1984 PLP 1563 (SCMR)

ZAFFAR HUSSAIN MIRZA, J.‑‑ The petitioner is a timber merchant and is a member of the Karachi Timber Merchants Group, Karachi, which is an association registered under the Societies Registra tion Act, 1860. The case of the petitioner, inter alia, is that the said Group is a trade organisation within the meaning of section 2(12) of the Trade Organizations Ordinance, 1961 and as such is required to be licensed under the said Ordinance, without which the said Group is not entitled to function. It is on the record that the Group is already affiliated with the Chamber of Commerce and Industries, Karachi. It also appears that the said Group applied for a licence and registration under the Trade Organisations Ordinance but their application was rejected by the Federal Government on 8th October, 1963. The petitioner filed a Constitutional Petition for a declaration that the said Group was a trade organisation and its Memorandum and Articles were required to be modified so as to conform with the provisions of the Trade Organisa tions Ordinance and until then it was not competent to call, convene or hold any meeting. By way of consequential relief directions in the nature of mandamus and prohibition were also sought. A Division Bench of the High Court of Sind, Karachi, on examining the provisions of the Trade Organisations Ordinance and the Memorandum and Articles of the Group, held that the said Group was not a trade organisation within the meaning of section 2 (12) of the Ordinance for the reason that all the three conditions stipulated therein were not satisfied by it, nor did they qualify for licensing or registration under section 9(2) of the Trade Organisations Ordinance. The High Court accordingly dismissed the Constitutional Petition filed by the petitioner by its order, dated 12th April, 1983. The petitioner has now come up before this Court for special leave to appeal. In seeking leave Mr. N.A. Faruqui has contended that the High Court has fallen into an error in holding that the Karachi Timber Merchants Group was not a trade organisation or was not qualified for the grant of licence and registration. In this respect the learned counsel has referred us to section 3(2)(e) which is in the following terms: "

2. No licence shall be granted for registration under the Act to a trade organisation unless it is: (a) (b) (c) (d) (e) a Group, organised to represent specific trades or industries or both of specific areas." He has also referred to the definition of the term 'trade organi sation' in section 2 (12) of the said Ordinance which lays down as under: "12. 'trade organisation' means an association which‑‑ (a) is capable of being formed as a limited company within the meaning 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." From the perusal of the memorandum and the Articles of Associa tion of the Group we prima facie find that the Group satisfies the requirements of the aforesaid two provisions of law and appears to be a trade organisation entitled to be licensed and registered there under. In the Memorandum it is clearly provided that the objects of the Group were, inter alia, to promote and protect the interests, rights and privileges of the members. Para. 3 of the Articles of Association provides that the membership of the Group shall be restricted to the merchants dealing in timber and allied lines in Karachi within the administration of Karachi. It appears, therefore, that the Group was organised to represent trade of a specified area as required by section 3(2)(e). From this it also appears that it is an association formed for the purpose of promoting trade in terms of section 2(12)(e). There is nothing to indicate that the Group is not capable of being formed as a limited company and there is an express prohibition in Article IV of the Articles of Association from the payment of any dividend to its members. Thus, the requirements of section 2(12) seem to have been fully satisfied by the Group. After hearing the learned counsel we find that the question, whether the High Court was right in holding that the Karachi Timber Merchants Group was not a trade organisation entitled to be licensed and registered under the Trade Organisations Ordinance 1961, requires to be examined. The question of law raised as aforesaid is further of general public importance. Leave is accordingly granted. The security for costs shall be paid in the sum of Rs. 2,

500. The appeal to be made ready on the present record but it will be open to the parties to file additional documents. Leave granted