Examination of plaint

2013 CLD 2005 LAHORE-HIGH-COURT-LAHORE Judicial Precedent

Ss. 9 & 7Suit under the Financial Institutions (Recovery of Finances) Ordinance, 2001Examination of plaintStandard of plaint

Plaint under S.9 of the Ordinance must disclose a cause of action which spelled out the "default in fulfillment of any obligation with regard to any finance" and for this reason that S.9(2) of the Ordinance prescribed that the plaint must be supported by statement of account, which was applicable to both the parties i.e., customer and the financial institution

Additional requirement existed for the financial institution to get their statement of account certified under the Bankers' Books Evidence Act, 1891 and such requirement of the Statement of Account is to quantify the default complained of under the Finance Agreement(s) entered between the parties

Default or breach, arising out of the contract between the parties or in fulfillment of any obligation with regard to any finance, must be numerically quantified and reflected through the Statement of Account

Section 9(2) of the Ordinance further stated that the plaint shall be supported by all other relevant documents relating to the grant of finance.

2013 PLD 716 LAHORE-HIGH-COURT-LAHORE Judicial Precedent

O. VII, Rr. 1 & 11Examination of plaintStandard of plaint"Cause of action", meaning and connotation ofEssential elements of "cause of action"

Cause of action was the foundation of a law suit and was the totality of material facts which it was necessary for the plaintiff to allege and prove in order to succeed

Elements of a cause of action were: first, the breach of duty owing by one person to another; second the damage resulting to the other from the breach

"Cause of action" has been held from the earliest time to include every fact which is material to be proved to entitle the plaintiff to succeed, and every fact which a defendant would have a right to traverse

Test of "cause of action" was that if what the plaintiff stated was taken to be correct, did it entitle him to a relief or not in law

Cause of action meant the infringement of the right which furnished occasion for the action and must be antecedent to the institution of a suit and on the basis of it the suit must be filed

Plaint if it did not disclose a cause of action, a court will reject such a plaint

Plaint must, therefore, be pregnant with a lawful cause of action for the suit to progress and fructify

For court it would be meaningless and futile to proceed with a suit if upon examination the court found it to be devoid of any cause of action

Purpose of conferment of powers under O.VII, R.11, C.P.C. was to ensure that litigation which was meaningless and bound to prove abortive should not be permitted to occupy the time of the court

Obligatory upon the courts to judicially assess, ideally at the very beginning, if the plaint disclosed a "cause of action" and if it did not, reject the same without further ado.

2013 PLD 716 LAHORE-HIGH-COURT-LAHORE Judicial Precedent

Ss. 9 & 7Suit under the Financial Institutions (Recovery of Finances) Ordinance, 2001Examination of plaintStandard of plaint

Plaint under S.9 of the Ordinance must disclose a cause of action which spelled out the "default in fulfilment of any obligation with regard to any finance" and for this reason that S.9(2) of the Ordinance prescribed that the plaint must be supported by statement of account, which was applicable to both the parties i.e., customer and the financial institution

Additional requirement existed for the financial institution to get their statement of account certified under the Bankers' Books Evidence Act, 1891 and such requirement of the Statement of Account is to quantify the default complained of under the Finance Agreement(s) entered between the parties

Default or breach, arising out of the contract between the parties or in fulfilment of any obligation with regard to any finance, must be numerically quantified and reflected through the Statement of Account

Section 9(2) of the Ordinance further stated that the plaint shall be supported by all other relevant documents relating to the grant of finance.