1988 PLP 1604 (CLC)
HABIB BANK Ltd.‑‑Decree‑Holder Versus Messrs KOHINOOR COTTON MILLS Ltd. and 4 others‑‑Judgment‑Debtors
| Citation | 1988 PLP 1604 (CLC) |
| Forum / Court | Lahore |
| Bench Members | Mahboob Ahmad, J |
| Parties | HABIB BANK Ltd.‑‑Decree‑Holder Versus Messrs KOHINOOR COTTON MILLS Ltd. and 4 others‑‑Judgment‑Debtors |
| Primary Law | (a) High Court (Lahore) Rules and Orders‑‑ |
Q1: What are the key laws and sections cited in 1988 PLP 1604 (CLC)?
This judgment primarily cites: (a) High Court (Lahore) Rules and Orders‑‑ as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 1988 PLP 1604 (CLC)?
The case was heard and decided by the Lahore bench comprising: Mahboob Ahmad, J.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 1988 PLP 1604 (CLC) (HABIB BANK Ltd.‑‑Decree‑Holder Versus Messrs KOHINOOR COTTON MILLS Ltd. and 4 others‑‑Judgment‑Debtors). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Representation
- Date of hearing: 9th February, 1988.
Headnotes / Summary
‑‑‑ Vol. I, Chap. 12‑L, R. `21‑‑Public auction‑‑'Incidental expenditure'‑‑Meaning‑‑'Incidental expenditure', held, would be that expenditure which followed the main event of holding of auction itself‑ Expenditure incurred before holding of auction could not be termed as incidental‑‑Such expenditure, in the process of holding an auction could be expense incurred in execution but could not be deemed to be expense incurred on the auction itself‑‑Expense of publicity would not be expense incidental to auction but would be expenditure as prelude to the holding of auction‑‑Such expenditure had to be borne by decree‑holder though adjustable out of proceeds of auction separately. (b) Words and phrases‑‑ ‑‑‑ Word "incidental"‑‑Meaning, scope and import illus rated. New Oxford Illustrated Dictionary, Vol. I, p. 844; Webster's New International Dictionary, Second Edn., p. 1257; Shorter Oxford English Dictionary Second Edn., Vol. I; Funk and Wagnalls Encyclopaedic College Dictionary, p. 680; Black's Law Dictionary, Third Edn. and Wharton's Law Lexicon, Fourteenth Edn. ref. (c) Civil Procedure Code (V of 1908)‑‑ ‑‑‑O. XXI, R. 10‑‑High Court Rules and Orders, Vo1.I, Chap 12‑L, R.21‑‑"Incidental expenditure" to the auction‑‑Connotation of‑ Expenses of minor nature such as expenses of transport, stay at the place of auction etc. , held, would be "incidental expenses" as envisaged by the provisions of R.21 of High Court Rules and Orders. M. Mohsin Ansari for the Decree‑Holder. Nemo for the Judgment‑debtors. Kh. Ghulam Qadir and M.Z. Khalil, Joint Court Auctioneers.
Judgment & Decree
6. On the contrary the Court Auctioneers have submitted that expense on publicity for auction before the auction is held cannot be termed as an "incidental expenditure". Elaborating this contention the Court Auctioneers submitted that in the case in hand the total commission per rules comes to Rs.62,125 and after deducting the Government share of 20 $ of the above, the balance left would be Rs.49,700 and if the word "incidental expenditure" is interpreted to include the publicity expenses as well then the said expenditure incurred being almost equal to the commission left payable to the Auctioneers, they (the Auctioneers) will be paid nothing for the services rendered.
7. The Auctioneers further submitted that "incidental expenditure" is such expenditure only which would follow the main event. In this connection, Mr. M.Z. Khalil, Joint Court Auctioneer has submitted that the "incidental expenditure" has been defined in the Shorter Oxford Dictionary, Second Edition, Volume I as such expenditure as is incurred apart from primary disbursements.
8. In order to decide the controversy the only word requiring interpretation is "incidental expenditure" occurring in sub‑rule (U) of Rule 21 of High Court Rules and Orders, Chapter 12‑L, Volume I. For facility of reference sub‑rules (i) and (ii) of the said Rule 21 are reproduced hereunder:‑
21. Government commission.‑‑ (i) Commission at the following rates shall be deducted from the proceeds of sales under this Chapter:‑ (a) If the sale proceeds do not exceed rupees five thousand at five per centum. (b) If the sale proceeds exceed rupees five thousand‑‑at five per centum on rupees five thousand and two and a half per centum on the remainder. (ii) If the sale is conducted by the Court Auctioneer, 80 per cent. of the Commission will be paid to him and 20 per cent will be paid into the Treasury to the credit of Government. All incidental expenditure shall be met by the Auctioneer. To me it appears that the only meaning that can aptly be ascribed to the words "incidental expenditure" used in sub‑rule (ii) (ibid) can be such expenditure which follows the main event of the holding of auction itself. Sub‑rule (i) provides that commission shall be deducted from the proceeds of sales under the Chapter. That means the commission becomes payable only after the auction has been held. The expenditure incurred before the holding of auction, therefore, cannot be termed as incidental. The expense incurred before the holding of auction i.e. in the process of holding an auction may be expense incurred in the execution but it cannot be said to be an expense incurred on the auction itself. The expense of publicity, therefore, would obviously be not an expense incidental to the auction but will be an expenditure which is a prelude to the holding of auction.
9. The word "incidental" is not foreign to the legal phraseology as well. It has been defined both in the ordinary English Dictionaries as well as in the Legal Dictionaries. The meaning assigned to it in the New Oxford Illustrated Dictionary, Volume I, at page 844 is as under:‑
"Casual, not essential; one perceived as consequence of impressions no longer present." In the Webster's New International Dictionary, Second Edition, at page 1257 this word "incidental" has been assigned the following meaning:‑
"happening as a chance or undersigned feature of something else, casual; hence, not of prime concern; subordinate; (2) liable to happen or to follow as a chance feature or incident". The Shorter Oxford English Dictionary, Second Edition, Volucre I defines 'incidental' as 'occurring or liable to occur in fortuitous or B subordinate conjunction with something else; casual; b. or a charge or expense, such as is incurred apart from the primary disbursements." In the Funk and Wagnalls Encyclopaedic College Dictionary, at p. 680 'incidental' has again been defined as 'occurring without design or regularity; casual; also, minor; secondary.'
10. In the Black's Law Dictionary, Third Edition the word 'incidental' has been defined at p. 924 in more clear and precise terms as under:‑-- "Depending upon or appertaining to something else as primary; something incidental to the main purpose."
11. Similarly in Wharton's Law Lexicon, Fourteenth Edition, the word 'incidental' has been defined as 'a thing necessarily depending upon or following another that is more worthy.'
12. My view as expressed above that the "incidental expenditure" in the context of Rule 21 of High Court Rules and Orders, Chapter 12‑L, Volume I, could only be an expense of casual/minor nature which would follow the main event viz. the holding of auction and is not a major or primary expense such as the publicity for the holding of an auction thus finds square support from the meanings assigned to these words by the various authentic English dictionaries.
13. I am, therefore, clearly of the view that the incidental expenditure would not include the expenditure of major nature such as publicity for holding of auction which of necessity has to be borne by the decree‑holder though adjustable out of the proceeds of auction separately.
14. Before parting with the case it may be observed that a question may then arise that if the publicity expenses etc. are not to be taken as incidental expenditure, what other expenses can be termed as incidental expenditure to the auction. The obvious answer is that expenses of minor nature such as expenses of transport, stay at the place of auction etc. are the incidental expenses envisaged by the provision.
15. In view of the foregoing, I would reject the objection of the decree‑holder‑Bank to the claim of fee of the Court Auctioneers except that the Auctioneers will not be entitled to the expense incurred by them on meals and hotel charges of stay at Mianwali appearing at item No.7 of their bill and to the expense appearing at item No. 6 which obviously are expenses of minor nature and personal expenses of the Auctioneers to carry out the function assigned to them which cannot be separately charged apart from the commission fee payable to them. A . A . / H‑79/ L Order accordingly.