2003 PLP 990 (CLD)

MUHAMMAD NAWAZ ABBASI, J.

The land measuring 4 Kanals and 2 Marlas situated in Industrial Estate, Kot Lukhpat, Lahore, known as Masco Enterprises, subject-matter .of the execution of decree passed by the Banking Court, was put to auction in the execution petition filed by Pakistan Industrial Leasing Corporation Limited. In the auction held on 25-11-1996, the present petitioner having offered the highest bid to the tune of Rs.16 lacs was ready to pay the auction money but the Court auctioneer in his report dated 27-11-1996 submitted that the bid was below the decretal amount. The Banking Tribunal without setting aside the auction issued fresh schedule of auction to be held on 1-2-1997 which could not be materialized. Two separate execution petitions were filed by the Pak Leasing Corporation Limited and Habib Bank Limited for execution of decrees passed by the Banking Court in their favour against the same property and while these execution petitions were pending, the Banking Tribunals were abolished and the cases pending before these Tribunals were transferred to the Banking Courts. The petitioner moved an application to the Banking Court seized of the matter for acceptance of bid offered by him and the Banking Court, vide order dated 30-10-1997, having approved the bid offered by the petitioner confirmed the sale in his favour. This order of confirmation of sale was challenged by the respondents through F.A.O. No.272 of 1997 under section 21 of Banking Companies (Recovery of Loans, Advances, Credits and Finances). Act, 1997 before the High Court but the same was dismissed by a Division Bench of Lahore High Court vide judgment dated 20-10-1998 being not maintainable. The respondents thereafter invoked the Constitutional jurisdiction of the High Court by filing the separate writ petitions which were heard by a learned Single Judge of the Lahore High Court, Lahore, and were allowed vide judgment under challenge. Learned counsel for the petitioner has contended that without setting aside the auction held on 25-11-1996 in which the petitioner offered the highest bid of Rs.16 lacs, the issuance of fresh schedule by the Banking Tribunal for fresh auction, was not legal and that notwithstanding the pendency of two other execution petitions, the confirmation of sale in favour of the petitioner on the basis of auction held on 25-11-1996 by the Banking Court was not questionable. Learned counsel for the respondents, on the other hand contended that the issuance of schedule for fresh auction would amount to setting aside the earlier auction and therefore, the Banking. Court was not competent to confirm the sale in favour of the petitioner. The petitioner has sought leave to appeal against the judgment passed by the High Court through these petitions under Article 184(3) of the Constitution of Islamic Republic of Pakistan, 1973, on the questions whether without setting aside the earlier auction, the Banking Tribunal could competently issue fresh schedule of auction and whether the confirmation of sale in favour of the petitioner, as a result of auction held on 25-11-1996 was legal and valid and the High Court in exercise of its Constitutional jurisdiction was justified to set aside the sale and interfere in the matter, need determination. We accordingly grant leave to appeal in the above petitions. M.H./A-277/S Leave granted.