1993 PLP 1154 (MLD)
LARKANA SUGAR MILLS (PVT.) LTD. and another‑‑‑Appellants Versus UNITED BANK LIMITED‑‑‑Respondent
| Citation | 1993 PLP 1154 (MLD) |
| Forum / Court | Karachi |
| Bench Members | Mamoon Kazi and Ahmad Yar Khan, JJ |
| Parties | LARKANA SUGAR MILLS (PVT.) LTD. and another‑‑‑Appellants Versus UNITED BANK LIMITED‑‑‑Respondent |
Q1: What are the key laws and sections cited in 1993 PLP 1154 (MLD)?
This judgment primarily cites: statutory provisions as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 1993 PLP 1154 (MLD)?
The case was heard and decided by the Karachi bench comprising: Mamoon Kazi and Ahmad Yar Khan, JJ.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 1993 PLP 1154 (MLD) (LARKANA SUGAR MILLS (PVT.) LTD. and another‑‑‑Appellants Versus UNITED BANK LIMITED‑‑‑Respondent). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Representation
- Noor Muhammad for Appellants.
- Mansoor‑ul‑Arfin for Respondent.
- Dates of hearing: 13th and 14th April, 1992.
Headnotes / Summary
Banking Companies (Recovery of Loans) Ordinance (XIX of 1979)‑‑‑ ‑‑‑‑Ss.2(f) & 12‑‑‑Law Reforms Ordinance (XII of 1972), S.3‑‑‑Suit filed in High Court for recovery of Bank loan under provisions of Ordinance XIX of 1979‑‑‑Maintainability of appeal against decree in such suit under provision of S.3, Law Reforms Ordinance, 1972‑‑‑Validity‑‑‑Jurisdiction‑‑‑"Special Court"‑‑ Connotation‑‑‑Special Court does not only include the Special Court constituted under the provisions of the Ordinance XIX of 1979, by the Federal Government by a notification in the official Gazette but same would also include the High Court in the exercise of its original civil jurisdiction‑‑‑No appeal can be filed under S.3, Law Reforms Ordinance, 1972, in respect of an order, judgment or decree passed by a Single Judge of a High Court while exercising jurisdiction under the provisions of Ordinance XII of 1972‑‑‑Such appeal, however, would be competent under provision of S.12, Banking Companies (Recovery of Loans) Ordinance, 1979: ‑‑[Words and phrases]. Definition of the "Special Court" Court constituted under the provisions of the Ordinance XIX of 1979 by the Federal Government by a Notification in the official Gazette but the same would also include the High Court in exercise of its original civil jurisdiction. Section 6 of the Ordinance XIX of 1979 indicates that the Special Court has been vested with jurisdiction in respect of claim filed by a "Banking Company" against a "borrower" or by a "borrower" against a "banking company" and in respect of, or arising out of, a "loan" and such Court has been vested in this regard with all the powers of a Civil Court under the Code of Civil Procedure. Subsection (2) of section 7 of the Ordinance XIX of 1979 further indicates that the Special Court in the exercise of its civil jurisdiction has been vested in case of all suits before it including suits based on mortgages or statement of accounts or recovery of money paid to or to the order of the defendant with powers under the summary procedure provided for in Order XXXVII in the First Schedule to the Code of Civil Procedure. Section 12 then provides for appeals in respect of any order, judgment, decree etc. passed by the Special Court to the High Court to be heard by a Bench of not less than two Judges. Provisions of Ordinance XIX of 1979, do not indicate that they were intended to draw any distinction between the powers or functions of a Special Court constituted by the Federal Government by a Notification under the provisions of the Ordinance XIX of 1979, or the High Court while exercising its original civil jurisdiction in respect of cases filed before it for recovery of bank loans. Section 1Z of the Ordinance XIX of 1979 which refers to appeals in respect of any order, judgment or decree passed by a Special Court also provides for such appeal to the High Court which according to section 12(4) of the said Ordinance, is to be heard by a Bench of not less than two Judges. No appeal can be filed under section 3 of the Law Reforms Ordinance or even under the provisions of Ordinance X of 1980 in respect of an order, judgment or decree passed by a Single Judge of High Court while exercising jurisdiction under the provisions of the Ordinance XIX of 1979, except as provided by section 12 of the said Ordinance. Muhammad Muzaffar v. Allied Bank of Pakistan PLD 1987 Kar. 501 ref.
Judgment & Decree
6. It may be pointed out that according to section 2(f) of the said Ordinance. "Special Court" means‑‑‑ "(i) in respect of a case in which the outstanding amount of the loan does not exceed one million rupees, or the trial of offences punishable under this Ordinance, a person who is or who has been a District Judge or an Additional District Judge and is appointed by the Federal Government, by Notification in the official Gazette, to be a Special Court to exercise jurisdiction within such territorial limits as may be specified in the notification, and, in the absence of such appointment, the District Court, and (ii) in respect of any other case, the High Court in the exercise of original civil jurisdiction:" Section 3 of the said Ordinance provides‑‑‑ "
3. Ordinance not to derogate from other laws.‑‑‑The provisions of this Ordinance shall be in addition to and, save as hereinafter expressly provided, not in derogation of any other law for the time being in force." Section 6 further provides that a Special Court shall:‑‑‑ "(a) in the exercise of its civil jurisdiction, have in respect of a claim filed by a banking company against a borrower or by a borrower against a banking company in respect of, or arising out of, a loan all the powers vested in a Civil Court under the Code of Civil Procedure, 1908 (Act V of 1908); (b) ...................................... : " Section 7 of the Ordinance further provides as follows:‑‑ "
7. Procedure of Special Court‑‑‑(1) Suits before the Special Court shall come up for regular hearing as expeditiously as possible and, except in extraordinary circumstances and on grounds to be recorded a Special Court shall not allow adjournment. (2) In the exercise of its civil jurisdiction, the Special Court shall in all suits before it, including suits based on mortgages of all kinds or statement of accounts for recovery of money paid to, or to the order of, the defendant, follow the summary procedure provided for in Order XXXVII in the First Schedule to the Code of Civil Procedure, 1908 (Act V of 1908)." Section 12 of the Ordinance which deals with appeals and is the most important section for the purpose of this case provides as follows:‑‑ "
12. Appeals:‑‑‑(1) Any person aggrieved by any order, judgment, decree or sentence of a Special Court may, within thirty days of such order, judgment, decree or sentence, prefer an appeal to the High Court within whose jurisdiction the order, judgment, decree or sentence is passed: Provided that no appeal shall lie from an interlocutory order which does not dispose of the entire case before the Special Court. (2) An appeal under subsection (1) shall be on any one of the following grounds, namely:‑‑ (a) the decision being contrary to law or to some usage having the force of law, or (b) the decision having failed to determine a material issue of law or usage having the force of law, or (c) a substantial error apparent in the procedure provided by or under this Ordinance, which may possibly have produced error in the decision on merits. (3) An appeal may be preferred under this section from decision made ex-parte. (4) An appeal under this section shall be heard by a Bench of not less than two Judges. (5) No appeal shall be admitted for hearing unless the appellant deposits in cash with a High Court an amount equivalent to the judgment debt or, at the discretion of the High Court, furnishes security equal in value to such amount."
7. Perusal of the above provisions clearly indicates that the definition of the "Special Court" does not only include the Special Court constituted under the provisions of the Ordinance by the Federal Government by a notification in the official Gazette but the same would also include the High Court in exercise of its original civil jurisdiction. Section 6 indicates that the Special Court has been vested with jurisdiction in respect of claim filed by "Banking Company" against a "borrower" or by a "borrower" against a "banking company" and in respect of, or arising out of a "loan" and such Court has been vested in this regard with all the powers of a Civil Court under the Code of Civil Procedure. Subsection (2) of section 7 further indicates that the Special Court in the exercise of its civil jurisdiction has been vested in case of all suits before it including suits based on mortgages or statement of accounts or recovery of money paid to or to the order of the defendant with powers under the summary procedure provided for in Order 37 in the First Schedule to the Code of Civil Procedure. Section 12 then provides for appeals in respect of any order, judgment, decree etc. passed by the Special Court to the High Court to be heard by a Bench of not less than two Judges. Nothing can be spelled out from the, aforesaid provisions to indicate that they were intended to draw any distinction between the powers or functions of a Special Court constituted by the Federal Government by a notification under the provisions of the said Ordinance or the High Court while exercising its original civil jurisdiction in respect of cases reference to which has been made earlier in this judgment. Section 12 of the said Ordinance which refers to appeals in respect of any order, judgment or decree passed by a Special Court also provides for such appeal to the High Court which according to section 12(4) of the said Ordinance, is to be heard by a Bench of not less than two Judges. Mr, Noor Muhammad has argued that as is indicated by the language of subsection (1) of section 12 no separate provision has been made by the Legislature in respect of appeals which may be filed against a judgment passed by a Judge of the High Court while, exercising jurisdiction under the provisions of the said Ordinance. In our view, the answer to this argument can be found in the observations made in the judgment of the Supreme Court and that of a Division Bench of this Court, reference to which has already been made in this judgment.
8. We are, consequently, of the view that no appeal can be filed under section 3 of the Law Reforms Ordinance or even under the provisions of Ordinance X of 1980 in respect of an order, judgment or decree passed by a Single Judge of this Court while exercising jurisdiction under the provisions of the said Ordinance except as provided by section 12 of the said Ordinance. So far as the impugned order in the present case is concerned, it is nobody's case that the same can be regarded as an interlocutory order but notwithstanding the same no appeal under section 12(5) of the said Ordinance is to be admitted for hearing in respect of the same unless the appellant deposits in cash with the Court an amount equivalent to the judgment debt or in the alternative furnishes security equal in value to such amount as provided by the said subsection. We have asked Mr. Noor Muhammad whether the appellant is prepared to either deposit the amount in this Court or furnish security as provided by section 12(5) of the said Ordinance. The answer of the learned counsel is, however, in the negative. Under such circumstances, notwithstanding the fact that the appeal filed by the appellant was admitted. by another Division Bench of this Court but such admission being irregular this appeal cannot be heard and decided by us on merits unless the appellant first complies with the requirements of section 12(5) of the said Ordinance. Since the learned counsel for the appellant has very candidly stated before us that the appellant is not in a position to comply with the requirements of section 12(5), we have no other option but to dismiss this appeal.
9. In the result, this appeal is dismissed. The parties are, however, left to bear their own costs. A.A./L‑68/K Appeal dismissed.