2001 PLP 135 (MLD)
MUHAMMAD AZEEM and 3 others‑‑‑Petitioners Versus NATIONAL BANK OF PAKISTAN and 8 others‑‑‑Respondents
| Citation | 2001 PLP 135 (MLD) |
| Forum / Court | Lahore |
| Bench Members | Ch. Ijaz Ahmad, J |
| Parties | MUHAMMAD AZEEM and 3 others‑‑‑Petitioners Versus NATIONAL BANK OF PAKISTAN and 8 others‑‑‑Respondents |
Q1: What are the key laws and sections cited in 2001 PLP 135 (MLD)?
This judgment primarily cites: statutory provisions as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 2001 PLP 135 (MLD)?
The case was heard and decided by the Lahore bench comprising: Ch. Ijaz Ahmad, J.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 2001 PLP 135 (MLD) (MUHAMMAD AZEEM and 3 others‑‑‑Petitioners Versus NATIONAL BANK OF PAKISTAN and 8 others‑‑‑Respondents). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Representation
- Mian Hafeez‑ur‑Rehman for Petitioners.
Headnotes / Summary
(a) Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997)‑‑‑‑ ‑‑‑‑S.9‑‑‑Partnership Act (IX of 1932), S.19‑‑‑Suit for recovery of Bank loan‑‑‑Settling of dispute with Bank by managing partner of the firm‑‑ Validity‑‑‑Such partner under the provision of S.19 of Partnership Act, 1932 was impliedly authorised to settle the dispute with the Bank. National Bank of Pakistan v. Umer & Brothers and 3 others 1987 MLD 594 and Jiban Krishna De and another v. Sreepada Talukdar and others PLD 1953 Dacca 117 ref. (b) Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997)‑‑‑‑ ‑‑‑‑S.18‑‑‑Civil Procedure Code (V of 1908), S.12(2) & O.XIV, R.1‑‑ Setting aside of judgment and decree‑‑‑Provisions of S.12(2), C,P.C.‑‑ Applicability‑‑‑Non‑framing of issues‑‑‑Effect‑‑‑Decree by consent was passed by .the Banking Court against the defendants‑‑‑Consent was given by the managing partner of the firm whereas the remaining partners filed application under S.12(2), C.P.C. at the time when execution application was filed by the Bank‑‑‑Banking Court summarily dismissed the application under S.12(2), C.P.C. without framing issues‑‑‑Validity‑‑‑Parties were closely related and they failed to make .out that the judgment had been obtained by fraud or, misrepresentation or the same was without jurisdiction‑‑‑Where the application under S.12(2), C.P.C. was filed after execution proceedings were initiated, the application was improper, mala fide and was made only to protract to the proceedings and‑to abuse the process of the Court-‑‑Court could dismiss such application summarily without framing any issue or recording any evidence‑‑‑Application was rightly dismissed in, circumstances. Mian Munir Ahmad's case PLD 1998 Kar. 278 and Ghulam Muhammad v. M. Ahmad Khan and 6 others 1993 SCMR 662 ref. (c) Pardahnashin lady‑‑ ‑‑‑‑ Pardahnashin lady, privilege of‑‑‑Where the lady had not taken the stand that she was illiterate, privilege of a lady being a "Pardahnashin lady" was not attracted. Karam Ali's case PLD 1990 SC 1 distinguished. (d) Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997)‑‑‑‑ ‑‑‑‑S.9(3)‑‑‑Civil Procedure Code (V of 1908), O. V, R. 20(3)‑‑‑Service on defendants ‑‑‑Publication of notice in press‑‑‑Where public notice was published in two dailies one in English and the other in Urdu, the service on the defendants was effected in circumstances. Messrs Ahmad Autos and others v. Allied Bank of Pakistan Limited PLD 1990 SC 497 ref. (e) Equity‑‑‑ ‑‑‑‑ He who seeks equity must come with clean hands. Nawabzada Raonaq Ali's case PLD 1973 SC 236 ref. (f) Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997)‑‑‑‑ ‑‑‑‑S. 21‑‑‑Constitution of Pakistan (1973), Art.l99‑‑‑Constitutional petition‑‑‑ Maintainability‑‑‑ Alternate remedy, non‑availing, of‑‑‑Petitioners instead of filing appeal under S.21, Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997 assailed the decree in Constitutional petition‑‑‑Validity‑‑‑Where alternate remedy was available against the original decree, Constitutional petition was not maintainable. Messrs Gold Star International v. Muslim Commercial Bank Ltd. 2000 MLD 421; Central Cotton Mills Ltd. and another v. Atlas Bot Lease Co. Ltd. 1998 SCMR 2352 and Messrs Ismail's case PLD 1996 SC 246 ref.
Judgment & Decree
Muhammad Islam, respondent No. 5/defendant No.9. | Mst. Zahida Bibi, petitioner NoA/ defendant No.6.
9. The aforesaid Family Table shows that petitioners Nos.1 to 4 and respondents Nos.2 to 5 are close relatives.
10. It is better and appropriate to reproduce the relevant clauses of the partnership deed, operative part of the consent decree, dated 6‑2‑1999 and the impugned order, dated 26‑6‑2000. "(6) That the party of the first Part Muhammad Khalid Khokhar will be the Managing Partner of the firm. He will manage all the affairs of partnership business and operate bank account etc. He is authorised to draw loan from the banks or other persons in the name of the firm by mortgaging the property of the firm for use in the best interest of the firm's business." (13) That all the provisions of Partnership Act shall be applicable to this deed. (1) A consenting decree is passed in favour of the plaintiff and against the defendant for Rs.3,28,87,597.42 (Rupees three crore, twenty eight lacs, eighty seven thousand, five hundred and ninety seven and paisas 42 only) (2) The decretal amount shall be paid by the defendant in eight equal instalments of Rs.41,10,950 after availing of period of 8 months and seven days as grace period; (3) The 8 instalments of the decretal amount shall be paid by the defendants to the plaintiff as under:‑‑ Installment No. Amount. Date of payment
1. Rs.41,10,950.00 31‑12‑1999
2. Rs.41,10, 950.00 30‑6‑2000
3. Rs.41,10,950.00 31‑12‑2000
4. Rs.41,10,950.00 30‑6‑2001
5. Rs.41,10,950.00 31‑12‑2001
6. Rs.41,10,950.00 30‑6‑2002
7. Rs.41,10,950.00 31‑12‑2002
8. Rs.41,10, 947.00 30‑6‑2003 "The wording of the partnership deed, as such, clearly and unambiguously establishes the authority of Khalid Khokhar to bind the firm. The applicants namely Muhammad Azeem, Mst. Sughran Bibi, Mst. Kaneez Bibi and Mst. Zahida Bibi (respondents Nos.3, 4, 5 and 6), who are partners in the firm, cannot be allowed to wriggle out of their obligation as partners of the firm by setting up a plea which is wholly inconsistent with the partnership deed executed by, them. It is also worth noting that the applicants were duly represented in Court on 6‑2‑1999 when the impugned judgment and decree were passed. Consequently, there is no valid ground for setting aside the aforesaid judgment and decree. As a result, the present application being without merits is dismissed' "
11. The aforesaid operative parts of the impugned decree, order and Partnership deed reveal that respondent No.2/defendant No.2 was impliedly authorised to settle the dispute with the respondent Bank by virtue of section 19 of the Partnership Act, 1932. In arriving to this conclusion we are also fortified by the law laid down by the superior Courts in the following judgments:‑‑ 1987 MLD 594 (National Bank of Pakistan v. Umer Brothers and 3 others). PLD 1953 Dacca 117 (Jiban Krishna De and another v. Sreepada Talukdar and others).
12. For challenging the judgment and decree, dated 6‑2‑1999 the petitioners are required to make out that said judgment has been obtained by fraud or misrepresentation or it is without jurisdiction. Keeping in view the relationship between respondent No.2 and the petitioners, the original decree was passed on 6‑2‑1999 and the present petitioners filed application under section 12(2), C.P.C. on 27‑5‑2000. We, therefore, are of the clear view that if the.Court comes to the findings that an application under section 12(2) is improper, mala fide and has been made only to protract the proceedings and to abuse the process of the Court, the Court can dismiss the same summarily without framing any issue or recording any evidence. In arriving at this conclusion we are fortified by the law laid down by the Hon"ble Supreme Court in 1993 SCMR 662 (Ghulam Muhammad v , M. Ahmad Khan and 6 others).
13. The respondent No.2 and petitioners got maximum benefit out of the consent decree, dated 2‑6‑1999 and thereafter did not honour their commitment and the respondent Bank was constrained by the circumstances to file the execution application against respondent No.2 and petitioners and thereafter petitioners filed application under section 12(2), C.P.CA, which brings the case of the petitioners that petitioners filed the application with mala fide intention for the purpose to frustrate the consent decree. The petitioners had the knowledge of the suit filed by respondent Bank against them as the public notice was issued in the 'Daily Nawa‑i‑Waqt and The News' on 28‑3‑1998. The petitioner No.1 is admittedly a man while petitioners Nos.2 to 4 are ladies‑ but they did not take a stand that they are illiterate. Therefore, the principle of Pardahnasheen Lady as is held by the Hon'ble Supreme Court in PLD 1990 SC 1 is not attracted in the present case. Therefore, the case cited by the learned counsel for the petitioners, is distinguished on facts and law. On account of the Public Notice published in the Daily Nawa‑i‑Waqt and The News, the service of the petitioners had been effected as per principle laid down by the Hon'ble Supreme Court in D PLD 1990 SC 497 (Messrs Ahmad Autos and others v. Allied Bank of Pakistan Limited).
14. The consent decree was passed on 6‑2‑1999 whereas the petitioners had filed application under section 12(2), C.P.C. on 27‑5‑2000. This fact brings the case of petitioners that petitioners did not approach this Court with clean hands. It is settled principle of law that he who seeks equity must come with clean hands, as per principle laid down by the Hon'ble Supreme Court in Nawabzada Raonaq Ali's case (PLD 1973 SC 236). The petitioners have alternative remedy to agitate the original decree under section 21 of the Banking Companies (Recovery of Loans, Advances, Credits and. Finances) Act, ‑1997. Therefore, .the writ petition is not maintainable as per principle laid down by the superior Courts in the following judgments:‑‑
2000 MLD '421 (Messrs. Gold Star International v. Muslim Commercial Bank Ltd.). 1998 SCMR 2352 (Central Cotton Mills Lid. and another v. Atlas Bot Lease Co. Ltd.). PLD 1996 SC 246, Messrs Ismail's case.
15. In view of what has been discussed above, this writ petition has no merits and the same is dismissed. Q.M.H./M.A.K./M‑327/L , . Petition dismissed.