1983 PLP 3192 (CLC)

B. A.,LL. B. Pleader, Noor Bhoy Ali Bhoy Building, 2nd Floor, Bohra Bazar, Saddar, Karachi. Subject :‑Request for grant of licence under section 3 of the `Trade Organi zations Ordinance, 1961 (XLV of 1961) to the (Proposed) Karachi Timber Merchant's Group. Dear Sir, ' With reference to your letter dated the 3rd September, 1963, 1 have the honour to say that the sponsors of the Karachi Timber Merchants "Group may be advised to secure affiliation with the Chamber of Commerce and Industry, P. M. A. Building, Nicol Road, Karachi as its Group Member under rule 2 (d) (if) of the Rules announced in this Ministry's Public Notice No. 1 (5)/51‑EPI, dated the 26th May, 1962. At the same time, the sponsors may also be advised to furnish to this Ministry, in duplicate, the names and other particulars of the member firms of the Group in the pro forma enclosed. (2) A copy of this letter is being forwarded to the said Chamber, which may please be contacted by the sponsors of the Group in the matter." ,~ Respondent No. 4 has further alleged that the ~ said Group is already registered with the Registrar of Joint Stock Companies and is also affiliated with Chamber of Commerce and Industries, Karachi (Respondent No. 2). These facts have not been controverted by the petitioner.

4. The petitioner has founded his case on section 3 of the said Ordi nance which is reproduced as under "3. (1) Notwithstanding anything contained in the Act or in any other law for the time being in force relating to registration of societies, bodies or associations of persons, no trade organization shall be registered under the Act or such other law unless it holds a licence granted by the appropriate Government authorizing it to be so registered. "(2) No licence shall be granted for registration under the Act to a trade organization unless it is :' (a) a Federation of Chambers of Commerce and Industry, organized n‑: 1 on all‑Pakistan basis, to represent Chambers and Associations re ferred to in clauses (b) and (c) ; (b) a Chamber of Commerce and Industry, organized to represent trades and industries of specific areas ; (c) an Association of trade or industry or of both, organized on all‑Pakistan basis, to represent specific trades or industries or both ; (d) a Town Association, organized to represent trades and industries at a place; at which there is no Chamber of‑ Commerce and Industry (e) a Group, organized to represent specific trades industries or both of specific areas : Provided that a licence for registration as a Federation of Chambers of Commerce and Industry shall not be granted to more than one trade organization." The provisions of section 3 would make it clear that a Group does not qualify for licencing or registration unless the five conditions mentioned above are fulfilled. Again the said Group should be covered by the defini tion of 'trade organisation' as laid down in section 2 (12) of the said Ordi nance. The definition runs as under "

2. In this Ordinance, unless there is anything repugnant Min the sub ject or context,‑ (1) to (11) ... ... ... ... ... . (12) `trade organization' means an association which,‑. (a) is capable of being formed as a limited company within the mean ing of the Act ;, (b) is formed or intended to be formed with the object of promoting any trade, commerce or industry or any group or class thereof, or for representing for any purpose, in any manner and to any extent, any trade, commerce or industry or any group or class thereof ; and (c) prohibits payment of any, dividend to its members and applies or intends to apply its profits or other income for achieving its objects." It has been argued by the learned counsel for the respondents that the said Group does not fulfil any of the three conditions stated in section 2(12). It may be stated that all the three conditions are to be read conjunctively and not disjunctively. The said Group is not capable of being formed Limited Company within the meaning of the Companies Act. Perusal of the Articles and Memorandum of Associations of the said Group, reference to which will be made later, would show that the Group has not been formed with the object of promoting any trade, commerce or industry or any Group or class thereof or for representing for any purposes in any, manner and to any extent in trade, commerce, industry or any Group or class thereof. It would further be clear that even clause (c) referred to herein above does not apply to the said Group.

5. It would be advantageous now to make a detailed reference to the Memorandum and Articles of Association in order to ascertain as to what are the aims and objects with which the Group has been formed. A printed copy of the Memorandum and Articles of Association has been annexed with the Petition as Annexure `A'. Paragraph 3 of the Memorandum relates to the aims and objects of the said Group which is "to protect the interest, rights and privileges of the members" of the Karachi Timber Merchants Associa tion (Group) and "to safeguard" their interest. In this paragraph nothing has been said about promotion of trade, commerce or industry in which the Group is engaged. All the aims and objects described in paragraph 3 of the Memorandum relate to the interest and privileges of the members of the Group only and not to their trade, business or industry. In view of the provisions of the Memorandum Mr. Nasim Farooqui learned counsel for the petitioner was unable to satisfy us as to how the said Group i.e. respondent No. 3 is qualified for being granted registration and licence under section of the said Ordinance. Under the above section a trade organization, which is covered by the definition of section 2 (12) alone can apply for licence an registration to the appropriate Government. In the case of respondent No. 3 none of the conditions set‑out in section 2 (12) of the said Ordinance is fulfilled. As such the Federal Government was justified in refusing the request of the said Group for registration and licence.

6. Again the reliefs that have been sought by the petitioner in his petition cannot be granted in view of the circumstances brought on record by the respondents with their counter‑affidavit. The first relief sought is that this Court should declare that respondent No. 3 is a trade organization within the meaning of the said Ordinance. It has already been shown with reference to section 2 (12) of the said Ordinance that respondent No. 3 is not covered by the definition of trade organization. The second relief sought by the petitioner is that a writ of mandamus may be issued directing tile Federal Government to require respondent No. 3 i.e. the said Group to secure registration and licence under the said Ordinance. This is a very peculiar relief sought by the petitioner. The Federal Government cannot directed by this Court to require respondent No. 3 to apply for registration and licence nor the Court can issue a writ of mandamus directing the Federal Government to issue a licence to or to register the said Group under the said Ordinance, even if the said Group does not fall within the definition of trade organization or is not covered by section 3 of the said Ordinance. So far as the duty of respondent No. 3 to apply for a licence and registration is concerned, that has already been performed by making application to this effect to the Federal Government. This application is Annexure `R‑4/10' dated 3rd September, 1963 which was turned down by the Federal Govern ment vide its reply dated 8th October, 1963 reproduced hereinabove. This relief, therefore, is also misconceived and cannot be granted by this Court. In view of the above findings the question of granting prohibitory injunction restraining respondent No. 4 from acting ac President of the said Group doe not arise.

7. The last relief sought by the petitioner is that the affiliation of the said Group With the Chamber of Commerce and Industry (respondent No. 2) may be declared to be illegal. This relief has not been pressed by Mr. 'Nasim Ahmad Farouqui learned counsel for the petitioner during his arguments nor has it been clarified anywhere in the petition as to why and hog; ,he affiliation of respondent No. 3 with respondent No. 3 is illegal. For the above reasons we hold that the petition is absolutely misconceived. unfounded and frivolous and appears to have been filed due to personal differences of the petitioner with respondent No.

4. The petition is, there are, dismissed with costs. M. A. K. Petition dismissed.