Lahore - The Lahore High Court suspended the circular quo petitioner insurance company which demands contribution towards costs of maintaining Insurance Ombudsmans Secretariat for the period from July 1, 2010 to June 30, 2011. The court admitted the petition for regular hearing and issued notices to the respondents Securities & Exchange Commission of Pakistan (SECP), chairman SECP and others. The court issued notice to attorney general of Pakistan as the question involves interpretation of the constitutional law. The petitioner company contended that section 126(4) of the Insurance Ordinance violates the Constitution and it amounts to excessive delegation of powers to the executive. The provision failed to provide any procedural safeguards against misuse of power by the SECP. Under the section unbridled powers have been given to the commission which is an administrative body to determine what amounts of cost are to be paid by different companies. Insurance companies are already paying taxes and it is unfair that in addition to that costs of the governments secretariat are also imposed on them. The cost of insurance ombudsmans secretariat imposed on the insurance companies is unreasonable as constitution envisages imposition of the taxes, fees and levy but it does not envisage imposition of costs on the private parties or individuals. The petitioner therefore contended that the circular in question is illegal and has been imposed with malafide intentions which required the petitioner company to make a payment of Rs 2,50,000 as sharing costs of the Insurance Ombudsmans Secretariat for period of July 1, 2010 to June 30, 2011. The court after hearing the petitioner counsel Umer Abdulah at length admitted the petition for regular hearing and issued notices to the respondents.