1968 SCMR 453 (PLP)

CORNELIUS, C. J.--This proceeding arises in respect of stops taken under the West Pakistan Co-operative Societies and Co operative Banks (Repayment of Loans) Ordinance, 1966, for recovery of a time-barred loan from the petitioners Abdul Aziz and, his son Aftab Aziz. The High Court has summarily dismissed a writ petition, challenging action taken by the local Co-operative authorities, which however, was under revision before the Provincial Government, where an order had been passed as under:- " ..pending finalization of the Review (sic) application the auction of the factory belonging to the petitioners fixed for the 5th instant should be stayed, provided the applicants comply with the following conditions:- (1) that they deposit at least 15 % of what they admit as the loan owed by them subject to deposit of 15 % of the determined amount, within a month, i.e., by 2-10-67 ; (2) that they pay the cost of advertisement, etc., for the auction." On the 3rd October 1967, a Division Bench of the High Court stayed auction of the factory, pending disposal of the writ petition, by an order, in which they noted that a "major question involved ...... is whether or not (a Co-operative authority) has finally determined the liability of the petitioners." On the 19th January 1968, the writ petition was summarily dismissed, as the learned Judges could "see no reason why the petitioners have not paid 15 % of the loan as required under section 7(b) of the Ordinance," and also because the 'appeal' to the Government bad since been decided, thus giving the petitioners a fresh cause of action. Leave is sought to appeal against this order. No copy of the order of the Government is provided with this petition. It may be presumed it was an order of dismissal, and further that the question posed in the High Court's order of the 3rd October 1967, still remains undecided. There seems no doubt that a very large sum of money is owed by the petitioners to the Co-operative Bank in question, and the effect of these proceedings is to introduce further and prolonged delay in the repayment of this loan. There may be a question of law to b considered, viz., whether recovery can proceed before the amoun recoverable has been determined by the Co-operative authorities. We are not impressed by the suggestion that the petitioners should themselves calculate the sum they owe, upon which recovery wil then proceed. It is doubtful whether the Ordinance is intended to be implemented in that manner. However, it is in our opinion necessary that the petitioners should not be assisted to delay commencement of repayment, under the cover of these proceedings. Mr. Shaik Haider on their behalf states that the petitioners have no intention of withholding payments such as may be due from them under the law. We accordingly make the following interim order, viz:-- (1) the Deputy Registrar, Co-operative Societies, Hyderabad Region, Hyderabad shall furnish within a month a statement of the amount which he is able to ascertain from the documents of the Bank as being due from the petitioners, prima facie ; and (2) within a month thereafter, the petitioner shall deposit 15% of the amount so ascertained as a condition of their being allowed to proceed further with this petition. The determination under item (1) shall not be deemed to be a i final determination within the meaning of the Ordinance. Pending implementation of this order, the auction of the factory will remain stayed. The petition will be next heard at Lahore, on the 20th March when the Deputy Registrar's report should be placed before the Court. Order accordingly.