2014 PLP 856 (SCMR)
Messrs UNITED BANK LTD. — Petitioner Versus FEDERATION OF PAKISTAN and others — Respondents
| Citation | 2014 PLP 856 (SCMR) |
| Forum / Court | Supreme Court of Pakistan |
| Bench Members | Nasir-ul-Mulk, Ijaz Ahmed Chaudhry and Muhammad Ather Saeed, JJ |
| Parties | Messrs UNITED BANK LTD. — Petitioner Versus FEDERATION OF PAKISTAN and others — Respondents |
| Primary Law | (b) Exit from Pakistan (Control) Ordinance (XLVI of 1981), (a) Exit from Pakistan (Control) Ordinance (XLVI of 1981) |
Q1: What are the key laws and sections cited in 2014 PLP 856 (SCMR)?
This judgment primarily cites: (b) Exit from Pakistan (Control) Ordinance (XLVI of 1981), (a) Exit from Pakistan (Control) Ordinance (XLVI of 1981) as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 2014 PLP 856 (SCMR)?
The case was heard and decided by the Supreme Court of Pakistan bench comprising: Nasir-ul-Mulk, Ijaz Ahmed Chaudhry and Muhammad Ather Saeed, JJ.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 2014 PLP 856 (SCMR) (Messrs UNITED BANK LTD. — Petitioner Versus FEDERATION OF PAKISTAN and others — Respondents). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Representation
- Asim Mansoor Khan, Advocate Supreme Court for Petitioner.
- M. Aleem Abbasi, D.A.-G. for Respondent No.1.
- Raja Abdul Ghafoor, Advocate-on-Record for Respondent No.2.
- Shahid Ikram Siddiqui, Advocate Supreme Court for Respondent No.3.
- Date of hearing: 24th April, 2013.
- 3. We have heard Mr. Asim Mansoor Khan, learned Advocate Supreme Court for the petitioner Mr. Shahid Ikram Siddiqui, learned Advocate Supreme Court for respondent No.3, Mr. M. Aleem Abbasi, learned DAG for the Federation and Raja Abdul Ghafoor, learned Advocate-on-Record for State Bank of Pakistan.
- 4. Mr. Asim Mansoor Khan, the learned Advocate Supreme Court for the petitioner submitted that respondent is a defaulter to the tune of Rs. 171.863 million of the petitioner bank and the suit for the recovery of the above amount has been filed against him. He submitted that government of Pakistan has issued a notification describing the criteria for placement of a person on the Exit Control List and sub-para v of para 1(a) of this document includes 2-3 key/main directors of firms having more than Rs.100 millions loan default/liabilities for placement on exit control list and therefore, the petitioner/bank vide its letter dated 15-1-2008, had initiated the proceedings by approaching the Ministry of Interior through the State Bank of Pakistan for placement of the name of the respondent No.3 on the exit control list. The learned counsel, however, conceded that no appropriate order has been passed by the Banking Court regarding the liability of the respondent No.3 and the matter is still pending so much so that leave to defend application filed by the respondent No.3 has not yet been disposed off. In reply to a query of the Court he conceded that at the time of loan agreement petitioner/bank had safeguarded the loan by acquiring necessary securities and by mortgage of the property of respondents-company and the directors. His only explanation was that the respondent may escape out of Pakistan to avoid payment of the liability but he could not explain as to how the bank's position can be compromised by his absence. He, however, prayed that the order of the Ministry of Interior placing the name of the respondent No.3 on the Exit Control List having been made on the basis of prescribed criteria and having wrongfully been quashed by the learned Lahore High Court may be restored and the impugned judgment be set aside.
- 6. The learned counsel for respondent No.3 drew our attention to Memorandum by which the name of the respondent No.3 has been placed on the exit control list and submitted that no reasons have been given for placing the name of the respondent on the exit control list. He argued that the Ministry of Interior had not applied its mind and blindly accepted the recommendation of the State Bank .of Pakistan for placing the name of the respondent No.3 on the exit control list. He further submitted that the learned High Court has given detailed reasons for accepting the petition and holding the placing of the name of respondent No.3 on the exit control list as without lawful authority. He supported the impugned judgment and prayed that the petition being merit-less may be dismissed.
Headnotes / Summary
(On appeal from the judgment dated 22-3-2010 of the Lahore High Court, Lahore passed in W.P. No.21020 of 2009)
S. 2
Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001), S. 9(1)
General Clauses Act (X of 1897), S. 24A
Constitution of Pakistan, Art.185(3)
Placing name of Director of a company on Exit Control List during pendency of recovery suit against company before the Banking Court
Scope
Respondent was Director of a private company against which an alleged default in repayment of loan had been claimed by the Bank by filing a recovery suit
Recovery suit was pending adjudication, when Bank in question requested State Bank of Pakistan for placing name of Director on the Exit Control List
State Bank of Pakistan forwarded the matter to the Ministry of Interior, which vide a memorandum placed name of Director on the Exit Control List
Director filed constitutional petition before the High Court which was allowed and it was held that placing name of Director on Exit Control List was without lawful authority
No appropriate order had been passed by the Banking Court regarding liability of Director and the matter was still pending so much so that leave to defend application filed by Director had not been disposed of
Bank at the time of loan agreement in question, had safeguarded the loan by acquiring necessary securities and by mortgaging property of private company and its Directors
No explanation was given by the bank as to how its position would be compromised by absence of Director if he escaped away
Ministry of Interior placed name of Director on Exit Control List in a mechanical manner without applying its mind and without giving any reason for such decision
Order passed by Ministry of Interior was a bald order hit by S. 24A of General Clauses Act, 1897 and could not be sustained
High Court had rightly held that if Bank wanted an interim order, it should have approached the Banking Court, where the recovery suit was pending as said court could pass any appropriate order
Order passed by High Court was unexceptionable and did not warrant any interference
Petition for leave to appeal was dismissed in circumstances and leave was refused.
S. 2
Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001), S. 9(1)
Constitution of Pakistan, Art. 15
Placing name of Director of a company on Exit Control List during pendency of recovery suit against company before the Banking Court
When claim by a commercial Bank against Director of a company was yet to be adjudicated, such claim could not be a ground to place the name of Director on the Exit Control List to deprive him from his fundamental right of travel abroad or restrict his right of free movement
Illustration.
Judgment & Decree
MUHAMMAD ATHER SAEED, J.
This civil petition for leave to appeal has been filed against the judgment of the Lahore High Court, Lahore dated 22-3-2010 in Writ Petition No 21020 of 2009 whereby the learned High Court had accepted the writ petition filed by respondent No.3 and held the placing of the name of the respondent No.3 on the exit control list as without lawful authority.
2. Brief facts of the case are that respondent No.3 is a director of Angora Textile Limited against which an alleged default of Rs.171.863 million has been claimed by the present petitioner by filing suit before Banking Court for the recovery of the said amount but so far the same has not been adjudicated upon. The present petitioner vide letter of its President dated 15-1-2008 addressed to the State Bank of Pakistan requested the State Bank for placing the name of the respondent No.3 on the exit control list of the Pakistan. The State Bank of Pakistan forwarded the same to the Ministry of Interior. Vide memo No.12/105/2008 ECL dated 15-7-2008 Ministry of Interior placed the name of the respondent No.3 on the exit control list. Writ Petition was filed against the above memo of the Ministry of Interior through Writ Petition No.6105 of 2008 which was disposed of by the learned Lahore High Court by directing the petitioner to approach the Ministry of Interior and the Ministry of Interior to consider his arguments and get it decided by the competent authority. However, despite exchange of communication between the petitioner and the Ministry of Interior and the other stake holders no decision was given by the competent authority and therefore the respondent filed a fresh petition before the learned Lahore High Court which was disposed of by the impugned judgment. Hence this petition for leave to appeal.
3. We have heard Mr. Asim Mansoor Khan, learned Advocate Supreme Court for the petitioner Mr. Shahid Ikram Siddiqui, learned Advocate Supreme Court for respondent No.3, Mr. M. Aleem Abbasi, learned DAG for the Federation and Raja Abdul Ghafoor, learned Advocate-on-Record for State Bank of Pakistan.
4. Mr. Asim Mansoor Khan, the learned Advocate Supreme Court for the petitioner submitted that respondent is a defaulter to the tune of Rs. 171.863 million of the petitioner bank and the suit for the recovery of the above amount has been filed against him. He submitted that government of Pakistan has issued a notification describing the criteria for placement of a person on the Exit Control List and sub-para v of para 1(a) of this document includes 2-3 key/main directors of firms having more than Rs.100 millions loan default/liabilities for placement on exit control list and therefore, the petitioner/bank vide its letter dated 15-1-2008, had initiated the proceedings by approaching the Ministry of Interior through the State Bank of Pakistan for placement of the name of the respondent No.3 on the exit control list. The learned counsel, however, conceded that no appropriate order has been passed by the Banking Court regarding the liability of the respondent No.3 and the matter is still pending so much so that leave to defend application filed by the respondent No.3 has not yet been disposed off. In reply to a query of the Court he conceded that at the time of loan agreement petitioner/bank had safeguarded the loan by acquiring necessary securities and by mortgage of the property of respondents-company and the directors. His only explanation was that the respondent may escape out of Pakistan to avoid payment of the liability but he could not explain as to how the bank's position can be compromised by his absence. He, however, prayed that the order of the Ministry of Interior placing the name of the respondent No.3 on the Exit Control List having been made on the basis of prescribed criteria and having wrongfully been quashed by the learned Lahore High Court may be restored and the impugned judgment be set aside.
5. The learned DAG and the learned counsel for the State Bank of Pakistan adopted the arguments of the learned counsel of the petitioner.
6. The learned counsel for respondent No.3 drew our attention to Memorandum by which the name of the respondent No.3 has been placed on the exit control list and submitted that no reasons have been given for placing the name of the respondent on the exit control list. He argued that the Ministry of Interior had not applied its mind and blindly accepted the recommendation of the State Bank .of Pakistan for placing the name of the respondent No.3 on the exit control list. He further submitted that the learned High Court has given detailed reasons for accepting the petition and holding the placing of the name of respondent No.3 on the exit control list as without lawful authority. He supported the impugned judgment and prayed that the petition being merit-less may be dismissed.
7. We have examined the case in the light of the arguments of the learned counsel and have perused the records of the case including impugned judgment, the memorandum placing the name of respondent No.3 on the exit control list and other documents.
8. On perusal of the memorandum, we have reached the conclusion that the order has been passed in a mechanical manner by the Ministry of Interior without applying its mind and without giving any reason for such decision. This is a bald order and is hit by section 24A of the General Clauses Act, 1897 and cannot be sustained. Perusal of the impugned judgment reveals that the learned Lahore High Court has noted not only this point but has also observed that the claim against the respondent No.3 by a commercial bank is yet to be adjudicated and this cannot be a ground to place the name of the respondent No.3 on the exit control list to deprive him from his fundamental right of travel aboard or restrict his right of free movement. The learned High Court also held that if present petitioner wants any interim order, it should have approached the Court where the suit was pending as that court can pass any appropriate order and it is an admitted fact that no such application has been moved before the Banking Court. In the light of the above observations, the learned High Court passed the impugned judgment. We are of the considered opinion that the observations of the learned High Court and conclusion reached by it are unexceptionable and no interference is called from this Court. We, therefore, dismiss this petition and refuse to grant leave. MWA/U-1/SC Petition dismissed.