appointment of all officers, teachers and other employees of the University;

(f) to approve strategic plans;

(g) to approve financial resource development plans of the University;

(h) to consider the drafts of statutes and regulations proposed by the Syndicate and the Academic Council and deal with them in the manner as provided for in Sections 26 and 27, as the case may be:

Provided that the Senate may frame a statute or regulation on its own initiative and approve it after calling for the advice of the Syndicate or the Academic Council as the case may be;

(i) to annul by order in writing the proceedings of any Authority or officer if the Senate is satisfied that such proceedings are not in accordance with the provisions of this Act, statutes or regulations after calling upon such Authority or officer to show cause why such proceedings should not be annulled;

(j) to recommend to the Chancellor removal of any member of the Senate in accordance with the provisions of this Act;

(k) to make appointment of members of the Syndicate, other then ex-officio members, in accordance with the provisions of this Act;

(l) to make appointment of members of the Academic Council, other than ex-officio members, in accordance with the provisions of this Act;

(m) to appoint Emeritus Professors on such terms and conditions as may be prescribed;

(n) to remove any person from the membership of any Authority if such person,—

(i) has become of unsound mind;

(ii) has become incapacitated to function as member of such Authority; or

(iii) has been convicted by a Court of law for an offence involving moral turpitude; and

(o) to determine the form, provide for the custody and regulate the use of the common seal of the University.

(3) The Senate may, subject to the provisions of this Act delegate all or any of the powers and functions of any Authority, officer or employee of the University at its main campus, to any Authority, committee, officer or employee at its additional campus for the purpose of exercising such powers and performing such functions in relation to such additional campus, and for this purpose the Senate may create new posts or positions at the additional campus.

18. Visitation.—The Senate may, in accordance with the terms and procedures as may be prescribed, cause an inspection to be made in respect, of any matter connected with the University.

19. Syndicate.—(1) There shall be a Syndicate of the University consisting of the following namely:—

(a) the Vice-Chancellor who shall be its Chairperson;

(b) the Deans of the Faculties of the University;

(c) three professors from different departments, who are not members of the Senate, to be elected by the University Teachers in accordance with procedure to be prescribed by the Senate;

(d) Principals of the constituent colleges;

(e) the Registrar;

(f) the Treasurer; and

(g) the Controller of Examinations.

(2) Members of the Syndicate, other than ex-officio members, shall hold office for a period of three years.

(3) As regards the three professors described in clause (c) of sub-section (1) the Senate may, as an alternative to elections, prescribe a procedure for proposal of a panel of names by the Representation Committee set up in terms of Section 23. Appointment of persons proposed by the Representation Committee may be made by the Senate on the recommendation of the Vice-Chancellor.

(4) The quorum for a meeting of the Syndicate shall be one-half of the total number of members, a fraction being counted as one.

(5) The Syndicate shall meet at least once in each quarter of the year.

20. Powers and duties of the Syndicate.—(1) The Syndicate shall be the executive body of the University and shall, subject to the provisions of this Act and the statutes, exercise general supervision over the affairs and management of the University.

(2) Without prejudice to the generality of the foregoing powers, and subject to the provisions of this Act, the statutes and directions of the Senate, the Syndicate shall have the following powers namely:—

(a) to consider the annual report, the annual and revised budget estimates and to submit these to the Senate;

(b) to transfer and accept transfer of movable property on behalf of the University;

(d) to cause proper books of account to be kept for all sums of money received and expended by the University and for the assets and liabilities of the University;

(e) to invest any money belonging to the University including any unapplied income in any of the securities described in Section 20 of the Trusts Act, 1882 (Act II of 1882), or in the purchase of immovable properly or in such other manner, as it may prescribe, with the like power of varying such investments;

(f) to receive and manage any property transferred, grants, bequests, trust, gifts, donations, endowments, and other contributions made to the University;

(g) to administer any funds placed at the disposal of the University for specified purposes;

(h) to provide the buildings, libraries, premises, furniture, apparatus, equipment and other means required for carrying out the work of the University;

(i) to establish and maintain halls of residence and hostels or approve or license hostels or lodgings for the residence of students;

(j) to recommend to the Senate admission of educational institutions to the privileges of the University and withdraw such privileges;

(k) to arrange for the inspection of colleges and the departments;

(l) to institute Professorships, Associate Professorships, Assistant Professorships. Lectureships, and other teaching posts or to suspend or to abolish such posts;

(m) to create, suspend or abolish such administrative or other posts as may be necessary;

(n) to prescribe the duties of officers, teachers and other employees of the University;

(o) to report to the Senate on matters with respect to which it has been asked to report;

(p) to appoint members to various Authorities in accordance with the provisions of this Act;

(q) to propose drafts of statutes for submission to the Senate;

(r) to regulate the conduct and discipline of the students of the University;

(s) to take actions necessary for the good administration of the University in general and to this end exercise such powers as are necessary;

(t) to delegate any of its powers to any Authority or officer or a committee; and

(u) to perform such other functions as have been assigned to it by the provisions of this Act or may be assigned to it by the statutes.

21. Academic Council.—(1) There shall be an Academic Council of the University consisting of the following namely:—

(a) the Vice-Chancellor who shall be its Chairperson;

(b) the Deans of Faculties and such Heads of departments as may be prescribed;

(c) five members representing the departments, institutes and the constituent colleges to be elected in the manner prescribed by the Senate;

(d) five Professors including Emeritus Professors;

(e) the Registrar;

(f) the Controller of Examinations; and

(g) the Librarian.

(2) The Senate shall appoint the members of the Academic Council, other than the ex-officio members and the elected members, on the recommendation of the Vice-Chancellor:

Provided that as regards the five professors and the members representing the departments, institutes and the constituent colleges, the Senate may, as an alternative to elections, prescribe a procedure for proposal of a panel of names by the Representation Committee set up in terms of Section 23. Appointment of persons proposed by the Representation Committee may be made by the Senate on the recommendation of the Vice-Chancellor.

(3) Members of the Academic Council, other than ex-officio members, shall hold office for a period of three years.

(4) The Academic Council shall meet at least once in each quarter of the year.

(5) The quorum for meetings of the Academic Council shall be one-half of the total number of members, a fraction being counted as one.

22. Powers and functions of the Academic Council.—(1) The Academic Council shall be the principal academic body of the University and shall, subject to the provisions of this Act and the statutes, have the power to lay down proper standards of instruction, research and examinations and to regulate and promote the academic life of the University and the colleges.

(2) Without prejudice to the generality of the foregoing powers, and subject to the provisions of this Act and the statutes, the Academic Council shall have the power to,—

(a) approve the policies and procedures pertaining to the quality of academic programmes;

(b) approve academic programmes;

(c) approve the policies and procedures pertaining to student related functions including admissions, expulsions, punishments, examinations and certification;

(d) approve the policies and procedures assuring quality of teaching and research;

(e) propose to the Syndicate schemes for the constitution and organization of Faculties, teaching departments and boards of studies;

(f) appoint paper setters and examiners for all examinations of the University after receiving panels of names from the relevant authorities;

(g) institute programmes for the continued professional development of University Teachers at all levels,

(h) recognize the examinations of other universities or examining bodies as equivalent to the corresponding examinations of the University;

(i) regulate the award of studentships, scholarships, exhibitions, medals and prizes;

(j) propose regulations for submission to the Senate;

(k) prepare an annual report on the academic performance of the University; and

(l) perform such functions as may be prescribed by regulations.

23. Representation Committees.—(1) There shall be a Representation Committee constituted by the Senate through statute for recommendation of persons for appointment to the Senate in accordance with the provisions of Section 16.

(2) There shall also be a Representation Committee constituted by the Senate through statute for proposing persons for appointment to the Syndicate and the Academic Council in accordance with the provisions of Sections 19 and 21, respectively.

(3) Members of the Representation Committee for appointments to the Senate shall consist of the following namely:—

(a) three members of the Senate who are not University Teachers;

(b) two persons nominated by the University Teachers from amongst themselves in the manner as may be prescribed;

(c) one person from the academic community, not employed by the University, at the level of professor or college principal to be nominated by the University Teachers in the manner as may be prescribed; and

(d) one eminent citizen with experience in administration, philanthropy, development work, law or accountancy to be nominated by the Senate.

(4) The Representation Committee for appointments to the Syndicate and the Academic Council shall consist of the following namely:—

(a) two members of the Senate who are not University Teachers; and

(b) three persons nominated by the University Teachers from amongst themselves in the manner as may be prescribed.

(5) The tenure of the Representation Committees shall be three years:

Provided that no member shall serve for more than two consecutive terms.

(6) The procedures of the Representation Committees shall be as may be prescribed.

(7) There may also be such other Representation Committees set up by any of the other Authorities of the University as are considered appropriate for recommending persons for appointment to the various Authorities and other bodies of the University.

24. Appointment of committees by certain Authorities.—(1) The Senate, the Syndicate, the Academic Council and other Authorities may, from time to time, appoint such standing, special or advisory committees, as they may deem fit, and may place on such committee persons who are not members of the Authorities appointing the committees.

(2) The constitution, functions and powers of the Authorities for which no specific provision has been made in this Act shall be such as may be prescribed by statutes or regulations.

CHAPTER V

STATUTES, REGULATIONS AND RULES

25. Statutes.—(1) Subject to the provisions of this Act, statutes may be made to regulate or prescribe all or any of the following matters, namely:—

(a) the contents of and the manner in which the annual report to be presented by the Vice-Chancellor before the Senate shall be prepared;

(b) the University fees and other charges;

(d) the scales of pay and other terms and conditions of service of officers, teachers and other University employees;

(e) the maintenance of the register of registered graduates;

(f) admission of educational institutions to the privileges of the University and the withdrawal of such privileges;

(g) the establishment of Faculties, departments, institutes, colleges and other academic divisions;

(h) the powers and duties of officers and teachers;

(i) conditions under which the University may enter into arrangements with other institutions or with public bodies for purposes of research and advisory services;

(j) conditions for appointment of Emeritus Professors and award of honorary degrees;

(k) efficiency and discipline of University employees;

(l) the constitution and procedure to be followed by Representation Committees in carrying out functions in terms of this Act;

(m) the constitution and procedure to be followed by the Search Committee for appointment of the Vice-Chancellor;

(n) constitution, functions and powers of the Authorities of the University; and

(o) all other matters which by this Act are to be or may be prescribed or regulated by statutes.

(2) The draft of statutes shall be proposed by the Syndicate to the senate which may approve or pass with such modifications as the Senate may think fit or may refer back to the Syndicate, as the case may be, for reconsideration of the proposed draft:

Provided that statutes concerning any of the matters mentioned in clauses (a) and (k) of sub-section (1) shall be initiated and approved by the Senate, after seeking the views of the Syndicate:

Provided further that the Senate may initiate a statute with respect to any matter in its power or with respect to which a statute may be made in terms of this Act and approve such statute after seeking the views of the Syndicate.

26. Regulations.—(1) Subject to the provisions of this Act and the statues, the Academic Council may make regulations for all or any of the following matters, namely:—

(a) the courses of study for degrees, diplomas and certificates of the University;

(b) the manner in which the teaching referred to in sub-section (1) of Section 6 shall be organized and conducted;

(d) the conditions under which students shall be admitted to the courses and the examinations of the University and shall become eligible for the award of degrees, diplomas and certificates;

(e) the conduct of examinations;

(f) conditions under which a person may carry on independent research to entitle him to a degree;

(g) the institution of fellowships, scholarships, exhibitions, medals and prizes;

(h) the use of the Library;

(i) the formation of Faculties, departments and board of studies; and

(j) all other matters assigned under the provisions of this Act or may be prescribed by statutes or regulations.

(2) Regulations shall be proposed by the Academic Council and shall be submitted to the Senate which may approve them or withhold approval or refer them back to the Academic Council for reconsideration. A regulation proposed by the Academic Council shall not be effective unless it receives the approval of the Senate.

(3) Regulations regarding or incidental to matters contained in sub-clauses (g) and (i) shall not be submitted to the Senate without the prior approval of the Syndicate.

27. Rules.—(1) Subject to sub-section (2), the Authorities and the other bodies of the University may make rules consistent with this Act, statute or the regulations, to regulate any matter relating to the affairs of the University which has not been provided for by this Act or that is not required to be regulated by statutes or regulations, including rules to regulate the conduct of business and the time and place of meetings and related matters.

(2) Rules shall be made with the approval of the Syndicate.

CHAPTER VI

UNIVERSITY FUND

28. University Fund.—The University shall have a Fund to which shall be credited its income from fees, charges, donations, trusts, bequests, endowments, contributions, grants and all other sources.

29. Audits and accounts.—(1) The Accounts of the University shall be maintained in such form and in such manner as may be prescribed.

(2) The teaching departments, constituent colleges or institutes and all other bodies designated as such by the Syndicate in terms of statutes shall be independent cost centres of the University with authority vested in the head of each cost centre to sanction expenditure out of the budget allocated to it:

Provided that re-appropriation from one head of expenditure to another may be made by the head of a cost centre in accordance with and to the extent prescribed by the statutes.

(3) All funds generated by a teaching department, constituent college, institute or other unit of the University through consultancy, research or other provision of service shall be made available without prejudice to the budgetary allocation otherwise made, after deduction of overheads in the manner and to the extent prescribed by statute, to the teaching department, constituent college, institute or other unit for its development. A part of the funds so generated may be shared with the University Teachers or researchers in charge of the consultancy, research or service concerned in the manner and to the extent prescribed by statute.

(4) No expenditure shall be made from the funds of the University, unless a bill for its payments has been issued by the head of the cost centre concerned in accordance with the relevant statutes and the Treasurer has verified that the payment is provided for in the approved budget of the cost centre, subject to the authority to re-appropriate available funds to the head of the cost centre.

(5) Provision shall be made for an internal audit of the finances of the University.

(6) Without prejudice to the requirement of audit by an auditor appointed by Government in accordance with the provisions of any other law in force, the annual audited statement of accounts of the University shall be prepared in conformity with the Generally Accepted Accounting Principles (GAAP) by a reputed firm of chartered accountants and signed by the Treasurer.

CHAPTER VII

GENERAL PROVISIONS

30. Opportunity to show cause.—Except as otherwise provided by law no officer, teacher or other employee of the University holding a permanent post shall be reduced in rank, or removed or compulsorily retired from service for cause arising out of any act or omission on the part of the person concerned unless he has been given a reasonable opportunity of showing cause against the action proposed to be taken.

31. Appeal to the Syndicate and the Senate.—Where an order is passed punishing any officer other than the Vice-Chancellor or University teacher or altering or interpreting to his disadvantage the prescribed terms or conditions of his service, he shall, where the order is passed by any officer or teacher of the University other than the Vice-Chancellor, have the right to appeal to the Syndicate against the order, and where the order is passed by the Vice-Chancellor, have the right to appeal to the Senate.

32. Service of the University.—(1) All persons employed by the University in accordance with the terms and conditions of service prescribed by statutes shall be persons in the service of the University.

(2) An officer, teacher or other employee of the University shall retire from service on the attainment of such age or tenure of service as may be prescribed.

33. Benefits and insurance.—(1) The University shall constitute for the benefit of its officers, teachers and other employees schemes, as may be prescribed, for the provision of post-employment benefits at well as health and life insurance while in service.

(2) Where any provident fund has been constituted under this Act, its governing rules are to be approved by the Senate.

34. Commencement of term of office of members of Authority.—(1) When a member of a newly constituted Authority is elected, appointed or nominated, his term of office, as fixed under this Act, shall commence from such date as may be prescribed.

(2) Where a member who has accepted any other assignment without approval of the concerned official or for any other similar reason remains absent from the University for a period of not less than six months he shall be deemed to have resigned and vacated his seat.

35. Filling of casual vacancies in Authorities.—Any casual vacancy among the members of any Authority shall be filled, as soon as conveniently may be, in the same manner and by the same person or Authority that had appointed the member whose place has become vacant and the person appointed to the vacancy shall be a member of such Authority for the residue of the term for which the person whose place he fills would have been a member.

36. Flaws in the constitution of Authorities.—In case of any flaw in the constitution of an Authority, as constituted by this Act, the statutes or the regulations on account of the abolition of a specified office or because an organization, institution or other body outside the University has been dissolved or has ceased to function, or for any other similar reason, such flaw shall be removed in such manner as the Senate may direct.

37. Proceedings of Authorities not to be invalidated by the vacancies.—No act, resolution or decision of any Authority shall be invalid by reason of any vacancy on the Authority doing, _passing, or making it or by reason of any want of qualification or invalidity in the election, appointment or nomination of any defacto member of the Authority, whether present or absent.

38. First statutes and regulations.—Notwithstanding anything to the contrary contained in this Act, the Senate shall make the first statutes and regulations which shall be deemed to have been made under Sections 25 and 26 of this Act.

39. Transitory provision.—(1) Notwithstanding the provisions of this Act, as regards the University set up on the commencement of this Act, the members of the first Senate, except the University Teachers, shall be appointed by the Chancellor in accordance with the numbers and criteria for membership provided under this Act. The first Senate so constituted shall initiate, as soon as possible, the process for the recruitment of University Teachers and appointment of the members of the Syndicate and the Academic Council in accordance with the requirements of this Act.

(2) Notwithstanding the provisions of this Act, the first Vice-Chancellor shall be appointed by the Chancellor for a period of three years.

40. Management of existing constituent colleges.—(1) On the commencement of this Act, the existing Shifa College of Medicine and Shifa College of Nursing shall be deemed to be part of the University and terms and conditions of their employees shall not be less favourable than those admissible to them prior to establishment of the University.

(2) Without prejudice to the foregoing, everything done, action taken, obligations or liabilities incurred, rights and assets acquired, persons appointed or authorized, jurisdiction or powers conferred, endowments, bequests, funds or trusts created, donations or grants made, scholarships, studentship, or exhibitions instituted and orders issued under any instrument shall, if not inconsistent with the provisions of this Act, be deemed to have been respectively done, taken, incurred, acquired, appointed, authorized, conferred, created, made, instituted, granted and issued under this Act.

41. Removal of difficulties.—(1) If any question arises as to the interpretation of any of the provisions of this Act, it shall be placed before the Chancellor who decides the same keeping in view the provisions of the Act, whose decision thereon shall be final.

(2) If any difficulty arises in giving effect to any of the provisions of this Act, the Chancellor may make such order after obtaining the views of the Senate, not inconsistent with the provisions of this Act, as may appear to him to be necessary for removing the difficulty.

(3) Where this Act makes any provision for anything to be done but no provision or no sufficient provision has been made as respects the authority by whom, or the time at which, or the manner in which, it shall be done, then it shall be done by such authority, at such time, or in such manner as the Chancellor may direct after obtaining the views of the Senate.

42. Indemniy.--No suit or legal proceedings shall lie against the Government, the University or any Authority, officer or employee of the Government or the University or any person in respect of any thing which is done in good faith under this Act.

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ORDINANCE NO. I OF 2012

DRUG REGULATORY AGENCY OF PAKISTAN ORDINANCE, 2012

An Ordinance to provide for the establishment of Drug Regulatory Agency of Pakistan

[Gazette of Pakistan, Extraordinary, Part-I, 16th February, 2012]

No. F. 2(1)/2012-Pub.—The following Ordinance promulgated by the President is hereby published for general information ;—

WHEREAS it is expedient to establish a Drug Regulatory Agency of Pakistan to provide for effective coordination and enforcement of Drugs Act, 1976 (XXXI of 1976) and to bring harmony in inter-provincial trade and commerce of Drugs and therapeutic goods;

AND WHEREAS that is expedient to regulate, manufacture, import, export, storage, distribution and sale of therapeutic good and medical devices;

AND WHEREAS the Provincial Assemblies of Khyber Paktunkhwa, Punjab and Sindh have passed resolution under Article 144 of the Constitution of the Islamic Republic of Pakistan to the effect that Majlis-e-Shoora (Parliament) may by Law regulate the issue;

AND WHEREAS the Senate and the National Assembly are not in session and the President of Islamic Republic of Pakistan is satisfied that circumstances exist which render it necessary to take immediate action;

Now, THEREFORE, in exercise of the powers conferred by clause (1) of Article 89 of the Constitution of the Islamic Republic of Pakistan, the President is pleased to make and promulgate the following Ordinance:—

CHAPTER-I

PRELIMINARY

1. Short title, extent and commencement.—(1) This Ordinance may be called the Drug Regulatory Agency of Pakistan Ordinance, 2012.

(2) It extends to the whole of Pakistan.

(3) It shall come into force at once.

2. Definitions.—In this Ordinance, unless there is anything repugnant in the subject or context,—

(a) "Act" means the Drugs Act, 1976 (XXXI of 1976);

(b) "Agency" means the Drug Regulatory Agency of Pakistan established under Section 3;

(d) "CEO" means the Chief Executive Officer of the Agency appointed under Section 5;

(e) "Chairperson" means the Chairperson of the Board;

(f) "Civil servant" means a civil servant as defined in the Civil Servants Act, 1973 (LXXI of 1973);

(g) "Decision" includes an order, determination or direction of the Agency or the Board made in accordance with laws, rules and regulations;

(h) "Drug" means drug as defined in Schedule-I;

(i) "Fee" means fee prescribed by the Board for any service;

(j) "Fund" means the Drug Regulatory Agency of Pakistan Fund created under Section 19;

(k) "Inspectors" means the Inspector appointed under the Act;

(l) "Medical device" includes—

(i) instruments, medical equipment, implants, disposables and software, used mainly for the purpose of diagnosis, monitoring and treatment of disease; or

(ii) any other item which the Federal Government may, by notification in the official Gazette, declare as medical device;

(m) "Member" means a Member of the Board;

(n) "Therapeutic goods" includes drug or medicine or medical device or biologicals or other related thins as may be notified by the Agency;

(o) "Penalty" means penalty as specified in Schedule II;

(p) "Person" includes means any individual or any legal entity;

(q) "Pharmaceutical field" means regulation, manufacturing, quality control and pharmacy services in drugs.

(r) "Pharmacy Services" means services rendered by pharmacist in pharmaceutical care, selection, posology, counseling, dispensing, use, administration, prescription monitoring, pharmacoepidemiology, therapeutic goods information and poison control, pharmacovigillance, pharmacoeconomics, storage, sales, procurement, forecasting, supply chain management, drug utilization evaluation, drug utilization review, formulary based drug utilization and managing therapeutic goods at all levels including pharmacy, clinic, medical store, hospital or medical institution;

(s) "Prescribed" means prescribed by rules or regulations under this Ordinance;

(t) "Prohibitions" means prohibitions as specified in Schedule III;

(u) "Regulation" means the regulations made under this Ordinance;

(v) "Rules" means the rules made under this Ordinance;

(w) "Secretary" means Secretary of the Board; and

(x) "Schedule" means Schedule to this Ordinance;

CHAPTER-II

AGENCY AND BOARD

3. Establishment of the Agency.—(1) As soon as may be, after the commencement of this Ordinance, the Federal Government shall establish an Agency to be known as the Drug Regulatory Agency of Pakistan to carry out the purposes of this Ordinance.

(2) The Agency shall be a body corporate having perpetual succession and a common seal with powers, subject to the provisions of this Ordinance, to acquire, purchase, hold and dispose of property both movable and immovable and shall by its name sue and be sued.

The Agency shall be an autonomous body under the administrative control of the Federal Government.

(4) The Headquarters of the Agency shall be at Islamabad.

(5) The Agency may set up its establishments including sub-offices and laboratories at provincial Capitals and such other places, as it may deem necessary from time to time. The existing Federal Drugs Control Administration and the sub-offices set up in all Provinces and laboratories called the Central Drugs Laboratory, Karachi, the National Control Laboratory for Biologicals, Islamabad and the Surveillance Laboratory, Islamabad shall, upon the commencement of this Ordinance, become part of the Agency, subject to sub-section (2) of Section 14.

4. Composition of the Agency.—The Agency shall consist of a Chief Executive Officer (CEO) and seven full time Members to be appointed by the Federal Government whose qualifications, terms and conditions shall be such as may be prescribed. The members shall be designated as:

(a) Member Registration;

(b) Member Alternative Medicines/Traditional Drugs (Ayurvedic, Unani and Homeopathy);

(d) Member Licensing and Quality Control;

(e) Member Pharmacy Services;

(f) Member Pricing; and

(g) Member Administration, Human Resources and Legal Affairs:

Provided that the Federal Government, on the recommendations of the Board, may increase the number of Members and prescribe the qualifications, terms, mode and manner of their appointment.

5. Chief Executive Officer.—(1) The Federal Government may appoint a person as CEO who has a post graduate degree in pharmacy, public health, or medicine with a minimum of twenty years experience, in pharmacy services, public health, management or regulatory affairs from either public or private sector. The term of appointment shall be for a period of three years and extendable for one similar term only.

(2) The CEO shall be the head of the Agency and shall discharge such duties and perform such functions as are assigned to him by or under this Ordinance or as may be prescribed.

6. Meetings of the Agency.—(1) Save as hereinafter provided, the Agency shall regulate the procedure for its meetings.

(2) The meetings of the Agency shall be convened by and under the directions of the CEO any time on any matter requiring decision by the Agency.

7. Powers and functions of the Agency.—The powers and functions of the Agency shall be to,—

(a) administer the laws specified in the Schedule VI that apply to Federal Government, and advise the Provincial Governments for the laws that are applicable to the Provinces;

(b) monitor the enforcement of laws specified in the Schedule VI and collect relevant data and information;

(i) licensing of therapeutic goods;

(ii) registration of therapeutic goods;

(iii) specifications and laboratory practices;

(iv) prosecution and appeals under this Ordinance relating to Federal subjects;

(v) regulation and allocation of quota of narcotics and psycholropic drugs and precursor substances;

(vi) regulation for pricing and mechanism for fixation of prices;

(vii) determining standards for biological manufacturing and testing;

(viii) current good manufacturing practices;

(ix) inspections, investigations and other like functions and; and

(x) any other function under this Ordinance which the Agency may deem fit;

(d) promote Pharmacy Services;

(e) coordinate, monitor or engage, in conjunction with other organizations, Provincial Governments and international agencies, in training, study or project related to therapeutic goods. The Agency may engage any individual or counsel to advise or work for managing national and international opportunities for training, education, seminars, conferences etc; with a view to improve capacity building;

(f) facilitate the up gradation of industry to meet international standards and also to promote export of therapeutic goods;

(g) coordinate at policy level and provide policy guidance to the Provincial Governments in the performance of their functions with a purpose to bring uniformity;

(h) facilitate the procurement and implementation of foreign aided technical assistance on therapeutic goods where such expertise does not exist but its existence would promote public good;

(i) take steps for development and promotion of pharmacy services;

(j) to advise the Federal Government on issues related to obligations and commitments related to therapeutic goods;

(k) appoint such employees, consultants and experts as deemed necessary on prescribed terms and conditions including their salaries and remunerations with consultation and approval of the Board. Such recruitment, continuation and remuneration to be based on merit and productivity;

(l) prescribe rules for seniority, promotion, code of conduct and terms and condition of its employees;

(m) levy such charges or fees as may be prescribed for services and facilities provided by the Agency and its offices;

(n) carry out such other works or activities as may be deemed necessary by the Agency to carry out the purposes of this Ordinance;

(o) enter into contract for the supply of materials or for the execution of works as may be necessary for the discharge of any of its duties and functions;

(p) prepare annual budget to be approved by the Board;

(q) to monitor and regulate the marketing practices, so as to ensure rational use of drugs, and ethical criteria for promotion of therapeutic goods in line with international practices;

(r) develop working manuals, guidelines, references, materials and procedures in order to improve the working environment of offices etc, set up under the Agency;

(s) prescribe, regulate or implement measures and standards on matters related or connected with the Agency; and

(t) perform and carry out any other act, duty or function as may be assigned to it by the Federal Government.

8. Delegation of powers.—The Agency may, by general or special order in writing subject to such conditions or limitations, delegate any of its powers and functions to any of its officers as it may deem appropriate.

9. Policy Board.—(1) There shall be a Policy Board of the agency consisting of the following, namely:—

(a) Secretary, of the concerned Divisions, Chairperson

(b) CEO. Member

(d) Secretary, of the concerned Department,
Government of the Punjab. Member

(e) Secretary, of the concerned Department,
Government of the Sindh. Member

(f) Secretary, of the concerned Department,
Government of the Khyber Pakhtunkhwa. Member

(g) Secretary, of the concerned Department,
Government of the Balochistan. Member

(h) Secretary, of the concerned Department,
Government of Gilgit Baltistan. Member

(i) Representative from Federally
Administered Tribal Area. Member; and

(j) Six experts from the public and private
sector with equal representation. Member

(2) The CEO shall also be the Secretary of the Boards.

(3) The Federal Government shall, by notification in the official Gazette, appoint six expert Members, with representation from the Provinces, under clause (j) of sub-section (1) preferably one from each province having specialty in the fields of drug manufacturing industry, quality control, regulation, public health, pharmacy services, finance and health economics and management:

Provided that the expert member shall be appointed for a period of three years and shall be eligible for one more similar term only:

Provided further that the expert Member shall himself attend, the netting and shall not send a representative.

(4) No act or proceeding of the Board shall be invalid by reason only if the existence of a vacancy in the constitution of the board.

(5) Notwithstanding the composition of the Federal Government constituted under sub-section (1) and (2), the board may increase or decrease the number of its members and prescribe the qualifications and procedure for their appointment.

10. Meeting of the Board.—(1) Save as hereinafter provided, the Board shall make regulations for the conduct of its business.

(2) The meetings of the Board shall be convened by the Secretary with the prior approval of the Chairperson. In case of absence of the Chairperson, the members present may elect the Chairperson for that meeting.

(3) The meetings of the Board shall be held at least twice a year. A special meeting may also be called at any time to deal with any urgent business.

(4) A simple majority of the total membership shall constitute the quorum for a meeting of the Board and in case of equality of votes, the Chairperson or the person presiding over the meeting shall have a casting vote.

(5) All decisions, determinations taken by the Board shall be recorded in writing.

11. Functions of the Board.—(1) The Board shall have the following functions, namely:—

(a) to frame the policy and provide guidelines to the Agency and monitor the implementation and performance of the guidelines and of the functions of the Agency;

(b) approval of the Budget of the Agency;

(2) The Federal Government, as and when it considers necessary, may issue policy directives in accordance with law to the Agency in respect of its activities and the compliance whereof shall be binding on the Agency, within a stipulated time.

(3) Notwithstanding anything contained in sub-section (2) if there is any difficulty in implementation of the directions and guidelines of the Board, the Agency shall refer the case back to the Board for its review specifying reasons for non-implementation, within the stipulated time.

12. Committees of the Board.—(1) The Board may constitute committees of experts as it considers necessary or expedient to assist it in the performance of its functions under this Ordinance.

(2) A committee constituted under sub-section (1) shall act in accordance with the regulations made by the Board.

13. Invitation by Board.—The Board may invite any person to attend its meeting or deliberations including any meeting of the committees for the purpose of advising it on any matter under discussion but such person shall have no right to vote at the meeting or deliberation.

14. Appointment of officers and employees etc., of the Agency.—(1) The Agency, with approval of the Board, may create posts and appoint such officers, employees, experts and consultants, as it may consider necessary, for the performance of its functions in the prescribed manner.

(2) Selection, recruitment, appointment of all officers, employees, experts and consultants including the officers and employees of the Federal Drug Control Administration, the sub-offices or laboratories as referred in sub-section (5) of Section 3 shall be based on merit. The criteria for recruitment selection of employees officers to be determined by the Board according to the rules as prescribed.

15. Integration of Federal Drugs Control Administration its sub-offices and Laboratories.—Upon the commencement of this Ordinance, the Drugs Control Administration, its sub-offices, its Laboratories hereinafter referred to as the said offices shall become part of the Agency, and,—

(a) All assets, rights, powers, authorities and privileges and all properties, movable and immovable, cash and bank balance, reserve funds, investment and all other interest and rights in, or arising out of such properties and all debts, liabilities and obligations of whatever kind of the said offices subsisting immediately before their integration shall stand transferred to and vest in the Agency;

(b) all debts and obligations incurred or contracts entered into or rights acquired and all matters and things engaged to be done by, with or for the said offices before their integration, shall be deemed to have been incurred, entered into, acquired or engaged to be done by or for the Agency; and

(c) all suits and other legal proceedings instituted by or against the said offices before their integration shall be deemed to be suits and proceedings by or against the Agency and may be proceeded or otherwise dealt with accordingly.

(d) Notwithstanding anything contained in any contract or agreement or in the conditions of services, —

(i) every employee of the said offices under the Federal Government immediately before the commencement of this Ordinance shall be required to exercise an irrevocable option either to continue in the present pay and service structure or to opt absorption form in the agency within a period of thirty days from the date of promulgation of this Ordinance.

(ii) all employees to be included in this Scheme shall be governed by this Ordinance and the terms and conditions prescribed; and

(iii) no health personnel who opts to be governed under the Ordinance shall be entitled to any compensation because of such transfer.

16. Experts, consultants and advisers not to be civil servants.—The experts, consultants, employees or advisers employed by the Agency shall be governed by the terms and conditions of their appointment and shall not be deemed to be Civil Servant.

17. CEO and officers etc., to be public servants.—The CEO, officers, employees, experts and consultants of the Agency shall, when acting or purporting to act in pursuance of any of the provisions of this Ordinance, be deemed to be public servants within the meaning of Section 21 of the Pakistan Penal Code (Act XLV of 1860).

18. Conflict of interest.—(1) No person shall be appointed as CEO, Member consultant, advisor, officer or employee of the Agency if he or she has any financial or professional conflict of interest.

(2) No person shall be member of the Board if he has immediate family members (parent, child, sibling or spouse) as senior officials or owner of pharmaceutical companies.

CHAPTER-III

FUND, BUDGET AND ACCOUNTS

19. Drug Regulatory Agency Fund.—(1) There shall be a fund to be known as the Drug Regulatory Agency of Pakistan Fund which shall vest in the Agency and shall be utilized by the Agency to meet its expenses and charges properly incurred in connection with the carrying out of its functions and duties assigned or transferred to it under this Ordinance, including but not limited to the payment of salaries and other remuneration to the CEO, Members, employees, experts, consultants and advisers of the Agency.

(2) The Drug Regulatory Agency Fund shall be financed from the following sources namely:—

(a) initial Grant to be provided by the Federal Government;

(b) grants and loans by the Federal Government or a Provincial Government;

(c) loans and grants from the national or international agencies received by the Federal Government to finance the function of the Agency;

(d) charges and fees collected by the Agency to recover the costs of regulated activities under this Ordinance;

(e) proceeds of any investments made by the Agency which are not required for immediate use. All investments to be made by the Agency shall be with the approval of the Board; and

(f) proceeds from any other service rendered by the Agency, including Inspection Services, foreign or local, or sale of any publication.

20. Fees and other charges to be levied by the Agency.—The Agency shall levy and collect such fees, in respect of any of its functions at such rates as may be determined, from time to time by the Agency, with the approval of the Board, in accordance with rules.

21. Budget.—The Agency shall, in respect of each financial year prepare on such date as may be prescribed, a statement of the estimated receipts and expenditure, including the budgets and requirements of foreign exchange for the next financial year for consideration and approval of the Board. Any foreign exchange requirements within the overall annual approved budget by the Board shall be sent to Ministry of Finance in the Federal Government for appropriate provision and allocation.

22. Accounts and audit.—(1) The Agency may open its accounts with any scheduled Bank or financial institution within the framework of the prescribed rules with the initial grant by the Federal Government, in the amount, as may be determined by the Federal Government.

(2) The accounts of the Agency shall be maintained in the manner prescribed by the Controller General of Accounts.

(3) The Agency shall cause to be carried out audit of its accounts by one or more auditors registered as chartered accountants within the meaning of the Chartered Accountants Ordinance, 1961 (X of 1961).

(4) Notwithstanding the audit provided by in sub-section (2) the Auditor-General shall have the power to audit or cause to be audited the accounts of the Agency.

(5) A copy of the audit report shall be sent to the Federal Government alongwith the comments of the Agency.

(6) The Agency shall take the requisite steps for the rectification of any objection raised by the Auditor-General of Pakistan.

CHAPTER-IV

RULES AND REGULATIONS

23. Power to make rules.—The Federal Government, by notification in the official Gazette and in consultation with the Agency, may make rules for carrying out the purposes of this Ordinance.

24. Power to make regulations.—The Agency may, by notification in the official Gazette, with the approval of the Board, make regulations, for its internal marking and terms and condition of employees not inconsistent with the provisions of this Ordinance or the rules, for the carrying out of its functions under this Ordinance.

CHAPTER-V

MISCELLANEOUS

25. Submission of annual reports and returns.—(1) Within three months of the conclusion of each financial year, the Agency shall submit an annual report to the Federal Government in respect of the activities of the Agency including the status of its existing programmes, projects and further plans formulated in furtherance of its aims and objectives.

(2) The Federal Government may require the Agency to furnish,—

(a) any return, statement, estimate, statistics or other information regarding any matter under the control of the Agency;

(b) a report on any subject related to the Agency; and

(3) The Agency shall expeditiously comply with such directions.

26. Power to call for information.—The Agency may call for any person, involved directly or indirectly, and reasonably believed to having such information in his control or possession which is required for carrying out the purposes of this Ordinance. The person so called upon to provide such information shall do so within the period prescribed by the Agency and in case of failure to do so he shall be punished by imposition of such penalty which may not exceed one hundred thousand rupees.

27. Offences, penalties etc.—(1) The offences shall be such as specified in Schedule-III of this Ordinance.

(2) the prohibition specified in Schedule-II shall be punished in accordance with Schedule-III.

28. Offences by companies etc.—Where the person guilty of an offence under this Ordinance or the Act is a company, corporation, firm or institution, every director, partner and employee of the company, corporation, firm or institution with whose knowledge or consent the offence was committed shall be guilty of the offence.

29. Cognizance of offences.—Cognizance of offences shall be taken by the Inspector in the manner specified in Schedule-V. Cong.

30. Complaints.—(1) Any aggrieved person may file a written complaint with the Agency against contravention of any provision of this Ordinance or any law specified in the Schedule-VI.

(2) The Agency shall, on receipt of a complaint cause it to be investigated as may be prescribed and provide an opportunity to the complainant as well as the person against whom such complaints has been made. The Agency may, on completion of investigation, take any action as may be prescribed under this Ordinance or as the case may be subject to the provisions of any law specified in the Schedule.

31. Existing agreements.—If on the commencement of this Ordinance there exists an agreement in respect of, or dealing with, a regulated activity to which the Federal Government is a party, in the event of any inconsistency between the provisions of this Ordinance, the rules or the regulations, the provisions of the agreement shall prevail to the extent of the inconsistency.

32. Confidential information.—(1) Except as provided under the regulations, no person shall communicate, or allow to be communicated, any record or information obtained under this Ordinance to a person not legally entitled to that record or information or allows any person not legally entitled to that record or information to have access to any record obtained under this Ordinance.

(2) A person who knowingly receives records or information obtained under this Ordinance shall hold the record or information subject to the same restrictions under sub-section (1) as apply to the person from who the records or information were received.

33. Ordinance not to override other laws.—(1) The provisions of this Ordinance shall be in addition to and not in derogation of the provisions made in the Drugs Act, 1976 (XXXI of 1976) and any other law for the time being in force.

(2) In case of inconsistency between the provisions of this Ordinance and any other law for the time being in force, the provisions of this Ordinance shall prevail.

34. Recovery of arrears.—All amounts due to the Agency may be recovered as arrears of land revenue.

35. Indemnity.—No suit prosecution or other legal proceeding shall lie against any person for anything which is in good faith done or intended to be done under this Act or any rules or regulations made there under.

36. Power to amend Schedule.—The Federal Government may, by notification in the official Gazette amend the Schedule so as to add any entry thereto or modify or omit any entry therefrom.

37. Removal of difficulties.—If any difficulty arises in giving effect to any of the provisions of this Act, the Federal Government may make such Order by notification in the official Gazette, not inconsistent with the provisions of this Ordinance, for the purpose of removing the difficulty.

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SCHEDULE-I

[See Section 2(1)]

"Drug" includes,—(a) any substance or mixture of substances that is manufactured, sold, stored, offered for sale or represented for internal or external use in the treatment, mitigation, prevention or diagnosis of diseases, an abnormal physical state, or the symptoms thereof in human-beings or animals or the restoration, correction, or modification of organic functions in human beings or animals, including substance used or prepared for use in accordance with the ayurvedic, unani, homoeopathic or biochemic system of treatment except those substances and in accordance with such conditions as may be prescribed;

(b) abortive and contraceptive substances, agents and devices, surgical ligatures, sutures, bandages, absorbent cotton, disinfectants, bacteriophages, adhesive plasters, gelatine capsules and antiseptic solutions;

(c) such substances intended to be used for the destruction or repulsion of such vermin, insects, rodents and other organism as cause, carry or transmit disease in human beings or animals or for disinfection in residential areas or in premises in which food is manufactured, prepared or kept or stored;

(d) such pesticides as may cause health hazard to the public;

(e) any substance mentioned as monograph or as a preparation in the Pakistan Pharmacopoeia or the Pakistan National Formulary or the International Pharmacopoeia or the British Pharmacopoeia or the British Pharmaceutical Codex or the United States Pharmacopoeia or the National Formulary of the United States, whether alone or in combination with any substance exclusively used in the unani, ayurvedic, homoeopathic or biochemic system of treatment, and intended to be used for any of the purposes mentioned in sub-clauses (a), (b) and (c); and

(f) any other substance which the Federal Government may, by notification in the official Gazette, declare to be a "drug" for the purposes of this Act;

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SCHEDULE-II

[See Section 27]

PROHIBITIONS

A. Import, manufacture and sale of drug:

(1) No person shall himself or by any other person on his behalf—

(a) export, import or manufacture for sale or sell.—

(i) any spurious drug;

(ii) any counterfeit drug any misbranded drug;

(iv) any adulterated drug;

(v) any substandard drug;

(vi) any drug after its expiry date;

(vii) any drug which is not registered or is not in accordance with the conditions of registration;

(viii) any drug which, by means of any statement, design or device accompanying it or by any other means, purports or claims to cure or mitigate any such disease or ailment, or to have any such other effect, as may be prescribed;

(ix) any drug if it is dangerous to health when used in the dosage or with the frequency, or, for the duration specified, recommended or suggested in the labeling thereof; or

(x) any drug in contravention of any of the provisions of this Ordinance or rules made thereunder;

(b) manufacture for sale any drug except under, and in accordance with the conditions of, a license issued under this Ordinance;

(d) import or export any drug the import or export of which is prohibited by or under this Ordinance;

(e) import or export any therapeutic good drug for the import or export of which a license is required, except under, and in accordance with the conditions of, such license;

(f) supply an incorrect, incomplete or misleading information, when required to furnish any information under this Ordinance or the rules;

(g) peddle, hawk or offer for sale any drug in a park or public street or on a highway, footpath or public transport or conveyance;

(h) import, manufacture for sale, or sell any substance, or mixture of substances, which is not a drug but is presented in a form or a manner which is intended or likely to cause the public to believe it to be a drug;

(i) sell any drug without having a warranty in the prescribed form bearing the name and batch number of the therapeutic good issued;

(i) in the case of a drug manufactured in Pakistan, by the manufacturer holding a valid licence to manufacture drugs and permission to manufacture that drug or by his authorized agent;

(ii) in the case of an imported drug, by the manufacturer or importer of that drug or, if the drug is imported through an indentor by such indentor; and

(j) apply an incorrect batch number to a therapeutic good.

(2) Nothing in Paragraph (1) shall apply to the manufacture of small quantities of any therapeutic good for the purpose of clinical trial examination, test, analysis or personal use in small quantities.

B. Control of advertisement:

No person shall himself or by any other person on his behalf advertise, except in accordance with such conditions as may be prescribed;

(a) any therapeutic good;

(b) any substance used or prepared for use in accordance with the ayurvedic, unani, homoeopathic or biochemic system of treatment or any other substance or mixture of substances as may he prescribed;

Explanation: For the purposes of this entry "advertise" means to make any representation by any means whatsoever for the purpose of promoting directly or indirectly the sale or disposal of a drug, a substance or a mixture of substances, a remedy or a treatment except the display of sign boards for a clinic, a dispensary or a hospital or such other institution offering treatment.

C. Control of samplings:

No person shall distribute or cause to be distributed any drug as a sample except in accordance with such conditions as may be prescribed.

D. Control of printing of labelling:

No person shall print any labeling in respect of any drug which is required to be registered under this Ordinance but is not so registered after the date fixed by the Federal Government under sub-section (6) of Section 7 of the Act or for a person who does not possess a license under that Act to manufacture that drug.

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SCHEDULE-III

[See Section 27]

OFFENCES

(1) Whoever himself or by any other person on his behalf—

(a) exports, imports, manufactures for sale or sells any spurious drug or any drug which is not registered;

(b) manufactures for sale any drug without a license; or

shall be punishable with imprisonment for a term which shall not be less than three years or more than ten years and with fine which may extend to one lakh rupees:

Provided that the Drug Court may, for any special reasons to be recorded , award a sentence of imprisonment for a term of less than three years.

(2) Whoever himself or by any other person on his behalf—

Imports, manufactures for sale or sells any counterfeit drug; or

(a) gives to the purchaser a false warranty in respect of any drug sold by him that the drug does not in any way contravene the provisions of Schedule (II) and is not able to prove that, when he gave the warranty, he had good and sufficient reason to believe the same to be true; or

(b) applies or permits to be applied to any drug sold, or stocked or exhibited for sale, by him, whether on the container or a label or in any other manner, a warranty given in respect of any other drug; or

(d) imports, manufactures for sales or sells any drug under a name other than the registered name; or

(e) exports, imports, manufactures for sale or sells any drug with which any substance, which should not actually be its component, has been mixed or packed so as to reduce its quality or strength or for which any such substance has been substituted wholly or in part;

shall be punishable with imprisonment for a term which may extend to seven years, or with fine which may extend to one lakh rupees or with both.

(3) Whoever obstructs an Inspector in the exercise of any power conferred upon him by or under this Act, or disobeys the lawful authority of any Inspector, shall be punishable with imprisonment for a term which may extend to one year, or with fine which may extend to ten thousand rupees, or with both.

(4) Subject to the provisions of Paragraph (1), (2) and (3), whoever himself or by any other person on his behalf contravenes any of the provisions of this Ordinance or any rule shall be punishable with imprisonment for a term which may extend to five years, or with fine which may extend to fifty thousand rupees, or with both.

2. Penalty for subsequent offence.—(1) Whoever having been convicted of an offence under entry (1) shall be punishable with imprisonment for life or with imprisonment which shall not be less than five years and with fine which may extend to two hundred thousand rupees.

3. Penalty for violating the Prohibitions.—Whoever himself or by any other person on his behalf violates any prohibations specified in Schedule-II shall be punished with imprisonment for a term upto five years and with fine upto two lakh rupees.

SCHEDULE-IV

[See Section 29]

COGNIZANCE OF OFFENCES

(1) Subject to the provisions of Schedule-V, no prosecution shall be instituted under this Chapter except.

(a) by a Federal Inspector, where the prosecution is in respect of a contravention of clause (h) of Paragraph (1) of hereby A of Schedule-I or any of the provisions of this Ordinance or the rules relating to the import or export of drugs or the manufacture for sale, or sale, of a drug which is not for the time being registered or for the manufacture for sale of which a license is not for the lime being in force; or

(b) by a Provincial Inspector:

Provided that, where the public interest so requires, the Federal Inspector may, with the prior permission of the Federal Government, institute a prosecution for a contravention of any other provision of the Act and Ordinance.

(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1898 (Act V of 1898).

(a) an offence punishable under Schedule-III other than an offence mentioned in Paragraph (1) of Schedule shall be non-cognizable, and

(b) no Court other than a Drug Court established under the Act shall try an offence punishable under Schedule-VI. Nothing contained in this Schedule shall be deemed to prevent any person from being prosecuted under any other law for any act or omission which constitutes an offence punishable under the Act or Ordinance or to require the transfer to a Drug Court of any case which may be pending in any Court immediately before the establishment of the Drug Court.

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SCHEDULE-V

[See Section 29]

Powers of Inspectors

(1) Subject to the provisions of this Schedule and of any rules made in this behalf, an Inspector may, within the local limits for which he is appointed, and in any other area within the permission of the licensing authority,—

(a) inspect any premises-wherein any drug is manufactured, the plant and process of manufacture, the means employed for standardizing and testing the drugs and all relevant records and registers;

(b) inspect any premises wherein any drug is sold or is stocked or exhibited for sale or is distributed, the storage arrangements and all relevant records and registers;

(c) take samples of any drug which is being manufactured, or being sold or is stocked or exhibited for sale or is being distributed;

(d) enter and search, with such assistance, if any, as he considers necessary, any building, vessel or place, in which he has reason to believe that an offence under this Ordinance or any rules has been or is being committed or may continue to be committed;

(e) call any person to be present as witness in the course of search or seizure or in connection with any other matter where the presence of witnesses is necessary;

(f) seize such drug and all materials used in the manufacture thereof and any other articles, including registers, cash memos., invoices and bills, which he has reason to believe may furnish evidence of the commission of an offence punishable under this Ordinance or any rules;

(g) require any person to appear before him at any reasonable time and place to give statement, assistance or information relating to or in Connection with the investigation of an offence under this Ordinance, the Act or the rules:

Provided that the exemptions under Sections 132 and 133 of the Code of Civil Procedure, 1908 (Act V of 1908), shall be applicable to requisitions for attendance under this Schedule;

(h) lock and seal any factory, laboratory, shop, building, store-house or godown, or a part thereof, where any drug is or is being manufactured, stored, sold or exhibited for sale in contravention of any of the provisions of this Ordinance or the rules;

(i) forbid for a reasonable period, not exceeding four weeks or such further period, which shall not be more than three months, as the Inspector may, with the approval of the Provincial Quality Control Board, the Central Licensing Board, the Registration Board, or the licensing authority, as the case may be, specify, any person in charge of any premises from removing or dispensing of any drug, article or other thing likely to be used in evidence of the commission of an offence under this Ordinance or the rules; and

(j) exercise such other powers as may be necessary for carrying out the purposes of this Ordinance or any rules:

Provided that the powers under Paragraph (f) to (j) shall be exercisable only by an Inspector specifically authorized in this behalf, by an order in writing, by the Government appointing him, subject to such conditions as may be specified in such order:

Provided further that the power under Paragraph (h) may be exercised by an Inspector not authorized as aforesaid where the contravention is of a provision which requires a license to be obtained for the manufacture, storage or sale of a drug.

(2) The provisions of the Code of Criminal Procedure, 1898 (Act V of 1898), in so far as they are not inconsistent with the provisions of this Ordinance and the Act, shall apply to searches and seizures made under this Ordinance.

PROCEDURE FOR INSPECTORS

(1) Where an Inspector seizes any drug or any other article under this schedule he shall tender a receipt therefore in the prescribed form.

(2) Where an Inspector takes a sample of a drug for the purpose of test or analysis, he shall intimate such purpose in writing in the prescribed form to the person from whom he takes it and, in the presence of such person unless he willfully absents himself, shall divide the sample into four portions and effectively seal and suitably mark the same and permit such persons to add his own seal, if any, and mark to all or any of the portions so sealed and marked:

Provided that, where the sample is taken from premises whereon the drug is being manufactured, it shall be necessary to divide the sample into three portions only:

Provided further that, where the drug is made up in containers of small volume, instead of dividing a sample as aforesaid, the Inspector may, and if the drug be such that it is likely to deteriorate or be otherwise damaged by exposure shall, take three or four, as the case may be, of the said containers after suitably marking the same and, where necessary, scaling them:

Provided also that if the contents of one container are insufficient for the laboratory test and analysis, the Inspector may increase the number of the containers in order to make the sample sufficient for this purpose.

(3) The Inspector shall restore one portion of a sample so divided or one container, as the case may be, to the person from whom he takes it, and shall retain the remainder and dispose of the same within seven days as follows:—

(a) one portion of sample he shall send to the Government Analyst concerned for test and analysis;

(b) the second he shall send to the chairman, Provincial Quality Control Board or the Central Licensing Board or the Registration Board, as the case may be; and

(c) the third, where taken, he shall send to the warrantor, if any, named under the proviso to sub-section (3) of Section 32 of the Act.

(4) Where an Inspector seizes any therapeutic good containing any filthy or putrid substance, vermin, worm, rodent, insect or any foreign matter which is visible to the naked eye, and the sample is such that it cannot or need not be divided, he shall effectively seal and suitably mark the same and permit the person from whom he seizes the drug to add his own seal, if any, and mark to it and shall produce the same before the Drug Court or the Central Licensing Board or the Registration Board, as the case may be, before which proceedings are instituted or action is initiated in respect of the drug.

(5) Where an Inspector takes any action under section this Schedule.

(a) he shall as soon as practicable ascertain whether or not the drug contravenes any of the provisions of this Ordinance and, it is ascertained that the drug does not so contravene, he shall forthwith revoke the order passed under the said section or, as the case may be, take such action as may be necessary for the return of the stock seized and payment for the samples taken, under intimation to the Board concerned;

(b) if he seizes the stock of the therapeutic good he shall, as soon as may be inform the Board concerned and take its order as to the custody thereof:

Provided that where a Federal Inspector is not competent to take action under Schedule-IV, he shall as soon as may be, report the matter and hand over the stock, if any, to the Provincial Inspector for further action under this Ordinance or act.

(6) The Provincial Inspector on Finding any contravention of this Ordinance or Act shall, unless the Board otherwise directs, always refer the case to the Provincial Quality Control Board and seek orders as to the action to be taken in respect of such contravention.

(7) The Federal Inspector on finding any contravention of this Ordinance or the Act for which he authorized shall unless otherwise directed, always refer the case to the Central Licensing Board or the Registration Board or any other authority as may be specified for the purpose and seek any further orders as to the action to be taken in respect of such contravention.

-----------

SCHEDULE-VI

[See Section 30(1)]

1. The Drugs Act, 1976 (XXXI of 1976)

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ORDINANCE NO. II OF 2012

TRANSFER OF RAILWAYS (AMENDMENT) ORDINANCE, 2012

An Ordinance further to amend the Transfer of Railways
Order, 1962

[Gazette of Pakistan, Extraordinary, Part-I, 14^th March, 2012]

No. F. 2(1)/2012-Pub., dated 13.3.2012.—The following Ordinance promulgated by the President is hereby published for general information :—

WHEREAS it is expedient further to amend the Transfer of Railways Order, 1962, (P.O. No. 33 of 1962), for the purposes hereinafter appearing;

AND WHEREAS the Senate and the National Assembly are not in session and the President is satisfied that circumstances exist which render it necessary to take immediate action;

1. Short title and commencement,—(1) This Ordinance may be called the Transfer of Railways (Amendment) Ordinance, 2012.

(2) It shall come into force at once.

2. Amendment of Article 3, P.O. No. 33 of 1962.—In the Transfer of Railways Order, 1962 (P.O. No. 33 of 1962), in Article 3, clause (2) shall be omitted.

----------------------

AND WHEREAS it is expedient to establish the Intellect Property Organization of Pakistan to provide for the awareness of Intellectual Property Rights in Pakistan and for matters connected therewith or incidental thereto;

AND WHEREAS the Senate and National Assembly are not in session and the President is satisfied that circumstances exist which render it necessary to take immediate action;

PART I

PRELIMINARY

1. Short title, extent and commencement.—(1) This Ordinance may be called the Intellectual Property Organization of Pakistan Ordinance, 2012.

(2) It extends to the whole of Pakistan.

(3) It shall come into force at once, except the provisions of Section 15, 16, 17, 18 and 19 which shall come into force on such date as the Federal Government may, by notification in the official Gazette, appoint.

2. Definitions.—In this Ordinance, unless there is anything repugnant in the subject or context,—

(a) "Board" means the Policy Board constituted under Section 4;

(b) "Chairman" means the Chairman of the Organization appointed under Section 9;

(c) "Code" means the Code of Criminal Procedure, 1898 (Act V of 1898) or Code of Civil Procedure (Act V of 1908), as the case may be;

(d) "Director-General" means the Director-General appointed under Section 12;

(e) "employee" mean any officer or staff of the Organization excluding a person hired on daily wages or contingent basis;

(f) "Fund" means the fund established under Section 26;

(g) "Intellectual Property" includes a patent, industrial design, layout-design (topographies) of integrated circuits, copyright and related rights and all other ancillary rights;

(h) "Intellectual Property Laws" means the laws specified in the Schedule;

(i) "Member" means a member of the Board;

(j) "offence" means an offence as defined in Intellectual Property Laws;

(k) "Organization" means the Intellectual Property Organization of Pakistan established under Section 3;

(l) "person" includes, unless the context otherwise requires, Chairman, Director-General, directors, by whatever name called, or anyone exercising control over the affairs of such company or body corporate and in the case of firm, partnership, association of person or sole proprietorship, the partners, proprietor or any person having interest in such firm, partnership, association of person, sole proprietorship concern or direction or control thereof;

(m) "prescribed" means prescribed by rules;

(n) "rules" means the rules made under this Ordinance;

(o) "regulations" means the regulations made under this Ordinance;

(p) "Secretary" means the Director-General of the Organization;

(q) "Schedule" means the Schedule to this Ordinance; and

(r) 'Tribunal” means an Intellectual Property Tribunal established under Section 16.

PART II

THE ORGANIZATION

3. Establishment of the Organization.—(1) There shall be established an Organization to be known as Intellectual Property Organization of Pakistan to carry out the purposes of this Ordinance.

(2) The Organization shall be an autonomous body having perpetual succession and a common seal with powers, subject to the provisions of this Ordinance, to hold and dispose of property both movable and immovable and shall by the said name sue and be sued and may enter into contracts, acquire, purchase, take, hold, enjoy, covey, assign, surrender, yield up, charge, mortgage, demise, reassign, transfer or otherwise dispose of or deal with, any movable or immovable properly of every description or any interest vested in it, upon such terms as it deems fit.

(3) The head office of the Organization shall be in Islamabad. The Organization may establish and close down offices, with approval of the Board, at such places in Pakistan, as it considers appropriate.

4. Policy Board.—(1) The Federal Government shall, by notification in the official Gazette, constitute a Policy Board of the Organization consisting of the Chairman and fourteen other Members as specified in sub-section (2).

(2) The board shall consist of the following, namely:—

(a) five Members from the public sector who shall be the,—

(i) Secretary to the Government of
Pakistan, Cabinet Division, ex-officio;

(ii) Secretary to the Government of
Pakistan, Interior Division, ex-officio;

(iii) Secretary to the Government of
Pakistan, Commerce Division, ex-officio;

(iv) Secretary to the Government of
Pakistan, Information and
Broadcasting Division, ex-officio;

(v) Chairman, Federal Board of
Revenue, ex-officio;

(b) five Members to be appointed by the Federal Government from private sector; and

(c) four Members from the provinces to be appointed by the Federal Government. Eligibility criteria of these Members shall be specified by the Federal Government, by notification in official Gazette, in consultation with the Chairman.

(3) The Chairman shall be the Chairman of the Board.

(4) The Director-General shall also act as secretary of the Board.

(5) If any Member specified in clause (a) of sub-section (1) is absent or is unable to attend a meeting of the Board, he may authorize an officer, not below the rank an officer of BPS-20 of his Division.

(6) The Chairman shall, in the event of a tie, have a casting vote.

(7) The Members from private sector shall be appointed by the Federal Government for a term of three years and shall be eligible for re-appointment for a second term of three years.

(8) In case of death, resignation or removal of a Member another person may be appointed as a Member for the term specified in sub-section (7).

(9) The Chairman shall initiate the proposal for appointment of members, other than ex-officio Members within sixty days of occurrence of vacancy for the approval of the Federal Government.

(10) No person shall be appointed or continued as a Member if he,--

(a) has been convicted of an offence involving moral turpitude; or

(b) has been or is adjudged insolvent;

(c) is incapable of discharging his duties by reason of physical, psychological or mental unfitness and has been declared so by a registered medical practitioner appointed by the Federal Government, and;

(d) deemed incapable of carrying out his responsibilities for any other reason.

5. Power of the Federal Government.—Notwithstanding anything contained in this section the Federal Government may, by notification in the official Gazette, increase or decrease the number of Members of the Board and issue directions to the Organization.

6. Functions etc., of the Board.—(1) The Board shall be responsible for setting of objectives and policy guidelines of the Organization.

(2) Subject to the provisions of this Ordinance, in particular and without prejudice to the generality of sub-section (1), the Board shall,—

(a) take policy decisions as well as advise the Federal Government on all matters relating to—

(i) developing processes, service structure and propose rules for the services specifically designed to ensure protection of Intellectual Property Laws in Pakistan;

(ii) ensuring implementation of Intellectual Property rights in Pakistan in coordination with concerned agencies; and

(iii) expressing its opinion in writing on any policy matter referred to it by the Federal Government or the Organization;

(b) consider and approve policies, plans and programmes of the Organization;

(c) consider and approve, with or without modification, any regulations, with respect to implementation of policy decisions proposed to be made by the Organization under this Ordinance;

(d) formulate procedures and necessary framework for utilization of funds generated or acquired through services, donations, investments or grants, etc.;

(e) specify and propose fees, penalties and other charges chargeable by the Organization with the approval of Federal Government for carrying out the purposes of this Ordinance; and

(f) exercise all such powers and perform all such functions as are conferred or assigned to it under this Ordinance.

(3) All policy decisions, including the change in the previously established policy, in respect of all and any matters within the jurisdiction of the Organization shall be made only by the Board.

(4) All policy decisions and directives of the Board shall be published in the official Gazette.

7. Delegation of powers.—The Board may, by general or special order in writing subject to such limitations, restrictions or conditions, delegate all or any of its powers and functions to the Chairman.

8. Meetings of the Board.—(1) The meeting of the Board shall be convened by and under the directions of the Chairman:

Provided that the Federal Government may direct convening of a meeting of the Board at any time, on any matter requiring a decision by the Board.

(2) The Board shall meet as often as may be necessary for the performance of its functions but it shall meet not less than two times in a calendar year.

(3) A simple majority of the total membership shall constitute the quorum for a meeting of the Board. Agenda of the meeting shall be presented only once the quorum is complete. The decision in the Board shall be taken by simple majority of the Members present and voting.

(4) Subject to the provisions of this Ordinance, the procedure and conduct of business of the Board shall be regulated by the regulations.

(5) No act or proceedings of the Board shall be invalid by reason only of the existence of a vacancy in the constitution of the Board.

(6) In case the Chairman is absent or his office is vacant for any reason, the Secretary Cabinet Division shall chair the meetings of the Board.

9. Chairman.—(1) There shall be a Chairman of the Organization to be appointed by the Federal Government for a term of three years.

(2) The Chairman shall be entitled to such privileges and perquisites as may be prescribed.

(3) The Chairman may resign from his office at any time by notice in writing addressed to the Federal Government.

(4) A vacancy in the Organization caused by the death or resignation of the Chairman shall be filled by the Federal Government within ninety days of the occurrence of such vacancy.

(5) The Chairman may, by general or special order in writing, subject to such limitations, restrictions or conditions, delegate all or any of his powers and functions to the Director-General including the powers delegated to him under Section 7.

10. Privileges and perquisites of the Members.—The Members other than public sector Members, shall be entitled to such privileges and perquisites as may be prescribed.

11. Functions and powers of the Chairman.—(1) The Chairman shall preside the meetings of the Board.

(2) The Chairman shall supervise and oversee the Director-General in the performance of his duties and responsibilities under this Ordinance and shall guide and direct him, as deemed necessary.

(3) The Chairman shall exercise all such powers and perform all such functions as are conferred or assigned to him under this Ordinance.

12. Director-General.—(1) There shall be a Director-General of the Organization who shall be appointed by the Federal Government in consultation with the Chairman on such terms and conditions as may be prescribed.

(2) A person shall not be appointed as a Director-General unless he is a Federal Government officer of not below the rank of BPS 21.

(3) The Director-General shall be the functional head of the Organization and shall be responsible for day to day administration of the affairs of the Organization.

(4) The Director-General shall comply with such directions and decisions of the Federal Government, Chairman or the Board issued from time to time.

(5) The Director-General shall assist the Chairman in formulating policy framework to update the Organization and to fulfill obligations of the State on the subject to be presented before the Board for approval.

(6) The Director-General shall be competent in managing the human resource and other recourses of the Organization in the light of Ordinance and the decisions of the Federal Government, Chairman and the Board.

13. Powers and functions of the Organization.—The powers and functions of the Organization shall be to,—

(i) administer and coordinate all Government systems for the protection and strengthening of Intellectual Property Laws and the rules and regulations made thereunder;

(ii) manage or implement measures and standards on any matter related to or connected with Intellectual Property;

(iii) accredit or certify any person as Intellectual Property agent;

(iv) levy such charges or fees for services and facilities provided by the Organization and its constituent offices with the approval of Federal Government;

(v) carry out such other works or activities as may be deemed by the Organization to be necessary, with a view to making the best use of the assets of the Organization;

(vi) coordinate, monitor or engage, in conjunction with other authorities, international agencies or organizations, in any study, training or cooperation project related to Intellectual Property;

(vii) enter into contracts for the supply of goods or services or materials or for the execution of works as may be necessary for the discharge of any of its duties and functions;

(viii) control, manage, supervise, direct and coordinate the working of all offices established under Intellectual Property Laws and any other office or registry established under Intellectual Property Laws to be notified by the Federal Government and any other registry or office as may be prescribed;

(ix) evolve and maintain a system to provide access to public documents and information relating to any Intellectual Property kept or maintained by the Organization;

(x) advise the Federal Government on policy relating to Intellectual Property rights;

(xi) plan for development and upgradation of the Intellectual Property infrastructure and capacity in Pakistan;

(xii) promote education and research in the field of Intellectual Property;

(xiii) advise the Federal Government regarding the international negotiations in the area of Intellectual Property;

(xiv) engage in human resource development and training of its officers and staff;

(xv) promote awareness about Intellectual Property issues in the public and private sector through print and electronic media, etc;

(xvi) liaise and interact with counterpart Intellectual Property related organizations in other countries for capacity building and exchange of information;

(xvii) propose and initiate Intellectual Property Rights legislation for the protection of Intellectual Property Rights in Pakistan;

(xviii) initiate and monitor the enforcement and protection of Intellectual Property rights through designated law enforcement agencies of the Government, Federal or Provincial and collect related data and information;

(xix) initiate and conduct inquires, investigations and proceedings related to offences in the prescribed manner;

(xx) refer matters and complaints, related to offences under the laws specified in the Schedule, to the concerned law enforcement agencies and authorities as may be necessary for the purposes of this Ordinance;

(xxi) advice any person, legal or natural, on any matters related to Intellectual Property rights including compliance, enforcement and infringement thereof;

(xxii) develop working manuals, references, materials and procedures in order to assist in improving the protection of Intellectual Property rights;

(xxiii) engage in Intellectual Property rights advocacy;

(xxiv) coordinate the implementation of foreign-aided technical assistance projects on Intellectual Property;

(xxv) attend foreign funded international forums, conferences, meetings or training programmes etc., with the approval of Federal Government.

(xxvi) work for rectification of instruments as suited to the best national interest; and

(xxvii) perform and carry out any such other acts, things or functions relating to Intellectual Property assigned to it by the Board or the Federal Government.

14. Intellectual Property rights advocacy.—The Organization shall promote Intellectual Property through advocacy which, among others, shall include,—

(a) creating awareness and imparting training about Intellectual Property issues and taking such other actions as may be necessary for the protection of Intellectual Property rights;

(b) reviewing policy frameworks for Intellectual Property rights and making suitable recommendations for amendments to other laws that affect Intellectual Property rights in Pakistan to the Federal Government and Provincial Governments;

(c) holding open hearings on any matter affecting the state of Intellectual Property rights in Pakistan or affecting the State's commercial activities in this regard and expressing publicly an opinion with respect to the issue;

(d) posting on its website inquiries under review and completed and educational material etc; and

(e) coordinating with trade associations and other related Organizations or fora for awareness and implementation of the laws mentioned in the schedule.

15. Trial and offences.—Notwithstanding anything contained in any other law for the time being in force, an accused shall be tried and prosecuted for an offence in the Tribunal and the case shall be heard from day to day and shall be disposed of within ninety days.

16. Establishment of Intellectual Property Tribunals.—(1) The Federal Government may, by notification in the official Gazette, establish as many Tribunals as it considers necessary to exercise jurisdiction under this Ordinance, appoint a Presiding Officer for each of such Tribunal and where it establishes more Tribunals than one, it shall specify in the notification the territorial limits within which each of the Tribunal shall exercise its jurisdiction.

(2) Where more than one Tribunal has been established to exercise jurisdiction in the same territorial limits, the Federal Government shall define the territorial limits of each such Tribunal.

(3) Where more than one Tribunal has been established in the same or different territorial limits, the High Court may, if it considers it expedient to do so in the interest of justice or for the convenience of the parties or of the witnesses, transfer any case from one Tribunal to another.

(4) A Presiding Officer of the Tribunal shall be appointed by the Federal Government after consultation with the Chief Justice of the High Court concerned in which the Tribunal is established and no person shall be appointed a Presiding Officer of a Tribunal unless he,—

(a) has been a Judge of High Court; or

(b) is or has been a District and Sessions Judge; or

(5) A Tribunal shall hold its sitting at such places within its territorial jurisdiction as may be determined by the Federal Government.

(6) The Presiding Officer of a Tribunal, not being a District and Sessions Judge, shall be appointed for a term of three years from the date on which he enters upon his office.

(7) The salary, allowances and other terms and conditions of service, of a person appointed as a Presiding Officer of a Tribunal shall be the same as that of a Judge of a High Court.

(8) A person, not being a District and Sessions Judge, appointed as a Presiding Officer of a Tribunal may, by notice in writing under his hand addressed to the Federal Government, resign from his office.

(9) A Presiding Officer shall not be removed or transferred from his office before the completion of term of office without the consultation of the Chief Justice of the High Court concerned.

(10) A Presiding Officer shall be eligible for re-appointment for a similar term and shall cease to hold office on attaining the age of sixty-five years or the expiry of term, whichever is earlier.

(11) The Tribunal may, if it so requires, be assisted in technical aspects of Intellectual Property rights involved in any case by an expert who has experience and expertise in the matters of Intellectual Property rights.

(12) Remuneration of the expert, and the party or parties by whom the same shall be payable shall be determined by the Tribunal keeping in view the circumstances of each case.

17. Powers of the Tribunals.—(1) Subject to the provisions of the Ordinance, the Tribunal shall,—

(a) in the exercise of its civil jurisdiction have all the powers vested in a Civil Court under the Code of Civil Procedure, 1908 (Act V of 1908);

(b) in the exercise of its criminal jurisdiction, try offences made punishable under this Ordinance and shall, for this purpose have the same powers as are vested in a Court of Sessions under the Code of Criminal Procedure, 1898 (Act V of 1898);

(c) in the exercise of its appellate jurisdiction have all the powers vested in a Court of appeal under the Code of Civil Procedure, 1908 (Act V of 1908).

(2) The Tribunal shall in all matters with respect to which the procedure has not been provided for in this Ordinance, follow the procedure laid down in the Code.

(3) All proceedings before the Tribunal shall be deemed to be judicial proceedings within the meaning of Sections 193 and 228 of the Pakistan Penal Code (Act XLV of 1860).

(4) Subject to sub-section (5), no Court other than a Tribunal shall have or exercise any jurisdiction with respect to any matter to which the jurisdiction of the Tribunal extends under this Ordinance.

(5) Nothing in sub-section (4) shall be deemed to affect any proceedings pending before such Court immediately before the coming into force of this Ordinance.

(6) All suits and proceedings pending in any Court instituted under Intellectual Property laws shall stand transferred to, and be heard and disposed of by, the Tribunal having jurisdiction under this Ordinance. On transfer of proceedings under this sub-section, the parties shall appear before the Tribunal concerned on the date previously fixed.

(7) In respect of proceedings transferred to the Tribunal under sub-section (6), the Tribunal shall proceed from the stage which the proceedings had reached immediately prior to the transfer and shall not be bound to recall and re-hear any witness and may act on the evidence already recorded or produced before a Court from which the proceedings were transferred.

18. Jurisdiction of the Tribunals.—(1) All suits and other civil proceedings regarding infringement of Intellectual Property Laws shall be instituted and tried in the Tribunal.

(2) Notwithstanding anything contained in any other law for the time being in force, the Tribunal shall have exclusive jurisdiction to try any offence under Intellectual Property Laws.

(3) Notwithstanding anything contained in any other law for the time being in force, any person aggrieved by any order or decision of,—

(a) the Registrar or the Copyright Board under the Copyright Ordinance, 1962 (Ordinance XXXIV of 1962);

(b) the Registrar under the Trade Marks Ordinance, 2001 (Ordinance XIX of 2001);

(d) the Registrar under the Registered Designs Ordinance, 2000 (Ordinance XLV of 2000);

(e) the Controller under the Registered Layout-Designs of Integrated Circuit Ordinance, 2000 (Ordinance XLIX of 2000); and

(f) any other authority created under any Intellectual Property Law as may be notified by Federal Government, may prefer an appeal to the Tribunal, within sixty days of such order or decision.

19. Appeals from Tribunal.—Any person aggrieved by the final judgment and order of the Tribunal under this Ordinance may, within thirty days of the final judgment or order of the Tribunal, prefer an appeal to the High Court having territorial jurisdiction over the Tribunal.

20. Authentication of orders and other instruments of the Organization.--All orders, decisions and all other instruments issued by the Organization shall be authenticated only by the signatures of such officer or officers who are authorized by the Director-General in this behalf.

21. Prohibition of use of certain names, marks, seals, etc.—No person shall use—

(a) any name, mark or seal, which may resemble the name, mark or seal of the Organization or contain the expression or any abbreviation of such expression; or

(b) any mark or Intellectual Property in relation to any article or process containing the expression Organization of Pakistan or any abbreviation of such expression.

22. Exercise of powers of the Organization by other bodies.—The Federal Government may, in consultation with the Organization, by notification in the official Gazette, direct that any power exercisable by the Organization under this Ordinance shall, in relation to such matters and subject to such conditions as may be specified in the direction, be exercisable also by such body or such organization as may be specified in the notification.

23. Certain matters to be kept confidential.—Any information coming into notice of the Organization or any of its officers in relation to any article or process, subject to the provision of this Ordinance or any other law for the time being in force shall be treated as confidential and shall not be communicated or revealed to any person:

Provided that nothing in this section shall apply to the disclosure of any information for the purpose of prosecution under this Ordinance.

24. Appointment of officers, etc. by the Organization.—(1) The Organization may, with the prior approval of the Board, create posts and appoint such officers, employees, experts and consultants, on such terms and conditions as may be prescribed.

(2) The Director-General shall be empowered for transfers and postings of all the officers, employees and servants of the Organization, the Trademarks Registry, Copyright Office and Patent Office as he deems fit and appropriate for proper and efficient working of the Organization.

(3) The civil servants working in the Organization shall be governed by the Civil Servants Act, 1973 (LXXI of 1973), and rules made there under unless absorbed in the Organization.

25. Members and officers, etc., to be public servants.—The Chairman, Members, Director-General, officers, employees, experts and consultants of the Organization shall, when acting or purporting to act in pursuance of any of the provisions of this Ordinance, be deemed to be public servants within the meaning of Section 21 of the Pakistan Penal Code (Act XLV of 1860).

26. Intellectual Property Organization of Pakistan Fund.—(1) There shall be established a fund to be known as Intellectual Property Organization of Pakistan Fund which shall vest in the Organization and shall be utilized by the Organization to meet charges in connection with its functions under this Ordinance including the payment of salaries provident fund, loans and advances, staff welfare assistance package, and other remuneration to the Chairman, Director-General, officers, employees, experts and consultants of the Organization and payment against hired services of and for the Organization. The Fund may also be used for workshops, seminars and other events arranged by the Organization regarding Intellectual Property Rights.

(2) The Fund shall be financed from the following sources, namely:—

(a) grants and loans made by the Federal Government or a Provincial Government;

(b) loans, aid and donations from the national or international agencies;

(d) income and profits derived from the investments made by the Organization.

(3) The Fund shall be kept in one or more accounts maintained by the Organization, in local or foreign currency, in any scheduled bank in Pakistan and shall be operated in accordance with the directions of the Board.

27. Budget.—The Organization shall, in respect of each financial year submit for approval of the Federal Government, on such date as may be prescribed, a statement of the estimated receipts and expenditure, including requirements of foreign exchange for the next financial year.

28. Audit and Accounts.—(1) The Organization shall cause proper accounts to be kept and shall as soon as practical after the end of each financial year cause to be prepared for that financial year a statement of accounts of the Organization, which shall include balance sheet and an account of income and expenditure.

(2) Within sixty days after the end of each financial year, the annual financial statements of the Organization shall be audited by the Auditor-General of Pakistan or a firm of chartered accountants nominated by the Auditor-General of Pakistan.

(3) The auditors shall make a report to the Organization upon the balance sheet and accounts and in such report they shall state whether in their opinion the balance sheet is a full and fair balance sheet containing all necessary particulars and properly drawn up so as to exhibit true and correct view of the affairs of the Organization and, in case they have called for any explanation or information from the Organization, whether it has been satisfactorily given or not.

29. Power to amend the Schedule.—The Federal Government may, in consultation with the Board, amend the Schedule so as to add any entry thereto or modify or omit any entry there from.

30. Submission of yearly reports and returns.—(1) Within three months of the conclusion of each financial year, the Board shall submit an Annual Report together with a copy of statement of accounts of the Organization certified by the auditors and a copy of the auditors’ report to the Federal Government in respect of the activities of the Board including the status of its existing programmes, projects and further plans formulated in furtherance of its aims and objectives.

(2) The Federal Government may require the Organization to submit it to,—

(a) any return, statement, estimate, statistics or other information regarding any matter under the control of the Organization;

(b) a report on any subject with which the Organization is concerned; and

31. Protection of action taken under the Ordinance.—No suit, prosecution or other legal proceeding shall lie against the Federal Government, the Board or the Organization or any person acting under the Federal Government or the Organization for anything which is in good faith done or intended to be done in pursuance of this Ordinance or any rule or regulation made there under.

32. Exemption from any provision of this Ordinance—The Federal Government may, by Notification in the official Gazette, exempt any article or class of articles from the operation of all or any of the provisions of this Ordinance.

33. Policy directives.—The Federal Government may, as and when it considers necessary, issue policy directives to the Board in respect of its role and functions and the compliance of such directives shall be binding on the board.

34. Power to make rules.—The Organization may, with the approval of Federal Government, by notification in Official Gazette make rules for carrying out the purposes of this ordinance.

35. Power to make regulations.—The Organization may, with the prior approval of the Board and by notification in the official Gazette, make regulations regarding appointment and other terms and conditions of employees not inconsistent with this Ordinance or the rules made there under to carry out the purposes of this Ordinance.

36. Integration of the Intellectual Property's Registry, Copyright Office and Patent Office.—Notwithstanding anything contained in any other law for the time being in force and upon the commencement of this Ordinance, the Trademarks Registry, Copyright Office and Patent Office hereinafter referred to as the said offices shall become part of the Organization,—

(a) all assets rights, powers, authorities and privileges and all properties, movable and immovable, cash and bank balance, reserve funds, investment and all other interest and rights in, or arising out of such properties and all debts, liabilities and obligations of whatever kind of the said offices subsisting immediately before their integration shall stand transferred to and vest in the Organization;

(b) all officers and other employees of the said offices shall, not-withstanding anything contained in any law or in any agreement, deed, document or other instrument, shall stand absorbed and transferred to the Organization and shall be deemed to have been appointed or engaged by the Organization in accordance with the terms and conditions which shall not be less favourable than in the said offices; and no officer or other employee whose services are so absorbed and transferred shall be entitled to any compensation because of such absorption or transfer. Such officers and other employees shall have the option either to remain civil servants or to be employees of the Organization. The option once exercised shall be irrevocable. After exercising the option, the employee or employees shall cease to be a civil servant for all purposes and shall be entitled to such remuneration, allowances and other terms and conditions of the employment as are applicable to the employees of the Organization. In the event of such a person opting to remain as a civil servant, he shall continue to be governed by Civil Servants Act, 1973 (LXXI of 1973) and the ancillary rules made thereunder in all matters. The Organization shall contribute to the pension, gratuity and final payment of provident fund in accordance with the rules as applicable to the civil servant;

(c) all debts and obligations incurred or contracts entered into or rights acquired and all matters and things engaged to be done by, with or for the said offices before their integration, shall be deemed to have been incurred, entered into, acquired or engaged to be done by or for, the Organization; and

(d) all suits and other legal proceedings instituted by or against the said offices before their integration shall be deemed to be suits and proceedings by or against the Organization and may be proceeded or otherwise dealt with accordingly.

37. Authorities to assist and aid the Organization.—All concerned law enforcement agencies and authorities in the Federation and the Provinces shall be under an obligation to provide and render full and complete assistance to the Organization as the Chairman or Director-General may deem fit and proper to demand or require for carrying out the purposes of this Ordinance.

38. Removal of difficulties.—In case any difficulty arises in giving effect to this Ordinance, the Federal Government may, for the purposes of removing such difficulty, make such order as it considers expedient and any such order shall be deemed to be, and given effect to, as a part of the provisions of this Ordinance.

39. Ordinance to override other laws.—The provisions of this Ordinance shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force.

40. Validation of actions, etc.—Anything done, actions taken, orders passed, instruments made, notifications issued, agreements made, providing, initiated, process or communication issued, powers confirmed, assumed or exercised, by the Intellectual Property Organization or its officers on or after 25th March 2010 and before commencement of this Ordinance, shall be deemed to have been validly done, made, exercised, taken, initiated, confirmed, assumed, executed, exercised and provisions of this Ordinance shall have, and shall be deemed to always to have had, effect accordingly.

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THE SCHEDULE

[See Section 2(h)]

(1) The Trade Marks Ordinance, 2001 (XIX of 2001);