Consolidating of suits

2014 MLD 1635 LAHORE-HIGH-COURT-LAHORE Judicial Precedent

S.151Inherent jurisdictionConsolidating of suitsPrincipleNo provision for consolidation of civil suits has been provided in Civil Procedure Code, 1908

Court may consolidate different suits to avoid conflict of judgments provided parties in the suits are the same and cause of action is common.

2012 CLD 1556 KARACHI-HIGH-COURT-SINDH Judicial Precedent

Ss. 9 & 10Constitution of Pakistan, Art. 199Constitutional petitionConsolidating of suitsLeave to defend, refusal of

Two suits were pending before Banking Court, one filed by bank and the other filed by one of the defendants, after refusal of leave to defendants in suit filed by bank, Banking Court allowed application of defendant and consolidated both the suits

Plea raised by bank was that both the suits could not be consolidated

Validity

Dismissal of application for leave to defend the suit meant that accounts between parties could be settled without recording of evidence

When no evidence was required to settle accounts, then decree for settlement of accounts was to follow as no other step was left in the suit to be taken other than passing of decree on the basis of accounts already placed before court by parties

After dismissal of application for grant of leave to defend the suit, law had envisaged that suit should be decreed forthwith

At a stage when only decree was to be passed in a suit, consolidation of such suit with any other suit in which evidence was to be recorded would defeat the object of S.10(11) of Financial Institutions (Recovery of Finances) Ordinance, 2001

Order of consolidation passed by Banking Court also had the effect of nullifying the order whereby application for leave to defend the suit was dismissed, therefore, such order of consolidation of suits could not be sustained in law

Banking Court had violated the provisions of S.10(11) of Financial Institutions (Recovery of Finances) Ordinance, 2001, therefore, order for consolidating the suits was not sustainable and the same was set aside

High Court directed Banking Court to conclude/decide the suit filed by petitioner bank expeditiously under S.10(11) of Financial Institutions (Recovery of Finances) Ordinance, 2001

Petition was allowed accordingly.