PLJ 1997 Peshawar 120 (DB)
Present:
MIAN SHAKIRULLAH JAN AND KHALIDA RACHID,
JJ.
MUSLIM COMMERCIAL BANK LTD.-Appellant
versus
M/s ADAMJEE PAPER & BOARD MILLS
LTD. and two others-Respondents
F.A.O. No. 11 of 1995 announcement on 13.3.1997.
(i) Banking Companies (Recovery of Loans) Ordinance, 1979
(XIX
of
1979)--
—-S. 12-Civil Procedure Code, 1908 (V of 1908), Order 43, Rule 1 (ii),
(Ordinance of 1908), S. 5-Whether appeal against order of Special Court
would competent under any provision of law except section 12 of
Ordinance-Question of-Opening sheet as well as caption of appeal
indicate that appeal was intended by appellant to have been filed under
order 43 Rule 1 (ii) C.P.C. read with Section 15 of Ordinance of 1990-
Admitted before Judge of High Court but he was not acting as Judge
Special Court establishment under Ordinance-Right of appeal has been
given to aggrieved party against judgment and decree or order which
shall be heard by Bench of not less than two Judges-By reading of
Section No. 11 and 12 it is manifest that if any person is feeling aggrieved of order of Special Court, he can file appeal only under Section 12 and not
under any other provision of law as section 3 precludes applicability of
any other provision of law which has been provided for in Ordinance and
section 12 with regard to filing grounds upon which appeal will have to be
filed, with complete bar with regard to filing of appeal against
interlocutory order-According to Section 2 (f)(ii) of Ordinance, High
Court while trying suit under ordinance would be Special Court and act
in exercise of its civil original jurisdiction-Then for purpose of section 12
of Ordinance it will be also treated as Special Court-Held: In view of bar
contained in section 12(1) of Ordinance, appeal against interlocutory
order was held to be barred and would not be competent under any other
provision of law-Held further : Appeal apart from section 15 of
Ordinance 10 of 1980 is not competent under Order 43, rule 1 C.P.C.-
Appeal not maintainable and accordingly dismissed.
[P. 133,134 & 137] J, K, L, M & N
PLD 1987 Kar. 501, PLD 1993 SC 109, PLJ 1981 Lahore 583, PLJ 1981 SC
795 and PLD 1970 Lah. 641.
(ii) Civil Procedure Code, 1908 (V of 1908)--
—O. XLIII, Rule 3-Issuance of notice to respondents by appellant before
presentation of appeal-Whether obligatory-Wehther non compliance of
law in present case does not render provision of Rule 3, futile, inutile and
nugatory-Question of-In instant case, learned Division Bench had issued
pre-admission notice to advocate of respondents (Petitioner herein) and their Advocate on pre-admission notice-Thus, he could contest admission
of appeal and seeks its dismissal
in limine--No
grievance, furthermore,
was made by him to the effect that during hearing of appeal has not been
supplied to him or that he was otherwise taken by surprise-Thus, in this
case all objects for which Rule 3 was inserted in Order XLIII of C.P.C.
were satisfied in substance-Held : Decision of Learned Judges of
Division Bench to reject preliminary objection is upheld-Held further :
Non-Compliance of Order XLIII, Rule 3 CPC by not giving notice for
filing appeal to respondent would be of no consequence as objection is
over ruled.
[Pp. 131 & 132] F, G, H & I
PLD 1983 SC 693.
(iii) Limitation Act of 1908 (V of 1908)--
-S. 22, Civil Procedure Code (V of 1908) S. 107, 151, Order 41, Rule 20 &
Order I Rule 10—Impleading of party during pendency of appeal-
Whether S. 22 of Limitation Act, 1908 is applicable to appeals-Is there
any analogous provision with respect of appeal-Question of-According to ' Section 22 of Limitation Act, if party is added to suit which has already
been instituted, then as regards newly added partly suit shall be deemed to have been instituted when it was so made party-Here in this case, it is not suit but appeal to which respondent No. 3 was added at instance of
appellant after period of limitation-Order 41, Rule 20 of Civil Procedure
Code empowers appellate court to direct that man who ought to be party
in appeal to be made respondent-Rule 10 of Order 1, C.P.C. when had
with Section 107 C.P.C. is applicable also to appeal-Order 1, rule 10 of
C.P.C. which empowers court to add person as party who ought to have
been joined or whose presense before court is necessaiy in order to enable court to adjudicate effectually and completely upon all questions involved
in suit-According to Section 107 C.P.C. appellate court shalj have same
powers and to perform same duties as are conferred and imposed by
C.P.C. on courts of original jurisdiction in respect of suits-By reading
these provisions together, then appellate court can add party to appear, if
necessary-Court even otherwise, has got sufficient powers under
S.
151
C.P.C. to add any party to appeal-Held : Respondent No. 3, has been
impleaded when period of limitation has rule out for filing appeal but that would be of no consequence in view of its subsequent impleadment in
appeal-Held further : Provisions of S. 22 of Limitation Act are not
applicable to appeals.
[Pp. 128, 129, 130 & 131] A, B, C, D & E
PLD 1989 SC 532, AIR 1930 Lah. 295 and 1988 MLD 113.
M/s. Abdul Sattar Finger & Ghulam Nabi,
Advocates for Muslim
Commercial Bank alongwith
Sher Bahadur,
Controller M.C.B.
M/s Fazal Ghani Maalik, M. Sardar Khan, Mr. Samiullah Jan
and
Bashirullah Khan,
Advocates for Respondent. Dates of hearing: 16 and 17-9-1996 and 13-3-1997.
JUDGMENT
Mian Shakirullah Jan, J.--This appeal is directed against the
judgment and order of the Special Court established under the Banking
Companies (Recoveiy of Loans) Ordinance, 1979 (hereinafter referred to as
the Ordinance) whereby, during the execution proceedings, .the application
submitted by the appellant under Order XXI Rule 58 C.P.C. was turned
down.
2.
M/s.
Adamjee Paper and Board Mills Ltd., respondent No. 1 (hereinafter referred to as respondent No. 1) a company, obtained loan and
availed banking facilities from the Pakistan Industrial Credit and Investment Corporation Ltd. (respondent No. 2) and on account of failure of respondent
No. 1 to pay the amount alongwith interest and other charges to respondent
No. 2, the latter filed a suit for the recoveiy of an amount of Rs. 2,38,87,876/-
before the Special Court Banking Companies and in which respect a
preliminary decree was passed on 13.10.1993, and final decree was, stated to
have been, passeii on 30.3.1994. The respondent No. 2 in pursuance of the
decree obtained, initiated execution proceedings during which proceedings,
the factory/property of respondent No. 1 was attached. The appellant, The
Muslim Commercial Bank Ltd., during the execution proceedings, submitted
an application under Order XXI Rule 58 C.PJ., making a prayer for the
vacation of the order of attachment/sale of stocks, goods, assets which are
lying at the factory premises of the judgmert-debtor, respondent No. 1. In the application, the appellant has stated thft it is also a Banking Company and the judgment-debtor has requested theappellant for credit and banking
facilities against hypothecation of stock md fixed assets in the sum of
Rs. 6,05,00,000/- and agreed to create a sg.ond charge and which facility was
availed by respondent No. 1. It has alsobeen stated therein that in view of the continued failure and default on tie part of the appellant in making
payment of the outstanding dues, thf appellant sewed respondent No. 1
with a notice dated 18.2.1993 callingupon it (respondent No. 1) to make payment of the amount then outstanding, due and payable and efter which
the winding up proceedings were ?so initiated before the High Court of
Sindh at Karachi
vide
J. Misc. No. 5>/94. The appellant stated tlut it had got
the knowledge of the execution 'roceedings on 15.4.1995 when a public
notice was published in the Bail' Mashriq, Peshawar to the effect that all
the assets of respondent No. 1 vould be sold in the execution of a decree
obtained by the decree-holder (jjspondent No. 2) and that the sailed bids for
the same were invited. Thus the application in question was submitted
before the
Executing Court
ftereinafter called as the Court) :>n 24.4.1995
vide
C.M. No. 2/95. The or-er sheet of-the Court dated 24.4.1995 reveals that an auction was held in-he Court whereby after giving fulldetails of the
auction proceedings, it was^lso observed :--
"The leaned counsel for the decree-holcer and the
Deputy Managing Director PICIC after lonsented to
accept the offer of Mr. Moazzam Ali Klan of Abid
International.
.................
They submitted writtei consent for
the Acceptance of the improved bid of M/s Adil international
an
4
a
l
so
specified the schedule of payment whici is accepted
t,
the bidder."
v
%
This bid was fr Rs. 22,00,00,000/- out of which rupees sevei crore was
promised to te deposited on the acceptance of the bid and th: remaining
amount wou3 be paid in annual installments of rupees thre crore per
annum for t»e first three years and the balance of rupees six crae would be
paid in the^th year. This order sheet, whereby the auction proeedings, as
stated abfve, were ordered, also contains at the end with regard to the
submission of application ia question by the appellant and after calling for
reply fo' the said application and also the application for staying of the
execut&n proceedings, 27.4.1995 was fixed for arguments on which late the
impujned order was passed.
3. The learned
Special Court
after examining the merits of th> case am relevant provisions of law; arrived at the conclusion that the application
tad been designed to unnecessarily delay the execution proceedings. The
ippellant was in perfect knowledge of the fact that the Mills and the asets
thereof were already mortgaged/hypothecated with the decree-holder and a
reference was made to para-5 of the affidavit annexed with the application
whereby the appellant had expressed its consent to create a
second charge
over the assets of the company/respondent No. 1 against the hypothecation
of stock etc. for providing of facility of Rs. 6,05,00,000/-. The other factor
which weighed with the learned Special Court was the conduct of the
applicant by holding that the application had been designed to prolong the
execution matter. It has been further observed in the impugned order that
the record also shows that the property of the judgment-debtor both
moveable and immovable was attached on 30.3.1994 and the advertisements
were ordered to be published for the sale of the property in the newspaper on 25.9.1994 after which another publication was also issued in various
leading newspapers of the country with a similar exercise for the third time
and the application was submitted on 24.4.1995, that is, after a period of
more than a year of the order of attachment The application was held by the
Court to be time barred, as the same was neither filed within a reasonable
time or within one year of the date of attachment in execution and no
explanation was offered for this unnecessary delay in submission of the
application.
4.
The winding up proceedings, as stated earlier, had already been
initiated by the appellant before the High Court of Sindh, Karachi and
during which proceedings the Hon'ble Judge has ordered that the
respondent-company was to be wound up
vide
his order dated 14.9.1995. As
the instant appeal was pending in this court so the appellant approached the
Sind High Court by submitting an application under section 316 of the
Companies Ordinance, 1984 seeking permission to proceed with the instant
appeal which application was accepted and the permission was granted,
vide
order dated 17.10.1995.
5.
The learned counsel for the respondent No. 3, i.e. Adil
International has raised two objections with regard to the lUJuntainability of
appeal;
(i) Limitation, i.e., that the appeal is time barred
qua
respondent No. 3; and
(ii) Incompetency of the appeal on twofold ground :
(a)
Non-service of notice under Order XLIII Rule 3 C.P.C.
(b)
In view of the provisions* of Section 12 of the
Ordinance.
6.
While stating the first objection regarding the limitation the
learned counsel has contended that respondent No. 3 is a necessaiy party
being an auction purchaser who has purchased the industiy through auction
and a p>art of payment in this respect has also been made and it has been
impleaded after the expiiy of the period of limitation.
7.
The first part of the second objection is regarding the
incompetency of appeal, it has been submitted that though an interlocutory
order has been challenged through an appeal under the provisions of C.P.C.
as the caption of the appeal indicates by mentioning Order XLIII Rule I (ii)
read with Section 15 of the Ordinance, 1980 (Code of Civil Procedure
Amendment Ordinance, 1980) and no notice as contemplated under Order
XLIII Rule 3 C.P.C. has been given to the respondent and it has rendered the appeal as incompetent.
8.
The other part of the second objection relates to the
maintainability of appeal, as stated above, in view of the provisions of Section
12 of the Ordinance. The learned counsel for the respondent has submitted
that the appeal is not maintainable as the order of the Special Court is under the Ordinance which has been challenged and the only provisions of the law for filing of the appeal is provided therein in the Ordinance which is Section
12 and if the appeal is not, and cannot be filed unde.r the provisions of
Section 12 of the Ordinance then an appeal under any oth^r provision of law is not competent.
9.
The learned counsel for the appellant was asked to meet the
preliminary objections of the respondent but instead of giving .reply firstly,
specifically, to the objections, he dilated upon the merits of the case by
stating that the same can betterly be answered after elaborating tbe facts of
the case and raising his contentions on that aspect of the case. His this
lengthy argument mainly on the facts of the case obliged this Court to record
the rival contentions of both the parties before giving finding on the
preliminary objections.
10.
The learned counsel for the appellant, in addition to his othfer
contentions to the effect:
(i) that the amount of Rs. 22,00,00,000/- for which the
company has been auctioned is a lesser one and it could
have been auctioned for Rs. 50,00,00,000/- if proper care and caution had been taken, and ;
(ii) that no detail of the company assets had been given in tha
auction notice and in the absence of which no proper offer
could have been made,
has laid much emphasis on the point that no investigation in the claim was
held by the Court as envisaged in Order XXI Rule 58 C.P.C. and without
carrying out any investigation the application was summarily dismissed
which, according to him, required an investigation and thus an illegality was
committed by the Court. Without regard to his contention (i) that the factory
and its assets could fetch much more higher price, than the one for which it
was auctioned, amounting to Rs. 50,00,00,000/-, the learned counsel for the
auction purchaser expressed their readiness to transfer the company and its
assets purchased by them through auction for the said amount to the
appellant but their this offer was not responded positively on behalf of the
appellant. In reply to the second contention it has been submitted on behalf
of the respondent that during the execution proceedings it was not for one
time that the publication was made for the auction of the company but it was several times and mainly on the ground that the offer used to be a lesser one
and not acceptable to the decree-holder. The contention with regard to the
details of the assets in tae auction notice, it has been submitted that, it is
also not maintainable as if a,look is made at the notice then in addition to the
brief resume given therein it had also been mentioned that the full detail
could be ascertained from the Additional Kegistrar of this Court It has been
further contended t^at these are objections pertaining to post attachment
proceedings and ncc pre-attachment proceeding whereby the requirement of
law is that it would be shown that the property was not liable to attachment
on the basis
offanafide
claim and invoking of provisions of Order 21 rule 58
CPC were not £>r curing the defects in post auction proceedings.
11. With regard to the main point of the appellant that is, the non-
holding of the investigation by the Court, it has been argued by respondents
counsel ti'at it would be proper that a reference be made to the relevant
provisions of law. According to Order 21 rule 58 CPC, the jurisdiction of the
Court is invoked by a person who is having a claim or interest in the
attached property and his assertion is that the property is not liable to such
attachment by reason of his claim or interest. According to Order 21 Rule 60
C.P.C. in case the claimant succeeds then the property so attached is
released wholly or partly on the ground that it is not liable to attachment on
the basis of the title, right or interest of the claimant. Normally such like
situations happen when a person has laid a claitti over the attached property
by contending that it is his property and not of the judgment-debtor or that
he is having a claim over the same on the basis of certain transactions or
undertaking prior to the establishment of the claim of the decree-holder. It
has been further argued that here in this case it is not the case of the
appellant that the property is not belonging to the judgment-debtor or that
the decree-holder is not having a claim over the said property but rather
appellant's plea is that because of the creation of the second charge over the
movable assets of the company the attachment of the whole of the property is not proper. The question is that the person who is having a claim on the
basis of a second charge without any denial to the first charge of the decree-
holder or that the property is not belonging to the judgment-debtor asserts
that the property is not liable to attachment on the ground of a second
charge. It has been submitted that the answer to the question would be in
the negative because when the claim of the decree-holder is admitted .and the
title of the judgment-debtor is also admitted then the natural consequence of
such admitted facts, hi ease of a decree, would be the attachment of the
property and no one would be allowed to have an objection to the attachment
of the property. The conclusion derived by the learned counsel for
respondent is, if one looks at the matter from this angle then it can definitely
be said, that the property is liable to attachment and if anybody is having
any claim at the most he could ask the court that any amqunt in excess of the decree should not be given or disbursed to the judgment-debtor but he
kept or be given to him, or the decretal amount be distributed
proportionately subject to agreement, if any, in case he proves his right to
the said amount etc.
12.
The learned court dismissed the petition mainly on the ground that it had been designedly or unnecessarily delayed and that the appellant
had not filed the application within reasonable time or within a period of one
year of attachment. It has been contended on behalf of respondents that it
was not only once that the advertisements were made in the newspaper but,
as stated earlier, the advertisements to this effect were made several times
and not in one newspaper but in several newspapers having a wide
circulation like "Dawn Karachi", "Muslim Islamabad", Mashriq Peshawar", "Nawa-e-Waqt" and "Jang Rawalpindi". It is the case of the appellant that it
got knowledge through a publication published in the Mashriq Newspaper
dated 15-4-1994 and still waited till a date when the auction was made on
24.4.1995 on which date the application was submitted in the court and the
sequence of the order reveals that it was submitted subsequent to the
auction and sale proceedings in the Court. Lastly it has been contended that
when it is the case of the appellant that it got the knowledge through a
publication in the newspaper then what the reasons were that through the
previous publication in the various newspapers for various times spreading
over months the same were not noticed by it.
13.
We refrain to give our findings on the above-mentioned
contentions of both the parties lest it may prejudice the parties in one way or
the other as the appeal has been decided on the ground of preliminary
objection i.e. maintainability of appeal in view of provisions of Section 12 of
the Ordinance on the reasons to be discussed hereinafter in para 24 and
onward.
14.
The objection with regard to the limitation is taken first The
impugned order was passed on 27-4-1995 and the appeal was filed on 3-5-
1995. The case was fixed for preliminary hearing at 8-5-1995 on which date a
pre-admission notice was given. The appeal was again fixed for hearing on
30-5-1995 on which date it was admitted to full hearing. The appellant submitted an application for impleadment of Aadil International in the
appeal as respondent on 30-5-1995 and an order to that effect was passed by
this Court on 15-6-1995 for the impleadment of Aadil International, the auction purchaser. An application beai-ing C.M. No. 99/95 was also
submitted on 14-6-1995 for the maintenance of status quo and restraining
the respondents and on which application the order was passed on the said
date, i.e., 15-6-1995 to the following effect:--
"Notice.
Meanwhile the respondents are directed that no sale
certificate shall be issued in favour of Aadil International."
M/s
Adamjee Paper and Board Mills was also impleaded in the appeal
vide
order dated 23-10-1995 of this Court.
15.
The period prescribed for filing an appeal under section 12 of the
Ordinance is 30 days while the period for filing an appeal under the Code of
Civil Procedure is three months under Article 156 of the Limitation Act.
According to the learned counsel for the respondent as the order of. The
Special Court Banking is under challenge, the appeal would be considered
under section 12 if otherwise competent, and has submitted that~the
application for impleadment of Aadil International was filed on 30-5-1995
and the order was passed on 15-6-1995 for its impleadment and both are
beyond the period of limitation of 30 days. Now it will be seen that a party
which ought to have been made as such was not made inadvertently or by
omission in due time, i.e., the period prescribed for filing of the appeal, then
the delay is condonable and if it is, then under what provision of law. In this
respect reference may be made to section 3 of the Ordinance and for the sake of convenience the same is reproduced as under :--
S. 3. Ordinance not to derogate from other laws The provisions of this Ordinance shall be in addition to and,
save as hereinafter expressly provided, not in derogation of
any other law for the time being in force.
This section has clearly made applicable all the relevant laws of a particular
aspect of subject of the case provided that has not been expressly excluded.
16.
The learned counsel for the respondents, supporting their this
contention, referred to Sections 3, 22 and 29 of the Limitation Act. According
to Section 3, when an appeal or suit has been instituted or preferred after
the period of limitation, shall be dismissed. According to Section 29, if any special or local law prescribed for any suit or appeal, a period of limitation
different from the period prescribed by the Limitation Act, the provisions of
section 3 shall apply. Section 22 alongwith other sections has been made
applicable to cases under special law. According to Section 22, if a party is
added to the suit which has already been instituted, then as regards the
newly added party the suit shall be deemed to have been instituted when it
was
so
made a party. Here in this case, it is not the suit but the appeal to
which respondent No. 3 was added at the instance of the appellant after the
A
period of limitation and Section 22 is not applicable to the appeals. In this
respect & reference may be made to a judgment of a Division Bench of the
Lahore High Court reported as
Syed Rahat Hussain Zaidi vs. Settlement Commissioner
(1988 MLD 113) and while dealing with the question that
Section 22 is applicable to the appeals or not it was observed as follows :--
"Now from the language used herein the counting of time
limit is there but it is applicable only to the suits and there is no parallel provision as to appeals within the Limitation Act
or to say that a plaintiff and a defendant shall include an
appellant and respondent respectively, so the appellate
Court has the discretion to substitute or add an appellant or respondent after the period of limitation prescribed for an
appeal."
Reliance was also placed in above referred case on a judgment of the
Court of Wards on behalf of the
Raja of Kanti vs. Gaya Parsad and others
• (ILR Allahabad Series Vol. II (1879) wherein it was held :--
"The first question arising in this appeal is whether or not
the appeal so far as it affects Ram Manorath is barred by
limitation.-By some carelessness he was not at first made a
respondent and the period prescribed for appeal had expired
before he has brought on the record as a respondent. By
22nd section of the Limitation Act it is provided that when after the institution of a suit a new plaintiff or defendant is
substituted or added, the suit shall as regards him will be
taken to have been instituted when he was so made a party.
There is no analogous provision with respect to appeals, and
therefore, it is competent-to the Court to exercise its
discretion in allowing a party to be added to the record after
the period prescribed for the admission of an appeal has
elapsed
....................... "
17. Furthermore Order 41 rule 20 of the Civil Procedure Code empowers an appellate Court to direct that a person who is ought to be a party in appeal to be made
a
respondent. In ,a judgment reported in Said
Muhammad and others vs. M. Sardar and others
(PLD 1989 SC 532), while
dealing with the question with regard to the impleadment of a person during
the pendency of appeal under Order 41 rule 20 and while interpreting the words "interested party" which finds its mention in the above mentioned rule, it was held that if a person is not a party to the appeal, then holding
him that it is not an interested party is not inviolable rule and while making
reference to certain judgments of the Privy Council it was observed :--•
"It did not foreclose the exercise of discretion to be exercised
in the circumstances of the case and that this carried with it
the power to condone the delay."
While making reference to another judgment, it was observed :--
"the language of Rule 20 of Order JCLI does not show that it
is exclusive or exhaustive so as to deprive a Court of any
inherent power which it may possess and can exercise in
special circumstances, and which has been saved by section
151 C.P.C."
18.
While again referring to another judgment of the Indian
jurisdiction
Jalal Din vs. Karim Bakhsh
(AIR 1930 Lahore 295), it was held
as under :--
"If by omission the name of a party is left out due to
oversight, the proper course for the appellate Court is to
exercise its powers under Order XLI rule 20 and implead the party so omitted in appeal."
In the case (PLD 1989 Supreme Court 532) supra the non-
impleadment of a person as party in the case was held as an inadvertent
error and while remanding the case back to the appellate Court it was
directed to implead him as a respondent in the appeal and to dispose it of in
accordance with law.
19.
Order I rule 10 of the C.P.C. which empowers a Court to add
any person as a party who ought to have been joined or whose presence
before the Court is necessary in order to enable'the Court to adjudicate
effectually and completely upon all the questions involved in the suit.
According to section 107 C.P.C. the appellate Court shall have the same
powers and to perform the same duties as are conferred and imposed by the C.P.C. on courts of original jurisdiction in respect of suits. By reading these
provisions together, then the appellate Court can add a party to appeal if
necessaiy. In the case referred to above as 1988 MLD 113, it was held that this rule when read with section 107 CPC is applicable also to an appeal. It
was observed :--
"In the present case it is true that the right of the co-
appellants to appeal therefrom the judgment, has become
time barred by 65 days when they were added as co-
appellants to this appeal but this will not have its impact
upon their position when so added so as to say that the
appeal regarding them will be treated to have been filed
when they are added as parties as in the suits."
In this context a reference was made to Section 22 of the Limitation
Act that-the provisions of which are not applicable to appeals.
20.
The court even otherwise, has got sufficient powers under
section 151 CPC to add any party to the appeal and in this respect a
reference can be made to a judgment reported as
Shanti Lai and others vs
Firm Hira Lai Sheo Narain
(A.I.R. 1941 Lahore 402) wherein it has been
held:--
"Apart from 0.41, R. 20 the Court has ample power under S.
151, Civil P.C. to add a party to the appeal even after the
expiiy of the period of limitation prescribed for appeals, if in
the circumstances of the particular case before it, it thinks fit
to do so."
21.
The result of the above discussion would be that though
respondent No. 3, Aadil International has been impleaded when the period
of limitation has run out for filing the appeal but that would be of no
consequence in view of its subsequent impleadment in the appeal.
22.
The non-compliance of Order XLIII rule 3 of the CPC by not
giving a notice for filing of appeal to the respondent, in the instant case,
would be of no consequence. Both the parties have relied upon the judgment reported as
Mrs. Dina Maneji Chinoy vs. Muhammad Matin
(PLD 1983 S.C.
693) wherein it was held that notice under Order XLVIII rule 3 CPC is a
mandatoiy one and no appeal can be entertained without issuance of the
requisite notice and this part of the judgment as relied upon by respondent No. 3. In this judgment it was also held that when all the objects for which
the above mentioned provision inserted were
satisfied
in
substance
then it
should not stand in the way of the appellant to make his appeal liable to
dismissal by observing that a party could not be allowed to be defeated for
failure to comply with the form where the substance had, in fact, been
complied with. A pre-admission notice has been given in the appeal and now
it has been admitted that an opportunity has been afforded to the
respondents to present their case and it is not their case that any document
to which reference is being made during the hearing of the appeal has not
been supplied to him or that he is otherwise taken by surprise. The relevant'
portion of the judgment gives a complete answer to the
contention/objections of both the parties which is reproduced herein below :-
"18. The above portion highlights the fundamental
importance of issuance of the notice to the respondent by the appellant before presentation of the appeal. Not only does he
become aware of the fact that an interlocutory order issued
in his favour has been challenged by an appeal but a right
has been conferred on him to contest the appeal at the
limine
stage with the permission of the Court, with a view to
getting the appeal dismissed at that very stage and, thus,
bring to a close the litigation directed against an order
passed
pendente lite
favourable to him. This would not to possible unless notice before presentation of the appeal was
given to the respondent, the said valuable right conferred
upon him would be last and resultantly the provisions of sub-rule (2) of Rule 3 would be rendered futile, inutile and
nugatoiy. Hence we think that issuance of a notice to the
respondent before presentation of an appeal preferred
against an order passed during the pendency of a suit is
' • obligatory and no appeal can be entertained without '
issuance of the requisite notice. It would, therefore, be
entirely appropriate, with a view to ensuring that the
provisions of this beneficial rule are given effect to in letter
and spirit that the officers responsible for
inter alia
receiving
and scrutinising appeals preferred against the interlocutory orders made during the pendency of a suit of all the Courts
concerned, do require the appellant or his advocate to
submit, alongwith the other documents required for filing
an appeal, an affidavit that he has given notice of such
appeal to the respondent or his advocate by delivering him a copy of the memorandum and grounds of appeal alongwith
the copy of the order appealed against and shall also attach
with the said affidavit a copy of the acknowledgement receipt
obtained from the respondent or his advocate, as the case
may be. Any appeal, which is not accompanied by such an
affidavit and a copy of the acknowledgement receipt should
not be entertained.
19.
In the instant case, we observe that the learned Division
Bench had issued a pre-admission notice to advocate of the
respondents (the petitioner herein) and their advocate Mr.
Akhtar Mahmood was present on pre-admission notice.
Thus, he could contest the admission of the appeal and seek
its dismissal
in Hmine.
No rievance, furthermore, was made
by him to the effect that any document to which reference
was being made during the hearing of the appeal has not
been supplied to him or that he was otherwise taken by
surprise. Thus, in this case all the objects for which rule 3
was inserted in Order XLIII of the CPC were satisfied in
substance. Since the proper place of procedure is to help and not to thwart the obtaining of justice and procedural laws, as
pointed out by Mr. Sharifuddin Pcerzada, should be utilized as "stepping stones" rather than we might add, as stumbling
block; the right of a party in this case to have his appeal
heard, cannot be allowed to be defeated for failure to comply
with the form where the substance has, in fact, been
complied with. See
Imtaiz Ahmad vs. Ghulam AH and others
(1) and
Manager, J & K State property in Pakistan vs
Khudayar
(2).
20.
On this view of the matter, we would uphold the
decision of the learned Judges of the Division Bench to reject
the preliminary objection and in finding that the appeal
preferred before them by the respondent herein was liable to
be disposed of on merits."
This objection of the respondents, in view of discussion
above, is also over-ruled.
23.
If the appeal is found maintainable in view of the provisions of
Section 12 of the Ordinance then these two objections would not stand in
way of the appellant and which (maintainability u/s 12) will be seen
hereinafter.
24.
The last but'no least objection of the respondent is in respect o!' j the maintainability of the appeal on the ground of the provision of section li! J
of the Ordinance. The opening sheet as well as the caption of the appeal indicate that the appeal was intended by the appellant to have been fileJ under Order 43 rule (1) (ii) CPC read with section 15 of Ordinance X of
1980. The admitted position is that though the proceedings were pending
before a Judge of the High Court but he was not acting as a Judge of the
High Court but he was acting as a Judge of the Special Court established
under the Ordinance. Right of appeal has been given to an aggrieved party
against a judgment and decree or order of the Special Court to be filed in the
High Court which shall be heard by a Bench of not less than two Judges.
This section is having a proviso whereby filing of an appeal from an
interlocutory order which does not dispose of the entire case has been
debarred. Section 11 gives finality to the orders of the Special Court by dis
allowing any challenge to it before any Court or other authority except in
accordance with the provision of appeal under section 12. By reading sections
3, 11 and 12 it is manifest that if any person is feeling aggrieved of an order of a Special Court he can file an appeal only under section 12 and not under
any other provision of law as Section 3 precludes the applicability of any other provision of law which has been provided for in the Ordinance and
section 12 with regard to the filing of appeal provides the relevant forum and
the grounds upon which an appeal will have to be filed, with a complete bar
with regard to filing of an appeal against an interlocutory order. Section 11
also excludes the challenge to an order of the Special Court before any forum
or authority except provided in Section 12 of the Ordinance. Moreover, the
Ordinance is a special statute which would exclude the application of any
other law which comes in conflict with its (Ordinance) provisions and as it
has been seen above, section 3 of the Ordinance gave an over riding effect to
the provisions of the Ordinance,
25.
The question is that whether any such appeal against the order
of a Special Court would be competent under any other provision of law
except section 12 of the Ordinance, as has been filed in the instant case
under Order 43 rule 1 (ii) C.P.C. Section 12 on one hand gives a right to a
person against whom a decree or order has been passed to file an appeal in the High Court yet at the same time it makes certain provision debarring a
person against whom interlocutory order, which does not dispose of the
entire case, has been passed to file an appeal. For this purpose a reference will have to be made to the Constitution of the Special Court and also the
High Court while acting as the appellate Court under the Ordinance.
According to section 2(f) (ii) of the Ordinance, the High Court while tiying a
suit under the Ordinance would be a Special Court and will act in the
exercise of its civil original jurisdiction. Then for the purpose of Section 12 of
the Ordinance it will be also treated as a Special Court.
26. In a case reported as PLD 1987 Karachi 501 while commenting
upon the provision of Section 12 of the Ordinance and the filing of an appeal
"A perusal of the above caption of the appeal indicates that
the appellant has also referred to Section 12 of the
Ordinance. In our view since the application was decided by
the Je<ss-/?ed SJ^gJe Jxdg& tvhJJe dexJJxg- HvtJ? g jutt ftied
under the provisions of the Ordinance the right of appeal, if
any, is to be pressed into service in terms of the provisions of
the Ordinance and not from any general law on the subject.
Proviso to subsection (1) of section 12 of the Ordinance bars
an appeal from an interlocutory order which does not
dispose of the entire case before the
Special Court
."
27.
The appellant by filing appeal against the order of
Special Court
under other provisions of Section 15 of Ordinance X of 1980 and Order 41
rule l(ii) itself treating the order as interlocutory otherwise would have filed appeal under section 12 of the Ordinance. However, this by itself would not
non-suit the appellant or debar the Court to treat the appeal under relevant
provision of law instead of having been mentioned in the memorandum of appeal if otherwise competent. The case pending before the court is in the
nature of execution proceedings and which have not been finalized as
according to the parties sale has taken place in favour of respondent No. 3
and according to whom the possession has been delivered but admittedly the
sale certificate as required under Order 21 rule 94 has not been issued.
Moreover, it is the attachment/auction which have been challenged after which certain steps are required to be taken i.e., the confirmation of sale
under Order 21 rule 92 and issuance of sale certificate as stated above. Thus
the order has not disposed of the
entire
case, i.e. the entire execution
proceedings but still pending and order of stay dated 15-6-1995 has been
obtained from the Court during the pendency of the appeal that the sale
certificate not be issued, (order reproduced in para 14 supra).
28.
In view of the bar contained in Section 12(1) of the Ordinance,
the appeal against an interlocutory order was held to be barred and would
not be competent under any other provision of law as stated earlier. Though
the appeal is a substantive right but the forum to which the appeal lies as a
matter of procedural law and which is provided by the enactment itself and
which in the instant case has been provided under section 12 of the
Ordinance.
29.
Such points have been dealt with by the august Supreme Court
in a number of cases which have been decided through a single judgment as
reported in
Pakistan Fisheries Ltd., Karachi and others
us.
United Bank
Limited
(PLD 1993 Supreme Court 109). In all those cases the
appellants/customers applied for grant of appeal to defend the suit and a
learned Single Judge of the High Court, acting as Special Court, by means of
different orders granted conditional leave of the suit subject to furnishing of
the security in each case. The appellants' claim was that they were entitled
to unconditional leave to defend the suits and thus aggrieved of imposition of
the condition as to the furnishing of security, they challenged the leave
granting orders through appeal under section 15 of Ordinance 10 of 1980.
While interpreting the word 'case' used in the proviso of Section 12(1) of the
Ordinance in the context as under :--
"interlocutory order which does not dispose of the entire case
before the
Special Court
."
and after discussing the contention raised by the learned counsel for the appellant and also by making a reference of the word 'case' used in other section of the Ordinance with a particular reference to Section 13, it was
concluded as follows :-
"We have no doubt that the word 'case' appearing in this
clause signifies 'suit' and not some controvertial matter
arising out of or forming part of the suit."
It was further observed :—
"As a result of this analysis we are firmly of the view that the
word 'case' has been used in the proviso in the sense of a
suit
and not to convey the meanings canvassed by the
learned counsel on the analogy of section 115 C.P.C."
The other question before the august Supreme Court was also the very
nature of the jurisdiction and status of the High Court while acting as a
Special Court and the competency of the appeal under section 15 of the Ordinance 10 of 1980 in this respect findings of the Hon'ble Supreme Court
were as under :--
"So far as Section 12 is concerned, there is nothing therein to
construe the High Court as different from the Special Court
defined in Section 2(f) of the Ordinance."
It was further observed :--
"It seems to us that by expression "original civil jurisdiction"
as used in the Ordinance is meant the trial of the suit on the original side of the High Court. The term has not been used
in the technical sense as understood with reference to the Letters Patent of some High Court Sub-Continent, but has
been employed in centra-distinction to the appellate and
revisional jurisdiction exercised by the High Court. The
jurisdiction conferred on the High Court under the
Ordinance is special jurisdiction and while exercising such
jurisdiction the High Court bears fictional character of a
Special Court as defined in the Ordinance."and at the end it was concluded to the following effect :--
"Combined effect of these provisions is that the judgment
and order passed by a Special Court cannot be assailed
before any forum except in accordance with the provisions of
Section 12."
In the said judgment the object of the Ordinance was also held to be to
secure expeditious disposal of the cases by the Special Court. The challenge
to the interlocutory order was disapproved and ultimately the appeals filed
before the Supreme Court were dismissed, upholding the judgment and
order of the High Court whereby the appeals filed by the appellants were
held as incompetent.
30. Another aspect of the case is also considered that if the appeal is
not competent then whether the same can be treated as revision. This point
came up for consideration in cases reported as
Azhar liussain vs. Chartered
Bank Ltd.
Faisalabad
and 17 others
(PLJ 19S1
Lahore
5S3)
Muhammad Ayub Butt vs. Allied Bank Ltd.
Peshawar
and others
(PLJ 1981 Supreme
Court 795). The question involved in the cases was whether a revision
petition preferred against an interlocutory order of a Special Court was
competent or not wherein it was held after making a reference to Section 3 of
the C.P.C. that the Special Court under the Ordinance was not a subordinate
to the High Court and the revision petition was held to be incompetent.
Section 3 of the C.P.C. is reproduced with advantage :--
"3.
Subordination of Courts :--
For the purposes of this Code, the District Court is
subordinate to the High Court and every civil Court of a
grade inferior to that of a District Court and eveiy Court of Small Causes is subordinate to the High Court and District
Court."
The relevant portion of the judgment of the Supreme Court is reproduced
below :--
"No amendment has been made in section 3 of the Code of
Civil Procedure so as to declare a Special Court also as a
Court Subordinate to the High Court nor is there any
' provision in the Ordinance to the effect that a Special Court
shall be deemed to be a Court subordinate to the High Court
for the purposes of Section 115 of the Code of Civil
Procedure."
Reliance was placed on
Wqjahat Mi Hasni vs. Mst. Ghazala
(PLD 1970
Lahore 641).
According to Section 4 of the Code of Civil Procedure, an over-riding
effect has also been given to any provision of special statute over the
provision of the Civil Procedure Code and it reads :--
"4.
Savings.--(l)
In the absence of any specific provision to
the contrary, nothing in this Code shall be deemed to limit
or otherwise affect any special or local law now in force or any special jurisdiction or power conferred, or any special form of procedure prescribed, by or under any other law for
the time being in force."
31.
In this respect some observations with regard to Section 4 of the
Civil Procedure Code and sections 11 and 12 of the Ordinance have also been
recorded in the above-referred cases of Supreme Court which are to the
following effect :--
"Undoubtedly, a Special Court is a Court of special
jurisdiction and sections 11 and 12 of the Ordinance
preclude the High Court from exercising its rcvisional
jurisdiction
qua
the orders of the Special Court. It would,
therefore, follow that in view of the provisions of sections 11
and 12 of the said Ordinance read with section 4 of the Code of Civil Procedure the orders of the Special Court cannot be assailed before the High Court in revision by resorting of the provisions of section 115, C.P.C., i.e., revision is also not
maintainable."
32.
In view of the matter the appeal, apart from section 15 of
Ordinance X of 1980, is also not competent under Order 43, rule l(ii), C.P.C.
The conclusion would be that the appeal has been filed against an
interlocutory order of the Special Court would not be competent under section 12 of the Ordinance and no appeal can be filed under any other
provisions of law.
33.
Though some references have been made in para supra of
this judgment to certain provisions of the Civil Procedure Code for example
e.g., Order 21 rules 60 and 90 but as under section 6 of the Ordinance the
power of execution has been given to the Special Court and the application of
those provisions have not been ousted by Section 3 of the Ordinance like
Section 12.
34.
-Consequently, we hold that the appeal being incompetent, not
maintainable is, therefore, dismissed with no order as to costs.
(B.T.)
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