text
stringlengths 2
478k
| case_details
dict |
---|---|
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE ANWAR ZAHEER JAMALI, HCJ
MR. JUSTICE SH. AZMAT SAEED
MR. JUSTICE FAISAL ARAB
CIVIL APPEAL NO. 185 OF 2015
(On appeal against the judgment dated 12.03.2015
passed by the Election Tribunal, Rawalpindi in Election
Petition No. 284/2013)
Ch. Hamid Hameed
… Appellant
VERSUS
Barrister Abdullah Mumtaz Kahlon and others
…Respondents
For the Appellant:
Mr. Tariq Mehmood, Sr. ASC
Syed Najam-ul-Hassan Kazmi, Sr. ASC
For the Respondent (1): Dr. Babar Awan, Sr. ASC
Mr. Muhammad Hanif Khatana, ASC
Syed Rifaqat Hussain Shah, AOR
Assisted by:
Mr. Farooq Awan, ASC and
Barrister Adil Kahloon
Date of Hearing:
10.05.2016
JUDGMENT
FAISAL ARAB, J.- In the General Elections that were held
on 11.05.2013, the appellant was declared returned candidate from
the National Assembly constituency NA-66-III City Sargodha. The
respondent No. 1, who was runner up filed Election Petition before the
Election Tribunal under Section 52 of the Representation of the People
Act, 1976 alleging corrupt and illegal practices on the part of the
appellant. It was also alleged that the appellant in his nomination form
has concealed his ownership/interest in Koh-e-Noor Textile Cotton
Mills situated in Pipplan, District Mianwali. The Tribunal after framing
Civil Appeal No. 185/2015
2
2
issues and recording evidence of the parties, accepted the Election
Petition on the ground of concealment of asset. Appellant’s election
was declared void and fresh election in the constituency was ordered.
Being aggrieved by such decision the appellant filed the present
appeal.
2.
Learned counsel for the appellant Mr. Tariq Mehmood
submitted that appellant’s election was declared void on the ground
that the appellant had concealed his ownership/interest in Koh-e-Noor
Textile Cotton Mills though he was never an owner of the said mills.
He submitted that the appellant is in the business of purchasing old
machinery and equipment as well as the material of old buildings that
are to be demolished. He further explained that apart from purchasing
old machinery and equipment as well as the material of old buildings
of the said mills, the appellant alongwith his other two partners
entered into a contract with the owner of the said mills to launch a
project on the land of the mills. The purpose of the project was to
carve out plots and then sell them to the general public. He submitted,
the appellant never become owner of the land of the mills, he only
made investment.
3.
Learned counsel for the respondent No. 1, Dr. Babar Awan
in rebuttal argued that there was sufficient evidence on record to
establish that the appellant became owner of Koh-e-Noor Textile
Cotton Mill which fact he ought to have declared in his nomination
form but he concealed the same. Learned counsel referred to various
documents on record to demonstrate that the appellant became one of
the owners of Koh-e-Noor Textile Cotton Mills. He drew our attention
Civil Appeal No. 185/2015
3
3
to a complaint lodged by the appellant with DPO Sargodha wherein he
alleged fraud on the part of one Ghulam Abbas Khan, who while acting
as attorney of the original owner of the mills, Khaqan Hassan Najeeb,
sold plots and misappropriated the sale proceeds that fell to the share
of the appellant. He then took us to the FIR that was lodged pursuant
to such complaint at Police Station N Area, District Sargodha under
Section 406 PPC on 5.2.2012. He also referred to partnership
agreement executed on 19.7.2001 among the appellant having 37.5%
share and two other persons namely Javed Iqbal having 25% share
and Mian Munir Ahmed having 37.5% share.
The partnership deed shows that three partners had
agreed to make investment in the project mentioned above. The owner
of the mills agreed to launch the project which was to be supervised by
his nominee Ghulam Abbas Khan. He was made responsible to sell the
plots and deposit the sale proceeds in bank which amount was then to
be shared amongst all the stakeholders according to their respective
shares. After sale of the plots, the appellant alleged misappropriation
of his share on the part of Ghulam Abbas Khan, which led to filing of
the complaint and FIR No. 54 at Police Station N Area, Sargodha
under Section 406 PPC on 5.2.2012.
4.
It is an admitted position that title of Koh-e-Noor Textile
Cotton Mills remained with Khaqan Hassan Najeeb till the finalization
of the project. From the record of the criminal proceedings, it is
evident that the appellant only alleged misappropriation of his share in
the project that apparently remained unpaid. Thus the whole
transaction with regard to the sale of the plots was nothing but an
Civil Appeal No. 185/2015
4
4
investment in a project, object of which was materialized when plots
were carved out, sold and transferred to the purchasers through
execution of sale deeds that were executed by Ghulam Abbas Khan on
the strength of power of attorney executed in his favour by Khaqan
Hassen Najeeb. Hence, from the above, it is apparent that neither on
or before 30.06.2013 the appellant became owner of Koh-e-Noor
Textile Cotton Mills. The appellant only made an investment along
with his two other partners in a project which came to an end with the
sale of the plots and only for the misappropriation of appellant’s share
in the sale proceeds, criminal proceedings were initiated against
Ghulam Abbas Khan. Had the project failed even then the appellant
would not have become owner in the land in question as in such
eventuality also he would have only claimed return of his investment
plus damages and nothing more. So the question of concealment of
ownership in Koh-e-Noor Textile Cotton Mills does not arise. The
finding of the Election Tribunal in these circumstances is not
sustainable in law.
5.
The above are the detailed reasons of our short order of
even date whereby we allowed this appeal and set aside the impugned
judgment.
CHIEF JUSTICE
JUDGE
JUDGE
Islamabad, the
10th of May, 2016
Approved For Reporting
Khurram
| {
"id": "C.A.185_2015.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
PRESENT:
MR. JUSTICE SH. AZMAT SAEED.
MR. JUSTICE IJAZ UL AHSAN.
MR. JUSTICE QAZI MUHAMMAD AMIN AHMED.
Civil Appeal No.188 of 2019
Against judgment dated 15.01.2019 of the
High Court of Sindh, Bench at Sukkur, passed
in Election Petition No.S-01 of 2018.
Nida Khuhro.
Appellant(s)
Versus
Moazzam Ali Khan and others
Respondent(s)
For the Appellant(s):
Sardar M. Latif Khan Khosa, Sr. ASC.
Ch. Akhtar Ali, AOR.
For Respondent No.1:
Mr. Salah-ud-Din Ahmed, ASC.
Date of Hearing:
01.08.2019.
O R D E R
IJAZ UL AHSAN, J-. The Appellant calls into
question a judgment dated 15.01.2019 of an Election
Tribunal of the High Court of Sindh, Bench at Sukkur.
Through the impugned judgment, an Election Petition bearing
No.S-01 of 2018 filed by the Appellant was dismissed.
2.
Briefly stated the facts necessary for disposal of
the lis in hand are that the Appellant contested General
Election, 2018 alongwith Respondent No.1 and others.
Respondent No.1 was declared as the Returned Candidate.
The Appellant sought a declaration from the Election Tribunal
that the nomination papers of Respondent No.1 were invalid
inter alia on the ground that he had filed a false declaration of
assets. As such, it was prayed that the election of Respondent
Civil Appeal No.188 of 2019
.
2
No.1 was void and the Election Commission of Pakistan may
be directed to hold fresh election in the constituency (PS-11,
Larkana-II). Respondent No.1 contested the petition and filed
a written statement denying all allegations levelled in the
petition. The Election Tribunal framed as many as 7 issues
and put the parties to trial. Such trial culminated in
dismissal of the petition through the impugned judgment.
Hence, this appeal.
3.
The learned counsel for the Appellant submits
that concealment of assets by Respondent No.1 was sufficient
to warrant his disqualification and annulling his election
notification as a member of the Provincial Assembly in view of
the law laid down by this Court in the case of Speaker,
National Assembly of Pakistan v. Habib Akram (PLD 2018 SC
678). He further maintains that besides nomination papers
and false declaration, the sworn affidavit submitted by
Respondent No.1 with his nomination papers provided
additional grounds for his disqualification and also warranted
contempt proceedings against him as per declaration of this
Court in the aforenoted judgment. The learned ASC submits
that Respondent No.1 is a seasoned politician and could not
be granted the benefit of ignorance of the legal requirements
of full and truthful disclosure of assets or bona fide mis-
statement of his assets. He maintains that Respondent No.1
had not only mis-declared his own assets but also suppressed
agricultural properties/assets of his dependent children
(minor sons). He has emphasized the fact that the mala fide of
Civil Appeal No.188 of 2019
.
3
Respondent No.1 is conspicuous from a deliberate mis-
statement made by him in his nomination papers, declaration
of assets and sworn affidavit clearly inferring that he was not
an honest and sagacious person. The learned counsel further
submits that on account of his acts and omissions,
Respondent No.1 had rendered himself liable for the
constitutional disqualification as envisaged in Article 62(1)(f)
of the Constitution of the Islamic Republic of Pakistan, 1973
(‘the Constitution”) as well as provisions of the Election Act,
2017 (“the Act”) including Section 156 thereof. He maintains
that wilful concealment by Respondent No.1 having been
proved without any lawful justification for the same, there
was no burden cast upon the Appellant to establish mala
fides in the matter. He points out that the precedent cases
relied
upon
by
the
Election
Tribunal
were
entirely
distinguishable and the Tribunal fell in error in dismissing
the election petition. He further maintains that the ratio of
cases reported as Muhammad Jamil v. Munawar Khan (PLD
2006 SC 24), Khaleefa Muhammad Munawar Butt v. Hafiz
Muhammad Jamil Nasir (2008 SCMR 504), Muhammad
Ahmad Chatta v. Iftikhar Ahmad Cheema (2016 SCMR 763),
Muzafar Abbas v. Muhammad Ahmed Ludhianvi (PLD 2017
Lahore 394) and Imran Ahmed Khan Niazi v. Muhammad
Nawaz Sharif (PLD 2017 SC 692) being squarely applicable
to the case of Respondent No.1 should clearly have resulted
in his disqualification and ouster from the Provincial
Assembly. He finally submits that the judgment of the
Election Tribunal suffers from patent errors of law and runs
Civil Appeal No.188 of 2019
.
4
contrary to the settled law declared by this Court from time to
time in its various pronouncements noted above. It was
therefore unsustainable.
4.
On
the
other
hand,
learned
counsel
for
Respondent No.1 has vigorously defended the impugned
judgment. He submits that the original allegations of the
Appellant were based upon misunderstanding of the property
documents of Respondent No.1. He maintains that the only
ground urged by the Appellant before the Election Tribunal
was that Respondent No.1 just disclosed 61 acres of
agricultural land in Deh Khedkar, District Larkana whereas
he owns 140.24½ acres of land in the said Deh. In this
regard, the learned counsel submits that Respondent No.1 in
his nomination papers disclosed 61 acres of agricultural land
in Deh Khedkar, District Larkana, 622 acres in Deh Raju
Dero, District Khairpur and one Otaq/Bethak in Mohallah
Waleed, Larkana. With great vehemence, the learned ASC
submits that the explanation of Respondent No.1 for not
mentioning the remaining portion out of 140.24½ acres of
land admittedly recorded in his name in the relevant revenue
records was that a part of the remaining land approximately
16 acres had been acquired by the Government of Sindh
whereas the rest was (although nominally in his name or in
the name of his minor children) actually is in the beneficial
ownership, control and possession of his father. The learned
counsel contends that Respondent No.1 had correctly
declared the full extent of all immovable properties that are
Civil Appeal No.188 of 2019
.
5
actually in his direct ownership, control and possession. He
has not committed any illegality by not declaring the land
that was only nominally in his name but was actually and
beneficially owned, controlled and possessed by his father.
The learned counsel has drawn our attention to the relevant
land revenue bills and receipts showing that the same were
being issued and paid in respect of land in his possession,
ownership and control. The remaining land was being
cultivated by his father who was receiving revenue bills and
paying the same in relation thereto. He maintains that there
is no dispute regarding authenticity of the said documents.
The learned ASC further submits that the land in question
disclosed by him was ancestral property that devolved on
Respondent No.1 through a family settlement and any
omission to declare the same in the nomination papers could
not be fatal for his case. The learned counsel argues that
there could not have been any ill intent or motive behind the
omission of Respondent No.1 to mention the said land in the
nomination form. He maintains that Respondent No.1 had
declared 683 acres of agricultural land in his nomination
form. He would gain no conceivable incremental advantage or
benefit from hiding a few acres of land specially when the
same was admittedly not even purchased by him but devolved
on him and his children through a family settlement. He also
maintains that Respondent No.1 was contesting election for
the Provincial Assembly for the first time and was not fully
aware of the requirement to be fulfilled in declaration of his
assets. The learned ASC has emphasized that the Appellant
Civil Appeal No.188 of 2019
.
6
seeks not the rejection of a nomination paper but the voiding
of an election. Under Section 156 of the Election Act, 2017
(“the Act”), an election can only be declared void if the
nomination of the Returned Candidate was invalid or
procured or induced by any corrupt or illegal practice. He
maintains that there is a higher test than that prescribed for
rejection of a nomination paper and mere incorrectness in
any of the particulars is not sufficient to void the election. The
learned ASC maintains that in order to void an election it
must be shown that mis-statement in the nomination form is
of a kind to justify an inference of corrupt practice. It must be
established that the candidate intentionally made a false
statement/declaration or if a statement was made in the
circumstances so as to rule out the likelihood of a bona fide
error. He relies on Muhammad Hanif Abbasi v. Imran Khan
Niazi (PLD 2018 SC 189), Shakeel Awan v. Rasheed Ahmed
(PLD 2018 SC 643) and Muhammad Asif v. Muhammad
Usman Dar (2018 SCMR 2128). He finally submits that the
ratio of the judgments relied upon by the learned counsel for
the Appellant in support of his contentions is not attracted to
the facts and circumstances of the present case.
5.
We have heard the learned counsel for the parties
and examined the available record with their assistance. At
the very outset, we have noticed that Respondent No.1 did not
disclose his entire landholding in Deh Khedkar, District
Larkana which admittedly consists of 140.24½ acres. Out of
the said holding he only declared 61 acres but did not
Civil Appeal No.188 of 2019
.
7
disclose the rest which according to him had been transferred
in his name by way of a family settlement agreement executed
in 2014. He also admits that the holdings of his minor sons
were
also
not
disclosed
in
the
relevant
documents.
Respondent No.1 attempted to explain away his failure to
disclose the said assets by stating that after the demise of his
paternal grandmother, the land that stood in her name was
distributed amongst her legal heirs i.e. Munawar Ali Abbasi
and others. At that point in time, a family settlement with
regard to the entire land was entered into. In consequence,
Respondent No.1 and his minor sons received substantial
land. This was duly transferred in their respective names. It
was further submitted that only that part of the land was
disclosed in the nomination papers and other related
documents which had been transferred and was in the
possession of Respondent No.1. The rest was not disclosed
because it was under the control and supervision of his father
who was allegedly the real beneficiary of the said land. He
was supervising and overseeing its cultivation and also paying
land revenue on the same. This situation had allegedly
existed
since
the
private
partition
dated
17.10.2014.
Admittedly, the family partition was duly implemented in all
revenue records and the respective shares of all beneficiaries
of the family partition were duly reflected in all requisite
records as owners.
6.
On the basis of facts and circumstances narrated
hereinabove and in view of the admission on the part of
Civil Appeal No.188 of 2019
.
8
Respondent No.1 that there was failure on his part to disclose
certain assets, the only question requiring determination by
us is whether such disclosure was required under the law. If
so whether the explanation offered by Respondent No.1 is
legally acceptable so as to provide a defence against the
rigours of disqualification under the Election Act, 2017 and
more importantly Article 62(1)(f) of the Constitution.
7.
Perusal of the record indicates that the affidavit
filed by Respondent No.1 alongwith his nomination papers
admittedly does not disclose all assets owned by him. Form
“A” is the nomination paper whereas form “B” is the
statement of assets and liabilities, which are available on the
record. We also notice that the nomination papers are
accompanied by a declaration which is required to be sworn
under oath and was indeed sworn as such by Respondent
No.1, pursuant to a judgment of this Court in the case
reported as Speaker, National Assembly of Pakistan v. Habib
Akram (PLD 2018 SC 678). The candidates were required by
this Court to submit affidavits disclosing all assets. In
paragraph 8 of the said judgment it was clarified that failure
to file such affidavit before the Returning Officer would render
the nomination papers incomplete and liable to rejection. In
addition, if the affidavit or any part thereof was found false
then it shall have consequences as contemplated by the
Constitution and the law. The judgment also provided that
since the affidavit was required to be filed in pursuance of the
orders of this Court, if any false statement was made therein,
Civil Appeal No.188 of 2019
.
9
it would also entail such penalty as is of filing a false affidavit
before this Court. Admittedly, Respondent No.1 filed such
affidavit which was not true and was patently deficient insofar
as it failed to accurately disclose all assets of Respondent
No.1.
8.
Section 137(4) of the Act provides that where a
Member submits a statement of assets and liabilities which is
found to be false in material particulars, he may, within 120
days from the date of submission of the statement be
proceeded against for committing the offence of corrupt
practice. While it is correct that the Returning Officer has
been given the power to allow correction of mistakes, errors
and omissions in the nomination papers within a specified
time but in the instant case no attempt was made to correct
such omission at any stage.
9.
Section 156 of the Act provides the grounds for
declaring election of a Returned Candidate as void. Grounds
“a” and “c” stipulate that:
“(a) the nomination of the returned candidate was
invalid or
(c)
the election of the returned candidate has
been procured or induced by any corrupt or
illegal practice”.
10.
In terms of Section 137(4) of the Act reproduced
above, submission of a statement of assets and liabilities,
which is found to be false in material particulars constitutes
corrupt practice. More importantly, the declarations given by
Respondent No.1 under solemn affirmation as part of his
Civil Appeal No.188 of 2019
.
10
nomination papers, and the affidavit submitted by him
pursuant to the judgment of this Court in the case of
Speaker, National Assembly ibid also exposes him to
disqualification not only under the provisions of the Election
Act but also under the provisions of Article 62(1)(f) of the
Constitution. By reason of making a false statement under
oath, Respondent No.1 ceases to be qualified to be elected or
chosen as a Member of Majlis-e-Shoora (Parliament) because
he cannot be termed as righteous and honest. The false
statement having been made in the nomination papers, in the
statement of assets and in the affidavit exposes Respondent
No.1 to serious legal consequences under the law as well as
the Constitution.
11.
The learned counsel for Respondent No.1 has
taken great pains to argue that the explanation for non-
disclosure of some of his own assets and those of his minor
children to the effect that the said land although in
Respondent No.1’s name was actually under the control and
possession of his father who was the real beneficiary and was
also paying the land revenue as evidenced by receipts of land
revenue paid to the concerned authorities by his father
should be accepted by this Court. He stressed that the
explanation is reasonable and plausible.
12.
We are unfortunately unable to agree with the
contention of the learned counsel for Respondent No.1. It is
clear and obvious that:
Civil Appeal No.188 of 2019
.
11
(i)
The land in question was transferred in
favour of Respondent No.1 as far back as
2014 by way of a written family settlement
which was duly implemented in all revenue
records;
(ii)
It is not the case of Respondent No.1 that he
did not know about such transfer or that
such transfer was undertaken without his
knowledge or consent;
(iii) By reason of the family settlement and its
implementation in the revenue records, the
name of Respondent No.1 appeared and
continues to appear in all records as the
owner of the property;
(iv)
The proprietary rights, title and interest in
such property clearly vest in him;
(v)
A part of such land was admittedly acquired
by the Government of Sindh and there is no
denial
of
the
fact
that
compensation
determined by the Land Acquisition Collector
was received by Respondent No.1 as owner;
and
(vi) The fact that the father of Respondent No.1
may be administering his land as his agent
or nominee and may also be receiving the
benefits/income derived from the said land
may reflect a mutual family arrangement. It
does
not
detract
from
the
fact
that
Respondent No.1 is the owner of the said
land
which
constitutes
his
asset.
All
proprietary rights, title, ownership and
interest in the said land vest in him. He has
the power to sell, alienate and dispose of
such
properties
without
any
legal
or
Civil Appeal No.188 of 2019
.
12
procedural restriction, hitch or hindrance in
his way.
13.
The mere fact that land revenue may have been
paid by the father of Respondent No.1 also does not improve
his case. We have specifically asked the learned counsel for
Respondent No.1 who would be liable to pay land revenue
and other public dues against the said land in case there was
default in payment of the same. He has hesitatingly admitted
that the person liable to pay such defaulted amounts would
be Respondent No.1. Even in terms of provisions of Section 74
of the West Pakistan Land Revenue Act, 1967 the land
revenue and all other Government dues payable against a
particular piece/tract of land are recoverable from a person
whose name appears as owner of such land in the revenue
records. This is irrespective of who may be cultivating or
allegedly receiving its benefits as an agent or nominee of the
real owner. It is also significant to note that Respondent No.1
neither produced his father as a witness before the Election
Tribunal nor produced any other credible evidence to
establish his half hearted plea of Benami ownership, other
than revenue payment receipts which were found by us to be
insufficient to establish his plea.
14.
The learned counsel for Respondent No.1 has also
emphasized the fact that a bonafide error or mistake of fact or
law may be condoned and save a person from being hit by the
rigours of Election Laws as well as the Constitution. In this
regard, he has referred to Muhammad Asif v. Muhammad
Civil Appeal No.188 of 2019
.
13
Usman Dar (2018 SCMR 2128) and Shakeel Awan v. Rashid
Ahmed (PLD 2018 SC 643).
15.
As far as the case of Khawaja Muhammad Asif
(supra) is concerned, in paragraph 9 of the said judgment it
was held as follows:
“9.
While considering a case of dishonesty in judicial
proceedings what should not be lost sight of is that on
account of inadvertence or honest omission on the part of a
contesting candidate a legitimately acquired asset is not
declared. This may happen as an honest person may
perceive something to be right about which he may be wrong
and such perception cannot necessarily render him dishonest
though the omission would invariably result in rejection of
his nomination paper had such a fact is pointed out to the
Returning Officer at the time of scrutiny of nomination papers
or in proceedings available under the election laws. There
are many conceivable instances where an omission to
declare an asset on the face of it cannot be regarded as
dishonest concealment. For example, where an inherited
property is not declared on account of mistake of fact or an
asset acquired from a legitimate source of income is not listed
in the nomination paper. Suchlike omissions at best could be
categorized as bad judgment or negligence but certainly not
dishonesty. As mentioned earlier even the proviso to section
14(3)(d) of RoPA envisaged that rejection of a nomination
paper on account of failure to meet the requirements of
section 12 of RoPA would not prevent a candidate of contest
election on the basis of another validly filed nomination
paper. Hence mere omission to list an asset cannot be
labeled as dishonesty unless some wrongdoing is associated
with its acquisition or retention which is duly established in
judicial proceedings. In our view attributing dishonesty to
every omission to disclose an asset and disqualify a member
for life could never have been the intention of the parliament
while incorporating Article 62(1)(f) in the Constitution. All
non-disclosures of assets cannot be looked at with the same
eye. In our view no set formula can be fixed with regard to
every omission to list an asset in the nomination paper and
make a declaration of dishonesty and impose the penalty of
lifetime disqualification. In a judgment from the foreign
jurisdiction in the case of Aguilar v. Office of Ombudsman
decided on 26.02.2014 by the Supreme Court of Philippines
(G.R. 197307) it was held that dishonesty is not simply bad
judgment or negligence but is a question of intention. There
has to exist an element of bad intention with regard to an
undeclared asset before it is described as dishonest. Unless
dishonesty is established in appropriate judicial proceedings,
Article 62(1)(f) of the Constitution cannot be invoked to
disqualify an elected member for life.”
16.
It is clear from perusal of the afore-noted
paragraph that no set formula can be fixed with regard to any
omission to list an asset in the nomination papers and make
Civil Appeal No.188 of 2019
.
14
a declaration of dishonesty and impose the penalty of lifetime
disqualification. It has been held that unless dishonesty is
established in appropriate judicial proceedings, Article 62(1)(f)
of the Constitution cannot be invoked to disqualify an elected
member for life. In the same vein, in the case of Malik Shakeel
Awan (ibid), while summing up the law on this aspect of the
matter, Sh. Azmat Saeed, J (in his majority opinion) held as
follows:
“3.
Even otherwise, the present lis pertains to the validity
of a judgment of the Election Tribunal challenged through the
instant appeal under Section 67(3) of the Representation of
the People Act, 1976 (RoPA) while through the question
raised a very wide net has been cast encompassing also the
jurisdiction of this Court under Article 184(3) of the
Constitution of the Islamic Republic of Pakistan, 1973 as well
as the impact of various provisions relating to qualifications
and disqualifications of Members of the Parliament and the
Provincial Assemblies. Several of the questions raised
obviously do not arise at the lis at hand, while the other have
been answered definitively by this Court in its various
judgments.
4.
In our legal system, law evolves brick by brick and
from judgment to judgment. If the judgments pertaining to
electoral disputes rendered by this Court are carefully read,
objectively understood and the ratio thereof correctly
identified, it would be clear and obvious that principles of
law, in this behalf, appear to have been settled and
consistently applied to the facts of each individual case. The
difference in outcome, if any, is the result of difference in the
facts of each case. Such principles of law do not require any
further clarification on hypothetical considerations. The
confusion, if any, is not in the judgments.
5.
This Court, for that matter any court, seized of a lis is
required to decide the same rather than to embark upon an
academic exercise. We cannot shy away from adjudicating
upon the lis that comes before the Court without attempting
to ascertain and identify the principles of law as developed
through the interpretative process of the previous judgments
of this Court and apply the same to the facts of the case.”
17.
Therefore, we have no hesitation in holding and
reaffirming that this Court is indeed also a “Court of Law”
which can issue a “declaration” within the purview of Article
62(1)(f) of the Constitution. Any other interpretation would be
absurd and illogical. It would amount to holding that this
Civil Appeal No.188 of 2019
.
15
Court despite being the highest Court of the land is not a
“Court of Law” within the meaning of Article 62(1)(f) of the
Constitution. Surely the legislature when framing the
Constitution (Eighteenth Amendment) Act, 2010 could not
have intended to introduce such a blatant and glaring
absurdity in as important a document as the Constitution of
the country.
18.
It was further held in the said case as follows:
“13.
Where
a
misstatement
or
an
inaccuracy
or
concealment is established, the candidate/member would
always have the opportunity to offer an explanation. Such
explanation may or may not be found acceptable. Such is the
ratio of the judgment of this Court rendered in the case
reported as Sheikh Muhammad Akram v. Abdul Ghafoor and
19 others (2016 SCMR 733). In the said case, an Election
Petition filed before the Election Tribunal. In the proceedings,
it stood established that a criminal case registered against
the candidate was not mentioned in his nomination papers
as required. Such candidate offered an explanation which
was accepted by this Court by way of the aforesaid
judgment which is incidentally authorized by my learned
brother Qazi Faez Isa, J., and I too was a Member of the said
Bench. The said view i.e. in case of concealment,
discrepancy and misstatement in the nomination papers an
explanation thereof may be given by the candidate/member,
which may or may not be accepted by the court. And only, if
such explanation is found tenable no penal consequences
would follow. The question of “strict liability” does not arise
with regard to misstatements in the nomination papers. Such
view was also followed in the judgments of this Court
reported as Muhammad Siddique Baloch v. Jehangir Khan
Tareen and others (PLD 2016 SC 97) and Muhammad Hanif
Abbasi. v. Imran Khan Niazi and others (PLD 2018 SC 189).
No departure has been made by this Court in the cases
reported as Imran Ahmad Khan Niazi v. Mian Muhammad
Nawaz Sharif, Prime Minister of Pakistan/Member National
Assembly, Prime Minister’s House, Islamabad and 9 others
(PLD 2017 SC 265 and PLD 2017 SC 692). In the aforesaid
case, the concealment of assets in the nomination papers
filed by the Respondent in the said proceedings was
established through an admission. At no point of time any
explanation was offered, in this behalf. Therefore, the
question of accepting or rejecting such explanation did not
arise. Even in the Review Petition, no explanation was
offered. However, an oblique reference in hypothetical term
was only made. This aspect of the matter was dealt with
and adjudicated upon by this court in the judgment passed
on such review reported as Mian Muhammad Nawaz Sharif
and others v. Imran Ahmed Khan Niazi and others (PLD
2018 SC 1). Reference, in this behalf, may be made to para
11 of the said judgment. The relevant portion thereof is
reproduced hereunder:
Civil Appeal No.188 of 2019
.
16
11.
The argument that the omission to disclose
assets
could
possibly
be
unintentional
in
the
circumstances of the case would have been tenable
had the petitioner been a novice or a new entrant in
business and politics. But where he has been neck
deep in business and politics ever since early 80’s it is
unbelievable that he did not understand the simple
principle
of
accounting
that
his
accrued
and
accumulated salary of six and a half years was his
asset and liability of the company he was an
employee of. Even otherwise, this argument cannot be
given much weight when it has not been pleaded by
the petitioner that the omission to mention the asset
was accidental, inadvertent or unintentional. ….”
19.
It may also be noted that in the case of Malik
Shakeel Awan (ibid), the entire holding of the Respondent in
the said case had been disclosed in the form of revenue
records and other related documents and this Court came to
the conclusion that a simple mathematical exercise revealed
that as per the details provided by the Respondent in his
nomination papers at page 79 he owned 1081 kanals and 17
marlas of land and in the grand total it had been incorrectly
mentioned as 983 kanals 17 marlas. This error appeared to
have crept into the printed nomination papers. The
miscalculation between the area of agricultural land owned by
the Respondent scribed in the printed form and as mentioned
item wise in the details of the nomination papers was self
evident. Further, the Respondent in the said case perhaps
declared a little more land than as alleged by the Appellant
thus he could hardly be accused of concealing any asset
especially so as a portion of the land appeared to be
undivided share in various Khasra numbers. It was in the
peculiar circumstances of the said case that the explanation
offered by the Respondent was found to be reasonable and
logical. Consequently, the conclusion drawn by the Election
Civil Appeal No.188 of 2019
.
17
Tribunal in that case that there was no concealment of
agricultural land in the nomination papers filed by the
Respondent was found to be based upon a correct and
judicious appreciation of the evidence available on the record
and in accordance with law as laid down by this Court.
20.
As opposed to the above, in the instant case, there
was neither any accidental error nor omission in the
nomination papers of Respondent No.1 in the present case.
There was no error of calculation either. Further, the
declarations repeatedly given were given under solemn
affirmation which has its own sanctity and solemnity. The
consequence of filing a false affidavit with the nomination
papers have clearly and unambiguously been spelt out in the
judgment of this Court in the case of Speaker, National
Assembly of Pakistan (ibid). Further, the explanation offered
by Respondent No.1 neither appeals to reason nor logic
especially so where the Respondent being the scion of a well
off, educated political family and having free access to legal
advice (if he so desired) could have sought clarification of any
ambiguity that may possibly have existed in his mind,
although in our opinion there was no ambiguity either in the
law or in the specific facts and circumstances of this case. In
addition, the fact that Respondent No.1 was aware of the
extent of his ownership and the benefits of the same. He
actually received compensation in Millions of Rupees for a
portion of his holding acquired by the Sindh Government
which shows that Respondent No.1 was fully aware of his
Civil Appeal No.188 of 2019
.
18
rights, title and interest in the property and enjoyed full
freedom to exercise proprietary rights thereon without any let
or hindrance.
21.
In the afore-noted context, reference may usefully
be made to Hassan Nawaz v. Muhammad Ayub (PLD 2017
SC 70), where it was held as follows:
“7.
An honest and truthful declaration of assets and
liabilities by a returned candidate in his nomination papers
furnishes a benchmark for reviewing his integrity and probity
in the discharge of his duties and functions as an elected
legislator. His statement of assets and liabilities along with
other financial disclosures contemplated by Section 12(2) of
the ROPA provide the Election Commission of Pakistan and
the general public with a picture of both his wealth and
income. Such disclosures are crucial for demonstrating the
legitimacy
and bona fides of the accrual and
the
accumulation of economic resources by such a candidate. In
other words, the said disclosures show the returns received
from his economic- activities and can indicate if these
activities may be tainted with illegality, corruption or misuse
of office and authority. This important aspect of the financial
disclosures by a contesting candidate has been noticed by
this Court in Muhammad Yousaf Kaselia v. Peer Ghulam
(PLD 2016 SC 689).
8.
We, therefore, observe that any plausible explanation
that exonerates, inter alia, mis-declaration of assets
and liabilities by a contesting candidate should be
confined to unintended and minor errors that do not
confer any tangible benefit or advantage upon an
elected or contesting candidate. This view finds
support from the statutory aim and purpose of
requiring all contesting candidates to file their
statements and declarations as envisaged in Section
12(2) of the ROPA. Clearly there is a public interest
object behind the statutory prescription for obtaining
the said statements and declaration. It is to ensure
integrity and probity of contesting candidates and
therefore all legislators.
The above purpose and object comes across clearly in
Muhammad Yousaf Kaselia v. Peer Ghulam (PLD 2016
SC 689):
“……………………………………………………………
…………………………………………………………….. non-
disclosure of any liability is to be met with penal
action in the same manner as non-disclosure of any
asset. It is for that reason that in a number of recent
judgments,
this
Court
has
treated
inaccurate
disclosure of proprietary and financial resources to be
fatal to the election of a returned candidate. In
Muhammad
Ahmad
Chatta.
v.
Iftikhar
Ahmad
Cheema (2016 SCMR 763), the failure by a returned
candidate to disclose a presumed inactive bank
account and in Shamuna Badshah Qaisarani v.
Civil Appeal No.188 of 2019
.
19
Muhammad Dawood (2016 SCMR 1420) the omission
by a lady returned candidate to disclose her
agricultural land claimed to be transferred to her
brothers without evidence of the mutation were held to
annul their elections.”
22.
Likewise in the case of Sher Baz Khan Gaadhi v.
Muhammad Ramzan (2018 SCMR 1952), it was held by this
Court as follows:
“Constitution of Pakistan-
---Art. 63(1)(c)---Representation of the People Act (LXXXV of
1976), S. 12(2)(a)---Candidate contesting General Elections—
Nomination
papers,
rejection
of—Dual
citizenship—
Submitting false affidavit with respect to dual citizenship—
Record indicated that the respondent-candidate submitted
his nomination papers on 10.6.2018 and filed the relevant
affidavit in such regard on 11.6.2018. Two days later, he
renounced his foreign citizenship on 13.6.2018. On the day
the respondent filed his nominated papers he had not
renounced his foreign citizenship and was a foreign citizen.
Even, if it was assumed that the application of renunciation
of foreign citizenship had been filed earlier, no disclosure of
the same had been made by the respondent in the relevant
column of the affidavit. Respondent had filed a false affidavit
and made a false declaration on oath, therefore, he was
disqualified from contesting elections. Appeal was allowed
accordingly.
Constitution of Pakistan-
Art. 62(1)(f)—Representation of the People Act (LXXXV of
1976). S. 12(2)(a)---Candidate contesting General Elections —
Nomination papers, rejection of — Failure to disclose
expenses incurred on foreign travel — Affidavit that had to
be submitted along with nomination papers required a
candidate to disclose his foreign travels during the last three
years and the costs incurred thereon. Respondent-candidate
crossed out the column on the affidavit requiring details of
such travels and their costs. Report submitted before court
by the relevant Authority showed that the respondent had a
rich
travelling
history
during
the
last
three
years.
Respondent did not deny his travel history but tried to argue
that at the relevant time he was a foreign national and thus
not required to disclose his travel history. Such argument
could not be accepted by the court. Respondent deliberately
concealed his travel history in the relevant affidavit at the
time of filing his nomination papers. Respondent concealed
material facts under oath which he was required to disclose
in his nomination papers/affidavit, therefore, he was
disqualified from contesting elections. Appeal was allowed
accordingly.”
23.
In the case of Muhammad Nawaz Sharif v. Imran
Ahmed Khan Niazi (PLD 2018 SC 1), while dealing with the
similar proposition this Court held as follows:
“9.
The argument that even if it is assumed that
unwithdrawn salary constitutes an asset, omission to
Civil Appeal No.188 of 2019
.
20
disclose it involving a violation of sections 12 and 13 of the
Representation of Peoples Act calls for the rejection of
nomination papers or at its worst, removal of the petitioner
from the public office and not his disqualification in terms of
section 99(1)(f) of the ROPA and Article 62(1)(f) of the
Constitution
is
devoid
of
force
when
the
petitioner
deliberately
concealed
his
assets
and
wilfully
and
dishonestly made a false declaration on solemn affirmation
in his nomination papers. It is not something to be looked at
with a casual eye and outlook. It is not only a legal duty but
a qualifying test for the candidates who in the later days
preside over the destiny of the people. This duty has to be
performed without a taint of misrepresentation. This test has
to be qualified without resorting to unfair means. Any
concession at this stage or any leniency to the candidates or
the person elected would be a prelude to a catastrophe in
politics, which has already had enough of it. Since it is
already touching the extreme, extreme measures have to be
taken. The culture of passing the candidates by granting
grace marks has not delivered the goods. It has rather
corrupted the people and corrupted the system. This aspect
of the case has been beautifully highlighted in the case of
Rai Hassan Nawaz v. Haji Muhammad Ayub and others
(PLD 2017 SC 170) by holding as under:
7. An honest and truthful declaration of assets and
liabilities by a returned candidate in his nomination
papers furnishes a benchmark for reviewing his
integrity and probity in the discharge of his duties and
functions as an elected legislator. His statement of
assets and liabilities along with other financial
disclosures contemplated by section 12(2) of the ROPA
provide the Election Commission of Pakistan and the
general public with a picture of both his wealth and
income. Such disclosures are crucial for demonstrating
the legitimacy and bona fides of the accrual and the
accumulation of economic resources by such a
candidate. In other words, they said disclosures show
the returns received from his economic activities and
can indicate if these activities may be tainted with
illegality, corruption or misuse of office and authority.
This important aspect of the financial disclosures by a
contesting candidate has been noticed by this Court in
Muhammad Yousaf Kaselia v. Peer Ghulam (PLD 2016
SC 689).”
24.
In the case of Imran Ahmed Khan Niazi v.
Muhammad Nawaz Sharif (PLD 2017 SC 692), this Court
held as follows:
“2.
It is hereby declared that having failed to disclose his
un-withdrawn receivables constituting assets from Capital
FZE Jebel Ali, UAE in his nomination papers filed for the
General Elections held in 2013 in terms of section 12(2)(f) of
the Representation of the People Act, 1976 (ROPA), and
having
furnished
a
false
declaration
under
solemn
affirmation respondent No 1 Mian Muhammad Nawaz Sharif
is not honest in terms of section 99(f) of ROPA and Article
62(1)(f) of the Constitution of the Islamic Republic of
Pakistan, 1973 and therefore he is disqualified to be a
Member of the Majlis-e-Shoora (Parliament).”
Civil Appeal No.188 of 2019
.
21
25.
In the case of Muhammad Ahmad Chatta v.
Iftikhar Ahmad Cheema (2016 SCMR 763), the question of
mens rea or absence thereof was examined by this Court and
it was authoritatively held as follows:
“a) Representation of the People Act (LXXXV of 1976.
---- Ss. 12(2)(f) & 76A---Nomination papers, rejection of---Non-
disclosure of Bank account and properties belonging to
spouse---When the case record established that returned
candidate neither submitted statement regarding assets of
his spouse nor disclosed one of his Bank accounts at the
time of filing nomination papers, the Election Tribunal should
not have dismissed the election petition on the grounds that
mens rea was not proved and that Government exchequer
had not suffered any loss on account of such non-disclosure.
Supreme Court declared election of returned candidate as
void.”
26.
The cases decided by this Court which had
somewhat similar facts obligate a person to truthfully and
faithfully disclose all his moveable and immovable assets and
those owned by his spouse(s) and dependent(s). In this
regard, reference may be made to Shamuna Badshah
Qaisarani v. Muhammad Dawood (2016 SCMR 1420),
wherein it was held as follows:
“In the bye-election that was held for the Punjab Assembly
constituency PP-240 D.G. Khan-I, the appellant was declared
returned candidate. Her election was challenged by losing
candidate i.e. respondent No. 1 through an election petition filed in
the Election Tribunal, Bahawalpur and D.G. Khan Divisions under
section 52 of the Representation of the People Act, 1976. Corrupt
and illegal practices were alleged. During pendency of the election
petition, the respondent No. 1 moved an application under section
76A of the Representation of the People Act, 1976. This provision of
law entrusts the Election Tribunal with additional power to declare
an election of the returned candidate void if any material from any
source or information is laid before it that the returned candidate
had inter alia submitted a false or incorrect statement of assets
and liabilities of his own or his spouse or his dependents. Before
the Tribunal though the allegations of corrupt practices could not be
established however while hearing the application filed under
Section 76A of the Representation of the People Act, 1976 it
transpired that the respondent No.1 in her nomination form failed
to disclose properties such as (i) land measuring 448 kanals 4
marlas situated in Mouza Bairoot Mandhawani, Tribal District
Khazi Khan (owned by husband of the appellant) and (ii) land
measuring 263 kanals 14 marlas situated in Mora Bait Wasava
Khan Wala Tehsil and District Layyah and (iii) land measuring 13
kanals 16 marlas situated in Bait Wasava Kalroo Tehsil and
District Layyah, and (iv) land measuring 77 acres situated in
Mouza Khanwala, Wasavawala, Layyah (owned by the appellant)
were not disclosed in the nomination papers. Consequently, the
election of the appellant was declared void and fresh elections
Civil Appeal No.188 of 2019
.
22
were ordered to be held in the constituency. Against such decision,
the present appeal has been filed.
4.
The fact that certain properties were not disclosed in
the nomination papers was not denied. The only defence that
was taken was that as these properties have already been
transferred in the names of appellant's brothers, therefore,
the same were not disclosed in nomination form. It is an
admitted position that only in an affidavit it has been
disclosed that the properties have been transferred to her
brothers. At the time of filing of the nomination papers these
properties were admittedly in the name of the appellant and
her spouse in the revenue record. With regard to the legal
objection that section 76A of Representation of the People
Act, 1976 is contrary to the provisions of Article 225 of the
Constitution, the same is misconceived. Article 225 of the
Constitution clearly provides that no election to a House or
Provincial Assembly shall be called in question except by an
election petition presented to such tribunal and in such
manner as may be determined by Act of Parliament. The
Representation of the People Act, 1976 is an Act of the
Parliament, which has provided the manner in which election
is to be challenged before the Election Tribunal. The scope of
challenge, which covers the acts of corrupt and illegal
practices committed by or on behalf of the returned
candidates in the conduct of the elections, is mentioned in
Section 68 of Representation of the People Act, 1976 whereas
Section 76A grants suo motu powers to the Election Tribunal
to declare election of a returned candidate void on certain
grounds which include non-disclosure or incorrect disclosure
of assets of the candidate or his spouse or his dependents.
Under section 76A such disclosure can come from any source
before the Election Tribunal, which in the present case came
from respondent No. 1. The procedure adopted by the
respondent No.1 and entertained by the Election Tribunal in
an election petition being very much within the confines of
Article 225 of the Constitution, it cannot be said to be
unconstitutional Article 225 clearly provides that the forum to
challenge the election to a House or Provincial Assembly is
the Election Tribunal and the manner in which such
challenge is to be made is to be determined by the
Parliament and for the purposes of' the present proceedings,
the manner is provided in section 76A of the Representation
of the People Act, 1976.”
27.
In the case of Khaleefa Muhammad Munawar Butt
v. Hafiz Muhammad Jamil Nasir (2008 SCMR 504), this
Court refused to interfere in a case where the learned High
Court had disqualified a candidate for failure to declare the
amount received by him as part payment of the sale
consideration of his property in pursuance of an agreement
holding that till such time that the sale had been completed
he continued to own the property and was under a legal
obligation to disclose the same as a part of his assets.
Civil Appeal No.188 of 2019
.
23
28.
On the basis of material available on record, we
are satisfied that :
(i)
Respondent No.1 concealed his own assets as
well as those of his dependent minor children in
his nomination papers;
(ii)
He filed a false affidavit, which in itself entails
serious legal consequences. A detailed inquiry or
investigation is not required in the matter in
view
of
admission
of
non
disclosure
by
Respondent No.1. It is trite that admitted facts
need not be proved;
(iii)
We are also satisfied that there was no bona fide
mistake, mathematical error or clerical mistake
in preparing and filing the nomination papers
and the affidavit filed in compliance of the order
of this Court in Speaker, National Assembly of
Pakistan’s case ibid; and
(iv)
The
explanation
offered
for
the
admitted
concealment/misdeclaration neither appeals to
reason nor logic. We have unfortunately been
unable to persuade ourselves to accept it.
28.
After considering the arguments advanced by
learned counsel for the parties, having carefully examined the
record and the case law cited at the bar, we find that the
judgment of the Election Tribunal dated 15.01.2019 is
unsustainable and runs contrary to the ratio decidendi of the
law enunciated by this Court in the judgments cited above.
Therefore, for reasons recorded above, this Appeal is allowed
and the impugned judgment dated 15.01.2019 passed by the
Election Tribunal of the High Court of Sindh, Bench at
Sukkur is set aside. In consequence, the Election Petition bearing
No.S-01 of 2018 filed by the Appellant is accepted. It is declared
that nomination of Respondent No.1 (Moazzam Ali Khan) was
invalid. As a result, his declaration as a Member of the Provincial
Assembly of Sindh issued vide notification dated 07.08.2018
is annulled. He shall immediately cease to be a member of
Civil Appeal No.188 of 2019
.
24
the Provincial Assembly. The Election Commission of
Pakistan is directed to hold fresh elections in the
constituency (PS-11 Larkana-II) in accordance with law.
JUDGE
JUDGE
JUDGE
Announced in open Court at
Islamabad on ___________
JUDGE
| {
"id": "C.A.188_2019.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE GULZAR AHMED, HCJ
MR. JUSTICE IJAZ UL AHSAN
MR. JUSTICE MAZHAR ALAM KHAN MIANKHEL
CIVIL APPEALS NO.188 TO 193 OF 2020.
(Against the judgments dated 07.02.2018, 20.06.2019,
19.09.2019, 21.11.2019, 30.10.2019 and 24.10.2019
passed by the Peshawar High Court, Peshawar and
Peshawar High Court, Abbottabad Bench in Writ Petitions
No.2243-P/17, 4328-P/18, 1472-A/18, 4595-P/17, 3952-
P/18 and 4397-P/2019).
Province of K.P. through Chief Secretary,
Peshawar and others.
(in CAs.188, 189, 192 & 193 of 2020)
Government of K.P., Ministry of Finance through Secretary
Finance Department, Peshawar and others.
(in CA.190/2020)
Government of K.P., through Secretary Culture and Museum
Department, Peshawar and others.
(in CA.191/2020)
…Appellant(s)
Versus
Farasatullah.
(in CA.188/2020)
Muhammad Adeel Qureshi and others.
(in CA.189/2020)
Waqif Khan.
(in CA.190/2020)
Mst. Samina Behram and others.
(in CA.191/2020)
Sajid Khan and others.
(in CA.192/2020)
Raheel Ahmad and others.
(in CA.193/2020)
…Respondent(s)
For the Appellant(s):
Mr. Zahid Yousaf Qureshi,
Addl. A. G. KP.
Mian Saadullah Jandoli, AOR
(absent)
Mr. Shafiullah, Deputy Director
(Legal).
CIVIL APPEALS NO.188 TO 193 OF 2020.
2
Mr. M. Imran, Deputy Director,
Agriculture
Mr. M. Arif, L.O., Archaeology.
Tauheed Iqbal, A.D. and
M. Ilyas Khan (Sr. Statistician)
For the Respondent(s):
Mr. Khalid Rehman, ASC.
(in CA.189/20)
Mir Afzal Malik, ASC
(in CA.193/20)
M.Adeel Qureshi, Sajid Khan,
and Ehtasham (all in person)
Nemo (in other cases).
Date of Hearing:
15.07.2020.
JUDGMENT
IJAZ
UL
AHSAN,
J.-
Through
this
single
judgment, we propose to decide Civil Appeals No.188, 189,
190, 191, 192 and 193 of 2020 as common questions of law
are involved in this matter.
2.
Leave to appeal was granted by this Court vide its
order dated 02.03.2020 which for ease of reference is
reproduced below:
“Learned
Additional
Advocate
General,
KP
contends that the respondents, who were holding
the LLM Degree have claimed M.Phil allowance by
filing of a writ petition on the basis of
equivalence. He contends that such being the
matter relating to the terms and conditions of
service, the writ petition filed by the respondents
in the Peshawar High Court was patently barred
in terms of Article 212 of the Constitution and the
High Court was not competent to entertain the
writ petition. He further contends that the M.Phil
allowance was given specifically to the employees
CIVIL APPEALS NO.188 TO 193 OF 2020.
3
who
possessed
M.Phil
Degree
and
such
allowance could not have been extended to the
holders of the LLM Degree for he reason that the
concerned Notification did not provide for the
same and neither did the University Grants
Commission
nor
the
Higher
Education
Commission have any jurisdiction to grant the
benefit to the government employees, for that,
their jurisdiction is only to the extent of granting
equivalence,
and
even
after
granting
the
equivalence, whether the allowance is to be paid
or not to be paid to certain employees, only the
Government is competent to make policy on that,
which policy could not be interfered with by High
Court while exercising its writ jurisdiction.
2.
The contentions raised by the learned AAG
require consideration. Leave to appeal is granted
to consider, inter alia, the same. The appeal shall
be heard on the available record but the parties
are allowed to file additional documents within a
period of one month. As the matter relates to
service, the office is directed to fix the same
expeditiously, preferably, after three months.”
3.
The main controversy involved in these appeals
relates to notification dated 14.07.2016 issued by the
Secretary, Government of Khyber Pakhtunkhwa Finance
Department through which an allowance @ Rs.2500/- per
month was granted to the employees who held M.Phil degrees.
The said notification was challenged by the Respondents
before the Peshawar High Court praying that the Respondents
may also be granted the M.Phil allowance because they held
qualification which were equivalent to M.Phil, these included
employees having LLM degrees and MS degrees in Agriculture
etc. The High Court allowed the petitions and directed the
CIVIL APPEALS NO.188 TO 193 OF 2020.
4
Appellants to grant M.Phil allowance to all employees who
held any degree equivalent to M.Phil i.e. LLM and MS in
Agriculture from the date of acquiring such degree. The High
Court based its judgment on a letter of the University Grants
Commission (UGC) dated 23.08.2000 stating that Master of
Law degree was equivalent to M.Phil.
4.
The learned Additional Advocate General, Khyber
Pakhtunkhwa submits that in the first place University
Grants Commission and Higher Education Commission do
not have the mandate either to interpret notifications issued
by the various Governments nor to direct or advise the
Government to give financial benefits on the basis of
equivalence certificates as has been done by it vide its letter
dated 23.05.2017. He maintains that the mandate of Higher
Education Commission in terms of Section 10 of the Higher
Education
Commission
Ordinance,
2002
is
to
grant
equivalence certificates only for the purposes of determining
academic equivalence with reference to time spent in
pursuing a degree or for getting admission for further
education. Further, he maintains that even according to its
own position as reflected in its letter dated 28.11.2016 an
equivalence certificate issued by the Higher Education
Commission does not guarantee admission in a University for
further education and determination of suitability in relation
to job requirements which decision rests with the concerned
University and employing agency and that Commission has
no role in such matters. He further maintains that the law
CIVIL APPEALS NO.188 TO 193 OF 2020.
5
does not confer any power in the Higher Education
Commission to recommend payment of allowances or other
financial benefits. He argues that the learned High Court
misdirected itself and misinterpreted not only the law but also
its purpose, scope and intent and its reliance on different
certificates/letters
issued
by
the
Higher
Education
Commission in granting relief was clearly misplaced.
5.
The learned counsel for the Respondents, on the
other hands, submits that once the Higher Education
Commission
grants
an
equivalence
certificate
to
any
qualification/degree, the holder of such qualification/degree
automatically
becomes
entitled
to
grant
of
allowances/benefits which have been granted to holders of
equivalent degrees/qualifications. It is further argued that the
Governments of the Provinces of Punjab, Sindh and
Balochistan have issued similar circulars and provided
similar allowances and it is only the Government of Khyber
Pakhtunkhwa which is refusing to do so. This constitutes
discrimination and the High Court is justified in bringing the
situation at par with other Provinces.
6.
We have heard the learned Additional Advocate
General, Khyber Pakhtunkhwa as well as the learned counsel
for the Respondents.
7.
It is clear and obvious to us that the language of
impugned notification
dated
14.07.2016 is clear and
unambiguous and does not admit of any other interpretation.
CIVIL APPEALS NO.188 TO 193 OF 2020.
6
For ease of reference, the relevant portion of the notification
in question is reproduced below:
“Subject:
GRANT OF M.PHIL ALLOWANCE @
2,500/- PER MONTH.
Dear Sir,
The Competent Authority, is pleased
to decided that, all those who acquires /
possesses the degree of M.Phil recognized by the
H.E.C. shall be allowed M.Phil allowance @ 25%
of the existing amount of Ph.d allowance
(@Rs.2,500/-
per
month)
with
effect
from
01.07.2016 subject to the following conditions:
a)
M.Phil
allowance
will
not
be
admissible to those who are getting
Ph.D allowance @ Rs.10,000/- per
month.
b)
M.Phil
allowance
will
not
be
admissible
to
those
who
have
already got the benefit of advance
increments possessing on / acquiring
M.Phil degree prior to 01.12.2001
under Finance Department circular
letter
No.FD(SR-I)/1-67/82
dated
24.08.1983”.
8.
A plain reading of the notification makes its
abundantly clear:
1)
The intent of the Competent Authority is to
grant M.Phil allowance @ of existing amount
of Ph.D allowance @ Rs.2500/- per month;
2)
The allowance in question is not admissible
to those who are already getting Ph.D.
allowance @ Rs.10,000/- per month;
CIVIL APPEALS NO.188 TO 193 OF 2020.
7
3)
The M.Phil allowance is specifically meant
for persons who hold M.Phil degrees which
are recognized by the Higher Education
Commission;
4)
It
is
not
expressly
or
by
implication
mentioned in the notification in question
that the allowance will be payable to all who
hold an “M.Phil or equivalent degree”.
9.
The intent and purpose of the Competent
Authority in granting the incentive is clear and unambiguous
and there is no room to read something into the notification
which is not there. The learned counsel for the Respondents
has not been able to convince us that holders of equivalent
degrees should also be held entitled to the M.Phil allowance
which was clearly not the intention of the notification. We
notice that the High Court was called upon to interpret the
meaning and scope of the notification however it exceeded its
jurisdiction by reading additional words into the notification
which under the facts and circumstances of the present case
was neither necessary nor required.
10.
The learned counsel for the Respondents has
heavily relied on a letter dated 23.05.2017 issued by the
Higher Education Commission, the relevant portion of the
letter is reproduced below:
“4.
According
to
above
referred
Office
Memorandum of Govt. of Pakistan, Finance
CIVIL APPEALS NO.188 TO 193 OF 2020.
8
Division, the M.Phil allowance is granted to those
only who acquire/possess the degree of M.Phil
recognized by the HEC. However, in view of the
above mentioned clarification, all those who have
M.Phil or MS degrees (18 years schooling) should
be eligible to draw the allowance @ Rs.2500/- per
month”.
11.
We are at a loss to understand how and under
what authority of law has the Higher Education Commission
advised that all those who hold M.Phil or MS degrees should
be eligible to draw Higher Education Commission allowance @
Rs.2500/- per month. There is neither power nor authority
under the Higher Education Ordinance to issue any such
letter or clarification as the mandate of Higher Education
Commission is limited only to academic matters and
determining equivalence for academic reasons.
12.
We are therefore of the view that the Peshawar
High Court erred in law in relying upon letters issued by the
Higher
Education
Commission/University
Grants
Commission (defunct) which was clearly beyond its mandate
in granting relief to the Respondents.
13.
We are also not impressed by the argument
advanced by the learned counsel for the Respondents that the
notification in question is discriminatory in nature in so far
as it does not grant equal financial benefits to holders of
equivalent degrees. Further, it is discriminatory because
similar allowances have been granted by different Provinces
which have been denied to the Respondents. As far as the
CIVIL APPEALS NO.188 TO 193 OF 2020.
9
first argument is concerned, the same is misconceived. There
is intelligible differentia between holders of M.Phil degrees
and those who do not hold such degrees. Holders of M.Phil
degrees in different disciplines constitute a class by
themselves and can be granted incentives without offering
similar incentives to holders of equivalence certificates from
HEC. To hold otherwise would in effect negate and nullify the
very concept of the rule of “intelligible differentia”. A class of
employees who hold M.Phil degrees have been earmarked for
grant of an allowance which has specifically been called and
termed as “M.Phil allowance”. All those who fulfil the
requirement of the notification have been granted the
allowance and are entitle for the same. It is not the case of the
Respondents that some of them have M.Phil degrees and have
been refused or that the employees holding degrees other
than M.Phil have been allowed the such allowance. In the
absence of the aforenoted situations the argument of
discrimination must fail.
14.
As far as the second argument in support of
discrimination that similar allowances are being offered in
other Provinces is concerned, the Respondents have produced
some notifications issued by the Governments of Punjab and
Government of Sindh to support their contention. However,
perusal of the notifications produced before us shows that the
language and terminology used in the said notifications is
materially and substantially different from the one used in
the notification issued by the Government of Khyber
CIVIL APPEALS NO.188 TO 193 OF 2020.
10
Pakhtunkhwa which is under challenge before us. There
being no similarity between the two sets of notifications, the
question of discrimination and the arguments in support
thereof is misconceived. Even otherwise, if certain actions
have been done in a certain Province(s) within the powers
available to them under the Constitution, it is not necessary
that the same be replicated in all other Provinces. Reference
in this regard may usefully be made to S.M.C. No.15 of 2010
and C.M.As. Nos.2689, 3244 of 2010 and CMAs. Nos.5383,
3068 of 2011 (Suo Motu action regarding Regularization of
the Contract Employees of Zakat Department as well as
appointment of Chairman of Central Zakat Council (2013
SCMR 304) wherein it was held as follows:
“17. As regards the question of discrimination, it
may be pointed out that each Province is
empowered and entitled to make its own decision
regarding the subjects that fall within their
respective domain in accordance with their own
circumstances. A decision by one Province
another regarding the matter cannot be cited as
ground for discrimination if another Province does
not take the same decision. To hold otherwise
would be an intrusion into the provincial economy
of the Provinces. Now that the subject of Zakat
and Ushr is within the domain of the Provinces, it
is up to each Provincial Government to decide the
terms and conditions of the petitioner’s services”.
15.
We are therefore in no manner of doubt that the
Peshawar High Court incorrectly dealt with the question of
treating letters issued by the Higher Education Commission
as the very basis for its direction for payment of M.Phil
CIVIL APPEALS NO.188 TO 193 OF 2020.
11
allowance to other employees whose degrees had been
declared equivalent in academic terms to an M.Phil degree.
Such interpretation is clearly against the intent, purpose and
plain language of the notification which could not have been
done and the High Court clearly exceeded its jurisdiction in
doing so. Further, having not found any discrimination on
any of the grounds asserted by the learned counsel for the
Respondents, we are of the view that the judgment of the
High Court is not sustainable on that ground either.
16.
For the reasons recorded above, these appeals are
allowed and the judgments dated 07.02.2018, 20.06.2019,
19.09.2019, 30.10.2019, 24.10.2019 and 21.11.2019 of the
Peshawar High Court are accordingly set aside.
17.
Above are the reasons of our short order dated
15.07.2020. For ease of reference, the short order is
reproduced below:
“We have heard the learned counsel for the parties so also the
respondents who have appeared in person. We are informed by
Court Associate that all respondents are served. The respondents
who have not appeared are proceeded ex-parte. For reasons to be
recorded, these appeals are allowed and the impugned judgments
passed by the High Court are set aside.”
Chief Justice
Judge
Judge
ISLAMABAD.
15.07.2020.
Zubair/*
‘Not Approved For Reporting’
| {
"id": "C.A.188_2020.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
PRESENT:
MR. JUSTICE MIAN SAQIB NISAR
MR. JUSTICE SH. AZMAT SAEED
MR. JUSTICE MUSHIR ALAM
CIVIL APPEAL NO.1890 OF 2002
(Against the judgment dated 24.8.2001 of the High
Court of Sindh, Karachi passed in Constitution Petition
No.D-1807/1999)
Government of Sindh through Secretary & Director General, Excise &
Taxation and another
…Appellant(s)
VERSUS
Muhammad Shafi etc.
…Respondent(s)
For the appellant(s):
Mr. Qasim Mirjatt, Addl. A.G. Sindh
For respondent No.1:
Mr. M. Bilal, Sr. ASC
For respondent No.3:
Mian Qamar-uz-Zaman, ASC
Raja Abdul Ghafoor, AOR
Date of hearing:
16.03.2015
JUDGMENT
MIAN SAQIB NISAR, J.- This appeal, with the leave of the
Court dated 23.12.2002, involves two primary propositions, namely:-
a)
Whether under Section 4(a) of the Urban Immovable Property Tax Act, 1958,
the property owned by the Evacuee Trust Property Board which is in
possession of respondent Muhammad Shafi, is exempted from the tax?
b)
Whether the learned High Court had rightly applied the principle of law
discussed by this Court in the case of Mehran Associates Ltd. Vs.
Commissioner of Income Tax, Karachi {(1992) 66 Tax 246(S.C.Pak)}?
C.A.1890 of 2002 & C.M.A.776 of 2003 (1)
-: 2 :-
2.
Brief facts of the case are:- the property(ies) in question
bearing Nos. RC 1/12 and RC 10/12 were admittedly owned by
respondent No.3/Evacuee Trust Property Board (The Board). The Board
leased out these properties to respondent No.1, Muhammad Shafi, for
a period of 30 years with the right to raise superstructure (construction)
over the said land/plot and to let out the constructed property (the
property). And upon expiry of the lease period, such constructed
property was to revert back to the Board, forming part of its
ownership.
The appellant is the property tax department, which claims
property tax on the property on the ground that as the property has
been leased out by the Board, therefore it does not fall within the
exemption category, as has been provided (granted) to the Federal
Government properties under the law. This action/demand of the
appellant when challenged by respondent No.1 has been declared
contrary to law by the learned High Court vide impugned judgment
dated 24.8.2001. Leave in this case was granted on the two points,
referred to in the preceding part of this judgment.
3.
In order to appreciate the arguments made before us, it is
expedient to reproduce the provisions of Sections 3 and 4 of Urban
Immovable Property Tax Act, 1958 (The Act) and the clauses 1, 2, 3, 9,
11, 13 and 16 of the lease agreement dated 30.7.1983 (the lease deed)
which read as under:-
Relevant sections of the Act
“3.
Levy of tax. (1) Government may by notification specify urban
areas where tax shall be levied under this Act.
Provided that one urban area may be divided into two or more
rating areas or several urban areas may be grouped as one rating
area.
(2) The tax shall be charged, levied and collected at the rate of
twenty percent of the annual value of the lands and buildings.
C.A.1890 of 2002 & C.M.A.776 of 2003 (1)
-: 3 :-
(3AA)The tax under sub-section (2) shall also be levied and
collected on buildings and lands used partly or exclusively for
industrial purposes in the industrial areas of Dhabeji Gharo and Kotri
as are within urban area.
[(3B)*****]
[(4) *****]
(5)
The tax shall be due from the owner of buildings and
lands.
4.
Exemptions.— The tax shall not be leviable in respect of the
following properties, namely:—
(a) buildings and lands, other than those leased in perpetuity, vesting
in the Federal Government;
(b) buildings and lands other than those leased in perpetuity.
(i) Vesting in any Provincial Government and not
administered by a local authority;
(ii) Owned or administered by a local authority when used
exclusively for public purposes and not used or intended to be
used for purposes of profit;
(c)
. . . . . . . . . . . . . . . . . . . . . . . .
(d)
. . . . . . . . . . . . . . . . . . . . . . . .
(e)
. . . . . . . . . . . . . . . . . . . . . . . .
(f)
. . . . . . . . . . . . . . . . . . . . . . . .
(g)
. . . . . . . . . . . . . . . . . . . . . . . .
Relevant clauses of the lease deed are:-
(1)
That the lease money payable by the Lessee has been fixed on
the basis of assessment of rent made in the year 1964 at Rs.
4,000/- per month subject to enhancement by 25% after every
five years. (Increase in rent)
(2)
That the lease period is 30 years with effect from 30th July,
1983 after the expiry of this period the property alongwith the
superstructure etc. shall vest in the Lessor and become the
property of the Evacuee Trust Property Board without
payment of any compensation whatsoever to the Lessee. The
C.A.1890 of 2002 & C.M.A.776 of 2003 (1)
-: 4 :-
period of lease can be extended by the Lessor for another
period of 30 years on such terms and conditions as laid down
by the Lessor and agreed upon by the Lessee. (fixed term and
return of property)
(3)
That the Lessee shall pay the lease money at the rate of
Rs.4,000/- per month with effect from 1.1.1964 and the arrears
shall be paid by the Lessee in 36 monthly installments.
(9)
That the Lessee shall be entitled to raise new construction
(Commercial/residential, permissible) on the plot but only
with the prior approval of the Chairman, Evacuee Trust
Property Board, and the local competent authority.
(11)
That the Lessee shall have no right to sublet or sublease the
demised property or any portion thereof except with the prior
approval of the Administrator concerned and the period of
lease/tenancy so granted shall not exceed the period of lease
specified in this Agreement i.e. 30 years. The Administrator
shall decide the question of approval within seven days.
(13)
That the Lessee shall have no right to mortgage, alienate or in
any manner encumber the property except the right granted by
the Agreement of Rent our or Lease out the premises.
(16)
That in case of breach of any of the conditions as aforesaid
the lease shall be liable to be cancelled by the Lessor and the
eviction shall be caused under the provisions of the Evacuee
Trust Properties (Management and Disposal) Act, 1975.
(termination clause)
4.
It has been argued by the learned Additional Advocate
General, Sindh that as the lease deeds, executed for an initial period of
thirty years, could also have been extended for a further period of
thirty years, the lease of the property to respondent No. 1 was, in fact,
a lease in perpetuity and, therefore, the tax was leviable thereupon. It
is submitted that the property vested in respondent No.1/lessee, who
has raised his own superstructure, and consequently, the view set out
C.A.1890 of 2002 & C.M.A.776 of 2003 (1)
-: 5 :-
by the Courts below that it falls within the exempted properties is
erroneous and illegal.
The learned counsel for respondent No. 3/Board, however, by
making reference to Section 6 of the Evacuee Trust Properties
(Management and Disposal) Act, 1975 and also Article 165 of the
Constitution of the Islamic Republic of Pakistan, 1973 has submitted
that Provincial legislation cannot levy tax upon the properties owned
by the Federal Government.
5.
Heard. Before resolving the proposition(s) in hand, we may
like to mention that the charging section in a fiscal statute, as per the
settled law, demands its strict interpretation and application in so far
as the revenue is concerned, but where it is susceptible to two possible
interpretations, it should be liberally construed in favour of the tax
payer/citizen; particularly, where there is substantial doubt about the
true import and application of a charging section, it (the doubt) should be
resolved in favour of the tax payer/citizen1. Anyhow, from the relevant
provisions of the Act, provided above, there seems wee room for
holding otherwise than that the properties which are owned by the
Federal Government are exempted and thus cannot be subjected to
property tax. In the instant case, it is not disputed by the appellant
that the property is owned by the Board and if it was not leased out
(allegedly in perpetuity), it would fall within the ambit of the Federal
Government properties and shall be exempted from property tax under
Section 4 of the Act.
6.
The ancillary proposition which would arise in the matter
shall be, whether the properties in question have been leased out by
respondent No.3 to respondent No.1 in perpetuity or not as it has
1 (1992) 66 Tax 246 SC Pak
C.A.1890 of 2002 & C.M.A.776 of 2003 (1)
-: 6 :-
been specifically mandated in Section 4 that the exemption shall not
be available to those property(ies) which have been given in perpetuity
even by the Federal Government.
7.
In order to explore whether the present lease is a lease in
perpetuity, we have examined the provisions of the Act and find that
neither it defines the same (lease in perpetuity) nor any other part of it
throws some light on this subject. Therefore, in order to ascertain the
meaning and the concept thereof, we have looked at the Transfer of
Property Act, 1882 (TPA), which is the general law dealing with, inter
alia, the subject of leases. In this law, lease has been defined in
Section 105 of the TPA, which reads as:-
“A lease of immovable property is a transfer of a right to enjoy
such property, made for a certain time, express or implied, or in
perpetuity, in consideration of a price paid or promised, or of
money, a share of crops, service or any other thing or value, to be
rendered periodically or on specified occasions to the transferor
by the transferee, who accepts the transfer on such terms.”
With respect to how a lease is made, Section 107 of the TPA prescribes
as below:-
“107. Leases how made. A lease of immovable property from
year to year, or for any term exceeding one year, or reserving a
yearly rent, can be made only by a registered instrument.
All other leases of immovable property may be made either by
a registered instrument or by oral agreement accompanied by
delivery of possession.
Where a lease of immovable property is made by a registered
instrument, such instrument or, where there are more instruments
than one, each such instrument shall be executed by both the lessor
and the lessee:
Provided that the Government may, from time to time, by
notification in the [official Gazette], direct that leases of
C.A.1890 of 2002 & C.M.A.776 of 2003 (1)
-: 7 :-
immovable property, other than leases from year to year, or for any
term exceeding one year, or reserving a yearly rent, or any class of
such leases, may be made by unregistered instrument or by oral
agreement without delivery of possession.”
8.
In Section 105 ibid, though there is a mention of a lease in
perpetuity, we feel handicapped and are unable to ascertain its true
meaning as neither the exact connotation thereof, nor the concept,
factually and/or legally, of such lease (lease in perpetuity) can be spelt out
and unfolded therefrom. Thus for the purposes of elucidating and
comprehending such a lease, it shall be appropriate to give the key
word/expression perpetuity, its ordinary meaning. Franklin language
master (dictionary) defines it as endless time, eternity, the quality or the
state of being perpetual. According to Oxford Dictionary, perpetuity
means, the State or quality of lasting forever. The expression
perpetuity has been defined in the Black’s Law Dictionary as “the state of
continuing forever; an inalienable interest; an interest that does not take effect or vest within
the period prescribed by law”.
9.
From the above, it is clear that the word perpetuity,
without much difficulty and improvisation, can also be construed in
the sense of permanence and therefore a lease in perpetuity can be
held to be a transaction of immovable property which is irreversible or
non-returnable. But the question is how it should be ascertained and
adjudged if a particular lease is in perpetuity or otherwise. To our
mind, in this regard, no precise criteria can be fixed. This is so
especially for the period prior to the coming into force of the TPA and
the Registration Act, 1908, because in those days (prior to the two
enactments) leases were usually made orally and due effect was given in
the revenue record in different expressions. The determination of the
aforementioned question for leases executed during such time, thus,
C.A.1890 of 2002 & C.M.A.776 of 2003 (1)
-: 8 :-
would revolve around the terms and conditions orally settled between
the parties and so proved, including the interpretations of the entries
in the revenue record, the conduct of the parties while dealing with the
property, the object and the nature of the lease including the
entitlement of the lessee to raise structure over the property and also
the terms relating to the payment of rent and its periodical
enhancement thereof etc. Multiple factors would be relevant in this
regard (note: in view of and subject to the provisions of Section 117 of the TPA, this opinion
should not be construed to relate to agricultural properties; even otherwise the subject matter
of the present case is Urban Properties and, therefore, we are confining ourselves to that
effect only).
After the enforcement of the two enactments referred to above,
however, the question of determination of whether a lease is one in
perpetuity or not stands simplified. Section 17 of the Registration Act
ibid mandates certain instruments to be compulsorily registerable and
Sub-Section (d) of Section 17 provides in the list of such documents “a
lease of immovable property from year to year, or for any term exceeding one year, or
reserving a yearly rent”. The effect of non-registration of such instruments
is provided by Section 49 of the Registration Act in the manner:-
“49.
Effect of non-registration of documents required to be
registered. No document required to be registered under this Act
or under any earlier law providing for or relating to registration
of documents shall –
(a)
operate to create, declare, assign, limit or extinguish,
whether in present or in future, any right, title or interest
whether vested or contingent, to or in immovable
property, or
(b)
confer any power to adopt, unless it has been registered.”
Similarly it is clear from Section 107 of TPA that a lease of any
property beyond one year could only be effected by a registered
instrument (note:- subject to the exemption qua other leases orally made coupled with
C.A.1890 of 2002 & C.M.A.776 of 2003 (1)
-: 9 :-
delivery of possession). This is the express and unequivocal mandate of
the law. It is settled principle of law that where law requires an act to
be done in a particular manner, it has to be done accordingly and not
otherwise. At this point, we may also add that if an act is done in
violation of law, the same shall have no legal value and sanctity,
especially when the conditions/circumstances which may render such
an act invalid have been expressly and positively specified in law (see
Section 49 ibid).
10.
Be that as it may, to further shed light on the above
proposition, we deem it proper to discuss relevant legal material and
case law available on the subject and to start with, the comments
made in the book titled Transfer of Property Act, 9th Edition by Mullah;
(a renowned law scholar and researcher of the Subcontinent) may be referred to. The
author while dealing with the subject opines:-
“Leases in perpetuity. – In India, such a lease is created either by
an express grant or by a presumed grant. Such leases are
generally agricultural leases or they are leases executed before
the Transfer of Property Act. As s 107 of the Transfer of Property
Act excludes the Agricultural lease from the operation of the Act.
Express grant
Words which suffice by themselves to import permanency
are – miras or mirasdar; mourasi; mulgni; nirantar; patnr, so
also, words indicative of a heritable grant such as Ba Farzandan
or Naslan bad Naslan. The words istemari mourasi mokurari in a
lease mean permanent and heritable. The tenancy created by a
taluka putta is presumed to be permanent unless there are
indications to the contrary in the surrounding circumstances.
On the other hand, the following words are not per se
sufficient to import permanency of tenure Paracudi and Ulavadi
Mirasidar; Mokarari; Istemari Mokarari; Kyam and Saswatham
Mukkaddami. But these words do not exclude the notion of
permanency, and when they occur, their effect is a matter of
construction having regard to the other terms of the instrument,
C.A.1890 of 2002 & C.M.A.776 of 2003 (1)
-: 10 :-
the object of the lease, the circumstances under which it was
granted and the subsequent conduct of the parties. Such
considerations may show that a bemiadi lease, that is, a lease
without, a term, is a permanent lease. Where a contract of lease
provided that the tenant was to continue in possession as long as
he paid rent, it was a tenancy for the lifetime of the tenant and not
a permanent tenancy.
But a tenancy, though permanent in its inception, ceases
to be permanent, if the tenant executes rent deeds for a specified
period and admits his ability to ejectment and enhancement of rent
(emphasis supplied by us).”
In the commentary on TPA by Shaukat Mehmood, while
analyzing various case laws, mostly from Indian Jurisdiction, the
author has remarked as under:-
“Where the terms of a lease showed that if was (a) a lease for
building purposes; (b) it was to enure, in the first instance for a
period of thirty years; (c) the lessee had a right to continue to
enjoy all the rights under the lease even after the expiry of the
initial period of thirty years; (d) the rent was fixed and the lessor
had no right to increase it in any manner; (e) the rights of the
lessee were heritable and transferable and the lessee was allowed
to construct a pucca structure thereon and even after the death of
the original lessee his heirs were allowed to continue without
demur and rent was accepted from them. It was held that in view
of the terms of the lease as a whole and taking into account the
conduct of the parties, the lease was intended to be a permanent
lease.”
In a case reported as Lala Suraj Bhan and others Versus Hafiz
Abdul Khaliq (AIR 1941 Lahore 195) it has been held “even if the
tenancy is at its inception a permanent tenancy, it becomes no longer a permanent
tenancy if the tenant or his predecessor-in-title executes rent deeds for specified
periods of time and admits his liability to ejectment and enhancement of rent”. (See
also AIR 1927 PC 102, which has relevance to the point).
C.A.1890 of 2002 & C.M.A.776 of 2003 (1)
-: 11 :-
In Bejoy Gopal Mukherji Versus Pratul Chandra Gose (AIR
1953 SC 153), it has been held:-
“The question of permanency of the tenancy was not, therefore,
directly or substantially in issue. We find ourselves in agreement
with the High Court that the permanency of tenure does not
necessarily imply both fixity of rent and fixity of occupation. The
fact of enhancement of rent in 1859 may be a circumstance to be
taken into consideration but it does not necessarily militate
against the tenancy being a permanent one, as held by the Privy
Council in the case of an agricultural tenancy in Shankarrao v.
Sambhu, A.I.R. 1940 P.C. 192(B). The principle of that decision
was applied also to non-agricultural tenancies in Jogendra
Krishna v. Sm. Subashini Dassi, A.I.R. 1941 Cal. 541(C). In
Probhas Chandra v. Debendra Nath, 43 Cal. W.N. 828 (D) also
the same view was taken. We, therefore, hold that the plea of res
judicata cannot be sustained.
[4] Shri N. C. Chatterjee then contends, relying on the
decisions in Rasamoy Purkait v. Srinath Moyra, 7 Cal. W. N. 132
(E); Digbijoy Roy v. Ata Rahman, 17 Cal. W. N. 156(F);
Satyendra Nath v. Charu Sankar, A.I.R. 1956 Cal. 100(G) and
Kamal Kumar v. Nanda Lal, A.I.R. 1929 Cal. 37(H) that the
tenancy in this case cannot be regarded as a permanent one. The
decisions in those cases have to be read in the light of the facts of
those particular cases. The mere fact of rent having been received
from a certain person may not, as held in 7 Cal. W. N. 132(E)
(supra) and 17 Cal. W. N. 156 (F) (supra), amount to a
recognition of that person as a tenant. Mere possession for
generations at a uniform rent nor construction of permanent
structure by itself may not be conclusive proof of a permanent
right as held in A.R.P. 1929 Cal. 37 (H) (supra) but the cumulative
effect of such fact coupled with several other facts may lead to the
inference of a permanent tenancy as indicated even in the case of
A.I.R. 1936 Cal. 100 (G) (supra) on which Shri N. C. Chatterjee
relies.”
In Bastacolla Colliery Co. Ltd. Versus Bandhu Beldar and
another (AIR 1960 Patna 344), it was held that the mere fact that a
building has been erected on a leased land and portions of the same
C.A.1890 of 2002 & C.M.A.776 of 2003 (1)
-: 12 :-
have been sold off to others who also have built structures thereupon
will not enable Court to hold the lease to be one in perpetuity. In the
same judgment, it was held that if the meaning of the words used in
the deed is not ambiguous, the Court has to confine itself to the words
used in the lease instrument for deciding in support or otherwise of a
permanent lease.
From our jurisdiction, we have a judgment reported as Abdul
Hafeez alias Bacha Meah Versus Arshad Ali Chaudhry and others
(PLD 1967 Dacca 145), in which it has been held:-
“It is evident from the terms of the lease, as stated above, that it is
a lease for a fixed term and not a lease in perpetuity. A lease in
perpetuity is unknown to English law. In this country a lease in
perpetuity can be created by an express grant to that effect or by a
necessary presumption raised by the terms of a grant and by an
unambiguous and long possession. In this particular case there
can be no manner of doubt that the lease was for a fixed period
and not a lease in perpetuity within the meaning of the Transfer of
Property Act.”
In Dr. Aman Ullah Khan Versus Province of NWFP through
Secretary, Finance, Government of NWFP Peshawar and 2 others
(1994 MLD 2329), where a time had been fixed for the determination
of lease, it was ordained that such (lease) cannot be said to be a lease in
perpetuity in the following terms:-
A “lessee in perpetuity” in the light of the actual connotation of
the word and also in light of Dictionary meaning of the word
perpetuity, means and refers to a state of being perpetual; endless
time: duration for an indefinite period; something lasting for ever;
an agreement whereby property is tied up, or rendered
inalienable, for all time or for a very long time. The petitioner-
plaintiff seems to be intelligently advised when one looks at the
rent deed or deeds on file which he executes with the Municipal
Committee for a period of one year only. By no stretch of any
C.A.1890 of 2002 & C.M.A.776 of 2003 (1)
-: 13 :-
possible imagination the rent deed executed by the petitioner can
be termed as deeds of a “lease in perpetuity”……So far as his
construction of the superstructure is concerned, this by itself does
not make him an absolute owner. It was for the Municipal
Committee to have made him, through writing a “lessee in
perpetuity” of the land as well as the superstructure. Only then
Dr. Amanullan petitioner would be or would have been liable to
pay the tax of the land as well as the superstructure, being “lessee
in perpetuity” and hence owner within the meanings of section
2(e) and 3(3) of the Act (Urban Immovable Property Tax Act,
1958).”
11.
From the analysis of the legal material on the subject and
the case law, referred to above, we are of the considered view that no
hard and fast rules can be laid down so as to determine what exactly is
a lease in perpetuity and the answer to this question depends upon
the facts and circumstances of each case. But we have conspicuously
noticed one single most important factor in relation to this subject
matter which is that in none of the materials/decisions have the
provisions of the TPA or the Registration Act been adverted to or the
effect of such mandate of law been considered. But these provisions
unmistakably, in our opinion, are of great importance and relevance
and are foundational for determining whether a lease is one in
perpetuity or otherwise.
From the reproduced part of the two statutes above, it is
abundantly and unequivocally clear that no lease in Pakistan (note:
subject to Section 117 of the TPA and leaving aside for the time being even Section 17 (d) of
the Registration Act relating to agricultural properties) can be effected beyond the
period of one year except by a registered instrument and if any lease is
not so accomplished, it has no legal validity and sanction beyond the
period of one year and would neither create nor purport to create any
lease for the period exceeding one year (see Section 49 ibid). Therefore, on
C.A.1890 of 2002 & C.M.A.776 of 2003 (1)
-: 14 :-
account of this clear mandate and compulsion of law, no lease which
is not in consonance with these imperative provisions can at all be
said or held to be permanent in nature under any circumstances
whatsoever. It shall be ridiculous and ludicrous to conceive and hold,
on account of the said law, that a lease which is for a period of less
than one year is one in perpetuity only for the reason that the
instrument of lease or even verbal stipulation between the parties
enables the lessee to raise some structure of permanent nature or the
lease is capable of being renewed or could be further transferred to a
third party.
12.
Therefore, in our view, if the lease is through an
unregistered instrument, there is no question at all about it being in
perpetuity. But where it has been created by a registered lease
document, determination of whether it is permanent in nature or not,
will depend on the interpretation of the lease deed. Such interpretation
shall obviously be done keeping in view the known rules for the
interpretation of the statues as a contract between the parties is a
piece of private legislation and the primary function of the law is
facultative leaving the parties to make their own contract on terms of
their choice. It is treated as a piece of private legislation and the
function of the Court is merely to resolve a dispute arising between the
parties for the actual operation of the contract2.
Therefore from the language of the lease document, when it is
clear that the tenancy is for a fixed period of time, even if it (the deed)
contains a clause for renewal, but such renewal is left at the option of
the lessor, the lease cannot be held to be permanent in nature. The
fact that the lessee has been allowed to raise construction over the
2 Interpretation of Contract, Second Edition by M.A. Sujan
C.A.1890 of 2002 & C.M.A.776 of 2003 (1)
-: 15 :-
property of a permanent nature and to even sub-let/sublease the same
specifically where the same is subject to the consent/approval of the
lessor, by itself shall not be a factor for holding a lease to be one in
perpetuity.
It may be pertinent to mention here, that for construing a
contract of lease in ascertaining its permanency or not, object for
which the lease has been granted shall also be germane and
important. Where a lease of the property has been given by the lessor
to the lessee for a particular and a specific purpose, but no time is
fixed, for all intents and purposes it shall be an object specific lease,
which means that the purpose/object should be considered as the
time/period fixed by the parties for the determination of the lease and
thus the moment the purpose is achieved and accomplished, the
purpose shall be held to have extinguished (come to an end). Therefore, the
lease which at its very inception may have been perceived to have
some overtones of permanency in its nature, regardless of whether a
period has been fixed or not, such lease even if construed to be
permanent on the basis of its object/purpose initially, shall
automatically come to an end when the object of the lease is
extinguished; even if the lessee under the terms of lease has raised the
construction as such structure shall either be treated as an accretion
to the original leased out property and would go to the lessor or the
lessor has to compensate the lessee for such construction, but this
depends upon the facts and circumstances of each case and on the
basis of the terms and conditions settled between the parties.
The point which needs emphasis is:- that once the purpose of
the lease is finally achieved and the purpose for which the property
was leased out comes to an end, the lease which may at its inception
C.A.1890 of 2002 & C.M.A.776 of 2003 (1)
-: 16 :-
have some colors of perpetuity shall also end with it and the lease
shall then be rendered to be that of “holding over” entitling the landlord
to determine/terminate the lease and ask for the vacation of the leased
property.
13.
Now, reverting to the facts and circumstances of the
present case, for the purposes of evaluating if the lease in question is
perpetual or otherwise. We have conspicuously noticed that in clause
2 of the lease deed, the period of lease has been mentioned to be thirty
years with effect from July, 1983 and on the expiry of the lease period
the superstructure raised by the lessee (respondent No.1) shall vest with
the Board without payment of any compensation whatsoever to the
lessee. This condition is quite cardinal and pivotal for determination of
the nature of the lease, in that, it is not perpetual, rather the return of
the superstructure in the ownership of the Board makes the lease in
the nature of a Build, Operate and Transfer (BOT) contract.
Besides, respondent No.1 is not free to raise construction at his
own free will, but only with the prior approval of the Chairman. The
subletting/sub-lease of the constructed property has also been
subjected to the approval of the concerned Administrator and in any
case, such sub-lease cannot travel beyond the period of thirty years
i.e. the original lease period. The rights of the lessee have been
restricted in that, he shall neither mortgage nor alienate or encumber
the leased out property. Moreover, it is clearly and unequivocally
stipulated that breach of any of the conditions of the lease shall make
the lease liable to be cancelled at the prerogative of the lessor and the
lessor shall have authority to evict the lessee under the provisions of
Evacuee Trust Properties (Management and Disposal) Act, 1975.
C.A.1890 of 2002 & C.M.A.776 of 2003 (1)
-: 17 :-
When all these stipulations of the lease deed are read as a
whole, these militate against the concept of lease in perpetuity. Only
for the reason that there is a clause for renewal for a further period of
thirty years, regardless of whether renewal has been factually granted
or not, which otherwise seems to be the exclusive privilege of the
Board and respondent No.1 cannot claim it as a matter of right, this
lease cannot be held to be one in perpetuity. We are thus of the
considered view that the instant lease inter se the Board and
respondent No.1 is not in perpetuity and, therefore, the appellant has
no lawful authority to demand/levy property tax from the said
respondent in terms of the provisions supra.
Besides the judgment reported as Mehran Associates Ltd. (supra)
is distinguishable on its own facts. It may be pertinent to mention here
that in the same, the question of ownership of lease property was
being considered, conceived and dilated upon in light of the law on
income tax and not vis-à-vis the specific provisions of Section 4(a) and
the concept of lease in perpetuity which has been now elucidated
comprehensively in this opinion.
14.
Before parting with this judgment, it may be mentioned
that as we have decided this appeal on points having nexus to the
leave granting order, we therefore deliberately refrained ourselves from
making any comments regarding points raised by the learned counsel
for the Board in relation to Section 6 of the Evacuee Trust Properties
(Management and Disposal) Act, 1975 and also Article 165 of the
Constitution of the Islamic Republic of Pakistan, 1973 which (points)
shall be considered in some other appropriate case. Moreover, this
opinion shall also neither apply nor be relevant for the grants and the
leases pertaining to and made in the cantonment areas, or border
C.A.1890 of 2002 & C.M.A.776 of 2003 (1)
-: 18 :-
areas etc., as we do not have the privilege and advantage of examining
such transactions and the relevant law, the rules and the policies
applicable thereto and under which those (leases) have been given.
15.
In light of the law discussed above, we do not find any
merit in this appeal, which is hereby dismissed.
JUDGE
JUDGE
JUDGE
Announced in open Court
on
at
Approved for reporting
Ghulam Raza/*
| {
"id": "C.A.1890_2002.pdf",
"url": ""
} |
In the Supreme Court of Pakistan
(Appellate Jurisdiction)
Present:
Mr. Justice Anwar Zaheer Jamali, HCJ.
Mr. Justice Amir Hani Muslim
Mr. Justice Iqbal Hameedur Rahman
Civil Appeal No. 194-P of 2010
(on appeal from the judgment of Peshawar High Court,
Peshawar, dated 24.11.2008 passed in C.R No.1575/2004)
Mst. Saadia
…Appellant
VERSUS
Mst. Gul Bibi
…Respondent
For the appellant:
Mr. Abdul Sattar Khan, ASC.
Mr. M. Ajmal Khan, AOR.
For the respondent:
Mr. Muhammad Shoaib Khan, ASC.
Mr. Muhammad Zahoor Qureshi, AOR.
Date of hearing:
15.12.2015
JUDGMENT
Anwar Zaheer Jamali, C.J. – In respect of a house as
detailed in the heading of the plaint in Suit No.32/1, bearing No.923,
situated at Mohallah Shah Faisal Kochi Bazar, Chowk Nasir Khan,
Peshawar City (hereinafter referred to as “suit house”), on 21.1.2002,
respondent through her brother and special attorney had instituted a
suit for declaration and permanent injunction against the appellant
with the following prayer:-
)ا( � ىر� ك�ا ن� �� � ر� �� � را�ا ى�دٰ923 ب�ا � ً�� تادو� ہدو�
و ��� ن� ل� ہ��� ��� �ا� ��� ��ا � ن� ً�� � � � ن� ��� ،� �� �ار�������ًً��
�������
ن� ��� ك� راز�� �� � ہ�� � �او فؤ�ا���� ہر� ��� �� �و�� � �رو� ����
C.A No.194-P/2010.
2
2/8/1995
�� �ا � � �او روا � �� � ��� ن� � � �� روا � ��� و �����
۔� � ز� � �� ��� ��� و �� � ��� ن� � د� � ر� � �����
)ب ( � �� �اود ���ا � رو� دا� ى�د���
ٰ ��� و �� � ��� ن� � د� ہو � ر� �� � �� ف���
۔�ر ع� و ز�� � �� �ا� �د � �� � � سا روا �� �����
2.
The claim of respondent in respect of the suit house was
based on two gift deeds dated 21.7.1986 and 02.8.1995, Ex.PW-1/1 and
PW-1/2 respectively. As per the earlier gift of 1986, purportedly Mst.
Fehmida Begum wife of Abdul Majeed Khan, who owned the suit
property through registered deed dated 17.1.1977, had gifted the suit
house to her brother Mirza Rab Nawaz, who was husband of the
respondent, while by second gift deed dated 02.8.1995, said Mirza Rab
Nawaz had purportedly gifted the suit house in favour of his wife, the
respondent.
3.
In her written statement, the appellant categorically
denied such claim of respondent and disputed the genuineness of both
the purported gift deeds produced and relied upon by the respondent
to establish her title over the suit house. She also disclosed other
relevant facts about the legal heirs/brothers of Mst. Fehmida Begum,
and her own relationship with the respondent, being her only paternal
niece (daughter of her deceased husband’s brother). The appellant
further disputed the maintainability of the suit on various legal grounds,
as shown in the plaint.
4.
Upon divergent pleadings of the parties, as noted above,
the trial Court of learned Civil Judge, Peshawar, framed six issues, out of
which issue No.5 was the crucial issue for determination, which related
C.A No.194-P/2010.
3
to the genuineness or otherwise of the two purported gift deeds Ex-
PW1/1 and PW1/2, relied by the respondent to claim her exclusive title
over the suit house.
5.
At the stage of evidence, the respondent had examined
five witnesses including herself while the appellant had examined only
her mother in law and attorney. Besides, another witness was
examined by the Court as CW-1/1, who was the handwriting expert, to
whom Ex-PW1/1 and some other documents purportedly bearing
signatures/thumb impression of Mst. Fehmida Begum were sent for
comparison of her signature/thumb mark over Ex-PW1/1.
6.
The Civil Judge, Peshawar at the conclusion of proceedings
in the suit, vide judgment dated 30.7.2004 decreed the suit in favour of
respondent. This judgment was challenged by the appellant through an
appeal under section 96, CPC filed before the Court of 2nd Additional
District Judge, Peshawar on 29.9.2004, which was dismissed by the first
appellate Court vide its judgment dated 18.11.2004.
7.
These concurrent findings of the two Courts below were
then challenged by the appellant in Revision Petition No.1575/2004,
filed before the Peshawar High Court, Peshawar on 15.12.2004, which
was finally heard and dismissed vide impugned judgment dated
24.11.2008. Against these concurrent findings of the three Courts
below, when Civil Petition for leave to appeal was filed by the
appellant, leave was granted in terms of the order dated 06.4.2010,
which reads as under:-
C.A No.194-P/2010.
4
“A suit for declaration and perpetual injunction was filed by
Mst. Gul Bibi (respondent) against Mst. Saadia (the petitioner).
Respondent/plaintiff on the basis of un-registered Hiba claimed to be
owner in possession of the suit property. Also pleaded that
petitioner (real niece of the real owner of the house) had no right or
interest in view of Hiba. Contesting written statement was filed by
the petitioner. Issues were framed. Evidence was recorded by the
learned trial Judge. The suit was decreed and appeal of the
petitioner-defendant was dismissed. Her Civil Revision also failed
before the High Court. Hence the present petition for leave to
appeal.
2.
Learned ASC for the petitioner raised the following
questions:-
(i)
As to whether the two Hiba namas could be legally
relied upon without due registration in accordance
with Section 17 of the Registration Act. And as to
whether un-registered Hiba-namas were admissible
under Section 49 of the Registration Act ibid;
(ii)
Whether the learned Courts below should have legally
examined the above questions even if petitioner had
failed to properly raise the same in her written
statement or in the memo of appeal; and
(iii)
As to whether the respondent/plaintiff succeeded in
proving execution of Hiba namas and making of Hiba
thereof in terms of law;
3.
The above questions require consideration, leave is granted.”
8.
We have heard the arguments of learned ASC for the
appellant. He has briefly stated relevant facts of the case forming
background of this litigation, particularly with reference to the legal
heirs of Mst. Fehmida Begum, wife of Abdul Majeed, the original owner
of suit house vide registered deed dated 17.1.1977, who died issueless,
having five brothers, Mirza Mushtaq, Mirza Nisar, Mirza Abdul Latif,
Mirza Nazir Ahmed and Rab Nawaz. Learned ASC submitted that out of
C.A No.194-P/2010.
5
them, three had died issueless, while it was only Mirza Nisar, the fourth
brother, who had one daughter Mst. Saadia, the present appellant, who
was minor at the time of death of Mst. Fehmida Begum. But in order to
deprive her of her legitimate claim in the suit house, being the only
descendant from the brothers of Mst. Fehmida Begum, two fraudulent,
fabricated and forged gift deeds were prepared/managed. He argued
with vehemence that surprisingly both these deeds were attested by
four witnesses each, but except one, no other marginal witness of the
gift deeds Ex-PW1/1 was examined nor it had been registered to give
some credibility or authenticity as to the time of execution of such gift
deeds, which could otherwise be easily fabricated and prepared at any
time after the demise of original owner Mst. Fehmida. As regards the
possession of suit house, he argued that possession of the suit house all
along remained jointly with the family of Mst. Fehmida Begum till her
death and thereafter with her brothers, including the father of the
appellant, when she was a minor, therefore, question of delivery of
possession also remained unproved. He further argued that judgments
of all the three Courts below suffer from misreading and non-reading of
evidence, so much so, that even the original Hibanamas Ex-PW1/1 and
PW1/2 were not proceeded before the Court to prove their
authenticity, whereas the witnesses were confronted with their
photostat copies, which were not admissible in evidence, irrespective of
the fact whether any objection to this effect was raised or not.
C.A No.194-P/2010.
6
9.
Conversely, the learned ASC for the respondent strongly
supported the concurrent findings of the three Courts below on the
plea that there was no instance of any misreading or non-reading of
evidence and the two documents i.e. Exhibit PW1/1 and PW2/2, being
not objected to, were also proved in accordance with law. He further
argued that there was ample evidence available on record to show that
Mirza Nisar, father of the appellant, maintained strained relations with
Mst. Fehmida, the original owner of suit house, therefore, she had
gifted the suit house exclusively in the name of her other brother, Rab
Nawaz vide Gift Deed dated 21.7.1986. However, when the learned ASC
was confronted with the contents of the two Gift Deeds i.e. Exhibit
PW1/1 and PW2/2, he did not dispute that both these documents were
unregistered and the respondent has no plausible explanation for
seeking their attestation from four witnesses for each, out of whom
only one relating to Ex-PW1/1 Hakeem Alauddin was examined, but
even he did not confirm the signature or thumb impression of Mst.
Fehmida over the alleged Gift Deed. He further conceded to the
position that no document regarding the death of other attesting
witnesses of these documents were placed on record to support the
oral assertion of respondent that they all had died before the stage of
evidence in the suit.
10.
We have carefully considered the arguments advanced by
the learned ASCs for the parties and perused the material placed on
C.A No.194-P/2010.
7
record including the original R&Ps of Suit No.3271 of 2002. According to
the admitted facts of the case Mst. Fehmida was the exclusive owner of
the suit house through registered Sale Deed dated 17.1.1977. She had
five brothers, Mirza Mushtaq, Mirza Nisar, Abdul Latif, Nazeer Ahmed
and Rab Nawaz, and she died issueless. Although, no exact date of her
death has come on record, but one thing is clear that before the
institution of declaratory suit by the respondent in the year 2002, the
two purported Gift Deeds in her favour had not seen the light of the
day in any manner/government record. In addition to it, as per
admission of the respondent in her statement before Court, except
Mirza Nisar all other brothers of late Mst. Fehmida used to live in the
suit house till her death somewhere in the year 1989-90. Moreover,
PW/2 Muhammad Younus, who is stated to be the marginal witness of
Exhibit PW1/2, had also clearly affirmed the fact that the purported gift
in favour of the respondent allegedly made by her husband, Rab Nawaz,
was not signed by him in presence of any person. Further scrutiny of
evidence adduced by Respondent reveals that admittedly appellant was
the only surviving legal heir of Mst. Fehmida from her five brothers, she
was minor at the time of her death and when she became major and
agitated her claim over the suit house, respondent came out with the
story of two Gift Deeds to legitimize her exclusive claim over the suit
house. A man may lie but circumstances do not. In our opinion, the
pleadings of the parties and the evidence brought on record from both
the sides reveal that judgments of all the three Courts below suffer
C.A No.194-P/2010.
8
from patent misreading and non-reading of evidence inasmuch as the
Courts failed to appreciate the true effect of non-production of original
gift deeds alongwith the plaint as per the requirement of Order VII, Rule
14, CPC, even at evidence stage, and non-examination of attesting
witnesses of the two Gift Deeds. More so, when the evidence of PW/1,
PW/2 and PW/3, was also of no help to the case of Respondent to
prove the authenticity or genuineness of the documents Exhibit PW1/1
and PW2/2, who respectively deposed as under:-
PW-1 Hakeem Allauddin:
“Mst. Fehmeeda Khatoon was ill and was lying on bed. After three-four days
of my visit Rabnawaz brought a written document duly thumb impressed
and signed by Mst. Fehmeeda Khatoon and thereafter I alongwith the other
marginal witnesses signed the same. Rabnawaz had got the signed
document individually at different time from the marginal witnesses.”
PW-2 Muhammad Younas:
“Rabnawaz has not signed the said document before me but the signature
marked-A is his signature as I am well acquainted with his signature.”
PW-3 Muhammad Sherin:
“It is correct that Rabnawaz has not signed the deed in my presence.
Volunteered that he had already signed the same.”
11.
Beside, the evidence of these three witnesses the evidence
of other two witnesses i.e. PW-4 Gul Bibi/respondent and PW-5 Shah
Nadir further reveal that they were interested witnesses installed for
the purpose of justifying the execution and genuineness of the two
documents i.e. Ex-PW1/1 and PW1/2. However, they also failed as their
evidence was not confidence inspiring enough to prove the execution of
these two documents. Similarly the evidence of Hand Writing Expert
was of no avail as all the documents sent to him; firstly, came from the
C.A No.194-P/2010.
9
possession of the respondent; secondly, the comparison of Photostat
copies with the originals was not warranted by law; and lastly such
exercise was not a conclusive proof about the genuineness of Ex-
PW1/1. We, therefore, find much force in the arguments of the learned
ASC for the appellant that concurrent findings of the three Courts
below suffered from misreading and non-reading of evidence, which
resulted in miscarriage of justice to the appellant, thus open to
interference.
12.
At the cost of repetition, we may observe that the claim of
respondent over the suit house is based on and subject to the validity of
both documents Exhibit PW-1/1 dated 21.7.1986 and PW-1/2 dated
02.8.1995, thus, the execution of these two documents was to be
proved independently. In other words even if the execution of first
document Exhibit PW-1/1 was presumed as valid and genuine, still the
validity and genuineness of the other document Ex.PW-1/2 was to be
proved independently, but the respondent did not even bother to
produce this original document in Court.
13.
Had it been a case of genuine gift in favour of respondent
then there was no justification for the respondent to withhold
production of these documents for such a long period before filing the
suit against the appellant when all the attesting witnesses as per her
claim except PW/1, have expired. In this regard, mere oral assertion of
the Respondent about the death of attesting witnesses of the two
C.A No.194-P/2010.
10
documents had not absolved her of the legal burden to prove their
death with some documentary evidence or atleast by examining some
other independent witnesses in this regard. It also smacks of some foul
play that instead of following usual practice of having two attesting
witnesses of documents Ex-PW1/1 and PW1/2, these documents
contained attestation by four witnesses at a time and for this reason
too possibility of manipulation/substitution/subsequent addition of
other two witnesses cannot be ruled out.
14.
Indeed, if a document in the form of memorandum of gift
has been executed between the parties (donor and donee) as an
acknowledgment of past transaction of oral gift, its non-registration will
not have much bearing as regards its authenticity or validity, but the
other important thing is the proof of fulfillment of three conditions of a
valid gift “offer”, “acceptance” and “delivery of possession”. Reverting
to the facts of the present case, we find that neither PW-1 Hakeem
Alauddin, who was the only witness of first gift document Ex-PW1/1,
had said anything about the fulfillment of these three conditions of gift
between the parties in his presence, nor the other two witnesses, PW-2
Muhammad Younas and PW-3 Muhammad Sherin of second gift
document Ex-PW1/2 have deposed, whether the performance of these
ingredients of gift, oral or otherwise, had taken place in their presence.
Even the evidence of PW-4 Mst. Gul Bibi in this context is hearsay as
regards the first document of gift and shaky to the extent that in her
C.A No.194-P/2010.
11
deposition, she has admitted that atleast three other brothers of Mst.
Fehmida Begum, Mirza Mushtaq, Mirza Abdul Latif and Mirza Nazir
Ahmed, continued to live in the said house till their death. To sum up,
virtually not a single witness from the side of respondent validly proved
the performance of these three prerequisites for a valid transaction of
gift in respect of the suit house.
15.
The upshot of the above discussion is that this appeal is
allowed in terms of the short order already passed in this case.
Peshawar,
the 18th December, 2015.
Approved for reporting.
��ا���
Chief Justice
Judge
Judge
| {
"id": "C.A.194-P_2010.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE MIAN SAQIB NISAR
MR. JUSTICE IQBAL HAMEEDUR REHMAN
MR. JUSTICE MAQBOOL BAQAR
CIVIL APEAL No.194 OF 2015
(Against the judgment dated 03.3.2015
passed by the Election Tribunal, Hyderabad
in Election Petition No.3 of 2013)
Jam Madad Ali
…
Appellant
Versus
Asghar Ali Junejo and others
…
Respondents
For the appellant:
Mr.Makhdoom Ali Khan, Sr.ASC
Mr.Tariq Aziz, AOR.
For respondent No.1:
Dr. Farough Nasim, ASC
Mr. Mahmood A.Sheikh, AOR
Date of hearing:
12.11.2015
JUDGMENT
MAQBOOL BAQAR, J.- The appellant, through the
instant appeal, has challenged the judgment dated 03.3.2015
passed by the learned Election Tribunal, Hyderabad (‘the Tribunal’)
whereby Election Petition No.3 of 2013 preferred by respondent
No.1 (‘the respondent’) was allowed and the respondent was
declared returned candidate from PS-81, Sanghar-IV.
2.
The relevant facts of the case, in brief, are that the
appellant contested election from the above constituency and
having received 35,548 votes won the election held on 26.6.2013.
Respondent, the runner-up, received 34,175 votes. On 28.6.2013,
the respondent made an application to the Returning Officer
(“R.O”) for a re-count in respect of thirty (30) polling stations
specified therein, on the grounds that his Polling Agents were
forcibly removed from various polling stations particularly from the
CA 194/15
2
said thirty (30) polling stations which were situated in the areas
dominated by the appellant, and that the concerned Presiding
Officers (“P.O.”) did not perform their duties regarding the conduct
of the vote count, and no action was taken by them on the
complaint of the respondent, though in terms of section 38(1) of
the Representation of the Peoples Act, 1976 (“the ROPA”), the P.Os.
were required to count the votes in presence of the candidate’s
polling agents. It was pointed out that the statements of count do
not bear the signatures of the respondent’s polling agents as
required under section 38(13) of the ROPA. The application was
dismissed by the R.O. through order dated 28.6.2013. The R.O.
after counting the votes and consolidating the result declared the
appellant as the returned candidate. Notification to such affect was
issued by the Election Commission of Pakistan (“ECP”) on
01.7.2013. On 02.7.2013 the respondent filed an application for
re-count under section 39(6) ROPA before the ECP.
3.
On 28.8.2013, the respondent through the afore-noted
election petition challenged the result of the above election before
the Tribunal and sought order, inter alia, directing the ECP to
carry out a recount in respect of the said thirty (30) polling
stations, on the grounds that the appellant in collusion with the
officers of the ECP, the Local Administration and, the Arm Forces
deputed to monitor the bye-election resorted to illegal and corrupt
practices and rigged/manipulated the electoral process in his
favour. It is specifically alleged that the polling agents of the
respondent were removed from the polling stations and were
prevented from participating in the vote count and consolidation of
the result. No notice as required under section 39 of the ROPA was
issued by the R.O. The provisions of the ROPA were violated by the
concerned functionaries. That rejected votes were counted as valid
CA 194/15
3
votes in favour of the appellant and that the votes polled at a
number of polling stations were more than the votes assigned to
those polling stations. The election results are infested with
interpolation.
4.
Through his written statement, the appellant denied
the various allegations contained in the petition. Through order
dated 16.9.2013, the ECP, in view of the pendency of the above
election petition and at the request of the respondent disposed of
the re-count application with an observation that the Tribunal
shall dispose of the petition expeditiously. On 16.1.2014, the
respondent filed an application before the Tribunal seeking a
recount of the votes from the aforesaid thirty (30) polling stations
under section 46 of the ROPA. The application was resisted by the
appellant who filed a counter-affidavit thereto. By order dated
03.6.2014, the Tribunal allowed the application and ordered the
recount to be conducted by the District Returning Officer
(“DRO”)/the District and Sessions Judge, Sanghar, along with the
Returning Officer and a nominee of the ECP. After concluding the
re-count, as mandated, the DRO submitted his report, which
report disclosed that a large number of ballot papers/votes
recovered from the envelopes of the valid votes of the appellant and
the respondent, bore double seals/stamps, rendering such
votes/ballot papers invalid, leading to their exclusion in the
recount. It also disclosed that a good number of the polling bags
and the envelopes containing votes were found to not have been
properly sealed, and that a substantial number of the envelopes,
containing the votes of the two candidates in various polling bags
were torn. On 26.8.2014, the appellant, in view of the above
observations contained in the report, made an application to the
Tribunal to summon the DRO, R.O., and the Presiding Officers of
CA 194/15
4
the said thirty (30) Polling Stations, and also sought production of
all the votes casted at the above polling stations along with the
relevant Form XIV, and certain correspondence between the R.O.
and the concerned Deputy Commissioner and the Mukhtiarkar for
securing the premises where the aforesaid election record was
stored. Through order dated 21.10.2014, the Tribunal, whilst
disposing of the said application, summoned only the DRO and
declined to summon the other officers. The DRO appeared before
the Tribunal and produced his report. He was cross-examined by
the appellant as well as by the respondent. Whereafter the
appellant filed an application for sending the ballot papers rejected
during the recount for forensic test, so that it may be verified as to
whether same or different ink and/or seals have been used for the
two impression found on each of the rejected ballot paper. The
Tribunal, however, dismissed the application. The appellant and so
also the respondent examined only themselves, they did not
produce any other witness. After hearing the parties, the Tribunal
through the impugned judgment accepted the respondent’s
election petition and declared him as the returned candidate.
5.
Mr. Makhdoom Ali Khan, the learned Sr. ASC for the
appellant submitted that the impugned judgment is solely based
on the re-count carried out by the DRO in pursuance of the
Tribunal’s order dated 03.6.2014. He submitted that in the facts
and circumstances of the case, the Tribunal ought not to have
exercised the power under section 46 of the ROPA for recount of
the ballots, as such could have been done only on the basis of
some prima facie evidence justifying the exercise of power under
the said provision. Whereas in the present case, the application
was granted prematurely, without recording any evidence justifying
the recount. He submitted that to allow a recount as a matter of
CA 194/15
5
course tantamounts to permitting a rowing inquiry. The learned
counsel further submitted that even where the result of a recount
may be founded on authentic, reliable and unadulterated material,
and which result may essentially entail consequences of altering
the earlier count/result, such result also be taken into
consideration as being of any consequence, only where the recount
has been conducted in pursuance of an order of the Tribunal
which meets the criteria for such order as prescribed by this Court.
He emphasized that no recount can be ordered, unless at least a
prima facie case is made out on the basis of evidence recorded by
the Tribunal. However, neither was/is any evidence or even any
material available in this case which could have justified a recount
nor the result/findings of the recount/inquiry could even
otherwise be relied upon and/or made basis for the impugned
judgment. Elaborating his arguments Mr. Khan submitted that the
vote count in favour of the appellant has been reduced by
excluding the ballot papers/votes bearing double stamps/seals,
one over the appellant’s election symbol and the other on that of
some other contestant. However, there is admittedly no evidence to
show that the second stamp was affixed at the time the polling was
carried, and that it was not done after announcement of the result.
He submitted that it is wholly inconceivable that double stamping
on such a massive scale, would go unnoticed by the polling staff
and/or the contesting candidate and/or their agents, and such
ballots would be counted and secured as valid votes without a
demur. Mr. Khan further submitted that in the facts and
circumstances of the case heavy onus lay on the respondent to
prove that in fact the double stamping occurred at the time of
casting the ballot and not after the polls. He argued that proving
the allegation of double stamping at the time of polling/casting
CA 194/15
6
became all the more necessary for the reason that never at any
stage before the recount the respondent alleged any double
stamping. In fact absolutely no complaint was made either by the
respondent or any of his polling or election agent regarding any
double stamping and/or any other malpractice during the polling
or in respect of the entire election process, till the time he made an
application to the Returning Officer for the recount on 28.6.2013,
even in the said application also and till the conclusion of the
recount the respondent did not allege any double stamping. As to
the respondent’s allegation that his agents were removed from the
polling stations and not allowed to participate in the vote count or
the consolidation of the result, the learned counsel submitted that
the same is evidently incorrect and unfounded as admittedly
neither any complaint was made by anyone nor has any material
been placed on record to show that any such complaint or protest
in any manner was made. Mr. Khan further submitted that in
order to prove that his agents were prevented from participating in
the vote count and its consolidation and/or that the double
stamping in fact occurred during the polling, the respondent ought
to have examined the concerned Presiding Officers and should
have summoned the relevant record for scrutiny, however, far from
doing so, the respondent in order to prevent the Tribunal from
coming to the right conclusion regarding the manipulation carried
out by him and/or on his behest, even resisted the appellant’s
application for summoning the concerned POs and RO and also
the application for seeking forensic testing of the ballot papers
containing double stamps/seals. The learned counsel submitted
that the appellant through his letter dated 04.7.2012 expressed his
apprehension regarding such tampering/manipulation and has
requested the R.O. to secure the record, however nothing was done
CA 194/15
7
to prevent the tampering and to secure the record. In order to show
that the strong room of the sub-treasury Khipro where the relevant
record including the ballots papers was stored, was not a fully
secured place, the learned counsel referred to the letter dated
26.7.2014, addressed by Sr.Civil Judge, Khipro, the concerned
R.O., to the Deputy Commissioner, Sanghar, whereby he sought
immediate repair of the ventilator of the strong room, which as
noticed by the RO, at the time of storing back the relevant record
after the recount, was without the necessary penal/shutter, and
the cavity was blocked only by placing loose bricks therein. Mr.
Khan submitted that in fact, as noted by the R.O. in presence of
the parties and/or their representatives, not only a good number of
ballot bags were found unsealed or improperly sealed, but a large
number of envelopes containing the valid votes were either without
seals or were torn. He submitted that although the respondent
alleged that his polling agents were removed from the polling
stations but has not even filed any authorization letter issued by
him in favour of his purported polling agents and has failed to
furnish any list of polling agents and that out of the two agents
whose names the respondent disclosed, he filed affidavit of only
one but did not produce even that single agent. In support of his
contention that recount of the votes secured in an election can
only be allowed by the Tribunal where evidence making out a
prima facie case for a recount is recorded, not otherwise, relied
upon following judgments:
KANWAR EJAZ ALI VS. IRSHAD ALI AND 2 OTHERS
(PLD 1986 SC 483)
SARDAR
ABDUL
HAFEEZ
KHAN
VS.
SARDAR
MUHAMMAD TAHIR KHAN LONI AND 13 OTHERS
(1999 SCMR 284)
6.
On the other hand, Mr. Farough Nasim, the learned
counsel for respondent No.1 submitted that in the facts and
CA 194/15
8
circumstances of the case, the order for recount as passed by the
learned Tribunal was/is the only order that could have been
lawfully passed on the respondent’s application. He submitted that
the contents of the election petition as well as the respondent’s
application for the recount, spelt out valid grounds which were
adequately supported by relevant material. He submitted that the
count and the consolidation of the election result in the absence of
the respondent and his election/polling agents is clearly violative of
the mandate of sub-section (1) and (2) of Section 38 of the ROPA
which requires such presence and that the PO shall provide
reasonable facility to the contesting candidates and their agents to
observe the count. He further submitted that although in terms of
sub-section 13 of Section 38 of the ROPA, the POs were required to
obtain signatures of the candidates or his election/polling agent on
the statement of the vote count, however not a single such
statement
bear
any
signature
of
the
respondent
or
his
polling/election agent which clearly show that the counting and
the consolidation of the result has been conducted in their
absence. Mr. Nasim further submitted that no notice of the day,
time and place fixed for consolidation of the result was served on
the respondent or his agents, and thus by preventing/avoiding the
presence and the participation of the respondent and his agent,
the polling staff in collusion with the appellant massively tampered
the ballot papers and manipulated the election result as discovered
during the recount which clearly revealed that invalid votes
bearing double stamps were counted and secured in favour of the
appellant, thus giving him an undue edge/margin over the
respondent and turning his defeat into a victory against the
respondent. The learned counsel submitted that it is wholly
contrary to the settled principle and our jurisdictional norms to
CA 194/15
9
argue that a recount can be ordered by the Tribunal only on the
basis of some evidence recorded by it. He submitted that neither
such is the requirement under the relevant provisions of law nor is
it in consonance with the principles of equity, fair play and justice
and
the
same
also
militates
against
the
principle
of
reasonableness. He referred to section 38(5)(b) of the ROPA which
empowers the PO to conduct recount either on his own motion or
upon the request of the contesting candidate where such request is
not unreasonable, and submits that reasonableness is the only
criteria laid down by law for the recount. He submitted that
similarly in exercise of its powers under section 46 of the ROPA, a
Tribunal also can order a recount where doing so is found
reasonable by the Tribunal, and as to whether it would be just,
proper and reasonable to allow a recount, can be decided keeping
in view as to whether adequate statement of material fact along
with supporting prima facie material has been furnished. Whereas
in the present case, the respondent not only furnished adequate
statement of material fact in his memo of appeal as well as in his
application for the recount to the RO as noted earlier, but also
annexed photocopies of a bulk of the relevant statement of count
(Form XVI) which purport to show that at various polling stations
100% of the votes assigned thereto were purportedly casted and
counted and at some stations the counting as recorded in the said
statements was more than 100% of the assigned votes. He
submitted that in addition to the above, in a number of form XIV
though absolutely no votes were shown/recorded in favour of any
of the candidates however strangely the total count of the casted
votes was recorded in hundreds. Whereas in a good number of
statements of count/form XIV, interpolation/re-writing in the
relevant column/relevant figure of counts of the votes is clearly
CA 194/15
10
visible. He submitted that in the face of such material refusal of
recount would have been wholly illegal, unjust and unfair and the
Tribunal was thus not left with any choice but to order recount. In
order to substantiate his above allegation regarding the anomalies,
discrepancies and interpolation reflected in the statement of
count/form XIV, the learned counsel referred to copies of various
such forms. In support of his contentions that recording of
evidence justifying the recount is not always essentially required
by the Tribunal to order recount. Mr. Nasim referred to and relied
upon following cases:-
MEHR KHALIQ YAR KHAN VS. CH. GHAYAS
AHMAD MELA AND OTHERS (2011 CLC 1515)
T.A. AHAMMED KABEER VS. A.A.AZEEZ AND
OTHERS (AIR 2003 SC 2271)
BHABHI VS. SHEO GOVIND AND OTHERS (AIR
1975 SC 2117)
7.
Heard the learned counsel for the parties and perused
the record with their assistance.
8.
The basic questions involved in this case are, firstly as
to whether the order dated 03.6.2014 passed by the learned
Tribunal for recount of the votes was lawful, appropriate and
justified in the facts and circumstances of the case and secondly,
as to whether the report submitted by the DRO in pursuance of the
above order furnished adequate/lawful basis for declaring the
appellant’s election as void and for declaring the respondent as the
returned candidate in place of the appellant.
9.
The purpose of a recount in an election dispute is to
verify and determine the authenticity and truthfulness of the
allegations on the basis whereof the election result is challenged,
however, in order to secure the sanctity of the election result and
with a view not to encourage the loosing candidates to attempt to
frustrate the will of the people as expressed through the election
and also in order to avoid creating an incentive for the loosing
CA 194/15
11
candidates to in any way, indulge in post poll tampering or
manipulation of the election record, a conscious effort is to be
made that it is only in the circumstances which clearly justify,
rather demand a recount, that the recount is allowed. As to what
should be the criteria or the essential pre-requisites for satisfying
the conscience of the Court for permitting a recount, perusal of the
case law laying down our jurisprudential principles in this regard,
would show that the minimum criteria is that there should be
specific allegation of tampering, manipulation and maneuvering in
very clear terms along with the necessary details and prima facie
material supporting such allegations. It should also be kept in
mind that secrecy of the ballot should not be violated on the basis
of frivolous, vague and totally unfounded allegations and that the
primary object should be to do full justice in the matter. The
learned Tribunal should also be mindful that the discretion to
exercise power of recount may not be exploited for a roving inquiry
to fish out material for reversing the election or for declaring it void
and thus it should be seen that as to whether in view of the
statement of material fact, and the material placed before the
Tribunal the request is fair and reasonable or not.
10.
We have perused the judgments relied upon by the
learned counsel for the parties have noted that in the case of
Kanwar Ejaz (supra) the only ground urged before this Court was
that the difference of votes between the successful candidate and
the runner-up (appellant) was of just 707 votes whereas the
allegation of the appellant that his polling agents were not allowed
to sit at the polling stations and one sided votes were casted in
favour of the winning candidate in their absence, was rejected by
the Tribunal and the Tribunal also held that no corrupt practice
was established against the respondent and that the allegations
CA 194/15
12
contained in the application for recount were found to be vague. It
also seems that the order rejecting the application for recount was
also founded in the fact that though evidence was adduced before
the Tribunal however the appellant could not establish any
allegation made in support of his request for recount. This court
thus expressed agreement with the observations of the election
Tribunal that the request for recount was not reasonable and
upheld its rejection.
11.
In the case of Sardar Abdul Hafeez Khan (supra), this
Court, whilst observing that section 46 of the ROPA confers an
inclusive and wide discretion on an Election Tribunal to order
opening of packets of counterfoils and certificates or the inspection
of any counted ballot papers, held that Tribunal should have some
basis for taking such recourse to its exclusive and essentially
discretionary power under the said provisions, opening the way to
a recount. Thus, it would be for the petitioner in the election
petition to lead initial evidence for the Tribunal to take resort to
power under the said provision. It is only then that the Tribunal
may summon the relevant record and examine the corresponding
official witnesses at the petitioner’s behest, unless, of course, the
Tribunal is acting Suo Motu in the midst of the petition, something
which does not appear to be precluded.
It can thus be seen that recording of evidence is not
essentially required by a Tribunal to pass an order for a recount as
the Tribunal may on its own also order a recount.
12.
In the case of Sahibzada Muhammad Nazeer Sultan v.
Saima Akhtar Bharwana and others (PLD 2007 Lhr 141) referred to
in the case of Mehr Khaliq Yar Khan (supra) the learned Lahore
High Court laid down that the power to order recount is to be
exercised by the Tribunal on the basis of some material prima facie
CA 194/15
13
establishing illegalities and irregularities in the count of the polled
votes and further that such power of the Tribunal is quite exclusive
which it is to be exercised sparingly after satisfaction of the
material/evidence that there had been wrong inclusion and
exclusion of the ballot papers in the count.
13.
In the case of Bhabi (supra), the Supreme Court of
India laid down the following criteria for permitting a recount in an
election matter:-
“15.
Thus on a close and careful consideration of the
various authorities of this Court from time to time it is
manifest that the following conditions are imperative before
a Court can grant inspection, or for that matter sample
inspection, of the ballot papers:
(1) That it is important to maintain the secrecy of the ballot
which is sacrosanct and should not be allowed to be
violated on frivolous, vague and indefinite allegations;
(2) That before inspection is allowed, the allegations made
against the elected candidate must be clear and specific
and must be supported by adequate statements of material
facts;
(3) The Court must be prima facie satisfied on the materials
produced before the Court regarding the truth of the
allegations made for a recount;
(4) That the Court must come to the conclusion that in order
to grant prayer for inspection it is necessary and imperative
to do full justice between the parties;
(5) That the discretion conferred on the Court should not be
exercised in such a way so as to enable the applicant to
indulge in a roving inquiry with a view to fish materials for
declaring the election to be void;”
14.
The present case, however, does not meet the criteria
as prescribed through the afore discussed pronouncement. Firstly,
neither the memo of the election petition, nor the application for
recount contain any specific allegation of tampering and/or
manipulation against the appellant, nor any prima facie material
supporting the allegations justifying the request for recount was
furnished. The memo only contained generalized allegations of
illegal and corrupt practices and rigging/manipulation of the
electoral process. There is also a vague allegation that the polling
CA 194/15
14
agents of the respondent were removed from the thirty (30) polling
stations for which recount was requested, however, there again no
details were spelt out. As can been seen from the order for the
recount, the learned Tribunal was persuaded to pass the order on
the basis of the statement of count/form XIV, in respect of four
polling stations. The two such statements/forms which pertain to
polling station Nos.6 and 16, respectively, showed that 100% of the
votes assigned to the said two polling stations were polled at the
said stations, inasmuch as the number of votes mentioned in the
column provided for the number of votes assigned to the polling
station at the top of the statements showed 543 and 1337 votes
respectively, whereas the said figures were in fact the count of the
votes casted at the said two polling stations, however, it was due to
sheer inadvertence that the P.Os. inserted the above figure in the
column for the votes assigned to the said two polling stations.
Such is evident from the fact that the same figures are mentioned
as of the votes casted in the relevant column at the bottom of the
statements. Furthermore, as evident from the gazetted list of
polling stations the number of votes assigned to the said two
polling stations were in fact 1041 and 1977 votes respectively and
not 543 and 1337 as mistakenly mentioned by the P.O. The total
number of votes at the polling station in question were, thus far
higher than the number of votes cast and the Presiding Officers
had simply committed a clerical error by recording the number of
votes cast as the number of votes assigned to the polling station.
Similarly, in respect of the other two polling stations being, Polling
Station No.18 and 115, where the learned Tribunal presumed
casting of votes in excess of the registered votes, it did not examine
the gazetted list of polling stations through which it could have
easily been confirmed that there was no excess casting at all. In PS
CA 194/15
15
No. 18, the Presiding Officer recorded the total number of votes
assigned to the polling station as 437 which in accordance with
gazetted list of polling stations should have been 807 and the total
number of votes polled by the contesting candidates, including the
challenged vote was 437. He then added the total number of
doubtful votes 17, excluded from the count to the total number of
votes polled including the challenged votes, and recorded the
aggregate of 454 as the “Number of votes polled”. Since this figure
now included the excluded votes, the number of polled votes
exceeded the figure recorded as the total votes assigned to this
polling station. However, a glance at the Form XIV would clearly
show that this is nothing more than a clerical mistake. The
Presiding Officer added the valid and invalid votes, the sum of
which exceeded the figure he had recorded as the total votes
assigned to the polling station, which was itself an incorrect figure
since the total number of votes registered at this polling station
was much higher than figure mentioned in Form XIV. The same
clerical mistake was made by the Presiding Officer of Ps No. 115
though it was made only on the second sheet of Form XIV, yet the
Tribunal missed the first sheet of Form XIV on which the correct
numbers were recorded. The issue could have been easily resolved
by referring to the gazetted list of polling stations which clearly
established that the total number of votes assigned to PS No. 18
and 115 were 807 and 1167 respectively, which far exceeded the
number of votes cast.
15.
Mr. Farough Nasim, the learned counsel for the
respondent, in his endevour to show that there was adequate
material available before the learned Tribunal justifying the
recount, took us to various statements of counts/form XIV, which
broadly falls in four categories. The first are the statements
CA 194/15
16
wherein the number of votes assigned and the number of votes
casted, as recorded, are even. The second category is of the
statements where the number of votes casted has been recorded in
excess of votes mentioned as votes assigned. Third is the category
where no votes have been shown to have been secured by any of
the candidate mentioned therein but the number of votes
mentioned in the column for the total votes secured are in
hundreds and in the forth category, there are certain overwriting/
interpolations.
16.
So far as the first two categories which purportedly
show that 100% and more than 100% of the votes assigned have
been casted, the said misconception has already been dealt with in
the foregoing paragraphs which leave not doubt that it was by way
of a sheer mistake that the figure of the number of vote casted
were also shown as the number of the votes assigned although in
fact the votes assigned to the said polling stations were far larger
than the votes casted. As regards the third category of the
statements, as rightly pointed out by Mr. Makhdoom Ali Khan, the
learned counsel for the appellant, we have noted that these infact
are the second pages/sheet of the statement/form XIV which does
not contain the names of all the contesting candidates, and the
names of the remaining candidates are mentioned at the first
page/sheet of the relevant statement/form, which candidate in fact
secured certain numbers of votes as mentioned in the relevant
column at the first page/sheet, total whereof has also been
mentioned in that page/sheet which total has been brought over to
the second page/sheet i.e. the page/sheet in question, showing the
total number of votes polled at that particular polling station and
therefore, it is wrong to say that hundreds of votes have been
shown as casted/polled at the polling station where absolutely no
CA 194/15
17
vote was casted. A close scrutiny of the last category of the
statements clearly show that corrections there have been made in
the figure of the total count as the same did not tally with the
actual correct totaling of the votes recorded as casted in favour of
various candidates in the relevant columns, as the corrected
figures are found in consonance with the number of votes shown
as secured by the various candidates in the relevant columns.
17.
From the foregoing analysis, it is now abundantly clear
that the material placed before and relied upon for the recount
order in fact did not provide a slightest justification for the
recount.
18.
Now coming to the question as to whether the report
submitted by the DRO in pursuance of the recount order justified
passing of the impugned judgment. It may be noted that at no
point in time from the polling day and up to the recount, the
respondent alleged any double stamping. It is wholly inconceivable
that the ballots infested with double stamping would not have been
noticed by any of the polling staff or the various candidates and
their agents and that such ballot papers could be counted and
secured in favour of a candidate without a demur. There is no
evidence in support of the allegation that the respondent’s agents
were removed from the polling stations or were prevented from
observing the counting of the ballots or the consolidation of the
result. There is absolutely no proof at all, of the respondent
making any complaint of the removal of his agents. The respondent
far from examining the concerned P.Os., and/or any other witness,
to prove his allegation and to demonstrate that the ballots
excluded in the recount on account of double stamping were in fact
so stamped at the time of polling and not afterwards, even resisted
the appellant’s application for summoning the P.Os., and also
CA 194/15
18
opposed the application for putting the said ballot papers to
forensic test to verify the type of ink and the seal used for the two
stamps affixed on the ballot papers and as to when each of the two
stamps were affixed. As regards Mr. Farough Nasim’s submission
that no notice as required in terms of section 39 of the ROPA was
served on the respondent or his agents and that none of the
statements of count/form XIV contains signature of the respondent
or his agent. It may be noted that that such is of no consequence
neither has the respondent made any specific allegation of any
manipulation in the consolidation of the result nor does the DRO
report reflects anything pertaining to the consolidation and in
terms of section 38(13) of the ROPA, the P.O. is required to obtain
signature only from such candidates or agents who may be present
at the relevant time. Since it is the case of the respondent that
none of his agent was available at the time of the counting and/or
consolidation, there was no question that the relevant statement
does not contain their signatures. The ballot bags and the
envelopes containing the ballot papers infested with double
stamping, were either unsealed or were not properly sealed and
many of the envelopes were also found to be torn. More
intriguingly, the envelopes containing the appellant’s votes found
torn far out numbered such envelopes of the respondent. The
respondent did not produce any of his polling or election agents to
prove his allegation of their removal from the polling station. He
did not even produce a list of his agents or any letter of their
appointment. The respondent filed affidavit only of one of his two
polling agents whose names he disclosed but did not produce even
the said polling agent. The appellant, before the commencement of
the recounting has through letter dated 04.7.2013, expressed his
apprehension that the relevant election record may be tampered
CA 194/15
19
with and requested that the same be secured, but in vain. From
the letter dated 26.7.2014 written by R.O., the Sr.Civil Judge,
Khipro, it can be seen that the so called strong room where the
relevant record was stored was not a secured place. It may also be
noted that a period of more than one year has elapsed between the
polling/election and the recount. In the circumstances, it cannot
be said that the double stamping took place at the time of casting
of ballots and not after the result was announced and there is a
great probability that the second stamp on the ballot papers may
have been affixed during the period after the election and the
recount.
19.
We have already held the order of the Tribunal for the
recount of the votes to be illegal and since the very foundation of
the basis for the impugned judgment have been demolished, the
impugned judgment has been rendered illegal on that count alone.
However, in view of the fact that it could not be proved that the
ballot casted in favour of the appellant were in fact infested with
double stamping at the time they were so casted and particularly
in view of the fact that the respondent did not make any effort to
prove that such was the case and has in fact resisted the
appellant’s efforts to bring forth the truth about the controversy
and more so for the reason that the ballot papers were not found
well secured and the ballot bags and envelopes containing the
same were found unsealed and torn, the respondent can not be
allowed to be benefited by the said double stamping and the same
cannot provide a valid ground for de-notifying the appellant and
declaring the respondent as the returned candidate.
20.
In the case of Abdul Hafeez Khan (supra), this Court
while dealing with the situation like in the hand has held as
follows:-
CA 194/15
20
“Three cases from this jurisdiction have contextual
relevance. Such are Ejaz Shafi v. Ali Ashraf Shah, PLD
1995 SC 43; Ejaz Shafi v. Ali Ashraf Shah, 1996 SCMR 605
and Iftikhar Hussain v. Ijaz Ahmad Cheema, 1996 SCMR
943. The first two of these cases involved a recount
pertaining to the same election and the same constituency.
Initially, the recount having taken place by an agency other
than the Tribunal, the case was remanded by this Court for
the Tribunal to undertake that exercise but when that
happened and the proposed recount did take place, a
number of votes, on account of duplicate markings, were
rejected and the election result was reversed. On a repeat
appeal to this Court it was found that the double markings
hand, probably, occurred after the election had taken place
and not at the time the poll was being undertaken. As a
result, such discrepancies were discarded and the original
result maintained. In the third case, the power of the
Tribunal to undertake an examination of interpolations in
the election record was recognized. What, therefore, has to
be ensured, once powers under section 46(l) and (2) of the
Act come to be exercised, is that the jurisdiction is not over-
stretched, that there is a prima facie case for a recount, that
recount, if allowed, takes place scrupulously, without
detracting from secrecy of the ballot and, finally that it can
never be ignored that during the passage of time following
upon the election and the recount a number of things may
happen, having potential to throw up a picture that does
not, in fact, correspond with the electoral process but
depicts something of a later origin. To put it differently, the
power, though broad and extensive, is to be used sparingly
and with circumspection, the only object being to ensure a
fair and lawful result of the electoral exercise. Nothing short
of that would serve the object of the legislation.”
21.
Mr. Farough Nasim, learned counsel in support of his
contention that during the course of recount it is revealed that a
number of appellant’s votes were infested with double stamps,
entailing their rejection and exclusion from recount, which cannot
be ignored and held inconsequential merely for the reason that
such specific allegation was either not pleaded earlier or was not
evident from the material placed before the Tribunal for seeking
the recount, relied upon the case of T.A. Ahammed Kabeer (supra).
Indeed, in the said judgment it has been observed that the Court
CA 194/15
21
cannot shut it eyes on the result of recount on the ground that the
result of recount is at variance with the pleading, however, such
has been held in respect of a recount permitted by the Court
within the well settled parameters of exercising jurisdiction in this
regard. Whereas as discussed above in the first place the order of
recount is not founded on the above criteria and secondly, the
result thereof also does not show that the double stamping
revealed thereby occurred at the time of casting and not after the
result was announced.
22.
It was in view of the foregoing that through short order
dated 12.11.2015, we allowed the appeal and set-aside the
impugned judgment holding the appellant to be the returned
candidate.
Judge
Judge
Judge
Islamabad the
12th November 2015
(Aamir Sh.)
‘APPROVED FOR REPORTING’
| {
"id": "C.A.194_2015.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE GULZAR AHMED
MR. JUSTICE QAZI FAEZ ISA
MR. JUSTICE FAISAL ARAB
CIVIL APPEAL NO. 1950 OF 2007
(On appeal against the judgment dated 24.09.2007
passed by the High Court of Sindh, Karachi in
Constitutional Petition No. D-2373/2006)
Government of Pakistan through Secretary Revenue Division/CBR
House, Islamabad and others
… Appellants
VERSUS
Muhammad Junaid Talat
… Respondent
For the Appellants:
Mr. Muhammad Habib Qureshi, ASC
Raja Abdul Ghafoor, AOR
Ms. Sonia Anwar Rana, D.C. Income tax.
For the Respondent:
Mr. Muhammad Jamshed Talat, in person
Date of Hearing:
07.05.2018
JUDGMENT
FAISAL ARAB, J.- In the year 1999, the respondent’s
article on non-payment of income tax by Pakistani seafarers
discharging duty on foreign flagships was published in daily
‘Takbeer’. Pursuant to such article the Income Tax department
raised a demand against 812 seafarers for the payment of income
tax to the tune of Rs.86.606 million, which was followed by ex-
parte assessment orders. The respondent being the author of such
an article sought recovery of reward in his capacity as informer on
the amount which led to recovery proceedings against the
seafarers. He calculated the reward money to be Rs.1.859 million
CIVIL APPEAL NO. 1950 OF 2007
2
under Reward Order dated 14.05.1974 and lodged his claim for
payment.
2.
Before the reward could be paid to the respondent, the
Commissioner of Income Tax, in exercise of suo moto powers under
Section 122-A of the Income Tax, Ordinance, 2001, examined the
assessment orders issued to Pakistani seafarers and set-aside the
same on the ground that the resident status of a person is the
prime factor in the determination of his tax liability and the same
was not ascertainable with regard to Pakistani seafarers
discharging their duties on high seas beyond the territorial limits
of the country. Upon such denial of his claim, the respondent
made a complaint to the Federal Tax Ombudsman, who vide
recommendation dated 16.07.2001 directed that reward be paid to
the respondent. The Commissioner of Income Tax, however,
awarded Rs.3,741/- against recovery of income tax in a sum of
Rs.14,910/- from only one seafarer as Reward Order dated
27.03.1980 envisaged payment of reward only upon recovery of
tax. The respondent again moved the Federal Tax Ombudsman to
seek recovery of his entire claim as according to him the Reward
Order of 1980 was not published in the official gazette so it never
came into force, the reward was, therefore, to be processed in
terms of the Reward Order dated 14.05.1974 which envisaged
payment upon making assessment of the evaded tax. The Tax
Ombudsman accepted the respondent’s argument and vide his
recommendation dated 17.02.2006 directed the appellants to pay
reward in terms of Reward Order dated 14.05.1974. As the
department still did not pay, the respondent filed a Constitutional
CIVIL APPEAL NO. 1950 OF 2007
3
Petition No.D-2373/2006 before the High Court of Sindh for a
direction to the appellants to implement the recommendation of
the Federal Tax Ombudsman. The High Court vide impugned
judgment dated 24.09.2007 allowed the Constitutional Petition by
maintaining the decision of the Tax Ombudsman and directed the
appellants to compute the reward in accordance with the
provisions of Reward Order of 1974 and settle the respondent’s
claim within a period of six months. Being aggrieved by such
decision, the department filed the present appeal with leave of this
Court.
3.
Learned counsel for the department contended that
the Reward Order dated 14.05.1974 was superseded by Reward
Order No. C.No:63(88)IT-IV/75-Pt dated 27.03.1980 which was
published in various tax commentaries and journals and as the
claim of the respondent pertained to the year 1999 it was the
Reward Order dated 27.03.1980 that was applicable and not
Reward Order dated 14.05.1974. He submitted that the Reward
Order of 1980 contained a proviso “provided that reward will be
paid only if the tax sought to be evaded has been recovered atleast
to the extent of the amount of reward being paid”, therefore,
payment of reward to an informant was contingent upon recovery
of tax only. Respondent’s brother, who is an advocate and upon
the death of the respondent claims to be his only surviving heir
appeared in person. He in rebuttal submitted that the department
was not even aware that tax was not being paid by the Pakistani
seafarers discharging duties on foreign flagships and it was the
respondent who divulged such information, therefore, he rightly
became entitled to the reward to the tune of Rs.1.859 million
CIVIL APPEAL NO. 1950 OF 2007
4
under the provisions of Reward Order dated 14.05.1974 as the
Reward Order of 1980 had not come into effect for the reason that
it was not published in the official gazette.
4.
As the whole issue revolves around the entitlement of
the respondent on providing ‘definite information’ with regard to
tax evasion, we posed a question to the respondent’s brother to
point out from the record what constituted definite information
that justifies the respondent’s claim. He was only able to point out
a letter dated 19.07.1999, written by the Special Assistant to the
Commissioner of Income Tax, Karachi appreciating respondent’s
article published in Daily ‘Takbeer’ identifying non-payment of tax
by Pakistani seafarers serving on foreign flagships.
5.
In our view, a person can take benefit of the Reward
Order only if he had supplied some definite information relating to
a taxpayer who has evaded tax. So a condition precedent is
‘detection of evasion of tax’, which must have taken place before
the question of reward arises. Merely giving general information
that tax is not being paid by a person on his otherwise taxable
income would not ipso facto entitle the informant to claim a reward
as non-payment of tax is not always a case of tax evasion. The tax
department knows quite very well that many people, whose
incomes are taxable, do not file their tax returns. Pointing towards
them would not constitute ‘definite information’ leading towards
detection of ‘tax evasion’ whereas the basis for claiming reward lies
in providing information that relates to an assessee who has
concealed a source of income through manipulation or deceitful
means that was liable to be taxed had such source been known to
CIVIL APPEAL NO. 1950 OF 2007
5
the tax department at the time of making assessment. So
informing the tax department generally that a person or a section
of a society is not paying tax would hardly be categorized as
‘definite information’ leading to disclosure of evaded tax. There is a
clear difference between failure to pay tax and to evade a tax. The
evasion is established when a source of income of an assessee, had
it been disclosed to the tax authorities, would have lead to
assessing his income more than what has been assessed in
absence of such information. So disclosure of an assessee’s source
of income, which he has concealed from the tax department
through deceit or manipulation, is the key in successfully claiming
the reward as only in such a situation it could be said to be a case
of tax evasion. In the case of the Regional Commissioner, Income
Tax Companies II Vs. S. Sultan Ali Jeoffrey (1993 SCMR 266) this
Court while exploring the meaning of ‘tax evasion’ held as under:-
“Evasion with reference to taxation laws means to illegally
manipulate things in such a manner that the tax payable
under law cannot be assessed. By an act of evasion the
assessee can reduce his tax liability or completely eliminate it.
Evasion of tax or duty is always in breach of the applicable
and binding law. In taxation law evasion will mean adoption
of such deceitful mechanism and manipulation not permitted
by law which may result in reduction or elimination of legal
tax liability. ………….But the moment avoidance is sought by
illegal contrivance; deceitful methods and adopting a course
not permissible in law it turns into evasion.”
6.
In the present case merely an article was published in
the weekly magazine pointing out that Pakistani seafarers
employed on foreign flagships are not paying income tax on their
salaries. Though this was initially considered by Income Tax
CIVIL APPEAL NO. 1950 OF 2007
6
Officer to be sufficient to claim reward but later this decision was
reversed by the Commissioner of Income Tax albeit on an entirely
different ground. The ex-parte assessment orders were set aside on
the ground that the resident status of a person is the prime factor
in the determination of his tax liability and the same was not
ascertainable with regard to Pakistani seafarers discharging duties
on high seas beyond the territorial limits of the country. On
account of such reasoning, the Commissioner of Income Tax came
to the conclusion that the salaries received by Pakistani seafarers
outside Pakistan on foreign flagships could not be regarded as
income earned on Pakistani soil and hence is not taxable in
Pakistan. Resultantly, demand raised in 225 cases was withdrawn
and the remaining cases were written off in accordance with the
procedure laid down in the write-off of Irrecoverable Arrear
Demand. The department did not examine that the key feature is
detection of evasion of tax and not failure to pay tax without the
element of tax evasion.
7.
From what has been discussed above, it has become
quite clear that where a category of persons liable to pay tax have
failed to do so, merely pointing towards them would not ipso facto
become definite information leading towards detection of tax
evasion. The department already knew or was supposed to know
who are liable to file their tax returns. Department’s lethargy or
inefficiency or whatever the reason it may be in not collecting tax
from tax defaulters would not bring any benefit to an informant
who points out that tax is not being collected from a person or a
section of a society in absence of any element of tax evasion. So
merely drawing the attention of the tax department towards a
CIVIL APPEAL NO. 1950 OF 2007
7
particular person or a category of persons which has failed to pay
tax on their incomes would not constitute ‘definite information’
falling within the ambit of ‘tax evasion’ as it is the evasion of tax
that is key in granting of an award not failure to pay tax. The
whole philosophy of awarding a reward is that if on the basis of
some specific information the income of an assessee which he has
concealed through manipulation or by adoption of some deceitful
mechanism comes to light through an informant, whereby tax
liability of an assessee increases beyond his declared income or his
declared loss stands reduced, only then such information would
amount to detection of tax evasion qualifying the informant to
claim reward not otherwise. Such a situation does not emerge at
all in the present case, what to speak of which reward order i.e.
Reward Order of 1974 or of 1980 was applicable at the time when
the respondent raised his claim for reward with the tax
department.
8.
For what has been discussed above, this appeal is
allowed and the impugned judgment is set aside.
JUDGE
JUDGE
JUDGE
Islamabad, the
7th of May, 2018
Approved For Reporting
Khurram
| {
"id": "C.A.1950_2007.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
PRESENT:
MR. JUSTICE IJAZ UL AHSAN
MR. JUSTICE MUNIB AKHTAR
MR. JUSTICE JAMAL KHAN MANDOKHAIL
CIVIL APPEAL NO.196-P OF 2014
(Against the judgment of the Peshawar High
Court, Peshawar dated 22.09.2010 passed in
Writ Petition No.2064/2010)
Allied Bank Limited
…Appellant
VERSUS
Federation of Pakistan thr. Collectorate
of Customs, Peshawar & others
…Respondent(s)
For the Appellant:
Mr. Muhammad Ajmal Khan, AOR/ASC
(via video link from Peshawar)
Respondents 1-4:
Mr. Abdul Rauf Rohaila, ASC
(via video link from Peshawar)
Respondent No.5:
Nemo
On Court Notice:
Raja Muhammad Shafqat Abbasi, DAG
Date of Hearing:
30.05.2023
JUDGMENT
IJAZ UL AHSAN, J-. Through the instant Appeal
by leave of this Court, the Appellant has challenged the
judgment of the Peshawar High Court, Peshawar dated
22.09.2010 (hereinafter the “Impugned Judgment”) whereby
the constitutional petition of the Respondent was dismissed.
CIVIL APPEAL NOS.196-P OF 2014
-:2:-
2.
Leave to appeal was granted by this Court vide
this Court’s order dated 20.10.2014 which is reproduced
below for ease of reference:
“Respondent No.5 filed a writ petition challenging
withdrawal of certain tax exemption on the import of raw
material and the learned High Court seemingly passed an
order directing the release of goods to the writ petitioner on
furnishing a bank guarantee. Pursuant thereto, the
petitioner/bank furnished bank guarantee in the following
terms:-
“Now the condition of this Bank Guarantee is
that this Bank Guarantee can be enforced at any
time after the release of the goods, at the expiry
of the validity period of the stay order/temporary
injunction in terms of clause 4(A) of Article 199,
of the constitution of Islamic Republic of Pakistan
or the decision of the Court whichever is earlier
…
This Guarantee is valid up to 14.04.1994 by
which dated claim, if any in writing by registered
post should be received by period, we shall
stand absolved and released from all liabilities.”
This writ petition was, however, dismissed vide judgement
dated 15.05.1994. Thereafter, the department never
approached the petitioner for encashment of the bank
guarantee and by that time the period of guarantee had
expired not only in terms of the first part of the order, but
also even by virtue of second part of the same, reproduced
above, and on 04.05.2009 a notice for the above purpose
was served upon the petitioner when the ordinary period
of limitation; for recovery of amount through enforcement of
the guarantee as well as on the basis of reasonableness of
time had expired and the petitioner under the law stood
discharged from its liability to pay. Whether such
guarantee had been validly held to be enforceable by the
learned High Court when the action of the respondent
demanding enforcement of the guarantee was challenged
in the constitutional petition through the impugned
judgement especially when the guarantee was not even a
continuous guarantee for an unlimited period of time.
Leave is granted to consider the above.”
3.
The factual matrix and the arguments raised by
the learned counsel for the Appellant have already been
summed up and reproduced in the leave-granting order. The
same therefore requires no repetition. We would however like
CIVIL APPEAL NOS.196-P OF 2014
-:3:-
to clarify that the Appellant’s petition before the High Court
sought to prohibit the Customs Department/Respondents 1-4
from encashing five bank guarantees issued in favour of the
said Respondents as surety for the liability of Respondent
No.5. These guarantees were numbered 96/29, 93/65,
93/62, 93/05 and 93/06. Their respective expiry dates were
10.02.1995,
14.04.1995,
26.04.1995,
08.01.1995
and
08.01.1995.
4.
The learned counsel for the Appellant has argued
that the guarantees that are the subject matter of this lis
were issued at the request of Respondent No.5 and that the
first time any formal demand was made by Respondents 1-4
for their encashment was on 14.05.1998 which was three
years after the guarantees in question had expired.
Subsequently, and after a period of over ten years,
Respondents 1-4 submitted another demand notice dated
04.05.2009 for encashment of the said guarantees which was
well-beyond the period for encashing the same. The Appellant
subsequently approached the High Court seeking a writ for
prohibition
which
was
dismissed
vide
the
impugned
judgement. The learned counsel prays that the instant Appeal
be allowed and the petition of the Appellant before the High
Court be accepted as prayed for.
5.
The learned counsel for Respondents 1-4, on the
other hand, has defended the impugned judgement. He
contends that government dues that had been pending since
1993 were being sought to be recovered by way of the
CIVIL APPEAL NOS.196-P OF 2014
-:4:-
encashment of the guarantees in question. Further maintains
that in light of Section 202 of the Customs Act, 1969 (the
“Customs Act”), there was no fetter on Respondents 1-4 from
encashing the guarantees in question at any point in time
since the said Section does not stipulate a period of limitation
for the recovery of government dues under the said Act. In
support
of
his
contentions,
the
learned
counsel
for
Respondents 1-4 has relied on Bara Ghee Mills (Pvt.) Ltd. vs.
Assistant Collector Customs (PLD 2017 SC 738), Universal
Insurance Co. Ltd. vs. Collector Customs, Central Excise &
Sales Tax, Peshawar (2005 PTD 2355), and Atif Mehmood
Kiyani vs. Messrs Sukh Chayn Private Limited, Royal Plaza,
Blue Area, Islamabad (2021 SCMR 1446). He has prayed that
the instant Appeal be dismissed.
6.
The learned Deputy Attorney General who has
appeared pursuant to this Court’s notice has also supported
the arguments raised by the learned counsel for Respondents
1-4. He has argued that the guarantees in question were
standalone contracts between the Appellant and Respondents
1-4 and it was inconsequential how the litigation between
Respondents 1-4 and Respondent No.5 concluded. Once
Respondents 1-4 demanded encashment of the bank
guarantees, the Appellant was duty-bound to encash the
same under the terms of the said guarantees.
7.
We have heard the learned counsel for the parties
and gone through the record. The single point of law that
needs to be determined by this Court is:-
CIVIL APPEAL NOS.196-P OF 2014
-:5:-
i.
Could the High Court have, by disregarding the express terms
of the guarantee, dismissed the petition of the Appellant
seeking a writ of prohibition against Respondents 1-4?
8.
In its very essence, a bank guarantee is an
undertaking given by a bank to pay a beneficiary a sum on
behalf of a principal debtor.
9.
Guarantees are regulated in Pakistan under
Chapter VIII of the Contract Act of 1872 (“Contract Act”).
Guarantees are defined under Section 126 of the said Act.
The same is reproduced for ease of reference:-
“A “contract of guarantee” is a contract to perform the
promise, or discharge the liability, of a third person in case
of his default. The person who gives the guarantee is
called the “surety”; the person in respect of whose default
the guarantee is given is called the “principal debtor”, and
the person to whom the guarantee is given is called the
“creditor”. A guarantee may be either oral or written.”
10.
Since a guarantee is, for the purposes of the
Contract Act, a contract under the law, the parties to the
guarantee are deemed to be regulated by the terms of the
guarantee which they have mutually agreed upon keeping in
view the legal principle of consensus ad idem (meeting of the
minds) when it comes to construction of contracts. Once a
guarantee is executed between the parties (i.e. between a
guarantor/surety and a creditor), they would be bound by the
terms and conditions of the guarantee irrespective of any
independent obligation of the principal debtor towards the
CIVIL APPEAL NOS.196-P OF 2014
-:6:-
creditor. That rule is firmly entrenched in our as well as
common law jurisprudence.
11.
This Court has, in the case of EFU General
Insurance Ltd. vs. Zhongxhing Telecom Pakistan (Private)
Limited (2022 SCMR 1994) expressed its view on demand
guarantees. The relevant portion of the said judgement is
reproduced for ease of reference:-
“6. … It is clear that the guarantee in question was in the
nature of a demand guarantee. The law relating to
performance bonds and demand guarantees, and the
conceptual framework regarding the same, especially as to
the enforcement (or otherwise) of such instruments, is now
well settled in common law jurisdictions. In our country
one of the leading decisions is of this Court, reported as
Shipyard K. Damen International v Karachi Shipyard and
Engineering Works Ltd. PLD 2003 SC 191, 2003 CLD 1
(“Karachi Shipyard”). It is a leave refusing order of a
learned three member Bench. Reference was made therein
to a large number of authorities, including English and
Indian cases, and many were considered in detail. The
principles deducible were set out in para 7 (pp. 201-3),
with which (subject to what is stated below) we are in
agreement …
7. It will be seen that demand guarantees are regarded as
being in nature similar to letters of credit, and the
guarantee constitutes an autonomous contract between the
issuer and the beneficiary. Now, one aspect of the law
relating to letters of credit is the rule of strict compliance.
The documents presented by the beneficiary to the issuing
(or, if such be the case, confirming) bank must comply
strictly with the terms thereof. If so, the bank is (subject to
exceptions and conditions not presently relevant) bound to
pay. If not, the bank is bound to refuse payment …”
CIVIL APPEAL NOS.196-P OF 2014
-:7:-
12.
In the UK, the England & Wales Court of Appeal in
Edward
Owens
Engineering
Ltd.
vs.
Barclays
Bank
International Ltd. ([1977] 3 W.L.R. 764) while dealing with
the encashment of a performance bond (which are a sub-set of
demand guarantees) noted that:-
“A bank which gives a performance guarantee must
honour that guarantee according to its terms. It is not
concerned in the least with the relations between the
supplier and the customer; nor with the question whether
the supplier has performed his contracted obligation or not;
nor with the question whether the supplier is in default or
not. The bank must pay according to its guarantee, on
demand, if so stipulated, without proof or conditions. The
only exception is when there is a clear fraud of which the
bank has notice.”
(Underlining is ours)
Similarly, in Sri Lanka, the Supreme Court in Commercial
Bank of Ceylon PLC vs. Ace Containers (Pvt) Ltd. ([2015] 1
S.L.R. 223) relied heavily on Paget’s Law of Banking when
describing a demand guarantee. The said para is reproduced
for ease of reference:-
“Paget's Law of Banking 12th edition Chapter 34.2 at page
730 describes the characteristics of Demand Guarantees
as follows “The essential difference between a guarantee
in the strict sense (i.e, a contract of suretyship) and a
demand guarantee is that liability of a surety is
secondary, whereas the liability of the issuer of a demand
guarantee is primary. A surety's liability is co-extensive
with that of the principal debtor and, if default by the
principal debtor is disputed by the surety, it must be
proved by the creditor Neither proposition applies to a
demand guarantee. The principle which underlies demand
CIVIL APPEAL NOS.196-P OF 2014
-:8:-
guarantees is that each contract is autonomous. In
particular, the obligations of the guarantor are not affected
by disputes under the underlining contract between the
beneficiary and the principal. If the beneficiary makes an
honest demand, it matters not whether as between himself
and the principal he is entitled to payment. The guarantor
must honour the demand, the principal must reimburse the
guarantor
(or
counter-guarantor)
and
any
disputes
between the principal and the beneficiary, including any
claim by the principal that the drawing was a breach of
the contract between them, must be resolved in separate
proceedings to which the bank will not be a party.””
The conduct of parties to a bank guarantee has also been the
subject of discussion by the Indian Supreme Court in U.P.
State Sugar Corporation vs. Sumac International Ltd. ([1997] 1
SCC 568) wherein it was of the view that:-
“The law relating to invocation of such bank guarantees is
by now well settled. When in the course of commercial
dealings an unconditional bank guarantee is given or
accepted, the beneficiary is entitled to realize such a bank
guarantee in terms thereof irrespective of any pending
disputes. The bank giving such a guarantee is bound to
honour it as per its terms irrespective of any dispute raised
by its customer. The very purpose of giving such a bank
guarantee would otherwise be defeated. The courts
should, therefore, be slow in granting an injunction to
restrain the realization of such a bank guarantee.”
(Underlining is ours)
Reference may also be helpfully made to the judgement of the
High Court of England & Wales in Simon Carves Ltd. vs.
Ensus UK Limited ([2011] EWHC 657 (TCC)). Reflecting the
CIVIL APPEAL NOS.196-P OF 2014
-:9:-
everchanging need to keep up with contemporary commercial
practices, Mr. Justice Akenhead opined that:-
“12. I am very reluctant on the basis of an argument that
has run for no more than about 45 or 50 minutes from both
parties to make any final findings of law about this. … It is
certainly the case, and the law and practice establishes
this over many years, that a bank or surety which has
provided
an on
demand
bond,
sometimes
called
an unconditional bond, cannot be enjoined against paying
against a valid demand unless there is the clearest at
least prima facie evidence of fraud, either fraud at the
bank or fraud by the giver of the demand. ...”
(Underlining is ours)
13.
It would therefore appear that once a bank issues
a guarantee, it is duty-bound to pay the beneficiary of a
guarantee in terms of the guarantee itself.
14.
Ex facie, the guarantees issued by the Appellant in
favour of Respondents 1-4, although issued on behalf of
Respondent No.5, were independent standalone obligations
between the Appellant and Respondents 1-4 which were liable
to be paid on demand by the Appellant without reference to
Respondent No.5. But the said obligation was limited by time
and amount with time being the expiry date mentioned in the
guarantee document itself. It was for this reason that we
insisted that the learned counsel for Respondents 1-4 satisfy
this Court that a valid demand had been made for the
encashment of the guarantees within the period stipulated in
the terms of the guarantees itself. The learned counsel has
taken us to the relevant demand notices addressed to the
Appellant but we note that all such demand notices were
CIVIL APPEAL NOS.196-P OF 2014
-:10:-
issued after the expiry of the encashment period stipulated in
the relevant guarantees.
15.
When confronted with the said situation, the
learned counsel has tried to raise an argument to the effect
that in terms of Section 202 of the Customs Act, no limitation
ran for the recovery of government dues and therefore the
guarantees in question could be encashed by Respondents 1-
4 at any time the said Respondents chose to demand
payment since the guarantees could not operate as estoppel
against the express provisions of the Customs Act and the
said guarantees had been issued as a surety against the
liability of Respondent No.5. We note that this is the line of
reasoning that has found favour with and subsequently been
adopted by the High Court in the impugned judgement. We
must, however, respectfully disagree with the submissions of
the learned counsel for Respondents 1-4 as well as the view
taken by the High Court. The obligation of the Appellant to
pay was anchored in the contract of guarantee and not in the
Customs Act. Therefore, the obligation of the Appellant to pay
under the guarantee does not make the “guaranteed amount”
“government dues” in the sense used in Section 202 of the
Customs Act. Further, for avoidance of any doubt, the right of
Respondents 1-4 to recover any government dues from
Respondent No.5 had already been expressly protected in the
terms of the guarantees itself. For ease of reference, the
relevant portion of the guarantee is reproduced:-
CIVIL APPEAL NOS.196-P OF 2014
-:11:-
“… This would, however be without prejudice to the Power
of the Collector of customs to recover the amount …
involved in the release of the captioned consignment shall
be recoverable under Section 202 of the Customs Act 1969
specially by way attachment and sale of any moveable or
immoveable property of the defaulter and appointment of
receiver from the Management of the moveable or
immoveable property of the defaulter as in envisaged in
clause a & b of Sub Section (3) of Section 202 ibid.”
Respondents
1-4
could
not
have
sought
to
recover
Respondent No.5’s liability in the manner that is now before
us. By seeking to encash the said guarantees, Respondents 1-
4 had, in essence, treated the Appellant as if it was an
extension of Respondent No.5 which is, with all due respect,
incorrect. The Appellant is a separate entity in the eyes of the
law and cannot be saddled with the liability of making good
any government dues that were to be recovered from
Respondent No.5 (and Respondent No.5 alone) once the
guarantees in question expired. We therefore have no
hesitation
in
arriving
at
the
conclusion
that
while
Respondents 1-4 had the benefit of no period of limitation
running against the recovery of government dues, such
benefit was only available against Respondent No.5 and the
High Court could not have held that by virtue of Section 202
of the Customs Act, the Appellant had also become subject to
the said provisions because the Appellant is not subject to the
Custom Act and the guarantee had been issued as a
standalone contract for a limited period and for a limited
purpose namely payment to the Government certain amounts
CIVIL APPEAL NOS.196-P OF 2014
-:12:-
on its first call, unconditionally, provided the demand/call
was made within the time specified and mutually agreed in
the contract itself. Therefore, the guarantees issued by the
Appellant could not have been encashed by Respondents 1-4
at any point in time regardless of their expiration dates. It
may be emphasized that a contract of guarantee is a
standalone and independent contract between the guarantor
(in this case, the Appellant) and the beneficiary (in this case,
Respondents 1-4/Federation) for a limited period (unless the
guarantee contract specifically states that it is a continuing
guarantee or language to that effect and no date or event of
expiry thereof is specified) and for a limited purpose (that is, to
pay the amount mentioned therein on a call being made within
the time specified) without reference to any third party or the
underlying transaction that constituted the basis for issuance
of the guarantee. The parties to the guarantee contract are
bound by the terms and conditions of the guarantee including
its date of expiry. Unless a valid call is received by the
Guarantor within the time specified in the guarantee, the
Guarantor is released of any and all obligations under the
contract and the contract itself expires. The Guarantor, by
reason of issuing the guarantee, does not become subject to
Section 202 of the Customs Act in the sense understood by
the High Court by reason of guaranteeing payment of certain
sums. The Guarantor does not become liable to pay
“government dues” referenced to in Section 202 of the
Customs Act because such liability continues to be attached
to the person who owes such dues to the Customs
CIVIL APPEAL NOS.196-P OF 2014
-:13:-
Department. The Department can, therefore, rely on Section
202 to recover the said dues from the person/company (in
this case, Respondent No.5).
16.
We have also examined the judgements sought to
be relied upon by the learned counsel for Respondents 1-4.
Two of the said judgements are leave-refusing orders of this
Court and the third judgement was passed by a division
bench of the Peshawar High Court. The said orders do not
address the specific question before us and proceed on a
different set of facts and circumstances and do not lay down
the law on the subject. Even otherwise, none of the relied-
upon judgements deal with the issue of encashment of
guarantees past their expiration date. The same are therefore
distinguishable and are of no help to the case of Respondents
1-4.
17.
To answer the issue framed by this Court, the
High Court could not have disregarded the express terms of
the guarantees and allowed encashment of the same by
dismissing the Appellant’s petition on the ground that no
limitation ran against the recovery of government dues by the
Customs Department/Respondents 1-4 in terms of Section
202 of the Customs Act.
18.
For the aforenoted reasons, we find that the
impugned judgement suffers from misapplication of the
applicable law on the subject and is therefore unsustainable.
Consequently, the impugned judgement is set aside and the
CIVIL APPEAL NOS.196-P OF 2014
-:14:-
petition of Appellant filed before the High Court is allowed as
prayed for. This appeal allowed. There shall be no order as to
costs.
19.
These are the detailed reasons for our short order
of even date. For ease of reference, the said short order is
reproduced:-
“For detailed reasons to be recorded later, this appeal is
allowed.”
Judge
Judge
Judge
ISLAMABAD, THE
30th of May, 2023
Khalil Sahibzada, LC*/-
NOT APPROVED FOR REPORTING*/-
| {
"id": "C.A.196-P_2014.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE GULZAR AHMED, CJ
MR. JUSTICE IJAZ UL AHSAN
MR. JUSTICE SAYYED MAZAHAR ALI AKBAR NAQVI
CIVIL APPEAL NO. 1989 OF 2019
(On appeal against the judgment dated 11.10.2018
passed by the Federal Service Tribunal, Islamabad in
Appeal No. 407(L)CS/2016)
Secretary (M-V) Federal Board of Revenue, Islamabad
…Appellant(s)
VERSUS
Zeenat Bangash and others
…Respondent(s)
For the Appellant(s):
Mr. M.D. Shahzad Feroz, ASC
For the Respondent (1):
In person
Date of Hearing:
29.04.2021
…
JUDGMENT
SAYYED MAZAHAR ALI AKBAR NAQVI, J.- Through this appeal by
leave of the Court under Article 212(3) of the Constitution of Islamic
Republic of Pakistan, 1973, the appellant has assailed the judgment
dated 11.10.2018 passed by the Federal Service Tribunal, Islamabad,
whereby the Service Appeal filed by the respondent No. 1 was accepted
and he was held entitled to deputation allowance.
2.
Briefly stated the facts of the matter are that the
respondent No. 1 being officer of Postal Group remained working in
Federal Board of Revenue on deputation from the year 1994 to 2001 but
he was not given deputation allowance. After his repatriation to his
parent department, he on 27.11.2012 approached the Federal Board of
Revenue for grant of deputation allowance on the basis of judgment of
the Federal Service Tribunal, which was upheld by this Court and also
on the basis of discrimination that the same was extended to other
employees with similar circumstances. However, the request of the
respondent was turned down by the department vide order dated
12.05.2015 on the ground that pursuant to Office Memorandum No.
F3(8)R.2/2007 dated 01.07.2007 deputation allowance is only
admissible to fresh cases and it is not meant for old cases, therefore, it
Civil Appeal No. 1989/2019
-: 2 :-
could not be given retrospective effect. The respondent then filed appeal
before the Appellate Authority i.e. Secretary Finance Division, which
was referred to the Establishment Division vide letter dated 01.02.2016
but it was never decided. The respondent, thereafter, filed appeal before
the Federal Service Tribunal, which has been allowed vide impugned
judgment. Hence, this appeal with leave of the Court.
3.
Learned counsel for the appellant inter alia contended that
the respondent was repatriated to his parent department in the year
2001 and he filed departmental appeal on 08.06.2015 which was
clearly barred by limitation; that the office memorandum of 2007 clearly
states that deputation allowance is admissible to only fresh cases and it
has no retrospective effect.
4.
On the other hand, the respondent No. 1, who appeared in
person defended the impugned judgment by stating that several of his
colleagues were granted deputation allowance whereas he was ignored,
which act is grossly arbitrary, illegal, unlawful and against the principle
of natural justice.
5.
We have heard learned counsel for the appellant and
respondent in person and have gone through the available record.
6.
We have noted that vide Office Memorandum dated
02.04.1999 the deputation allowance was made admissible only to the
cases of foreign service of Pakistan and the cases of other
deputationists of ministries, divisions etc were excluded. However,
pursuant to a judgment of the Federal Service Tribunal passed in
Appeal Nos. 39 & 40(R)CS/2003, which was upheld by this Court vide
order dated 21.09.2005 passed in Civil Petition Nos. 519 & 524/2004,
all officers/officials of ministries, divisions etc, who have been
transferred and posted on deputation basis were held entitled to
deputation allowance vide Office Memorandum No. F.5(8)R-2/2007
dated 04.07.2007. Therefore, the only question which remains to be
clarified is whether the said office memorandum has retrospective effect
or is it only meant for “fresh cases”. The learned Service Tribunal took
into consideration the Office Memorandum dated 02.04.1999 which was
further elaborated by Office Memorandum dated 04.07.2007 and while
observing that according to paragraph ‘ii’ of the Office Memorandum
dated 04.07.2007, the old cases of transfers/postings on deputation
basis were granted deputation allowance held that “there is no denying
the fact that on the basis of O.M. of the Finance Division dated 4th of
Civil Appeal No. 1989/2019
-: 3 :-
July, 2007, deputation allowance was allowed and disbursed to all the
civil servants either old or fresh and no distinction was made between
those, inducted in OMG or otherwise. It could not be acceptable even
otherwise on the touchstone of rule of consistency i.e. that one set of civil
servants posted on deputation or under Section 10 is allowed
deputation allowance retrospectively and others are deprived of that”,
which otherwise would be in defiance of Article 25 of the Constitution of
Islamic Republic of Pakistan. When we confronted learned counsel for
the appellant with this aspect of the matter, he could not give any
plausible answer. So far as the question raised by learned counsel for
the appellant that the claim of the respondent was barred by laches as
he was repatriated to his parent department in the year 2001 and he
filed departmental appeal on 08.06.2015 is concerned, suffice it is to
state that being a financial matter, limitation will not have any adverse
implication on respondent’s claim.
7.
For what has been discussed above, we are of the candid
view that the learned Service Tribunal has passed a well reasoned
judgment to which no exception can be taken. This appeal having no
merit is accordingly dismissed.
CHIEF JUSTICE
JUDGE
JUDGE
Islamabad, the
29th of April, 2021
Approved For Reporting
Khurram
| {
"id": "C.A.1989_2019.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
PRESENT:
Mr. Justice Mushir Alam
Mr. Justice Munib Akhtar
Mr. Justice Qazi Muhammad Amin Ahmed
Civil Appeal No.1 of 2020
(Against the judgment dated 31.12.2019
passed
by
the
Election
Tribunal
Balochistan, Quetta in Election Petition No.
No.36/2018)
Sardar Abdul Rehman
…Appellant(s)
Versus
Abdul Kareem Kehtran & others
…Respondent(s)
For the Appellant(s):
Mr. Kamran Murtaza, ASC
Syed Rifaqat Hussain Shah, AOR
For the Respondent(s):
Syed Iftikhar Hussain Gillani, Sr.ASC
Date of hearing:
06.10.2020.
JUDGMENT
Qazi Muhammad Amin Ahmed, J.- After a nail biting
contest, held on 25th of July, 2018 in PB-08 Barkhan, Balochistan, the
appellant returned by a narrow margin of 65 votes; dissatisfied with
the outcome, Abdul Karim Kethran, one of the contestants, respondent
herein, approached the Returning Officer for recount of invalid ballot
papers, allegedly liable to be excluded from consideration, however,
credited to the appellant, materially altering the result of the election to
his detriment; in his initial quest for a recount, he remained
unsuccessful throughout whereafter he questioned the validity of
election before the learned Election Tribunal Balochistan, Quetta,
through an election petition filed by his attorney Sanaullah, decided in
his favour vide impugned judgment dated 31.12.2019, in the following
terms:-
“……..the Election Petition filed by the petitioner
Abdul
Kareem
Khetran
is
accepted.
The
Civil Appeal No.1 of 2020
2
Notification No.F.2(42)/2018-Cord.- dated 7th
August 2018, issued by the Election Commission
of Pakistan (respondent No.16), whereby the
respondent
No.1
(Sardar
Abdul
Rehman
Khetran) was declared as returned candidate
from PB-8-Barkhan, is set aside to his extent.
The Election Commission of Pakistan is directed
to de-notify the returned candidate namely
Sardar Abdul Rehman Khetran (respondent
No.1). The seat of returned candidate having
become vacant shall be filled through re-polling
in the entire constituency.”
The respondent challenged the election on a variety of grounds ranging
from massive rigging at various polling stations to inclusion of invalid
votes in appellant’s count with a particular emphasis on 312 postal
ballots. The appellant contested the petition alleging accusations as
non-specific and vague as well as hit by non-compliance of various
mandatory provisions of the Elections Act, 2017 “the Act”. On
divergent positions, both sides led evidence before the Tribunal, on the
basis whereof, the learned Tribunal, on 11.07.2019, through an
interlocutory order directed the Returning Officer to arrange verification
of 3052 votes from National Database & Registration Authority,
however, upon a report submitted by the Returning Officer that since
the seals on the bags containing the impugned ballot papers had
already been breached, the desired verification could not be carried out
with any degree of certainty/authenticity, a circumstance that appears
to have weighed with the learned Tribunal to direct re-poll in the entire
constituency.
2.
Syed Iftikhar Hussain Gillani, learned Sr.ASC, after
elaborating his entire case, nonetheless, has finally confined himself to
the verification of the postal ballots for the determination of their
validity, a request contrarily contested by the learned counsel for the
appellant, primarily on the ground that the suggested exercise cannot
be allowed to be undertaken without contravening the mandatory
statutory provisions that render the election petition hopelessly non-
maintainable for reasons more than one; according to him, the
respondent had banked upon his attorney throughout and came
forward with stereotype allegations, vague as well as non-specific, and
also failed to discharge the onus so as to demonstrate that the alleged
rigging and non-compliance with the Rules was done on his behalf and
that it materially effected the outcome of the poll, otherwise tilting in his
favour. The learned counsel has referred to the flawed verification of the
election petition as well as annexures thereof to argue that the omission
unredeemingly closed the chapter.
Civil Appeal No.1 of 2020
3
3.
Heard. Record perused.
4.
Adverting to the fundamental issue of maintainability of the
election petition, it would be pertinent to mention that the appellant
had taken the plea of non-maintainability in his written statement, in
consequence whereof, an additional issue in the following term was
framed by the Tribunal:
“Whether the petition filed by the petitioner is
maintainable in view of legal objections ‘B’ ‘C’, ‘E’ &
‘F’ raised in the election petition?”
The learned Tribunal, however, considering the case law cited at the
bar as factually distinguishable, ignored the objections with regard to
the patent flaws in verification of the petition as well as annexures and
mode of presentation thereof, holding the challenge as intra vires. We
curiously examined the question of verification to explore any sign of
life in the lis and for the purpose went through various provisions of the
Act that heavily borrows mechanism for the trial of an election petition
provided under the Code of Civil Procedure, 1908 (Act V of 1998) “the
Code” for disposal of a civil suit. Section 148 of the Act specifically
provides as under:
“Procedure before Election Tribunal for trial
of petitions.- (1) Subject to this Act and Rules,
the trial of an election petition, shall be as nearly
as possible, in accordance with the procedure
applicable under the Code of Civil Procedure, 1908
(Act V of 1908) to the trial of suits and the Qanun-
e-Shahdat Order, 1984 (President’s Order. No.X of
1984).”
We have noticed that the respondent assigned the responsibility for
institution as well as prosecution of the election petition to his
confidant Sanaullah, designated as attorney; he is the person who
appears to have not only presented the election petition but also
verified contents as well as annexures thereof as required under section
144 (4) of the Act. While Order VI Rules 14 and 15 of the Code
generously permit the parties to sign pleadings or verification either
personally or through their designated attorneys, section 144 (4) ibid
mandatorily restricts the petitioner to personally undertake the
exercise, violation whereof, would inevitably result into summary
rejection of the petition as is evident from the plain language of
subsection 1 of section 148 of the Act ibid. It was incumbent upon the
petitioner to follow the procedure expressly provided by the Act itself;
admittedly not followed by him. The same anomaly is recurring in all
the annexures without exception. It was at the fag-end of the
Civil Appeal No.1 of 2020
4
proceedings that the respondent personally appeared to face cross-
examination on detailed affidavit (Ex.P/11), again signed and submitted
by the said attorney; his entry in the witness box was objected to,
however, the decision thereof was deferred on the final adjudication, an
omission conspicuous on the record. Statement of Abdul Kareem Khan,
respondent, is the mainstay of his challenge to the election result;
though in the opening part of the detailed affidavit, there is a solemn
affirmation on oath, purportedly by the respondent in support of the
contents thereof, nonetheless, at the bottom of the affidavit, it appears
to have been sworn by Sanaullah attorney before the Oath
Commissioner. As mentioned above, the provisions of Qanun-e-
Shahdat Order, 1984 are also applicable before the Election Tribunal;
Article 133 whereof provides order of examinations, reproduced for
ready reference:
“Order of examinations.- (1) Witnesses shall be
first examined-in-chief, then (if the adverse party so
desires) cross-examined, then (if the party calling him
so desires) re-examined.
(2)
The examination and cross-examination must
relate to relevant facts but the cross-examination
need not be confined to the facts to which the
witness testified on his examination-in-chief.
(3)
The re-examination shall be directed to the
explanation
of
matters
referred
to
in
cross-
examination; and, if new matter is, by permission of
the Court, introduced in re-examination, the adverse
party may further cross-examine that matter.”
Record does not suggest appearance of Sanaullah attorney before the
Tribunal, however, it is manifestly clear that for detailed affidavit
EX.P/11, the oath was never administered upon the respondent as is
evident from the description of deponent thereof being no other than
Sanaullah. Examination-in-chief, cross-examination and re-examination
are in inseparable parts of a witness’s deposition and it was not open
for the respondent, though owned by him, nonetheless, to adopt
contents of an affidavit sworn by a different deponent; the anomaly
cannot be countenanced without destroying the entire scheme of law
regarding examination of a witness. It may be added that verifications
san compliance with the procedure provided in the High Court Rules &
Orders, Volume IV, Chapter XII wherein form of oath and affirmation
thereof, to be administered to the witnesses, are aptly illustrated, non
compliance whereof has been held as fatal to an election petition, as is
Civil Appeal No.1 of 2020
5
evident by the law declared by this Court in the cases reported as
“Sardar Muhammad Naseem Khan Vs. Returning Officer PP-12 & others
(2015 SCMR 1698), Hina Manzoor Vs. Malik Ibrar Ahmed & others
(PLD 2015 Supreme Court 396) Zia-ur-Rehman Vs. Syed Ahmad Hussain
& others (2014 SCMR 1015) Engr. Iqbal Zafar Jhagra & others Vs. Khalil-
ur-Rehman & 4 others (2000 SCMR 250) and Lt. Col. (Retired) Ghazanfar
Abbas
Shah
Vs.
Mehr
Khalid
Mehmood
Sargana
&
others
(2015 PSC 1214).
5.
In view of the above insurmountable juridical hurdles, we
do not find ourselves disposed to grant an otherwise innocuous request
to examine the validity of 312 postal ballots, against the backdrop of a
narrow margin of victory, notwithstanding. Examination of other
issues, resting upon allegations, otherwise too broad to be specifically
qualified through tangible evidence, fades into insignificance on
account of our findings on the question of maintainability of the
election petition. Appeal is allowed; the impugned judgment is set
aside, leaving the parties to bear their own costs.
Judge
Judge
Judge
Islamabad, the
6th October, 2020
Not approved for reporting
Azmat/-
| {
"id": "C.A.1_2020.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE GULZAR AHMED, HCJ
MR. JUSTICE IJAZ UL AHSAN
Civil Appeal No.20 1 of 2020
Against judgment dated 18.09.2019 of Punjab
Service Tribunal at Bahawalpur, passed in Appeal
No.2362 of 2018.
Province of Punjab through its Special
Secretary, Specialized Healthcare & Medical
Education Department, Lahore, etc
VERSUS
Khadim Hussain Abbasi
Appellants
Respondent
For the Appellant(s) Syed Wajid Ali Gillani, Addl.AG, Pb.
For the Respondent(s)
Mr. M. A. Rekmn Qureshi, ASC
Date of Hearing:
13.04.2021
JUDGMENT
IJAZ UL AHSAN, J-. This appeal by leave of the
Court arises out of a judgment of the Punjab Service Tribunal
at Bahawalpur ("the Tribunal") dated 18.09.2019. Through the
impugned judgment, a Service Appeal bearing No.2362 of
2018 filed by the Respondent was partly allowed to the extent
that major penalty of compulsory retirement from service was
converted into minor penalty of forfeiture of past service for a
period of two years.
2. Briefly stated the facts necessary for disposal of
this Us are that the Respondent was serving as Chief
Technician, District Blood Unit, Sheikh Zayed Hospital,
Rahim Yar Khan. He was proceeded against departmentally
-
Civil Appeal jVo.203 of 2020
2
under Punjab Employees Efficiency, Discipline and
Accountability Act, 2006 ("PEEDA Act, 2006") on the
allegations of misconduct, illegal sale of blood, absence from
duty without leave and malpractices. An inquiry was
conducted in which the Respondent was found guilty of the
charges. Consequently, vide order dated 09.03.2017 major
penalty of compulsory retirement from service was imposed
upon him. He filed a departmental appeal which was rejected.
Therefore, he approached the Tribunal. During the course of
the hearing before the Tribunal the only argument made by
learned counsel for the Respondent was to the effect that
major penalty awarded to the Respondent may be converted
into a minor penalty. He also produced a copy of the
judgment dated 17.01.2019 passed by Magistrate, Section 30
Rahim Yar Khan who had acquitted the Respondent in the
criminal case registered against him. The Tribunal came to
the conclusion that the Respondent had been dealt with
harshly and the penalty imposed on him was not
commensurate with the gravity of the offence. It therefore vide
impugned judgment dated 18.09.2019 proceeded to allow the
Service Appeal in the manner noted above.
3. The Appellants were aggrieved of the said
impugned judgment and approached this Court by way of a
Civil Petition in which Leave to Appeal was granted on 03-03-
2020 in the following terms:
"We have heard the learned Additional Advocate
General, Punjab and have also gone through the case record.
Serious allegations of misconduct, involvement in illegal sale
of blood, absent from duty and involvement in malpractice
Civil A ppeal No.201 o12020
3
were leveled against the Respondent by way of a charge
sheet dated 22.12.2016. A regular inquiry was conducted
into the matter, the Respondent was found guilty of the
aforesaid allegations and ultimately after following the codal
formalities, he was recommended to be dismissed from
service by the inquiry officer. However, the competent
authority after considering all aspects of the matter imposed
a major penalty of compulsory retirement from service upon
the Respondent, vide order dated 09.03.2017. The
departmental appeal filed by him against the said order was
rejected, vide order dated 22.05.2018. He then filed a service
appeal before the Punjab service Tribunal, Lahore. Although,
the Service Tribunal has found that allegations against the
Respondent stood established on record, but for no reason
given in impugned judgment dated 18.09.2019 interfered
with the penalty of compulsory retirement imposed upon the
Respondent by the department and converted the same into
forfeiture ofpast service for a period of two years.
2.
The learned Law officer has pointed out that by the
time the impugned judgment was passed, the respondent
had already received all benefits of his compulsory
retirement and thus this very appeal before the Service
Tribunal on such basis had become irifructuous.
3.
The contentions raised by the learned Additional
Advocate General, Punjab need consideration. Leave to
appeal is therefore granted to consider inter alia the same."
4.
The learned Additional Advocate General, Punjab
appearing for the Appellants submits that the judgment of the
Tribunal is not in consonance with the law declared by this
Court in various judgments including Inspector General
(Prisons) NWFP, Peshawar & others v. Syed Jaffer Shah, ex-
Assistant Superintendent Jail & others (2009 PLC (CS) 47)
and a flurry of recent judgment rendered by this Court. He
maintains that the impugned judgment is devoid of any
reason and relies on philanthropic ideas rather than any
sound, legal or judicial principles. He submits that charges of
0
CiuilA ppeajf'Jo.201 of 2020
4
misconduct, illegal sale of blood from the Blood Bank,
tampering with the record, etc stood fully established in
addition to unauthorized absence from duty for more than 75
days. Therefore, there was neither reason nor justification for
the Tribunal to interfere with the punishment imposed by the
departmental authorities after following due process of law.
He further maintains that neither any reason nor justification
was given by the Tribunal for finding the punishment
disproportionate to the gravity of offence. It has further been
pointed out that it is settled law that acquittal in criminal
proceedings has no impact on the departmental proceeding as
the two can simultaneously proceed and the result of one has
no bearing on the outcome of the other unless the
departmental proceedings have not been independently
conducted and solely and exclusively rely on the criminal
proceedings, which is not the case here. In this regard, the
learned Law Officer has relied upon Nazir Ahmed v. Capital
City Police Officer (2011 SCMR 484), Muhammad Igbal v.
District Police Officer (2011 SCMR 534), Shahid Wazir v.
Secretary, Kashmir Affairs and Northern Areas and States of
Frontier Regions Division (2006 SCMR 1653) and Shahid
Masood Malik v. Habib Bank Limited (2008 SCMR 1151). He
finally submits that the Respondent had already received his
pensionary benefits, gratuity and GP Fund etc without protest
and had thereby accepted the penalty imposed by the
Department. In such circumstances, the Service Appeal filed
by the Respondent had in any event become infructuous and
the Tribunal committed serious error in ignoring and
Ciuil Appeal No.201 of 2020
5
overlooking this fact and proceeding to reduce his penalty
without recording any reasons for the same.
5.
Learned ASC for the Respondent on the other
hand has attempted to defend the impugned judgment. He
submits that the Respondent has long service record with the
Appellants and the punishment awarded to him was
disproportionate to the gravity of the offence. However, when
confronted with the fact that the Respondent had been found
guilty of illegal sale of blood from the Blood Bank, tempering
with the record and unauthorized absence from duty, he has
not been able to offer any cogent or reasonable defence.
6.
We have heard the learned Additional Advocate
General Punjab, learned ASC for the Respondent and have
gone through the record with their assistance.
7.
The record indicates that the Respondent was
proceeded against under PEEDA Act, 2006 on the allegations
of misconduct, illegal sale of blood, tempering with the record
of the Blood Bank and unauthorized absence from duty for at
least 75 days. An inquiry was conducted against him in which
he was found guilty of all charges. Surprisingly enough, the
only defence taken before the Tribunal was that the
punishment may be reduced from major penalty to a minor
penalty. No effort whatsoever was made to deny or contest the
charges against the Respondent. This constituted admission
of charges which were admittedly of a very serious nature.
The Tribunal has for reasons best known to it chosen to
ignore such a vital and material aspect of the case. Although
a
Civil Appeal No.201 of 2020
6
the judgment of Magistrate, Section 30 Rahirn Yar Khan was
produced before the Tribunal, whereby the Respondent had
been acquitted of the criminal charges, nothing turns on the
same in view of the independent inquiry conducted by the
Department and clear and categorical findings of the
departmental authorities holding the Respondent guilty of the
charges leveled against him. This Court has repeatedly held
that departmental proceedings and criminal prosecution are
not mutually exclusive, can be proceeded independently and
acquittal in criminal proceedings does not affect the outcome
of the departmental proceedings. It may be noted that
departmental proceedings are undertaken under a different
set of laws, are subject to different procedural requirements
are based upon different evidentiary principles and a different
threshold of proof is to be met. Criminal proceedings on the
other hand are undertaken under a different set of laws, have
different standards of proof are subject to different procedural
requirements and different thresholds of proof are required to
be met. Therefore, acquittal in criminal proceedings cannot
and does not automatically knock off the outcome of the
departmental proceedings if all legal and procedural
formalities and due process have been followed
independently. In this context, reference may usefully be
made to the cases of Nazir Ahmed; Muhammad Iqbal; Shahid
Wazii-; and Shahid Masood Malik (ibid).
8. Further, without reference to the specific charges
against the Respondent which stood established against him,
Civil Appeal No.201 of 2020
7
the Tribunal completely ignored the fact that he had in effect
admitted the charges and accepted his guilt before it.
However, the learned Tribunal nevertheless thought it fit to
launch upon a discussion of philosophy of punishment in a
vague, ambiguous and abstract manner which has no place
in judicial verdicts. Further, the Tribunal without discussing
the facts and circumstances of the case proceeded to observe
that, "the guilt and the quantum of severe punishment in the
absence of tangible material is against the principle of natural
justice to award severe punishment, fair and transparent
method should be adopted, the punishment imposed under
these circumstances is too harsh".
9. We are at a loss to understand how and on what
basis the Tribunal came to the conclusion that there was
absence of "tangible material" in the case of the Respondent
against whom all charges stood established in a properly
constituted inquiry and who had for all intents and purposes
admitted his guilt even before the Tribunal. Further, the
Tribunal did not bother to elaborate how the process was
"unfair" or "lacked transparency". No reasons whatsoever
were recorded let alone cogent for conclusion of the Tribunal
that the punishment was harsh, considering the seriousness
of the charges against the Respondent. Paragraphs 8 and 9 of
the impugned judgment have no nexus or connection with the
facts of the case as very briefly narrated in the earlier part of
the impugned judgment. There is total lack of discussion of
facts of the case, procedure followed and the finding of guilt
Civil A ppeal No.201 012020
8
recorded by the departmental authorities and how there was
absence of tangible material or any procedural impropriety.
We are constrained to hold that in passing the impugned
judgment, the Tribunal has completely ignored and
disregarded the basic and foundational principles of law laid
down by this Court in various judgments spelling out the
parameters for exercise of jurisdiction under Section 5 of the
Service Tribunals Act, 1973. In this regard, reference may
also be made to the case of Inspector General (Prisons) NWFP,
Peshawar & others (ibid) where the practice of undue and
unwarranted interference in the penalties awarded by the
departmental authorities has been deprecated. In a recent
judgment of this Court reported as Government of Pakistan v.
Nawaz Ali Sheikh (2020 SCMR 656) it was held as under:
"13. No doubt, under Section 5 of the Service Tribunals Act,
the Service Tribunal enjoys powers to modify any Appellate
order but such power is to be exercised carefully judiciously
and with great circumspection by assigning cogent, valid and
legally sustainable reasons justifying such modification. We
fail to understand how and from where the Service Tribunal
derived the authority and jurisdiction to arbitrarily and
whimsically grant the relief that it has ended up granting to
the Respondent.
14. All Courts and Tribunals are required to act strictly in
accordance with law and all orders and judgments passed
by them must be entrenched and grounded on the
Constitution, the law and the rules. No Court, Authority or
Tribunal had any jurisdiction to grant any relief in favour of
any person which is not based upon the foundation of the
Constitution, the law and the rules. We notice that the
Service Tribunal has not assigned any reason whatsoever in
accepting the appeal of the Respondent in the manner noted
above, which it was required to do to justify the reduction in
penalty. In this regard, reference may usefully be made to
the case of "Chairman Dr. A. 0. Khan, Research Laboratories
Civil A ppeal No.201 of 2020
and another. v. Malik Muhammad Hamid Ullah Khan" (2010
SCRIP 302) as well as a judgment of this Court passed in
Civil Appeal No.1343 of 2017 in the case of Secretary,
Revenue, Division, Federal Board of Revenue, Islamabad
and another. v. Asf Y ousaf and another."
The aforesaid principles were reiterated by this
Court in the case of Chief Postmaster Faisalabad v.
Muhammad Afzal (2020 SCMR 1029) where it was held as
under:
"There is no cavil with the proposition that under
Section 5 of the Service Tribunals Act, the Tribunal enjoys
powers to modify any order passed by the departmental
authorities but such power is required to be exercised
carefully, judiciously and after recording reasons for the
same. In the present case, the penalty in question had been
imposed by the departmental authority on the basis of
established charges and the major penalty of dismissal from
service was imposed upon him in accordance with the law
and the rules. In these circumstances, we are at a loss to
understand how and from where the Tribunal derived the
authority to exercise a power in favour of the Respondent in
such an arbitrary unstructured and whimsical manner. We
have found the exercise of jurisdiction by the Tribunal to be
wholly without any lawful authority whatsoever, specially so
where no reasons, let alone cogent have been assigned for
exercise ofjurisdiction in this manner by the Tribunal.
8. All Courts/Tribunals seized of matters before them are
required to pass orders strictly in accordance with the
parameters of the Constitution, the law and the rules and
regulations lawfully framed under the law. No Court has any
jurisdiction to grant arbitrary relief without the support of
any power granted by the Constitution or the law. This basic
and fundamental principle of jurisprudence appears to have
eluded the attention of the Tribunal which has clearly
exceeded its jurisdiction power and authority in granting
relief to the Respondent.
10.
Further, the principles of law settled by this Court
in the cases reported as Government of the Punjab v.
Civil A ppeal No.201 or2020
10
Muhammad Arshad (2020 SCMR 1962) and District Police
Officer v. Muhammad Hanif (2020 SCMR 1610) are also to
the same effect as laid down in the cases of Chief Postmaster,
Faisalabad and Government of Pakistan (ibid).
11. We therefore find that the Tribunal has not only
exceeded its jurisdiction but exercised the same in a mariner
which is in complete violation of the settled principles of law
on the subject. Further, in converting the major penalty of
compulsory retirement from service into a minor penalty of
forfeiture of past service for a period of two years, the
Tribunal has failed to assign any cogent, legally sustainable
and valid reasons to support its finding. As such, the
impugned judgment can safely be termed as a non speaking
judgment which does not meet the test of a judicial verdict.
We have repeatedly held that although the Service Tribunal
has the discretion to interfere in questions of quantum of
punishment, such discretion can neither be arbitrarily and
capriciously exercised nor are powers of the Tribunal
unqualified or unlimited. Where the Tribunal exercises its
discretion to interfere in the penalty awarded by the
competent authorities, such discretion has to be exercised in
a circumscribed, restricted, carefully calibrated and
structured manner duly supported by legally sustainable
reasoning, which is conspicuous by its absence in the instant
case. We therefore find that the impugned judgment of the
Tribunal is not sustainable in law or fact and is liable to be
set aside.
herein.
Civil Appeal No.201 012020
11
4
12.
For reasons recorded above, we allow this Appeal,
set aside the impugned judgment of the Tribunal dated
18.09.20 19 and restore the penalty of compulsory retirement
from service imposed upon the Respondent by the
departmental authorities vide order dated 09.03.2017.
13.
Let a copy of this judgment be transmitted to
Chairman, Punjab Service Tribunal, Lahore for its circulation
amongst all members of the Tribunal for their perusal and
adherence to the principles of law enunciated and reiterated
ISLAMABAD, THE
13th April, 2021
ZR! 7Approved For Ing'
| {
"id": "C.A.201_2020.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE EJAZ AFZAL KHAN.
MR. JUSTICE SH. AZMAT SAEED.
C. A. NO. 204-L OF 2015, CMA. NO. 61 OF 2016 IN C. A. NO. 204-L OF 2015.
(On appeal against the judgment dt. 20.03.2015 passed by the Lahore High Court,
Lahore in C. R. Nos. 1575, 1882 and 1883 of 1999).
Province of the Punjab through Collector, Sheikhupura, etc. …Appellant(s)
Versus
Syed Ghazanfar Ali Shah, etc.
…Respondent(s)
AND
C. A. NO. 205-L OF 2015, CMA NOS. 974, 62 AND 117 OF 2016 IN C. A. NO.
205-L OF 2015.
Province of the Punjab through Collector, Sheikhupura, etc. …Appellant(s)
Versus
Iqbal Ahmad (decd) through his L.Rs. etc.
…Respondent(s)
AND
C. A. NO. 206-L OF 2015, CMA NOS. 63 OF 2016 AND 1604-L OF 2015 IN C. A.
NO. 206-L OF 2015.
(On appeal against the judgment dated 20.03.2015 passed by the Lahore
High Court, Lahore in C. R. Nos. 1575, 1882 and 1883 of 1999).
Province of the Punjab through Collector, Sheikhupura, etc. …Appellant(s)
Versus
Fazal Dad Khan, etc.
Iqbal Ahmad (decd) through his L.Rs. etc.
…Respondent(s)
For the appellant(s):
Mrs. Aasma Hamid, Addl. A. G. Pb.
Rana Shamshad Khan, Addl. A. G. Pb.
Rao M. Yousaf Khan, AOR (Absent)
(in all cases)
In CA.204-L/2015.
For respdt. 1:
Mr. M. Muzammil Khan, Sr. ASC.
For respdts. 2-3:
Mr. Tahir Naeem, ASC.
For respdts. 4-15:
N.R.
In CA.205-L/2015.
For respdts. 1, 2(b)-2(d), 3-8: Syed Najmul Hassan Kazmi, Sr. ASC
For respdt. 2(a) :
Raja M. Ibrahim Satti, Sr. ASC.
For L.Rs. of respdts. 10:
Mr. M. Muzammil Khan, Sr. ASC.
C. A. NO. 204-L OF 2015, CMA. NO. 61 OF 2016 IN C. A. NO. 204-L OF 2015
2
For respdts. 2(e) to 2(j), 9, 11-25:
N.R.
In CA.206-L/2015.
For respdt. 1 :
Ch. M. Masood Akhtar Bhan, Sr. ASC.
L.Rs. of respdt. 7:
Mr. M. Muzammil Khan, Sr. ASC.
For respdts. 2-6, 8-15:
N.R.
In CMAs. 61-63/2016:
Ms. Aasma Hamid, Addl. A. G. Pb.
(For bringing on record
Rana Shamshad Ahmed, Addl. A. G. Pb.
LRs of Syed Ghazanfar
Ali Shah).
In CMA. 117/16 :
Syed Ashiq Raza, ASC.
(Intervenor).
In CMAs. 974 and 1604/L/16:
Nemo.
(Intervenor).
Date of Hearing:
21.11.2016. (Judgment Reserved).
-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-
J U D G M E N T
EJAZ AFZAL KHAN, J.- These appeals with the leave of the
Court have arisen out of the judgment dated 20.03.2015 of the Lahore High
Court whereby the learned Single Judge in its chambers dismissed the
revisions petitions filed by the appellants and upheld the judgments and
decrees of the learned Appellate Court.
2.
Brief facts of the case are described in paragraph one of the
impugned judgment which reads as under :-
“Briefly the facts are that Syed Ghazanfar Ali Shah
and legal heirs of Syed Raza Ali Shah respondents
(hereinafter to be referred as plaintiffs) brought a suit
for possession with the assertion that land measuring
117 acres fully mentioned in the body of the plaint
was evacuee property, which was leased out to the
petitioners/Forest Department (hereinafter to be
referred as the defendants) for a term of twenty years
vide Notification dated 27.07.1950. However, out of
the said property a chunk of land measuring 13 acre
5 kanals and 12 marlas was released and restored to
the original owners on 27.1.1959 whereas rest of the
property measuring 103 acres 2 kanals and 8 marlas
remained in occupation of the defendants. It is also
averred in the plaint that whole of the disputed land
being evacuee property was available for allotment
to the displaced persons and after due verification of
C. A. NO. 204-L OF 2015, CMA. NO. 61 OF 2016 IN C. A. NO. 204-L OF 2015
3
claims of the plaintiffs the same was proposed to the
them, which was subsequently confirmed to the
plaintiffs by duly attestation of RL-II in pursuance of
the issuance of No Objection Certificate by the Forest
Department/defendants. It is also pleaded in the
plaint that as the disputed property was proposed to
the plaintiffs and later on it was confirmed, therefore,
property in disputed became private property and no
nexus
was
attached
with
the
Rehabilitation/
Settlement authorities whereas the lease period of
defendants was extended for another ten years,
which expired on 26.07.1980, but despite of the best
efforts made by them, the plaintiffs could not
succeed to take physical possession in spite of that
the defendants had no right to retain possession
thereof, which constrained the plaintiffs to institute
the suit for possession. The said suit was resisted by the
defendants with the assertions that disputed property
is owned by them and that no NOC was issued on
behalf of the department.”
3.
The points raised and noted at the time of grant of leave read
as under:-
“The suit for possession filed by the respondents vis-à-
vis 117 acres of land has been decreed by the
learned Trial Court only to the extent of 13 acres and
5 marlas, but it was dismissed to the extent of 103
acres and 2 marlas. The respondents challenged this
judgment and decree in appeal(s) which has been
accepted. The revision(s) filed by the petitioner has
also failed.
2.
Leave is granted in these cases, inter alia, to
consider whether the directive issued by the Chief
Settlement
Commissioner
dated
27.2.1965
was
operative retrospectively and would not in any way
entitle the respondents to have confirmation of the
suit land in their favour as evacuee property; whether
the courts below have rightly interpreted RL-II which
per se was conditional on the issuance of NOC by the
Forest Department when admittedly, till date there is
nothing on the record to establish if such NOC has
been issued by the Forest Department for the
confirmation of the suit land in favour of the
respondents; whether in the earlier round of litigation
the points now agitated especially about the
confirmation of land has been conclusively decided
by this Court in favour of the respondents and against
the petitioner, the Forest Department; whether the
property till date does not vest in the petitioner (Forest
Department) and the lease period in its favour has
also expired, thus the petitioner is bound and required
under the law to surrender the land to the
respondents, who were the allottees of the land and
in whose favour the confirmation has been made
vide RL-II dated 30.11.1964; whether RL-II was duly
and validly issued to the respondents and there is no
element of fraud and misrepresentation in this
C. A. NO. 204-L OF 2015, CMA. NO. 61 OF 2016 IN C. A. NO. 204-L OF 2015
4
context; whether RL-II has been validly and properly
construed and relied upon by the courts below.”
4.
Before the learned AAG for the appellants could take the
rostrum to open up her case, a preliminary objection was raised by the
learned ASC for the respondents for dismissal of appeal on account of
having been filed against the dead persons. The learned AAG repelled the
contention of the learned ASC for the respondents by submitting that
where the appeal was filed against more than one person, death of one or
two of the respondents would not render it liable to dismissal. To support her
contention learned AAG placed reliance on the cases of Farzand Ali and
another. Vs. Khuda Bakhsh and others (PLD 2015 SC 187) and Muhammad
Yar deceased through L.Rs. and others. Vs. Muhammad Amin deceased
through L.Rs. and others (2013 SCMR 464). She next contended that where
the record was completed and corrected at the instance of the
respondents themselves, appeal would not abate on this score. The
learned AAG to support her contention placed reliance on the case of
Niamat and another. Vs. Allah Banda and another (1984 SCMR 321). The
learned AAG arguing the case on merits contended that where the Chief
Settlement Commissioner placed ban on allotment of notified or un-notified
evacuee land in possession of Forest Department vide Memorandum
dated 27.02.1965, its allotment could not be confirmed in the name of any
claimant and that the judgments and decrees of the fora below as well as
the High Court being against law merit outright annulment. The learned
AAG to support her contention placed reliance on the cases of
Muhammad Ayub and others. Vs. The Province of Punjab (1989 SCMR 1033),
Province of Punjab. Vs. Muhammad Mahmood Shah (1991 SCMR 1426) and
Forest Department through Divisional forest Officer, Chhanga Manga,
Lahore. Vs. Muhammad Amin and 26 others (2002 SCMR 703). The learned
AAG next contended that mere allotment without confirmation does not
create any right much less vested, therefore, memorandum mentioned
above, would be applicable with all force and vigour to the allotment
C. A. NO. 204-L OF 2015, CMA. NO. 61 OF 2016 IN C. A. NO. 204-L OF 2015
5
which is subsequent to the date of issuance of memorandum. Learned
Additional Advocate General to support her contentions placed reliance
on the case of Mian Rafi-ud-Din and 6 others. Vs. Chief Settlement and
Rehabilitation Commissioner and 2 others (PLD 1971 SC 252). The learned
AAG went on to argue that where title of the respondents was disputed by
the appellants in their written statement by asserting their own title, mere
suit for possession without declaration could not be decreed. The learned
Addl. A. G. placed reliance on the cases of Muhammad Aslam. Vs. Mst.
Ferozi and others (PLD 2001 SC 213) and Sultan Mahmood Shah through
L.Rs. and others. Vs. Muhammad Din and 2 others (2005 SCMR 1872).
Deduction about issuance of NOC, the learned AAG contended, would be
just conjectural when it has not been proved through primary or secondary
evidence. She next contended that the letter purportedly issued by a
Minister could not be banked upon without knowing where did it come
from and whether it was ever issued by the Minister it was attributed to. She
lastly argued that neither the High Court nor the fora below considered the
documents showing that the land forming subject matter of dispute was in
fact purchased by the Forest Department.
5.
Learned ASC appearing on behalf of respondent contended
that the land being evacuee was allotted to Ghazanfar Ali, respondent No.
1 and his brother Ali Raza predecessor-in-interest of respondents No. 2 to 9;
that their status as allottees of the aforesaid land has never been disputed
nor has it been challenged in any Court of law; and that failure of the
appellants to challenge it at any stage of litigation would take away the
ground from beneath their feet to challenge it, even if, it is assumed without
conceding, that allotment in favour of the respondents was void. Even void
orders, the learned ASC added, have consequences if not questioned
within the prescribed period of limitation. The learned ASC to support his
contention placed reliance on the cases of Conforce Ltd. Vs. Syed Ali, etc
(PLD 1977 SC 599) and S. Sharif Ahmed Hashmi. Vs. Chairman Screening
Committee, Lahore and another (1978 SCMR 367). Application of
C. A. NO. 204-L OF 2015, CMA. NO. 61 OF 2016 IN C. A. NO. 204-L OF 2015
6
memorandum banning allotment of land in possession of Forest
Department, the learned ASC maintained, cannot be stretched to the
present case when the land stood allotted to the respondents before its
issuance, that too, when there is nothing in the memorandum providing for
its retrospective operation. The learned ASC next contended that no
documentary evidence has been brought on the record by the appellants
to show that the land in dispute has ever been sold to the Forest
Department, therefore, their claim about its sale was rightly turned down by
the Court of appeal as well as the Court of revision. Reliance on the cases
of Muhammad Ayub and others. Vs. The Province of Punjab, Province of
Punjab. Vs. Muhammad Mahmood Shah, and Forest Department through
Divisional forest Officer, Chhanga Manga, Lahore. Vs. Muhammad Amin
and 26 others (supra) the learned ASC argued, is misconceived when the
memorandum cannot override or extinguish a right accrued nor could it
restrict the powers of the Settlement Authority to allot the property. The
learned ASC next contended that the judgments rendered in the cases of
Muhammad Ayub and others. Vs. The Province of Punjab, Province of
Punjab. Vs. Muhammad Mahmood Shah, and Forest Department through
Divisional forest Officer, Chhanga Manga, Lahore. Vs. Muhammad Amin
and 26 others (supra), lack authoritative or even persuasive value when
they were rendered in derogation of an earlier three-member bench
judgment rendered in the case of Wali Muhammad. Vs. Settlement
Commissioner Sargodha Division, Sargodha and others (1984 SCMR 1574).
The learned ASC next contended that where a party did not raise
objection as to the admission of a document and its exhibition, it cannot
subsequently complain about its mode of proof. Latter loss or lapse in
production of the NOC, the learned ASC contended, would not have
much meaning once its existence finds mention in RL-II and the letter dated
13.11.1988 issued by the Minister for Forestry, Wildlife and Fisheries
Department. The said letter of the Minister, the learned ASC argued, would
also prove whether the land was purchased by the Forest Department or
C. A. NO. 204-L OF 2015, CMA. NO. 61 OF 2016 IN C. A. NO. 204-L OF 2015
7
closed for forestation. Suit for possession, the learned ASC contended, is the
only remedy when allotment of the land to the respondents has never
been challenged by the appellants. The learned ASC lastly argued that
when in another litigation between Mst. Sairan and the respondents, the
issue about the memorandum banning allotment of the land in possession
of Forest Department has been decided, the appellants who were party
thereto could not raise it again.
6.
Learned ASCs appearing on behalf of the applicants in
CMAs. No. 61, 974, 62, 117 and 63 of 2016 and 1604-L of 2015 pleaded for
their being impleaded as respondents in C. As. No. 204-L to 206-L of 2015 on
the ground of their being bonafide purchasers. The learned Addl. A. G.
opposed the CMAs for being impleaded as parties by contending that
plea of bonafide purchaser cannot be entertained nor the rights thus
acquired could be protected under Section 41 of the Transfer of Property
Act when the allotment itself does not hold good. The learned Addl. A. G.
to support his contention placed reliance on the cases of Gul Muhammad
and others. Vs. The Additional Settlement Commissioner and others (1985
SCMR 491) and Ejaz Ahmad Khan. Vs. Chahat and others (1987 SCMR 192).
7.
We have gone through the record carefully and considered
the submissions of learned Addl. A. Gs. Punjab and learned Sr. ASCs and
ASCs for the parties.
8.
A perusal of the impugned judgment would reveal that the
learned Single Judge of the High Court while concurring with the finding of
the learned Appellate Court mainly relied upon the extracts from the
record of rights, NOC, purportedly issued by a D.F.O, letter dated 18.12.1980
written by the Solicitor to the Government of Punjab and letter dated
13.11.1988 written by the Minister for Forestry, Wildlife and Fisheries. But none
of these documents has been brought on the record in conformity with the
mode provided by the Qanoon-i-Shahadat Order, 1984. Extracts from the
record of rights were produced and exhibited without examining the
Patwari. Who prepared and signed them and affirmed about their
C. A. NO. 204-L OF 2015, CMA. NO. 61 OF 2016 IN C. A. NO. 204-L OF 2015
8
correctness is anybody’s guess. Where did NOC come from, who issued,
and countersigned it and what is the latter fate of this document is again
anybody’s guess. How did the Solicitor edge in and where did the letter
purportedly written by him come from and how did it reach the hands of
the person producing it in the Court? How did the Minister step in the
matter when it was pending in the Court? Where did go the record of the
letter and the register showing its dispatch, if at all it was written? Why did
the respondents bypass the mode of proving the document prescribed by
Articles 2 and 78 of the Qanoon-e-Shahadat Order and what did constrain
the Court to rely upon them? How could, bringing of papers on the record,
be considered synonymous with proving them? All these questions are
fundamental and foundational but the learned Additional District Judge
hearing the appeal and the learned Single Judge of the High Court
hearing the revision petition relied on these documents without addressing
anyone of them.
9.
The argument that where a party did not raise objection as to
the admission of a document and its exhibition, it cannot subsequently
complain about its mode of proof has not impressed us as the provisions
governing the mode of proof cannot be compounded or dispensed with,
nor can the Court, which has to pronounce a judgment, as to the proof or
otherwise of the document be precluded to see whether the document
has been proved in accordance with law and can, as such, form basis of a
judgment. In the case of Messrs Bengal Friends and Co., DACCA. Vs. Messrs
Gour Benode Saha and Co., and The Deputy Registrar of Trade Marks,
Chittagong (PLD 1969 SC 477) this Court while dealing with the mode of
proof of the documents not properly brought on the record held as under :-
“Besides the authenticity of the account books relied
upon by the respondent that were not properly
brought on record as evidence of the transactions
mentioned therein. The learned Chief Justice in the
High Court ruled out the objection raised by the
appellant on the view that it related to mode of proof
of the entries in the account books and was not
raised before the Deputy Registrar of Trade Marks. It
was omitted from consideration that under section 34
C. A. NO. 204-L OF 2015, CMA. NO. 61 OF 2016 IN C. A. NO. 204-L OF 2015
9
of the Evidence Act entries in books of account
regularly kept in the course of business are only
declared to be relevant whenever they refer to a
matter into which the Court has to enquire. But this
does not dispense with the requirement of section 67,
that if a document is alleged to have been written by
any person, the signature or the handwriting of so
much of the document as is alleged to be in that
person's handwriting must be proved to be in his
handwriting. Mere production of account books kept
in regular course of business, therefore, does not
constitute evidence of entries contained therein. The
Legislature has made an exception in this behalf in
the Bankers' Books Evidence Act. Section 4 provides
as follows:
"Subject to the provisions of this Act, a certified
copy of any entry in a banker's book shall in all
legal proceedings be received as prima facie
evidence of the existence of such entry, and
shall be admitted as evidence of the matters,
transactions and accounts therein recorded in
every case where, and to the same extent as,
the original entry itself is now by law admissible,
but not further or otherwise."
In the absence of such a provision in the Evidence
Act regarding entries in books of account kept in
regular course of business the mere production of the
account books does not constitute evidence of the
transaction and accounts therein recorded. Mr. Israrul
Hossain further pointed out that the account books
containing Exh. G.B. 3 series were not even exhibited
by the Deputy Registrar. In the affidavit of the
respondent sworn on the 25th August 1958, in
paragraph the genuineness of the records, Exhs. G.B.
1 to G.B. 10, is affirmed, but this bald statement did
not constitute proof of the entries in these series unless
they were in his handwriting and he swore to the
correctness of the transactions mentioned therein.
The documents Exhs. G. B. 3 series relied upon by the
respondent No. 1 in support of his claim that since
1937 he had been selling on large scale in Bengal
and Assam including the riverine districts now
constituting East Pakistan coaltar bearing trade mark
"Jahaj Marka Al-katra" with a device of a ship were in
this view wrongly treated as evidence by the Courts
below.”
10.
In the case of Khan Muhammad Yusuf Khan Khattak. Vs. S. M.
Ayub and 2 others (PLD 1973 SC 160) this Court while dealing with an
identical issue held as under :-
“I am of the view that even if such documents are
brought on record and exhibited without objection,
they remain on the record as “exhibits” and faithful
copies of the contents of the original but they cannot
be treated as evidence of the original having been
C. A. NO. 204-L OF 2015, CMA. NO. 61 OF 2016 IN C. A. NO. 204-L OF 2015
10
signed and written by the persons who purport to
have written or signed them, unless the writing or the
signature of that person is proved in terms of the
mandatory provisions of section 67 of the Evidence
Act. If instead of the copy Exh. P.E., the original form
“E” which formed the primary evidence, had been
exhibited on the record without proving as to who
was its author can it be argued that by merely
exhibiting it, the document should be taken for
granted as bearing the signature of the appellant
without proof that in fact it was written and signed by
him. The onus obviously lay on the respondent to
prove this fact and his failure to prove it did not cast
any responsibility n the appellant to negatively
disprove it. “
11.
The argument that latter loss or lapse in production of the
NOC would not have much meaning once its existence finds mention in RL-
II and the letter dated 13.11.1988 issued by the Minister for Forestry, Wildlife
and Fisheries Department, has also not impressed us when it did not see the
light of the day at any stage. We, therefore, have no hesitation to hold that
deduction about the issuance of NOC being conjectural has no evidential
basis.
12.
The argument that when in another litigation between Mst.
Sairan and the respondents, the issue about the memorandum banning
allotment of land in possession of the Forest Department has been
decided, the appellants who were party thereto could not raise it again is
misconceived, firstly because the litigation referred to above ended up in
rejection of plaint, and since rejection of plaint does not operate as res-
judicata, against the plaintiff in the subsequent suit, it cannot operate as
such against a party who was defendant; and secondly because all the
Courts in the said litigation having focused on the question of title between
the rival claimants, decided the question of title only, without attending to
the question of law and the judgments rendered in the cases of
Muhammad Ayub and others. Vs. The Province of Punjab and Province of
Punjab. Vs. Muhammad Mahmood Shah (supra). Therefore, reference to
the previous litigation would not be of any help to the respondents.
C. A. NO. 204-L OF 2015, CMA. NO. 61 OF 2016 IN C. A. NO. 204-L OF 2015
11
13.
Let us pause here for a while to see where did the
memorandum dated 27.02.1965 come from and what did it stand for? This
memorandum was issued by the Chief Settlement Commissioner under
paragraph 4-A of the Rehabilitation Settlement Scheme, who had the
power to exclude land from allotment where it was required for public
purpose. The memorandum provided as under:-
“On the representation of Forest Department it has
been decided by the Chief Settlement Commissioner
that evacuee lands in possession of the Forest
Department whether notified or un-notified should not
be allotted against claims under the provision of the
West Pakistan Rehabilitation Settlement Scheme till
further orders. “
The memorandum reproduced above provides that evacuee land
in possession of the Forest Department whether notified or un-notified could
not be allotted against claims under the provisions of the West Pakistan
Rehabilitation Settlement Scheme, till further orders. Additional Settlement
Commissioner or any other Officer in the hierarchy being subordinate to the
Chief Settlement Commissioner could not nullify or neutralize its effect
unless, of course, ordered otherwise by the Chief Settlement Commissioner
himself. It does not give any power or authority even to the Forest
Department to nullify or neutralize its effect, or read something in it what is
not there. Allottee, too, could not ask for allotment of land on the condition
of managing its retrieval from the Forest Department on his own when he
does not figure anywhere in the scheme of the memorandum. We do not
understand what prevailed on the Additional Commissioner to confirm
allotment on the undertaking of the respondents or on the basis of NOC of
the Forest Department, if at all it is assumed to have any existence, outside
the record, when the memorandum does not provide for either of them.
We thus hold that the allotment confirmed in derogation of memorandum
dated 27.02.1965 cannot hold good. In the case of Muhammad Ayub and
others. Vs. The Province of Punjab (supra) this Court while dealing with an
identical issue held as under:-
C. A. NO. 204-L OF 2015, CMA. NO. 61 OF 2016 IN C. A. NO. 204-L OF 2015
12
“The suit was dismissed by the learned trial Court
observing "that the plaintiffs never got possession and
that many trees have been grown up there in the
supervision of the Forest Department" and, therefore
the claim of the petitioners that they were in possession
which was allegedly interfered with by the Forest
Department, was not well founded. It was also held on
account
of
Memorandum
No.65/775-RL,
dated
27-2-1965 from the Chief Settlement Commissioner
Lahore
to
the
Deputy
Commissioners,
Sialkot,
Gujranwala, Sheikhupura, Gujrat, Rawalpindi, Jhelum
and Attock on the subject of "disposal of evacuee land
in possession of Forest Department" which was to the
effect that evacuee lands in possession of the Forest
Department whether notified or unnoticed were not to
be allotted against any claim under the provisions of
the West Pakistan Rehabilitation Settlement Scheme,
the allotment of this land in favour of Muhammad Din
on 1-3-1966 against his verified claim was itself not valid
and the subsequent sale of this land in favour of the
petitioners did not confer any title on them. The
aforesaid judgment and decree was upheld by the,
learned District Judge on appeal and again by the.
High Court on revision. Hence this petition for leave.”
14.
In the case of Province of Punjab. Vs. Muhammad Mahmood
Shah (supra) the same view was restated with much greater clarity and
emphasis in the paragraph which reads as under :-
“9. Under paragraph 4-A of the Rehabilitation
Settlement
Scheme,
the
Chief
Settlement
Commissioner had the power to direct the exclusion
of land from allotment where it was required for a
public purpose. While so excluding by his directive
dated 27-2-1965, the Chief Settlement Commissioner
was acting within hi; lawful authority. The High Court,
however, did not approve of it in a case (Civil
Appeal. No.155 of 1983) where the allotment had
been made for the first time on 18-4-1968, by
observing as hereunder:---
"The main ground on which the Settlement
Commissioner set aside the allotment of the
petitioners was the order of the Chief Settlement
Commissioner
dated
27-2-1965
mentioned
above restraining the district authorities from
allotting such lands as were in possession of the
Forest Department. The copy of the Jamabandi
for the year 1905-66, however, shows that the
possession over some of the land in question at
that time was that of the petitioners but he did
not go into the same. In any case it has recently
been held by a Division Bench of this Court in
Inayat
Bibi
etc.
v.
Assistant
Settlement
Commissioner
and
Chief
Settlement
Commissioner PLD 1978 Lah. 252 that the Chief
Settlement Commissioner could not issue such
instructions restraining statutory functionaries to
C. A. NO. 204-L OF 2015, CMA. NO. 61 OF 2016 IN C. A. NO. 204-L OF 2015
13
allot land against the claims. The letter dated
27th February, 1965 is thus without lawful
authority and of no legal effect: "
Another paragraph which is extremely relevant in this behalf also
merits a look and thus reads as under :-
10. The decision referred to and relied upon for
recording the above findings related to absolute
prohibition against making the allotments and not
qualified prohibition as is contained in paragraph 4-A
of the Rehabilitation Settlement Scheme. Hence, the
very basis for the decision is incorrect. In a decision of
this Court in Muhammad Ayub and others v. The
Province of Punjab (1989 SCMR 1033), the allotments
made on 1-3-1966 were held to be violative of the
directive of the Chief Settlement Commissioner dated
27-2-1965. The law point involved in all these cases
has received an authoritative pronouncement in
Mian Rafi-ud-Din and 6 others v. The Chief Settlement
and Rehabilitation Commissioner and 2 others P L D
1971 S C 252 in the following words:--
“It is necessary in my view to keep in mind that
there is a distinction between the right to claim
a transfer and the right to the transfer and the
right to the transference of the property itself.
The provisions of the Schedule indicated the
persons or the category of persons who can
claim the transfer of a particular property but
the right to the transfer of the property accrues
or becomes vested only after a final order for
such transfer has been made in accordance
with the provisions of the Act itself, the
Schemes, the rules framed under the Act and
the instructions from time to time issued. Until a
final order of transfer has been made it cannot
be said that the property has been disposed of
and is no longer available for transfer. It is only
when a property is no longer available for
transfer
that
an
order
of
the
Central
Government laying down a different mode of
disposal will not affect it, on the principle that
change in the mode of transfer cannot reopen
a past and closed transaction."
15.
In the concluding part of the judgment only those lands have
been excluded from the purview of the memorandum in which the
confirmation of allotment was made before 27.02.1965. The land forming
subject matter of dispute in this case would be fully covered by the
memorandum when its allotment was admittedly confirmed on 30.04.1965.
C. A. NO. 204-L OF 2015, CMA. NO. 61 OF 2016 IN C. A. NO. 204-L OF 2015
14
16.
The same view was reiterated in the case of Forest
Department through Divisional forest Officer, Chhanga Manga, Lahore. Vs.
Muhammad Amin and 26 others (supra).
17.
The argument that failure of the appellants to challenge
confirmation of allotment in favour of the respondents at any stage of the
litigation would takeaway the ground from beneath their feet to challenge
it even if it is assumed that allotment in favour of the respondents was void,
is devoid of force as the appellants despite enjoying uninterrupted
possession have been questioning the confirmation of allotment in favour
of respondents at every forum including Civil Courts and even in the
litigation culminating in the instant appeals. The argument that even void
orders have consequences if not questioned within the prescribed period
of limitation would have been tenable had the appellants abated legal
fight at any stage. Their unabated fight even in the second round of
litigation initiated at the instance of the respondents speaks for itself.
Therefore, the judgments rendered in the cases of Conforce Ltd. Vs. Syed
Ali, etc and S. Sharif Ahmed Hashmi. Vs. Chairman Screening Committee,
Lahore and another (supra) have no relevance to the case in hand.
18.
The argument that the judgments rendered in the cases of
Muhammad Ayub and others. Vs. The Province of Punjab, Province of
Punjab. Vs. Muhammad Mahmood Shah and Forest Department through
Divisional forest Officer, Chhanga Manga, Lahore. Vs. Muhammad Amin
and 26 others (supra) lack authoritative and even persuasive value when
they were rendered in derogation of an earlier three-member bench
judgment rendered in the case of Wali Muhammad. Vs. Settlement
Commissioner Sargodha Division, Sargodha and others (supra) is not
correct as the former deal with the memorandum dated 27.02.1965 while
the latter deals with the memorandum dated 25.06.1973. The first having
been issued by the Chief Settlement Commissioner under paragraph 4-A of
the Rehabilitation Settlement Scheme was held to be intra vires and any
C. A. NO. 204-L OF 2015, CMA. NO. 61 OF 2016 IN C. A. NO. 204-L OF 2015
15
allotment confirmed in derogation of the said memorandum was held to
be of no effect. Whereas the second having been issued without
jurisdiction and lawful authority was declared void and so was the
cancellation or allotment made thereunder. Therefore, no parallel can be
drawn between the memoranda mentioned above nor between the
judgments rendered in the cases of Muhammad Ayub and others. Vs. The
Province of Punjab, Province of Punjab. Vs. Muhammad Mahmood Shah
and Forest Department through Divisional forest Officer, Chhanga Manga,
Lahore. Vs. Muhammad Amin and 26 others (supra) and the one rendered
in the case of Wali Muhammad. Vs. Settlement Commissioner Sargodha
Division, Sargodha and others (supra). Allotment without confirmation has
also been held to be of no effect by a five-member bench of this Court in
the case of Mian Rafi-ud-Din and 6 others. Vs. Chief Settlement and
Rehabilitation Commissioner and 2 others (supra) which has been taken
notice of and referred to in the case of Province of Punjab. Vs. Muhammad
Mahmood Shah (supra).
19.
The argument that where no documentary evidence has
been brought on the record by the appellants to show that the land in
dispute was ever sold to the Forest Department, their claim about its sale
was rightly turned down would have been relevant had the allotment in
favour of the respondents been confirmed in conformity with the
memorandum issued under paragraph 4-A of the Rehabilitation Settlement
Scheme.
20.
The argument that the memorandum banning allotment of
the land cannot be stretched to the case in hand in the absence of
anything providing for its retrospective effect, is also misconceived when
allotment in favour of the respondents was confirmed after issuance of the
memorandum mentioned above.
21.
Form of suit also does not appear to be proper when the
respondents did not ask for declaration, in spite of the fact that their title to
the land in dispute was seriously disputed by the appellants. Reference to
C. A. NO. 204-L OF 2015, CMA. NO. 61 OF 2016 IN C. A. NO. 204-L OF 2015
16
the cases of Muhammad Aslam. Vs. Mst. Ferozi and others and Sultan
Mahmood Shah through L.Rs. and others. Vs. Muhammad Din and 2 others
(supra) would not be out of context.
22.
The argument that applicants be impleaded as party on
account of being bonafide purchasers is devoid of force, where the
original allotment made in favour of the vendors cannot hold the field. The
cases of Muhammad Yamin and others. Vs. Settlement Commissioner and
others (1976 SCMR 489), Manzoor Hussain. Vs. Fazal Hussain and others
(1984 SCMR 1027) Gul Muhammad and others. Vs. The Additional
Settlement Commissioner and others (1985 SCMR 491) and Ejaz Ahmad
Khan. Vs. Chahat and others (1987 SCMR 192) may well be referred to in this
behalf. The argument of the learned ASC for the respondents seeking
dismissal of appeals on account of having been filed against the dead
persons need not be addressed at length when it has been befittingly dealt
in the judgments rendered in the cases of Farzand Ali and another. Vs.
Khuda Bakhsh and others, Muhammad Yar deceased through L.Rs. and
others. Vs. Muhammad Amin deceased through L.Rs. and others and
Niamat and another. Vs. Allah Banda and another (supra).
23.
Having thus considered, we allow these appeals, set aside the
impugned judgments and decrees with no order as to costs.
CMAs. NO. 61 TO 63, 117, 974 AND 1604-L OF 2016.
These CMAs are disposed of accordingly.
JUDGE
JUDGE
Announced in open Court at Islamabad on 25.11.2016
JUDGE
‘NOT APPROVED FOR REPORTING’
M. Azhar Malik
| {
"id": "C.A.204-L_2015.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE MUSHIR ALAM
MR. JUSTICE FAISAL ARAB
CIVIL APPEAL NO. 2084 OF 2016
(On
appeal
against
the
judgment
dated
29.06.2016 passed by the High Court of Sindh,
Karachi in IInd Appeal No. 85/2011)
Hafiz Muhammad Iqbal
… Appellant
VERSUS
Gul-e-Nasreen etc.
… Respondents
For the Appellant:
Mr. Shahid Anwar Bajwa, ASC
For Respondents (1 & 2(c):
Mr. Jawad S. Sarwana, ASC
Date of Hearing:
28.06.2019
JUDGMENT
FAISAL ARAB, J.- Being in the service of Pakistan
Army, respondent No. 2 was entitled to buy a residential and a
commercial plot in Defence Housing Authority, Karachi (DHA for
short). On the basis of such entitlement, she applied to DHA for a
2000 square yard residential and a 200 square yard commercial
plot which were allotted to her in December, 1973. All dues and
charges for such allotments were cleared by 1983 and the plots
were transferred in her name. In the same year she got the 2000
square yards residential plot bifurcated, which were assigned plot
Nos.57/1 and 57/2 having an area of 1000 square yards each. She
retired from service in the same year i.e. in 1983.
2.
In 1986 respondent No.1, who is younger sister of
respondent No.2, filed a suit against respondent No.2 and sought
CIVIL APPEAL NO. 2084 OF 2016
2
declaration that she is the real owner of the plots and respondent
No.2 is only an ostensible owner i.e. a ‘Benamidar’. The basis to
seek such a declaration was that as respondent No.2 was neither
interested nor had funds to pay for the plots so respondent No. 1
offered that she would make all payments for the plots to DHA and
became their owner to which respondent No.2 agreed. Based on
such understanding, the respondent No.2 applied to DHA for the
allotment of a residential and commercial plots for which the entire
price was paid by respondent No. 1. It is also the case of the
respondent No.1 that after respondent No.2 retired from service in
1983, she came to live with respondent No.1 at her Karachi
residence and when asked to transfer the plots in respondent
No.1’s name she refused and thus the relations between them
became estranged with the result that respondent No.2 left the
house and went to reside with her old colleague. It was further
stated in the plaint that in May, 1986 when respondent No.1 came
to know that respondent No.2 has entered into a sale transaction
with someone in relation to one of the residential plots and the
process of transfer was pending with DHA, she got alarmed that
gave her the cause to file the suit for declaration and permanent
injunction. The respondent No.1 obtained injunctive orders from
the Court against the respondent No.2 and the DHA in order to
prevent alienation of the plots until her claim was decided in the
suit.
3.
During the pendency of the suit, the appellant, a
stranger to the above mentioned controversy between the two
sisters, interjected in the suit by filing an application under Order
CIVIL APPEAL NO. 2084 OF 2016
3
1 Rule 10 CPC for his joinder as a defendant, on the strength of his
claim that respondent No. 2 has entered into sale transaction for
the residential plots with him. His application was allowed and the
court joined him as a defendant. After recording of the evidence of
the parties, the court held that respondent No.1 failed to establish
that she is the real owner of the plot and dismissed the suit.
Respondent No. 1 preferred first appeal which was also dismissed.
She then filed second appeal in the High Court of Sindh, which
was allowed vide impugned judgment. The High Court reversed the
findings of the courts below after holding that respondent No. 1
has established in the evidence that there was an understanding
between the two sisters that the payments for the plots would be
made by respondent No.1 and become the real owner which was
accordingly paid by her to DHA and respondent No.2 became just
an ostensible owner.
4.
The respondent No. 2 died during the pendency of the
proceedings. Though her heirs were made party in the proceedings
at the appellate stage, none of them came forward to challenge the
decision of the High Court before this Court, hence insofar as
respondent No.1’s claim that her proprietary interest has been
created in the suit property has attained finality, leaving the
appellant to file appeal in this Court on the strength of his plea
that he was a bona fide purchaser for valuable consideration.
5.
Learned counsel for the appellant submitted that the
trial court and the first appellate court, after examining the
evidence adduced by the parties, rightly came to the conclusion
CIVIL APPEAL NO. 2084 OF 2016
4
that respondent No. 2 was not a ‘Benamidar’ and fully competent
to deal with the plots as a real owner, such finding ought not to
have been reversed by the High Court in second appeal, scope of
which is very limited. As to the title document of plots coming in
the hands of respondent No.1, he submitted that the address of
respondent No. 1 was given to DHA only for the purpose of
communication as she from time to time was posted in several
parts of the country and on account of this fact the respondent
No.1 came in possession of title documents of the plots which she
was holding in trust for respondent No.2. Learned counsel
maintained that merely coming in possession of title documents or
demonstrating that payments have been made by her to DHA,
which is otherwise not factually correct, would not make
respondent No.1 real owner of the suit properties. Learned counsel
lastly contended that the High Court also erred in holding that the
appellant failed to establish that he is a bona fide purchaser for
value when it has come in the evidence that he entered into sale
transaction with respondent No.2 in whose name the open plots
stood in her capacity as original allottee in the records of DHA and
no steps were taken by respondent No.1 to get the plots transferred
in her name.
6.
Learned counsel for the respondent No. 1 in rebuttal
submitted that his client has sufficiently established in evidence
that based on the understanding between the two sisters she alone
paid the entire amount for both the plots in the name of the
respondent No.2 and was also given possession of the original title
documents thereby disentitling the respondent No. 2 from
CIVIL APPEAL NO. 2084 OF 2016
5
subsequently claiming to be the real owner. He next contended
that the burden to prove that the appellant was a bona fide
purchaser was on the appellant, which he failed to discharge as in
absence of examining the original title documents of the plots,
which were with respondent No.1, he paid the entire sale
consideration to respondent No.2.
7.
After the High Court reversed the findings of the courts
below and declared respondent No.1 to be the real owner and
respondent No.2 merely a ‘Benamidar’ no appeal has been
preferred by any of the heirs of respondent No.2 after her demise
before this Court though they were made party in the first
Appellate Court as well as in the High Court. Notwithstanding the
finding of the High Court, which creates proprietary interest of the
respondent No. 1 in the suit plots, the fact remains that the plots
were allotted to respondent No.2 only for the reason that she was
in service of Pak Army. This entitlement for allotment of plots by
itself has its own value, apart from the price that is paid to DHA.
Had the plots in question been purchased by respondent No.1 from
the open market, the price would have been much higher than
what was actually paid. Therefore, irrespective of the fact that it
was held by the High Court that respondent No. 1 paid the entire
amount to DHA for both the plots from her own source, as held in
second appeal, the fact remains that the plots were allotted, not at
their full market value but at concessionary price only for the
reason that respondent No.2 was in the service of Pak Army. In
this peculiar circumstance, the monetary contribution made by
respondent No.1 cannot be regarded as the true reflection of the
CIVIL APPEAL NO. 2084 OF 2016
6
entire value of the suit property and hence cannot be regarded as
sufficient to treat respondent No.1 full owner of the suit property
though she paid the entire price. Therefore, in our assessment,
respondent No. 1’s share in the plots on account of her financial
contribution cannot be considered more than half and the
remaining half has to be attributed purely to respondent No. 2 on
account of the privilege which she enjoyed in seeking allotment
from DHA at much lower rate than the true market value. Based
on such distinction, respondent No.2 was entitled to sell one of the
two residential plots. She in fact got the original residential plot
bearing No. 57 bifurcated into two in 1983 i.e. plot No.57/1 and
57/2 and entered into sale transaction with regard to plot No.57/1
in 1986. The respondent No.2 in equity was justified in entering into
sale transaction with the appellant for the first plot i.e. plot No.57/1.
8.
As regards the sale transaction relating to plot No.
57/2, the appellant has claimed that he purchased plot No.57/2
and sale consideration was shown to be Rs.250,000/- paid
through pay order No. AO/C192426 dated 05.05.1986. If the sale
consideration of Rs.250,000/- had already been settled for plot No.
57/2 on or before 05.05.1986 then it is surprising that the
agreement which was executed for this plot on 06.05.1986 neither
refers to any pay order nor the price that was settled was printed
with the remaining text of the agreement as the consideration of
Rs.250,000/- for plot No.57/2 is written in a handwriting after
erasing the printed matter whereas in the same situation, the
consideration of Rs.425,000/- settled for plot No.57/1 in the first
agreement executed on the same date i.e. 06.05.1986 was printed
CIVIL APPEAL NO. 2084 OF 2016
7
along with the remaining text. Secondly, there is a marked
difference in the sale consideration of both the plots as well i.e.
Rs.425,000/- for plot No.57/1 and Rs.250,000/- for plot No.57/2.
This casts some doubt as to the genuineness of the agreement
relating to plot No.57/2 and probably the deal for plot No.57/2 was
belatedly came up to defeat the claim of respondent No.1 as the
factum of two separate agreements is neither mentioned in the
application filed by the appellant for joinder under Order 1 Rule 10
CPC application nor in his written statement and in the first
instance respondent No.2 in her counter affidavit to injunction
application also denied sale transaction with regard to plot
No.57/2. Even otherwise, ample discretion lies with the Court to
deny the relief to a purchaser of an immovable property keeping in
view the circumstances of each as he cannot claim specific
performance of a contract as a matter of right even where it is
lawful to do so. In this regard, reliance can be placed on the
judgments of Ghulam Nabi Vs. Muhammad Yaqoob (PLD 1983 SC
344), Sirbaland Vs. Allah Loke (1996 SCMR 575) Muhammad
Sharif Vs. Nabi Bakhsh (2012 SCMR 900), Farzand Ali Vs. Khuda
Bakhsh (PLD 2015 SC 187), Adil Tiwana Vs. Shaukat Ullah Khan
Bangash (2015 SCMR 828) and Muhammad Abdur Rehman
Qureshi Vs. Sagheer Ahmad (2017 SCMR 1696) where this
principle has been laid down by this Court.
9.
For what has been discussed above, the impugned
judgment is modified to the extent that the appellant is entitled to
plot No.57/1 whereas the respondent No.1 has become entitled to
plot No.57/2 and 50% share in the 200 yards commercial plot. The
CIVIL APPEAL NO. 2084 OF 2016
8
remaining 50% in the commercial plot shall devolve upon the heirs
of respondent No.2 in accordance with law of inheritance, which
include respondent No.1 being one of the heirs of respondent No.2.
10.
This appeal was partly allowed vide short order dated
28.06.2019 and the above are the reasons for the same.
JUDGE
JUDGE
Karachi, the
28th of June, 2019
Not Approved For Reporting
Khurram
| {
"id": "C.A.2084_2016.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE MIAN SAQIB NISAR, HCJ
MR. JUSTICE UMAR ATA BANDIAL
MR. JUSTICE FAISAL ARAB
CIVIL APPEAL NOs. 2105 & 2106 OF 2008
(On appeal against the judgment dated 18.1.2008 passed by
the High Court of Sindh, Karachi in Spl. HCA No. 29/2001
and First Appeal No. 01/1998)
Miss Rukhsana Murrad etc
(In both cases)
… Appellants
VERSUS
National Bank of Pakistan
(In both cases)
… Respondents
For the Appellants:
Syed Iftikhar Hussain Gillani, Sr. ASC
For the Respondent:
Mr. M. Rasheed Qamar, ASC
Date of Hearing:
02.05.2017
JUDGMENT
FAISAL
ARAB,
J.-
Leather
Goods
International
(hereinafter referred to as ‘LGI’), a sole proprietorship concern of the
predecessor-in-interest of the appellants was engaged in the
manufacture and export of leather garments. For its production needs,
it had been availing financial facilities from respondent bank from time
to time. The case of the respondent bank is that in January, 1987, LGI
applied for a running finance facility which was sanctioned on
25.01.1987 to the extent of Rs.675,000.00. In this regard, LGI
executed an agreement of finance on 18.02.1987. The finance was
repayable with markup by 30.06.1987. To secure this financial facility,
LGI pledged its goods, hypothecated its machinery, assigned the
proceeds of life insurance policy of its proprietor, created equitable
mortgage on Plot No. 16-C Lane 9, Phase-II Extension, Defence
CIVIL APPEAL NOs. 2105 & 2106 OF 2008
2
Housing Authority, Karachi and executed a promissory note. All
security documents were also executed on 18.02.1987. As against
such facility, substantial part of outstanding amount and markup was
recovered leaving a balance of Rs.261,775.76.
2.
To seek recovery of the remaining amount, the respondent
bank served a legal notice upon LGI on 19.09.1988 but it failed to
make any payment. The respondent bank was thus constrained to file
suit for recovery on 28.08.1989 in the Banking Tribunal for Sindh and
Balochistan at Karachi. This suit was later numbered as 905/1991. In
the written statement, LGI denied that it availed any finance under the
agreement dated 18.02.1987 and termed all documents executed on
18.02.1987 to be forged. In this manner, the validity of the claim made
in the banking suit was questioned. The parties then adduced their
respective evidence. The Banking Court dismissed the suit on
18.08.1997 after holding that no amount was disbursed under the
agreement of finance dated 18.02.1987. The respondent bank then
preferred appeal. In the meanwhile, having succeeded in getting the
banking suit filed by respondent bank dismissed on 18.08.1997, LGI
filed its own suit in 1998 bearing No. 773/1998 claiming damages. In
the suit for damages, it was claimed that recoveries made under the
agreement dated 18.02.1987, when no finance was disbursed, caused
a huge loss of business to LGI including sale of valuable plot for a
meager amount. Keeping in view the findings in respondent’s suit that
no amount was disbursed to LGI under agreement dated 18.02.1987,
the suit for damages filed by LGI was decreed by the Banking Court.
Against such decree also the respondent Bank filed appeal. Both the
appeals, one filed against dismissal of respondent bank’s recovery suit
and the other filed against award of damages in the suit filed by LGI,
CIVIL APPEAL NOs. 2105 & 2106 OF 2008
3
were clubbed together and allowed by the High Court vide impugned
judgment dated 18.01.2008. Aggrieved by such decision, the present
appeals were preferred.
3.
Learned counsel for the appellants argued that the
evidence shows that after execution of the finance agreement dated
18.02.1987 no amount was disbursed, yet the plot valuing millions of
rupees was sold for a meager amount of Rs.400,000.00 and the
proceeds of insurance policy were appropriated by the respondent
bank, therefore, the Banking Court rightly awarded damages to LGI.
He next submitted that the evidence of the respondent bank also
disclosed contradiction in the pleadings which was also ignored by the
High Court as it was deposed by bank’s witness that the finance in
dispute was sanctioned by the State Bank whereas in his cross-
examination it was admitted that the finance was never sanctioned by
State Bank. He, therefore, contended that while deciding the appeals,
the Division Bench of the High Court erred in decreeing the suit of the
respondent bank and dismissing the suit of the LGI by misreading the
evidence on record, which decision is liable to be reversed.
4.
In rebuttal, learned counsel for the respondent bank
though conceded that no amount was disbursed after the execution of
the agreement on 18.02.1987 but it was explained that this agreement
was intended to cover LGI’s obligation towards Part-I of the Export Re-
finance Scheme availed by it on 27.08.1986 as well as the penalty
which was imposed by the State Bank on 25.09.1986 on account of
LGI’s failure to meet export target under previous Part II of the Export
Refinance facility. Against both the heads, State Bank had issued a
debit voucher to the respondent bank and in order to settle State
CIVIL APPEAL NOs. 2105 & 2106 OF 2008
4
Bank’s above-referred claim against LGI and keep its account
regularized, the respondent bank at the request of LGI sanctioned the
financial facility of Rs.675,000.00 on 25.01.1987. Thereafter,
agreement of finance along with other security documents were
executed on 18.02.1987 and Rs.675,000.00 were credited to the
account of LGI and from this account, State Bank’s outstanding claim
for Rs.671,841.00 was settled. He submitted that this also explains
the innocuous contradiction of respondent bank’s witness as to which
of the two sanctioned the finance i.e. the State Bank or the respondent
bank. He further submitted that there was also an admission in a
letter written by LGI to respondent Bank on 12.05.1987 that a sum of
Rs.640,324.00 was still payable and proposed that Rs.450,000.00
would be adjusted from the sale of the mortgaged plot and the
remaining balance from the proceeds of the insurance policy assigned
to the respondent bank as well as from the sale proceeds of the
pledged stock. Learned counsel for the respondent bank maintained
that in this background the High Court rightly allowed the appeals.
5.
It has come in evidence that between the years 1984 and
1986 LGI had been availing various financial facilities under Part-I and
Part-II of State Bank of Pakistan’s Export Refinance Scheme through
respondent bank’s Saddar branch, Karachi. The Export Re-Finance
Scheme allows the exporters to avail finance from State Bank to
finance their exports, which is adjustable against export proceeds. In
case no exports are made or there is a shortfall, the State Bank
imposes penalty. The last of the Export Refinance facilities availed by
LGI from State Bank was on 27.08.1986 bearing No. R-39/U-74 to the
extent of Rs.548,400.00 which was to be adjusted in 150 days against
the export proceeds i.e. by 24.01.1987. A shortfall in exports under
CIVIL APPEAL NOs. 2105 & 2106 OF 2008
5
the previous Part-II of Export Refinance facility had also occurred in
the meanwhile that resulted in imposition of penalty on 25.09.1986 by
State Bank to the tune of Rs.123,441.00. Thus, in all, a sum of
Rs.671,841.00 (Rs.548,400.00 availed under Part I of Export Refinance facility No.
R-39/U-74 plus Rs.123,441.00 towards State Bank’s penalty against Part I of Export
Refinance facility) became due and payable by LGI to the State Bank on
account of LGI’s failure to meet its export target. In LGI’s letter dated
24.11.1986 to the State Bank, the shortfall in exports and the
resultant imposition of penalty has been duly acknowledged. In fact in
this letter, LGI requested the State Bank to waive the penalty on
account of loss of export orders. So it was solely on account of LGI’s
failure to export leather garments promised under Export Refinance
Scheme that the State Bank perforce recovered Rs. 671,841.00 from
the respondent bank through which the Export Refinance facilities
were being availed by LGI. Thus it becomes abundantly clear that the
financial facility of Rs.675,000.00 was sanctioned by respondent bank
on 25.01.1987 for no other purpose except to facilitate LGI to adjust
Rs.671,841.00 which it owed to the State Bank. Ultimately, it was
from the financial facility of Rs.675,000.00 that Rs.671,841.00 were
paid to the State Bank of Pakistan on 18.02.1987 on behalf of LGI.
6.
The above factual position becomes even more clear
when LGI’s statement of account bearing No. 9014-6 (available at page
318 of the Paper Book) is scrutinized. The account No. 9014 was opened
on 18.02.1987 not at the instance of LGI but was necessitated due to
change over to computerized banking. In this account, LGI’s credit
balance of Rs.814.08 from its previous current account No. 3708
which was being made inoperative was transferred. In paragraphs 5
and 7 of the plaint in the suit bearing No. 773 of 1998, LGI has itself
CIVIL APPEAL NOs. 2105 & 2106 OF 2008
6
acknowledged that its current Account No. 3708 which had a credit
balance of Rs.814.08 became inoperative on 17.02.1987. Account No.
9014 further shows that on 18.02.1987, i.e. the day when the
agreement of finance was executed, a sum of Rs.671,841.00 was
debited. This debit entry reflects the payment made by the
respondent bank to the State Bank on LGI’s behalf covering
Rs.548,400.00 availed by LGI under Part I of Export Refinance facility
from State Bank on 27.08.1986 and Rs.123,441.00 being penalty
imposed by State Bank on account of short fall in LGI’s exports
under Part II of the Export Refinance facility availed earlier. Then
there are three debit entries of Rs.60,324.00, Rs.7,080.44.00 and
Rs.6,246.00
dated
24.06.1987,
30.06.1987
and
27.10.1987
respectively, all reflect payments made against State Bank’s penalty.
There is a debit entry of Rs.103,335.00 dated 30.06.1987 towards
charging of markup. Then there is a credit entry of Rs.29,275.80
dated 18.03.1987 in the statement of account which is downward
adjustment of State Bank’s penalty that was originally charged to the
extent of Rs.123,441.00 on 25.091986. As against the recovery made
by respondent bank against assignment of life insurance policy, a
credit entry to the extent of Rs.138,455.00 also appears on
22.09.1987. Then there is a credit entry dated 22.11.1987 for a sum
of Rs.400,000.00 which represents the amount recovered against the
consented sale of the mortgaged plot. It may be pointed out that LGI
in its letter dated 12.05.1987 had itself stated that the outstanding
amount would be liquidated from the proceeds of insurance policy
assigned to the respondent bank and from the sale proceeds of the
mortgaged plot. LGI for four long years never protested against
adjustment of proceeds of insurance policy and sale of mortgaged
plot. Only in the written statement filed in the recovery suit on
CIVIL APPEAL NOs. 2105 & 2106 OF 2008
7
15.10.1991 that LGI took the stand that no finance was availed
under the agreement of finance dated 18.02.1987. After adjustment
of above-referred entries in the statement of Account No. 9014-6, a
debit balance of Rs.261,775.96 finally remained outstanding against
LGI on 01.03.1989 and this was the amount for which respondent
bank filed recovery suit in Banking Court in 1989.
7.
From the above, it is abundantly clear that in fact the
agreement of finance dated 18.02.1987 for Rs.675,000.00 was
executed to regularize the amount which the respondent bank had to
pay perforce to the State Bank of Pakistan on 18.02.1987 on behalf of
LGI. In the evidence neither Rs.548,400.00 availed by LGI from State
Bank against Part I of the Export Refinance Scheme nor the penalty
imposed by State Bank against Part II of such facility availed earlier
was denied. In fact the same was acknowledged by LGI in its letters
dated 24.11.1986 and 12.05.1987. We have also noted that in letter
dated 12.5.1987, LGI had also acknowledged that there was an
outstanding
balance
of
Rs.640,324.10.
This
is
exactly
the
outstanding balance, which appears in the statement of account No.
9014-6 as on 03.04.1987. The plea of LGI that no finance was
disbursed after execution of the finance agreement dated 18.02.1987
for Rs.675,000.00 was though correct but it became quite evident
from the evidence discussed above that said agreement was executed
so that the finance is availed from respondent bank to settle
Rs.671,841.00 owed by LGI to the State Bank. In this background,
the plea that no amount was disbursed after the finance agreement
was executed on 18.02.1987 is of no legal consequence.
CIVIL APPEAL NOs. 2105 & 2106 OF 2008
8
8.
Taking into consideration the admissions made by LGI in
its letters dated 24.11.1986 and 12.05.1987 as well as the entries
contained in LGI’s bank statement of account No. 9014-6, the
Division Bench of the High Court while deciding both the appeals
vide impugned judgment rightly decreed the suit for recovery filed by
respondent bank and dismissed the suit for damages filed by LGI.
These appeals having no merit are accordingly dismissed.
CHIEF JUSTICE
JUDGE
JUDGE
Islamabad, the
2nd of May, 2017
Not Approved For Reporting
Khurram
| {
"id": "C.A.2105_2008.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
PRESENT:
MR. JUSTICE MIAN SAQIB NISAR, CJ
MR. JUSTICE MAQBOOL BAQAR
MR. JUSTICE IJAZ UL AHSAN
CIVIL APPEALS NO. 2109 TO 2139 OF 2016 AND
CIVIL PETITION NO. 516 OF 2017
(Against the judgment dated 08.06.2016 the Islamabad
High Court, Islamabad passed in I.C.As Nos. 368, 372,
377, 382, 383, 385, 387, 409, 415, 433, 375, 379, 382, 412,
406, 417, 429, 400, 402, 403, 423, 398, 414, 426, 374, 368,
416, 384/2015, CMA 2816/2016 in ICA 384/15 and ICA
411/2015)
AND
C.M.As. NO.5210, 7645/2016 in C.A.2109/2016
C.M.A. No. 6094/2016 in C.A.2136/2016
Federation of Pakistan through Secretary,
Establishment Division, & others
(in CA 2109-2118/16)
Muhammad Ashraf & others
(in CA 2119/16)
Ms. Rubina Tayyab & others
(in CA 2120/16)
Muhammad Zahid & others
(in CA 2121/16)
Sq.Ldr.(R) M. Irfan Elahi & others
(in CA 2122/16)
Yousaf Naseem Khokhar & others
(in CA 2123/16)
Capt. (R) Ejaz Ahmed
(in CA 2124/16)
Samin Ullah Khan Gandapur
(in CA 2125/16)
Capt (R) Tariq Hayat Khan
(in CA 2126/16)
Dr. Kamran Fazal
(in CA 2127/16)
Malik Tahir Sarfraz Awan
(in CA 2128/16)
Khawaja Umar Mehdi
(in CA 2129/16)
Sohail Akhtar
(in CA 2130/16)
Imran Tariq
(in CA 2131/16)
Muhammad Ayub Minhas
(in CAs 2132-2134/16)
Mukhtar Ahmed Baig
(in CA 2135/16)
Sohail Muhammad Khan
(in CA 2136/16)
Humayun Iqbal Shami
(in CA 2137/16)
Badar Zaman
(in CA 2138-2139/16)
…Appellants
Zahid Rashid
(in CP 516/17)
…Petitioner
VERSUS
Dr. Muhammad Arif and others
(in CA 2109 & 2119/16)
Shah Muhammad Jamal & others
(in CA 2110/16)
Ghani ur Rehman Wazir & others
(in CA 2111/16)
Qaiser Majeed Malik & others
(in CA 2112/16)
Waqar Haider & others
(in CA 2113/16)
Hafiz Zafar Ali Malik & others
(in CA 2114/16)
Syed Imtiaz Altaf & others
(in CA 2115/16)
Suresh Mal & others
(in CA 2116/16)
Rana Muhammad Iqbal & others
(in CA 2117/16)
CAs 2109 to 2139 etc of 2016
2
Dr. Muhammad Shafique & others
(in CA 2118/16)
Secretary, Establishment Division
(in CA 2120-2139/16
& others
& CP 516/17)
…Respondents
For the Appellants:
Mr. Afnan Karim Kundi, Addl. AG
Syed Rifaqat Hussain Shah, AOR (In CAs.2109-2118/16)
Hafiz S.A. Rehman, SASC
Ch. Akhtar Ali, AOR (In CA 2119/16)
Mr. Muhammad Shoaib Shaheen, ASC
(In CA 2120-2124/16)
Mr. Faiz Ahmed A. Jandran, ASC
Ch. Akhtar Ali, AOR (In CA 2132-2134/16)
Barrister Masroor Shah, ASC (In CA 2136/16)
In person (In CAs 2135 & 2137 to 2139 of 2016)
Mr. Abdur Rehman Siddiqui, ASC
(In CA 2125-2131/16)
For the petitioners:
Mr. M. Munir Paracha, ASC.
(In CP 516/17) and CMA 5210/16
For the Respondent(s):
Mr. Abdur Rehman Siddiqui, ASC
(In CAs 2110,2112,2116/16)
Syeda B.H. Shah, ASC. (In CA 2109/16)
Mr. Mehrban Khan, Admin Officer M/o Defence
For respondents 185-187 in CA 2135/16)
Barrister Masroor Shah, ASC
(In CAs 2111,2113,2118/16)
For official respondents: Mr. Afnan Karim Kundi, Addl. AGP.
(In CA 2119-2139/16)
For the applicants:
Mr. Zulfiqar Ahmed Bhutta, ASC
(In CMA 7645/16)
For Respondents:
Mr. Imran Fazal, ASC.(In CAs. 2121 2129, 2131/16)
For Respondents:
Mr. Nasir Mehmood Mughal,
Spl. Prosecutor NAB. In CAs. 2138-2139/16)
Date of Hearing:
13.03.2017
JUDGMENT
MAQBOOL BAQAR, J. Impugned through the present
appeals is the judgment dated 08.06.2016 whereby a learned Division
Bench of the Islamabad High Court, upheld the judgment dated 27th
July, 2015, in terms whereof a learned Single Judge of the said Court
CAs 2109 to 2139 etc of 2016
3
declared the criteria for the award of 15 marks at the disposal of
Central Selection Board (CSB), with overriding effect of 5 marks and
thereby placing the civil servants in category A, B and C, as against
the dictum laid down by this Court in the case of Orya Maqbool
Abbasi (2014 SCMR 817) and the judgment of the Islamabad High
Court rendered in Iram Adnan’s case (2012 PLC (CS) 1355), and also
that the process carried out by CSB on the basis of above formula, and
resulting into deferment/supersession of the respondents as illegal,
without jurisdiction and violative of the law laid down by this Court.
2.
Before we proceed to examine the legality and
proprietary of the recommendations in question, It would be beneficial
to refer to the legal framework pertaining to the matter of promotion of
the civil servants and its procedure.
3.
It is Section 9 of the Civil Servants Act, 1973 that provides
for and, deals with the promotion of a civil servant in the following
terms:
“9.
Promotion.- (1) A civil servant possessing such minimum
qualification as may be prescribed shall be eligible for
promotion to a higher post for the time being reserved under
the rules of departmental promotion in the service or cadre to
which he belongs:
Provided that the posts of..
(a)
……………………………………………………………………….
(b)
……………………………………………………………………….
(2)
A post referred to in sub-section (1) may either be a selection
post or a non-selection post to which promotions shall be made as
may be prescribed..
(a)
In the case of a selection post, on the basis of selection
on merit; and
(b)
In the case of a non-selection post, on the basis of
seniority-cum-fitness.
CAs 2109 to 2139 etc of 2016
4
(3)
Promotion to posts in basic pay scales 20 and 21 and equivalent
shall be made on the recommendations of a Selection Board which
shall
be
headed
by
the
Chairman,
Federal
Public
Service
Commission.”
The above provisions are supplemented by Rules 7, 8 and 8-A of The
Civil Servants (Appointment, Promotion and Transfer) Rules, 1973. For
the ease of reference the said rules are reproduced hereunder:
“7.
Promotion and transfers to posts in **[basic pay scales 2
to 18 and equivalent, ***[except the posts specified in sub
clause (i) of clause (b)] and equivalent] shall be made on the
recommendation of the appropriate Departmental Promotion
Committee and promotions and transfers to posts, ***[specified
in sub clause (i) of clause (b) and posts], in ***[basic pay scales
19
to
[21]
and
equivalent]
shall
be
made
on
the
recommendations of the Central Selection Board.
8.
Only such persons as possess the qualifications and meet
the conditions laid down for the purpose of promotion or
transfer to a post shall be considered by the Departmental
Promotion Committee or the Central Selection Board as the
case may be;
8-A.
No promotion on regular basis shall be made to posts in
Basic Pay Scales 17 to 22 and equivalent unless the officer
concerned has completed such minimum length of service,
attended such training and passed such departmental
examination, as may be prescribed from to time.”
4.
However, since the Federal Government felt that the
above legal framework was not sufficient to meet the functional
requirement, it therefore, with the approval of the President of
Pakistan, supplemented the same by a “comprehensive and
consistent set of policy guidelines”, by way of Promotion Policy, 1982
(“The
Policy”).
The
policy
contained
certain
guidelines
for
Departmental Promotion Committees (DPCs)/Central Selection Boards
(CSBs) which included the following two:
(i)
Confidential reports will be given due importance but will
not be the sole criterion for promotion to selection posts;
(ii)
Performance evaluation as reflected in the confidential
reports will be quantified according to formula enunciated in the
CAs 2109 to 2139 etc of 2016
5
enclosed guidelines and weightage will be given to more recent
appointment (emphasis supplied).
By way of general instructions the policy provided that the DPC/CSB
shall consider the cases of eligible civil servants in order of seniority and
either:
(a)
Recommend a civil servant for promotion to the next
higher post; or
(b)
Recommend a civil servant for supersession; or
(c)
Defer
consideration
of
a
civil
servant’s
promotion
provided that this step will be taken only if:
(i)
The CR dossier is incomplete or any other
document/information required by the DPC/CSB for
determining a civil servants suitability for promotion
is not available; or
(ii)
Disciplinary
or
departmental
proceedings
are
pending against the civil servant whose promotion
case comes up for consideration before the
DPC/CSB; or
(iii)
The civil servant on deputation abroad to a foreign
government, private organization or international
agency; or
(iv)
The civil servant does not possess the requisite
length of service; or
(iv)
The civil servant has not undergone the prescribed
training or passed the departmental examination
for reasons beyond his control; or
(vi)
The civil servant’s inter se seniority is sub judice.
(Emphasis supplied)
The policy further required that the civil servant whose promotion has
been deferred will be considered as soon as the reason on the basis of
which deferment took place ceases to exist. (Emphasis supplied)
5.
The formula for quantifying the ACRs of the officers under
consideration by the committee or the board also was appended to
the policy. The policy also prescribed that the civil servant who fails to
CAs 2109 to 2139 etc of 2016
6
come up to the qualifying score shall not normally be considered for
promotion. However, the committee/board may, for the reason to be
recorded in detail, recommend relaxation of the said condition, to the
competent authority. (Emphasis supplied)
6.
For promotion to selection posts the policy, inter alia,
required that the entries under “quality and output of work” and
“integrity” in all the ACRs recorded on the civil servant during his
service as an officer will also be quantified in accordance with formula
given in the Addendum thereto, and that such marks shall be a crucial
factor in determining comparative merit of the officers for promotion to
selection posts. (Emphasis supplied)
7.
Some
amongst
the
various
essential
qualifications
prescribed for promotion to the post carrying BPS-20 and BPS-21were
as follow:
(i)
Eligibility threshold: attain a minimum score of 70 marks in
CRs in accordance with the formula given in the
Addendum;
(ii)
Relevance of Experience: possess experience relevant to
the functions of the post to which promotion is being
made;
(iii)
Quality and Output of Work and Integrity: marks
calculated in accordance with the formula in the
Addemdum shall be a crucial factor in determining the
comparative merit of an officer. (Emphasis supplied)
It may be, and especially in respect of clauses (i) & (iii), noted that in
terms of the Addendum to the policy, marks in favour of the officer
under consideration were to be calculated/awarded on the basis of
his confidential reports (CRs). (Emphasis supplied)
CAs 2109 to 2139 etc of 2016
7
8.
Through D.O. No. 10(3)/84-CP-I. dated 30th April, 1984, it
was required that the committee/board shall specify the exact
grounds under para 1(c) of the guidelines, for recommending a civil
servant’s promotion, supersession or deferment. Through DO No.
10(10)/85-CP dated 15 May, 1985 the Establishment Division, in view,
inter alia, of its perception that the trend towards inflated reporting
which had been in vogue since inception, has, because of the higher
eligibility threshold fixed for the selection posts, achieved greater
proportion,
and
thus
added
to
the
pressure
on
reporting/countersigning officers to be overly generous in their
assessments, and as such most of the average officers were being
graded as “good” and the good as “very good”, adversely affecting
the genuinely outstanding officers, introduced a more cautious
approach/criteria for evaluation and its quantification & grading, and
also introduced an additional/higher category in relation to the
grading of the officers.
9.
The instructions and the guidelines for DPC/CSB, were
reviewed once again. Such was done on the basis of the
recommendations made by the committee on Promotion Policy,
purportedly to “develop a comprehensive criteria for selection, for
promotion/deferment/supersession which, is measurable to the extent
possible, comparable with regard to performance of each officer on
the panel and is based on tangible record duly placed on the dossier
and also re-defines discretion of the members and the board and, to
lay down as to how more objectivity can be brought in the
recommendations of the selection board” . (Emphasis supplied)
CAs 2109 to 2139 etc of 2016
8
10.
The above recommendations of the committee, as
contained in the Establishment Division’s OM No. 1/3/2007/CP/-II dated
24th October, 2007, also prescribed conditions for deferment. One such
condition being an eventuality where the board considers the records
as incomplete, or wants to further watch the performance of the
officer, or for any other reason to be recorded in writing. (Emphasis
supplied) It also prescribed the minimum threshold of marks for
promotion to various scales. Such marks prescribed for BPS-18, are 50,
for BPS-19, are 60, for BPS-20, the marks are 70, and for BPS-21, the
marks prescribed are 75. It further provided that no officer meeting the
aggregate thresholds shall be superseded. (Emphasis supplied) The
allocation of marks based on Performance Evaluation Reports (PERs),
Training Evaluation Reports (TERs) and evaluation by CSB were
prescribed as follows:
S.No.
Factor
Marks
1.
Quantification of PERs
relating
to
present
grade
and
previous
grad(s) @ 60%:40%
70%
2.
Training
Evaluation
reports
in
ratio
of
60%:40%
15%
3.
Evaluation by CSB
15%
Total:
100%
The
OM
dated
24.10.2007,
also
required
that
the
officers
superseded/deferred by the CSB be informed about the reason for his
supersession/deferment to enable him to improve his performance and
to complete his records or to make up any other deficiency, as the
case may be. (Emphasis supplied)
CAs 2109 to 2139 etc of 2016
9
11.
Through OM dated 19th January, 2012 the Establishment
Division clarified that the reasons for supersession/deferment on the
recommendations of the CSB are to be communicated to the officers
concerned immediately after such recommendations have been
approved by the respective competent authority. (Emphasis supplied)
12.
From the foregoing, it can be seen that in terms of the
Promotion Policy, as originally conceived & formulated, performance
evaluation was to be based on and, quantified as per the confidential
reports of the officers under consideration. The service record/dossier
was found, and naturally so, to be of such crucial importance that its
non-availability
or
the
non-availability,
of
any
other
document/information required for determining the suitability of the
officer concerned was to result in the deferment of consideration of
the officer. The significance attributed to evaluation and its
quantification so achieved is evident from the fact that the same was
not left to the whims of the board, but a well laid down and elaborate
formula was prescribed for the same. It was further prescribed that the
officer who thus fails to meet the qualifying score shall not normally be
considered for promotion. Furthermore the quantification of the
“quality & output of work” and “integrity”, evaluated and quantified as
above, was described as a crucial factor in determining comparative
merit of the offices for promotion to the selection post. The significance
of
the
service
record
as
a
source/basis
of
the
above
evaluation/quantification was so great and crucial in the eyes of the
framers of the policy that the eligibility threshold set down through the
CAs 2109 to 2139 etc of 2016
10
policy was a minimum score of 70 marks in the confidential reports,
and therefore, in the Addendum to the policy document, it was
reiterated/emphasized that marks for the eligibility threshold, and in
respect of “quality & output of work” and integrity were to be
calculated/awarded on the basis of the confidential reports. The
evaluation, its quantification & the grading, which were wholly based
on the service record of the officer concerned, being of crucial
significance, the Establishment Division through DO dated 15.05.1985
introduced a more cautious approach in that regard and also created
additional/higher category as per such grading of the officer
concerned.
13.
The policy was however, with a stated objective of
developing a comprehensive criteria, measurable with reference to
the performance of each officer in the run, as per the tangible record
duly placed on the dossier and for prevalence of objectivity, revised
through, DO dated 24.10.2007, in terms whereof now 70% of the marks
on the scale were reserved for quantification of the PERs, 15% were
reserved for training evaluation, whereas the remaining 15% were
allocated for evaluation by CSB. However, as is patently evident,
ironically and contrary to the avowed objective, the above bifurcation
of marks, instead of inducing any objectivity in the process, created
vagueness and ambiguity and removed the focus of evaluation from
the exclusivity of the service record and brought it within the realm also
of undefined and unstructured discretion of the board, and in fact
practically within the discretion of just a few of its members (as not all
members could possibly be said to be familiar with the officers under
CAs 2109 to 2139 etc of 2016
11
consideration), and thus giving rise to whimsical and arbitrary
decisions/recommendations,
based
on
personal
opinion
rather
impressions, not based on any prescribed, relevant and permissible
material.
14.
The process thus evolved could not withstand the judicial
scrutiny which resulted in the judgment rendered by a learned Judge
of the Islamabad High Court in writ petition No. 863/2011 titled as
Gulab Zamir vs. Federation of Pakistan, dilating upon the question of
15% marks allocated for evaluation by CSB, the learned Judge
observed and held as follows:
“As far as marks given by the Central Selection Board are
concerned, these are exclusively discretionary. These marks are
to be given with reference to Service Record and having been
examined the comparative marks as well as the performance of
the officer in the Training Reports. The officer concerned does not
appear before the Central Selection Board; there is no interview
and there is every possibility that the Selection Board may not be
knowing the person, whose case for promotion is before them, so
some criteria is required to be evolved as these marks can not be
given simply on the basis of whims. The order of Selection Board is
required to be based upon proper reasons…
7.
…In absence of any criteria, it would become unfettered
discretion of the Central Selection Board to recommend
promotion of one person and refuse the same to another similarly
placed officer…
8.
In the circumstances, I accept this petition; the order of
supersession is converted into deferment and the case is sent
back to the Central Selection Board with the direction to
determine ‘Specific Criteria’ for assessing the officer and pass a
just and fair order, based on reasons.”(Emphasis supplied)
15.
The allocation of marks for evaluation by CSB was once
again declared illegal and un-constitutional by the Islamabad High
Court, in the case of Mrs. Iram Adnan (2012 PLC (CS) 1355), whereby
the Court directed the Establishment Division to restructure the
CAs 2109 to 2139 etc of 2016
12
provision of awarding 15 marks by CSB. In deciding so, the learned
Judge relied on the case of Secretary, Revenue Division vs. Gul
Muhammad (2011 SCMR 295), and upon an earlier judgment of this
Court in CPs No. 836 and 837 of 2016, where a judgment of the Federal
Service Tribunal, directing the Establishment Division to bring more
objectivity in the criteria for excellence and comparative merit, by
defining it further, so that more specific, detailed and, well thought out
reasons for denying promotion to an officer, who is otherwise eligible,
could be given, was upheld by this Court with the following
observations:
“2… We are of the opinion that decision with regard to
promotion of the Officer cannot be left on the discretion of
Members of the Board. There must be some criteria to judge
the performance of a candidate because promotion was
denied to the officer on the ground that he does not fulfill the
criteria. When there is no criteria, then how a person can be
denied promotion, therefore, the Service Tribunal has rightly
observed that the Board must bring more objectivity in the
criteria.” (Emphasis supplied)
16.
Similar views were expressed by an Honourable Bench of
the Lahore High Court in respect of the above policy of granting 15
marks by the CSB in the case of Liaquat Ali Chughtai (PLD 2013 Lah
413), by stating that the CSB had consciously adopted a policy to
place reliance on the personal views and impressions of the Members
regarding the integrity and reputation of the officers under
consideration and that the process so adopted by the CSB negates
the very purpose of the CSB which is expected to form a collective
view after independent application of mind to the facts and
circumstances of each case, and was required to meticulously review
the service dossier of the officers under consideration and formulate a
CAs 2109 to 2139 etc of 2016
13
collective opinion. The board’s reliance on the personal opinions of its
Members in making recommendations for the supersession of the
officers under consideration was held to be an affront to fairness; due
process and Article 10 of the Constitution. The power and discretion of
the board to grant 15 marks to the officers was held not to be
sufficiently structured or elaborately tailored to reflect thorough
deliberation and proper analytical assessment. The Court thus, set
aside the impugned selection process and declared the same illegal
and un-constitutional, with direction for framing a well thought-out
objective criterion in accordance with the 2007 Revised Promotion
Policy. The Court also directed the CSB to form its opinion on the basis
of evidence before them in the form of complete service dossier
comprising of PERs for the last over 15 years and restrained the board
from relying on any evidence without confronting the officer
concerned with the same, and also not to pass any adverse order on
the basis of any impressions, nurtured, and opinion harboured by its
Members without placing any tangible evidence supporting such
opinion before the board, and then confronting the officer concerned
with such evidence .(Emphasis supplied)
17.
It seems that it was in the light of the judgments in the
cases of Iram Adnan and Liaqat Ali Chughtai, that the Establishment
Division constituted a committee to restructure the formula/criteria for
award of marks by the CSB, so as “to bring in more objectivity in the
light of the observations made by the High Court”, and thus through
OM No. F.1/1/2012-CP.I dated 12th October, 2012 made certain
amendments
in
the
promotion
policy,
and
prescribed
new
CAs 2109 to 2139 etc of 2016
14
parameters/attributes by way of (i) integrity/general reputation
/perception; (ii) personality profile; (iii) conduct, discipline and
behaviour. The attributes “quality and output of work”, and “integrity”
earlier contained in the 1982 policy were revived. A new objective
assessment form for assessment in respect of the attributes namely (i)
quality & output of work; (ii) integrity/general reputation/perception;
(iii) variety and relevance experience; (iv) top management potential;
(v) personality profile; and (vi) conduct, discipline & behaviour was
introduced. The OM further provided that the above objective
assessment form shall be placed before the CSB along with panel
proforma of every officer for his/her objective evaluation by the CSB
and, that the board shall assess each officer on the panel on the basis
of said parameters/attributes
(Emphasis
supplied) and, that after
assessment/evaluation the CSB shall place the officer in any of the
following category and, assign appropriate marks accordingly:
Sl. No.
Category
Range of Marks
1.
Category-A
=
11- to 15
2.
Category-B
=
06 to 10
3.
Category-C
=
00 to 05
The Memorandum further provided that an officer meeting the
aggregate threshold (70 marks for BPS-20 and 75 for BPS-21) shall also
be superseded, in case the CSB places him in category-C.
18.
The objective assessment form introduced through OM
dated 12.10.2012 is, for the ease of reference, reproduced hereunder:
OBJECTIVE ASSESSMENT BY CSB (as per OM dated 12.10.2012)
S.No.
Parameters/Attributes
Categories
1.
Quality and Output of Work
Cat-A
(11-15)
Cat-B
(06-10)
Cat-C
(00-05)
2.
Integrity/General
Reputation/Perception (Last 05-Yrs of
Synopsis OR as known to the Board members
CAs 2109 to 2139 etc of 2016
15
3.
Variety & Relevance of Experience
Nature of Duties, duration and location of Yrs
whichever is longer relevant to the functions of
posts in BS-21
BS-18 (if applicable) = yrs
BS-19 = Yrs
BS-20 = Yrs
Total = Yrs
4.
Top Management Potential
(Observation by RO/CO if any OR
as known to the Board Members
5.
Personality Profile
(As known to the Board Members)
6.
Conduct, discipline & Behavior
(Observation by RO/CO during last five years
OR as known to the Board members
7.
Total
8.
Average
9.
Marks by CSB
(Emphasis supplied)
19.
It can be seen from the various columns in the above
form, that further departing from the previous practice of evaluating
the officers under consideration exclusively on the basis of their service
record, which comprise of their PERs and TERs of the last several years,
and thus granting them marks accordingly, through the above form,
except for the numerical data, the assessment/evaluation, marking
and categorization could now, also be done exclusively on the basis of
the knowledge of the members of the Board. Such option that the
board could now exercise was in respect of certain crucial
attributes/aspects such as, “integrity”, “top management potential”,
“personality profile”, “conduct discipline and behaviour”, and,
therefore the amendment made purportedly to bring the process,
approach and criteria in line with the various directives of the Courts,
and to remove from the process, the blemish and abrasion of
unbridled and arbitrary exercise of discretion, and instead provide an
open transparent objective criteria based on tangible record which
could be lawfully taken into consideration, and to meet the essential
CAs 2109 to 2139 etc of 2016
16
requirements of adequate disclosure and fairness, rather reinforced
and further perpetuated the tendencies and practices deprecated by
the Courts, and therefore when decision of CSB made under the
above dispensation, and thus placing the officers under consideration
by the Board in its meetings held in the year 2013, in category-C, was
brought under the scrutiny of this Court in the case of Orya Maqboo
abbasi (2014 SCMR 817), this Court held that although promotion was
not a right but a civil servant fully qualified for promotion has a right to
claim that his case may be considered for promotion strictly following
the eligibility criteria laid by the authority, and that though the officers
not meeting the eligibility criteria for promotion could be deferred, but
the deferment could not be arbitrary and not supported by the service
record, it was further held that the Board conducted itself arbitrarily as
in view of their PERs, the officers were fully eligible for promotion but the
Board “failed to take into consideration such reports for the reasons
not tenable under the law and their such findings were clear violation
and departure from the promotion policy because once the officers
have fulfilled the criteria, their cases have to be considered to assess
the fitness and suitability to share higher responsibility mostly based on
objective criteria, instead of denying promotion to them for the
subjective consideration”. The impugned decision of the Board was
declared to be whimsical, violative of the promotion policy and based
on subjective considerations. The notification for promotion of all the
officers based on the recommendation of the CSB through the above
exercise/process was set aside with direction for conducting the
process of promotion of all the officers concerned, strictly on merits
CAs 2109 to 2139 etc of 2016
17
and in consonance with Section 9 of the Civil Servants Act, 1973 and
Rules 7, 7-A and 8 of The Civil Servants (Appointment, Promotion and
Transfer) Rules, 1973, and the promotion policy. The Government was
also directed to evolve an objective criteria for promotion of the civil
servants.
20.
It was purportedly in pursuance of the above directives
that the objective assessment form was, vide OM dated 10.02.2014,
revised once again and the form reproduced hereunder was thus
introduced:
OBJECTIVE ASSESSMENT BY CSB ( as per OM dated 10.02.2014)
S.No.
Parameters/Attributes
Total
Marks
Marks
Assigned
1.
Output of Work and Quality of Work
2.
Variety & Relevance of Experience
Secretariat/Field Postings;
Federal/Provincial Government
Postings; Leadership/Routine Postings;
Deputation/Foreign Postings
3.
Professional Expertise
4.
Personality Profile
(As known to the Board Members)
10
5.
Conduct, Discipline and Behavior
(Observation by RO/CO during last 05 years OR as
known to the Board Members)
6.
Functional Ability and Leadership
7.
Estimated Potential for Middle/Higher Management
Based on PERs and Training Evaluation Reports;
Management Skills, Ability to take decisions, Strategic
Thinking, Leadership Qualities, Drive for Results and
Accomplishments in BPS-19 and 20 in policy
formulation & implementation
8.
Integrity/General Reputation/Perception
On the basis of PERs/TERs/Opinion of the Board
5
9.
Total Marks by CSB
15
10.
Overall Category
Cat-A Cat-B Cat-C
(11-15) (06-10) (0-05)
*
An officer under consideration, getting less than 3 out of five under this
parameter may be defended or superseded by the CSB at their discretion but with
reasons to be recorded in writing.
_______________
Secretary CSB
Dated
________________
________________
(Chairman CSB)
CAs 2109 to 2139 etc of 2016
18
21.
However, the above amended form, as is evident from its
plain reading, instead of providing any evaluation structure, not only
left it open for the board to choose either the service dossier of the
officer concerned as a source material for the evaluation of the
various essential & crucial attributes of the officer, or just to rely upon
the personal knowledge of its members for the said purpose, whereas
in relation to the candidate’s personality profile it was left exclusively to
be evaluated on the members knowledge, without any reference to
any record, and above all, and more crucially, for an officer to avoid
deferment or supersession (one out of two at the option of the board)
it is made essential to obtain at least 3 out of the 5 discretionary marks
in respect of “integrity/general reputation/perception”. This created an
anomalous situation where an officer who may have otherwise,
achieved the required threshold on the basis of evaluation of his
service record, may still be superseded by the Board on the basis of the
opinion harboured or nurtured by a few of its members, and instead
less deserving officer may be recommended, which could result in the
degeneration of the civil service, and dissatisfaction & despondency
amongst its cadres.
22.
The recommendation of the board made in its meetings
held on 05.05.2015 and 07.05.2015, on the basis of the assessment form,
as discussed above, were impugned through 57 different writ petitions,
filed by its affectees before the Islamabad High Court. The petitions
were disposed of through a judgment dated 27.07.2015, which was
assailed before a Division Bench of that Court resulting in the
CAs 2109 to 2139 etc of 2016
19
impugned judgment, whereby the appeals, challenging the striking
down of the OM dated 10.02.2014 along with the objective assessment
form annexed thereto to the extent of five (5) overriding discretionary
marks, have been dismissed and the entire process carried out by the
CSB on the basis of OM dated 10.02.2014 and the objective
assessment
form
annexed
thereto,
and
resulting
in
the
recommendations of the CSB for deferment/supersession of the officers
under consideration has been declared to be unlawful and violative of
the law laid down by this Court in Orya Maqbool Abbasi’s case, with
direction to the Establishment Division to reframe the formula in light of
the observations contained in the impugned judgment with a further
direction to reconsider the cases of all the officers whether promoted
or not promoted by it through the impugned process/exercise in
accordance with directions as contained in the judgment.
23.
The entire impugned process being flawed for want of a
well thought out structured objective criteria, and lacking in due
process, gave way to arbitrariness, ambiguity and a whimsical
approach, inasmuch as drifting from reliance upon the service dossier
of the officer, (which were duly and meticulously qualified with all
assessment spectrum, including overall performance and output and
also regarding the integrity of the officer), and instead placing reliance
on undefined personal opinion, and that too without qualifying it with
the necessity of being based on any tangible evidence/material,
resulted in adverse recommendation, like as reproduced hereunder:-
S.No.
Name of
Petitioner
WP No.
Reasons for supersession as
recommended by CSB
CAs 2109 to 2139 etc of 2016
20
1.
Qaiser Majeed
Malik (PAS)
1401/2015
Followings reasons provided:
“Though the
officer met the
minimum threshold of 75 marks,
yet the Board, after assessing the
officer
against the
prescribed
objective
assessment
criteria,
besides keeping in view the PERs,
TERs and knowledge of the Board
members, placed in category C
and accordingly recommended
him for supersession.”
2.
S.Asif Mateen
Zaidi
1506/2015
Following reasons provided:
“Though the
officer met the
minimum threshold of 70 marks,
yet the Board, after assessing the
officer
against the
prescribed
objective
assessment
criteria,
besides keeping in view the PERs,
TERs and knowledge of the Board
members, placed in category C
and accordingly recommended
him for supersession.
3.
Samin Ullah Khan
1507/2015
Following reasons provided:
“Though the
officer met the
minimum threshold of 70 marks,
yet the Board, after assessing the
officer
against the
prescribed
objective
assessment
criteria,
besides keeping in view the PERs,
TERs and knowledge of the Board
members, recommended him for
supersession.”
24.
As can be seen from the foregoing, though all the officer
named therein, achieved the prescribed threshold on the basis of their
PERs and TERs, but have been superseded on the basis of knowledge
of the board’s members, but neither has any reason given for ignoring
the quantification in the service record, nor the nature and/or source
of the so called knowledge been disclosed. Since it has not even been
stated as to what came to the knowledge of the members (and to
which of them) so as to persuade them to override the evaluation on
the basis of the service dossier of the officer covering the entire
spectrum of his performance and conduct, spread over long years of
his service, and recommend his supersession in the face of his meeting
the prescribed criteria otherwise, and therefore neither was the board
in a position to disclose or convey to the effectee any ground/reason
CAs 2109 to 2139 etc of 2016
21
for his predicament, nor was any explained before us, despite our
repeated queries, and thus the process not only violated the
requirement of adequate disclosure, but also offended the principle of
fairness, due process and procedural propriety. Even otherwise the
appellant has not been able to show any thing adverse against the
officer in their respective service dossiers. We have also noted that in
the cases of deferment also no plausible explanation or reason has
been mentioned. The matter of promotion, deferment or supersession
of a civil servant and that too of BPS-20 and 21, is of enormous
significance, having a bearing on the state structure and cannot be
left to be dealt with in an arbitrary, casual and capricious manner, like
in the present case.
25.
It was for the foregoing reasons that we through a short
order dated 13.3.2017, dismissed the titled appeals/petition, and would
hereby direct the Establishment Division to place all of those cases
which
were
laid
before
the
board
through
the
impugned
exercise/process, afresh, after withdrawing the overriding effect of five
(5) marks assigned for integrity/reputation etc. and removing the
deviation of the focus of the board from the service dossier to the
personal knowledge of its members. The above exercise be initiated
within four weeks, and be concluded within ten weeks from 13.4.2017.
In the meanwhile, those who may have been promoted on the basis of
impugned recommendations shall maintain their such elevated
position/status. However, in the event the officers whose cases for
promotion have been recommended to be deferred or superseded,
are through the proposed process recommended for promotion, they
CAs 2109 to 2139 etc of 2016
22
shall maintain their seniority viz’a‘viz those who were recommended for
promotion through the impugned process, and may again be so
recommended, so that the seniority of the presently left out officers
and so also their entitlement to the consequential benefits, including
prospects of their future promotion is not adversely effected.
CHIEF JUSTICE
JUDGE
JUDGE
ISLAMABAD.
13th March, 2017
Rizwan
“APPROVED FOR REPORTING”
| {
"id": "C.A.2109_2016.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
Present:
Mr. Justice Mian Shakirullah Jan
Mr. Justice Jawwad S. Khawaja
Mr. Justice Amir Hani Muslim
Civil Appeals Nos. 212 & 213 of 2011.
(Against the order dated 15.6.2009 passed by the High
Court of Sindh at Karachi, in Const. Petitions Nos.D-
2404/08 and D-38/09).
Province of Sindh thr. Chief Secretary & another.
…
Appellants (In both cases)
VERSUS
Rasheed A. Rizvi & others.
…
Respondents (In CA 212/11)
Abdul Haleem Siddiqui & others.
…
Respondents (In CA 213/11)
(Civil Appeal No.212/2011)
For the appellant (s):
Abdul Fateh Malik, A.G. Sindh
For the respondent-1:
Rasheed A. Rizvi, Sr. ASC.
For the respondent-2:
Anwar Mansoor Khan, Sr. ASC
(Civil Appeal No.213/2011)
For the appellant (s):
Abdul Fateh Malik, A.G. Sindh
For the respondent-1:
N.R.
For the respondent-2:
Mr. Muhammad Waqar Rana. ASC
For the respondent-3:
Abdul Rasool Memon, Registrar, High Court of Sindh.
(in both cases)
On Court’s notice:
Maulvi Anwar-ul-Haq, Attorney General of Pakistan
(On behalf of Federation)
Date of hearing:
16.2.2012
Judgment
Jawwad S. Khawaja, J.- These appeals raise issues concerning the manner
in which judicial officers are appointed in the province of Sindh through initial
recruitment. The appellants impugn the judgment of a five Member Bench of the
High Court of Sindh dated 15.6.2009 that has set aside amendments made by the
Sindh Government to the appointment mechanism For reasons elaborated in this
opinion, we have dismissed these appeals and upheld the impugned judgment
subject to a modification elaborated toward the end of this opinion.
THE PARTIES:
2.
Before setting out the facts which have given rise to these two appeals, we
may make a note of the parties involved in the controversy. There are two
Civil Appeals Nos.212-213 of 2011
2
appellants, namely the Province of Sindh and the Sindh Public Service Commission
(“SPSC”) who have filed both appeals. Rashid A. Rizvi, a member of the Sindh
High Court Bar Association (“SHCBA”) and the SHCBA are respectively
respondents Nos. 1 and 2 in Civil Appeal No.212/2011 while Abdul Haleem
Siddiqui Advocate who was a member of the Sindh Bar Council (“SBC”) and the
SBC are respectively respondents Nos. 1 and 2 in Civil Appeal No.213/2011.
THE FACTS:
3.
The appointment of judicial officers in the District Judiciary in the province
of Sindh is governed by the Sindh Judicial Service Rules, 1994 (the “1994 Rules”).
Prior to the framing of these rules in 1994, judicial officers were inducted in the
Sindh judicial service in accordance with rules of general application which were
framed under section 26 of the Sindh Civil Servants Act, 1973. These were called the
Sindh Civil Servants (Appointment, Promotion and Transfer) Rules 1974 (the “1974
Rules”) and were applicable to the recruitment of civil servants including those
inducted in the judicial service.
4.
This position was changed radically by the 1994 Rules which were notified
on 24.11.1994 vide notification No. SOR-I(S&GAD)2/3-93. The background and the
reasons which led to the framing of the 1994 Rules have an important bearing on
the outcome of this case. We will advert to these in detail, later in the opinion. For
the present, it will suffice to note that the method of recruitment prescribed by the
1994 Rules departed from the earlier 1974 Rules in important particulars; the most
relevant in the present context being the method of selection and appointment of
Judges in the District Judiciary. While recruitments to the judicial service prior to
1994 were made by the Government of Sindh on the recommendation of the SPSC,
Rule 5 of the 1994 Rules stipulated that appointments to the judicial service would
thenceforth be made on the recommendation of the Provincial Selection Board. The
Provincial Selection Board was defined in Rule 2(e) to mean “the Administrative
Committee of the High Court or a Committee of not less than three High Court Judges
specially constituted for the purposes of these rules by the Full Court”. The Rules also
provided for other matters including promotions, seniority, transfer and discipline.
Civil Appeals Nos.212-213 of 2011
3
However, the present controversy before us is confined to the method of
appointment of judicial officers.
5.
The Government of Sindh, vide Notification No. SOR-I(5GA&CD)2-3/9,
dated 4.12.2008 (the “impugned Notification”), again gave the SPSC a significant
and over-bearing role in the recruitment of Judges in the Sindh judicial service. This
has been done by stipulating in Rule 5 that recruitments to the posts of Civil Judges
and Judicial Magistrates shall be made by initial appointment through the SPSC on
the requisition of the High Court of Sindh.
6.
The respondents were aggrieved of the amendments made in the Sindh
Judicial Service Rules, 1994, through the impugned Notification. They, therefore,
challenged the constitutional validity of the said Notification before the High Court.
It was their case that these amendments were violative of the constitutional
imperative requiring separation of the Judiciary from the Executive and thus
adversely affected the independence of the Judiciary. The respondents, therefore,
prayed that the impugned Notification be struck down on the ground that the same
was ultra vires the Constitution and in particular, was inconsistent with Articles 4, 9,
14, 175 and 203 of the Constitution. For ease of reference, we can state here the
relevant parts of the latter two articles. Article 175(3) of the Constitution commands
that “[t]he Judiciary shall be separated progressively from the Executive within fourteen
years from the commencing day,” and Article 203 states that “each High Court shall
supervise and control all courts subordinate to it.”
7.
According to the respondents, the conferment of the power of selection on
the SPSC and the power of appointment on the Government, coupled with the
withdrawal of power from the Provincial Selection Board amounted to an
unconstitutional encroachment on the independence of the judiciary. The case of
the Province, however, was that the amendments did not adversely affect the
independence of the Judiciary or its separation from the Executive. The appellants
and the respondents, both reaffirm before us, their respective positions taken in the
Sindh High Court.
Civil Appeals Nos.212-213 of 2011
4
THE ISSUES:
8.
The controversy between the parties is thus greatly narrowed down in view
of the above. If indeed the amendments in the 1994 Rules and the consequent
elimination of the High Court from the process of selecting and appointing judicial
officers amounts to negation of the separation of the Judiciary from the Executive or
if it constitutes an encroachment on the independence of the judiciary, then the
impugned Notification would have to be struck down and the judgment of the
Sindh High Court will be affirmed. In other words, the question before us is quite
straightforward: has the impugned Notification contravened the constitutional
provisions requiring the independence of the judiciary and its separation from the
executive? A consideration of established precedent, as well as the historical
perspective in which the original 1994 Rules were framed, brings us to answer this
question in the affirmative. We shall presently explain both these grounds on the
basis of which, the appeals have been dismissed.
(a)
The Link between Independence of the Judiciary and the Process
of Appointment of Judges:
9.
Our constitutional courts have consistently held that the process of
appointments to the judiciary must be carefully scrutinized through the lens of
constitutional principles such as the principle of separation of powers. In the Al-
Jehad Trust case, this Court stated with reference to appointment of judges of the
superior judiciary "...that the independence of the judiciary is inextricably linked and
connected with the process of appointment of judges and the security of their tenure and
other terms and conditions." (PLD 1996 SC 324, 429) Although this was said in the
context of appointment to the High Court, the principle applies with equal force to
all judicial appointments, including those in the District Judiciary. Accordingly, the
dictum laid down in the Al-Jehad case was soon reaffirmed by this Court in the
case of Mehram Ali & Others v. Federation of Pakistan (PLD 1998 SC 1445, 1474) and
Sh. Liaquat Hussain v. Federation of Pakistan (PLD 1999 SC 504, 658), both cases which
concerned the District judiciary. The aforesaid dictum has also been recently
reiterated in Sindh High Court Bar Association v. Federation of Pakistan (PLD 2010 SC
879, 1182) and Munir Hussain Bhatti v. Federation of Pakistan (PLD 2011 SC 407). In
Civil Appeals Nos.212-213 of 2011
5
the latter case, the Court, after examining the case law, concluded that “it is an
undisputed tenet of our Constitutional scheme that in matters of appointment, security of
tenure and removal of Judges the independence of the Judiciary should remain fully
secured.” (PLD 2011 SC 407, 467)
10.
The aforesaid principle would in itself be enough to bring us to the
conclusion that the impugned Notification, which takes away the power of
selection from the High Court and gives it to the SPSC does not meet Constitutional
standards which have, by now become part of our jurisprudence. The method of
making appointments of judicial officers attempted through the impugned
Notification has the effect of negating the independence of the judiciary and the
separation of powers envisaged in Articles 175 and 203 of the Constitution because
the High Court is neither involved in the selection of Judges nor in their
appointment. The former function is meant to be performed by the SPSC and the
latter by the Sindh Government.
(b)
Reading the 1994 Rules in their Historical Backdrop.
11.
The historical context in which the 1994 Rules were framed makes the point
clearer. It should be recalled that the 1994 Rules were framed in the wake and as a
result of judgments by the Sindh High Court and the Supreme Court. Consistent
with established precedent the role constitutionally envisaged for the High Courts
in the judicial appointments process cannot lawfully be substituted by the SPSC
because that would go against the concept of an independent judiciary separate, in
a real sense, from the Executive. Particularly important are the two Sharaf Faridi
cases: Sharaf Faridi v. Federation of Islamic Republic of Pakistan (PLD 1989 Karachi 404)
and the appeal against the aforesaid decision reported as Government of Sindh v.
Sharaf Faridi (PLD 1994 SC 105). In these cases, firstly the High Court and then the
Supreme Court defined the implications of the constitutional provisions dealing
with independence of the Judiciary and its separation from the Executive. The
relevant extracts from these cases have been reproduced in the impugned
judgment. Some may usefully be reiterated at this point. In the cited case the High
Court held that “the supervision and control over the judiciary vested in the High Court
Civil Appeals Nos.212-213 of 2011
6
under Article 203 of the Constitution, keeping in view Article 175, is exclusive in
nature,…any … notification empowering any executive functionary to have … control over
the subordinate judiciary will be violative of above Article 203 of the Constitution. Besides
it will militate against the concept of separation of powers and independence of judiciary…”
In appeal, the Supreme Court re-affirmed the constitutional imperative by
observing that “separation of the Executive from the Judiciary was an obligation cast . . .
by the Constitution and this obligation could not be willed away or avoided. It had, willy
nilly to be carried into effect despite all the difficulties.” The context of the case was the
separation of the executive magistracy (and its control by the Executive), from the
judicial function, but the lines of such separation were clearly delineated. These
pronouncements were unambiguous and provide the norms to be adhered to in the
appointment process for the District Judiciary.
12.
The Court gave a well defined meaning and outlined the scope of the
separation of powers and judicial independence mentioned in our Constitution. It is
in the backdrop of the judicial pronouncements referred to above, and the
interpretation of the Constitution made therein, that the 1994 Rules for the
recruitment of judicial officers were framed. The 1994 Rules must therefore be
analysed in the same context. As has been noted earlier, the original 1974 Rules of
general application were applicable to the recruitment of judicial officers also. The
judgments of the Sindh High Court and of this Court in the case of Sharaf Faridi
were the direct cause for making changes in the 1974 Rules and for framing the 1994
Rules. This is evident from the judgment of this Court in 1994 wherein steps taken
by the Government of Sindh have been noted and it has also been observed that
“Rules for appointment and transfer etc. of judicial officers have been drafted and are likely to
be approved by the High Court soon.” It was in fact, during the pendency of the case
before this Court that the Provinces including Sindh initiated the process of
separating the Judiciary from the Executive. The Sindh Government also modified
the 1974 Rules and in addition, framed the 1994 Rules which include Rules 4 and 5
relating to the selection and appointment of Judges in the District Judiciary. The
Rules adverted to by this Court in Sharaf Faridi’s case are in fact, the 1994 Rules as is
Civil Appeals Nos.212-213 of 2011
7
evident from the correspondence on record between the Sindh Government and the
High Court in 1993-94. In any event, the fact that the 1994 Rules emerged in the
background of the two Sharaf Faridi cases is uncontested before us. Even the
Province of Sindh, acknowledges it. The learned Advocate General has specifically
stated in his written submissions that “…the required notification[s] were issued in terms
of the judgment passed by the Larger Bench of the Honourable High Court of Sindh” in the
case of Sharaf Faridi (para 4 (f), Synopsis on behalf of the Province of Sindh).
13.
The changes made by the 1994 Rules to the process of appointment of judges
are, therefore, to be considered a contemporaneous statutory exposition of Articles
175 and 203 of the Constitution and the interpretation given to these in the Sharaf
Faridi cases. Being contemporaneous, this exposition enjoys a great deal of sanctity
and cannot lightly be set aside in favour of a materially different expression. The
value attached to such contemporaneous exposition is well-settled in our
jurisprudence. An accepted authority on the interpretation of statutes notes this in
no uncertain terms: “... the best exposition of a statute or any other document is that which
it has received from contemporary authority. Where this has been given by enactment or
judicial decision, it is of course to be accepted as conclusive.” (Maxwell on the
Interpretation of Statutes, 11th Ed. (Sweet and Maxwell Limited: 1962), p. 296,
Chapter 11). In Hakim Khan’s case, this Court inferred such a relationship between
the Preamble encapsulating the Objectives Resolution and the 1973 Constitution, the
latter being a contemporaneous exposition of the former. The Court stated: “…after
the adoption of the Objectives Resolution on 12th March, 1949, the Constitution-makers were
expected to draft such provisions for the Constitution which were to conform to its directives
and the ideals enunciated by them in the Objectives Resolution and in the case of any
deviation from these directives … the Constituent Assembly… [itself] would [have] take[n]
the necessary remedial steps … to ensure compliance with the principles laid down in the
Objectives Resolution.“ Hakim Khan and Others Vs. Govt. of Pakistan and others (PLD
1992 Supreme Court 595, 619). In the present case, we are brought to the conclusion
that the structural features of the 1994 Rules were a contemporaneous exposition of
judicial pronouncements about Articles 175 and 203 in the Sharaf Faridi cases.
Civil Appeals Nos.212-213 of 2011
8
14.
These features highlighting the change brought about by the 1994 Rules may
now be closely examined to get a better idea of the meaning of Articles 175 and 203.
As has been noted above, prior to the 1994 Rules, judicial officers in Sindh were
appointed by the Provincial Government on recommendations made by the Sindh
Public Service Commission. The High Court had no say in the process. It is as an
undisputed consequence of the Sharaf Faridi cases that changes were brought about
in the process of appointments to the Sindh judicial service. The fundamental change
that the 1994 Rules brought about, was that the High Court of Sindh was made a key
institution having a crucial role in the appointment of judges. The 1994 Rules, in
draft form, were before the Supreme Court and were noted with satisfaction as is
clear from the report of the case (at p.113). The 1994 Rules, it may be seen, made
express stipulation that the Provincial Selection Board which was comprised of
Judges of the High Court of Sindh would select the judicial officers for appointment
to the judicial service and the Government would make their formal appointments in
accordance with Rule 4 of the 1994 Rules. No appointments to the Sindh judicial
service were, therefore, possible under the 1994 Rules unless recommended by the
Provincial Selection Board comprising exclusively of Judges of the Sindh High
Court. This background which was part of the defining precedent in the case of
Sharaf Faridi has been elaborately referred to and commented upon in the impugned
judgment.
15.
The foregoing discussion makes it clear that the dispensation envisaged in
the 1974 Rules did not meet the constitutional benchmark for the independence of
the Judiciary and its separation from the Executive. This standard was satisfied
only by the above-mentioned structural change, brought about through the 1994
Rules. It only follows from this that anything which reverses this fundamental
change by making judicial appointments the exclusive preserve of the Sindh
Government and the SPSC, would amount to a violation of the constitutional
imperative. The impugned Notification dated 4.12.2008 is unconstitutional for
precisely this reason. It reverts the process of appointing judicial officers in Sindh
(in essential particulars), to the situation which was prevalent prior to 1994. In this
Civil Appeals Nos.212-213 of 2011
9
dispensation, the government makes appointments while the selection is done
through the SPSC. The High Court has been left with no role in the selection and
appointment of Judges in the Sindh judicial service. The High Court can, at most,
trigger the process of appointment by making a requisition, but the Court itself has
no say either in the selection of judicial officers for recruitment in the judicial
service or in their appointment. We have no hesitation in following precedent and
in adhering to the constitutional principles enunciated therein. As a consequence,
we hold that the impugned Notification dated 4.12.2008 and the amendments made
thereby in the 1994 Rules, are ultra vires the Constitution and of no legal effect. The
said Notification and the amendments thereby made have rightly been struck down
on this ground by the High Court of Sindh.
16.
This does not imply that every province is obliged to adopt a uniform
method for the selection and appointment of judicial officers. It is a hallmark of our
federal Constitution that each federating unit is free to carve out its own policy and
practice in such matters. ‘Parity’ between the federating units as urged by the
learned Advocate General, Sindh is not required and would be contrary to the
federal nature of our Constitution. The only requirement is that the policy and
practice adopted by each Province must conform to constitutional imperatives
elaborated in Articles 175 and 203 and the relevant precedents - which demand,
inter alia, that the High Courts must retain a significant degree of 'control' over the
appointment and selection process of judicial officers.
EXECUTIVE AUTHORITY : TRICHOTOMY:
17.
With great respect for the learning and erudition of the learned five member
Bench of the High Court, we do wish to differ with certain observations and
findings relating to the “past performance” of the SPSC given by the learned Bench.
In para 35 of the impugned judgment, the Court has cited certain comments filed by
the Government of Sindh and a report prepared by Mr. Justice Faisal Arab, to
conclude that these “speak[] volumes about the mismanagement and mal-practices
prevalent in the said Commission.” The High Court has also stated its opinion that “…
experience show [that the SPSC] has remained under the influence of the Executive and on
Civil Appeals Nos.212-213 of 2011
10
several occasions successfully given results as per their expectations or to say the least, on
considerations other than merits” (para 66). At the end of the judgment, the High
Court felt it necessary to go beyond the plea of the petitioner’s counsel and record
its finding that the impugned Notification was not just mala fide in law, but also
mala fide in fact (para. 87). With due respect to the learned Judges, these
observations and conclusions raise some fundamental constitutional questions, inter
alia, as to the scope of judicial review of administrative action and the
constitutionally mandated trichotomy of state functions. That the SPSC is an
executive body is quite enough to show that it cannot, under our constitutional
scheme, be vested with the exclusive power to select judicial officers. Moreso, when
the Government (as per Rule 4) is obliged to appoint the persons so selected. The
observations of the High Court adverted to above, however, go beyond this
principle and can be seen as blurring the separation of powers.
JUDICIAL REVIEW:
18.
In the exercise of its jurisdiction under Article 199 of the Constitution, the
High Court was called upon only to judge the legal and constitutional validity of
the impugned Notification. Passing judgment on the competence or good faith of
the SPSC or over the SPSC’s performance as an institution, past or present we say
with respect, was not called for in this case. By passing these remarks, the Court has
risked tainting the institutional credibility of SPSC on the basis of specific or
unspecified incidents adverted to by the High Court, which would be amenable to
correction through judicial review. Such taint in turn, creates far-reaching
repercussions effecting well settled constitutional principles. When a forum no less
lofty than a five member Bench of the High Court puts it in writing that the
Commission is blighted by “mismanagement and mal-practices” and makes
appointments on “considerations other than merits,” then it is only natural that
innumerable professionals who are regularly examined by the SPSC, be they
teachers, doctors, accountants, revenue officers etc, would flock to the courts
seeking to get the decisions of SPSC overturned based on the authority of a full
Bench of the High Court. Such a situation would be both inconsistent with
Civil Appeals Nos.212-213 of 2011
11
precedent and constitutionally questionable, given the doctrine of separation of
powers which requires that the three organs of the State are considered coordinate
and co-equal.
19.
The SPSC, it should be noted is an executive authority and a singularly
important institution. It was created by the Sindh Public Service Commission Act,
1989 (XI of 1989), an act passed in exercise of powers specifically conferred by the
Constitution. The institutional importance of a Public Service Commission becomes
clearer when we notice that such Commissions have been specifically mentioned in
all of Pakistan’s Constitutions. Article 242 of the 1973 Constitution stipulates that
the …Provincial Assembly of a Province in relation to affairs of a Province, may, by law,
provide for the establishment and constitution of a Public Service Commission… (2) A
Public Service Commission shall perform such functions as may be prescribed by law.”
20.
The SPSC, to which certain functions of the Provincial Government of Sindh
have by law been delegated under Article 138 of the Constitution, has correctly
been deemed by the High Court as an executive authority. It is clearly performing
an executive function and for this very reason, it cannot be given the task of making
appointments to the Judicature. It may, however, be noted that while it remains a
part of the Executive branch, for the effective discharge of its duties, it has been
provided a certain degree of autonomy from the political executive. Where such
autonomy is unlawfully impinged upon by the Executive in a given situation, the
remedy lies in rectifying the specific situation under Article 199 of the Constitution,
rather than declaring an Executive body to be incompetent or to be acting mala fide.
21.
The SPSC as specifically envisaged in the Constitution and the SPSC Act has
the backing and mandate of Article 242 of the Constitution. The High Court
undoubtedly
has
the
power
to
exercise judicial
review
over
specific
selections/recommendations made by SPSC. Such review, however, will have to be
situation specific and secondly, will need to meet the well settled criteria justifying
such review. An illegal decision taken by the SPSC while selecting District
Attorneys or Prosecutors for the Sindh Government can thus easily be set-aside by
the High Court in exercise of powers of judicial review vested in it under Article
Civil Appeals Nos.212-213 of 2011
12
199 of the Constitution. A specific selection or set of selections can also be reviewed
judicially on the ground of malice in fact, if there is sufficient material to establish
such malice. However, in view of the constitutional principle of trichotomy of
powers, a High Court would not be in a position to negate the powers of an
executive body such as SPSC which, as noted above, has the backing of an
enactment passed by the provincial legislature in accordance with Article 242 of the
Constitution. We, therefore, are of the opinion, that the general observations,
comments and conclusions drawn in respect of SPSC by the High Court were not
appropriate or necessary in the facts and circumstances of the present appeals. We
have felt the necessity of reiterating the constitutional structure of separation of
powers between the Executive, the Judiciary and the Legislature to ensure that the
selections/recommendations, past and future, made by the SPSC are not subjected
to litigation and judicial review on the basis of the observations and conclusions
made by a five member Bench of the Sindh High Court. This does not, in any
manner, restrict the case-specific power of judicial review vested in the High Court
under Article 199 of the Constitution and to examine the actions of the SPSC.
22.
For the foregoing reasons, while these appeals have been dismissed for the
reasons noted above, certain remarks and observations made by the High Court in
respect of the SPSC have not been affirmed.
Judge
Judge
Judge
Islamabad.
A. Rehman.
Announced on 9.5.2012.
Approved for reporting.
| {
"id": "C.A.212_2011.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
( Appellate Jurisdiction )
PRESENT:
MR. JUSTICE ANWAR ZAHEER JAMALI, CJ
MR. JUSTICE MIAN SAQIB NISAR
MR. JUSTICE AMIR HANI MUSLIM
MR. JUSTICE IQBAL HAMEEDUR RAHMAN
MR. JUSTICE KHILJI ARIF HUSSAIN
CIVIL APPEAL NO. 2133 OF 2006
(on appeal from the judgment of the
Lahore
High
Court,
Lahore
dated
24.10.2001 passed in CR No.2239/2000)
Mst. Noor Bibi and another
…Appellants
VERSUS
Ghulam Qamar and another
…Respondents
For the Appellants:
Mr. Iftikhar Hussain Shah, ASC.
Mr. Salim Khan Chechi, ASC.
For the Respondents:
Nemo.
Date of Hearing:
17.03.2016
JUDGMENT
Anwar Zaheer Jamali, CJ.— This appeal by leave of the
Court arises out of the judgment dated 24.10.2001 in Civil Revision
No.2239/2000, passed by learned single Judge in chambers of the
Lahore High Court, Lahore, whereby the said Civil Revision was
allowed, concurrent findings of the two Courts below, challenged
therein were set aside, and accordingly the suit for declaration and
change of mutation filed by the respondents was decreed.
2.
Briefly stated, relevant facts of the case are that on
24.07.1995, Respondent Nos. 1 and 2, being son and daughter of late
Nasir Hussain, instituted a declaratory suit against their real mother,
Mst. Noor Bibi (Appellant No.1), and their brother, Zulfiqar Ali
(Appellant No.2), in respect of agricultural land measuring 45 Kanal 14
CA 2133/2006 -2-
Marla, out of total land measuring 76 Kanal 4 Marla, bearing Khasra
Nos. 92, 124, 125, 126, 127, 621/128, 134, 135, 193, 194, 195,
634/280, 307, 308 and 309, Khewit No.13, Khatooni No.14 according
to Jamabandi for the year 1992-93, situated at village Gurri, Bhoora,
Tehsil and District Sialkot. Their claim was based on the assertions that
their father, Nasir Hussain, had died five years ago, whereafter
Inheritance Mutation No.181 dated 24.01.1994 was attested in favour
of his legal heirs according to which, Mst. Noor Bibi, widow of deceased,
got 1/8 share, Ghulam Qamar and Zulfiqar Ali, sons, got 4/5 and Mst.
Razia Bibi, daughter, got 1/5 out of 7/8. Late Nasir Hussain belonged
to Shia faith, wherein a widow is not entitled to any share in the
immovable property (lands) owned by her deceased husband. Further,
according to Shia law of inheritance, Ghulam Qamar and Zulfiqar Ali,
sons should have been given 4/5 share each and Mst. Razia Bibi,
daughter should have been given 1/5 share, whereas the widow of Nasir
Hussain (deceased) was not entitled to 1/8 share.
3.
The suit was contested by the parties, issues were framed,
evidence was recorded, and vide judgment dated 15.11.1997, it was
dismissed with the observation that the widow, as per Shia law of
inheritance, being mother of two sons and a daughter, not being a
childless widow, was entitled to inherit legal share from the legacy of
her deceased husband, Nasir Hussain.
4.
The appeal under Section 96 of the Code of Civil Procedure,
1908, filed by respondents against the judgment of the Trial Court of
learned Senior Civil Judge, Sialkot, before the Court of Additional
District Judge, Sialkot on 12.12.1996, was dismissed vide judgment
dated 01.03.2000, with the conclusion that the findings of the Civil
Court, that the widow of deceased Nasir Hussain, being mother of two
CA 2133/2006 -3-
sons and a daughter, was not a childless widow and thus entitled to her
legal share under Shia law of inheritance, were unexceptionable.
5.
Against these concurrent findings of the two Courts below, the
respondents then preferred Civil Revision under Section 115 C.P.C. before
the Lahore High Court, Lahore, on 13.06.2000, which was heard and
allowed vide impugned judgment dated 24.10.2001 with reference to the
application of ratio of judgment in the case of Syed Muhammad Munir v.
Abu Nasar, Member (Judicial) Board of Revenue, Punjab Lahore and 7 others
(PLD 1972 SC 346).
6.
We have heard arguments of the learned ASC for the
appellants, while respondents have chosen to remain absent.
7.
In his submissions, the learned ASC for the appellants briefly
stated admitted facts of the case that Appellant No.1 is widow of late Nasir
Hussain and real mother of Zulfiqar Ali (Appellant No.2), Ghulam Qamar
(Respondent No.1) and Mst. Razia Bibi (Respondent No.2). Nasir Hussain
had expired five years prior to the filing of suit, leaving behind amongst
others some agricultural lands as detailed in Paragraph No.1 of the plaint.
Therefore, keeping in view that parties were governed by Shia law of
inheritance, the two Courts below have rightly held the Appellant No.1
entitled to her share from the estate (lands) of late Nasir Hussain as in her
capacity as widow, but the High Court misinterpreted and wrongly applied
the ratio of judgment in Syed Muhammad Munir’s case (supra), while
equating the claim of Appellant No.1 to that of a childless widow, which is
admittedly not the position in the present case.
8.
Since the whole case of the respondents is based on the ratio
of the judgment in Syed Muhammad Munir’s case (ibid), it will be useful to
discuss the said case in some detail:
9.
In this case, the only issue involved was regarding the exact
connotation of ‘childless widow’ so as to decide whether it meant a
CA 2133/2006 -4-
widow from whose womb no issue had been born to the deceased or a
widow who might have had an issue from her womb to the deceased
which died before the opening of inheritance of her deceased husband.
It was in this background that not only detailed discussion of various
authoritative books of scholars and jurists of the subcontinent on this
limited subject was made, but Quranic verses and relevant Hadiths
were also taken into consideration to record the conclusion as follows:
“The Shias claim that the difference between Shias and
Sunnis arise as a result of their different interpretations
of some of the Quranic texts. The Sunnis, it is said,
accept the interpretations given by the four Imams,
namely; Imam Abu Hanifa, Imam Malek, Imam Ahmad
and Imam Shafi’e whereas the Shias rely on the
interpretations of the Holy Qur’an given by only the Ahl-
e-Bait (Members of the Household of the Holy Prophet)
beginning with Hazrat Ali and ending with the last
Imam and, as such, they claim that their interpretation
is likely to be more correct. No one, they maintain, could
have known the Holy Qur’an better than Hazrat Ali
himself
who
in
his
Book
had
recorded
these
interpretations according to the instructions of the Holy
Prophet himself.
In view of this difference in the interpretation of
the Qranic text itself, we feel that it would not be proper
on our part at this stage to attempt to put our own
construction in opposition to the express ruling of
commentators of such great antiquity and high
authority. To depart from a rule of succession which the
Shia community has universally been following ever
since the days of Imam Jafar Sadek, as evidenced by
the unanimous opinions of the Shia jurists on this point,
would be wrong. It is not open to us to change a settled
rule of succession, having the force of Ijma behind it at
this late stage. If a change is desired to be made this
work should be undertaken by the Legislature itself
after consulting the Shia Community. We can only point
out that the Urdu translation given by Allama Mufti
Syed Tyeb Agha Musavi Jazairi does not tally with the
English translation given by S.V. Mir Ahmed Ali, another
eminent Shia scholar.
This rule has, it appears, also been consistently
followed by the Court in this subcontinent since the
decision of the Calcutta High Court in Mst. Asloo V. Mst.
Umdutoonnissa. It was affirmed by the Privy Council in
1897 in the case of Aga Mohamed Jaffer Bindaneem v.
Koolsom Bee Bee. The Allahabad, Madras and Patna
High Courts have also followed it in Umardaraz Ali Khan
v. Wilayat Ali (1), Durga Das v. Nawab Ali (2), Mir Ali
Hussain v. Sajuda Begum (3) and Syed Ali Zamin the
contrary has been brought to our notice.
CA 2133/2006 -5-
We would, therefore, allow this appeal, set aside
the order of the High Court and declare that on the death
of Mst. Fatima, childless widow, her life estate
terminated and the bequest made by her in favour of
Mst. Hassan Zamani in respect of the Nizampur lands
came to an end. According to the Shia Law, even after
the termination of her limited estate under custom, she
acquired no share in the landed properties obtained by
her in lieu of her husband’s estate left behind in India,
according to the Shia Law.”
10.
From the above, it will be seen that at no stage of the
proceedings any issue had cropped up with reference to the status of a
widow with children under the Shia law of inheritance, rather the issue
dilated upon was in respect of a childless widow, being governed by
Shia law of inheritance. In this backdrop, we have no hesitation to hold
that the judgment of the Revisional Court impugned before us is not in
consonance with the real facts and the ratio of judgment in Syed
Muhammad Munir’s case (ibid), which, as discussed above, proceeded
on different premises. Under Section 113 of Mohammedan Law by Sir
D.F. Mulla (17th Edition), the status of a childless widow for the purpose
of inheritance under Shia Fiqah has been discussed as follows:
“Section 113. Childless widow.—A childless widow
takes no share in her husband’s land, but she is
entitled to her one-forth share in the value of trees and
buildings standing thereon, as well as in his movable
property including debts due to him though they may be
secured by a usufractuary mortgage or otherwise.”
Apart from it, right of inheritance of a Shia widow from the estate of her
deceased husband, not being a childless widow, is also clearly
established from the table of sharers under Section 90 of the same
book, where in the column of sharers she is placed at serial No.2, with
normal share of 1/8, being one or more.
11.
Similarly, in another book on Shia Law of succession titled
‘Muhammadan Law’ Volume-II, authored by renowned scholar, Syed
Amir Ali, only a childless widow has been shown disqualified from
CA 2133/2006 -6-
claiming share from the estate of her deceased husband, that too only
to the limited extent of lands left behind by her husband.
12.
Further, in the book of succession in Muslim family,
authored by N.J. Coulson, he has opined that:
“ ‘Childless’ here means, according to the text, that the
surviving widow is without a child, alive or in embryo
and subsequently born alive, at the time succession to
the estate opens. A wife, therefore, suffers from this
disability if she has had children by the prepositus who
have died before the succession opens or if her only
children are those of another marriage. The rule is
clearly aimed at ensuring, to a larger degree, that lands
remain within the husband’s family. A widow succeeds
to a share in her husband’s lands only when that
share, or the greater part of it, will in the normal course
of events be transmitted to the husband’s issue upon
her deceased.”
13.
This aspect of the case has also been considered in the case
of Syid Murtaza Husain v. Musammat Alhan Bibi 1909 IC (Vol.2) 671,
which lays down that under the Shia faith, a widow with a child from
her deceased husband is entitled to a share in both movable and
immovable property of her husband.
14.
This being the position, in our considered opinion, the
learned single Judge in chambers of the Lahore High Court committed
patent error of law and failed to exercise his jurisdiction in accordance
with law, which resulted in gross injustice to the appellants. Thus, such
judgment is liable to be set aside.
15.
Foregoing are the reasons for our short order dated
17.03.2016.
Chief Justice
Judge
Judge
Judge
Judge
ISLAMABAD.
17th March, 2016.
Mudassar/
“Approved for reporting.”
| {
"id": "C.A.2133_2006.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT: MR. JUSTICE MIAN SAQIB NISAR, HCJ
MR. JUSTICE SH. AZMAT SAEED
MR. JUSTICE UMAR ATA BANDIAL
MR. JUSTICE IJAZ UL AHSAN
MR. JUSTICE SAJJAD ALI SHAH
CIVIL APPEAL NO.2148/2016 AND CIVIL PETITIONS NO.813-L &
814-L/2015, 579-L, 606-L TO 608-L, 658-L, 1055-L, 1075-L, 1109-L,
1110-L, 2029-L, 2157-L, 2365-L, 3292-L/2016, 179-L, 802-L, 1490-
L, 1634-L, 2041-L TO 2050-L, 3195-L, 3210-L, 3385-L/2017, 88-L
AND 95-L TO 97-L/2018
(Against the orders/judgments dated 2.3.2015, 12.1.2015, 25.11.2015, 16.11.2015,
24.11.2015, 18.11.2015, 28.10.2015, 19.1.2016, 1.2.2016, 23.2.2016, 20.4.2016,
7.4.2016,
9.3.2016, 18.5.2016,
28.11.2016, 19.1.2017,
19.4.2017, 28.4.2017,
5.6.2017, 1.6.2017, 11.10.2017, 25.10.2017, 14.11.2017, 2.11.2017 and 24.10.2017 of
the Lahore High Court, Lahore passed in W.P.No.15430/2014, P.T.Rs.No.233 &
234/2012, I.T.Rs.No.356, 321, 369 & 340/2015, I.T.A.No.286/2015, I.T.Rs.No.5 &
34/2016, W.Ps.No.18231 & 19677/2014, I.T.Rs.No.118, 108/2016 & 87/2015,
P.T.R.No.26/2016,
I.T.Rs.No.343/2016
&
9/2017,
P.T.R.No.7/2013,
W.P.No.15659/2013, I.T.Rs.No.34486, 34516, 35358, 35364, 35369, 35373, 33411,
33422, 33470, 33518, 85689, 85691 & 89724/2017, 105/2016, 23149, 90000 &
90026/2017)
C.A.2148/2016:
Additional Commissioner Inland Revenue, Audit
Range, Zone-I Vs. M/S Eden Builders Limited
C.P.813-L/2015:
Commissioner Inland Revenue, Zone-I, Regional
Tax Office, Faisalabad Vs. M/s Crescent Textile
Mills Limited, Lahore
C.P.814-L/2015:
Commissioner Inland Revenue, Zone-I, Regional
Tax Office, Faisalabad Vs. M/s Crescent Textile
Mills Limited
C.P.579-L/2016:
The Commissioner Inland Revenue, Zone-I, Large
Taxpayers Unit, Lahore Vs. M/s Qureshi Textile
Mills Limited
C.P.606-L/2016:
The Commissioner Inland Revenue, Zone-III Large
Tax Payers. Tax House, Syed Mauj Drya Road,
Lahore Vs. M/s Suraj Cotton Mills Limited
C.P.607-L/2016:
The Commissioner Inland Revenue, Zone-I Large
Tax Payers Tax House, Syed Mauj Drya Road,
Lahore Vs. M/s Al-Nasar Textile Mills Limited
C.P.608-L/2016:
The Commissioner Inland Revenue, Zone-I Large
Tax Payers Lahore Vs. M/s Design Development
Fabrication Company (Private) Limited
C.P.658-L/2016:
The Commissioner Inland Revenue, Zone-I, Large
Tax Payers, Lahore Vs. M/s Fazal Cloth Mills
Civil Appeal No.2148/2016 etc.
-: 2 :-
Limited, etc.
C.P.1055-L/2016:
The Commissioner Inland Revenue, Zone-III, Lahore
Vs. M/s Sui Northern Gas Pipelines Limited
C.P.1075-L/2016:
The Commissioner Inland Revenue, Zone-III, Large
Tax Payers Unit, Lahore Vs. M/s Prosperity
Weaving Mills Limited, Lahore
C.P.1109-L/2016:
The Commissioner Inland Revenue, Zone-II, RTO,
Lahore Vs. M/s Eehabs Engineering Company
(Private) Limited, etc.
C.P.1110-L/2016:
The Commissioner Inland Revenue, Zone-II, RTO,
Lahore Vs. M/s Down Town Private Limited,
Lahore, etc.
C.P.2029-L/2016:
The Commissioner Inland Revenue, Lahore Vs. M/s
Jamhoor Textile Mills Ltd. through its Chief
Executive
C.P.2157-L/2016:
The Commissioner Inland Revenue, Lahore Vs. M/s
Medical Equipment Systems, Lahore
C.P.2365-L/2016:
Commissioner Inland Revenue, Lahore Vs. M/s Atta
Cables Pvt. Ltd., Lahore
C.P.2392-L/2016:
Commissioner Inland Revenue, Zone-III, Large
Taxpayer Unit, Lahore Vs. M/s Security General
Insurance Company Ltd.
C.P.179-L/2017:
Commissioner
Inland
Revenue,
Lahore
Vs.
Shakarganj Mills Ltd., Lahore
C.P.802-L/2017:
Commissioner Inland Revenue, Lahore Vs. M/s
Master Paint Industries (Pvt.) Ltd., Lahore
C.P.1490-L/2017:
Commissioner Inland Revenue, Lahore Vs. M/s
Jamhoor Textile Mills Ltd., Lahore
C.P.1634-L/2017:
Commissioner Inland Revenue, Lahore, etc. Vs. M/s
Kohinoor Textile Mills Ltd., Lahore, etc.
C.P.2041-L/2017:
Commissioner Inland Revenue, Lahore Vs. M/s
Ejaz Spinning Mills Ltd., Lahore
C.P.2042-L/2017:
Commissioner Inland Revenue, Lahore Vs. M/s
Ejaz Spinning Mills Ltd., Lahore
C.P.2043-L/2017:
Commissioner Inland Revenue, Lahore Vs. M/s
Crescent Bahuman Ltd., Lahore
C.P.2044-L/2017:
Commissioner Inland Revenue, Lahore Vs. M/s
Crescent Bahuman Ltd., Lahore
C.P.2045-L/2017:
Commissioner Inland Revenue, Lahore Vs. M/s
Crescent Bahuman Ltd., Lahore
C.P.2046-L/2017:
Commissioner Inland Revenue, Lahore Vs. M/s
Crescent Bahuman Ltd., Lahore
Civil Appeal No.2148/2016 etc.
-: 3 :-
C.P.2047-L/2017:
Commissioner Inland Revenue, Lahore Vs. M/s
Ellcot Spinning Mills Ltd., Lahore
C.P.2048-L/2017:
Commissioner Inland Revenue, Lahore Vs. M/s
Ellcot Spinning Mills Ltd., Lahore
C.P.2049-L/2017:
Commissioner Inland Revenue, Lahore Vs. M/s
Ellcot Spinning Mills Ltd., Lahore
C.P.2050-L/2017:
Commissioner Inland Revenue, Lahore Vs. M/s
Ellcot Spinning Mills Ltd., Lahore
C.P.3195-L/2017:
Commissioner Inland Revenue, Lahore Vs. M/s
KSB Pumps Company, Ltd., Lahore
C.P.3210-L/2017:
Commissioner Inland Revenue, Lahore Vs. M/s
KSB Pumps Company, Ltd., Lahore
C.P.3385-L/2017:
The Commissioner Inland Revenue, Gujranwala Vs.
M/s Tayyab Agencies
C.P.88-L/2018:
Commissioner Inland Revenue, Lahore Vs. M/s
Khawaja Spinning Mills Ltd., Lahore
C.P.95-L/2018:
Commissioner Inland Revenue, Lahore Vs. M/s
Kohat Cement Ltd., Lahore
C.P.96-L/2018:
Commissioner Inland Revenue, Lahore Vs. M/s T.U
Plastic Industry Company (Pvt.) Ltd., Lahore
C.P.97-L/2018:
Commissioner Inland Revenue, Lahore Vs. M/s T.U
Plastic Industry Company (Pvt.) Ltd., Lahore
For the Petitioner(s):
Mr. Sajid Ijaz Hotiana, ASC
Mr. Abdul Hameed Anjum, Secy. Legal, FBR
(In C.A.2148/2016)
Mr. Sarfraz Ahmed Cheema, ASC
(In C.Ps.813-L & 814-L/2015, 579-L, 606-L, 1055-L, 1075-L, 2157-L,
2365-L & 2392-L/2016, 802-L, 1490-L, 1634-L, 2041-L to 2050-L, 3195-L
& 3210-L/2017, 88-L, 95-L to 97-L/2018)
Mr. Ibrar Ahmed, ASC
(In C.Ps.579-L, 606-L, 1055-L, 1075-L, 1109-L, 1110-L/2016)
Mr. Ijaz Ahmed Awan, ASC
(In C.Ps.3195-L/2017)
Mr. Waqar A. Sheikh, ASC
(In C.Ps.3385-L/2017)
For the Respondent(s):
Ms. Ayesha Hamid, ASC
(In C.A.2148/2016)
Mr. Imtiaz Rasheed Siddiqui, ASC
Mr. Shehryar Kasuri, ASC
(In C.P.813-L/2015)
Mr. Shahbaz Ahmed Butt, ASC
(In C.Ps.2157-L, 608-L, 658-L, 1075-L/2016 & 1634-L, 2043-L, 2046-L to
2050-L/2017)
Mr. M. Ajmal Khan, ASC
(In C.Ps.606-L, 579-L/2016, 1490-L/2017 & 88-L/2018)
Civil Appeal No.2148/2016 etc.
-: 4 :-
Mr. Mansoor Usman Awan, ASC
(In C.P.2392-L/2016)
Mr. M. Iqbal Hashmi, ASC
Mr. Faiz-ur-Rehman, AOR
(In C.Ps.1055-L/2016 & 95-L to 97-L/2018)
Date of Hearing:
15.2.2018
ORDER
MIAN SAQIB NISAR, CJ.- These matters concern a common
question of law and shall be disposed of through the instant order.
Initially, on 16.09.2016, leave was granted by this Court in C.P. No.940-
L/2015 to consider whether or not the provisions of section 122(2) of the
Income Tax Ordinance, 2001 (hereinafter “ITO 2001”) being procedural in
nature would have retrospective effect. Subsequently, on 20.12.2017, the
notice was issued in C. P. No.813-L/2015 and connected petitions to
consider whether pursuant to the amendment brought about in section
122(2) of the ITO 2001 through Finance Act, 2009 consequential
extension in date of expiry of the limitation period would operate
prospectively or since the Limitation Act 1908 is generally interpreted as
a
procedural
law
therefore
the
amendment
would
take
effect
retrospectively.
2.
The facts obtaining to C.A. No.2148/2016 (arising out of C. P.
No.940-L/2015) are representative of the facts pertaining to the rest of the
petitions and therefore we shall only mention the same, for a detailed
recital of the facts of each petition would serve no useful purpose. In the
aforesaid appeal the respondent filed income tax return for the Tax Year
2008 on 30.12.2008. This was deemed to be an assessment order issued
to the taxpayer by the Commissioner on the day the return was
furnished in terms of section 120(1)(b) of the ITO 2001. The said deemed
assessment order could have been amended as per section 122(2) of the
ITO 2001 as it stood on the date of filing of the return in the following
Civil Appeal No.2148/2016 etc.
-: 5 :-
terms “an assessment order shall only be amended under subsection (1)
within five years after the Commissioner has issued or is treated as
having issued the assessment order on the taxpayer” [hereinafter referred to as
the “original section 122(2)”]. Therefore, in terms of section 122(2) of the ITO
2001, as it stood on 30.12.2008 the period within which the assessment
order could be amended was 5 years beginning from 30.12.2008 which
would mean that the assessment order could be amended uptill
29.12.2013. Thereafter, on 12.09.2013, the appellant issued a notice to
the respondent under Section 122(5A) of the ITO 2001 asking the
respondent to show-cause why the assessment order should not be
amended for the reasons cited in the notice. Finally, on 22.05.2014 an
amended assessment order was passed by the appellant against the
respondent under Section 122(5A) of the ITO 2001 demanding
Rs.49,671,892/- by way of additional tax, etc. It is to be noted that this
amended assessment order was passed 5 months after the expiry of the
limitation period in terms of Section 122(2) of the ITO 2001 as it stood on
30.12.2008. However, through the Finance Act, 2009 an amendment had
been made in Section 122(2) of the ITO 2001 to the following effect:-
“(2) No order under subsection (1) shall be amended by
the Commissioner after the expiry of 5 years from the
end of the financial year in which the Commissioner has
issued or treated to have issued the assessment order
to the taxpayer”. [hereinafter referred to as the “amended section
122(2)”]
In terms of the amended section 122(2) of the ITO 2001 the period of
limitation was to commence from 01.07.2009 and end on 30.06.2014.
Therefore, as per the appellant/tax department’s interpretation, the
amended assessment order was within the period of limitation. The
Civil Appeal No.2148/2016 etc.
-: 6 :-
respondent challenged the amended assessment order dated 22.05.2014
before the Lahore High Court through W. P. No.15430/2014 which was
allowed on 02.03.2015 (the impugned order) in the following terms:-
“The petitioner, who filed its tax return on 30.12.2008,
will be governed by section 122(2) as it stood in the
year 2008 and the amendment brought about in the
said
section
through
Finance
Act
2009
dated
30.06.2009 will not be attracted to the case of the
petitioner.’
3.
The learned counsel for the appellant argued that all
provisions relating to limitation are procedural in nature and therefore do
not create any vested right in favour of the respondent, therefore, the
amendment to Section 122(2) of the ITO 2001 brought about through
Finance Act, 2009 is to be given retrospective effect. He argued that even
otherwise the show cause notice dated 12.09.2013 was issued to the
respondent within the original period of limitation and therefore any
extensions and/or adjournments sought by the respondent(s) which
would extend the period in which the amended assessment order was
issued beyond limitation would not operate to create benefit for the
respondent and therefore the amended assessment order(s) were within
time. The learned counsel for the appellant relied on the judgments
reported as Commissioner of Income Tax vs. Asbestos Cement
Industries Ltd (1993 SCMR 1276), S. M. Junaid vs. President of
Pakistan (PLD 1981 SC 12), Income Tax Officer vs. Sulaiman Bhai
Jiwa (1970 Taxation (Vol.21) page 62), Commissioner of Income Tax,
East Karachi vs. M/s Reyaz-o-Khalid Co, Karachi (PLD 1973 SC 98),
Kohi-Noor Textile Mills Ltd vs. Commissioner of Income Tax, Lahore
(PLD 1974 SC 284) and Commissioner of Income Tax, Karachi vs.
Civil Appeal No.2148/2016 etc.
-: 7 :-
Eastern Federal Union Insurance Co. (PLD 1982 SC 247). The learned
counsels for the appellant department in connected petitions took the
same grounds.
4.
Ms. Ayesha Hamid, ASC, learned counsel for the respondent
in C. A. No.2148/2016 set out the respondent’s case: that the period of
limitation once it begins to run cannot be interrupted or extended unless
the legislature expressly provides for the same. She pointed out that the
amendment brought about to Section 122(2) of the ITO 2001 does not
extend the period of limitation from for example 5 years to 6 years.
According to her, had the terminal date of limitation been extended while
the original period of limitation had yet to expire, the appellant tax
department may have had an arguable case; but in the instant case the
terminal date was not extended and nor was the total period of limitation
extended beyond 5 years. Instead effectively it was the commencement
date of limitation which was disturbed and therefore through the
amendment brought about by the Finance Act, 2009 the period of
commencement of limitation was changed in case of the respondent from
30.12.2008 to 01.07.2009 and this could not have been done once time
began to run on 30.12.2008 and rights relating to limitation and further
tax liability, etc., had come to vest in the respondent on 30.12.2008. She
placed reliance on Commissioner Inland Revenue vs. Maj. Gen. (R) Dr.
C. M. Anwar (2015 PTD 242) which was upheld in an unreported
judgment
of
this
Court
dated
03.09.2014
passed
in
C.
P.
No.1306/2014 titled Commissioner of Income Tax vs. Maj. Gen. (R)
Dr. C. M. Anwar (in which leave to appeal was refused against the order cited at 2015 PTD
242), the review against the said judgment was dismissed vide order dated
25.02.2015 on the basis of judgment reported as Nagina Silk Mill,
Lyallpur vs. Income Tax Officer, A-Ward, Lyallpur (PLD 1963 SC
Civil Appeal No.2148/2016 etc.
-: 8 :-
322). Mr. Imtiaz Siddiqi, ASC, Mr. Shahzad Butt, ASC adopted the
arguments made by Ms. Ayesha Hamid and also supported the orders
impugned in their petitions on the basis of the reasons cited therein and
the fact that the vested rights of the respondents could not be lightly set
aside by the appellant by treating limitation as merely procedural in
these matters.
5.
We have the heard the parties and with the able assistance
of the learned counsel examined the short point involved in these
connected matters: whether limitation is purely procedural and therefore
the amended Section 122(2) ought to be given retrospective effect? It is
true that on a perfunctory level limitation has often been treated as a
procedural law. But this is not always so. Limitation laws by regulating
the periods during which particular remedies may be availed do create
vested and substantive rights too. The salient features of the law of
limitation have been examined in the judgment reported as Khushi
Muhammad v Fazal Bibi (PLD 2016 SC 872) wherein at para 4 (i) and
(vi) it has been held as under:
“(i)
The law of limitation is a statute of repose, designed to
quieten title and to bar stale and water-logged disputes and is
to be strictly complied with. Statutes of limitation by their very
nature are strict and inflexible. The Act does not confer a right;
it only regulated the rights of the parties. Such a regulatory
enactment cannot be allowed to extinguish vested rights or
curtail remedies, unless all the conditions for extinguishment
of rights and curtailment of remedies are fully complied with
in letter and spirit. There is no scope in limitation law for any
equitable or ethical construction to get over them. Justice,
equity and good conscience do not override the law of
limitation. Their object is to prevent stale demands and so
they ought to be construed strictly.
Civil Appeal No.2148/2016 etc.
-: 9 :-
(vi)
The intention of the Law of Limitation is not to give a
right where there is not one, but to interpose a bar after a
certain period to a suit to enforce an existing right”
6.
From the ratio of the above judgment it can be seen that the
law of limitation in so far as it regulates the period in which one party
can avail a remedy against another is not to be lightly disturbed as the
certainty created by limitation is necessary for the success of trade and
business, the more so when that limitation governs tax matters. In the
matters in hand, the respondents, at the time of filing their tax returns
were aware that these tax returns may be amended in terms of section
122(5A) of the ITO 2001 at any time up to five years from the date of
filing of the tax return itself. Thus, their planning in terms of their
possible amended and/or revised tax liability would extend for a period
of five years from the date of filing of their respective tax returns. After
the said five years were up, they could be sanguine that their tax return
was now final and they could no longer be burdened with an additional
demand. This means that a right related to the law of limitation came to
vest in the respondents on the date of filing of their respective returns in
terms of the provisions of the original section 122(2). However, the effect
of the amendment brought about through the Finance Act, 2009 was to
change that original date of commencement of limitation. Instead of
limitation commencing on the date of filing of the tax return, 30.12.2008
in the case of appellant in CA 2148/2016, limitation was now to
commence on the last day of the financial year in which the
Commissioner has issued or treated to have issued the assessment order
to the taxpayer, which in this particular appeal ibid would have been
1.7.2009. This means that the goal posts themselves were changed by
the amendment. It was not that the period of limitation was enhanced to
for example 6 years. On the contrary, post amendment too, the limitation
Civil Appeal No.2148/2016 etc.
-: 10 :-
period remained five years. Instead, the amended to Section 122(2) of the
ITO 2001 changed the commencement date for when limitation would
begin to run. And this was not permissible as certain rights had already
come to vest in the respondents on the date on which they had filed their
tax returns under the original Section 122(2) ibid. We are fortified in our
view by the ratio of the seminal judgment in Nagina Silk Mills’ case
(supra) wherein it has been held that:
“The limitation in this case under subsection (2) of section 34
of the Act had started running on the 1st of April 1956, and
that fixed the terminal date of the period of four years as the
31st of March 1960, with certainty under the law as it
then stood. It is a well-recognized principle of the law of
limitation that once time begins to run from a specified
date it cannot be interrupted or extended unless the
Legislature intervenes and makes express provision to
the contrary.
The Courts must lean against giving a statute retrospective
operation on the presumption that the Legislature does not
intend what is unjust. It is chiefly where the enactment would
prejudicially affect vested rights, or the legality of past
transactions, or impair existing contracts, that the rule in
question prevails.
……. the one that saves vested rights would be adopted in the
interest of justice, specially where we are dealing with a
taxing statute.”
[emphasis supplied]
7.
Because the terminal date of limitation is not changing
through the amendment brought about through the Finance Act, 2009
and because the period of limitation is not being extended per se
therefore the authorities cited by the learned counsel for the appellants
are of no avail and are distinguishable. In this view of the matter, hold
that the various respondents, who filed their tax returns before the
Section 122(2) of the ITO 2001 was amended through the Finance Act,
Civil Appeal No.2148/2016 etc.
-: 11 :-
2009 will be governed by section 122(2) ibid as it stood before the
amendment and the amendment brought about in the said section
through Finance Act, 2009 dated 30.06.2009 will not be attracted to
their cases.
9.
For the reasons above, the appeal as also the petitions are
dismissed.
CHIEF JUSTICE
JUDGE
JUDGE
JUDGE
JUDGE
Announced in open Court
on 4.4.2018 at Islamabad
Approved for reporting
Waqas Naseer
| {
"id": "C.A.2148_2016.pdf",
"url": ""
} |
1
ن�� � ِ�ا�
)�ِ�� ر�اِ�ا (
د��:
� ،ن� �ا ز�ا ب�
� ،ن� � �ود ب�
�ا�دى� �ا٢١٩�ا۔/٢٠١٥
� ِ�ز)٢(١٨٥ِ �آ،ل� �� ن�� ١٩٧٣ ء
) ف�ِ � ى�ڈ و �� ِ�ا� ر�� ،ر�و��، ر�و�،ہر� ٢٠١٥۔٠٤۔١٧
رد �ا�د ���ى� �ا�رد٢٠١٠/٢٣(
�ا �ر �و ��ا� )ہ� �ا(
م�
�ۃںا� ف� � � ںا� ) ل��(
��ہ� �ا: قور� � �ا�،�� �و � ِ�ا�
ہ� � ��ر �� ِ�ا� �و � ،
�� ل��: �� �� �� ِ�ا� �و � ،
�� ِ�ر�: ٢٠�د، ٢٠١٦ء
C.A. No. 219-L of 2013
2
�
� ،ن� � �ود:۔
�� ��� :
ل� �� ١ ى�د � ٰ�� � را�اِ� �
��� � �اد � �ا�ا ِ�ا� ٔ�� �� ہو �
� �ارا٥/٣٦� � ت��ا � � روا � �� روا �� � ١٨٧،٢٥٤ روا ١٤٧ � ر� ��� �
ف�ِ ك� و �� ت�او � ء� � �� ��� � �و �ل � �ٔ� � � ق� ��� �
۔� �� � روا �د ��د � � روا � م�� روا
٢۔ �� �ا�ا ِ�ا� ت� � � ����ُ� �و ت�������� �� � ٢ و ن�� ف� � ر� � � ِ
�� ف�� ر�ِت� �� � �ر سا � ور � ت�او ��� ُ� ہ� �ا ت� ر� �ِ / ��
��و سا �� روا � � ہ ِ�ا�و �� �ا�ا ِ�ا� � ء � � �ا تد� � �� � � �
�� �� ��� روا � �ا � ��� � روا � ل� ل� ۔� جر� �ا و ى�د �ٰ� �
�ا� ى� �ا�د ٢٤٢ ىڈ۔ /٢٠٠٧ � �� ِ�ا� �� � �� � � � �اد � �� ِ�ا�
ں�ود� ں�ا�ى�ڈ و م�ا ل� �ا� �� �� د� � �� � ى�د روا � ر�ٰ� �
ل� � ۔� �اد ا� �ا �ار ہا� � ہ� �ا � � ں�� � � � رد� ى�ڈ �ِ
٣۔ � �� � � � تد� روا � � � ��د � � ِ�ا� ��و �� � �
� � � � ہ�� ر� � � ن�� روا ۔
٤۔ ل� � � � ر�ا � �� � � � � ع� سا �� ت�او �ِ � �ارا �
� � � روا � � � � ر�ا � � �� �ہ�� ۔� �� � � �آ ں�ود ہ�د � روا
�ا �� � � �ا سا ر ِ�� ہ� �ا � �� �� � � ول� ��ا ۔� �� � � �
ہ� �ا � � ��� ہ�او � �ور زور �ا � �� � � � � � �ا � زور �ا � � �ِ
C.A. No. 219-L of 2013
3
� � ��� � ��� ہ�او � ہ� �ا �و سا � � ں� ح�ل � � � � � ��
�د � ہو� � تر� � ہو ا� � ہ �و � � � ىر� � � � ��� � �و � ��
ل�ا��� � ہ� �ا ��� ہ�او � � �او � ر� � �ا � � ہ� �ا تد� روا
�ا � � � � ��� و �و � ��� �و سا � � ہ� � � ف� � � �ر � ر�
� ر�ا � ى� �۔
٥۔ ن�� � � ��ن�� و ��ا �ار � � ��� � � � � ل�ُا � � �
�ا� �ز� � � �د �� � ں� �ا روا � مو� و مز� �� ار� � � � ىر� � ط� �ا �
� � � � � ��� � � � � سا � � �� �� �� و � ��� � � � � ۔� ��
� �� � جرد � �ذ �ا� � �� �ر�:۔
)ا( � دا�� �� و ��، �� � � � ف� � ہ�د �،� � �� � �
ا �۔ر�
)ب( �ہ��� � � � � � ف� � � �� و � ى�� ��ا � � ر�
۔�� ر�اِ
)ج( �� د� ہ�د � �ا / � � � دا�� ��ہ��ا � ٔ� �و �
ےد ہ� � دا���� ے� � ِ�ز دا�� �ا روا ��د � � � �
� � �عرا� � راد �ا� � �راد � ے� ن�ا ��ز �� � سا � � �
� � ند سا � ےد �� ى��ہ�� � ��/ روا �� � ر� ��
�ا� � ن�آ � دا�� � راد ى۔ےد� عو� �� ادا � �� � ���
٦۔ ل� �� � /��ٗہ� روا �� ��ز � � ��� د� ِ�� � ل�ا � �
روا � � �ا سا ا� ۔� � ر�ا � ر� �� تد� ل� �� روا س� � � �� �� �
�ا�� �� � �� � � ہ� ا � � � � ہو � �� � تد� �ر م�� � ر� ِ�� �
ل� ب� � ��زِ � /�� ہو ا� � ��� ،� � ہ� �ا �� ن�� �ور زا � � �
C.A. No. 219-L of 2013
4
�� � و �و � � �� � ہ� �ا � � � ز� � �� ہ�� �� � سا �� � �
�� ا� � �ز� �ط ِ�� �او ار� ں� روا �ر �� � � ور � ن�� � ُ��� روا ��
�� � � � زو� و ِ�� � � �� ۔ِ�ا �ارا � � � ر� ��ز � �� �� � ل��� �
� �ہ�� � �۔� ��د
٧۔ د � � ہ� �ا �و �� �� ت� � �و سا ہ� �ا ��� ہ�او �� � ىد �
روا � � ادا راد� � ��� روا �و ر� � � �� �� � سُا � �� � ر� � ا� �ِ
�� ت�اوِ�� رواً �ر�ا � � � �� �� � �ا � تد� �� � � سا � �� � ��
� � � � ہر�ا � � سا ر�رد روا ف�ا � ب�د م� � � تد� � �� �ا � � ا
�� �ا روا �� ف� � ں��ُا � � ن�� � روا � �ا � � � � �اد � �ا�
�و ل�ا � � � ہ� �ا �و �� �� ۔� �� � ب�ا � � � � فدا� � ��
�� � �د ��٢٥ � ٣٠ � � � ل� ������ � � � � � � � جرد �� �� � � ى����
ىر� ط� � � � ٔ �� ا� � د��� � � � �ا� � � � � ��� � ور � ن�ُ
� �� � روا ل�� �� �و �� � �ا� ں� � ىر� ے�د � �ا ا� � �ز� ��
۔� �ٔ� � روا � � �� � � � ل� تا�� � � �� ��ِ
٨۔ ا � � � �اد� ل�ا � �َروا ��د ، ھ� ن � � زارد ٔ�� � ے�� �ا� ��
وا ��ار� ر� � ت�اور �� � ۔� �� � ر� � ا� � زور �ا � � ت�� ىو�د � �
ُا � � �� � � � � �� � �دن �ا� نا�� ت�وا �ا � � ں� ۔� �� � �ار �
د� � �ارو � نا ت�وا �ا روا � �� � ے� � ��او � نا ف� � �� � نا � ں�
سا � �� �ر مو� � � � �� ��ا� روا ا� ِ�ا� � � � � �� � �� ��
� ں� �� � �� � د�� ہ�ذ ا�� �� � جرد � ��:۔
C.A. No. 219-L of 2013
5
"ہ�و �ا ر� م� ہ�و � � ہ�ر نا� ��ِ") ِ�ا� ،��ر �� ِ� ���
ل� ہ� �� �٢٠٠٨ � � ١٣٨٤(� � �� �� � � سا۔ ��
�و ل�ُا � � � �� �ا � �ا� � � روا ھ� نا ��د � � �
� ى�ر �� � � ت� ر� ى� � � � � � � ر� دا�� � �رذ ِِ
��� روا �و ��� ہو � تر� سا � � ى�ر روا � � �او ��ا ہ��
� � � � � �� �ہ�� �� � � �� روا �� ،�� � �ا � �
۔� �
� � � سا نا� �"�� � م� ہ� � ل�") ِ�ا� ،��ر �� ِ� ���
ل� ہ� �� �٢٠١٦ � � ١٢٢٥( � � � � �و ل�ا �رز � � �
� � �� ہ�� � � سا �� � ن�� ��د � ہد� � � روا ��
�� ط�ا �ز� ��د را� ك� � ر� �� � ہ�� � � سا�د تر� �ِ
۔� �� � ر�
نا� �� ح� �اِِ"� �� م�ء�رو ��� �ر� �ر � م") �� ِ� ���
ل� ہ� �� � ِ�ا� ،��ر٢٠١٦ � � ٨٦٢( � ��د ل�ُا � � �
۔� جرد �� ل� �� � ِ�ا� ��ر ہ� �� � ��� ح� �ا ِ٢٠٠٨ � �
١٢٠١نا� �� ِ"ہ�و � � م� ہ�و �� م�" نا� �� روا ِ" �ا ں�
م� ء�رو ��� �ر� �د� � � ت�" ) �� � ِ�ا� ،��ر �� ِ� ���
� ہ� ل٢٠١٣ � � ٨٦٨ (۔� جرد �� � ت� ىر� �د � �
٩۔ � � ر� � �� ِ�ا� � �� � � �� � ہ،� � � �د �ا� � �� �� � �
نا نا� �� �� ِ� � ِ"ى� رو� م� ت� م� نا�د ود و � م�") � �� ن��
ت� � ��ر � ل� ہ� ��١٩٩٠ � � ٠١( ��ڈ � �ا� � ے�� ےر� � � �
�دا � نُا ، �� �او �� �� روا ��� � نا ح� �ا روا � � ��ا � � � �ا� روا �
�� � � � � � ق�ا� ۔� � � �و ل�ا نا ہد� �و��اں � ء� � ى�د ٰ
�� � ��ِ ند� ں� ح� � �ور زور � � � تد� � � � �و � �� � ق�ا �ِ
C.A. No. 219-L of 2013
6
� � تا� ہ� � �ارا � �� نا�� � � ىر�� � � ىر�� � �ا � �
� �� �ارا ��� ا��� س�د� � �ر � � � �ن�� � د� ق�ا �� �� ا
�� � � ۔
� � �ر� � � � تد� روا � و � �� �ر������
�� � �ا� � روا � ہ���
� � � ِ�ز � � ور � � �� � ا� �� ق�ا �ار ہا�ُِ�� � �� ِ�ا�ا � � ���
� ِ�ز �ا ا� ۔� �آ � � � ��ا � � � � � � �آ � � ��،� �� � جر� ��
�� ��۔� �� �ر ��
�ر� � � � ا� ِ�ا� ت��و �� �ر�٢٠۔١٢۔٢٠١٦�� � �� � � � � �
� �� �ا�ود � �ذ �:۔
“For the reasons to be recorded later, this appeal being without merit
is dismissed.”
١٠۔ � �� � ھ� � �ا��� روا۔�
�
�
�آ م�ا،د٢٠ �د ،٢٠١٦ء )ر� � � ��ا(
�ا�و
| {
"id": "C.A.219-L_2015.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
Present :-
Mr. Justice Mian Shakirullah Jan
Mr. Justice Tassaduq Hussain Jillani
Mr. Justice Nasir-ul-Mulk
Mr. Justice Syed Jamshed Ali
Civil Appeal No.2206/2005, Civil Appeal No.721/2006, Criminal Appeal No.304/2003,
Civil Petition No.459 of 2006 and Suo Moto Case No.8/2006,
In Civil Appeal No.2206/2005 & 721 of 2006
On appeal from the orders dated 07.09.2006 10.03.2006 of the High Court of Sindh, Karachi, passed in
CPD No.371 of 2005 & CP.D. No.1664 of 2005, respectively.
Pakistan Medical & Dental Council Appellant
Versus
Ziauddin Medical University & others Respondents
For the Appellants : Mr. M. Akram Sheikh, Sr.ASC
Assisted by Barrister Rahil Kamran Sh.
Mr. M. A. Zaidi, AOR
For the Respondent No.1 : Mr. Anwar Mansoor Khan, ASC
For the Respondent No.2 : Mr. Tariq Mehmood, Sr.ASC
For the Respondent No.3: Ch. Aitzaz
Ahsan, Sr.ASC
Assisted by Barrister Gohar Ali
Khan.
For the Respondent No.4: Ms.
Nahida Mehboob Elahi, DAG
Raja Abdul Ghafoor, AOR
For the Respondent Nos.1&2: Mr.
Anwar Mansoor Khan, ASC
(in
C.A.No.721/2006)
Mr.
Tariq
Mehmood, Sr.ASC
Raja Abdul Ghafoor, AOR
For the Respondent No.3: Ms.
Nahida Mehboob Elahi, DGA
(in C.A.No.721/2006) Ch. Akhtar
Ali, AOR
For the Applicant : Mehr Khan
Malik, AOR
(in C.A.No.721/2006)
In Crl Appeal No.304 of 2003
On appeal from the order dated 03.07.2003 of the Lahore High Court, Rawalpindi Bench, passed in Crl.Org. No.107-W/2003
Dr. Sohail Karim Hashmi, etc Appellants
Versus
Healers Education Society, etc Respondents
For the Appellant : Mr. M. Bilal, Sr.ASC
For the Respondent : Mr. M. Munir Peracha, ASC
Mehr Khan Malik, AOR
Ch. Akhtar Ali, AOR
In Civil Petition No.459 of 2006
On appeal from the order dated 25.05.2006 of the High Court of Sindh, Karachi, passed in C.P. No.D-
619/2006
Pakistan Medical & Dental Council Appellant
Versus
Federation of Pakistan & others Respondents
For the Petitioners : Mr. M. Akram Sheikh, Sr.ASC
Assisted by Barrister Rahil Kamran Sh.
Mr. M. A. Zaidi, AOR
For the Respondents : Mr. Anwar Mansoor Khan, ASC
Raja Abdul Ghafoor, AOR
Ch. Akhtar Ali, AOR
In S.M.Case. No.8 of 2006
Fraud by a Fake Medical College i.e. Independent Medical & Dental College, Faisalabad
For the Applicant : Malik Qamar Afzal, ASC
Barrister Ch. M. Jameel, ASC
On Court’s Call : Sohail Karim Hashmi (Secy. PMDC)
Fazal Ahmed, President PMDC
Ms. Nahida Mehboob Elahi, DAG
Raja Saeed Akram, Asst.AG, Pb.
Raja Abdul Ghafoor, AOR
Ch. Akhtar Ali, AOR
Mr. Ejaz Muhammad Khan, AOR
Date of hearing : 28.11.2006
JUDGMENT
Tassaduq Hussain Jillani, J-. Medicine has always been a noble, rewarding and cherished
profession. No wonder, down the ages, some prompted by mundane considerations, some
inspired by idealism and some by the belief that healing is a divine virtue, young men and
women in great numbers have chosen it as a career. By the nature of their calling Doctors
have been respected, adored and at times subjected to, not too flattering a comment. The
poet John Owen was not very off the mark when he said: -
"God and the doctor we alike adore
But only when in danger, not before;
The danger o’er, both are alike requited,
God is forgotten, and the Doctor slighted".
Driven by lofty objectives, motivated to achieve higher standards of professional excellence
in Medical & Dental research as also to provide quality services to the needy and to ward off
the element of "slight", in public comment, efforts were made to establish regulatory bodies
all over the world. In the Indian subcontinent was passed the Indian Medical Council Act
1934 which formed a body by the name of Indian Medical Council. The Pakistan Medical
Council of 1951 replaced by Pakistan Medical & Dental Council established under the
Pakistan Medical & Dental Council Ordinance, 1962 are successor bodies to the said
Council.
2. Responding to the public demand many private institutions have been established to train
and impart medical training and award degrees in a medical qualification. The attempt by the
Medical & Dental Council to keep a balance between the mandate of law and the demand of
institutions seeking recognition of their respective medical qualifications have led to conflict
of interests and litigation. The cases in hand are reflective of this dilemma in which
following issues have cropped up for consideration.
What is the nature and import of the concept of recognition of a
medical qualification as contemplated in Section 11 of the Pakistan
Medical & Dental Council Ordinance, 1962?
What is the nature of ‘consultation’ with the Council by the Federal
Government, which the law requires the latter to have before passing
an order under various provisions of the Ordinance?
Whether every chartered University having a medical faculty is
entitled to representation in the Pakistan Medical & Dental Council in
terms of Section 3 of the Ordinance?
Whether the teaching staff of each Medical & Dental Institution in
Pakistan is entitled to representation in accord with Section 3 (f) of the
Ordinance?
Whether the Pakistan Medical & Dental Council is empowered to ask
for information, make queries, issue directions and take other steps
prescribed in law to carry out the purposes of the Ordinance?
3. The afore-mentioned issues have arisen out of following set of facts and circumstances.
4. In Civil Appeal No.2206 of 2005, Pakistan Medical & Dental Council has challenged the
order dated 07.09.2005, passed by a learned Division Bench of the High Court of Sindh
Karachi, vide which the constitution petition (C.P.D. No.371 of 2005) was allowed & it was
held and directed as under:-
"We are of the considered opinion that the Petitioner No.2 University
as well as the Medical Institutions owned by the Trusts which
Petitioners No.1 and 3 represent are entitled to be represented on the
Council of the Respondent No.1. Indeed the Respondent No.1 is
entitled to seek such information as may be necessary or cause
inspection of medical or dental institution as is permissible by section
20 and 21 and seek compliance of Regulations framed under section
33(2), it cannot take away the petitioners’ right to be represented on
the Council till such time that their recognition are revoked. We,
therefore, direct the Respondent No.1 to hold elections within 02
months from the announcement of our short order dated 07.09.2005
Above are the reasons of the aforesaid order".
5. In Civil Appeal No. 721 of 2006, Pakistan Medical & Dental Council has challenged the
judgment dated 10.03.2006 passed (in C.P. No.D-1664 of 2005) by a learned Division Bench
of the same learned High Court, vide which the earlier judgment/direction referred to in the
preceding paragraph was reiterated and the Pakistan Medical Council was directed to
convene a meeting for organizing the election of members for representing the
respondent/petitioner in the Council in terms of Section 3(1) (b) and 3(1) (f) of the
Ordinance.
6. In Civil Petition No.459 of 2006, Pakistan Medical & Dental Council has challenged the
order dated 25.05.2006 passed in C.P. No.D-619/2000, whereby the learned High Court of
Sindh, Karachi held that since the Council did not hold elections in terms of the order passed
in C.P.No.D-371 of 2005 (referred to in para 4 above), petitioner Nos.1 to 3 & 5 to 8 (Now
respondent Nos.2 to 8 before this Court) shall have a right to participate in the meetings of
the Pakistan Medical & Dental Council unless the Notification dated 18.04.2006 of Ministry
of Health declaring them elected as members of the Council under section 3(1)(b) and (f) is
set aside.
7. In Criminal Appeal No.304 of 2003, filed by Dr. Sohail Karim Hashmi, Secretary,
Pakistan Medical & Dental Council, the charge sheet dated 03.07.2003, framed by a learned
Division Bench of the Lahore High Court, has been challenged, wherein the learned
Division Bench held that prima-facie the appellant was guilty of violating the undertaking
given before the High Court in Intra Court Appeal No.153 of 2003, with regard to carrying
out inspection of a medical institution. It issued show cause notice to the appellant and Dr.
Riffat Ansari, Assistant Secretary, Pakistan Medical & Dental Council, as to why they
should not be punished for committing contempt of the Court and the reply was sought
within four days.
8. In Suo Moto Case No.8, some students of the independent Medical & Dental College,
Faisalabad, addressed a petition to the Hon’ble Chief Justice of Pakistan, levelling serious
allegations against the College administration and submitted that on account of omissions
and commissions of the College, the students pursuing their professional Degree/Courses
are not certain about their future as the medical qualification being given by the respondent
had not been accorded recognition by the Pakistan Medical & Dental Council. It has been
prayed that the Pakistan Medical & Dental Council be directed to close down the College
and accommodate the students in other recognized Medical Institutions of the country.
9. The Pakistan Medical & Dental Council is a statutory body and in terms of the Pakistan
Medical & Dental Council Ordinance, 1962, it is a regulatory authority for the universities
having Medical & Dental Faculties and Institutions in Pakistan. The Council has been of the
view that only those institutions and the faculties of such medical universities are entitled to
be represented in the Council which are imparting education and training for the grant of
medical qualifications which have been accorded recognition by the Federal Government in
consultation with the Pakistan Medical & Dental Council in terms of Section 11 of the
Ordinance. It has maintained that the elections for the membership of the Council from
amongst the Medical faculties of universities and Medical Institutions have to be conducted
by the Council. Reference was made to Section 3(1)(b) & (f), Sections 4 and 11 of the
Pakistan Medical & Dental Council Ordinance, 1962. The Council has been jealous of its
mandate to carry out inspections of the Medical & Dental Institutions & their examination
centers with a view to ensuring uniform quality and standard of the medical education in
Pakistan. Respondent Nos. 1 to 3 (in C.A. No.2206 of 2005), were petitioners before the
learned High Court of Sindh (in C.P. No.D-371 of 2005). Their precise case before the
learned High Court was that all Medical and Dental Institutions recognized by the Federal
Government have a right to be represented in the Council; that all the three respondent-
institutions have been accorded recognition in terms of the Pakistan Medical & Dental
Council Ordinance, 1962; that elections were carried out by the respective institutions, and
therefore, having been elected by Medical faculties, they have a right to be represented in
the Medical Council. Civil Appeal No.721 of 2006 is directed against the order of the
learned High Court of Sindh in which the same learned Bench reiterated its order passed in
C.P. No.371 of 2005. The impugned order (in Civil Petition No.459 of 2006) dated
25.05.2006 was passed by a learned Division Bench of the High Court of Sindh in which
constitution petition of Respondent Nos. 2 to 8 representing various medical institutions was
allowed. In the said petition, filed by several representatives of medical institutions, it was
alleged that notwithstanding the order passed in C.P. No.371 of 2005 by the Sindh High
Court (which has been challenged in Civil Appeal No.2206 of 2006) the Medical & Dental
Council had not complied with the order on the ground that recognition granted to the
medical institutions was provisional, therefore, they were not entitled to be represented on
the Council.
10. Learned counsel for the appellant representing the Pakistan Medical & Dental Council
contended that the judgment of the learned High Court of Sindh holding that respondents
are entitled to be represented in the Council is not tenable as it does not appreciate the
mandate and import of Section 3(1) (b) & (f) of the Pakistan Medical & Dental Council
Ordinance. Under these provisions, only those faculties of medical institutions have a right
to be represented whose medical qualifications have been recognized by the Federal
Government in consultation with the Pakistan Medical & Dental Council. Referring to
various provisions of the Pakistan Medical & Dental Council Ordinance, 1962, learned
counsel maintained that the lawmakers have prescribed an elaborate procedure of
inspection/of inquiry and of inspection of examinations by the Council.
11. Mr. Anwar Mansoor Khan, learned counsel representing the private respondents,
contended that under the Ordinance there is no requirement of recognition to a medical
institution by the Federal Government which already stands affiliated with a Pakistan
University established by law. He added that Ziauddin Medical University is a chartered
University and under section 3 (1)(b) of the Ordinance it has right to be represented in the
Council without prior recognition in terms of Section 11 of the Ordinance. He further added
that the medical institutions are of two kinds i.e. firstly those which are merely imparting
training and secondly those which are imparting training and granting medical degrees. So
far as former institutions are concerned there is no concept of recognition by the Federal
Government and the institutions which stand affiliated with the Ziauddin Medical
University also do not require recognition by the Federal Government as they do not grant
degrees and it is the University which grants degrees. He lastly submitted that since the
faculties of medical institutions have held elections for members who are to represent them
in the Pakistan Medical & Dental Council, they have a right to be represented and the
judgment of the learned High Court of Sindh is unexceptionable. Learned counsel also
brought to the notice of this Court that the medical qualifications being granted by
respondents No.1 (Ziauddin Medical University) & No.2 (Fatima Jinnah Dental College and
Hospital Trust) have now been accorded recognition by the Federal Government in terms of
Section 11 of the Ordinance.
12. Mr. Tariq Mehmood, ASC, representing the Fatima Jinnah Dental College & Hospital
Trust, submitted that the institution has been accorded recognition by the Federal
Government and to its extent there is no live issue.
13. Mr. Aitzaz Ahsan, Sr.ASC, learned counsel representing Respondent No.3 (Sohail
Medical Trust) submitted that the institutions granting medical qualifications affiliated with
a Pakistan University established under the law need not be specifically mentioned in the
First Schedule of the Ordinance; that the respondent-institution was granted provisional
recognition by the Pakistan Medial & Dental Council; that the concept of provisional
recognition is not alien to the Ordinance; that under Section 23 of the Ordinance there is a
concept of provisional registration of a medical practitioner; that by extending provisional
recognition the Council obliged the respondent to invest a huge sum of money in those
medical institutions and it was only with concurrence of the Council that several students
were granted admissions in those institutions. It would be rather harsh both to the
management and to the students to withdraw such recognition at this stage. He added that the
respondent-institution is training and imparting knowledge but the medical qualification is to
be granted by the University with whom the respondent-institution is affiliated which is
sufficient for the purposes of the Ordinance. He contended that there is no concept of
granting recognition to a Medical or a Dental Institution, the same was inserted for the first
time by Ordinance No.VII of 1999 which was promulgated on 25th May 1999. But it was
never placed before the National Assembly / Parliament within the period stipulated under
the Constitution and it lapsed. This according to him reflects the intention of the lawmaker
i.e. to dispense with the requirement of prior approval and recognition by the Federal
Government to establish a medical institution. Now the Ordinance contemplates recognition
of medical qualification and not of a medical institution or a University.
14. Ms. Naheeda Mehboob Elahi, learned Deputy Attorney General, submitted that the right
to confer degrees, diplomas, licenses or certificates or other documents to "practise scientific
Medical and Dental System" is with the authorities referred to in Section 3 of the Medical &
Dental Degrees Ordinance, 1982 and the Schedule thereunder. She added that unless the
Medical or Dental qualification for which the respondents-institutions are imparting training
is recognized by the Federal Government in consultation with the Pakistan Medical & Dental
Council in terms of Section 11 of the Pakistan Medical & Dental Council Ordinance, 1962
these institutions can not seek representation in the Council.
15. To appreciate the issues raised it would be in order to refer to the relevant provisions of
Pakistan Medical & Dental Council Ordinance, 1962. The main object of the Ordinance is
reflected in its preamble and it was, "to consolidate the data relating to the registration of
medical practitioners and dentists and re-constitute (Medical & Dental Council) in Pakistan
in order to establish a uniform minimum standard of basic and higher qualification in
medicine and dentistry". The recognized medical qualification has been defined in Section 2
Clause (1) to mean, "any of the medical qualifications included in the first and second
schedule or recognized under Sections 14 & 15 of the Ordinance". The composition of the
Medical & Dental Council is spelt out in Section 3 of the Ordinance, which reads as under:-
"3. Constitution and composition of the Council.- (1) The Federal
Governemnt shall cause to be constituted a Council consisting of the
following members, namely:-
one member to be elected by the National Assembly from
amongst its members;
one member from each Province, to be nominated by the
Provincial Government;
one member each to be elected by the members of the
Syndicate of each Pakistan University from amongst the
members of the medical faculty or the dental faculty of the
University or, if the University has both a medical faculty
and a dental faculty, from amongst the members of the two
faculties;
four members to be elected from amongst themselves by the
registered medical practitioners;
four members to be nominated by the Federal Government
of whom at least one shall be a member of the Armed
Forces Medical Services;
two members to be elected amongst themselves by the
registered dentists;
one member to be elected by the teaching staff of each
medical institution and dental institution in Pakistan from
amongst the Professors on its staff, if such institution trains
for a medical or dental qualification which is for the time
being recognized under this Ordinance;
one member, belonging to the legal profession, to be
nominated by the Chief Justice of Pakistan;
the Director General of Health, Government of Pakistan.
The President of the Council shall be elected by the
members of the Council from amongst themselves.
No act done by the Council shall be invalid on the ground
merely of the existence of any vacancy in, or any defect in
the constitution of, the Council".
16. The elections of members to which reference has been made in Section 3 (b) & (f) are to
be conducted by the Council in such manner as it may think fit (Section 4). The function and
power of the Council are provided in various sections of the Ordinance. One of the sections
is Section 11 which is as follows:-
"11. Recognition of medical qualifications granted by medical Institutions in
Pakistan.-
The medical qualifications granted by medical institutions in
Pakistan which are included in the First Schedule shall be
recognised medical qualifications for the purpose of this
Ordinance.
Any medical institution in Pakistan which grants a medical
qualification not included in the First Schedule may apply to the
Federal Government to have such qualification recognised, and the
Federal Government after consulting the Council, may, by notification
in the official Gazette, amend the First Schedule so as to include such
qualification therein. (Emphasis is supplied).
Such notification may also direct that an entry shall be made in the
last column of the First Schedule against such medical qualification
declaring that it shall be recognised medical qualification only when
granted after a specified date".
17. Section 13 relates to the power of the Council to enter into negotiations with appropriate
authority within or outside Pakistan, for settling a scheme of reciprocity for the recognition
of Medical qualification. Section 14 provides that the Federal Governemnt after consulting
the Council may accord recognition to a medical qualification granted by medical institution
outside Pakistan. Section 15 empowers the Council to certify persons to be possessed of
sufficient medical qualification of course with the approval of the Federal Government
Section 16 provides for recognition of additional medical qualification granted by foreign or
domestic medical institutions. By virtue of Section 17 the medical licenses and diplomas
granted by medical institutions in or outside Pakistan are registerable under the Ordinance
Sections 18 & 19 contemplate recognition of qualifications granted by Dental institutions in
or outside Pakistan and their certification by the Council. Section 20 empowers the Council
to require information from every Medical or Dental institution in Pakistan as to the courses
of studies and examinations being carried out. Section 21 empowers them to carry out
inspections. Section 22 authorizes the Council to recommend withdrawal of recognition of
medical qualification to the Federal Government. Under Section 23, the Council maintains a
Register for registration of medical practitioners possessing qualifications, which are
recognized medical qualifications under the Ordinance. Section 28 prescribes a penalty for
fraudulent representation or registration. Section 33 empowers the Council with previous
sanction of the Federal Government to make regulations. Section 34 mandates the Council to
furnish reports about its working to the Federal Government and Section 35 envisages
commission of inquiry by the Federal Government if it is found that the Council is not
complying with any of the provisions of this Ordinance. A careful study of various
provisions of the Ordinance referred to in the preceding paragraphs show that the objective
of the Ordinance are as follows:-
Maintenance of uniform standard of Medical & Dental education (at
the graduate and postgraduate level).
Recommendations
for
recognition,
de-recognition
of
medical
qualifications registration of doctors with recognized medical
qualifications within the country or outside the country.
Registration of doctors possessing recognized medical qualification
from within country or from foreign countries.
Making arrangements with foreign countries for according reciprocal
recognition to the medical qualifications.
18. Having had a glance at various provisions of the law under consideration and the object
of the establishment of the Council, we take up the first two of the 5 issues framed as
mentioned above i.e. " (i) What is the nature and import of the concept of recognition of
medical qualification as contemplated in Section 11 of the Pakistan Medical & Dental
Council Ordinance, 1962? (ii) What is the nature of ‘consultation’ with the Council by the
Federal Government, which the law requires the latter to have before passing an order under
various provisions of the Ordinance? Although the Ordinance does not expressly use the
expression of ‘recognition’ of a training institution but a combined reading of the preamble
Sections 11, 20, 21 & 22 would indicate that recognition accorded to a medical qualification
in terms of Section 11 of necessity would entail the recognition of the institution which is
imparting training and granting a medical qualification. This is so because to assess whether
the medical qualification being granted by an institution is in accord with the standard set by
the Council and to ensure "uniform standard of basic and higher qualification in medicine
and dentistry", the Council has prescribed the courses of study, watches the teaching
standards and has been empowered to inspect, issue directions, monitor the working of the
medical & dental institution or university which trains for, "grants medical or both trains and
grants a medical qualification, additional qualification registerable medical license or
diploma or any degree, diploma and license in dentistry". In this regard, the law does not
contemplate any distinction between a medical institution or a chartered university granting
a medical degree. With regard to the power of the Council in the realm of recognition of a
qualification and other related matters under the Ordinance this Court approved in "Shafique
Ahmed and others vs. Government of Punjab and others (PLD 2004 SC 168)" the view taken
by the Lahore High Court in "Ahmad Abdullah & 62 others vs. Government of the Punjab
and 3 others (PLD 2003 Lahore 752)". In the latter judgment, at page 783, it was held as
follows:-
"But, so far as the power to grant a Degree in some medical
qualification is concerned, no University in Pakistan can issue a
Degree in a medical qualification mentioned in the First Schedule to
Ordinance XXXII of 1962 unless the said qualification has been
accorded prior recognition in terms of section 11(1)(2) of the said
Ordinance which, inter alia, contemplates recognition through a
notification to be issued by the Federal Governemnt after prior
consultation with Medical Council established under the said
Ordinance. This is true of the University of Punjab, the other
Universities similarly placed in Pakistan and University of Health
Sciences is no exception"
19. This brings us to the second issue mooted i.e. what is the nature of ‘consultation’ with
the Council by the Federal Government, which the law requires the latter to have before
passing an order under various provisions of the Ordinance? Under Section 11 (2) of the
Ordinance, it is stipulated that "any institution which grants a medical qualification which is
not included in the First Schedule, may apply to the Federal Government to have such
qualification recognized and the Federal Government after ‘consulting’ the Council may, by
notification in the official gazette, amend the First Schedule so as to include such
qualification therein". The rationale appears to be that the expert opinion of the apex body of
the Medical & Dental professionals should be solicited before according recognition to a
medical qualification. The ‘consultation’ envisaged is not the ‘consultation’ of a senior with
the junior in administrative hierarchy nor it is a ‘consultation’ with a consultant of choice
rather it is ‘consultation’ with a statutory body mandated under the law to carry out
prescribed functions to achieve certain objectives. The statutory phraseology of consultation
has to be understood and expounded in accord and consistent with the law and to promote
the objectives given in the context. The Council being a body of medical and dental
professionals, the ‘consultation’ has to be purposive and meaningful. The opinion or advice
rendered by the Council during consultative process may not be binding but the Federal
Government has to consider and give it a due weight. If it chooses to disagree or bypass the
advice rendered it has to give reasons in writing. The reasons should reflect an objective
understanding of the issue and should be germane to the objectives enshrined in law
Consultation with the Council by the Federal Government before an order under these
provisions is passed is reflective of the legislative intent which is twofold i.e. firstly that it is
the Federal Government which has to pass an order conferring certain legal status to a
medical qualification granted by an institution within or outside Pakistan and secondly an
order by the Federal Government should be preceded by consultation with the Council.
20. The third & fourth issues are interrelated and they are being dealt with together. The
issues are as under:-
"iii. Whether every chartered University having a medical faculty is
entitled to representation in the Pakistan Medical & Dental Council in
terms of Section 3 of the Ordinance?
Whether the teaching staff of each Medical & Dental Institution in
Pakistan is entitled to representation in accord with Section 3 (f) of the
Ordinance?
At a first look, a plain reading of Section 3(1)(b) gives the impression that every Pakistani
University established by a law and having a medical or dental faculty or both has a right of
representation. This Section does not require a university to have a prior recognition of its
medical qualification (by the Council) to qualify for representation. However, this has to be
read along with other provisions of the Ordinance. A university which has a medical or a
dental faculty, would make arrangements to train, or to train and grant a degree in a medical
qualification or to extend affiliation to an institution doing this unless such a qualification is
accorded recognition in terms of Section 11 of the Ordinance, the university cannot issue a
degree in the said qualification. Even otherwise the medical and dental faculty of a
university by itself would be an institution. Therefore, only those universities would qualify
for representation in the Council whose degrees fall within the ambit of Section 11. The
argument that once, a university is established, the medical qualification it grants does not
require recognition in terms of the Ordinance would defeat the very purpose of the
Ordinance. Because education being a concurrent subject under the Constitution, a university
can be established either under Federal or Provincial law. If such universities are established
and they start imparting training or granting degrees of a medical qualification independently
of the regulatory mechanism of Pakistan Medical & Dental Council, then each university
would run its own courses, and there would be no institution of medical experts at national
level to ensure uniform quality education.
21. In case of Medical Institutions under Section 3 (1)(f), "the teaching staff of each medical
or dental institution in Pakistan from amongst the Professors on its staff can elect one
member for representation in the Council, provided, "such institution trains for a medical or
dental qualification which is for the time being recognized under the Ordinance". Thus both
the universities established by law in Pakistan having medical faculties and medical
institutions would require prior recognition of their respective medical qualifications for
getting representation in the Council.
22. The last fifth issue pertains to the powers of Pakistan Medical & Dental Council and has
been framed as follows:-
"v. Whether the Pakistan Medical & Dental Council is empowered to
ask for information, make queries, carry out inspections, issue
directions and take other steps prescribed in law to carry out the
purposes of the Ordinance?"
The powers to require information with regard to courses of study & examination and to
inspect examination have been conferred on the Council in terms of Sections 20 & 21. These
two provisions stipulate that the Council may require the institutions in Pakistan which train
or grant or both train and grant a medical qualification, additional medical qualification, a
diploma or a license in dentistry:-
To furnish information regarding courses of study and examination to
be undergone in order to obtain a medical qualification in question.
The minimum age at which such undergraduate courses of study can
be undertaken on admission. The examination required to be
undergone prior to such qualifications being conferred, any general
information having relevance for obtaining the afore-referred
qualification, degree or diploma. The Council can appoint medical or
dental Inspector to inspect the medical centers.
To appoint Inspectors who are mandated under the law not to interfere
in the conduct of any examination but they are to report to the
Executive Committee on the sufficiency of every examination which
they attend and on the courses of study and facilities for teaching
provided by the medical or dental institution in question at different
stages in respect of such examination.
23. The powers envisaged under the provisions referred to in the preceding paragraphs are
not exhaustive and they may include the ancillary powers which they may exercise to
achieve the objective of the Ordinance and the regulations framed thereunder. If the Council
is not satisfied on report submitted by its Executive Committee with regard to the courses of
studies and examinations, the law mandates that the Council in such an event shall report
the matter to the Federal Government which after considering the report transmit the same
to the concerned medical or dental institution asking the latter to submit explanation and
after receipt of the same and after making any further inquiry if it deems fit may withdraw
the recognition.
24. We may observe that over the last few decades there has been a mushroom growth of
Medical and Dental institutions in the private sector. The element of commercialization has
been more pronounced than commitment to academic excellence. The travails of education
in public sector are appalling and are partly attributable to the lopsided national priorities
pursued by those at the helm of affairs. This tempted the private sector to fill the void. The
rapid growth of educational institutions in the private sector on the one hand reflect the
extent of public need/thirst for education and on the other a deterioration or dearth of State
run educational institutions. The quality of education in the private sector leaves much to be
desired. Barring a few exceptions it reflects a pathetic state of affairs. There has been a
complete absence of any regulatory mechanism in the domain of general education and
people have been allowed mostly to fleece the students and their parents. The private sector
has entered the realm of medical and dental education as well. In this domain there are
regulatory laws but their application needs further improvement. The Pakistan Medical &
Dental Council Ordinance and the regulations framed thereunder lay down a comprehensive
procedure to ensure uniform and quality medical and dental education. Similarly, the
Medical & Dental Degrees Ordinance, 1982 has restricted and regulated the right to confer
degrees, diplomas, licenses and certificates to practice in the medical and dental domain and
any violation thereof has penal consequences. There is a dire need to enforce the provisions
of these laws with a view to promoting not only quality medical and dental education but
also to provide better quality of professional services to the people. The need for regulatory
mechanism in the realm of general education and in the domain of professional courses has
never been greater. The Higher Education Commission has taken a number of regulatory
steps to ensure qualitative improvement in the higher education. The Pakistan Medical &
Dental Council through the Ordinance and the regulations framed thereunder is mandated to
pursue the objective of a uniform standard of Medical and Dental education in the country
All the stakeholders should strengthen these and similar institutions in the country because it
is only through these institutions that we can achieve the goals set out in their Charter.
25. A society in transition witnesses two parallel strains i.e. a process of institutional erosion
and attempt by the reformers/idealists to build the institutions. Effort should be to strengthen
the latter. Because institutions play a vital role in civilizing a people and in their onward
march towards socio-economic and political progress. In the comity of nations the credibility
and progress of a country is measured by the strength of its institutions. A nation which fails
to respect the institutions falls in grace, decays, splits and is condemned in history. A society
bereft of stable institutions would be at odds with itself. The role of institutions in society
has been aptly commented upon by (Professor Dr. Douglass C. North in his seminal work
"Institutional Change and Economic Performance"). According to him, "Institutions reduce
uncertainty by providing a structure to everyday life. They are a guide to human
interactions, so that when we wish to greet friends on the street, drive an automobile, buy
oranges, borrow money, form a business, bury our dead, or whatever, we know (or can learn
easily) how to perform these tasks. We would readily observe that institutions differ if we
were to try to make the same transactions in a different country, Bangladesh for example. In
the jargon of the economist, institutions define and limit the set of choices of individuals
Institutions include any form of constraint that human being devise to shape human
interaction. Are institutions formal or informal? They can be either: informal constrains –
such as rules that human beings devise and informal constraints – such as conventions and
codes of behaviour. Institutions may be created, as was the United States Constitution; or
they may simply evolve over time, as does the common law. (Emphasis is supplied").
26. In the cases in hand, we are seized of the affairs of a professional regulatory institution
Such institutions stand on a set of rules prescribing the objective to be pursued, courses to be
followed and a code of ethics to be honoured. The medical graduates would deliver, would
be worthy of their noble calling, and would be respected within and outside the country only
if they pass through the rigorous courses of study, abide by the parameters of academic
discipline and the code of professional ethics which the Council has laid down. But above
all, the Council itself has an onerous duty to perform and a responsibility to shoulder. The
institution would be made or marred partly by what it does to itself, to its mandate, to the
oath of its calling and to the law of which it is a creature.
27. For what has been discussed above, Civil Appeal Nos.2206 of 2005, 721 of 2006
Criminal Appeal No.304 of 2003, Civil Petition No.459 of 2006 after conversion into appeal
& Suo Moto Case No.8 of 2006, are allowed, the impugned judgments are set aside and we
are inclined to hold, declare and direct as under:-
No medical institution or university can train or grant a medical or
dental qualification or train and grant both unless the said
qualification, degree or diploma has been accorded recognition in
terms of Section 11 of the Pakistan Medical & Dental Council
Ordinance, 1962.
The Federal Government before according recognition in terms of
Section 11 has to have a meaningful and purposive ‘consultation’ with
the Pakistan Medical & Dental Council and the order to be passed in
this regard has to be germane to the purposes and objects of the law.
Every University established by law in Pakistan having a medical or
dental faculty or both and every Medical & Dental Institution
performing a similar function have a right of representation in terms
of Section 3(1) (b) & (f) of the Ordinance, provided the medical
qualification or diploma for which they are training the students in
their university/institution have been accorded recognition as
prescribed under Section 11 of the Ordinance.
There is no concept of provisional recognition of a medical
qualification issued by a medical institution either under the Pakistan
Medical & Dental Council Ordinance or the Regulations framed
thereunder. Since on account of the act of Pakistan Medical & Dental
Council and the Federal Government certain medical qualification /
degree / diploma being issued by certain medical institutions have
been granted provisional recognition and on account of this, several
students admitted in those institutions and they may be at various
stages of their professional courses, we are not inclined to direct
immediate closure of these institutions.
The cases of these colleges / institutions having provisional
recognition shall be taken up by the Council. The institutions are
given six months time from the announcement of this judgment to
make up the deficiencies and submit a detailed report to the Pakistan
Medical & Dental Council and thereafter the Council having
examined the reports and carrying out requisite inspections, if deemed
necessary, shall submit its recommendations to the Federal
Government which shall decide the matter by 14th August 2007.
The medical institutions whose cases do not qualify for recognition in
terms of Section 11 of the Ordinance and no order qua recognition of
their medical qualification is passed by the Federal Government, by
the afore-referred date shall not be allowed to function thereafter.
The students studying in the institutions / colleges who were accorded
provisional recognition and whose cases are not approved in terms of
Section 11 of the Ordinance, shall be accommodated by the Federal
Government in various medical institutions of their respective
provinces of residence. Necessary steps shall be taken by the Federal
Government so that the students are not put under any mental pressure
and their studies do not suffer on account of this exercise. This is
being done firstly, because the Pakistan Medical & Dental Council &
the Federal Government have been partly responsible for their
admissions when it granted provisional recognition and secondly, on
Court query the Secretary, Pakistan Medical & Dental Council
undertakes that the Council with the assistance of the Federal
Government shall ensure that these students are accommodated in
Medical & Dental Institutions of their respective Provinces.
The Council shall ensure that all necessary steps are taken for the
composition of the Council in accord with the afore-referred
provisions under Section 4 of the Pakistan Medical & Dental Council
Ordinance. It is the Council which has to conduct elections in terms of
clauses (b) (c) (e) or (f) of Sub-section 1 of Section 3 and a meeting of
the Council shall be held within six weeks of the pronouncement of
the judgment.
The Federal Ministry of Health, Government of Pakistan is directed to
ensure that the mandate of the Pakistan Medical & Dental Council
Ordinance, 1962 & Medical & Dental Degrees Ordinance, 1982 is
given effect to in letter and spirit and any violation of these laws are
met with penal consequences as envisaged under the law.
In view of our findings in para 22 above with regard to powers of the
Council qua inspection of a Medical Institution, the proceedings of
contempt against the appellants are uncalled for. Therefore, Criminal
Appeal No.304 of 2003 is allowed and the proceedings before the
High Court, Rawalpindi Bench are set aside.
In view of terms noted above, all these appeals & petitions are disposed off.
JUDGE
JUDGE
JUDGE
JUDGE
ANNOUNCED IN OPEN COURT ON 15.12.2006
"APPROVED FOR REPORTING"
ISLAMABAD, THE
15.12.2006
M. Zubair/*
| {
"id": "C.A.2206_2005.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT: MR. JUSTICE MIAN SAQIB NISAR, HCJ
MR. JUSTICE UMAR ATA BANDIAL
MR. JUSTICE FAISAL ARAB
CIVIL APPEALS NO.2215 TO 2222 OF 2006
(On appeal from the judgment dated 2.12.2003 of the High
Court of Sindh, Karachi passed in Const.Ps.No.D-680/1989,
8-D/1991, D-452/1991 and D-2474/1995)
AND
CRL. ORIGINAL PETITION NO.31 OF 2008
(Contempt matter/disobedience of the Court order)
1.
Younus Habib etc. Vs. Imranur Rashid
etc.
In C.A.2215/2006
2.
Mst. Zaibun Nisa Yaqoob etc. Vs.
Zulfiqar Ali Agha etc.
In C.A.2216/2006
3.
Muhammad Younus Habib etc. Vs.
M.A. Baig Ghazi (decd.) through L.Rs.
etc.
In C.A.2217/2006
4.
Mst. Zaib-un-Nisa etc. Vs. Ali Ahmed
etc.
In C.A.2218/2006
5.
Evacuee Trust Property Board through
its Chairman Vs. Imranur Rasheed
(decd.) through L.Rs. etc.
In C.A.2219/2006
6.
Evacuee Trust Property Board through
its Chairman Vs. Zulfiqar Ali Agha
(decd.) through L.Rs. etc.
In C.A.2220/2006
7.
Evacuee Trust Property Board through
its Chairman Vs. M.A. Baig Ghazi
(decd.) through L.Rs. etc.
In C.A.2221/2006
8.
Evacuee Trust Property Board through
its Chairman Vs. Ali Ahmad etc.
In C.A.2222/2006
9.
Ali Ahmed etc. Vs. NAB through its
Chairman etc.
In Cr.O.P.31/2008
For the Appellant(s):
(In CAs 2215-2218/06)
Mr. Khalid Anwar, Sr. ASC
Mr. M. Afzal Siddique, ASC
Mr. Mehmood A. Sheikh, AOR
Assisted by:
Mr. Yousaf Nasim, Advocate
Mr. Hamid Ahmed, Advocate
Raja Ikramullah, Advocate
CAs 2215-2222/06
-: 2 :-
Mr. A.I. Chundrigar, ASC
Mr. Mehr Khan Malik, AOR
Mr. Shehzad Sarwar, Manager
Litigation, HBL
(In CAs 2219-2222/06)
Hafiz S. A. Rehman, Sr. ASC
Raja Abdul Ghafoor, AOR
Assisted by:
Sheikh Rizwan Nawaz, Advocate
(In Cr.O.P.31/08)
Ch. Aitzaz Ahsan, Sr. ASC
Mr. Gohar Ali Khan, ASC.
Syed Feisal Hussain Naqvi, ASC
Assisted by:
Ms. Zonaira Fayyaz, Advocate
For the Respondent(s):
For private Respondents
i.e. members of WCHS
Ch. Aitzaz Ahsan, Sr. ASC
Mr. Gohar Ali Khan, ASC
Syed Feisal Hussain Naqvi, ASC
Syed Rifaqat Hussain Shah, AOR
For WCHS:
Mr. I. H. Zaidi, ASC
For KDA:
For ETPB:
For NAB:
For Govt. of Sindh:
For the Federal Govt.:
Syed Jamil Ahmed, ASC
Hafiz S. A. Rehman, Sr. ASC
Raja Abdul Ghafoor, AOR
Mr. Imran-ul-Haq Khan, Special
Prosecutor NAB
Mr. Shehryar Qazi, Addl. A.G.
Mr. Aamir Rehman, Addl. A.G.P.
Other respondents in CAs:
Ex-parte
Dates of Hearing:
18.10.2017, 19.10.2017, 23.10.2017,
24.10.2017, 08.11.2017, 09.11.2017
and 14 to 16.11.2017
JUDGMENT
MIAN SAQIB NISAR, CJ.- These appeals are with the
leave of the Court dated 6.11.2006. The dispute inter se the parties
is in relation to the land measuring 32 acres and 30 ghuntas
situated in the prime location of Deh Okewari, District Karachi
East (Okewari), falling in Survey No.37 (18 acres and 3 ghuntas), Survey
No. 160 (10 acres and 25 ghuntas) and Survey No. 161 (4 acres and 2
CAs 2215-2222/06
-: 3 :-
ghuntas). There appears to be no dispute that the aforesaid land was
part of land originally owned by the Karachi Panjrapore
Association (the Association). The land originally owned by the
Association was registered on 25.04.1938 under Section 26 of the
Companies Act, 1913, for the ‘protection and preservation of the
cattle and other animals and to arrange for their feeding etc.’. The
dispute before us is regarding the proprietary title of the disputed
land. The appellants on the one hand are the purchasers from the
haris (Haris) of the said land to whom certain leasehold rights have
been granted by the Evacuee Trust Property Board (ETPB), whereas
the contesting respondents i.e. allottees of the Works Cooperative
Housing Society (WCHS) claim that the land has been transferred to
WCHS by the Karachi Development Authority (KDA). The key
questions involved in this matter are:
(a)
what was the status of the Association after the
partition of the subcontinent; whether it remained
active or did it become an evacuee;
(b)
whether the property in question was evacuee trust
property or not;
(c)
whether the property had been validly acquired by the
Federal Government for the purposes of establishing a
police line, if so, to what extent and whether after
shifting the Capital from Karachi to Islamabad such
acquired land, which had validly vested with the
Federal Government, had been lawfully given to the
KDA and subsequently transferred by the KDA to
WCHS; and
(d)
whether the land was factually and validly leased to
the Haris by the Association or the ETPB, and they
had validly transferred it to the appellants; and what is
the status of the appellants.
CAs 2215-2222/06
-: 4 :-
2.
To address these questions, it is expedient to consider
the relevant facts, which can be categorized into four transactions
which are pivotal to the required determination; namely, (1) the
acquisition proceedings with regard to the 8 acres of the disputed
land in the year 1954, (2) the decision of this Court in Madhavji
Dharasibhai vs. Karachi Panjrapore Association (PLD 1957 SC
83) declaring the Association to be ‘evacuee’ under Section 2(2)(d)
of the Pakistan (Administration of Evacuee Property) Ordinance
1949 as amended in 1951 (Ordinance of 1949) and directions to
determine whether the land owned by it was ‘evacuee trust
property’, (3) the issuance of the Martial Law Regulation No.57
(MLR 57) in the year 1983, the application of which was limited to
encroachments of ‘evacuee trust property’ under the ETPB, and (4)
the issuance of lease dated 27.7.1990 (Lease Deed) for 99 years.
Though the impugned judgment addresses these events, a brief
overview of the same is given for further clarity.
3.
The partition of the sub-continent in 1947, marked the
creation of a unique category of ‘evacuee’ persons and entities who
needed to be adequately and justly dealt with under the law of the
country. While ‘evacuee property’ has over the years been allotted
to immigrants from the other side of the border or otherwise, the
administration of ‘evacuee trust property’ i.e., the properties
formerly owned by trusts was and remains an ongoing obligation of
the government. The Ordinance of 1949 (later amended in the year 1951)
was introduced to cater to both these categories of properties.
Section 6 of the Ordinance draws a fine distinction between the
treatment of the two types of property ibid: while subsection (1) of
Section 6 provides that ‘evacuee property’ is to completely vest in
CAs 2215-2222/06
-: 5 :-
the Custodian, subsection (2) thereof provides that ‘evacuee trust
property’ will only temporarily vest in the Custodian who was duty-
bound to appoint fresh trustees for the same and till such time
that new trustees were appointed, he was to ensure that such
property was utilized for the original purposes of the relevant trust.
The Association was indeed a trust but it was only declared
‘evacuee’ a decade after partition by this Court in Madhavji
Dharasibhai’s case (supra). The Association owned huge chunks of
property in the city of Karachi, which was at that time the Federal
Capital of the Country; the disputed land was allegedly being
utilized for agricultural purposes by the Haris (originally as lessees of the
Association) who claim to be in possession of the same till date.
Interestingly, 8 acres of the same land was also part of acquisition
proceedings initiated by the Federal Government in the year 1954
for the purpose of construction of Police Lines. Notifications under
Sections 4, 6, 9 and 17 of the Land Acquisition Act, 1894 (the
Acquisition Act) have been placed on the record in this regard.
4.
Mr. Khalid Anwar, learned Sr. ASC appearing on
behalf of the appellants (in CAs No. 2215-2218/2006) commenced his
arguments with a brief summary of facts. Placing his reliance on
the judgment in Madhavji Dharasibhai’s case (supra), he
submitted that the Association was conclusively declared ‘evacuee’
and thus the lands belonging to it including the disputed land was
‘evacuee trust property’. In this context, he read out the definition
of ‘evacuee’ in Section 2(2)(d) of the Ordinance of 1949. He further
submitted that as per Section 8 of the ETP Act 1975, the Chairman
is the ultimate authority for determining whether a property is
evacuee trust property and the fact that the ETPB has time and
CAs 2215-2222/06
-: 6 :-
time again referred to the disputed land as ‘evacuee trust property’
meant that the Chairman (under Section 8 of the ETP Act 1975) had made
such determination with regard to the disputed land. He submitted
that the Haris, the predecessors of the appellants were tenants of
the Association from pre-partition days and they had been
cultivating the land and paying dhal to the Association. Thus, after
partition in 1947 and once the property of the Association was
declared evacuee trust property, which also included the disputed
property, the Haris retained their rights of tenancy. Such rights, he
stated, attained finality when suit No. 3611/1978 filed by the
Haris was decreed in their favor on 30.5.1984 and on the basis of
which through filing of execution No.5 of 1984, the executing court
ordered the execution of a lease deed of 33 years on payment of
Rs.769.56/- per acre. The Haris made the said payment and this
had validly resulted in the extension of the lease to 99 years in
favor of the Haris, who for sufficient consideration transferred the
same in favor of the appellants. Learned counsel unequivocally
submitted that MLR 57 would not apply to the disputed land as
the acquisition of leasehold rights by the appellants and their
predecessors was legal and valid for all purposes and the said MLR
only applied to encroachments on ‘evacuee trust property’. On this
basis he stated that the order of the Chairman, as authority, dated
10.6.1985 was not applicable to the disputed land which had been
validly transferred to his clients. He added that it was precisely to
nullify this order that paragraph 6A was incorporated in MLR 57
through an amendment in the year 1989 as clause (4) read with
clause (1) of the said para specifically provides that the tribunal
established thereunder will determine the scope of the application
CAs 2215-2222/06
-: 7 :-
of MLR 57, and evacuee trust properties falling outside it shall
remain unaffected by MLR 57. Regarding the claim of the WCHS
which rests on the acquisition proceedings in the year 1954, he
submitted that there were certain insurmountable hurdles in the
success of such a claim which were based on some critical aspects
of these land acquisition proceedings which could not be ignored;
(i)
that the land acquisition proceedings of 1954 were
initiated for the benefit of the Federal Government
whereas the disputed land was evacuee trust property
as confirmed by judgment in Madhavji Dharasibhai’s
case (supra); since evacuee trust property already
vests with the Federal Government hence the Federal
Government could not acquire its own land for a
public purpose.;
(ii)
that the purpose of these land acquisition proceedings
was the construction of the Police Lines which was
abandoned after Karachi was no longer the Federal
Capital past the year 1960, thereafter the land could
not be transferred to KDA and subsequently the WCHS
unless prior approval of the Federal Government was
obtained since the purpose for acquisition did not
remain the same. He added that the transfer of said
land to the WCHS for purposes of a housing society
did not satisfy the test of a public purpose;
(iii)
subsequently, these acquisition proceedings were
illegally continued by the Provincial Government and
culminated in an award of compensation which was
also invalid;
(iv)
each of the two notifications in the year 1954 under
Sections 4 and 6 of the Acquisition Act which were
produced on the record related to only 8 acres out of
Survey No.37 and the rest of the disputed land could
not be covered under the same land acquisition
CAs 2215-2222/06
-: 8 :-
proceedings: in fact even to this extent he submitted
that it was not a valid acquisition since evacuee trust
land cannot be acquired. The notifications dated
12.1.1956 regarding Survey No. 161 were not
produced and hence cannot be relied on without
examining the contents thereof;
(v)
the entire land acquisition proceedings of 1954 are
based on the false assumption that the disputed land
was non-evacuee;
(vi)
the acquisition proceedings can only be concluded if
the steps of such acquisition have been completed in
accordance with the provisions of the Acquisition Act,
and since the respondents have been unable to
produce any evidence to the effect that any payment of
award was made with regard to the land acquired, nor
can possession be said to have transferred to them as
per Section 16 of the said Act, thus these proceedings
were incomplete and cannot be relied on.
5.
He explained that as notices under Sections 9 and 10
of the Acquisition Act were sent to the Association instead of the
Custodian Evacuee Property therefore this adds another lacuna to
the 1954 land acquisition proceedings. Elaborating on his
argument, he submitted that the ETPB was constituted for the first
time by virtue of Section 3 and 4 of the ETP Act 1975 and on
03.05.1978 the Deputy Administrator, ETPB wrote to the KDA
categorically pointing out that evacuee trust lands can neither be
compulsorily nor unilaterally acquired for any Scheme sanctioned
by the KDA and that the alleged acquisition by the KDA of the
same had no legal validity. This letter also provided that under the
ETP Act 1975, there is no statutory bar on the sale of evacuee trust
lands provided that such sale is made with the prior approval of
CAs 2215-2222/06
-: 9 :-
the Federal Government. He clarified that the notification dated
15.06.1964 cannot be deemed to be an approval of the Federal
Government for the transfer of acquired land since the said
notification was merely sanctioning the approval of the KDA
Scheme No.24/Town Expansion Scheme. He pointed out that
although an offer was made by the Deputy Administrator for the
KDA to approach the ETPB and agree on sale at the prevailing
market rates, KDA failed to avail this gracious offer. Learned
counsel also stated that although various other illegal acquisitions
by the KDA were retrospectively validated by the ETPB but such
validation
expressly
excluded
the
property/lands
of
the
Association. He further stated that once the purpose of the land
acquisition proceedings is abandoned, as was the case in these
1954 acquisition proceedings, they inevitably become void. In
support of this the learned counsel relied on Union of India v.
Nand
Kishore
(AIR
1982
Dehli
462)
and
Industrial
Development
&
Investment
ah
47
Corp.
v.
State
of
Maharashtra (IR 1989 Bombay 156). With regard to his
contention that the fact that possession is taken by the
Government as per Section 16 of the Acquisition Act is essential to
the conclusion of acquisition proceedings, he relied on the
judgments of Saradar Begum v. Lahore Improvement Trust (PLD
1972 Lah 458) and Nand Kishore’s case (supra). He stressed that
it is admitted by the KDA that the possession till date remains with
the Haris who are the predecessors of the appellants and in this
regard he referred to the letter of the KDA dated 4.6.1989.
6.
The learned counsel clarified that even if the award for
compensation and the 1954 acquisition proceedings with regard to
CAs 2215-2222/06
-: 10 :-
8 acres of the disputed land are assumed to be legally valid, there
is still the hurdle of illegality of the transfer of the said land by the
Central Government to the KDA, sanctioning of town expansion
Scheme No. 24 of the KDA [President Order No. 5 of 1957] vide
notification dated 15.06.1964 wherein the KDA is directed to honor
the commitments made by it inter alia to the WCHS with regard to
“Block 8 & 9 of the land originally reserved for the Police
Headquarters”. He continued that it is pertinent to note that
neither can such sanctioning by the Federal/Central Government
be seen as an approval by the Federal Government for the transfer
of the land acquired by it for the Police Lines to the KDA, nor can it
be used to conclusively determine the right of the WCHS to the
disputed land since the said commitment was to be honored “as far
as practicable” and hence no obligation was created on the KDA.
He submitted that soon thereafter when the KDA attempted to
resile from this commitment, the WCHS and KDA went into
litigation which was settled in the two judgments of Works
Cooperative
Housing
Society
v.
Karachi
Development
Authority (PLD 1969 SC 391) and Karachi Development
Authority v. Works Cooperative Housing Society (1978 SCMR
307). He further pointed out that in both the aforementioned
judgments of 1969 and 1978, neither the Evacuee Custodian nor
the ETPB were ever made party to the proceedings and therefore
the judgements cannot be binding on them and must be
disregarded completely to the extent of the present matter. Learned
counsel pointed out that yet another critical point to note was that
the WCHS itself later abandoned the prospect of claiming any land
in Blocks No. 8 and 9 of KDA’s Scheme no.24 and instead accepted
CAs 2215-2222/06
-: 11 :-
alternative land. In this backdrop, learned counsel concluded his
arguments by pointing out the irregularities in the impugned
judgment which inter alia included the irregularity that a writ
petition in the Sindh High Court cannot lie against a consent order
or against an order in a revision petition which was itself decided
by the Sindh High Court. In support of this contention he relied on
Muhammad Baksh v. Ghulam Hussain (1989 SCMR 443),
Muhammad Khan v. Mst. Ghulam Fatima (1991 SCMR 970),
and Faizur Rehman v. Rahman-ud-Din (1997 SCMR 1301).
Another irregularity was that the appellants in the impugned
judgment were allottees of the WCHS who derive their title from the
KDA, however the KDA itself had never challenged the decision of
the revision petition, neither did the WCHS, and these appellants-
allottees therefore could not have challenged the same. Regarding
the legality of the Chairman’s order dated 10.6.1985, he referred to
the decision of the tribunal which the KDA had approached for the
ratification of the Chairman’s order, whereby the tribunal
categorically held that the Chairman had gone beyond his powers
in issuance of the said order in its judgment dated 28.8.1989.
7.
Mr. Aitzaz Ahsan, Sr. ASC for respondents No.1 and 6
(respondents), submitted that he represents the allottees of WCHS.
He commenced his arguments by submitting that the WCHS
derives its title to the entirety of the disputed land (Surveys No. 37, 160
and 161) through the KDA who admittedly allotted the said land to
the WCHS; while 8 acres of the Survey No. 37 were validly acquired
by the Government through the land acquisition proceedings in
1954 which were later validly transferred to the KDA, the rest of
the 24 acres and 3 ghuntas of the disputed land were also validly
CAs 2215-2222/06
-: 12 :-
acquired by the KDA as this remaining land was notified to be part
of the KDA Scheme No.24 and later the ETPB, through
negotiations with the KDA, regularized this land in favor of the
KDA as evidenced in various minutes of meetings of the ETPB.
Regarding the 8 acres of land acquired through the 1954
acquisition proceedings, learned counsel for the respondents
submitted that in the year 1954, the land acquisition proceedings
for acquisition of evacuee trust property land were in accordance
with Section 12 of the Ordinance, 1949 (as amended by Act of
XXXI of 1951), clause (b) of subsection (3) of which specifically
provides that nothing contained in the provisions of the Ordinance
of 1949 shall affect the powers of the Central (Federal) and
Provincial Government to requisition or acquire evacuee property,
provided that the consent of the Federal Government is acquired
prior to exercise of such powers. In response to the contention of
the appellants’ counsel that evacuee trust property cannot be
acquired, he referred to A.R. Niazi v. Pakistan (PLD 1968 SC
119) wherein it was clarified that evacuee trust property is only a
sub-specie of evacuee property. Elaborating on the said contention
he submitted that these 8 acres of the disputed land were acquired
by the Federal Government for the purposes of construction of the
Police Lines. In this regard, he referred to the following
notifications which fulfilled the requirement of a valid acquisition
for public purpose under the Acquisition Act:
-
Notification dated 21.5.1954 under Section 4 of the
Acquisition Act (pg. 25 of CMA No. 2659/2007);
-
Notification dated 21.5.1954 under Section 9 of the
Acquisition Act (pg. 28 of CMA No. 2659/2007);
CAs 2215-2222/06
-: 13 :-
-
Notification dated 8.6.1954 under Section 6 of the
Acquisition Act (pg. 36 of CMA No.2659/2007); and
-
Notification dated 8.6.1954, and 21.5.1954 under
Section 17 of the Acquisition Act (pgs 25 and 36 respectively of
CMA No.2659/2007) which according to the learned counsel
directs the taking over of possession.
He submitted that in pursuance of the abovementioned direction
regarding possession, possession was taken over by the Police and
an award was made by DC, Karachi, for the compensation of the
acquired land; as such Rs. 16,06,559.20/- was paid by the KDA.
Thus, he submitted, the acquisition of 8 acres of the disputed land
in Survey No.37 had been validly completed and acquired by the
Federal Government which had subsequently been transferred to
the KDA for Scheme N.24.
8.
Regarding the remaining 24 acres and 3 ghuntas of
the disputed land, he candidly conceded both in his written as well
as oral arguments that no separate acquisition proceedings were
ever carried out under the Acquisition Act, however the ETPB had
accepted the KDA’s request for acquisition of evacuee trust land
falling within the boundaries of Scheme No.24.
9.
Furthermore, he submitted that the Chairman’s Order
on 10.6.1985 in his capacity as Authority under MLR 1957 was
conclusive in determining the fate of the disputed land and it was
never challenged in this regard and it is settled law that even a
void order must be challenged on a timely basis as per the law laid
down in the judgment of Pervaiz Musharaf v. Nadeem Ahmed
(PLD 2014 SC 585). Hence the said order has now attained
finality. He also vehemently asserted that the appellants’ counsel’s
CAs 2215-2222/06
-: 14 :-
claim that the WCHS had abandoned its claim to the disputed land
is absolutely incorrect and such claim has never been abandoned
by the WCHS. Further added, that in all, the KDA Scheme No.24
constitutes 2662 acres in Karachi, and hence setting it aside now
will adversely affect tens and thousands of land allottees/owners.
On the other hand, he submitted that the entire claim of the
appellants stems from a Lease Deed dated 27.7.1990 which lacks
any legal standing as determined by the Chairman’s order dated
10.6.1985.
10.
The learned counsel for the KDA and the ETPB
appeared before this Court and chose to adopt the arguments of
Mr. Aitzaz Ahsan, the learned counsel for the allotees of the WCHS.
11.
We have heard the learned counsel for the parties and
perused the record. The claim of the appellants is that on account
of the judgment in Madhavji Dharasibhai’s case (supra) declaring
the Association as ‘evacuee’, all the properties belonging to the
Association became evacuee properties and thus acquisition
proceedings were void ab initio, having no bearing on the
determination of the title of the disputed land. The respondents on
the other hand claim that the said acquisition proceedings are
valid and conclusive. In order to determine the status of the
Association and ultimately the status of the land owned by it and
also the status of the Haris and the appellants, it would be
advantageous to consider the background and functioning of the
Association prior to and post partition, which has been highlighted
in detail in Madhavji Dharasibhai’s case (supra). Around the year
1866, some of the Hindu citizens of Karachi formed the Association
for the protection and preservation of cattle and, on 25.4.1938,
CAs 2215-2222/06
-: 15 :-
under a licence granted by the Central Government, it was
registered under the Indian Companies Act, 1913 in conformity
with section 26 thereof. The Association continued to work, but
during the 1947 partition the Hindus migrated in large numbers
from Karachi. In 1949, an application was made to declare the
property belonging to the Association as “evacuee property”, which
was so declared on 28.1.1950, by the Additional Custodian
(Judicial) Evacuee Property, Sind and Federal Capital, Karachi.
The Association went in revision to the Custodian of Evacuee
Property Sind and Federal Capital Karachi, which was allowed by
the order dated 18.7.1950, holding that: “The fact that the bulk of
the members of the Managing Committee are now evacuees, does
not affect the character of the property because they have ceased to
have any right or interest in the property”. The result was that the
Association was not an “evacuee” and the property belonging to it
was not “evacuee property”. On account of amendments made in
the Evacuee law by the Act of 1951, another application was
presented in which it was alleged that the Association had become
a defunct body and, therefore, the property owned by it should be
declared “evacuee property”. The enquiries made by the Assistant
Rehabilitation Commissioner in regard to the working and
management of the Association revealed that the whole Association
had collapsed and the management was being carried on by
persons who had no authority to manage and supervise the affairs
of the Association, nor was any general meeting of the Association
held since 1947. The Association was given an opportunity to rebut
the facts ascertained during the enquiry and the allegations made
in the application. In this connection the statement of Seth
CAs 2215-2222/06
-: 16 :-
Jethanand Biranand, President of the Association, was recorded on
21.1.1950. It was stated that out of the members of the Managing
Committee mentioned in the report of 1946, only 5 remained in
Pakistan. The last annual meeting of the Association was said to
have been held on 27.10.1947. Its minutes were recorded in the
Proceedings Book, but they had not been confirmed or signed. In
1948, there was no annual general meeting. There was no record of
the proceedings of the meeting claimed to have been held since
1947. In view of these facts, the Deputy Custodian (Judicial),
Evacuee Property, Karachi, by order dated 18.8.1953, came to the
conclusion that the Association had become defunct and by reason
of the definition of “evacuee” given in Section 2(2)(d) of the
Ordinance of 1949, the Association was declared an “evacuee” and
its property “evacuee property”. A revision petition filed by the
Association was dismissed on 19.4.1956 by the Custodian, with
the observation that the Association had ample opportunity to
produce evidence before the Deputy Custodian in support of its
plea that it had not ceased to function wholly or partially, but no
such evidence was produced and on the evidence on the record,
the conclusion was inescapable that the Association had at least
partially ceased to function and the Association must, therefore, be
held to be an “evacuee”. On 22.5.1956, a petition under Article 170
of the Constitution of Pakistan, 1956 for the issuance of a writ was
filed in the High Court of West Pakistan, Karachi Bench. It was
prayed therein that the order of the Custodian be quashed and the
Association be declared as “non-evacuee” and its properties be
restored. The said petition was dismissed vide order dated
12.11.1956, wherein the finding of the Custodian was upheld. It
CAs 2215-2222/06
-: 17 :-
was also held that there was no doubt that the authority of the
persons who were managing the Association at that time had not
been approved by the Custodian. The said order was challenged
through a petition for special leave to appeal by the Association
which was allowed. Another petition for the issuance of a writ was
also made to this Court by Madhavji Dharasibai and others (for
themselves and on behalf of the members of the Hindu community who had made
endowments and paid contributions for the objects of the Association) under Article
22 of the Constitution of Pakistan, 1956. It was alleged that the
Fundamental Rights guaranteed by Article 15 thereof with respect
to the protection of property rights and Article 18 thereof with
respect to their right to establish, maintain and manage their
religious institutions had been violated by the order of the
Custodian. This Court while declaring the Association as an
“evacuee” observed that “As a matter of fact, under section 76 of the
Companies Act, a company is under a statutory obligation to
convene a general meeting once at least in every calendar year and
not more than 15 months after the holding of the last preceding
general meeting, and Associations, like the appellant-Association
registered under section 26 of the Companies Act, are also subject to
the same obligation under subsection (3) of section 26. This could not
be done for a number of years and the Association has, therefore,
ceased to function, wholly or partially, as mentioned in clause (d) of
subsection (2) of section 2 of the Pakistan (Administration of
Evacuee Property) Ordinance, 1949. At this point, it might
conveniently be mentioned that the alleged, functioning of the
Association, after it ceased to function in accordance with the
Companies Act, and its Articles of Association, was clearly under the
CAs 2215-2222/06
-: 18 :-
control of persons, who could not derive their authority from the
aforesaid instruments, and whose authority therefore required the
approval of the Custodian, if the Association were not to fall within
the definition of “evacuee” cited above. It is quite clear that the
approval of the Custodian was neither sought nor recorded at any
time.” However, after observing that “no step was ever taken to find
out that property was held in trust; for religious or charitable
purposes; for according to subsection (2) of section 6, the custody of
the Custodian over such property is only a temporary one and the
income has to be applied for carrying on the purposes of the trust. It
appears that this aspect of the case was not pressed before the High
Court, Karachi Bench, nor is there anything to show that at any
stage did the Custodian ever apply his mind to it, though in view of
the allegations of the appellants such a determination was
necessary”, the High Court was directed to issue a writ of
mandamus to the Custodian to take such action as is provided by
section 6 (2) aforesaid in respect of any property or properties of
the Association which he may find, after enquiry, to be “property
held in trust for religious or charitable purposes”.
12.
From the above it is clear that after independence, the
Association became evacuee and as such its properties also
became evacuee property. Now we come to the second question
whether the properties of the Association were held in trust for
religious or charitable purposes. In this regard it is to be noted
that no specific order of the Custodian in this regard has been
produced by either of the parties, before this Court or before the
forums below, thus, we have to consider other material available
on the record. In this regard it is to be noted that in the Schedule
CAs 2215-2222/06
-: 19 :-
appended with MLR 57 in terms of Paragraph 1 thereof the
property of the Association was mentioned as the evacuee trust
property under the Evacuee Trust Property Board. For reference,
Paragraph 1 alongwith the relevant portions of the Schedule is
reproduced below:
1.
Martial Law Administrator Zone ‘C’ or any other person or
authority, authorised by the Chief Martial Law Administrator in this
behalf, may, if he or it is of the opinion that any part of the agricultural
land specified in the Schedule to this Regulation and belonging to the
defunct Evacuee Trusts so specified and now vesting in the Evacuee
Trust Property Board has been acquired, entered upon, or taken
possession of by any person illegally or by any person illegally or by
fraud, misrepresentation or otherwise by order cancel such acquisition or
as the case may be, order the ejectment of such person and further order
that the said property shall forthwith be restored to the Evacuee Trust
Property Board free from all encumbrances.
THE SCHEDULE
[See Paragraph 1]
Name
of Deh
Area of land
Survey No. & Area
(1) Pinjrapur Trust Acres, Ghuntas
….
2. Deh Okewari Distt 608, 02
…..
_37_ , _160_,
18-03 10-25
…..
……
_161_
4-02
A perusal whereof makes it clear that the property in issue was
mentioned as the property belonging to the defunct Association
and its supervision was vesting in the ETPB.
13.
With regard to the validity of the acquisition
proceedings of the 8 acres of the then evacuee land, reliance may
be placed upon Section 12 of the Pakistan (Administration of
Evacuee Property) Ordinance, 1949 (as amended by Act of XXXI of
1951) which is reproduced hereunder:
Chapter II
Appointment of Custodians and Vesting and Possession of
Evacuee Property
12. Exemption from legal process.- (1) Property which has vested
in, or of which possession has been taken by, the Custodian shall
be exempt from all legal process, including seizure, distress,
CAs 2215-2222/06
-: 20 :-
ejectment, attachment or sale by any officer of a Court, and no
injunction or other order of whatever kind in respect of such
property shall be granted by the Court or any other authority.
(2) Upon the commencement of this Ordinance, any such legal
process as aforesaid subsisting immediately before such
commencement shall cease to have effect, and all evacuee property
in custody of any Court, or receiver, guardian or other officer or
person appointed by it, shall, upon delivery of the same being
called by the Custodian, be delivered to the Custodian.
(3) Nothing contained in the foregoing sub-sections shall—
a) prevent a Registering Officer from ordering registering of a deed
of sale or exchange relating to evacuee immovable, or a Civil
Court from ordering specific performance of a contract of sale or
exchange of any such property where the sale or exchange or
contract of the same has been duly confirmed or approved by the
Custodian and the required certificate has been granted by him;
or
b) affect any power conferred on the Central Government or by or
under any law for the time being in force to requisition or
acquire property, and it is hereby declared that if by or under
such law or any other law for the time being in force, a like
power is conferred upon or delegated to a Provincial
Government the Provincial Government may exercise the same
in relation to evacuee property with and only with the previous
approval of the Central Government and subject to such
direction as the Central Government may at any time see fit to
give.
Hence in light of Section 12(3)(b) ibid, an exemption was granted to
the Federal Government for the acquiring of evacuee land and
hence the acquisition of the 8 acres of Survey No.37 of the
disputed land by the Federal Government was in accordance with
the law and hence the acquisition proceedings were validly
initiated.
14.
In view of the above, the dispute remained that
whether the disputed land being evacuee trust property could be
acquired
by
the
government
under
the
land
acquisition
proceedings. It is an undisputed fact by the parties concerned that
prior to the Madhavji Dharasibhai judgment in 1957, the
lands/properties of the Association had not been declared as
evacuee trust property and thus the notifications made under
CAs 2215-2222/06
-: 21 :-
Section 4 and 6 of the Acquisition Act in this regard were valid. For
purposes of convenience, relevant portions of these notifications
are reproduced hereunder:
Notification under Section 4 of the Acquisition Act;
The Gazette of Pakistan
May 21, 1954
-----------
Karachi 15 May, 1954
No. 25/10/Rev 53.- Whereas it appears to me that land specified in the
Schedule hereto are likely to be needed/to be taken by Government at the
expenses of the Government of Pakistan, and for the purpose specified
against it in the Schedule.
It is hereby notified under the provisions of Section 4 of the
Land Acquisition Act 1 of 1984, as amended by Act XXXVIII of 1923
that the said lands are likely to be needed for the public purpose specified
in the Schedule.
Any person hereby interested in the said lands are hereby warned
not to obstruct or interfere with any surveyors or any other persons
employed on the said land for the purpose of the said acquisition. Any
contract for the disposal of the said lands by sale, lease, mortgage,
assignment, exchange or otherwise on any improvements made therein
without the sanction of the Collector after the date of this Notification
will under Section 24 (Seventhly) of the said Act be disregarded by the
officer assessing compensation for such parts of the said land as may be
finally acquired.
………..If the acquisition is in part or wholly abandoned, the
facts will be duly notified on the Pakistan Government Gazette.
I further direct under Sub-Section (4) of Section 17 of the said
Act that as the acquisition of the said land is urgently necessary, the
provisions of Section 5-A of the said Act shall not apply in respect of the
lands.
**************
Schedule
Taluka: Karachi – District: Karachi
Taluka
Deh
S.No. Area of S.No. Approximate
Purpose
(in acres)
area required of
(in acres) acquis..
……
…..
…..
…….
……
…..
……
…..
…..
…….
……
…..
Karachi
Oke-
37
18-3
8-0
For the
wari
construction of
Karachi Police
Lines etc.
…………
(Stamp of A.T. Naqvi
Chief Commissioner, Karachi)
[Emphasis applied]
Notification under Section 6 of the Acquisition Act;
CHIEF COMMISSIONER’S SECRETARIAT
(Revenue Department)
CAs 2215-2222/06
-: 22 :-
No.25|10|Rev.53. – Whereas by notification in the Revenue Department
No.25|10|Rev.53 dated 15th July 1954, it was notified that the lands
specified in the schedule hereto were needed for the purpose stated in the
said notification viz., for construction of Police Lines, etc., and whereas I
am satisfied that the said lands are needed for a public purpose as
specified above.
It is hereby declared under the provisions of Section 6 of the Land
Acquisition Act, 1894 (1 of 1894) that the said lands are needed for
public purpose as stated above.
…..He (Deputy Collector Land Acquisition), Karachi) is also directed
under Section 7 of the said Act to take order for the acquisition of the
said lands.
And whereas the acquisition of the said lands is urgently necessary, I
further direct under sub-section (1) of Section 17 of the said Act that the
Collector shall on the expiration of 15 days from the publication of the
notice relating to the said lands under sub-section (1) of Section 9 of the
said Act, take possession of all the waste and arable lands specified in
my notification aforesaid mentioned.
....
….
**************
Schedule
Taluka: Karachi – District: Karachi
Taluka
Deh
S.No. Area of S.No. Approximate
Purpose
(in acres)
area required of
(in acres) acquis..
……
…..
…..
…….
……
…..
……
…..
…..
…….
……
…..
Karachi
Oke-
37
18-3
8-0
For the
wari
construction of
Karachi Police
Lines etc.
…………
A.T. Naqvi
Chief Commissioner, Karachi
[Emphasis applied]
A perusal of the notifications above reveals that both were made
under Section 17(1) of the Acquisition Act by virtue of which, on
the expiration of 15 days from the publication of the notice relating
to the said lands under sub-section (1) of Section 9 of the said Act,
possession can be acquired by the Federal Government regardless
of whether statutory award of compensation is made (as required under
Section 11 of the Acquisition Act) to the persons entitled by such time.
Needless to observe that the disputed land, to the extent of 8 acres,
vested absolutely in the Federal Government once possession of
CAs 2215-2222/06
-: 23 :-
the same was taken under Section 16 of the Acquisition Act, which
is reproduced hereunder;
16. Power to take possession.— When the Collector has made an award
under Section 11, he may take possession of the land, which shall
thereupon vest absolutely in the Government free from all encumbrances.
[Emphasis supplied]
Evidence of the taking of possession has been proved by the
learned counsel for the respondents vide letter from the
Mukhtiarkar to the Assistant to the IG Police dated 21.10.1954
which provides that possession was taken over by the Police on
21.10.1954. Although the learned counsel for the appellants has
claimed that the disputed land is presently in possession of the
appellants, he has failed to produce any evidence to controvert the
fact that the possession was taken over under Section 16 by the
Police, in effect completing the procedure of acquisition, or that at
the time of acquisition, the Haris were occupying the disputed land
and the same was not taken over by the Government. Once the
land so acquired vested absolutely in the Federal Government, the
Federal Government was competent to transfer the same to the
KDA as there is no prohibition in the Acquisition Act in this regard,
and this is in consonance with the law laid down in the judgments
reported as Muhammad Hussain Beg v. Govt. of West Pakistan
(PLD 1961 Lah 696), Syed Nazar Abbas Naqvi v. Commissioner
Sargodha Division (PLD 1993 SC 455 at pgs 462-463), Asmat
un Nisa v. Govt. of NWFP (2010 SCMR 480 at pg 490), and
Rana Abdul Majid v. Faislabad Development Authority (1994
MLD 1895). The approval of the Federal Government for such
transfer was given vide notification dated 19.10.1963 made by the
Basic Democracies Social Welfare and Local Government Dept.,
CAs 2215-2222/06
-: 24 :-
which is a department of the Federal Government, as such, it
constitutes a valid transfer for all legal purposes.
15.
The amount of compensation to be awarded in this
regard had been calculated as Rs.3000/- per acre according to the
Award
made
by
the
Deputy
Commissioner,
Karachi
vide
notification dated 19.10.1963. The payment made by the KDA in
this regard is evidenced in the challan dated 30.11.1964 (at pg. 82 of
CMA No.2659/2007) referred to by the counsel for the respondents, the
contents of which are reproduced hereinbelow;
CAs 2215-2222/06
-: 25 :-
The acquisition proceedings which commenced in the year 1954,
thus stood concluded after due payment made as evidenced above,
which was in accordance with the market rate calculated in the
award made by the Deputy Commissioner on 19.10.1963.
16.
As argued by the learned counsel for the respondent,
the land acquired for a particular purpose can be subsequently
used for a different purpose. Reliance in this behalf may be made
to the judgments reported as Muhammad Hussain Beg v. Govt. of
West Pakistan (PLD 1961 Lah 696), Syed Nazar Abbas Naqvi v.
Commissioner Sargodha Division (PLD 1993 SC 455 at pgs
462-463), Asmat un Nisa v. Govt. of NWFP (2010 SCMR 480 at
pg 490), and the law laid down in Rana Abdul Majid v.
Faisalabad Development Authority (1994 MLD 1895) whereby it
was held that once land has been acquired by the Government, the
title no longer vests with the original owners. Further, as held by
this Court in the judgments reported as Pakistan v. Muhammad
Ali (PLD 1960 SC 60 at pgs 60,64, 67-70) and Muhammad
Ishaq v. Govt. of Punjab (2002 SCMR 1652 at pg. 1661) the
acquisition of land for a housing society is recognized as a public
purpose. In light of the above and the notification under Section 9
of the Acquisition Act (pg. 28 of CMA No. 2659/2007), the said 8 acres of
the disputed land are held to be validly acquired by the Federal
Government under the 1954 acquisition proceedings.
17.
The law governing evacuee trust property however
underwent a sudden change in the year 1983, when MLR 57 was
promulgated
solely
for
the
purposes
of
removing
illegal
encroachments (property acquired illegally or by fraud or misrepresentation or
otherwise) by Government and private organizations on the evacuee
CAs 2215-2222/06
-: 26 :-
trust properties, which lands were to be restored to the ETPB. The
appellants, who are the successors in interest of the Haris,
maintain that pursuant to lease obtained by them from the ETPB
for 33 years, which was later extended to 99 years in the year
1990, they were the rightful occupants of the disputed land and
MLR 57 was not applicable to any evacuee trust land which was
legally transferred to any person. The main thrust of the argument
of appellant’s counsel was that since the said lease was granted to
the Haris pursuant to the judgment of the learned Trial Court
dated 30.5.1984, which was upheld in appeal vide judgment dated
31.8.1988, therefore, the said Haris were lawful occupants of the
disputed land.
18.
In this regard it is to be noted that Paragraph No.1 of
MLR 57, reproduced hereinabove, makes it abundantly clear that
the disputed land was conclusively declared to be ‘evacuee trust
property’ and hence any such property would be ordered to be
restored. Moreover, paragraph 5 of MLR 57, without making any
exceptions of any kind, provides that all judgments or orders of
any Court before the promulgation of MLR 57, shall abate. For
purposes of reference, paragraph 5 is reproduced below:
5.
Every judgment or Order of any Court including the Supreme
Court, High Court, Tribunal or authority given or made before the
commencement of this Regulation, whether pending in the Supreme
Court, Tribunal or authority shall abate.
In light of the above paragraph, as rightly held by the learned High
Court in its findings in the impugned judgment, since all judicial
proceedings and orders pronounced by different Courts prior to the
promulgation of MLR 57 stood nullified, it would be a useless
exercise to go into details with regards to any such judgments.
CAs 2215-2222/06
-: 27 :-
Needless to observe that when MLR 57 was promulgated, the
appeal was pending before the appellate Court and as per above
paragraph, the same stood abated, but the Appellate Court
continued with the proceedings on the pretext that the Haris were
lawful occupants of the same. Whereas, the fact that the Haris
were lawful occupants had never been determined, which fact was
determined by the Chairman, ETPB vide order dated 10.6.1985
passed under MLR 57 in his capacity as Authority. Therefore, the
land of the Association as detailed in the Schedule to MLR 57 was
conclusively declared evacuee trust property and only a legally
valid transaction, agreement, lease etc., acquired prior to MLR 57
would be saved from the impact of paragraph 6 of the MLR. Thus,
the remaining 24 acres and 3 ghunats of land, on account of the
above, were saved from operation of paragraph 6 of MLR 57 which
mandated that the land could be disposed of.
19.
With regard to the remaining portion of the disputed
property measuring 24 acres and 3 ghuntas, it is to be noted that
the ETPB, under Section 4(d) of the ETP Act 1957, was authorized
to sell or transfer the evacuee trust property provided that prior
approval of the Federal Government was obtained in this regard.
The said land fell within the boundaries of Scheme No.24, as such
its possession was taken over by the KDA. The ETPB had for the
first time raised the issue of the purported illegal occupation of
evacuee land in the year 1968, conceding that a detailed circular in
this regard was issued by the ETPB vide Circular No.
ETPB/68/4152 dated 13.06.1968, whereby the ETPB categorically
stated that where evacuee trust lands had already been taken over
by the KDA, compensation on reasonable rates would be decided
CAs 2215-2222/06
-: 28 :-
upon and the matter henceforth would be disposed of. Subsequent
to the issuance of the abovementioned Circular, the District
Evacuee Trust Committee in its meeting held on 23.1.1969 (Minutes
of Meeting reproduced in letter of the ETPB) resolved that the ETPB should
be paid by the KDA for all of the land falling within KDA Scheme
No.24 (2662 acres) on the basis of the compensation award in 1963
and based on the market rate prevailing at the time, compensation
payable for 268-13 acres (which according to the learned counsel meant evacuee
land that was in addition to the 256 acres already paid for i.e. inter alia 8 acres of the
disputed land) was calculated at Rs.13,17,216.24 which was inclusive
of interest from 7.5.1965 to 30.6.1971. Full payment of this
amount was made through cheque No.CCC-982502 dated
30.7.1971, as evidenced in letter dated 15.9.1971, which is
reproduced hereunder;
Thus, at that point, all formalities were complete and the land, to
that extent too, stood conclusively transferred to the KDA.
CAs 2215-2222/06
-: 29 :-
20.
As we have already held hereinabove 8 acres of Survey
37 of the disputed land had validly been acquired under the
acquisition proceedings of 1954 and the same were validly
acquired by the KDA and transferred to WCHS. We further hold
that the remaining 24 acres and 3 ghuntas, which was evacuee
trust property for all legal purposes after the promulgation of MLR
57, was legally and validly transferred/sold by the ETPB to the
KDA in accordance with Section 4(d) of the ETP Act 1957.
21.
With regard to the question whether the land was
factually and validly leased out to the Haris and thus whether they
had validly transferred it to the appellants or not; suffice it to say
that as mentioned above in detail, the bulk of the members of the
Managing Committee of the Association left the country and the
remaining members were insufficient in number to complete the
quorum, and further the annual general meetings of the
Association could not be held over a long period of time, as such
the Association had become defunct and ceased to function. In
such a situation, it is not conceivable that the occupation of the
land of the Association by the Haris, even if it was on lease
obtained from the then Management Committee, when it was
functional, could by any stretch of imagination be considered to be
valid when the said Committee had become defunct. So when the
title of the Haris was not valid, obviously, they could not transfer a
better title to the appellants.
22.
In light of the above, these appeals are dismissed.
23.
In the circumstances when the appeals have been
dismissed, we do not want to further proceed with the contempt
CAs 2215-2222/06
-: 30 :-
matter, resultantly, the same (Criminal Original Petition No.31 of 2008) is
accordingly disposed of.
CHIEF JUSTICE
JUDGE
JUDGE
Announced in open Court
on 16.2.2018 at Islamabad
Approved for reporting
Waqas Naseer
CHIEF JUSTICE
| {
"id": "C.A.2215_2006.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
PRESENT
Mr. Justice Maqbool Baqar
Mr. Justice Munib Akhtar
Mr. Justice Qazi Muhammad Amin Khan
( V
CIVIL APPEAL NO. 221/2018
(Against the judgment dated 28.11.2017 of
the Lahore High Court, Mutton Bench passed
in RSA No. 8/1998)
Haq Nawaz etc.
Versus
Appellant(s)
Ban aras etc.
Respondent(s)
For the Appellant(s)
Respondent Nos. 1-7
For Respondent No.8-10
Date of Hearing
Moulvi Anwar-ul-Haq, ASC
Ex-Parte
Mr. Anwar Mobiri Ansari, ASC
15.09.2021
ORDER
Magbool Bagar, J. Assailed through the above appeal
was the judgment of the Lahore High Court, whereby the respondent
No.8 to 10's regular second appeal against the concurrent
Judgments of the fora below was allowed.
2. The dispute mainly was with regard to the sale of the
land owned by Mst. Channan Jan, the predecessor in interest of
respondents No.] to 7. The impugned sale was affected by Ghulam
Rasool, the predecessor in interest of appellants No.) and 2, who on
14.10.1974, as attorney of Msf. Channan Jan, transferred the land in
favour of his sons, the appellants Nos.] and 2, through oral sale
mutation No. 61.
3. The mutation, upon being challenged by Mst. Channan
Jan,
was
cancelled
by
the
concerned
Assistant
Commissioner/collector on 30.4.1975. The appeal filed by the
appellants No.] and 2 against the said cancellation was dismissed
by the concerned Additional Commissioner on 25.10.1975. However
instead of pursuing the matter before the revenue hierarchy any
further, the appellants No.] and 2 on 30.10.1975 filed a suit, seeking
to be declared owners of the suit land on the basis of the aforesaid
oral sale mutation, though the same, as noted above, had already
been cancelled. The said appellants however in the alternative
sought a decree for specific performance of an agreement to sell
dated 02.9.1 974. They claimed that in transferring the suit land in their
favour, Ghulam Rasool, who was their father, and a tenant of Mst.
Channan Jan, in respect of the suit land, acted under and in terms
of a General Power of Attorney executed and registered by Mst.
Channan Jan in his favour on 17.2.1973. According to said
appellants, Ghulam Rasool had on 02.9.1974 entered into an
agreement to sell the suit land with Mst. Channa Jan for a sale
consideration of RS.40,000/-,
4. It is an admitted fact that Mst. Channan Jan was an old
illiterate village dweller, with ill health. The lady was not able to even
move on her own, and had been carried to the Registrar's office for
the execution of the power of attorney by someone. Ghulam Rasool,
the purported attorney, while deposing before the trial Court, also
has not denied the suggestion that she was a parda nashin lady. It
was not even pleaded that she received any independent advice
and/or that contents of the power of attorney were read over and
explained to her before she executed if.
5. Mst. Channan Jan's stance throughout has been that
she appointed Ghulam Rasool, who was her tenant in occupation,
as her attorney, merely to manage the affairs of her land and for
nothing more, and therefore, given the status of the lady, it was
Imperative for the appellants No.] and 2 to have demonstrated and
proved that at the time of the execution of the power of attorney,
she was fully conscious of the fact that the document also contained
power to sell and that the entire document was read out and
explained to her fully and truly, and further that she executed it under
an independent advice. They had also to prove that the lady was
fully aware and conscious of the consequences and implications of
executing the said document. However neither did they prove, nor
even pleaded any of it. It therefore cannot be held that Ghulam
Rasool, was in fact authorized by Mst. Channan Jan to sell the suit
land. The impugned sale/transfer was thus liable to be set-aside on
this ground alone. In any view of the matter, since admittedly, the
power of attorney did not specifically authorized Ghulam Rasool, to
convey the property to his sons, or for that matter to any of his near
ones, nor has he been able to prove that, he was otherwise so
authorized. The impugned sale mutation was liable to be cancelled
as rightly done by the revenue hierarchy. Since long it is well
established that an attorney cannot lawfully make transfer of a
property under agency in his own name, or for his benefit, or in favour
of his associates, without explicit consent of the principal, and in the
event he does so, the principal, under the mandate of section 215 of
the Contract Act, has a right to repudiate such transaction. Msf.
Channan Jan having disowned the subject transaction, the some
was rightly annulled as noted above.
6. In any case the power of attorney, of whatever worth it
was having admittedly been revoked by Mst. Channan Jan through
revocation deed dated 05.9.1974, and thus on 14.10.1974, the date
on which Ghulam Rasool purportedly transferred the suit land, he no
more remained attorney of the lady, and stood denuded of
4
whatever power he purportedly enjoyed thereunder. The transfer of
The suit land by Ghulam 1asool was without authority and was of no
legal effect.
7. Although as noted above, the appellants No.] and 2's
case as initially presented before the trial Court, through their plaint
dated 30.] 0.1975. simply was that their father, being attorney of Mst.
Channan Jan, on 02.9.1974, entered into an agreement to sell the
suit land with them and thereafter transferred the lands in their favour
through mutation No.61 attested on 14.10.1974. There was absolutely
no mention of any sale agreement between their father Ghulam
Rosool and the lady. The plaint was thereafter amended twice firstly
on 04.3.1981 and then on 21.2.1985, however still there was no
mention of any sale between the lady and Ghulam Rasool. It was
only through third amended plaint filed on 03.1.1987, that the said
appellants introduced a new story claiming that Mst. Channan Jan
had in fact orally agreed to sell the land to Ohulam Rasool for an
amount of Rs.40,000I- and it was upon payment of the said sale
consideration amount that she executed the general power of
attorney dated 17.2.1973 in favour of Ghulam Rasool, to enable him
to pay the outstanding dues in respect of the suit land so that
proprietary rights therein may be conferred on her, and the land may
then be transferred accordingly. The story as can be seen from the
forgoing was so introduced, by the appellants No.1 and 2 to enable
them to plead that since the power of attorney was coupled with
interest the same could not have been lawfully revoked. However in
the first place the appellants No.] and 2 could not have been
allowed to set up and plead a case different from what they initially
narrated and pleaded, secondly, this subsequent plea even
otherwise did not inspire confidence, it was merely a vague assertion,
bereft of necessary details. The said appellants did not even
mentioned as to when, where and in whose presence the land was
orally sold to Ghulam Rasool as claimed by them. The alleged
purchase by Ghulam Rasool and the claim that the power of
attorney was executed for consideration also does not find support
even from the written statement tiled by Ghulam Rasool in the case.
Ohulam Rasool has through his written statement which he filed on
03.2.1976 simply conceded the claim of the appellants No.1 and 2 as
set out in their original plaint dated 30.10.1975, which plaint, as noted
earlier, made no mention of any sale in favour of Ghulam Rasool or
of any payment by him to Mst. Channan Jan as a consideration
therefor. Ghulam Rasool in his evidence recorded at an earlier stage
of the trial as PW-4, simply deposed that Mst. Channan Jan had
appointed him as her attorney, and as such he sold the suit land to
the appellants No.1 and 2. However subsequently, after the above
amendment in the plaint, when Ghulam Rasool was examined as
PW-7, he claimed to have purchased the property himself and
having himself paid the agreed sale consideration of RS.40,000/- to
Mst, Channan Jan in presence of witnesses Allah Wasaya (PW-5) and
Allah Dawaya (PW-6), as well as of the son and daughter of Mst.
Channan Jan, namely, Banaras and Khadija, the respondent No.]
and 5 respectively, but he still failed to mention the date and venue
of the purported transaction. Although the said two witnesses who
were cousin brothers of Ghulam Rasool, were examined by the
appellants No.1&2, however their evidence failed to lend any
credence to the appellants' stance, as they contradicted each
other in material details.
8. The appellants No.] and 2 have thus miserably failed to
establish that the suit land was sold by Mst. Channan Jan to Ghulam
S
6
Rasool and/or that the power of attorney was executed in
consideration of the price of land paid by Ghulam Rasool and/or
that the same was otherwise coupled with interest. The power of
attorney also does not say so. No strings were therefore attached to
the power of attorney that preventing Mst. Channan Jon from
revoking it before Ghulam Rasool acted thereunder, which she did,
before the purported oral sale mutation in favour of the appellants
No.] and 2 was recorded. The said mutation was therefore wholly
without authority, illegal and ineffective and therefore was rightly
cancelled.
9.
As regards the agreement to sell dated 02.9.1974, it may
be noted, that despite the fact that Mst. Ohannan Jan had denied
entering into any agreement with/or selling her suit land to Ghulam
Rasool, and further that neither the relevant roznamcha rupt, nor the
purported sale mutation, makes mention of any written agreement.
However,and despite the fact that the stamp paper does not bear
the name of Ghulam Rasool, and was rather purchased in the name
of someone else. Neither the purchaser was produced nor was the
vendor of the stamp paper examined, or was the relevant register of
the stamp vendor summoned, and more crucially the witnesses
examined in respect of the said agreement did not mention the date
thereof. The above gives credence to the respondents' stance that
the agreement was manipulated subsequently in order to defeat the
consequences of the cancellation of power of attorney and is
therefore of no avail to the appellants.
10.
So for as the contention of the appellants that sale of the
suit property in favour of respondent No.8 to 10 is hit by doctrine of lis
pendens, as envisaged by the provision of section 52 of the Transfer
7
of Property Act, 1882 which provides that a suit land cannot be
transferred by any party to the suit, so as to effect the rights of the
other party thereto, under the any decree or the order which may
be made in the suit. As noted above, the said restriction is subject to
the outcome of the suit, thus the fate of such sale/transfer depends
upon the outcome of the suit. Whereas in the present case, since
purportediqsale in favour of the appellants No.1 and 2 has been held
to be illegal and without authority, they have no locus standi to
object to the sole of the land in favour of respondents No.8 to 10. The
appeal is dismissed.
Islamabad, the
7511 September, 2027
(ADmit Shjr
APPROVED FOR REPORTING'
| {
"id": "C.A.221_2018.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE MIAN SAQIB NISAR
MR. JUSTICE MANZOOR AHMAD MALIK
CIVIL APPEAL NO.222-L OF 2016
(Against the judgment dated 10.6.2015 of
the Lahore High Court, Lahore passed in
W.P.No.3925/2015)
Mian Umar Ikram-ul-Haque
…Appellant(s)
VERSUS
Dr. Shahida Hasnain and another
…Respondent(s)
For the appellant(s):
Mr. Qamar Zaman Qureshi, ASC
For respondent No.1:
Mr. Riasat Ali Chaudhry, ASC
Date of hearing:
15.09.2016
…
JUDGMENT
MIAN SAQIB NISAR, J.- This appeal with the leave of
the court dated 6.9.2016 involves a simple yet important question of
law i.e. whether an order under Section 24 of the Punjab Rented
Premises Act, 2009 (the Act) can be passed against a respondent of an
eviction application when he has denied the relationship of tenancy,
leave to contest has been granted pursuant to a leave application and
an issue to that effect has also been framed by the learned Rent
Tribunal.
2.
The brief facts in the context of the aforesaid question
are that respondent No.1 (respondent) filed an eviction application
against the appellant under the Act asserting that the latter is a
tenant who failed to pay rent to the former according to the terms
and conditions of the lease agreement dated 1.1.2012 entered into
between the two parties. The application also states that such lease
C.A.222-L of 2016
-:2:-
agreement was not registered with the Rent Registrar therefore the
amount of 10% rent is being deposited as fine. The rate of rent was
claimed as Rs.40,000/- per month. The appellant filed an application
for leave to contest in which he specifically and unequivocally denied
the relationship of tenancy and clearly set out a defence that he was
in occupation of the property pursuant to an agreement to sell dated
1.2.2012 between the parties in terms whereof the appellant paid an
amount of Rs.41,00,000/- at the time of execution [out of the total
consideration of Rs.61,00,000/-] and took possession; the balance
amount was/is payable at the time of the execution of the sale deed.
It was further averred that the appellant had already filed a suit on
3.10.2012 for the performance of the agreement to sell whereas the
eviction application had been moved on 3.12.2014. It was
categorically stated that the lease agreement dated 1.1.2012 was/is a
fake and forged document. The learned Rent Tribunal vide order
dated 3.12.2014 granted leave to the appellant and in view of the
defence taken, framed a sole issue i.e. whether the relationship of
landlord and tenant exists between the parties, if so its effect.
However the learned Rent Tribunal observed that since the
relationship of landlord and tenant was yet to be determined,
therefore no order as to interim rent could be made. The respondent
did not challenge this order of the learned Rent Tribunal but instead
moved an application under Section 24 of the Act with the prayer
that an order for the deposit of past and future rent due be passed by
the Tribunal in terms of the section ibid. The application was
dismissed by the learned Rent Tribunal vide order dated 2.1.2015 on
the ground that since the respondent had denied the relationship of
landlord and tenant, the order for the deposit of rent under Section
C.A.222-L of 2016
-:3:-
24 ibid cannot be made till such relationship is established.
Aggrieved, the respondent challenged both the orders dated
3.12.2014 and 2.1.2015 by filing a constitutional petition before the
learned High Court (in which the appellant was proceeded against ex-parte and the
impugned order is ex-parte order) to the extent that no direction was given for
deposit of rent.. The learned High Court, while allowing this petition,
held as under:-
“The tenor of section 24 of the Act does not
make a distinction between the cases where the
relationship of landlord and tenant is admitted
and in those cases where the said relationship
is denied. The mandate of section 24 is clear.
When an application for leave to contest is
granted, it falls upon the Rent Controller to
make an order for the deposit of rent due from
the tenant and continue to deposit the same in
accordance with the tenancy agreement. This
proposition is bolstered by the terms of
subsection (2) of section 24 of the Act which
lays down that if there is no dispute as to the
amount of rent due, then the Rent Tribunal
shall tentatively determine the dispute and pass
the order for the deposit of rent in terms of
subsection (1) of section 24 of the Act. The
term “rent due” has a wide sweep and would
include a dispute of the nature where the
relationship
of
landlord
and
tenant
is
denied…”
It was further held that:-
“A common thread which runs through the Act
is to discourage and ward off unscrupulous and
C.A.222-L of 2016
-:4:-
irrational defenses on the part of tenants. If the
deposit of payment of interim rent was made
dependent upon the denial or acceptance of the
relationship of landlord and tenant then the
spirit which permeates the Act would be
rendered nugatory…A combined reading of
sections 5, 6, 7, 8 and 9 of the Act, 2009 brings
forth ineluctably the sea-change which runs
through the length and breadth of the Act,
2009…The jurisdiction of Rent Tribunal is only
triggered when the conditions laid down in the
Act, 2009 are found to exist…It is clear from a
reading of the provisions of section 10
reproduced above that an agreement to sell or
any other agreement entered into between the
landlord and tenant shall not affect the
relationship of landlord and tenant.
In reaching its decision, the learned High Court relied heavily upon a
judgment of this Court reported as Rana Abdul Hameed Talib Vs.
Additional District Judge, Lahore and others (PLD 2013 SC 775).
3.
Leave has been granted to consider whether an order
under Section 24 of the Act can be passed where the relationship of
tenancy has been denied and the effect of Section 10 of the Act upon
such denial. Although the legislative history of rent laws in Pakistan
has been discussed in detail in Rana Abdul Hameed Talib’s case
(supra), nevertheless we find it expedient to briefly reiterate the same
for the sake of completeness before deciding the proposition in hand.
Initially disputes inter se landlords and tenants relating to leases and
tenancies were dealt with under the general law of the land i.e.
Transfer of Property Act, 1872 (excluding leases of agricultural properties, dealt
with by the revenue courts) and the same were adjudicated by the courts of
general jurisdiction (see Section 9 CPC). The West Pakistan Rent
C.A.222-L of 2016
-:5:-
Restriction Ordinance, 1959 (Ordinance) a special law was enacted for
the purposes of resolution of such disputes between landlords and
tenants within the purview of the provisions mentioned therein,
particularly Section 13 of the Ordinance which provided the grounds
upon which a tenant may be evicted by the landlord. The definitions
of landlord and tenant were specifically provided and it is clear that
jurisdiction under this special law was endowed in three ways. The
first was jurisdiction upon the subject matter i.e. the property was to
be urban immovable property – residential or non-residential, or
rented land etc. The second was jurisdiction upon the parties i.e.
there was to be a relationship of tenancy, in other words the dispute
must be between the landlord and tenant as defined in the law. The
third
was
territorial
jurisdiction.
Therefore
if
any
of
the
aforementioned requirements were not met, the Rent Controller
would have no jurisdiction over the matter before him. With respect
to the second type of jurisdiction: if the respondent in a rent matter
denied the relationship of tenancy, a question of jurisdictional fact
would arise. The doctrine of jurisdictional fact connotes that the
jurisdiction of an adjudication forum is dependent upon the
ascertainment and determination of certain facts. In this behalf, N.S.
Bindra in the Interpretation of Statutes Seventh Edition, 1984, p.229,
has defined "Court's jurisdiction to determine the jurisdictional fact",
as follows:-
“Court's jurisdiction to determine jurisdictional
facts. It is well settled that a Tribunal can
investigate into the facts relating to the exercise of
its jurisdiction when that jurisdictional fact itself is
in dispute. Where a Tribunal is invested with
jurisdiction to determine a particular question, it is
competent to determine the existence of the facts
C.A.222-L of 2016
-:6:-
collateral to the actual matter which the Tribunal
has to try. This power to decide collateral facts is
the foundation for the exercise of its jurisdiction.”
In Halsbury's Laws of England, it has been stated;
“Where the jurisdiction of a tribunal is dependent
on the existence of a particular state of affairs, that
state of affairs may be described as preliminary to,
or collateral to the merits of, the issue. If, at the
inception of an inquiry by an inferior tribunal, a
challenge is made to its jurisdiction, the tribunal
has to make up its mind whether to act or not and
can give a ruling on the preliminary or collateral
issue; but that ruling is not conclusive”.
The jurisdictional fact in this context would be whether the
relationship of landlord and tenant existed between the parties. If the
Rent Controller positively ascertained such a relationship through
factual enquiry, he would assume jurisdiction, otherwise the petition
had to fail because the Rent Controller in that situation would not
have any jurisdiction over the parties and consequently the matter
before him. Section 13(6) of the erstwhile Ordinance was similar to
Section 24 of the Act, where the Rent Controller was obliged to make
an order directing the tenant to pay all the past rent due and the
future rent that would become due: however this direction could only
be to a tenant and not a respondent of an eviction petition. There is
a conspicuous distinction between the two which needs to be
appreciated. The expression of law is that such direction be made to
a tenant, which expression (i.e. tenant) cannot be read or substituted
for the respondent of an eviction petition. ‘Tenant’ was defined in
Section 2(i) of the Ordinance, therefore an order under Section 13(6)
C.A.222-L of 2016
-:7:-
could only be passed against a person who fell within the definition of
‘tenant’ as provided in the Ordinance.
4.
From this examination of the erstwhile Ordinance it is
clear that where the relationship of tenancy was denied by the
respondent of the eviction petition the Rent Controller would be
exceeding his jurisdiction and acting in violation of the clear
provisions of law in directing such respondent to deposit the rent
due. This question pertaining to the earlier law came before the
superior courts in a number of cases and it has been categorically
held that in a situation where the relationship of tenancy was denied,
the Rent Controller could not pass an order for payment of rent due
under Section 13(6) of the Ordinance. In this respect the judgments
which are germane are Muhammad Ismail Vs. Israr Ahmad [PLD
1961 (W.P.) Lahore 601],Mst. Karam Bibi Vs. Mir Muhammad
Hassan and others [PLD 1962 (W.P.) Quetta 67], Akhtar Ali Pervez
Vs. Altaf ur Rehman [PLD 1963 (W.P.) Lahore 390], Habibullah Vs.
Bawa Vasdevgir Chelo Shambhugir (PLD 1968 Kar 869), Mst.
Khurshid Vs. Haji Abdul Hadi and 4 others(PLD 1979 Quetta 39),
Mst. Rashida Begum Vs. Mazhar Iqbal (1983 CLC 380), Abdul
Wahid Vs. Bashir Ahmad and others(1986 CLC 829), Muhammad
Siddique Vs. Fazal Hussain Qureshi and 2 others (PLD 1996 Lah
252), Mst. ah Razia Begum and another Vs. Senior Civil Judge
(Rent Controller), Charsadda and 2 others (PLD 1996 Pesh 8),
Tariq Ali Sheikh Vs. Rent Controller (Khalid Nawaz), Lahore and
another (1998 CLC 460), Sh. Muhammad Siddiq Vs. Khurram
Gulraiz and 2 others (1998 MLD 624), Ghulam Rasool Vs. Mian
Khurshid Ahmed (2000 SCMR 632),Khalid Saeed and others Vs.
Nadeem Ahmad Khan (2003 CLC 1614), Irfanullah Shah Vs.
C.A.222-L of 2016
-:8:-
Wahabullah and another (2003 YLR 1195), Qazi Muhammad
Hayat and others Vs. Dad Muhammad and others (PLD 2003 SC
231), Babu Din Vs. Civil Judge/Rent Controller, Multan and 6
others (2006 CLC 926), Aziz Ahmed Mughal Vs. Rent Controller
and others (2006 CLC 1381), Irshad Ahmad Khan Vs. Rent
Controller and 2 others (2006 CLC 1860), Ashiq Hussain and
another Vs. Jamia Masjid Hanfia Ghausia through President (PLD
2007 Lah 283) and Muhammad Wakil Khan Vs. Additional
District Judge, Lahore and 3 others (2007 CLC 1151).
5.
The Ordinance was repealed by the Punjab Rented
Premises Ordinance, 2007 which finally culminated into the Act.
Again, in this special law (the Act) the jurisdiction of the Rent Tribunal
is restricted to disputes which are covered by the Act in terms of
subject matter, parties and territorial jurisdiction. Subject matter
jurisdiction includes non-agricultural residential or non-residential
buildings or rented land whereas in terms of territorial jurisdiction it
is the same as the extent of the jurisdiction of the Rent Tribunal
under the previous law. With respect to parties, as was the case
under the earlier law, the Rent Tribunal would only assume
jurisdiction over a matter once the jurisdictional threshold is crossed
by establishing that the matter involves a landlord and tenant.
‘Tenant’ has been defined
C.A.222-L of 2016
-:9:-
termination of his tenancy for the
purpose of a proceeding under this Act;
(ii)
Legal heirs of a tenant in the event of
death of the tenant who continue to be
in occupation of the premises; and
(iii)
A sub-tenant who is in possession of the
premises or part thereof with the
written consent of the landlord…”
Section 24 of the Act reads as under:
“24.
Payment of rent and other dues for
pending proceedings.—(1)
If
an
eviction
application is filed, the Rent Tribunal, while
granting leave to contest, shall direct the
tenant to deposit the rent due from him within a
specified time, and continue to deposit the same
in accordance with the tenancy agreement or
as may be directed by the Rent Tribunal till the
final order.
(Emphasis supplied)
(2)
If there is a dispute as to the amount of
rent due or rate of rent, the Rent Tribunal shall
tentatively determine the dispute and pass the
order for deposit of the rent in terms of Sub-
section (1).
(3)
In case the tenant has not paid a utility
bill, the Rent Tribunal shall direct the tenant to
pay the utility bill.
(4)
If a tenant fails to comply with a
direction or order of the Rent Tribunal, the
Rent Tribunal shall forthwith pass the final
order.”
C.A.222-L of 2016
-:10:-
Through the impugned judgment the learned High Court has tried to
resolve the question at hand by dwelling upon the larger scheme of
the new rent laws by trying to decipher the latent intent of the
legislature, which in our view was completely unnecessary because
the answer to the question is quite patent. A plain reading of Section
24 of the Act reproduced hereinabove makes it clear that a direction
is not to be issued to the respondent of an eviction application but to
a tenant. The use of the word ‘tenant’ as opposed to ‘respondent’
speaks to the legislative intent. This usage appears to be conscious
and deliberate, because elsewhere in the Act where the parties to a lis
are meant to be referred to without identifying their legal characters,
the words ‘applicant’ and ‘respondent’ are used instead of ‘landlord’
and ‘tenant’ (see Sections 19, 21 and 22 etc.). Where there is a specific
intention to do so and the attending context requires that the parties
be referred to by their legal status, the legislature has used the words
‘landlord’ and ‘tenant’ (see Sections 5, 7, 9, 10, 11, 12, 13, 14, 15, 20, 24 etc.). It is
a settled canon of statutory interpretation that where a statute uses a
particular word(s), the presumption is that such word(s) is illustrative
of the legislative intent unless there are very cogent reasons to
displace the same and in our view, there are no such reasons that
justify interpreting Section 24 of the Act in a way that defeats its
express meaning. Therefore, it follows that where the relationship of
landlord and tenant is denied, the Rent Tribunal would lack
jurisdiction, on account of the doctrine of jurisdictional fact, to pass
an order for payment of rent due under Section 24 of the Act until
and unless the Tribunal positively ascertains the relationship of
tenancy and establishes that the respondent to the eviction
application is in fact a ‘tenant’ in terms of Section 2(l) of the Act. As
C.A.222-L of 2016
-:11:-
regards the argument of the learned counsel for the respondent that
where there is a contumacious denial by the respondent of an
eviction application the Rent Tribunal should pass an order for
payment of rent due, suffice it to say that contumacious denial of the
relationship of tenancy would form the basis for declining relief to the
respondent. Where the denial, prima facie, appears to be tainted and
contumacious, the Rent Controller would refrain from granting leave
to the respondent as a matter of right and course, in a perfunctory
manner. Instead, when the Rent Tribunal, without framing an issue,
concludes that the denial is contumacious in nature, it may refuse to
grant leave and allow the eviction application. Whilst so doing, the
Tribunal can simultaneously pass an order under Section 24 of the
Act finally determining the rent due from the tenant and direct that
the same be deposited/paid. However, where once leave has been
granted and the Tribunal has first to decide the question of its own
jurisdiction, then in that eventuality, on account of the clear
provisions of Section 24 ibid read with the definition of the word
‘tenant’ appearing in the Act, the Rent Tribunal is precluded from
passing an order without first determining the jurisdictional fact.
Once the relationship of tenancy has been denied the jurisdiction of
the Rent Tribunal has essentially been called into question and needs
to be resolved before the Tribunal can proceed to pass an order for
payment of rent due. It needs to be appreciated that the there is a
distinction between an issue as to the very authority to adjudicate
and those issues which may arise as between the parties. The Rent
Controller must first establish relationship of landlord and tenant.
Objections “to” proceedings must be distinguished from objections
“in” the proceedings. Issue of jurisdiction may be raised by a party
C.A.222-L of 2016
-:12:-
but it only concerns the court and the party over whom it is asked to
assume jurisdiction.1To hold otherwise would be to defeat the express
intention of the statute, which is that an order for payment of rent
due should only be passed against a tenant, and not merely a
respondent of an eviction application. The relationship of landlord
and tenant is an essential question which has a direct effect upon the
assumption and exercise of the jurisdiction of the Rent Tribunal,
which (question) must necessarily be positively ascertained before
passing an order for payment of rent due under Section 24 of the Act.
The judgment of the High Court reported as Farrukh Nadeem Vs.
Muhammad Ahmad Khan and another (2009 MLD 955) relied
upon by the learned counsel for the respondent to the effect that
where there is a contumacious denial an order under Section 13(6) of
the Ordinance can be passed is bad law which cannot be sustained,
thus this judgment is set aside. It may however be mentioned here
that where default in the payment of rent is set out as a ground in
the eviction application, the relationship of tenancy is denied by the
respondent, leave is granted to the respondent of the case, an issue
in this context is framed, evidence is led by the parties, and the Rent
Tribunal comes to the conclusion that such relationship exists, the
Tribunal by applying the principles of estoppel and the rule of
forfeiture of tenancy shall straightaway pass an order of eviction
against the respondent/tenant and shall also pass the final order
regarding the amount of rent due to the landlord which the
respondent (adjudged as a tenant) is obliged to pay, and such order shall
be executable against the tenant, besides the execution of the
1Akhtar Ali Pervez Vs. Altafur Rehman (PLD 1963 (WP) Lah 390), Full Bench, J Manzur Qadir.
C.A.222-L of 2016
-:13:-
eviction. However where grounds envisaged by Section 15 of the Act
other than default are raised in an eviction application, obviously the
Rent Tribunal after deciding the issue of relationship of tenancy and
finding in favour of the landlord may frame further issues on merits
and at that point of time pass an order under Section 24 ibid.
6.
We now advert to the question regarding the validity of
the agreement to sell in terms of Section 10 of the Act which (section)
reads as follows:-
“Effect of other agreement.—An agreement to
sell or any other agreement entered into
between the landlord and the tenant, after the
execution of a tenancy agreement, in respect of
premises and for a matter other than a matter
provided under the tenancy agreement, shall
not affect the relationship or landlord and
tenant, unless the tenancy is revoked through a
written agreement entered before the Rent
Registrar in accordance with the provisions of
section 5.”
Section 10 of the Act provides that an agreement to sell entered into
between a landlord and tenant, after the execution of a tenancy
agreement, shall not affect the relationship of landlord and tenant
unless the tenancy is revoked in accordance with the Act. In the
instant matter the case of the appellant (respondent in the eviction petition) is
that he was in occupation of the premises by virtue of an agreement
to sell entered into with the respondent, and not because he was a
tenant who subsequently entered into an agreement to sell with the
respondent. It is his stance that the agreement to sell had nothing to
do with any tenancy whatsoever, and therefore Section 10 had no
C.A.222-L of 2016
-:14:-
bearing on his case. We are inclined to agree with this argument.
Again, the use of the words ‘landlord’ and ‘tenant’ in Section 10 ibid
presupposes the existence of the relationship of tenancy between the
parties. Therefore the agreements to sell that Section 10 refers to are,
by ineluctable conclusion, the ones entered into between existing
landlords and tenants subsequent to their tenancy agreement and
during the subsistence thereof. This is entirely different from those
cases where there is/was no relationship of landlord and tenant from
the very beginning, as is allegedly the case in the instant matter.
Therefore, the judgment reported as Haji Muhammad Saeed Vs.
Additional District Judge (2012 MLD 108) relied upon by the
learned counsel for the respondent is distinguishable, pertaining to
the former category of cases where existing landlord and tenant
subsequently enter into an agreement to sell. This vital distinction
has eluded the attention of the learned High Court while passing the
impugned judgment.
7.
In light of the above, we answer the question identified in
the first paragraph of the opinion in the negative, in that an order
under Section 24 of the Act cannot be passed against a respondent of
an eviction application where the relationship of landlord and tenant
has been denied. The learned High Court has clearly erred in holding
that the Rent Tribunal is obliged to pass an order for payment of rent
due under Section 24 ibid notwithstanding the fact that the
relationship of tenancy had been denied. Therefore, this appeal is
accepted and the impugned judgment of the learned High Court is set
aside. Before parting it may be observed that the counsel for the
respondent has apprised us that in compliance with the impugned
judgment the appellant has deposited a certain amount with the Rent
C.A.222-L of 2016
-:15:-
Tribunal in response the appellant’s counsel states that his client
shall not withdraw such amount, which shall be subject to the final
decision of the case. We also direct that the suit for specific
performance filed by the respondent against the appellant and the
eviction petition be tried by the same court, therefore, either of the
parties may apply to the District Judge Lahore for the transfer of
either of the cases to one court. Such court should decide both the
matters within four months of the transfer of the case under
intimation to the Assistant Registrar (Lahore) of this Court.
JUDGE
JUDGE
Announced in open Court
on 10.10.2016 at Lahore
Approved For Reporting
Waqas Naseer/*
JUDGE
| {
"id": "C.A.222-L_2016.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
PRESENT:
Mr. Justice Iftikhar Muhammad Chaudhry, CJ
Mr. Justice Ijaz Ahmed Chaudhry
Mr. Justice Gulzar Ahmed
Civil Appeals No.2234, 2235 of 2005 & 61 of 2006
(On appeal from the judgment dated 30.06.2004 &
12.04.2005 passed by the Lahore High Court, Lahore in
W.P. No.143/2003 & 19438/2004 respectively)
And Civil Petitions No.1587-L, 1588-L of 2010
(On appeal from the judgment dated 6.07.2010 passed by the
Lahore
High
Court,
Lahore
in
W.Ps
No.5194/2006
&
11873/2010)
And Civil Petitions No.445-L & 454-L/2012
(On appeal from the judgments dated 12.10.2010 &
13.10.2011 passed by the Lahore High Court in W.Ps.
No.23372/2009 and 19138 of 2011)
1.
Secretary Economic Affairs Div, Islamabad etc. (in CA 2234/05)
2.
Anwarul Haq Ahmed
(in CA 2235/05)
3.
Miss Zainab Iqbal Mian
(in CA 61/2006)
4.
Secretary, Govt. of Pb. Health Deptt. (in CP 1587-L, 1588-L/10)
5.
Principal/EO, Fatima Jinnah Medical College
for women, Lahore
(in CP 445-L, 454/12)
…
Appellants/Petitioners
VERSUS
1.
Anwarul Haq Ahmed
(in CA 2234/05)
2.
Secretary M/o Finance etc.
(in CA 2235/05 & CA 61/06)
3.
Noorien S. Bokharee & another
(in CP 1587-L/2010)
4.
Hassan Ashraf
(in CP 1588-L/2010)
5.
Miss Sara Bukhtiar & others
(in CP 445-L/2012)
6.
Khadija Akram Ch. & others
(in CP 454-L/2012)
2
… Respondents
For the appellants
In CA 2234/05 & CP 1587-L,
1588-L/2010
Mr. Jawwad Hassan, Addl. A.G. Pb.
Mr. Ijaz Farrukh, Sr. Law Officer,
Health Department
(also for respondent in CAs 2235 & 61/2006)
For the appellants
In CA 2235/05 & CA 61/06
Mr. A.K. Dogar, Sr. ASC
(also for respondent in CA 2234/05)
For the petitioners:
in CP 445-L & 454-L/12
Mr. Anwar Kamal, Sr. ASC
For the respondents:
Mr. Abdul Sadiq Ch. ASC
(in CP 1587-88-L/10 & 454-L/10)
Malik Allah Yar Khan, ASC
(in CP 445-L/12)
For HEC:
Mian Muhammad Hanif, ASC
Raja Abdul Ghafoor, AOR
Date of hearing:
05.06.2013
*****
JUDGMENT
Iftikhar Muhammad Chaudhry, CJ. The listed appeals
with the leave of the Court as well as the petitions have been filed
against the judgments of the Lahore High Court, mentioned in the
title.
2.
Brief facts of the case are that as per prospectus for the
sessions 2002-2003 issued by Government of Punjab, Health
Department for admission in Medical Colleges of the Province, seats
were
allocated
under
various
categories
on
merits
and
to
accommodate students of some of the countries allocations of seats
were made under “Pakistan Technical Assistance Programme” (PTAP)
and under the “Self Finance Scheme” (SFS) for foreign students of
3
Pakistan origin. For convenience relevant paras from the prospectus
containing policy read thus:-
(iv)
FOREIGN STUDENTS SEATS:
(a)
Under Technical Assistance Programme:
The applicants seeking admission to a
medical
college
should
submit
their
applications
through
their
own
government/embassies to the Government
of
Pakistan
(Economic
Affairs
Division,
Islamabad). The nominations against these
seats, shall be communicated to the Health
Department, Government of Punjab, by
Economic Affairs Division, Islamabad for
onwards
transmission
to
the
colleges
concerned. Applications submitted directly to
the Principal or to the Government of
Punjab, shall not be entertained.
(b)
… …
(v)
FOREIGN STUDENTS SEATS ON SELF-FINANCE
BASIS:- The applicants seeking admission on self-finance
basis will be required to contribute to the college
endowment fund. This contribution would be US$10,000
per annum in addition to the normal fee till graduation.
However, such students will apply to the Economic Affairs
Division, Government of Pakistan Ministry of Finance,
Islamabad. The nominations against these seats, shall be
communicated to the Health Department, Government of
the Punjab, by Economic Affairs Division, Islamabad, for
onward transmission to the colleges concerned. The
students will have to pay for the first year through pay
order worth US $ 10,000 in the name of the Principal of
the college for which he/she has been nominated and for
the remaining four years a bank guarantee worth US $
40,000 in the name of the same Principal. In case a
student repeats any class at his /heown accord or fails in
the class/university examination, he/she will have to pay
US $ 10,000 for each extra year. Students discontinuing
their studies at their own or expelled from the college will
not be refunded the remaining amount which would be
credited to the college according to the bank guarantee.
(vi)
… …
(vii)
SELF-FINANCE SEATS:
(a)
Admissions would be open to local and
expatriate Pakistans.
(b)
Admissions would be on merit.
(c)
Fee for local students shall be Rs.2,50,000/-
per annum.
(d)
Fee for expatriate students shall be US$
10,000 per annum for colleges in Lahore, US
$ 7,000 per annum for colleges located in
Multan and Rawalpindi and US $ 5,000 per
4
annum for colleges located in Bahawalpur
and Faisalabad.
(e)
In case a student repeats any class at his/
her own accord or fails in the class/
University Examination, he/she will have to
pay the same amount as mentioned above
for each extra year.
(f)
For the first year the student will pay in
cash/pay order and he/she will have to
submit a bank gurantee for the remaining
four
years
equivalent
to
the
amount
applicable in his/her case.
3.
As per the prospectus for the year 2002-2003, 28 seats
were earmarked on SFS basis for foreign students, out of which 4
(2+2) seats were allocated to King Edward Medical College.
4.
Anwarul Haq Ahmed (respondent in CA No.2234/05 and
appellant in CA No.2235/05) having passed A-Level, from the
University of Cambridge, England, securing 935 marks out of 1100 as
per equivalence certificate issued by the Inter Board Committee of
Chairman. He applied for admission in the first year of MBBS for the
session 2002-03 for Medical Colleges in Punjab as well as for Self
Finance Scheme (SFS) and PTAP. He could not get admission on merit
against the general seats. As he did not fulfil the basic pre-conditions
of having studied abroad physically, his application was not considered
under the PTAP, however, he was offered admission under Self Finance
Scheme (SFS) against the seats reserved for foreign students of
Pakistan origin in the King Edward Medical College. It is to be noted
that according to the policy the student admitted under said scheme,
will have to contribute to the college endowment fund an amount of
US$10,000/- per annum, which will be paid in advance; that for
ensuring payment of fee for the remaining four year student will also
have to furnish a bank guarantee for an amount of US$40,000/-, in
additional to the fees payable by a regular student.
5
5.
It is to be noted that Anwar-ul-Haq, respondent being
Pakistan origin holding foreign nationality succeeded in getting
admission on SFS basis and deposited his contribution of US $10000
towards college endowment fund as prescribed in the policy noted
hereinabove, besides fulfilling his obligations towards payment of
normal fee thus he was admitted in 1st year of MBBS, Sessions 2002-
2003 in King Edward Medical College.
6.
It is pertinent to note that the Government of the Punjab,
Health Department vide letter No.SO(ME)8-91/2003 dated 03.02.2003
revised the policy for SFS, which is reproduced hereinbelow:-
“No.SO(ME)8-91/2003
GOVERNMENT OF THE PUNJAB
HEALTH DEPARTMENT
Dated Lahore, the 3rd February, 2003
To
The Principal/Chairman,
Admission Board,
King Edward medical College,
Lahore
SUBJECT:
REDUCTION
OF
SELF-FINANCE
RATES
FOR
FOREIGN STUDENTS IN MEDICAL COLLEGES OF
PUNJAB
Reference your letter No.191/KEMC/2002, dated 8. .2002 on the
subject noted above.
2.
The Competent Authority in the Government of the
Punjab on reconsideration of the issue decided as under:-
(i)
50% seats of MBBS (self-finance) for expatriate
Pakistans may be kept floating and the preferred
choice of candidates be respected
(ii)
The fee structure for the peripheral colleges like,
Multan, Rawalpindi be reduced from US$10,000/ to
US$7,000/- per annum and for Faisalabad and
Bahawalpur to US$5,000/- per annum.
3.
………
4.
….
6
ADDITIONAL SECRETARY (TACH)
HEALTH DEPARTMENT”
7.
The
respondent
Anwar-ul-Haq
filed
a
Writ
Petition
No.143/2003 before the Lahore High Court, wherein following prayer
was made:-
“In the light of Paras 31, 32, 33 and 34 it is respectfully prayed
that this learned court be pleased to declare the Revised Fee
Structure under Self Financing Scheme (SFS) for foreign
students of Pakistan origin ultra vires of the provisions of
Articles 2-A, 3, 4 and 25 read with 37(c) of the Constitution of
the Islamic Republic of Pakistan, 1973.
It is further prayed that this learned court be pleased to direct
the respondents to charge the petitioner a fee commensurate
with the actual expenditure of Rs.100,000 per annum incurred
on his education, which may be receivable in US dollars without
any additional fee, and to accordingly adjust the already paid
US$10000 by the petitioner refunding him extra amount after
deducting the aforesaid actual expenditure.
Also, it is prayed to direct the Respondents to abolish the bank
guarantee as security for payment of future fee for 4 years since
it is not required in any other province of the country and, being
too harsh, it has already been withdrawn by Punjab government
for local students admitted under SFS.”
8.
In the meanwhile, Government of Pakistan, Ministry of
Economic
Affairs
and
Statistics
vide
letter
dated
06.06.2003
communicated following decision to the Secretary Health, Government
of Pakistan:-
“No.1(1)FS/03
GOVERNMENT OF Pakistan
MINISTRY OF ECONOMIC AFFAIRS & STATISTICS
(ECONOMIC AFFAIRS DIVISION)
Islamabad, the 6th June, 2003
Fax:
92-51-9205971 & 9210734
From:
Joint Secretary,
Tele:
9205327
7
SUBJECT:
ADMISSION
OF
FOREIGN
UNDER
PAKISTAN
TECHNICAL ASSISTANCE PROGRAMME (PTAP/SELF
FINANCING SCHEME (SFS).
1
…
2.
…
3.
…
4.
You would kindly appreciate that the high fee rates for
Self-Financing Scheme and condition of submitting bank
guarantee for remaining four years studies has resulted into low
utilization of these seats for the last many years. No doubt the
revision of fee rates made by the Health department during last
year has improved the utilization of seats under SFS in Punjab.
However, it can be improved further by reducing the fee rates to
US$7,000 per annum for Medical colleges in Lahore and
US$5,000 for Colleges of rest of cities of Punjab and by waving
off the condition of bank guarantee as no such condition exists
in other Province.”
The above decision has been taken in continuation of letter dated
03.02.2003 issued by Government of the Punjab, Health Department,
which has been reproduced hereinabove.
9.
It may not be out of context to note that pending decision
of petition filed by the respondent before the High Court, Government
of Punjab enhanced status of King Edward Medical College to
University vide the King Edward Medical University, Lahore Act, 2005.
10.
A learned Division Bench of the Lahore High Court, vide
judgment dated 02.08.2004, allowed the said writ petition to the
extent that the letter dated 03.02.2003 in so far it prescribed a
different fee structure for the Foreign students admitted under the Self
Finance Scheme in different colleges of the Punjab and the condition of
furnishing Bank guarantee were set-aside. It was further directed that
the respondent authorities may, however, charge those students a
8
uniform rate of US $5000 per annum irrespective of the College in
which they were admitted. Relevant para therefrom is reproduced
hereinbelow:-
“10.
For what has been discussed above, this petition is
allowed. The letter dated 3.2.2003 in for as it prescribes a
different fee structure for foreign students admitted under the
self-finance scheme in different Colleges of the Punjab and the
condition of furnishing Bank guarantee are set aside. The
respondent authorities may, however, charge those students a
uniform rate of US$5,000/- per annum for irrespective of the
Colleges in which they are admitted. The petition stands
disposed of in terms noted above.”
11.
The Secretary, Economics Affairs Division, Government of
the Pakistan, Islamabad; Secretary Health Government of the Punjab;
Principal Executive Officer/Dean; and Deputy Dean, King Edward
medical College, Lahore, assailed the above decision in Civil Petition
No. 2932-L/2004, whereas respondent Anwar-ul-Haq also challenged
the same in Civil Petition No.2763-L/2004, wherein the reduced
amount of endowment US$5000 was also questioned being highly
excessive as compared to the actual expenditures by the government
on education and training of medical students. Leave to appeal was
granted vide order dated 23.11.2005, inter alia, to examine the
questions highlighted by the parties through their counsel while
arguing their respective petitions.
12.
It is important to note that following the judgment passed
by the Lahore High Court in the case of Anwar-ul-Haq, Writ Petitions
No.19438/04 (Ms. Zainab Iqbal Mian), 5198/2006 (Noorien S.
Bokharee), 23372/09 (Ms. Sara Bakhtiar), 11873/2010 (Hassan
9
Ashraf) and 19138/11 (Ms. Khadija Akram Ch.) were filed before the
High Court. In these petitions inter alia following prayers were made:-
“In view of the above circumstances and submissions it is
respectfully prayed that this honourable court be pleased to
declare that the General Conditions/Guide Lines for admission of
foreign students of Pakistan Origin under Pakistan Technical
Assistance Programme (PTAP) and Self Financing Scheme (SFS)
are without lawful authority and of no legal effect and the
petitioner is entitled to the same benefit as already directed by
this Honourable Court in W.P.No.1162/2006 as well as in the
light of reported judgment in PLD 2004 Lahore 771 which was
decided prior to the admission of the petitioner.
It is further prayed that pending disposal of the main petition
this honourable court be pleased to direct the respondents that
the sum of US$5000 P.A. only be charged from the petitioner in
future years as directed in Anwar-ul-Haq case (PLD 2004 Lahore
771).
It is further prayed that the excess payment of US$10000
already received by the respondent No.3 from the petitioner
directed to be adjusted against future demands for the ends of
justice, equity and fair play.”
13.
Learned High Court following the dictum laid down in the
judgment arising out of Anwar-ul-Haq’s case, allowed writ petitions
No. 5198/06, 23372/09, 11873/2010 and 19138/11 whereas writ
petition No. 19438/04 filed by Miss Zainab Iqbal Mian was partly
allowed, wherein the learned Division Bench of the High Court, after
relying upon the said case, did not strike down the SFS. However, it
was held that foreign students admitted under SFS should also be
treated equally with in their class and they should not be subjected to
a varying fee structure on the basis of different colleges in the
province of Punjab; all students under the above scheme should be
charged with same fee irrespective of their College or cities within the
10
Province, in view of the provisions of Article 25 of the Constitution. The
details of the proceedings of the High Court are as under:-
Writ Petition
No.
Title
of
the
Petition
Date
of
Judgment
Decision
WP 19438/04
Miss
Zainab
Iqbal
Mian
v.
Secretary
Ministry
of
Finance
12.04.2005 Partly allowed in
the light of the
judgment
in
Anwar-ul-Haq’s
case
WP 5198/06
Norien
S.
Koharee
v.
Secretary
Economic
Affairs
06.07.2010 Allowed
and
Disposed
of
in
terms
of
judgment
in
Anwar-ul-Haq’s
case
WP 11873/10
Hassan
Ashraf
v.
Secretary
Health, Govt. of
Punjab
06.07.2010 Allowed
and
Disposed
of
in
terms
of
judgment
in
Anwar-ul-Haq’s
case
WP 23372/09
Miss
Sara
Bukhtiar
v.
Secretary
to
Government of
Pakistan
12.10.2010 Allowed in terms
of
judgment
in
Anwar-ul-Haq’s
case
WP 19138/11
Khadija
Akram
Chaudhry
v.
Government of
the Punjab
13.10.2011 Disposed
of
in
terms
of
judgment
in
Anwar-ul-Haq’s
case
14.
It is to be noted that pending decision of Civil Petitions No.2763-
L/2004 and 2932-L/2004, impugned judgments passed in Writ Petitions
No.5198/2006, 23372/09, 11873/2010 and 19138/11 were challenged
by the departments whereas, Miss Zainab Iqbal Mian also assailed Writ
Petition No.19438/04 in this Court.
15.
It is necessary to note that initially under the policy
guidelines with regard to admission in the Medical Colleges in different
cities of Punjab, e.g., Lahore, Rawalpindi, Multan and Faislabad, a
uniform prospectus used to be issued allowing mostly the admission in
Medical Colleges on merit basis. The candidates, who were found
11
eligible on merit, were accommodated as per the policy. However,
there were certain other applicants/candidates like Anwar-ul-Haq, who
were of Pakistan origin holding foreign nationality, when could not
compete on merit, were left only with one option to apply on SFS
basis. Because they had accepted the term & conditions laid down in
the policy noted above, therefore, they were given admission.
Subsequent thereto, the condition to the extent of deposit of
endowment fund was changed and ultimately vide letter dated
03.02.2003, it was reduced as mentioned above but to the extent of
candidates/students who would seek admission in future and not for
the students who had already got admission.
16.
Learned counsel for the appellants-departments stated
that respondents-students are estopped to challenge the policy of
admission on self finance basis, as they themselves had accepted the
terms & conditions for the admission in 1st Year MBBS in Medical
College after failing to get admission on merits, as he/they were not
found eligible for not securing required marks.
17.
Learned
Additional
Advocate
General
was
not
in
attendance when case was heard; however, he has filed written
arguments, inter alia, relying upon the arguments, which have been
noted above.
18.
On the other hand learned counsel for the respondents-
students that both schemes noted hereinabove are confiscatory in
nature and discriminatory as well as in violation of their fundamental
rights enshrined in Article 9 read with Article 25 of the Constitution.
12
19.
We have heard the parties’ counsel, gone through the
material so made available on record and perused the leave granting
order dated 23.11.2005.
20.
Before dilating upon the arguments of the parties, it is
considered appropriate to note that educational institutions are
independent to follow policy for admission including affairs relating to
changing conditions for endowment funds or fee, either under the
policy given by the government or adopted by the college; and
interference in the policy by the Court is possible only in exceptional
circumstances. Reference may be made to the case of Chairman Joint
Admission Commission v. Raza Hassan (1999 SCMR 965) wherein it
was held that the universities in Pakistan enjoy complete freedom to
take decision in their own matters and interference by the Courts in
such matters would be the least desirable, except for exceptional
circumstances. In another case namely Mian Muhammad Afzal v.
Province of Punjab (2004 SCMR 1570) this Court declined to interfere
in the matter relating to the admission in the medical college, on the
ground that it was of administrative nature relating to policy. In the
case of Shazia Irshad Bokhari v. Government of Punjab (PLD 2005
Lahore 428), the learned Lahore High Court held that the Court, under
its Constitutional jurisdiction would not enter into policy making
domain of the State or question the wisdom of the legislature; it would
not normally interfere or strike down a policy made by the
Government unless the same was proved mala fide or made in a
colourable exercise of authority, etc. It was further held that the
classification in terms of equal treatment was legally permissible.
13
Reference may also be made the case of Waqas Zafar v. Baha-ud-Din
Zakriya University (2010 CLC 999).
21.
At this juncture it is to be observed that in respect of
foreign students and students of Pakistan origin two independent
policies have been followed by the Medical Colleges since the time
when respondents-students themselves applied for admission on Self
Finance Basis. Details of the seats reserved in different colleges for the
year 2002-2003 are as follows: -
Sr.
No.
Category
KEMC
NMC
QMC PMC
RMC AIMC FJMC
Total
1.
Open
Merit
Seats
171
159
159
159
159
169
135
1111
2.
Reserved
Seat
i).
Disabled
students
seats
1
2
2
2
2
2
1
12
ii).
Federally
Administere
d
Tribunal
Areas
(FATA)
seats
1
1
1
1
1
1
1
7
iii).
Azad
Jammu
&
Kashmir
and
Northern
Areas seats
-
4
4
4
4
-
12
28
iv).
Foreign
Students
Seats under
Technical
Assitance
Program
5
10
11
10
10
5
21
72
v).
Foreign
Students
Seats
on
Self Finance
basis
4
4
4
4
4
4
4
28
vi).
Reciprocal
Seats
2
3
2
2
2
2
2
15
vii)
Total seats
of
categories
(i to vi)
13
24
24
23
23
14
41
162
Total
184
183
183
182
18
2
183
176
1273
14
22.
With regard to the arguments of the learned counsel for
the respondents-students that the charging of fee/endowment funds at
higher rates from the students of SFS as compared to other students is
discriminatory as well as violative of Article 9 read with Article 25 of
the Constitution, it is to be noted that Article 25 provides that all
citizens are equal before law and are entitled to equal protection of
law, and that there shall be no discrimination on the basis of sex.
However, by now it is well settled that equality clause does not
prohibit classification for those differently circumstanced provided a
rational standard is laid down. The doctrine of reasonable
classification is founded on the assumption that the State has to
perform multifarious activities and deal with a vast number of
problems. The protection of Article 25 of the Constitution can be
denied in peculiar circumstances of the case on basis of reasonable
classification
founded
on
an
intelligible
differentia
which
distinguishes persons or things that are grouped together from
those who have been left out. The differentia, however, must have
rational nexus to the object sought to be achieved by such
classification. Reference in this behalf may be made to the case of
I.A. Sharwani v. Government of Pakistan (1991 SCMR 1041) wherein
the issue has been dealt with in detail. In the case of Tariq Aziz-ud-Din
and others (Human Rights cases Nos.834O of 2009, etc.) (2010 SCMR
130) it was held as under: -
22.
… … We are also conscious of the provision of Article 25
of the Constitution, which guarantees equality of citizens.
However, denying such protection in peculiar circumstances of
the case on basis of reasonable classification founded on an
intelligible differentia which distinguishes persons or things
that are grouped together from those who have been left out.
15
The differentia, however, must have rational nexus to the
object sought to be achieved by such classification [Dr.
Mobashir Hassan v. Federation of Pakistan and others PLD
2010 SC 265]. … …”
In the case of National Bank of Pakistan v. Nasim Arif Abbasi (2011
SCMR 446) this Court after relying upon I.A. Sharwani’s case (supra)
declined to grant relief on the ground that no discrimination prohibited
under Article 25 of the Constitution and a reasonable classification did
exist between the two categories of employees, i.e., those who had
exercised the option and those who had not exercised the option. In
the case of Dr. Shahnaz Wajid v. Federation of Pakistan (2011 SCMR
1737) same principle was reiterated in the following words: -
“5.
… … It is well settled by now that “equality clause does
not prohibit different laws for those differently circumstanced
provided a rational standard is laid down to guide the
discretion of the relevant Authority to choose the appropriate
law. A State may classify persons and objects for the purpose
of legislation and make laws applicable only to persons or
objects within a class. In fact almost all legislation involves
some kind of classification whereby some people acquire
rights or suffer disabilities which others do not. Expression
“equal protection of laws” does not place embargo on power
of State” to classify either in adoption of police laws, or tax
laws, or eminent domain laws” rather gives to state exercise
of wide scope of discretion, of course, nullifying “what is
without any reasonable basis”. The State has the power of
what is known as “classification” on the basis of rational
distinctions relevant to the particular subject dealt with.
Classification may be due to geographical situation or it may
be based on territorial, economic, communal and other similar
considerations. The Constitution itself contemplates passing of
different laws for different provinces by their respective
legislatures. The doctrine of reasonable classification is
founded on the assumption that the State has to perform
16
multifarious activities and deal with a vast number of
problems. It, therefore, should have the power to make a
reasonable classification of persons and things, to whom
different treatment may be accorded, provided there is
legitimate basis for such difference the State can make laws
to attain special objects, and the administrative authorities
may make classification, in pursuance of such laws. But the
classification should not be arbitrary and capricious and must
rest on reasonableness and have a fair nexus and a just
relation with the need for which classification is made”.
Ziaullah Khan v. Government of Punjab (PLD 1989 Lah. 554),
Akram Khan v. State (PLD 1976 Lah. 1224), Fauji Foundation
v. Shamimur Rehman (PLD 1983 SC 457), I.A. Sharwani v.
Government of Pakistan (1991 SCMR 1041), Aziz Begum v.
Federation of Pakistan (PLD 1990 SC 899), Balochistan Bar
Association v. Government of Balochistan (PLD 1991 Quetta
7), Kathi Raning v. State of Saurashtra (AIR 1952 SC 123),
Dhirendra v. Supdt. and Remembr (AIR 1954 SC 424), Zain
Noorani v. Secretary of National Assembly (PLD 1957 Kar. 1),
Government of Punjab v. Naila Begum (PLD 1987 Lah.
336), Charanjit Lal v. Union of India (AIR 1951 SC 41),
State of West Bengal v. Anwar Ali (AIR 1952 SC 75), Rehman
Shagoo v. State of J&K (1958 Cri L Jour 885), TK Abraham v.
State of Tra. Co. (AIR 1958 Ker. 129), PLR 1957 (1) 743).
In the case of N.W.F.P. Public Service Commission v. Muhammad Arif
(2011 SCMR 848) the Court held as under: -
“8. In view of what has been discussed hereinabove it can be
inferred safely that reasonable classification which is not
arbitrary or violative of doctrine of equality cannot be
questioned. We are not impressed by the contention made by
the learned Advocate Supreme Court on behalf of respondents
that it is a case of sheer discrimination because discrimination
means “making a distinction or difference between things; a
distinction; a difference; a distinguishing mark or characteristic;
the power of observing differences accurately, or of making
exact distinctions; discernment. But discrimination against a
group or an individual implies making an adverse distinction
17
with
regard
to
some
benefit,
advantage
or
facility.
Discrimination thus involves an element of unfavourbale bias
and it is in that sense that the expression has to be understood
in this context [Shirin Munir v. Government of Punjab (PLD 1990
SC 295), Pakcom Limited v. Federation of Pakistan (PLD 2011
SC 44)]. The learned Advocate Supreme Court has failed to
point out any unfavourable bias which is an essential ingredient
of discrimination and it is not understandable that how it can be
pressed in to service.”
Reference in this behalf may also be made to the case of Safdar Jamil
v. Vice-Chancellor (2011 CLC 116), wherein a division Bench of Lahore
High Court held that equality of citizens, provided in Article 25 of the
Constitution meant equal treatment amongst persons, who are equally
placed and reasonable classification in terms of equal treatment is
legally permissible. The students obtaining less marks as compared to
the students who succeeded in getting admission on open merit, were
not similarly situated or placed and differential treatment was justified.
Relevant para therefrom reads as under: -
“9. We do not agree with the argument of the learned counsel
for the petitioners that the Self-Finance Scheme was violative
of the fundamental rights, enshrined in the Constitution of
Islamic Republic of Pakistan, 1973, as equality of the citizens,
provided in Article 25 of the Constitution of Islamic Republic of
Pakistan, 1973, means equal treatment amongst persons,
who are equally placed and reasonable classification in terms
of equal treatment is legally permissible. In this connection, a
reference could be made to the case of I.A. Sharwani and
others v. Government of Pakistan through Secretary Finance
Division, Islamabad and others (1991 SCMR 1041), wherein,
it has been held that Clause (1) of Article 25 of the
Constitution of Islamic Republic of Pakistan, 1973 does not
prohibit the State to treat citizens on the basis of reasonable
classification. A classification would be considered reasonable,
if it is based on an intelligible differentia, which distinguishes
18
persons or things that are grouped together from those, who
have been left out. The conditions, prerequisites for seeking
protection of Article 25 of the Constitution of Islamic Republic
of Pakistan, 1973, have also been discussed in the judgments
reported in the cases of Messrs Gadoon Textile Mills and 814
others v. WAPDA and others (1997 SCMR 641), Muhammad
Ramzan and 3 others v. Government of Pakistan through
Secretary Ministry of Law, justice and Parliamentary Affairs,
Pakistan Secretarial, Islamabad and 3 others (2004 YLR
1856), Shehzad Riaz v. Federation of Pakistan through
Secretary Cabinet Division and 3 others (2006 YLR 229),
Government of the Punjab. through Chief Secretary, Punjab,
Lahore v. Naseer Ahmad Khan through L.Rs. and others (2010
SCMR 431) Tariq Aziz-ud-Din and others in re Human Rights
cases Nos.834O, 9504-G, 13936-G, 13635-P 14306-G to
143309-G 4.2009 (2010 SCMR 130) and Dr. Mobashir Hassan
and others v. Federation of Pakistan and others (PLD 2010 SC
265). … …”
Thus, it is held that the classification between the students, who
secured more marks and succeeded in getting admission on open
merit and the students, who, after failing to get admission on open
merit, opted to get the benefit of Self Finance Scheme, is based on an
intelligible differentia as such reasonable. Therefore, students who
opted to apply for admission on Self Finance basis, after being failed to
get admission on open merit, can not claim the protection of Article 25
of the Constitution as they are neither similarly placed nor such
classification is unreasonable.
23.
It is to be noted that the doctrine of ‘estoppel’ means a
disability whereby a party is precluded from alleging or proving in legal
proceedings that a fact is otherwise than it has been made to appear
by the matter giving rise to that disability. Even as a rule of evidence
19
or pleading a party should not be allowed to approbate and reprobate.
Reference in this behalf may be made to the case of Haji Ghulam
Rasool v. The Chief Administrator of Auqaf (PLD 1971 SC 376) wherein
it was held as under; -
“The doctrine of estoppel is not confined to the matters deal
with under section 115 of the Evidence Act, for, as pointed out
by Garth, C. J. in the case of Ganges Manufacturing Co. v.
Sourajmull (I L R 5 Cal. 669) “estoppels in the sense in which
the term is used in the English legal phraseology are matters of
infinite variety and are by no means confined to the subjects
dealt within Chapter VIII of the Evidence Act”. It has been
defined in Salsbury's Laws of England (2nd Edn.), Vol. 13, “as a
disability whereby a party is precluded from alleging or proving
in legal proceedings that a fact is otherwise than it has been
made to appear by the matter giving rise to that disability”. It is
in this sense that it has often been held that even as a rule of
evidence or pleading a party should not be allowed to approbate
and reprobate. This principle was acted upon by the Judicial
Committee in the case of Lakshmana Goundan v. Subramania
Aiyar (AIR 1924 PC 44) where it was held that if a person had
“held out and represented to the Hindu public that the temple
was a public temple” he cannot resile from that position.
Similarly in the case of Jai Dayal v. Dewan Ram Sarn Das (A I R
1938 Lah.686) the Lahore High Court also held that “where a
person with full knowledge of the facts in unmistakable terms
admitted the wakf nature of a house, he cannot subsequently be
allowed to resile from that position”.”
In the case of M/s Gadoon Textile v. WAPDA (1997 S C M R 641) it
was held that if on the basis of representation made one party, any
other party, acting bona fide, legally enters into any transaction,
contract or deal which gives rise to rights and liabilities enforceable at
law, then a vested right is created and the benefits or concessions
arising from the representation made cannot be withdrawn. In the
case of Pakistan v. Fecto Belarus Tractors Ltd. (PLD 2002 SC 208) it
20
was held that true principle of promissory estoppel seems to be that
where one party has by his words or conduct made to the other a clear
and unequivocal promise which is intended to create legal relations or
effect a legal relationship to arise in future, knowing or intending that
it would be acted upon by the other party to whom the promise is
made and it is in fact so acted upon by the other party, the promise
would be binding on the party making it and he would not be entitled
to go back upon the same, if it would be inequitable to allow him to do
so having regard to the dealings which have taken place between the
parties and this would be so irrespective of whether there is any pre-
existing relationship between the parties or not. In the case of
Muhammad Zubair v. Government of Pakistan (2012 CLC 1071) a
division Bench of learned Lahore High Court held that the students
appeared in the Entry Test in terms of the merit/weightage criteria
publicized by the competent authority without challenging it and
when they could not perform well in the entry test, they filed the
writ petitions apprehending that they would be ousted on the basis
of the entry tests, therefore, they were estopped by their own
conduct to challenge the vires of the weightage criteria or merit on
the settled principle of estoppel and waiver. The equality is only
possible amongst the persons who are placed in same set of
circumstances. In Yahya Gulzar v. Province of Punjab (2001 CLC 9) it
was held that candidate who had not challenged the vires of
prospectus before appearing in the entry test for admission was
estopped to file Constitutional petition against the entry test on the
principle of estoppel and waiver as per principle laid down by the
Honourable Supreme Court in Ghulam Rasool’s case (PLD 1971 SC
21
376). In the case of Turner Morrison & Co. v. Hungerford Investment
Trust Ltd. (AIR 1972 SC 1311) the Indian Supreme Court held that
“estoppel is a rule of equity. That rule has gained new dimensions in
recent years. A new class of estoppel i.e. promissory estoppel has
come to be recognised by the courts in this country as well as in
England.”
24.
Thus, we are in agreement with the learned Additional
Advocate General that under the doctrine of ‘promissory estoppel’ the
respondents-students are estopped to challenge their contribution of
US$ 10,000 in endowment fund, in terms of article 114 of the Qanun-
e-Shahadat Order, 1984, as they themselves accepted the terms and
conditions of admission policy while getting admission on SFS basis.
25.
As far as the different fee structure for foreign students
admitted under SFS in different colleges of Punjab is concerned, it is to
be noted that every college has its own study atmosphere due to
different facilities available therein, which also vary from city to city.
Further, the expenditures and cost of education also change in various
cities. Thus, a uniform policy to contribute towards endowment fund
can not be prescribed by the government of Punjab or by College
Administration situated in different cities. The finding of the learned
High Court directing the authorities to charge from all students a
uniform rate of US $5000 per annum, irrespective of the colleges,
being unwarranted in view of the above discussion is not sustainable in
law and the Constitution.
26.
For the foregoing reasons, the CA No.2234 of 2005, CP
No.1587-L & 1588-L of 2010 filed by the department (Secretary
22
Economic
Division;
Secretary
Government
of
Punjab
Health
Department etc.) are allowed. Whereas, CA No.2235 of 2005 and CA
No.61 of 2006 filed by the students are dismissed.
27.
As far as CP No.445-L & 454 of 2012 CP are concerned,
these are barred by time and also have become infructuous in view of
allowing relief to other appellants in appeals noted hereinabove.
No order as to cost.
Chief Justice
Judge
Judge
Announced in open Court on_31.07.2013
At Islamabad,
Chief Justice
Nisar/*
Approved For Reporting
| {
"id": "C.A.2234_2005.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
Present
Mr. Justice Iftikhar Muhammad Chaudhry
Mr. Justice Rana Bhagwandas
Mr. Justice Syed Deedar Hussain Shah
Mr. Justice Hamid Ali Mirza
Mr. Justice Sardar Muhammad Raza Khan
Mr. Justice Faqir Muhammad Khokhar
Mr. Justice Tassadduq Hussain Jillani
CIVIL APPEALS No. 224 TO 227 OF 2003 &
CONSTITUTION PETITION No. 18 OF 2004
A/W C.M.As.No. 1383, 2376 & 2604 OF 2004.
(On appeal from the judgments/orders dated
19.04.01, 10.12.02 and 20.01.03 passed by Lahore
High Court Lahore in Writ Petitions No. 660/2000,
19239/02, 2418/01 & 692/03)
CA No. 224/2003 & CMA No. 2604/04.
Arshad Mehmood & others.
…
…
Appellants.
Versus
The Government of Punjab
through Secretary, Transport
Civil Secretariat, Lahore & others.
…
…
Respondents.
For the appellants
:
Mr. Muhammad Akram Sheikh Sr. ASC.
Mr. M. A. Zaidi, AOR.
For the respondents.
:
Syed Shabbar Raza Rizvi AG(Punjab)
a/w Mrs. Afshan Ghazanfar AAG Punjab.
Mr. Maqbool Illahi Malik Sr. ASC.
For the applicant
:
Ch: Muhammad Anwar Khan, AOR/ASC
(in CMA No. 2604/04)
CA No. 225 OF 2003.
Muhammad Younas, etc.
…
…
Appellants.
Versus
Government of Punjab etc.
…
…
Respondents.
For the appellants.
:
Mr.A. K. Dogar Sr. ASC.
For the respondents.
:
Syed Shabbar Raza Rizvi AG (Pb.)
a/w Mrs. Afshan Ghazanfar AAG(Pb).
Syed Ali Zafar ASC
Ch. Muhammad Akram AOR.
CA.224 of 2003, etc.
2
CA No. 226 OF 2003.
Malik Asghar, etc.
…
…
Appellants.
Versus
Government of Punjab etc.
…
…
Respondents.
For the appellants.
:
Mr. Nasir Saeed Sheikh Sr. ASC.
For the respondents.
:
Syed Shabbar Raza Rizvi AG (Pb.)
a/w Mrs. Afshan Ghazanfar AAG(Pb).
Mr. Aftab Gul, ASC.
Mr. Arshad Ali Ch: AOR.
CA No. 227/2003 & CMA No. 1383/2004.
Mukhtar Ahmed & others.
…
…
Appellants.
Versus.
Secretary District Regional
Transport Authority, Faisalabad.
…
…
Respondents.
For the appellants/
:
Mr.Tariq Mehmood ASC.
Applicants
Maher Khan Malik, AOR.
For the respondents.
:
Syed Shabbar Raza Rizvi AG (Pb.)
a/w Mrs. Afshan Ghazanfar AAG(Pb).
Ch: Muhammad Akram AOR.
CONST. PETITION NO. 18/2004.
Javed Akhtar & others.
…
…
Petitioners.
Versus.
Province of Punjab & others.
…
…
Respondents.
For the petitioners.
:
Mr. Habib-ul-Wahab-ul- Khairi Sr. ASC.
Maher Khan Malik, AOR.
For the respondents.
:
NR.
CIVIL MISC. APPLICATION NO. 2370 OF 2004
Mukhtar Ahmed & others.
…
…
Appellants.
Versus.
Secretary District Regional
Transport Authority, Faisalabad.
…
…
Respondents.
For the applicant
:
Nemo.
For the respondents
:
Syed Shabbar Raza Rizvi AG (Pb.)
a/w Mrs. Afshan Ghazanfar AAG(Pb).
Ch: Muhammad Akram AOR.
Dates of hearing.
:
25.10.2004 to 29.10.2004.
…………………
CA.224 of 2003, etc.
3
JUDGMENT
IFTIKHAR MUHAMMAD CHAUDHRY, J. – In above noted
appeals, judgments of the Lahore High Court, Lahore, details whereof are
mentioned in above title, have been challenged in pursuance whereof
Section 69-A of the West Pakistan Motor Vehicles Ordinance 1965 [herein
after referred to as ‘the Ordinance’] as amended by the Province of Punjab
has been held valid piece of legislation.
2.
Listed petition under Article 184(3) of the Constitution of Islamic
Republic of Pakistan [herein after referred to as ‘the Constitution’] has
been filed by invoking original jurisdiction of this Court to challenge
Section 69-A of the Ordinance, independently. Whereas Civil Misc.
Applications No. 1383/2004 and 2604/2004 have been moved by the
Transports who got the franchise rights with regard to route permits
mentioned therein.
3.
As common question of law and facts have been raised in these
matters, therefore, they are being disposed of by means of instant judgment.
4.
Facts of each case need not be narrated in details as common
question raised in all of them is whether Section 69-A of the Ordinance,
inserted by the Government of Punjab is contrary to the fundamental rights
of the appellants, enshrined in Article 18 of the Constitution because in
pursuance thereof, appellants have been restrained/ousted completely from
the trade/ business of transport, which they were carrying on against valid
route permits issued by competent authority under the provisions of the
Ordinance for the last many years and in which for it they had made huge
investment for purchase of vehicles i.e. wagons, suzukies, etc. The franchise
of routes on which they were plying their stage carriages have been given
to the private respondents in pursuance of the scheme of Section 69-A of
the Ordinance. Thus feeling dissatisfied by the grant of franchise to private
CA.224 of 2003, etc.
4
respondents, appellants preferred Constitutional Petitions under Article
199 of the Constitution, before the Lahore High Court, Lahore, questioning
validity of Section 69-A of the Ordinance being unconstitutional, void,
unlawful and of no legal effect being violative of Article 18 of the
Constitution, which guarantees right of freedom of trade, business or
profession to the citizens. A learned Division Bench of the High Court
pronounced its judgment in W.P. No.9436 of 2000 on 1st February 2001,
declaring Section 69-A of the Ordinance intra vires of the Constitution. In
another Writ Petition No.660 of 2000, instituted by appellants (impugned in
Civil Appeal 224 of 2003), a learned Division Bench of High Court
dismissed it on 19th April 2001 in view of earlier judgment referred to
above. Later on, a larger bench, in Writ Petition No.19239 of 2002
alongwith other petitions, examined vires of Section 69-A of the Ordinance
and declared it intra vires of the Constitution vide judgment dated 10th
December 2002 (impugned in Civil Appeal No.225 of 2003). Subsequent
thereto, another Division Bench of the High Court in view of the judgment
of the full bench, dismissed another Writ Petition No. 692 of 2003 in limine,
which has been challenged in Civil Appeal No. 227 of 2003. It may be
noted that in this case, respondent M/s Manthar Metro General Bus stand,
a franchise holder, was not impleaded as party, therefore, Civil Misc.
Application No. 1383 of 2004 was filed on its behalf for impleadment as
party, which was allowed. Similarly, M/s Bashir & Sons, transporters/
operators of franchised Bus Service in Faisalabad also moved an
application for impleadment as party, which has been allowed and learned
counsel permitted to argue the case. Similarly, M/s Baloch Transport
Company Ltd. also filed Civil Misc. Application No.2376 of 2004 to join as
party in the above appeals but no one has appeared on their behalf to plead
their application. Constitution Petition No. 18 of 2004 has been filed under
CA.224 of 2003, etc.
5
Article 184 (3) on behalf of members of the general public, who have to
travel in stage carriages as passengers. Their grievance is also against the
promulgation of Section 69-A of the Ordinance as according to them, their
right of movement cannot be limited by compelling them to undertake
journey in the transport owned by private respondents because they have
obtained franchise rights and are charging exorbitant fare compared to
other transporters who used to ply buses on the same route, and if
competition is allowed, they will charge less fare from them, as such
citizens, having limited resources of income are not bound to pay fare to
respondents transporters at high rates.
5.
The conclusions drawn by learned High Court in the impugned
judgments are as under:-
i)
The right guaranteed through Article 18 of the
Constitution, pertaining to freedom of trade, is
not absolute in terms and it is subject to
reasonable restriction, which can be imposed
by law, which is a clog on the fundamental
rights.
ii)
A citizen under Article 18 of the Constitution
could
enter
upon
a
lawful
profession,
occupation and trade/business which is to be
regulated by a licencing system under the
supervision and control of the Government.
iii)
The Monopolies and Restrictive Trade
Practices (Control and Prevention) Ordinance
V of 1970 is not absolute in command as
Section
5(2)
permits
even
apparently
monopolistic steps in the contribution towards
financial or promotion of public interest or the
benefit arising out of said steps would outweigh
the said competition or lessening the
competition.
CA.224 of 2003, etc.
6
iv)
The obvious object and purpose of the
provisions of Section 69-A of the Ordinance is
to rid the commuting public of hazardous,
dangerous, unreliable and undignified means of
transport and also to lessen the congestion on
roads by introducing large occupancy vehicles
instead of low occupancy wagons, etc.
v)
The appellants/petitioners are not being thrown
out of business because according to the
Government, they have been offered alternative
routes in same city.
vi)
The power to regulate a trade/business
necessarily includes the power to prohibit
business while regulating the same.
vii)
By enacting Section 69-A of the Ordinance,
which is a regulatory provision, Article 18 of
the Constitution has not been violated because
while examining the vires of a statute, it is
always presumed that the legislature would not
flout the Constitutional provision and all efforts
have to be made to lean in favour of the
constitutionality of the law in order to save it
rather than to destroy it.
viii)
The Government of Punjab and Secretary,
Regional Transport Authority, while granting
franchise to the specific routes to the
respondents in exercise of powers under Section
69-A of the Ordinance, have conducted
proceedings in a transparent manner as open
tenders were invited from the interested
transporters to secure franchise on the specific
routes, therefore, no monopoly has been
created in favour of the respondents by the
Government.
CA.224 of 2003, etc.
7
6.
Leave to appeal was granted to examine the following questions:-
(a)
“Whether the insertion of Section 69-A in
Punjab Motor Vehicles Ordinance 1965 by
virtue of Punjab Ordinance No. XLVI of 1999 is
in the public interest and is not violative of the
constitutional guarantee of right of trade and
business under Article 18 of the Constitution of
Islamic Republic of Pakistan, 1973 and is in
consonance with the provisions of Monopolies
and Restrictive Trade Practices (Control and
Prevention) Ordinance No. V of 1970.
(b)
The addition of Section 69-A in the Punjab
Motor Vehicles Ordinance 1965 would not
amount to protect and promote the vested
interest of a specific class by depriving large
number of people associated with the transport
business of their legitimate right of earning and
they have not been denied the equal and fair
opportunity of right of business as provided
under the Constitution of Islamic Republic of
Pakistan, 1973.
(c)
The exclusion of wagons and mini bus owners
from transport business under franchise routes
scheme is not a departure to the policy of
constitution of free competition and would not
amount to take away the right of people from
using the vehicle of their own choice as means of
transport and compel them to travel through the
franchise transport.
(d)
The imposing of unreasonable restriction on the
free trade and business is not a social and
economic exploitation as provided in Article 3 of
the Constitution of Islamic Republic of Pakistan,
1973.
e)
The provision of Section 69-A ibid for exclusion
of wagons and mini buses as stage carriages
from the franchise routes in the private sector is
not a discriminatory law and the distinction
created is based on reasonable classification.”
CA.224 of 2003, etc.
8
7.
Learned counsel appearing for appellants argued against the
constitutionality of Section 69-A of the Ordinance from different aspects but
essentially it being contrary to Article 18 of the Constitution is liable to be
declared void in terms of Article 8 of the Constitution.
8.
Conversely, learned counsel for respondents as well as Advocate
General of Punjab stated that the provision of Section 69-A of the
Ordinance, is not contrary to any fundamental right, therefore, it cannot be
declared to be void as well as invalid under Article 8 of the Constitution
and the learned Division Bench of the High Court as well as the Full Bench
vide impugned judgments had thoroughly examined its vires in the light of
the precedent law, referred to therein, as such it must be saved in the public
interest because it has advanced/promoted the cause of general public
interest.
9.
Mr. A. K. Dogar, learned ASC contended that monopoly in trade and
business by grant of franchise is against Article 18 proviso (b) of the
Constitution which guarantees the regulation of the trade, commerce or
industry in the interest of public, subject to competition. He further
explained that except the Federal or Provincial Government or by a
corporation controlled by such Government under Article 18 proviso (c) of
the Constitution no private person can be allowed to monopolize a trade or
business and as franchise routes have been given to the private respondents
under Section 69-A of Ordinance therefore, it is liable to be struck down on
this score alone. To substantiate his plea he relied upon “Grammar of
Politics” by Harold J. Allasky 5th Edition (page 175) and referred to its
following para:-
“men may begin to acquire property to safeguard their
lives from want but they continued to acquire it because
of the distinction which comes from its possession. It
CA.224 of 2003, etc.
9
satisfies their vanity and their lust for power. It enables
them to attune well of society to their own”.
Learned counsel further contended that the respondents on account
of their resources, influence and contacts have exploited the appellants’
rights as they were not in a position to arrange the buses having capacity
of 70 seats or more than it, due to their poor financial conditions. On the
other hand the respondents have not only been obliged by granting
franchise of specified routes to them, according to their choice, the Banks
had also provided them fabulous loans of 70% against their equity of 30%
for purchase of stage carriages. Therefore, in this manner, Provincial
Government has also violated Article 3 of the Constitution as well,
according to which the State is responsible to ensure the elimination of all
forms of exploitation and the gradual fulfillment of the fundamental
principle from each according to his ability to each according to his work.
Similarly, appellants have also been deprived of their right to life as
they are not in a position to earn their livelihood, therefore, the security
which has been provided to them under Article 9 of the Constitution has
been denied to them as held in Administrator Market Committee, Kasur
v. Muhammad Sharif (PLD 1994 SC1048).
It is further contended by him that as per the objective resolution,
which is now a part of the Constitution i.e. Article 2-A , it is the duty of the
State to provide social, economic and political justice to all its citizens and
to achieve the object. It is the duty of the Government to frame such
policies which ensure promotion of social and economic well being of the
people as required by provisions of Article 38 of the Constitution, but in the
instant case the Government of Punjab by inserting Section 69-A has not
only denied certain Constitutional rights to the appellants but has also
discriminated them in violation of Article 25 of the Constitution.
CA.224 of 2003, etc.
10
10.
Mr. Muhammad Akram Sheikh, learned counsel contended that the
action of Punjab Government, by excluding the appellants from the trade of
transport, without cancelling the route permits granted to them under
Section 62 of the Ordinance, tantamounts to forfeiture of their property
contrary to the Constitutional protection under Article 24.
The provisions of Section 69-A of the Ordinance are confiscatory in
nature because of execution of agreement between the franchise holders
and Government all route permits possessed by the appellants have been
virtually cancelled. Moreover, abovesaid provisions being against the
principles of natural justice, i.e. audi alteram partem in derogative of the
spirit of Articles 2-A and 18 of the Constitution and violative of the
principles of State policy deserve to be struck down.
He further contended that the High Court without recording
evidence has made adverse observations against the appellants namely that
Section 69-A of the Ordinance has been promulgated to rid the commuting
public of hazardous traffic, unreliable and undignified means of transport
etc. He stated that if at all the High Court wanted to determine the factual
aspects of the case it should have embarked upon an inquiry and on the
basis of the same ought to have recorded a finding merely on the basis of
conjectural and capricious reasons the judgments are not sustainable.
He was also of the opinion that the Government by enacting Section
69-A of the Ordinance has created monopoly in favour of the private
respondents contrary to the Constitution. In support of his arguments he
has relied upon Saghir Ahmed Vs. The State of UP & others (AIR 1954
SC 728).
11.
Mr. Nasir Saeed Sheikh ASC, in his arguments mostly highlighted on
factual side of the case which would be discussed at later stage, if need be.
CA.224 of 2003, etc.
11
12.
Mr. Habib-ul-Wahab-ul-Khairi ASC, contended that Section 69-A is
contrary to the Article 18 of the Constitution, and the petitioners on whose
behalf he is appearing being the passengers cannot be compelled to travel
in a transport of respondents, who got franchise for specified routes and
are charging exorbitant fare than ordinary fare, meant for same journey,
without any legal justification.
13.
Syed Ali Zafar, learned ASC contended that proviso (a), (b) and (c)
of Article 18 of the Constitution are disjunctive from each other, therefore,
are to be interpreted independently. As per proviso (b) of Article 18 of the
Constitution, the Government is authorized to regulate the trade, commerce
or industry, being fully aware that there could be traders who would be
interested to obtain franchise of a particular trade, subject to competition
amongst equals, who are placed under same conditions, as such
introduction of “franchise system” is not prohibited under this clause, as
argued by the learned counsel for appellants. Therefore, for such reason,
Government of Punjab by enacting Section 69-A of the Ordinance, had not
violated Article 18 of the Constitution in any manner. He further contended
that Section 69-A of the Ordinance was made as a general law, not for any
particular person and, therefore, its validity has to be examined as a free
standing law. According to him under Section 69-A of the Ordinance the
Government is authorized either to put up franchise of particular routes or
all the routes, therefore, invitations were given to the persons interested in
obtaining franchise of all the existing routes by inviting open tenders, from
time to time and whosoever was found suitable in competition, was
declared entitled without any discrimination. Nor it could be argued that
Section 69-A of the Ordinance had monopolized the trade of transport,
against the provisions of Monopolies and Restrictive Trade Practices
(Control and Prevention) Ordinance V of 1970 [herein after referred to as
CA.224 of 2003, etc.
12
“the Ordinance, 1970], thus attaching malafides to the conduct of the
Government is not fair. It is also contended by him that appellants are not
debarred from doing business as transporters on the same routes, provided
they fulfill the conditions laid down for obtaining franchise rights under
Section 69-A of the Ordinance and their objection that they are being
thrown out of business of transport is misconceived. Thus no case of
violation of Article 25 of the Constitution is made out as well. He also
argued that proviso (a) of Article 18 of the Constitution stipulates that if a
person does not qualify for the business, he is prohibited from doing it
under the licencing system and in pursuance of these provisions, the
Government has laid down a policy with certain qualifications to control
traffic hazards and for the welfare of the people. Appellants who do not
fulfill such qualifications, could not be heard to say that their fundamental
right under Article 18 of the Constitution has been denied, because it is
always subject to law.
14.
Mr. Aftab Gul, ASC has adopted the arguments put forward by Syed
Ali Zafar, ASC and also highlighted the factual aspects of the case to
counter the arguments advanced by Mr. Nasir Saeed Sheikh, ASC. These
factual aspects of the case will be considered at a later stage, if need be.
15.
Mr. Tariq Mehmood, ASC adopted the arguments of Syed Ali Zafar,
ASC and also added that respondents got franchise in an open competition
because the appellants did not compete for the same, therefore, they are
estopped from agitating against the promulgation of Section 69-A of the
Ordinance. He further stated that Courts are not required to examine the
vires of Section 69-A of the Ordinance as they have no powers to question
the wisdom of the legislature, who have framed law in pursuance of policy
of the Government. According to him, if at all a monopoly has been created
by granting franchise to respondents on specified routes, they have an
CA.224 of 2003, etc.
13
alternate remedy available to approach the competent forum for redressal
of their grievance, in stead of invoking the constitutional jurisdiction of the
High Court as well as of this Court.
16.
Syed Shabbar Raza Rizvi, learned Advocate General Punjab
contended that under Article 18 of the Constitution, a citizen shall have a
right to enter upon any lawful profession subject to law, therefore, no
absolute right has been conferred upon the appellants, as such provisions
of Section 69-A of the Ordinance cannot be questioned, being contrary to
Article 18 of the Constitution and, according to him, it has been enacted
lawfully. He was also of the opinion that under Section 5(2) and 6(2) of the
Ordinance, 1970, the Government is empowered/ competent to promulgate
the law, authorizing a selected party to run the business to the exclusion of
the others. Lastly he adopted the arguments of the learned counsel who
appeared on behalf of the respondents/interveners.
17.
As the arguments put forward on behalf of the appellants’ counsel
call for examination of the constitutionality of Section 69-A of the
Ordinance, being allegedly against their fundamental rights, guaranteed
under Article 18 of the Constitution, therefore, same is reproduced herein
below for convenience:-
“18. Freedom of trade, business or profession:-
Subject to such qualifications, if any, as may be
prescribed by law, every citizen shall have the right
to enter upon any lawful profession or occupation,
and to conduct any lawful trade or business:
Provided that nothing in this Article shall
prevent—
(a)
the regulation of any trade or profession
by a licensing system; or
(b)
the regulation of trade, commerce or
industry
in
the
interest
of
free
competition therein; or
CA.224 of 2003, etc.
14
(c)
the carrying on, by the Federal
Government
or
a
Provincial
Government,
or
by
a
corporation
controlled by any such Government, of
any trade, business, industry or service,
to the exclusion, complete or partial, of
other persons.”
It may be noted that appellants have sought declaration that Section 69-A
of the Ordinance is ultra vires of above provisions of the Constitution, on
the touchstone of Article 8 of the Constitution, scheme of which is that any
law, custom or usage, having the force of law in so far as it is inconsistent
with the rights conferred by this chapter shall, to the extent of such
inconsistency, be void and the State shall not make any law which takes
away or abridges the right so conferred and any law made in contravention
of Sub-Article (2) of Article 8 shall, to the extent of such inconsistency, be
void.
It is to be born in mind that this Court has held that the Constitution
is a living document which portrays the aspiration and genius of the people
and aims at creating progress, peace, welfare, amity among the citizens,
and the nations abroad. It is the basic structure on which the entire edifice
is built, therefore, it has to be interpreted in a manner to keep it alive and
blossom under all circumstances and in every situation. See Government of
Balochistan through Additional Chief Secretary v. Azizullah Memon
and 16 others (PLD 1993 SC 341).
Likewise in the case of M/s Illahi Cotton Mills and others v.
Federation of Pakistan and another (PLD 1997 SC 582) important
principles of law have been highlighted keeping in view the earlier case law
and treatises namely that “while interpreting Constitutional provisions
Courts should keep in mind, social setting of the country, growing
requirements of the society/nation burning problems of the day and the
complex issues facing by the people, which the Legislature in its wisdom
CA.224 of 2003, etc.
15
through legislation seeks to solve. The judicial approach should be
dynamic rather than static, pragmatic and not pedantic and elastic rather
than rigid.
18.
In the Province of Punjab, in order to provide facility of high
standard transport to the citizens/general public, licencing system has been
made applicable under the provisions of the Ordinance and the rules
framed thereunder. As per its Section 48 an applicant not being a
Government servant having any financial interest in the stage carriage
(vehicles) either directly or indirectly is eligible to apply for a route or
routes of the area within which he intends to operate the vehicle for a
permit. It is significant to point out that under Section 2 (37) of the
Ordinance “stage carriage”, means a motor vehicle carrying or adapted
to carry more than six persons excluding the driver which carries
passengers for hire or reward at a separate fares paid by or for individual
passengers, either for the whole journey or for stages of the journey”. On
receipt of the application for grant of permit of the stage carriage the
Regional Transport Authority after processing the same is competent to
grant the route permit subject to the conditions to be attached thereto under
Sections 50, 58 and 61 etc of the Ordinance . The Transport Authority also
retains powers, under Section 62, for cancellation or suspension of the
route permit.
19.
In the instant case, appellants being the valid permit holders were
plying their stage carriages in different cities of the Province of Punjab
including Rawalpindi, Lahore, Faisalabad etc when vide Ordinance XXXV
of 1998 dated 9th December 1998 Section 69-A was inserted in the
Ordinance by the Government of Punjab and it was kept alive by issuing
successive Ordinances as it could not be laid before Provincial Assembly,
as per the mandate of Article 128 of the Constitution, when on 14th day of
CA.224 of 2003, etc.
16
October 1999 National and Provincial Assemblies were suspended due to
military take over, therefore, under Laws Continuation in Force Order
1999, it remained operative and subsequent thereto has been saved under
Article 270-AA of the Constitution. Section 69-A of the Ordinance, reads as
under thus :-
“69-A. Franchise.—(1) The provisions of this Section
shall have effect notwithstanding anything contained in
this Ordinance.
(2)
In this Section “franchise” means a permit
granted to an operator for operation of stage carriages
with a carrying capacity of 70 or more passengers by a
Bus Service providing and maintaining the prescribed
facilities on routes in respect of which it is declared by
the Government that only a Bus Service of the nature
referred to above shall be allowed to operate stage
carriages thereon to the exclusion of other stage
carriages.
(3)
The Government may direct the Regional
Transport Authority to grant a franchise.
(4)
Where the Regional Transport Authority grants
a franchise under sub-section (3) all existing stage
carriage permits in respect of routes or a route or a
portion of a route to which the franchise relates shall
stand cancelled on the date notified for the purpose by
the Regional Transport Authority concerned and the
Regional Transport Authority may not grant fresh stage
carriage permits for such routes or a route or a portion
of a route for duration of the franchise.
(5)
The provisions of 60 shall not apply to a
franchise.
(6)
In the case of stage carriages in relation to
which a franchise is granted the power to fix maximum
fares shall vest in the Regional Transport Authority.
(7)
(a)
The
Regional
Transport
Authority
concerned may cancel a franchise, or may suspend a
franchise for such period as it deems fit:-
(i)
for the breach of any condition
attached to the franchise or of
any condition or on any ground
contained in the prescribed
franchise Agreement; or
CA.224 of 2003, etc.
17
(ii)
on any other ground mentioned
in Section 62:
Provided that no franchise shall
be
cancelled
or
suspended
unless
the
holder
of
the
franchise has been given an
opportunity of being heard.
Provided
further
that
the
Regional Transport Authority
may after such hearing, rather
than cancel or suspend the
franchise, vary the terms and
conditions thereof.
(b)
Where a franchise is cancelled or
suspended or the terms and conditions thereof
are varied, the Regional Transport Authority
shall record in writing the reasons for such
cancellation or suspension, or variations and
shall deliver a copy thereof to the holder of the
franchise.
(c)
On cancellation of a franchise, the
holder of the franchise shall, unless the Regional
Transport Authority in the order of cancellation
directs to the contrary, be entitled to refund to
the franchise fee for the unutilized portion of the
franchise period.
(8)
Refusal to transfer a franchise or revise fares on
routes to which a franchise relates shall be appealable
under section 62.
(9)
A franchise shall not be transferable in any
manner whatsoever except with the prior permission in
writing of the Regional Transport Authority and subject
to such conditions as may be stipulated in this behalf.
(10)
Notwithstanding anything contained in Chapter
VIII of the Motor Vehicles Act, 1939 (IV of 1939) the
Regional Transport Authority may attach to a franchise
such conditions relating to insurances as it may deem fit.
(11)
Save in so far as provided otherwise in this
section the provisions of this Ordinance or any other law
relating to Motor Vehicles shall apply mutatis mutandis
to a franchise.
(12)
all actions taken by the Government for
introducing the franchise system before the coming into
CA.224 of 2003, etc.
18
force of this Ordinance shall be deemed to have been
validly taken.”
20.
Perusal of Section 69-A of the Ordinance reveals that it has
introduced “franchise system” for operating “stage carriages” absolutely
different from the system prescribed by the Ordinance. One of the salient
features of this law is that under its Sub-Section (2) Government has been
empowered to declare the routes “franchise”, to be granted under its
instructions by the Regional Transport Authority, to the exclusion of all
other operators of stage carriages and upon grant of a “franchise” on a
specified route, the Regional Transport Authority under Sub-Section (4) has
been empowered to cancel all existing stage carriages permits on such
routes or a portion of route. Such oppressive provision has been inserted in
the statute without realizing that the operators of stage carriages are
already carrying on a lawful trade under valid permits, since long without
any allegation of violating the law under which route permits were granted
to them. Further more, no notice, before cancelling their lawful licences,
were given to them as Section 69-A does not envisage such provision. Thus
it can be safely held that a right which has accrued to them to carry on a
lawful business, according to the Ordinance, could not be denied to them
by introducing “franchise” system by the Provincial Government, in view
of the guarantees, provided to them under Article 18 of the Constitution. It
is to be noted that under the scheme of the Ordinance, the Provincial
Government, except supervising, had no administrative role to play as the
trade of transport is regulated by the Regional or Provincial Transport
Authority. Thus, we have reason to believe that under Section 69-A of the
Ordinance, an administrative role has been given to the Provincial
Government for effectively carrying out its object including the exclusion of
all other transporters, who are already in a lawful business, because if an
CA.224 of 2003, etc.
19
operator possesses valid route permit for plying the vehicles on a route or
the routes obtained by it from Regional Transport Authority or the
Provincial Transport Authority, legally Government cannot exclude him
from the business except in terms of Section 62 of the Ordinance. However,
it is no body’s case that the Regional Transport Authority after insertion of
Section 69-A in the Ordinance ever exercised its jurisdiction under Section
62 of the Ordinance and cancelled their permits.
21.
In view of above background it seems appropriate to examine the
constitutionality of Section 69-A of the Ordinance, particularly power of
Government of Punjab to grant franchise in the trade/business of transport.
22.
The word “franchise” has been defined in a good number of cases
by various Courts including the Courts of United State of America as
reported in American Jurisprudence 2nd Edition Volume 36 (page 723),
according to which it means:-
i)
“A franchise represents the right and privilege
of doing that which does not belong to citizen
generally, irrespective of whether net profit
accruing from the exercise of the right and
privilege is retained by the franchise holder or is
passed on to a state, school or to vehicle sub-
divisions of the state. State XREL Williamson
Vs. the Garrison (Okla) 348 P-2 D 859.
ii)
Whether all persons including corporations are
prohibited from transacting a banking business
unless authorized by law the claim of a banking
corporation to exercise the right to do a banking
business a claim to a franchise. The right of
banking under such a restraining act is a
privilege or immunity by grant of the legislature
and the exercise of the right is an assertion of a
grant from the legislature to exercise that
privilege and consequently it is usurpation of a
franchise unless it can be shown that the
privilege has been granted by the legislature,
CA.224 of 2003, etc.
20
People State XREL Attny. Gen. Vs. Utica Ins.
Johns (NY) 358.
iii)
Similarly in UTAH Light and Traction Company
Vs. Public Serv Com. 101 UTAH 99, 118 P 2nd
683 has defined franchise as follows:-
“A franchise is a right or
privilege
granted
to
a
corporation or individual to do
things which such corporation
or individual otherwise could
not do such as the construction,
maintenance and operation of
utility transmission lines either
above or beneath the surface of
the State street and allies.
The ‘American Jurisprudence’ generally has explained the nature of the
incidence of franchise that “as a rule, when a franchise is granted subject
to the condition and the terms upon which it may be held it becomes the
property of the “grantee” and is a private right subject only the
Governmental control going out of it other enter has publicy juries”.
Likewise in Black’s Law dictionary 5th Edition (page 592)
‘franchise’ has been defined as follows:-
“A special privilege conferred by Government
on individual or corporation, and which does not belong
to citizens of country generally of common right.
Artesian Water Co. v. State Dept. of High Ways and
Transp. Del. Super 330 A. 2d 432, 439, In England it is
defined to be a royal privilege in the hand of a subject.
A privilege granted or sold, such as to use a
name or to sell products of services. The right given by a
manufacturer or supplier to a retailer to use his
products and name on terms and conditions mutually
agreed upon.
In its simplest terms, a franchise is a license
from owner of a trademark or trade name permitting
another to sell a product or service under the name or
mark. More broadly stated a “franchise” has evolved
into an elaborate agreement under which the
franchisee undertakes to conduct a business or sell a
product or service in accordance with methods and
procedures prescribed by the franchisor through
CA.224 of 2003, etc.
21
advertising, promotion and other advisory services.
H&R Block., Inc. v. Lovelace, 208 Kan. 538, 493 P.2d
205, 211.”
From the above definitions it is concluded that “franchise” is a Privileged
contract between the “grantor” and “grantee” in respect of a trade or
business to the exclusion of any one else, which does not belong to citizens
generally, with a view to create a “monopoly” in respect thereof, which is
also known as CARTEL.
23.
It is well settled that the right of trade/ business or profession under
Article 18 of the Constitution is not an absolute right but so long a trade or
business is lawful a citizen who is eligible to conduct the same cannot be
deprived from undertaking the same, subject to law which regulates it
accordingly. The word “regulation”, as used in Article 18 of the
Constitution has been interpreted by the Courts of our country keeping in
view the provisions of Article 19(1)(g)(6) of the Indian Constitution. It
would be appropriate to reproduce it herein below for convenience:-
“19. Protection of certain rights regarding freedom of
speech etc.---- (1)All citizens shall have the right-----
(a)…………………………………………….
(b)…………………………………………….
(c)……………………………………………..
(d) ……………………………………………..
(e)……………………………………………..
(f)………………………………………………
(g) to practice any profession or to
carry on any occupation trade or
business.
(2) ……………………………………………..
(3)……………………………………………..
(4) ……………………………………………..
(5) ……………………………………………..
(6) anything in sub-clause (g) of the said clause shall
effect the operation of any existing law in so far as it
imposes or prevents the State from making any law
imposing, in the interest of the general public,
reasonable restriction on the exercise of the right
CA.224 of 2003, etc.
22
conferred by the said sub-clause and any particular
[nothing in the said sub-clause shall effect the operation
of any existing law in so far as it relates to or prevent
the State from making any law relating to---
(i)
the
profession
or
educational
qualification necessary for practicing
any profession or carrying on any
occupation, trade or business
(ii) the carrying on by the State or by a
corporation owned or controlled by the
State of any trade business industry or
service] whether to the exclusion
complete or partial of citizens or
otherwise.”
It may be noted that word “reasonable” was inserted in Article 19
of the Indian Constitution, vide Constitution (First Amendment Act 1951),
but it has not defined the expression “reasonable restriction” itself.
However, from different judicial pronouncements following definitions can
be considered for purpose of ascertaining the meaning of “reasonableness
of restriction” on the fundamental rights of the citizens, to conduct any
lawful trade or business:-
i)
The limitation imposed upon a person in
enjoyment of a right should not be arbitrary or
of an excessive nature beyond what is required
in the interest of the public. M/s Dwarka Prasad
v. State of U.P. (AIR 1954 SC 224), P.P.
Enterprises v. Union of India (AIR 1982 SC
1016)].
ii)
The Court would see both to the nature of the
restriction and procedure prescribed by the
statute for enforcing the restriction on the
individual freedom. Not only substantive but
procedural provisions of statute also enter into
the verdict of its reasonableness. Kishan Chand
v. Commissioner of Police (AIR 1961 SC 705).
iii)
The principles of natural justice are an element
in considering reasonableness of a restriction
but the elaborate rules of natural justice may be
excluded expressly or by necessary implication
CA.224 of 2003, etc.
23
where procedural provisions are made in the
statute. Haradhan Saha v. State of W.B.
[(1975) 3 SCC 198]
iv)
Absence of provision for review makes the
provisions unreasonable. K.T. Moopil Nair v.
State of Kerala (AIR 1961 SC 552).
v)
Retrospectivity of a law may also be the relevant
factor of law, although a retrospectivity of law
does not make it automatically unreasonable.
Narottamdas v. State of Maddhya Pradesh
and others (AIR 1964 SC 1667).
vi)
Reasonable restriction also includes cases of
total prohibition of a particular trade or
business which deprive a person of his
fundamental right under certain circumstances.
Narindra Kumar Vs. Union of India (AIR 1960
SC 430)
24.
It is to be noted that our Constitution stands in sharp contrast to the
corresponding provisions of Indian Constitution. A comparison of Article
18 of the Constitution and Article 19 (1)(g)(6) of the Indian Constitution
manifestly makes it clear that in later Constitution, words “lawful” and
“regulation” are conspicuously omitted but while defining the word
“regulation” our Courts have followed the interpretation of Indian
Supreme Court of expression “reasonable restriction”, while dealing with
the concept of “free trade/business etc.” under Article 18 of the
Constitution, despite the distinction noted herein above. In this behalf,
reference may be made to Administrator Market Committee, Kasur, etc.
v. Muhammad Sharif (1994 SCMR 1048).
Whereas in Black’s law Dictionary the word ‘regulation’ has been defined
as follows:-
“Regulation. The act of regulating; a rule of order
prescribed for management or government; a regulating
principle; a precept. Rule of order prescribed by
CA.224 of 2003, etc.
24
superior or competent authority relating to action of
those under its control. Regulation is rule or order
having force of law issued by executive authority of
government.”
Perusal of above definition persuades us to hold that there cannot be denial
of the Government’s authority to regulate a lawful business or trade, but
question would arise whether under the garb of such authority, the
Government can prohibit or prevent running of such a business or trade.
To find out the answer to this question, reference may be made to the case
of Municipal Corporation of the City of Toranto v. Virgo (1896 A.C.
88, 93), where Lord Davey while discussing a statutory power conferred on
a Municipal Council to make bye-laws for regulating and governing a
trade made the following observation:-
“No
doubt
the
regulation
and
governance of a trade may involve the
imposition
of
restrictions
on
this
exercise…………
Where
such
restrictions are in the opinion of the
public authority necessary to prevent a
nuisance or for the maintenance of
order. But their Lordships think that
there is marked distinction to be drawn
between the prohibition or prevention of
a
trade
and
the
regulation
or
governance of it, and indeed a power to
regulate and govern seems to imply the
continued existence of that which is to
be regulated or governed.”
The above judgment has also been cited in Saghir Ahmed‘s case (ibid),
which has also been relied upon by the learned counsel for appellants,
particularly Mr. Muhammad Akram Sheikh, Sr. ASC. We may observe that
some of the principles highlighted in this case may not be attracted in the
facts of the case in hand because it was pronounced prior to Constitutional
amendment in 1951, in pursuance whereof the word “reasonable’ was
CA.224 of 2003, etc.
25
added before the word “restriction”. But at the same time this judgment
also contained at least two other important observations, which will be
referred to at a later stage. At this juncture, reference to the case of
Government of Pakistan through Secretary Ministry of Commerce and
another v. Zamir Ahmed Khan (PLD 1975 SC 667), seems to be
important, with reference to proposition under discussion. In this case,
respondent Zamir Ahmed challenged the amendment in SRO No.54(i)/72
dated 15th May 1972 in pursuance whereof cinematograph films were
allowed to be imported from abroad subject to presentation of a licence
form for authentication by the licencing authority etc. Subsequently this
notification was amended as per gazette notified on 10th August 1972
whereby
private
respondents
were
disqualified
from
importing
cinematograph films and the agencies to be specified by the Ministry of
Information and Broadcasting were allowed to import the films. The
licence to import the films was declined to the respondent, therefore, he
invoked the constitutional jurisdiction of the High Court but no relief was
given to him and the petition was dismissed on the ground that no right in
his favour had been created. An appeal was filed against this order which
was allowed by latter’s Patent Bench. The Government preferred appeal
before this Court, wherein while interpreting Article 18 of the Constitution,
this Court made following observations:-
“It will be appropriate to examine in the first instance,
whether the respondent can invoke any provision of the
Constitution in the Chapter relating to the Fundamental
Rights for the grant of licence for the import of films.
Article 18 of the Constitution, which relates to the
freedom of trade, business or profession, which
corresponds to Article 15 of the Interim Constitution,
and which incidentally held the field at the relevant time,
assures the citizens the right to enter upon any “lawful
profession or occupation” and “ to conduct any lawful
CA.224 of 2003, etc.
26
trade or business”. It is important to point out that the
word “lawful” qualifies the right of the citizen in the
relevant field. This clearly envisages that the State can
by law ban profession, occupation, trade or business by
declaring it to be unlawful which in common parlance
means any thing forbidden by law. Prostitution,
trafficking in women, gambling, trade in narcotics or
dangerous drugs are common place instances of
unlawful profession or trade. These are inherently
dangerous to public health or welfare. Therefore, on the
wording of occupation or to conduct trade or business
can hardly be described to be a constitutional or
fundamental right when such right may be denied by
law.”
The above judgment was maintained in review petition in the judgment
reported as Zamir Ahmed Khan v. Government of Pakistan and
another (1978 SCMR 327). Aforesaid conclusion seems to be in
consonance with the judgment in the case of Municipal Corporation of the
City of Toranto (ibid).
25.
It may be noted that broad principles laid down in the judgments of
Indian jurisdiction, some of which have been noted herein above,
interpreting the word “reasonable restriction”, did not say that it would
also mean “prohibition” or “prevention” completely, except under certain
circumstances.
26.
Now we have got before us the definition of the word “reasonable
restriction” as defined by the Courts of Indian jurisdiction and the
definition of the word “regulation” according to our own Court, and as per
its dictionary meanings. Therefore, it would be seen that in order to resolve
the controversy, which definition, out of two, is to be followed. But before
doing so, we consider it appropriate to examine the judgments cited by the
learned counsel for respondents, to contend that Government can prohibit
and prevent any trade or business in the public interest:-
CA.224 of 2003, etc.
27
Case Law
Discussion
i)
Mehtab Jan and another v.
Municipal
Committee
Rawalpindi
(PLD 1958 W.P. Lahore 929)
In this case while examining Article 12 of
the Constitution of 1956, with regard to a
case in which notice was issued by the
Municipal Corporation Rawalpindi that
“all
owners,
tenants,
residents
and
prostitutes”, who reside in the area known
as Serai Beli Ram for the purpose of
adultery, should vacate their premises
within a month, reason for the notice
being that the use of the locality in
question as “chakla” was injurious to the
morals of the residents, held that “morality
and decency are as fundamental as the
fundamental rights themselves, and in the
context of our Constitution, bearing in
mind the preamble and the directive
principles, a fundamental right is like the
moon and morality like the disk of light
surrounding
it.
A
profession
whose
practice
Pakistan’s
Constitution
guarantees to the citizen could not
conceivably be a profession involving
indecency or immorality”. It is further held
that “the advocacy of a “full and free”
right to practice prostitution violates both
the
spirit
and
the
letter
of
the
Constitution”. Therefore this case has no
application to the instant case.
ii)
Government of Pakistan v.
Syed Akhlaque Hussain and
another (PLD 1965 SC 527)
M/s Haider Automobile Ltd.
v. Pakistan
(PLD 1969 SC 623)
In both these cases, the respondents, who
were former Judges of the High Court
were banned to practice before the High
Courts, which were adorned by them as
permanent
Judges,
under
the
Legal
Practice (Disqualification) Ordinance (II
of 1964), therefore, they challenged the
vires of this Ordinance on the ground that
it has violated their fundamental right of
practice or profession. This Court keeping
in
view
the
peculiar
facts
and
circumstances of the case, particularly the
respect and dignity of the retired Judges of
the Superior Courts held as under:-
“The fact of partial disbarment
is however plain, and where this
occurs in diminution of a
franchise
which
has
been
enjoyed
for
a
period,
the
question would arise whether
the law can effectively produce
such a loss of a property right,
consistently
with
the
requirement of the Constitution.
Speaking generally, the law as
an
instrument
for
the
advancement
of
the
public
interest must be adapted to
existing
requirements,
being
specially
sensitive
to
the
existence of any elements of
mischief or injury which it finds
in operation. The law moves
CA.224 of 2003, etc.
28
slowly,
and
therefore,
conservatively, but instances
are not uncommon of the law
moving
to
remedy
gross
inefficiency
and
inequalities
which have grown up under its
protection in the past, even at
the cost of deprivation of the
existing
rights
of
property.
There is the instance of the land
reform,
which
was
found
necessary in the entire sub-
continent following upon the
century during which, under
British rule, a condition had
developed
leading
to
monopolization and inefficient
exploitation of land, to the
detriment of the prosperity of
the
common
people.
The
technique of decartelization in
industry and commerce in many
countries
through
legal
instruments,
affords
another
example of the removal of
existing
mischiefs
by
the
deprivation of existing rights of
ownership, because such rights
having developed in unbalanced
fashion, so as to produce real
dangers to the public interest in
the
shape
of
unhealthy
monopolies. The Constitutional
right in respect of property is
expressed
in
the
following
simple terms, viz.:---
“No
person
shall
be
deprived of his property
save in accordance with
law.”
In this case, the loss of a
property right through partial
disbarment has been operated
by a law. It has no quality of a
“bill of attainder” such as was
found by the majority of the
Supreme Court of the United
States in the case of Garland.
That
Court
had
under
consideration a law of Congress
depriving attorneys of their
entire right of practicing the
profession of law, unless they
took an oath denying that they
had over participated on behalf
of the Confederacy of the
Southern States in the American
Civil War. The case was one of
the treason being visited with
punishment through legislative
instrumentation. Here, it is not a
case of punishment at all. The
Ordinance of 1964 operates in
CA.224 of 2003, etc.
29
aid of maintenance of the
judicial machinery at the apex
of the system in that State of
dignity, which is essential to its
proper operation. In the case of
Garland, it was found that the
law also operated ex post facto,
that is, it applied to an act not
punishable
when
it
was
performed, a punishment of
later
devising.
Such
a
prohibition is contained in the
Pakistan
Constitution
in
Fundamental Right No. 4, but
that
right
is
clearly
not
attracted, for here indeed there
is nothing in the nature of a
punishment being applied. Nor
can it be said that there is
violation of the right of equality
of
citizens
expressed
in
Fundamental Right No. 15, in
the following terms viz.:---
All citizens are equal
before law and are
entitled
to
equal
protection of law.”
As a result of above observation, the
petition filed by the Government was
accepted.
Same rule has been followed in the case of
Haider Automobile Ltd. , where this Court
had examined the judgment of the High
Court in the case of Manzoor Qadir,
(former Judge).
The above judgments are also not
applicable
because
by
means
of
Ordinance 1964, the former/retired Judges
of the Superior Courts were completely
debarred to practice later. However, they
were prevented to do so before the High
Court, which they had served as former
Judge. As such the judgments are not
applicable.
iii) Government
of
Pakistan
through Secretary Ministry of
Commerce and another v.
Zamir Ahmed Khan
(PLD 1975 SC 667)
The facts of this case in brief have already
been noted herein above. Learned counsel
has highlighted the principle namely that
“licence does not create a right in favour
of its holder”. There is no dispute with this
principle but it is to be noted that the
appeal filed by the Government had
succeeded on the point that Section 3(1) of
the Export (Control) Act (XXXIX of 1950)
read with Import Policy Order 1972 were
not challenged and the respondent had in
fact show his grievance only in respect of
amended notification dated 10th August
1972 whereby official agency through
Ministry of Information and Broadcasting
CA.224 of 2003, etc.
30
was allowed to import cinematographic
films, therefore, he failed to get relief from
the Court. Thus for this reason this
judgment is also not applicable.
iv)
M/s East and West Steamship
Co. v. Pakistan.
(PLD 1958 SC 41)
In this judgment it was held that “a right
given by Article 12 has to be read subject
to clause (a) of the proviso, which
expressly states that a trade may be
regulated by a licencing system, and if the
effect of a licencing system is prohibition
then it follows that prohibition of a trade
by a licencing system was contemplated by
the framers of the Constitution”. In our
considered opinion, Article 12 of the
Constitution of 1956 is distinguishable
from proviso (b) of Article 18 of
Constitution of 1973 which had introduced
the element of competition amongst the
traders and this Court in the case of
Government
of
Pakistan
(ibid)
has
explained the meaning of the “regulation”
holding that prohibition or prevention of a
trade is possible only if the same is
unlawful. Therefore, this judgment is also
not attracted.
27. The edifice of the arguments of Syed Ali Zafar, learned ASC is based
on premises that as appellants were not qualified to get franchise of
specified routes, therefore, in terms of Article 18 (a) of the Constitution,
they were excluded from the business of transport as per the provisions of
Section 69-A of the Ordinance. But in our opinion, in Article 18 of the
Constitution, word “qualification” has been used to confer a right upon a
citizen to enter upon any lawful profession or occupation and not to
conduct any lawful trade or business. Admittedly Section 69-A of the
Ordinance had not prescribed a qualification for the transporters. As per
ordinary meanings of, “qualification” a quality, which is legally necessary
to render a person eligible to fill an office or to perform any public duty or
function like a qualified voter, who meets the residence, age and
registration requirements etc. [Black’s law Dictionary (page 1116)],
therefore, it can be safely concluded that a person without having a
qualification can run a business or trade of transport. Perhaps learned
counsel wanted to convey that as appellants were not in a position to
CA.224 of 2003, etc.
31
operate stage carriages with capacity of carrying 70 or more passengers,
therefore, under Section 69-A of the Ordinance, they were disqualified to
get franchise. This assumption is not correct because, the appellants were
not competing for franchise routes as they were already in possession of
valid route permits, which were not cancelled for violation of the law,
under which the same were issued to them i.e. Section 62 of the Ordinance,
therefore, in absence of any competition between the appellants and
respondents, they were qualified to ply their stage carriages on the same
routes.
It may be noted that in pursuance of sub-section (4) of Section 69-A
of the Ordinance, route permits of the appellants have been cancelled in
violation of principles of natural justice, as sub-section (4) of Section 69-A,
expressly or by necessary implication provides that they would be entitled
to right of hearing before the cancellation of their permits to run a valid
stage carriage, which they were possessing since long and on the basis of
the same, were plying their vehicle on the specified routes.
Argument of learned counsel for respondents is that competent
authority can regulate any trade or profession by a licencing system. There
may be no cavil but this clause has to be read conjunctively with proviso
(b) of Article 18 of the Constitution, according to which an element of free
competition to regulate a trade, commerce or industry has been introduced
because if competition in the trade is discouraged, it would negate the
provisions of Article 3 of the Constitution, which deals with the elimination
of all forms of exploitation and if due to non-competition, franchise is
granted on specified routes, it would tantamount to monopolize the trade/
business of transport, as held in the case of Harman Singh v. R.T.A.
Calcutta Region. (AIR 1954 SC 190). Relevant para therefrom is
reproduced herein below for convenience:-
CA.224 of 2003, etc.
32
“(8)
The next contention of Mr. Choudhry that the
introduction of small taxis in the streets of Calcutta will
bring about a total stoppage of the existing motor taxi
cab business of large taxi owners in a commercial sense
and would thus be an infringement of the fundamental
right guaranteed under Article 19(1)(g) of the
Constitution is again without force. Article 19(1) (g)
declares that all citizens have the right to practice any
profession, to carry on any occupation, trade or
business, Nobody has denied to the appellants the right
to carry on their own occupation and to ply their taxis.
This article does not guarantee a monopoly to a
particular individual or association to carry on any
occupation and if other persons are also allowed the
right to carry on the same occupation and an element of
competition is introduced in the business, that does not
in the absence of any bad faith on the part of the
authorities, amount to a violation of the fundamental
right guaranteed under Article 19(1)(g) of the
Constitution. Under the Motor Vehicles Act it is in the
discretion of the Regional Transport Authority to issue
permits at different rates of tariff to different classes of
vehicles plying in the streets of Calcutta and if that
power is exercised in a ‘bona fide’ manner by the
Regional Transport Authority for the benefit of the
citizens of Calcutta, then the mere circumstance that by
grant of licence at different tariff rates to holders of
different taxis and different classes of vehicles some of
the existing licence holders are affected cannot bring the
case under Article 19 (1)(g) of the Constitution.”
In the instant case as well, the Government of Punjab, instead of
promulgating Section 69-A of the Ordinance for the purpose of granting
franchise on specified routes to the respondents by excluding all other
transporters, running their stage carriages against valid route permits on
the same routes, ought to have granted route permits to respondents as
well under the Ordinance, in order to cater the pressure of the passengers
on those routes with clear direction to them to charge less fare from
passengers, compared to the fare which is being charged by the appellants
CA.224 of 2003, etc.
33
transports, who are already plying their vehicle on the same routes and if
owing to such free competition, if any of them had failed to compete, it
could have excluded itself from the business, instead of providing a cause
of grievance to the appellants, to whom right to live has been denied as
they are not in a position to survive, on account of being excluded from the
business in terms of Article 9 of the Constitution. The word “life” used in
this Article of the Constitution has been defined in the case of Shehla Zia
v. WAPDA (PLD 1994 SC 693), according to which “life” includes all
such amenities and facilities which a person born in a free country is
entitled to enjoy with dignity, legally and constitutionally”. It is further
explained therein that the word “life” in the Constitution has not been used
in a limited manner. A wide meaning should be given to enable a man not
only to sustain life but to enjoy it. Moreover, under the objective resolution
which is a part of the Constitution, it is the duty of legislature to ensure an
egalitarian society, based on Islamic concept of fair play and social justice,
as held in the case of Shaukat Ali v. Government of Pakistan (PLD
1997 SC 342). Relevant para therefrom reads as under thus:-
“4.
Since the Railways intend to grant licences
in the above terms in order to ensure that no one is
discriminated or favoured for the reason other than
the well-being of the people and the country at
large, no purpose will be served by granting leave.
We may observe that since Pakistan is founded on
the basis of religion of Islam, efforts should be
made to bring about an egalitarian society based on
Islamic Concept of fair play and social justice. The
State functionaries like Railways are expected to act
fairly and justly, in a manner which should not give
to any one cause of complaint on account of
discriminatory treatment or otherwise. While
discharging official functions, efforts should be
made to ensure that no one is denied to earn his
CA.224 of 2003, etc.
34
livelihood because of the unfair or discriminatory
act on the part of any State functionary. It is hoped
that the petitioners who had been earning livelihood
for considerable long period on the basis of licences
granted by the Railways, will be treated fairly.”
As observed herein above, Constitution is a living document which portrays
the aspirations and genius of the people and aims at creating progress,
peace, welfare, amity among the citizens, therefore, while interpreting its
different Articles particularly relating to the fundamental rights of the
citizens, approach of the Courts should be dynamic rather than static,
pragmatic and not pedantic and elastic rather than rigid. As such,
following this principle and also keeping in view other provisions of the
Constitution, including Article 3, 9, 18 as well as Article 38 of the
Constitution, which deals with the principles of State policy, we are
inclined to hold that if the definition of word “regulation” as laid down in
the judgments cited herein above, is applied to hold that under licencing
system, unless the business is unlawful or indecency is involved therein, the
legislature can enact laws, which will promote a free competition in the
fields of trade, commerce and industry. At any rate, if restrictions are to be
imposed to regulate such trade or business, those should not be arbitrary
or excessive in nature, barring a majority of persons to enjoy such trade.
In the instant case, as per the requirement of Section 69-A of the
Ordinance, the appellants, who are the owners of the stage carriages as per
the definition under Section (2) 37 of the Ordinance, would not be in a
position to run the business on the specified routes, franchise of which has
been offered to the respondents because it has been inferred from the facts
of the case put forward by parties’ counsel that for one route they have to
arrange a fleet of stage carriages. Obviously the appellants are not in a
position to arrange such fleet, on account of their financial position or
CA.224 of 2003, etc.
35
being un-influential person. They are also not in a position to obtain hefty
loans from the financial institutions, as have been given to respondents at
70% and 30% ratio, and thus unable to compete with the respondents.
Consequently, such conditions would appear to be not only arbitrary but
oppressive in nature and tend to deprive them from enjoying the
fundamental right of freedom of trade and business, as per Article 18 of the
Constitution. Therefore, in such situation it becomes duty of the Court to
see the nature of the restrictions and procedure prescribed therein for
regulating the trade and if it comes to the conclusion that the restrictions
are not reasonable then the same are bound to be struck down.
As discussed herein above, the conditions imposed under Section 69-
A of the Ordinance are held to be very harsh, unjust, arbitrary, oppressive
and contrary to principles of natural justice, because by the time it is well
settled that if an adverse action is likely to be taken against a person,
detrimental to his interest, he is entitled to the right of hearing before
finalization of such action. In this behalf, reference can be made to the case
of Pakistan International Airlines (PIAC) v. Nasir Jamal Malik (2001
SCMR 935). Relevant para therefrom is reproduced herein below for
convenience:-
“Though the principle of audi alteram partem is not
universally accepted principle but emphasis on its
application has always been made on those proceedings
where adverse action is being contemplated to be taken
against the person/persons who have at least a right to
defend such action or during course of time they have
acquired a right to negate allegations on basis of which
an action adversely affecting their interest is being
taken. To strengthen the arguments reference may be
made to Chief Commissioner, Bahawalnagar and others
(PLD 1964 SC 461), (iv) Abul Alla Maudoodi v.
Government of West Pakistan (PLD 1964 SC 673) (v)
University of Dacca v. Zakir Ahmed (PLD 1965 SC 90),
CA.224 of 2003, etc.
36
(vi) Muhammad Hayat v. Province of West Pakistan
(PLD 1964 SC 321). (vii) Massers East-end-Export,
Karachi v. The Chief Controller of Imports and Exports.
Rawalpindi and another (PLD 1965 SC 605), (viii)
Pakistan and others v. Public At Large and others (PLD
1987 SC 304), (ix) Khaliluz Zaman v. Supreme Appellate
Court, Lahore and 4 others (PLD 1994 Sc 885), (x)
Ghulam Mustafa Jatoi v. Additional District and
Sessions Judge/Returning Officer, N.A. 158, Naushero
Feroze and others 1994 SCMR 1299 and (xi) Faqir
Ullah v. Khalil-uz-Zaman and others (1999 SCMR
2203).”
28.
It may be noted that Section 69-A of the Ordinance is coached in
such a language that one feels no difficulty to draw an inference that a new
system is being introduced, which is absolutely different and distinct from
the licencing system of running the transport as has been provided under
the Ordinance 1965, without providing right of hearing to these stage
carriages’ owners, who are being excluded from the trade, as observed
herein above but no right of appeal or revision against the order of
Secretary, Regional Transport Authority or the Government, has been
provided, therefore, due to this reason as well, Section 69-A seems to be
unreasonable law. Thus it can be safely concluded that the restrictions
imposed by Section 69-A of the Ordinance leading to exclude the appellants
from the trade/business of transport had prevented/prohibited the
appellants and many other transporters to enjoy the guaranteed
fundamental right of freedom of trade/business as per Article 18 of the
Constitution.
29.
Next question for consideration would be as to whether Article 18 of
the Constitution permits introduction of franchise system in the
trade/business. Definition of “franchise” from the American Jurisprudence
and Black’s Law Dictionary has already been noted herein above, crux of
CA.224 of 2003, etc.
37
which is that a special privilege granted to a particular person/party to do
a specific business, to the exclusion of all other persons, dealing in the
same business would not be reasonable . A perusal of proviso (b) of Article
18 of the Constitution indicates that regulation of the trade, commerce or
industry is permissible in the interest of free competition therein. Meaning
thereby that without free competition amongst traders, no trade commerce
or industry can be regulated. To understand the concept of free
competition, this clause may be read, keeping in view proviso (c) of Article
18 of the Constitution, according to which only Federal Government or
Provincial Government or a Corporation controlled by such Government
can carry on any trade, business, industry or service to the exclusion,
complete or partial, of such other person, which would mean that under
clause (c), a right has been given only to the Government to create
monopoly and confer right of franchise to any of the functionaries
mentioned therein for the purpose of carrying on a business. As far as
private persons are concerned, they cannot be excluded from carrying on
trade for the purpose of creating monopoly and granting franchise of a
particular trade. The concept of franchise is alien to the Indian
Constitution as well as to our own Constitution because with reference to
running of transport on the route owned by the public, all citizens have
equal rights and they cannot be deprived from the same for the reason that
some of them had obtained franchise on the said route. In this behalf it is
to be noted that we are informed that on some of the routes granted to the
private respondents i.e. Varan Tours in Islamabad – Rawalpindi, the
franchise holder is also plying the stage carriages on the highway i.e.
Peshawar road etc. This fact has not been disputed by the other side,
therefore, we are of the opinion that the provisions of Section 69-A of the
Ordinance cannot be pressed into service to exclude all other citizens
CA.224 of 2003, etc.
38
including the appellants, preventing them from use of the highways for the
purpose of running the business of transport. In this behalf in the following
para, Indian Supreme Court in Saghir Ahmed’s case (ibid) has
elaborately discussed this aspect of the case:-
“But the right of the public to use motor vehicles on the
public road cannot, in any sense, be regarded as a right
created by the Motor Vehicles Act. The right exists
anterior to any legislation on this subject as an incident
of public right over a highway. The State only controls
and regulates it for the purpose of ensuring safety,
peace, health and good morals of the public. Once the
position is accepted that a member of the public is
entitled to ply motor vehicles on the public road as an
incident of his right of passage over a highway, the
question is really immaterial whether he plies a vehicle
for pleasure or pastime or for the purpose of trade and
business. The nature of the right in respect to the
highway is not in any way affected thereby and we
cannot agree with the learned Advocate General that the
user of a public road for purposes of trade is an extra
ordinary or special use of the highway which can be
acquired only under special sanction from the State.”
After having explained the public right to use a public road or highway
their lordships proceeded to examine whether grant of franchise to a
private person is permissible under the Indian Constitution or not and after
taking into consideration the material available on record it was concluded
as under:-
“We do not think that this is the law of India under our
Constitution. The cases referred to above were noticed
by the Allahabad High Court in the Full Bench decision
of Motilal v. Uttar Pradesh Government, and two of the
learned Judges constituting the Full Bench expressed
their opinion that this ‘doctrine of exceptional user’
might have been evolved by the American Courts in the
same way as they evolved the ‘doctrine of police
powers.’ They both held that this American rule did not
embody the English or the Indian law on the subject.
CA.224 of 2003, etc.
39
This identical point was investigated with
considerable thoroughness in a recent decision of the
Madras High Court in C. S. S. Motor Service v. State of
Madras, and it was pointed out by Venkatarama Ayyar
J. who delivered the judgment of the Court, that the rule
of special or extraordinary use of highways in America
had its roots in the doctrine of ‘franchise’, which is still
a recognized institution in that country. The doctrine of
‘franchise’ or ‘privilege’ has its origin in English
Common Law and was bound up with the old
prerogative of the Crown. This doctrine continued to live
in the American legal world as a survival of the pre-
independence days, though in an altered form. The place
of the royal grants under the English Common Law was
taken by the legislative grants in America and the grant
of special rights by legislation to particular individuals
or companies is regarded there as a ‘franchise’ or
privilege’ differing from the ordinary liberties of a
citizen. The carrying on of transport buses by common
carriers on the public road in America is a ‘franchise’
and not a common law right, which could be claimed by
all citizens and a distinction is made, as the cases cited
above will show, between contract carriers who carry
passengers or goods under particular contracts and
common carriers whose business is affected with public
interest. Over the latter the State claims and exercises a
plenary power of control. Ayyar J. has, in our opinion,
rightly pointed out that this doctrine of ‘franchise’ has
no place in our Constitution. Under the Indian
Constitution the contract carriers as well as the common
carriers would occupy the same position so far as the
guaranteed right under article 19(1) (g) is concerned
and both are liable to be controlled by appropriate
regulations under clause (6) of that article. The law on
the point, as it stands at present, has been thus summed
up by the learned Judge.
“The true position then is, that all public streets
and roads vest in the State, but that the State holds them
as trustees on behalf of the public. The members of the
public are entitled as beneficiaries to use them as a
matter of right and this right is limited only by the
similar rights possessed by every other citizen to use the
pathways. The State as trustees on behalf of the public is
CA.224 of 2003, etc.
40
entitled to impose all such limitations on the character
and extent of the user as may be requisite for protecting
the rights of the public generally; ……… but subject to
such limitations the right of a citizen to carry on
business in transport vehicles on public pathways
cannot be denied to him on the ground that the State
owns the highways.”
We are in entire agreement with the statement of
law made in these passages. Within the limits imposed
by State regulations any member of the public can ply
motor vehicles on a public road. To that extent he can
also carry on the business of transporting passengers
with the aid of the vehicles. It is to this carrying on of the
trade or business that the guarantee in article 19 (1) (g)
is attracted and a citizen can legitimately complain if
any legislation takes away or curtails that right any
more than is permissible under clause (6) of that
article”.
The question of non-recognition of the doctrine of franchise, as per
the mandate of Article 19 (1) (g) of the Indian Constitution as discussed
above, was reaffirmed in the case of Krishna Kakkan v. Government of
Kerala and others (AIR 1997 SC 128) i.e. under clause (1) (g) of Article
19 of the Indian Constitution, all citizens have a confirmed right to choose
their own employment or take upon any trade or business subject to the
limits as may be imposed by the State in the interest of public welfare and
other guarantees mentioned in clause (6) of Article 19 but it may be
emphasized that the Constitution does not recognize franchise or right to
business which depends on the guarantees
30.
In our opinion, there is no distinction in the Indian Constitution as
well as our own Constitution to the extent of grant of franchise in a trade,
therefore, we are persuaded to hold that in the trade of transport by
inserting Section 69-A of the Ordinance, grant of franchise on specified
routes is contrary to the provisions of Article 18(b) of the Constitution,
therefore, deserves to be declared void, under Article 8 of the Constitution.
CA.224 of 2003, etc.
41
31.
It is important to note that Ordinance of 1999 could not be placed
before the Provincial Assembly to make it an Act because during its
subsistence Provincial Assembly was suspended on account of Military
takeover on 12th October, 1999, therefore, it may be legitimately presumed
that in the enactment of Section 69-A of the Ordinance the public views
through elected representative are not included. Thus in the absence of
public opinion in promulgating Section 69-A of the Ordinance, it may not
be difficult to infer that it was not promulgated in the public interest and
general welfare etc. Indeed had this law been discussed in the Assembly,
through the representatives of the public, it might have changed its
complexion, to bring it within the command of Article 18 of the
Constitution.
32.
In the alternative it may be observed that the High Court seized with
the writ petition ought to have conducted an inquiry in the interest of
justice to ascertain as to whether addition of Section 69-A of the Ordinance
is for the public interest and general welfare and thus a valid law
according to Article 18 of the Constitution. Such exercise can always be
undertaken in the interest of justice or the Court can always direct the
Government to conduct inquiry in this behalf and to decide the validity of
Section 69-A of the Ordinance as done in the case of Pratap Pharma (Pvt.)
Limited v. Union of India (AIR 1997 SC 2648).
33.
Mr. Maqbool Ellahi Malik, learned ASC for respondents i.e. Varan
Tours, raised altogether a novel of argument in an attempt to save Section
69-A of the Ordinance. According to him, respondent Varan Tours is an
instrumentality of the Government of Punjab because the contents of the
agreement signed between them specifically provide that “fares” in respect
of the journey on the routes will be determined from time to time with the
consultation of the Regional Transport Authority, therefore, according to
CA.224 of 2003, etc.
42
him the system of franchise is permissible under proviso (c) of Article 18 of
the Constitution. In support of his argument he relied upon Aitchison
College Lahore v. Muhammad Zubair (PLD 2002 SC326).
Learned counsel appearing for the appellants seriously controverted
this view point. Similarly Mr. Aftab Gul learned ASC, who also appeared
on behalf of Varan Tours did not subscribe to his contention. However, we
have examined the proposition put forward by him but we are persuaded to
disagree with his proposition because the Varan Tours is a private concern,
who has got franchise on route No.1 and 7 of Rawalpindi - Islamabad, and
neither the Federal Government nor the Provincial Government controls its
business nor the company is setup or established by them. As far as the
judgment cited by the learned counsel is concerned it is completely
distinguishable because in that case Government of Punjab had taken over
the administration of Atchison College under the control of Education
Department by amending its Rules of Business.
34.
There is no cavil with the proposition that the Federal Government
or the Provincial Government or a Corporation controlled by any one of
them can create a monopoly to the exclusion of any other person for the
purpose of running a business, as per the mandate of clause (c) of the
proviso to Article 18 of the Constitution, as held in Kondala Rao v.
Andhra Pradesh S.R.T. Corporation (AIR 1961 SC 82). Relevant paras
therefrom are reproduced herein below for convenience:-
“(9)
The only question is, how far and to what extent
Art. 19(6) secures the validity of Ch. IVA of the Act from
attack that it offends against Art. 19(1)(g)? Learned
Counsel for the petitioners contends that Art. 19(6)(ii)
provides only for partial exclusion of citizens, that is,
the exclusion of a certain class of persons as a whole
and not far partial exclusion of some among the same
class. As S. 68C, the argument proceeds, enables the
State Transport Undertaking to frame a scheme for
CA.224 of 2003, etc.
43
excluding some among the same class, the said provision
is not saved by Art. 19(6) of the Constitution. Relevant
portions of S. 68C of the Act read:
“Where any State transport undertaking
is of opinion that ........ it is necessary in
the public interest that road transport
services in general or any particular
class of such service in relation to any
area or route or portion thereof should
be run and operated by the State
transport undertaking, whether to the
exclusion, complete or partial, of other
persons or otherwise...........”.
Under this section a scheme may be framed in respect of
road transport service in general or in respect of a
particular class of such service empowering the State
Transport Undertaking to run the said service; it may be
in relation to any area or route or a portion thereof; it
may also be to the exclusion of all or some of the
persons running the said service in general or a
particular class of it. The section enables the State to
take over a particular class of a service, say, the bus
service, and exclude all or some of the persons doing
business in that class of service. Learned counsel says
that this section confers a wide power beyond the
permissible limits of Art. 19(6)(ii) of the Constitution. To
State it differently, the argument is that while Art.
19(6)(ii) does not enable a partial exclusion of some
among the same class of service, S. 68C permits the said
exclusion.
(10)
The answer to this argument depends upon the
true meaning of the provisions of the said Article. Under
sub-cl. (ii) of Art. 19(6), the State can make a law
relating to the carrying on by the State or by a
corporation, owned or controlled by the State, of any
particular business, industry or service, whether to the
exclusion, complete or partial, of citizens or otherwise.
Article 19(6) is only a saving provision and the law
made empowering the State to carry on a business is
secured from attack on the ground of infringement of the
fundamental rights of a citizen to the extent it does not
exceed the limits of the scope of the said provision. Sub-
cl. (ii) is couched in very wide terms. Under it the State
can make law for carrying on a business or service to
the exclusion complete or partial of citizens or
CA.224 of 2003, etc.
44
otherwise. The law, therefore, can provide for carrying
on a service to the exclusion of all the citizens; it may
exclude some of the citizens only; it may do business in
the entire State or a portion of the State, in a specified
route or a part thereof. The word “service” is wide
enough to take in not only the general motor service but
also the species of motor service. There are, therefore,
no limitations on the State’s power to make laws
conferring monopoly on it in respect of an area, and
person or persons to be excluded. In this view, it must be
held that S. 68C does not exceed the limits prescribed by
Art. 19(6) (ii) of the Constitution”.
35.
Syed Ali Zafar, learned counsel for one of the private respondents
argued that Government of Punjab in pursuance of a policy to eliminate
congestion of traffic, to reduce inconvenience to the public at large during
journey, to control pollution as well as to check unfortunate degradation of
human being, introduced the franchise system of transport, therefore,
interference in the policy decision of the Government is not called for.
Reliance in this behalf was placed by him on Deputy Assistant Iron and
Steel Controller, Madras v. L. Manickchand Proprietor K.M
Corporation (AIR 1972 SC 935).
It may be noted that in the above said judgment it was held that
import licence cannot be claimed as of right. Similarly, in State of
Maharashtra v. Lok Shikshan Sanstha (AIR 1973 SC 588), it was
held as under:-
“the question of policy is essentially for the State
and such policy will depend upon an overall
assessment and summary of the requirements of
residents of a particular locality and other
categories of persons for whom it is essential to
provide facilities for education. If the over all
assessment
is
arrived
at
after
a
proper
classification on a reasonable basis, it is not for the
CA.224 of 2003, etc.
45
Courts to interfere with the policy leading up to
such assessment.”
In the case of Government of Pakistan v. Zamir Ahmed Khan (ibid),
it was observed as under:-
“the amendment made on 10th August 1972 in Item
No.49 signified a change in policy and the respondent
was informed that he was being refused licence because
of “the change in policy” and not because of any other
reason. On these facts, it is not possible to subscribe to
the proposition that a writ of mandamus would lie
against Licencing Authority, which would have the effect
of defeating the policy, competently made by the Federal
Government.”
Learned counsel also relied upon on M/s Illahi Cotton Mills (ibid).
We have gone through the judgments cited by the learned counsel.
The facts narrated therein are distinguishable. However, we are of the
opinion that in the instant case, right of franchise on specified routes has
not been granted to private respondents in pursuance of any directives of
the policy but in accordance with provisions of Section 69-A of the
Constitution and this Court is not debarred to examine its validity on the
touchstone of Article 8 of the Constitution, because if any law is
promulgated in derogation of fundamental rights, it would be declared
void because at the cost of fundamental rights, guaranteed by the
Constitution, the executive Government is not empowered to frame a policy.
Resultantly, the argument so raised by learned counsel has no force.
36.
Mr. Tariq Mehmood, learned counsel for one of the respondents
contended that competent authority granted franchise of specified routes to
respondents by adopting a transparent procedure as the offers/applications
were invited through private media and competition was allowed, following
the principle laid down in the case of Chairman RTA v. Pak. Mutual
CA.224 of 2003, etc.
46
Insurance Co. (PLD 1991 SC 14). He further argued that appellants have
been granted alternative routes, therefore, they should have no grievance
against grant of franchise on specified routes to the respondents and for
this reason, appeals are liable to be dismissed. In this behalf reliance was
placed on Administrator Market Committee Kasur (ibid).
The contentions raised by the learned counsel do not call for
examination in depth for the reason that if a law, under which certain
proceedings have been drawn, fails to stand the test of Article 8 of the
Constitution and is liable to be declared void then any proceedings drawn
under it, howsoever, solemn, cannot sustain in law.
37.
It may be observed that so far we have considered the validity of
Section 69-A of the Ordinance on the touchstone of Article 8 and 18 of the
Constitution. We have not entered into factual controversy with regard to
proper exercise of discretion by the competent authority, in the discharge of
its functions under Section 69-A of the Ordinance and its effect, whether
alternative routes have been granted to the appellants to operate their
stage carriages and the controversy which has been raised in respect of
grant of franchise on the specified routes with mala fide intention, as
contended by Mr. Nasir Saeed Sheikh, learned counsel for appellants in
Civil Appeal No.226 of 2003, and my Mr. Aftab Gul, learned ASC for one
of the franchise holders, for the reason that in impugned judgments,
learned High Court has not attended to the factual aspects of the case. In
our view, it would not be fair and in the interest of justice to enter into
factual controversy for the first time also because it would be against the
well settled practice of this Court.
38.
Learned counsel for appellants, also argued that the provisions of
Section 69-A of the Ordinance are discriminatory in nature because by
granting franchise to the respondents, contrary to the provisions of Article
CA.224 of 2003, etc.
47
18 of the Constitution, Government has violated Article 25 of the
Constitution, which guarantees equal protection of law amongst the
persons, similarly placed. To elaborate their arguments, they contended
that the respondents to whom franchise has been granted on specified
routes are being treated differently because their induction has excluded
the appellants from the same business. Reliance has been placed by them
on I.A. Sharwani and others v. Government of Pakistan through
Secretary Finance Division, Islamabad (1991 SCMR 1041).
On the other hand learned counsel for respondents contended that
the competent authority is empowered to make reasonable classification,
which is permissible because equal protraction of law does not envisage
that every citizen is to be treated alike in all circumstances, therefore,
classification under Section 69-A of the Ordinance, is not contrary to
Article 25 of the Constitution.
It may be noted that appellants and the respondents both are
similarly placed being owners of stage carriages and prior to the grant of
franchise to the private respondents, appellants were in possession of valid
route permits for plying their stage carriages on the specified routes but
their route permits stood cancelled due to grant of franchise to the
respondents in view of the provisions of Section 69-A of the Ordinance. It
means that Section 69-A of the Ordinance has created a classification
between franchise holders and appellants-transporters. Such classification
is not permissible under Article 25 of the Constitution, because the
differentia between both the classes must have rational nexus to the object,
sought to be achieved by such classification. As such we are of the opinion
that Section 69-A of the Ordinance is also violative of Article 25 of the
Constitution.
CA.224 of 2003, etc.
48
39.
In view of above discussion, we are persuaded to observe that it is
not too late for the Government of Punjab:-
a)
To
suitably
amend
the
Motor
Vehicle
Ordinance, 1965, if need be, in the public
interest and welfare, consistent with the
provisions of Article 8 of the Constitution of
Islamic Republic of Pakistan, ensuring fair
opportunity to the transporters to conduct their
business freely, with a provision of better
facilities of travel to the passengers in a
dignified manner, through reliable stage
carriages.
b)
It has been noticed that the respondents while
obtaining franchise on specified routes have
obtained 70% loans against their equity of
30%, therefore, the Government may examine
to run transport on the specified routes itself, as
contemplated by the proviso (c) of Article 18 of
the Constitution.
c)
Government may take any other constitutional
or administrative steps, which are deemed fit by
it in the public interest for solving the problems
of transport in the urban areas of the province
of Punjab.
Thus for the foregoing reasons, the appeals/petition under Article
185(3) of the Constitution of Islamic Republic of Pakistan are accepted.
Section 69-A of the Motor Vehicle Ordinance, 1965 (as amended) is hereby
declared ultra vires of the Constitution of Islamic Republic of Pakistan, as
a consequence whereof the impugned judgments are set aside. However,
existing arrangements may continue for a period of four months enabling
the Provincial Government to take appropriate legislative/administrative
measures in accordance with Constitution and law. No order as to costs.
CA.224 of 2003, etc.
49
Herein above are the reasons for the short order dated
29th October 2004.
| {
"id": "C.A.224_2003.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE MUNIB AKHTAR
MR. JUSTICE SAYYED MAZAHAR ALI AKBAR NAQVI
CIVIL APPEAL NO. 226-P OF 2018
(On appeal against the judgment dated
17.04.2018 passed by the Peshawar High
Court, Circuit Bench, Chitral in Civil Revision
No. 352/2008)
Rehmat Wali Khan and another
… Appellants
Versus
Ghulam Muhammad and others
…Respondent(s)
For the Appellants:
Mr. Asif Hameed Qureshi, ASC
(Via video link from Peshawar)
For the Respondent (1):
Mr. Muhammad Aamir Malik, ASC
Syed Rifaqat Hussain Shah, AOR
For Respondents (2-6):
Ex-parte
Date of Hearing:
11.04.2023
JUDGMENT
SAYYED MAZAHAR ALI AKBAR NAQVI, J.- Through this appeal under
Article 185(2)(d) of the Constitution of Islamic Republic of Pakistan, 1973,
the appellants have assailed the judgment dated 17.04.2018 passed by the
learned Single Judge of the Peshawar High Court, Circuit Bench Chitral
whereby the Civil Revision filed by the respondents was allowed, the
judgment and decree of the learned Appellate Court dated 12.11.2007
was set aside and the judgment and decree of the learned Trial Court
dated 26.08.2006 was restored.
2.
Briefly stated the facts of the case are that predecessor-in-
interest of the respondents namey Daud Ghulam filed a suit for
declaration and permanent injunction in the PATA Court of EAC, Mastuj
against the appellants claiming ownership of the land measuring 2 ½
CIVIL APPEAL NO. 226-P OF 2018
-: 2 :-
chakorum situated in Boni, Tehsil Mastuj, District Chitral on the basis of an
unregistered deed dated 08.06.1978. The learned Trial Court vide
judgment and decree dated 04.11.1999 decreed the suit. The appellants
filed appeal before the District Judge, Chitral, which was partly accepted
and the case was remanded back to the Trial Court. The learned Trial Court
again decreed the suit vide judgment and decree dated 09.07.2004.
Feeling aggrieved by this judgment, both the parties filed separate
appeals, which were again remanded to the learned Trial Court for a
decision afresh. The learned Trial Court re-heard the parties for the third
time and again decreed the suit vide judgment and decree dated
26.08.2006. Being aggrieved, the appellants filed two appeals before the
learned Appellate Court, which were accepted vide judgment dated
12.11.2007 and decree in favour of the respondents was set aside. This led
to filing of Civil Revision No. 352/2008 before the learned Peshawar High
Court by the respondents. The learned High Court vide impugned
judgment allowed the Civil Revision, set aside the judgment of the
Appellate Court and restored that of the learned Trial Court dated
26.08.2006. Hence, this appeal.
3.
At the very outset, learned counsel for the appellants
contended that the alleged sale deed dated 08.08.1978 was an
unregistered document, therefore, it did not confer any title on the
respondents. Contends that the suit filed by the respondents was barred
by time but the learned High Court did not consider this aspect of the
matter. Contends that the appellant No. 2 Mir Nawaz was a bona fide
purchaser from appellant Rehmat Wali on the basis of registered sale deed
dated 22.10.1988, as such, his rights are protected under the law. Lastly
contends that the impugned judgment is the result of mis-reading and
non-reading of evidence, therefore, the same may be set at naught.
4.
On the other hand, learned counsel for the respondent No. 1
has defended the impugned judgment by stating that the learned High
Court has passed a well reasoned judgment, which is based on correct
CIVIL APPEAL NO. 226-P OF 2018
-: 3 :-
appreciation of the evidence available on the record, therefore, the same
needs no interference.
5.
We have heard learned counsel for the parties at some
length and have perused the available record with their able assistance.
6.
This case has a chequered history. There is no denial to this
fact that the matter is lingering on since 1989 and it was twice remanded
back to the learned Trial Court due to one reason or the other and the suit
of the respondents was thrice decreed by the learned Trial Court. In the
instant round of litigation, the judgment of the learned Trial Court was set
aside by the learned Appellate Court. Probably, it was due to this reason
that the learned High Court has exhaustively examined the evidence to
come to a definite conclusion. It was the claim of the predecessor-in-
interest of the respondents namely Daud Ghulam that he was doing
private business as motor mechanic and was living in Karachi to earn
livelihood for the last 36 years. The appellant No. 1 Rehmat Ali sold the
suit land to the said Daud Ghulam on installments and possession was also
handed over to him in the year 1971. Daud Ghulam regularly paid the
installments and after the completion of the installments, Rehmat Ali
executed an un-registered sale deed dated 08.08.1978 in favour of the
said Daud Ghulam, predecessor-in-interest of the respondents. During trial
proceedings, the appellant Rehmat Ali, vendor, not only admitted the
execution of the sale deed but also admitted the payment of sale
consideration. He also admitted that the possession of the suit property
had also been delivered in consequence of the sale transaction. During the
course of arguments, learned counsel for the appellants had argued that
the appellant No. 2 Mir Nawaz was a bona fide purchaser from appellant
Rehmat Wali on the basis of registered sale deed dated 22.10.1988 (which
was subsequent in time), as such, his rights are protected under the law.
However, we do not tend to agree with the learned counsel. In the case of
Sardar Arshad Hussain Vs. Mst. Zenat-un-Nisa (2017 SCMR 608) the
question whether the un-registered sale deed can be given preference
over the registered one when on the basis of un-registered sale deed
CIVIL APPEAL NO. 226-P OF 2018
-: 4 :-
possession of the property has also been given, came up for consideration
before this Court and this Court while relying on earlier judgments of this
Court on the subject candidly held as follows:-
“A registered deed reflecting transfer of certain rights qua a property
though will have sanctity attached to it regarding its genuineness, and a
stronger evidence would be required to cast aspersions on its correctness
but cannot be given preference over an un-registered deed vide which
physical possession of the property has also been given. Subsection (1) of
section 50 of the Registration Act, 1908 also provides that a registered
document regarding transfer of certain rights in an immovable property
will have effect against every un-registered document relating to the
same property and conferring the same rights in the property as shown in
the registered document but the law has also provided certain exceptions
to the above said provisions of law. If a person being in possession of an
un-registered deed qua transfer of certain rights in property along with
possession of the same he can legally protect his rights in the property
and even a registered deed subsequent in time will not affect his/her
rights. The first proviso to section 50 of the Registration Act, 1908
provides so that such rights in the property can be protected under
section 53-A of the Transfer of Property Act, 1882. Reliance in this regard
can well be placed on the cases of Fazla v. Mehr Dina and 2 others (1999
SCMR 837) and Mushtaq Ahmad and others v. Muhammad Saeed and
others (2004 SCMR 530).”
(underlined to lay emphasis)
7.
Learned counsel for the appellanta had also argued that the
suit filed by the predecessor-in-interest of the respondents was barred by
time. However, we have noted that neither the appellants ever tried to get
an issue framed on this point nor this question was ever considered by the
courts below. Therefore, the same cannot be raised before this Court at
this stage. Even otherwise, when pursuant to the un-registered sale deed,
the respondents were put in possession of the suit land in the year 1971, a
vested right had been created in their favour, which cannot be taken away
merely on the basis of technicalities. In the case of Syed Hakeem Shah Vs.
Muhammad Idrees (2017 SCMR 316) the sale consideration was totally
paid and possession was also delivered to the vendee/transferee but the
registered document could not be executed. This Court held that “Section
53-A of Transfer of Property Act, 1882, in itself creates a right in favour of
transferee to retain possession. Such right comes into existence when
CIVIL APPEAL NO. 226-P OF 2018
-: 5 :-
transferor put the transferee in possession in part performance of the
contract/sale deed. Right created by Section 53-A in favour of the
transferee in possession can be termed as an equitable title which he held
in the property. Where the transferee continued to enjoy a right then the
statute of limitation cannot take away such right as the law of limitation is
not meant to take away an existing right. Right created under Section 53-A
of the Transfer of Property Act, 1882 is an existing right and is not
extinguished by any length of time. Law of limitation does not come in the
way of a transferee in possession when he as a plaintiff, filed his own suit
to preserve his right to retain possession that was granted to him under
Section 53-A of the Transfer of Property Act, 1882.” In this view of the
matter, we are of the view that the learned High Court has correctly
appreciated the material aspects of the case and the conclusions drawn
are in line with the guidelines enunciated by this Court on the subject.
Learned counsel for the appellants has not been able to point out any legal
or factual error in the impugned judgment, which could be made basis to
take a different view from that of the learned High Court.
8.
For what has been discussed above, this appeal having no
merit is dismissed with no order as to costs.
JUDGE
JUDGE
Islamabad, the
11th of April, 2023
Approved For Reporting
Khurram
| {
"id": "C.A.226-P_2018.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE MUNIB AKHTAR
MR. JUSTICE SAYYED MAZAHAR ALI AKBAR NAQVI
CIVIL APPEAL NO. 23-P OF 2017
(On appeal against the judgment dated
12.05.2017 passed by the Peshawar High
Court, Peshawar in Civil Revision No. 699-
P/2013)
Pirzada Noor-ul-Basar
… Appellant
Versus
Mst. Pakistan Bibi and others
…Respondent(s)
For the Appellant:
Mr. Javed Iqbal Gulbela, ASC
(Through video link from Peshawar)
For the Respondent (1):
Mr. Abdul Sattar Khan, ASC
(Through video link from Peshawar)
For other Respondents:
Ex-parte
Date of Hearing:
29.03.2023
JUDGMENT
SAYYED MAZAHAR ALI AKBAR NAQVI, J.- Through this appeal under
Article 185(2)(d) of the Constitution of Islamic Republic of Pakistan, 1973,
the appellant has assailed the judgment dated 12.05.2017 passed by the
learned Single Judge of the Peshawar High Court, Peshawar whereby the
Civil Revision filed by the respondent No. 1 was allowed, the judgments
and decrees of the learned two courts were set aside and the suit of the
respondent No.1/plaintiff was decreed.
2.
Briefly stated the facts of the case are that respondent Mst.
Pakistan Bibi was married to one Noor Muhammad Khan in the year 1967.
She filed a suit on 23.12.1998 seeking declaration to the effect that she is
the owner of the suit property measuring 122 kanals 5 marlas situated in
Mouzas Gambti, Tolkai and Qila Sher Pao, Tehsil Tangi through dower
deed dated 09.04.1967 and the defendants have nothing to do with the
CIVIL APPEAL NO. 23-P OF 2017
-: 2 :-
suit property. She also sought correction in the revenue record and sought
permanent injunction against the defendants not to interfere in the
possession of the plaintiff. It was averred by the respondent/plaintiff that
her marriage took place with Noor Muhammad Khan, predecessor-in-
interest of the defendant Nos. 1 – 9 in the year 1967 and at the time of
Nikah, the said Noor Muhammad transferred the suit property being
owner in the name of plaintiff. She also claimed that after the Nikah and
dower, she became full owner of the suit property and also took
possession but being a Parda Nashin Lady she was unaware that the
dower deed is not incorporated in the revenue record. It was further
averred that the defendants are taking benefit of the wrong entries in the
revenue record and transferred certain property in their name vide
inheritance mutation Nos. 41 & 42 and also want to transfer the suit
property in their name. The defendants did not join the trial proceedings
and were declared ex-parte. Vide judgment and decree dated 24.01.2000,
the suit of the respondent/plaintiff was decreed ex-parte. The
appellant/defendants sought setting aside of the ex-parte decree, which
was accepted by the First Appellate Court, who vide order dated
29.05.2007 remanded the matter back to the Trial Court with the direction
to give an opportunity of hearing to defendants. Ultimately, vide judgment
and decree dated 31.07.2008, the suit of the respondent/plaintiff was
again decreed. The appellant preferred appeal but the same was dismissed
vide judgment dated 31.05.2010. The appellant then filed Civil Revision
before the Peshawar High Court, which was accepted and the matter was
again remanded to the Trial Court to record the cross-examination of the
material witness RPW-8 and decide the case on its own merits. The
learned High Court also directed to consider the evidence of the alleged
tenants examined as PW-5 to PW-7 in the light of the revenue record.
After post-remand proceedings, the learned Trial Court dismissed the suit
of the respondent/plaintiff vide judgment dated 19.12.2012. Being
aggrieved, she challenged the same before the First Appellate Court but it
also met the same fate vide order dated 23.07.2013. Then she filed Civil
CIVIL APPEAL NO. 23-P OF 2017
-: 3 :-
Revision No. 699-P/2013 before the learned Peshawar High Court, which
has been allowed vide impugned judgment. Hence, the instant appeal.
3.
At the very outset, learned counsel for the appellant
contended that the respondent No. 1 has claimed the property as dower
but instead of seeking her remedy before the Family Court, she has filed
the civil suit, which was not maintainable. Contends that the Nikah Nama
was not authenticated document because neither any oral nor
documentary evidence has been produced by the respondent/plaintiff in
this regard. Contends that the learned High Court failed to take notice that
according to Articles 103/104 of the Limitation Act, the time of limitation
started from the year 1974 when the husband of the respondent died,
therefore, the suit of the respondent/plaintiff was hopelessly barred by
time. Lastly contends that the impugned judgment is the result of
misreading and non-reading of the evidence, therefore, the same may be
set at naught.
4.
On the other hand, learned counsel for the respondent No. 1
defended the impugned judgment by stating that the learned High Court
has passed a well reasoned judgment, which is based on correct
appreciation of the evidence available on the record, therefore, the same
needs no interference.
5.
We have heard learned counsel for the parties at some
length and have perused the available record with their able assistance.
6.
This case has a chequered history. There is no denial to this
fact that the matter is lingering on since 1998 and it was thrice remanded
back to the learned Trial Court due to one reason or the other. In the first
two rounds, the suit of the respondent/plaintiff was decided in her favour
and the same was decreed. It was in the third round that the learned Trial
Court dismissed the suit of the respondent/plaintiff, which judgment was
upheld by the learned Appellate Court. Probably, it was due to this reason
that the learned High Court has threadbare examined the evidence to find
out as to what was the reason that the learned two courts below in the
instant round of litigation have decided the case against the
respondent/plaintiff. It was the case of the respondent that she is owner
CIVIL APPEAL NO. 23-P OF 2017
-: 4 :-
in possession of the suit property through dower deed dated 09.04.1967,
which is Nikah Nama and the same has been exhibited in evidence as
Ex.PW-4/2. It was further claimed that in the revenue record, the suit
property was still in the name of her husband, due to which the
defendants are bent upon to transfer the disputed property in their name
and inheritance mutation Nos. 41 & 42 were wrongly attested. In the said
Nikah Nama, it is clearly mentioned that the suit property was given to the
respondent by her husband Noor Muhammad in lieu of dower in the year
1967. There is no denial to this fact that the said Noor Muhammad was
owner of the suit property and there was no bar on him to transfer the
property to her wife in his lifetime. Although the learned counsel for the
appellant tried to challenge the authenticity of the Nikah Nama before this
Court but it is an admitted position that the same was never objected to
before the lower forums in any round of litigation. It is for the first time
that the learned counsel has raised this question before this Court. This is
settled law that this Court in its appellate jurisdiction would generally not
determine any ground or question of fact that had not been pleaded or
raised by the parties at early stage before the lower court & High Court
and has been for the first time raised in appeal before this Court. The
appellant has no right to raise an absolutely new plea before this Court
and seek a decision on it nor could such plea be allowed to be raised as a
matter of course or right on the pretext of doing complete justice.
Reliance is placed on Wali Jan Vs. Government of KPK (2022 PLC(CS) 336).
Even otherwise, we have noted that in the very plaint of the appellant
before this Court, this fact has been admitted in para ‘E’. The learned High
Court has rightly held that the Nikah Nama is a 30 years old document and
according to Articles 100 & 79 of the Qanun-e-Shahadat Order, 1984, the
presumption of correctness is attached to it. The land in question was in
exclusive ownership of the respondent and she used to receive Ijjara from
the tenants. The two tenants of the respondent namely Israr-ud-Din (RPW-
6) and Noor Muhammad (RPW-7) appeared in the witness box and stated
on oath that they are cultivating the suit property for the last 40 years on
behalf of the respondent. They also admitted that they are paying Ijjara to
CIVIL APPEAL NO. 23-P OF 2017
-: 5 :-
the respondent. Learned counsel for the appellant could not show us
anything, which could suggest that the said tenants were ever approached
by the appellant for payment of Ijjara even after the death of Noor
Muhammad. The witness produced by the appellant namely Maqsood
Ahmed also admitted that the property in question belonged to the said
Noor Muhammad and that the respondent was his wife. So far as the
question of limitation is concerned, the learned counsel argued that
according to Articles 103/104 of the Limitation Act, 1908, the time of
limitation to file a suit started from the year 1974 when the husband of
the respondent died, therefore, the suit of the respondent/plaintiff was
hopelessly barred by time. However, we do not tend to agree with the
learned counsel. Article 103 speaks about the time period of three years
by a muslim for exigible dower (mu’ajjal) “when the dower is demanded
and refused or where, during the continuance of the marriage no such
demand has been made when the marriage is dissolved by death or
divorce.” Whereas Article 104 speaks about the time period of three years
by a muslim for deferred dower (mu’wajjal) “when the marriage is
dissolved by death or divorce.” Admittedly, the property was in the
exclusive possession of the respondent and the tenants were also paying
Ijjara to her. The respondent never said that she did not receive the dower
rather it was her claim that she is enjoying the proceeds/fruit of the land.
Therefore, the matter in-fact related to wrong entries in the revenue
record and the same in no way can be termed as a matter relating to
dower. The learned High Court by placing reliance on the judgment of this
Court reported as Abdul Sattar Khan Vs. Rafiq Khan (2000 SCMR 1574) and
Articles 120 and 144 of the Qanun-e-Shahdat Order, 1984 has rightly held
that the period of six years is to be counted from the date when the right
to sue accrued. In these circumstances, neither the suit of the respondent
can be termed as barred by time nor she had to approach the learned
Family Court for redressal of her grievances. The learned High Court has
rightly held that respondent was a Parda Nashin Lady and under no
circumstances it can be presumed that she had the knowledge that after
the Nikah and the Nikah Nama, the registration as well as the
CIVIL APPEAL NO. 23-P OF 2017
-: 6 :-
incorporation in the revenue record was mandatory. Under the bona fide
belief, in our part of the world, the presumption of completeness of
transaction, after the execution of Nikah Nama is there and since the Ijjara
was being received by her, as such, she was under bona fide belief that
during the lifetime of Noor Muhammad as well as after his death, the
transaction is complete and she is the owner of the property in question.”
7.
For what has been discussed above, we are of the view that
the learned High Court while passing the impugned judgment has
scrutinized the evidence in its true perspective, which being well reasoned
does not warrant interference. Consequently, this appeal having no merit
is dismissed.
JUDGE
JUDGE
Islamabad, the
29th of March, 2023
Approved For Reporting
Khurram
| {
"id": "C.A.23-P_2017.pdf",
"url": ""
} |
P
t
*1
(APPELLATE JURISDICTION)
PRESENT
MR. JUSTICE GULZAR AHMED, CJ
MR. JUSTICE IJAZ UL AHSAN
MR. JUSTICE MUNIB AKHTAR
(p4-)
304 & 3
—__a_ac.aau,
499, 3O0
06 OF 2020
AGAINST JUDGMENT DATED 14.10.2014 OF PESHAWAR
HIGH COURT, PESHAWAR, PASSED IN WRIT PETITIONS
Na 390-p OF 2012, ETC.
Deputy
Director,
Finance
&
Administration FATA through Additional
Chief Secretary, FATA Peshawar & others
Additional Chief Secretary FATA, FATA
Secretariat, Warsak Road, Peshawar &
others
Secretary, Govt. of K.P. Agriculture,
Livestock
&
Dairy
Development
Cooperatives & Fisheries, Peshawar &
others
Govt. of KPK through Chief Secretary, Civil
Secretariat, Peshawar and others
Govt. of K.P. through Chief Secretary,
Peshawar & others
Province of KPK through Secretary Health
Department Peshawar & others
Govt. of KPK through Secretary Health,
Peshawar and others
Govt. of KPI< through Secretary Health,
Peshawar and others
Govt. of KPK through Chief Secretary,
Peshawar
Govt. of KPK through Secretary Higher
Education, Peshawar & others
Additional Chief Secretary FATA, FATA
Secretariat, Peshawar & others
Govt. of KPK through Chief Secretary
Peshawar & others
Additional Chief Secretary FATA, FATA
Secretariat Peshawar & others
Govt. of KPK through Chief Secretary
Peshawar & others
Directorate of Livestock & Dairy
Development FATA through its Director,
FATA Secretariat, Peshawar & others
Additional Chief Secretary FATA, FATA
Secretariat, Peshawar & others
(in CA 23112020)
(in CA 23312020)
(in CA 23512020)
(in CA 23612020)
(in CA 23812020)
(in CA 24112020)
(in CA 24212020)
(in CA 24312020)
(in CA 25612020)
(in CA 26012020)
(in CA 26212020)
(in CA 26312020)
(in CA 26412020)
fin CA 26612020)
(in CA 27812020)
fin CA 279/2020)
.,. *
El 1
294. 29_5 296, 9 97 299 300 304 & 006 OF2020 264. 266. 278. 279. 281,
2
Additional Chief Secretary FATA, FATA
Secretariat, Peshawar & others
Govt. of K.P. through Chief Secretary,
Peshawar & others
Govt. of KPK through Chief Secretary
Peshawar & others
Additional Chief Secretary, FATA , FATA
Secretariat, Peshawar & others
Additional Chief Secretary, FATA , FATA
Secretariat, Peshawar & others
Additional Chief Secretary, FATA , FATA
Secretariat, Peshawar & others
Additional Chief Secretary, FATA , FATA
Secretariat, Peshawar & others
Additional Chief Secretary, FATA , FATA
Secretariat, Peshawar & others
Additional Chief Secretary, FATA , FATA
Secretariat, Peshawar & others
Additional Chief Secretary, FATA , FATA
Secretariat, Peshawar & others
Additional Chief Secretary, FATA , FATA
Secretariat, Peshawar & others
Additional Chief Secretary FATA, FATA
Secretariat, Peshawar & others
Govt. of KPK through Secretary Health
Department Peshawar & others
Secretary Health Service, FATA Secretariat
Warsak Road, Peshawar & others
Govt. of KPK through Chief Secretary,
Peshawar and others
VERSUS
Dr. Lal Marjari & another
Sher Farooq
Barkat Ali & others
Lad Rehman & others
Syeda Humaira Sultan & others
Muqadar Shah & others
Nazeerullah and others
Muhammad Farooq and others
Muhammad Waris Khan
Umar Muhammad Farooq & others
Gui Wali Shah & others
Salih Shah & another
Ria.z & another
Irshad Hussain & others
Dr. Sajjad ur Rehman & others
Farzan UIlah & others
Zaher Ud Din
Saida Rehman
Muhammad Tahir Afridi
Ijaz Hussain & another
Alipur Khan
Qimat Khan
(in CA 28112020)
(in CA 28612020)
(in CA 28712020)
(in CA 29012020)
(in CA 29112020)
(in CA 29212020)
(in CA 29312020)
(in CA 29412020)
(in CA 29512020)
(in CA 29612020)
fin CA 29712020)
(in CA 29912020)
fin CA 30012020)
fin CA 30412020)
fin CA 30612020)
Appellants
fin CA 23112020)
fin CA 23312020)
(in CA 23512020)
(in CA 23612020)
(in CA 23812020)
(in CA 24112020)
(in CA 24212020)
(in CA 24312020)
(in CA 25612020)
fin CA 26012020)
(in CA 26212020)
(in CA 26312020)
(in CA 26412020)
(in CA 26612020)
fin CA 27812020)
(in CA 27912020)
(in CA 28112020)
(in CA 28612020)
(in CA 28712020)
(in CA 29012020)
(in CA 29112020)
(in CA 29212020)
1
-
CIVIL APPEALS NO232. 233. 235, 236, 238, 241. 242, 243, 256, 260, 262, 263, 264, 266. 278, 279, 281,
286, 287, 290, 297, 292, 293, 294, 295, 296, 297, 299. 300.304 & 306 OF 2020
3
Sher Alam & another
(in CA 29312020)
Naikdar Khan
(in CA 29412020)
Yousaf Khan & another
(in CA 29512020)
Wall Khan
(in CA 29612020)
Saifur Khan & another
(in CA 29712020)
Nazir Gui & others
(in CA 29912020)
Nadeem Ahrnad & others
(in CA 30012020)
Muhammad Zada & another
(in CA 30412020)
Mst. Saeeda Rehman
(in CA 30612020)
Respondents
For the Appellants Mr. Shumail Ahmad Butt, Advocate
General Khyber Pakhtunkhwa.
Mr. Atif Ali Khan, Addl. A.G. KPK
Barrister Qasim Wadood, Addl.A.G. KPK
with Erurn Shaheen, DD, HED
Mr. Asif Khan, Litigation Officer, HED.
Mr. Amin Jan, AD, Fisheries
Mr. Guizar Mahmood, AD Fisheries KPK.
Engr. Falak Niaz, AD(Dost)
Rajbar Khan, SDO, PHE, KPK
Mr. Sadullah, Asstt. Secretary, BOR, KPK
Mr. Fahim Ullah Khan, Sr. Law Officer,
KPPSC
Mr. Assad Ullah Khan, SO, P&D
Department.
Mr. Amanat Ullah Qureshi, Dy. Secy.
Finance Deptt. KPK
For the Respondents
Mr. Khalid Rahman, ASC
(in CA .286/2020)
R-2 In Person
(in CA .231/2020)
Haji Muhammad Zahir Shah, AOR
(in CA .233/2020)
Mr. Afrian Karim Kundi, ASC
Syed Rifaqat Hussain Shah, AOR
(in CA .235/2020)
Mr. Liaquat Ali Tareen, ASC
Syed Rifaqat Hussain Shah, AOR
(in CA.241 and 30012020)
Mr. Saleem Ullah Ranazai, ASC
(in CA .242/2020 and 24312020)
Mr. Nasir Mehmood-P, ASC
(in CA. 6412020)
Mr. Muhammad Asif Yousafai, ASC
(in CA .262/2020 and CA28212020)
Mr. Waseem ud Din Khattak, ASC
(in CA.27812020 and CA.27912020)
Mr. Muzammil Khan, ASC
Syed Haziq Ali Shah, ASC
(in CA .260/2020)
R-1 In Person (w/o enter appearance)
- -
I
--
CWTh APPEALS NO. 23I, 233 235, 236, 238, 241. 242, 243, 256. 260, 262, 263, 264, 266, 278 279, 281,
286, 287, 290, 291, 292, 293. 294. 295, 29 .6, 297, 299. 300.304 & 306 OF 2020
(in CA.26312020)
Mr. Muhammad Asif, ASC
(in CA .266/2020)
Mr. Muhammad Munir Paracha, ASC
Syed Rifaqat Hussain Shah, AOR
CA .287/2020
Mr. Asad Jan, ASC
CA .299/2020
N.R.
CA .236/2020, CA23812020,
CA .281/2020, CA .290.297/2020,
CA.30412020 and CA30612020.
Date of Hearing 25.11.2020
JUDGMENT
JJAZ UL ABSAN, J-. Through this single
judgment, we intend to decide Civil Appeals No.23 1, 233,
235, 236, 238, 241, 242, 243, 256, 260, 262, 263, 264, 2661
278, 279, 281, 286, 287, 290, 291, 292, 293, 294, 295, 296,
297, 299, 300, 304 & 306 of 2020, as they involve a common
question of law.
2.
Through the instant Appeals, the Appellants have
challenged the impugned Judgments dated 14.10.2014
passed in Writ Petitions No.390-P Of 2012, etc by the
Peshawar High Court, Peshawar. The Respondents had,
through the Constitutional Petitions, sought the
regularization of their services, which was allowed.
3.
The brief facts giving rise to this us are that the
Respondents were appointed on contract basis against
different posts in the erstwhile FATA. The Respondents on
different dates received termination notices and, certain
others were appointed in their place. The said steps were
assailed before the Peshawar High Court by way of
I
CIY LAPPEALS NO,231, 233, 235, 236. 23$.241 242, 243 256, 260, 262. 263. 264, 266 278, 279. 281.
&
28& 287, 290.291,292.293. 294. 295, 296, 297,299, 300.304 & 305 012020
Constitutional Petitions which were allowed vide order of the
High Court dated 05.10.2016. The said judgment of the High
Court was challenged before this Court. This Court set aside
the judgment of the High Court and remanded the matter
back to the High Court for decision afresh vide order of this
Court dated 28.11.2018. The High Court vide the impugned
judgment allowed the Constitutional Petition of the
Respondents. As a result, the Appellant-Department was
ordered to regularize the services of the Respondents
4. Leave to appeal was granted by this Court vide
order dated 09.03.2020 in the following terms: -
"The learned Additional Advocate General,
Khyber Pakhtunkhwa contends that all the
Respondents in these petitions were employed either on
project posts or on contract basis or were employees
under Section 42 of the Companies Act, 2017 and in no
circumstances their services were to be regularized. He
further contends that in all impugned judgments, the
learned High Court has merely allowed writ petitions on
basis of similarly placed persons, but without at all
adverting to the facts and circumstances of each and
every case separately and without applying its mind to
the same. He adds that even the laws under which
their appointments were made were not adverted to. He
submits that the Respondents who are employees on
projects or contract employees or Section 42 employees
were not liable to be regularized and thus their
regularization by the learned High Court through the
Impugned Judgment in these petitions was altogether
illegal. In support of the contentions, the learned law
officer has referred to a three-member judgment of this
Court dated 24.06.2014 passed in Civil Appeal No. 687
of 2014 (Government of Khyber, Agriculture, Livestock
CIVIL APPEALS NO.232. 233, 235, 236, 238. 24), 242, 243, 256, 250. 262, 263, 264, 266, 278. 279, 287,
286, 287, 290. 291 292, 293, 294, 295, 296, 297, 299 300, 304 305 OF 2020
and Cooperative Department through its Secretary and
others v Ahmad Din and another).
2.
We note that some of the petitions are time barred
and in one of the petitions even no condonation of delay
has been filed. The learned Law Officer states that such
will be done by the petitioners.
3.
The contentions raised by the learned Additional
Advocate General, Khyber Pakhtunkhwa need
consideration. Therefore, subject to limitation, leave to
appeal is granted in these petitions to consider inter alia
the same.
5. The learned Additional Advocate General, Khyber
Pakhtunkhwa (hereinafter referred to as "KP") submits that
the Respondents were employed on contract basis against
project posts, hence, their employment was dependant on the
life of the project. He further contends that the learned High
Court erred in law by extending the application of the KP
Employees (Regularization of Services) Act, 2009 (hereinafter
referred to as "2009 Act") to the Respondents who were
employees of different departments in FATA and hence were
not covered by the provisions of the 2009 Act in terms of
Article 247(3) of the Constitution of the Islamic Republic of
Pakistan (hereinafter referred to as "Constitution"). Further,
that the jurisdiction of the High Court was specifically barred
to deal with the controversy considering the provision of
Article 247 of the Constitution as it existed at the relevant
time and was then a part of the Constitution. He adds that
the Presidential Order No. 13 of 1972 relied upon by the
learned Counsel for the Respondents only provides relief to a
specific class of employees, which was different and distinct
C0L APPEALS M231. 233, 235, 236, 238, 241, 242, 243, 256, 260, 262, 263, 264, 266, 278, 279, 281.
7
286. 287, 290 292, 292, 293. 294. 295. 296, 297, 299 300 304 &306 OF 2020
from the class under which the Respondents fell. Further, the
High Court has erred in law by misapplying Section 19 of the
Civil Servants (Amendment) Act, 2005.
6.
Learned Counsel for the Respondents mainly
argued that the Respondents ought to be treated at par with
other employees who have been regularized. He further
contends that under the 2009 Act, the Respondents should
be regularized as they were employed before the
commencement date of the 2009 Act. Further, the High Court
was vested with jurisdiction to adjudicate upon matters
related to FATA in light of the 25th Amendment. It has been
further contended that the Respondents were regularized
because of certain letters of the Government which allowed
regularization of certain employees, hence, on the same score,
the Respondents ought to be regularized as of right.
Moreover, most of the Respondents have been serving the
Appellant-Department satisfactorily, hence, they deserve to be
regularized on that score too.
7.
The questions which are before this Court for
determination are as follows:-
1. Could the High Court apply the 2009 Act on
FA TA/PA TA P
11. Could the High Court exercise jurisdiction
in matters related to FATA?
iii.
What was the effect of Presidential Order
No. 13 of 1972?
COULD THE HIGH COURT APPLY THE 2009 ACT ON
FATA / PATA?
CW!LAPI'EALS1i0.231 233 235, 236, 238, 242, 242, 243. 256 260, 262, 263, 264, 266. 278. 279, 281.
8
•
286 287, 290. 297. 292, 293. 294, 295, 296. 297, 299. 300.304 &306 OF 2020
8. The learned High Court has held in the impugned
judgments that all the Respondents were employed before the
cut-off date of the 2009 Act. Further, that, Section 3 of the
2009 Act provides a mechanism of regularization of
employees' subject to the fulfillment of certain conditions. In
this regard, the Preamble of the 2009 Act is reproduced below
for ease of reference as:-
WHEREAS it is expedient to provide for the
appointment and regularization of services of certain
employees appointed on ad-hoc basis against civil posts
and contract basis against project posts in the Province
of the Kht,sber Pakhtunkhwa" [Underlining is ours]
The aforenoted preamble provides this Court with
an insight of what the legislature intended when it
promulgated the 2009 Act. The said preamble provides an
insight into the purpose and scope of the object of
regularization of certain categories of employees of the
Province of Khyber Pakhtunkhwa. Nowhere in the said
preamble does it provide that the 2009 Act shall be applicable
on FATA/PATA. The provision which addresses the question
of applicability of the 2009 Act relates to employees of KP and
not of FATA/PATA. Section 2 provides definitions which must
be taken into consideration while applying the 2009 Act.
Section 2(d) specifically defines "Government" as the
Government of KP. Therefore, we are unable to agree with the
learned High Court in its application of the 2009 Act to
FATA/PATA and resultantly, to the Respondents.
I
CIVIL APPEALS NO.232. 233. 235 236. 238. 241. 242. 243. 256, 260, 262, 253. 264, 20,278, 279. 282.
•
286. 287. 290, 291. 292, 293. 294, 295, 296. 297. 299, 300. 304 &306 OF 2020
9. Even otherwise, it is worth noting that at the time
when the Respondents were employed and subsequently
when they were relieved; the 25th Amendment to the
Constitution was not in force. As such, the applicable
provision of the Constitution was Article 247 which provided
an elaborate mechanism for the Parliament on the extension
of the law to FATA/PATA. In this regard, Article 247(3) is
reproduced as:-
"(3) No act of a[Majlis-e-Shoora (Parliament)] shall
apply to any Federally Administered Tribal Area or to
any part thereof, unless the President so directs, and no
Act of a[MajliseShoora (Parliament)] or a Provincial
Assembly shall apply to a Provincially Administered
Tribal Area, or to any part thereof, unless the
Governor of the Province in which the Tribal Area is
situate, with the approval of the President, so directs;
and in giving such a direction with respect to any law,
the President or, as the case may be, the Governor, may
direct that the law shall, in its application to a Tribal
Area, or to a specified part thereof have effect subject to
such exceptions and modifications as may be specified
in the direction."
It is nobody's case that the provisions of the 2009
Act were extended to FATA / PATA by following the alorenoted
provisions of the Constitution. As such, the learned High
Court could not have extended the application of the 2009
Act, or any Act of Parliament or the Provincial Assembly for
that matter, to FATA/PATA on the touchstone of the principle
of casus omissus. The said principle categorically provides
that, where the legislature has not provided something in the
language of the law, the Court cannot travel beyond its
jurisdiction and read something into the law as the same
264, 206, 278, 279, 281.
10
would be ultra vires the powers available to the Court under
the Constitution and would constitute an order without
jurisdiction. The same would also be against the principle of
Trichotomy of Powers upon which the State functions. All
three organs of the State have been given specific powers
under the law and as such, the said powers cannot be
overstepped. We are therefore inclined to hold that the
learned High Court in the impugned judgments has travelled
beyond its jurisdiction in applying the 2009 Act to the
Respondents which action is ex facie erroneous, beyond
lawful authority and without jurisdiction.
COULD THE HIGH COURT EXERCISE JURISDICTION IN
MATTERS RELATED TO FATA/PATA?
10. The 25th Amendment was passed in the National
Assembly on 24.05.2018 and subsequently by the Senate on
25.05.2018. Section 9 of the Constitution (Twenty-Fifth
Amendment) Act, 2018 omitted Article 247 of the Constitution
with effect from 04.06.2018 and, inter alia, merged
FATA/PATA in the province of KP. The Respondents were
employed before the incorporation of the 25 th Amendment in
the Constitution and cannot be given retrospective effect. As
such, Article 247 applies to the matter at hand because the
Respondents were appointed at a time when the said Article
was in force and had not been omitted from the Constitution.
It has not even been argued and indeed could not be argued
that the 25 th amendment to the Constitution has
retrospective effect.
N
CIVIL APPEALS /10231. 233. 235, 236, 238, 242. 242. 243 256, 260, 262, 261 264, 265, 278, 279, 282,
286, 287.290. 292 292, 293, 294. 295. 296, 297, 299. 300, 304 6,306 OF 2020
11. Article 247 of the Constitution, inter alia, provided
that the High Court or the Supreme Court could not exercise
jurisdiction in a Tribal Area i.e. FATA/PATA unless the
Parliament provided otherwise. The only exception provided in
the said sub-article is that nothing would affect the
jurisdiction of the High Court or Supreme Court in relation to
a Tribal Area immediately before the commencing day. The
said exception does not apply in the instant controversy,
therefore, the main focus of our scrutiny will be Article 247(7)
inasmuch as it provides for an ouster of jurisdiction. For
ease of reference, Article 247(7) (as it was then) is reproduced
below as:-
"(7) Neither the Supreme Court nor a High Court shall
exercise any jurisdiction under the Constitution in relation to
a Tribal Area, unless a[MajliseShoora (Parliament)] by law
otherwise provides:
Provided that nothing in this clause shall affect the
jurisdiction which the Supreme Court or a High Court
exercised in relation to a Tribal Area immediately before the
commencing day."
A bare perusal of the abovementioned Article of
the Constitution makes it clear that the lawmakers had
specifically ousted the jurisdiction of the Supreme Court and
the High Court in the exercise of jurisdiction under the
Constitution in relation to FATA/PATA. The learned High
Court in the impugned judgments has placed reliance on the
25th Amendment and exercised jurisdiction concerning the
controversy which is before this Court. As stated above, the
Respondents were appointed before the said Amendment was
introduced. As such, the 25th Amendment could not have
264. 266. 278. 279. 281.
12
been given retrospective application. Consequently, the
learned High Court, instead of examining the merits of the
cases of the Respondents on the touchstone of Article 247,
went beyond its powers and applied the 25 1h Amendment
retrospectively. Giving the 25 th Amendment retrospective
application would open a floodgate of unnecessary legal and
constitutional complications which can and should be
avoided by giving effect to the letter and spirit of the
Constitution and the intent and purpose of Article 247 and its
subsequent omission by way of the 25 th amendment to the
Constitution. Reliance in this regard is placed on the case of
Hidayat Ullah V. Muhammad Yourjas and Others [PLD 2020
SC 3621 the relevant part of which is reproduced below as:-
"5. Learned Advocate General has supported those
submission with the added ground that the orders passed by
the relevant fora under the FCR are all dated prior to the 251h
Constitutional Amendment which came to effect on
31.05.2018. Thus, the recommendations of the Council of
Elders dated 15.12.2015 until the decision of the review by
the PA TA Appellate Tribunal on 24.04.2018 predate the said
Constitutional Amendment. Consequently, at the relevant
time when the judgment was delivered, the provisions of
Article 24 7(7) of the Constitution were in force.
"6. The ouster of jurisdiction of the High Court under
Article 199 of the Constitution is specific for the reason that
cause of action for civil relief of such Sersaya as well as the
residence of the parties and the locus of the corpus of the
dispute, namely, the Coal mines are located within the Kohat
Frontier Region. Consequently, the High Court had no
jurisdiction to entertain the writ petition. Indeed, the aspect
of the case has not been considered in the impugned
judgment at all..."
12.
It may also be noted that the Supreme Court and
High Court (Extension of Jurisdiction to Federally
Y - --
•
PLIL APPEALS NO.232. 233,235. 236. 238. 242, 242. 243. 256. 260. 262. 263.
66 278
2
2.
, 279. 281.
*
286. Z 290. 291, 292, 293. 294, 295. 296. 297. 299, 300, 304& 306 OF 2020
64
13
Administered Tribal Areas) Act, 2018 was to be made
applicable from a date which was to be notified by the Federal
Government. However, no such date had been notified at the
time the High Court took cognizance of the matter and in any
event, it did not consider or apply its judicial mind to this
material aspect of the us before it. Even otherwise, if the said
Act is taken to be applicable from the date of its
promulgation, the Respondents cannot take the benefit of its
provisions because the Respondents were admittedly
employed before the said Act was promulgated while Article
247 of the Constitution still held the field. As such, the
learned High Court did not have jurisdiction to entertain the
petitions in question. We note that, in one of the impugned
judgments, the learned High Court has candidly conceded
that it is unaware whether the 2009 Act has been made
applicable to FATA/PATA or not. Given this, we are unable
see how and on what basis the learned High Court proceeded
to apply the said Act to the case of the Respondents.
WHAT WAS THE EFFECT OF PRESIDENTLAJJ ORDER NO.
13 OF 1972?
13. We note that some of the Respondents seek the
benefit of the Centrally Administered Tribal Areas (Employees'
Status) Order, 1972 ("Presidential Order No. 13 of 2012").
In essence, the learned Counsel for the said Respondents has
claimed that since all the employees recruited in FATA are
deemed to be employees of the Provincial Government on
deputation with the Federal Government, thus, the benefit of
the 2009 Act should automatically extend to them. In this
çJ%OL APPEALS N0,231. 233, 235, 236. 238, 241, 242. 243, 256, 260, 262, 263, 264. 266, 278, 279, 281.
14
•
286. 287, 290. 291, 292, 293, 294 295, 296.297. 299 300 304 & 306 OF 2020
regard, the Respondents have placed reliance on Paragraph 3
of the Presidential Order which reads as follows:-
"3. Status of the employees of the Centrally
Administered Tribal Areas:- Notwithstanding anything
contained in their conditions of service, the employees shall,
as from the appointed day, be employees of the Provincial
Government and shall work under the overall administrative
control of the Provincial Government, on the same terms and
conditions of service as respects remuneration, leave and
pension and the same rights as respects disciplinary
matters or tenure of office as were applicable to them
immediately before that day."
A bare perusal of the aforenoted paragraph shows
that the Presidential Order was applicable to those employees
who were already in service on the appointed day. What this
means, in essence, is that the said Presidential Order was
specific, and, as such, its application could not be extended
to cover the Respondents. The matter of interpretation of a
Presidential Order has already been dealt with by this Court.
In this regard, we find substance in the stance taken by the
learned AAG that the Respondents were appointed at a time
which is beyond the applicability of the Presidential Order
which was applicable only to those who were in service at the
time of promulgation of the said Order. The learned AAG has
placed reliance on this Court's Order dated 22.06.20 10 to
conclude that the Respondents were not in service at the time
of promulgation of Presidential Order No. 13 of 1972,
therefore, the same is inapplicable to them. We find that the
learned High Court has erred in law in applying the said
Presidential Order to the Respondents in a universal manner.
Even otherwise, employees of FATA as such cannot be treated
a
1
-.-
CIVIL APPEALS NO.231, 233. 235. 236, 2,38,241, 242, 243, 255, 260, 262, 263, 264, 266, 278, 272 281,
286, 287, 290, 291, 292, 293, 294, 295, 296 297, 299, 300,304) 306 07 2020
as provincial employees as the same came under the control
of the Federal Government and not the Provincial
Government. For the said reasons, we are unfortunately
unable to agree with the learned High Court in its findings to
the effect that the Respondents were under the control of the
Provincial Government and as such, came under the
umbrella of the 2009 Act.
14. The learned High Court has in the impugned
judgments held that, by not regularizing the Respondents
and by regularizing others, the Appellants have committed
discrimination. The said finding is not based on any legal or
factual basis. Firstly, even when others have been
regularized, the circumstances and terms and conditions of
their employment were different. If some have illegally been
regularized, the petitioners cannot claim equal treatment with
them. If and when the question of legality and validity of their
regularization comes before us, we will pass appropriate
orders after considering the facts, circumstances and merits
of each case. It has been repeatedly held by this Court that
regularization is not a vested right but requires a statutory
basis which is admittedly absent in the instant case. As such,
the present Respondents merely rely on the fact that others
have been regularized and so should they, which is not a
legal ground per se. Where a contractual employee wishes to
be regularized, he must demonstrate statutory basis for such
CS
a claim, in the absence of which, relief cannot be granted
solely on the principle of "similarly placed". Such a course of
Cn'IL APPEALS N0.231, 233, 235. 236, 238, 241, 242, 243. 256, 260. 262, 263. 264, 266 278, 279, 282.
16
•
286, 287, 290, 291, 292, 293. 294. 295. 296, 297. 299 300. 304 & 306 OF 2020
action would tantamount to making one right out of two
wrongs which is not permissible in the law.
CAN THE RESPONDENTS, BEING PROJECT EMPLOYEES,
CLAIM REGULARIZATION BASED ON LONG SERVICE?
15.
It is trite that long service is no ground for
regularization. As stated above, regularization has to be
supported by legislation and is not an automatically accruing
right. Even if we agree with the findings of the learned High
Court that the Respondents have been serving efficiently for
many years, it is worth noting that the fact that the
Respondents were project employees has not been
controverted. As such, Section 3 in its plain language
excludes project employees from the benefit of regularization
under the provisions of the 2009 Act. Therefore, keeping in
view the language of the 2009 Act itself, there appears no
lawful basis for the Respondents to claim beneficial
interpretation of the 2009 Act as the Court cannot overstep
its powers to add language to a statute which the legislature
has not provided.
16.
The Impugned Judgments of the learned High
Court proceed on an incorrect factual and legal premise and
have erroneously applied the law, rules and regulations to the
facts and circumstances of the cases before it. A clear legal
and jurisdictional error in exercise of jurisdiction by the High
Court under Article 199 of the Constitution of the Islamic
Republic of Pakistan is floating on the surface of the record
which makes the judgments unsustainable.
Announced in Court on 2..% .01 fl at
Islamabad
GIVE APPEALS N0.231. 233. 235. 236 238. 241. 242, 243 256. 260. 262. 263. 264, 266, 278. 279. 281,
286,287,290 291.292.293. 294, 995 29r.297299,300 304 306 0? 2020
17. Therefore, for reasons recorded above, we allow
the titled Appeals and set aside the Impugned Judgments of
the Peshawar High Court passed in Writ Petition No.390-P of
2012, etc.
—Not Approved For Reportj4q
| {
"id": "C.A.231_2020.pdf",
"url": ""
} |
-
-.4
V
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
PRESENT:
MR. JUSTICE GULZAR AHMED, HCJ
MR. JUSTICE IJAZ-UL-AHSAN
MR. JUSTICE MUNIB AKHTAR
Civil Appeals No.232, 244, 247, 261 and 282 of 2020
(Against Judgments mentioned in Schedule-1 of this
Judgment).
Civil Appeal No.232 of Government of Khyber Pakhtunkhwa
2020
through Secretary Forest, Peshawar &
Others V. Sher Aman
Civil Appeal No.244 of Government of Khyber Pakhtunkhwa
2020
through Chief Secretary KPK, Peshawar
& Others V. Naeem Khan & Others
Civil Appeal No.247 of Government of Khyber Pakhtunkhwa,
2020
through Secretary Health, Peshawar &
Others V. M. Kamran Khan & Others
Civil Appeal No.261 of Additional Chief Secretary, FATA,
2020
Peshawar & Others V. Bilal Ahmed &
Another
Civil Appeal No.282 of Government of Khyber Pakhtunkhwa
2020 through Secretary Agriculture,
Livestock & Cooperative Department
Peshawar & Others V. Syed M. Iqbal &
Others
Mr. Shumail Ahmad Butt, AG KP
Mr. Atif Ali Khan, Ad AG KP
Barrister Qasim Wadood, Ad AG KP
Ms. Irum Shaheen, DD, HED
Asif Khan, Litigation Officer, HED
Amin Jan, AD, Fisheries
Guizar Mahmood, AD Fisheries KP
Engr. Falak Niaz, AD (Dost)
Rajbar Khan, SDO, PHE, KP
Sadullah, Asst. Secretary, BOR, KP
Faheem Ullah Khan, Sr. LO, KPPSC
Assad Ullah Khan, SO, P&D Deptt.
Amariatullah Qureshi, Dy. Secy. FDKP.
Mr. Shahid Kamal Khan, ASC
Mr. Ahmed Nawaz Chaudhry, AOR
(in CA No. 232 of 2020)
For the Appellant(s):
For the Respondent(s)
Qft4jA,peals No232, 244, 247. 261 and 282 of 2020
2
Date of Hearing:
Mr. Khaled Rehman, ASC fin CA No.
244 of 2020)
Mr. Mukhtar Abmad Maneri, ASC (in
CA No. 247 of 2020)
Mr. Aftab Alam Yasir, ASC (in CA No.
261 of 2020)
Mr. M. Asif Yousafai, ASC (in CA No.
282 of 2020)
25.11.2020
JUDGMENT
IJAZ UL AHSAN. J. - Through this single
Judgment, we intend to decide Civil Appeals (hereinafter
referred to as "CA") No. 232, 244, 247, 261 and 282 of 2020
as they involve a common question of law.
I
2.
Through the instant Appeals, the Appellants have
challenged the judgments of different benches of the
Peshawar High Court mentioned in Schedule I of this
Judgment. The Respondents had, through their
Constitutional Petitions, challenged the decisions of the
I
Appellants to terminate the services of the Respondents from
their respective posts. Their Petitions were allowed, and the
Appellants were ordered to reinstate and regularize the
Respondents against their respective posts.
3.
The necessary facts giving rise to this us are that
the Respondents were appointed on contract basis in different
projects against different posts. Their services were extended
from time to time. They were subsequently terminated from
service on completion of the respective projects in which they
were appointed. They filed Constitutional Petitions to
challenge this action of the Appellants which were allowed
I
El
çjjgjApoeals No.232. 244, 247 262 and 282 of 2020
3
11
and, the Appellants were directed to reinstate and regularize
the Respondents in their respective posts. Certain other
Respondents then filed Constitutional Petitions for similar
treatment which were also allowed, and the Appellants were
ordered to treat the said Respondents at par with others who
had been regularized pursuant to the orders passed by the
High Court. Similarly, in CA No. 282 of 2020, the
Respondents were initially appointed on contract and his
services were regularized w.e.f. 01.07.09 vide order dated
04.02.10. The earlier order of termination of the services of
the said Respondents was withdrawn and they were employed
on a daily wage basis vide order dated 26.02.10. Aggrieved,
they approached the High Court. The High Court disposed of
their petition vide order dated 12.04.16 with direction to the
Appellants therein to reconsider the impugned order. Vide
order dated 31.10.16. Consequently, the Respondents in CA
282 of 2020 were given fresh appointments. They approached
the High Court once again by filing a Writ Petition which was
allowed, and the Appellants were directed to regularize the
Respondents from the date of their initial appointment on
01.07.09 vide order dated 04.02.10.
4. Leave to appeal was granted by this Court vide
order dated 09.03.2020 in the following terms:-
"The learned Additional Advocate General, Khyber
Pakhtunkhwa contends that all the Respondents in these
petitions were employed either on project posts or on contract
basis or were employees under Section 42 of the Companies
Act, 2017 and in no circumstances their services were to be
regularized. He further contends that in all impugned
judgments, the learned High Court has merely allowed writ
petitions on basis of similarly placed persons, but without at
all adverting to the facts and circumstances of each case
separately and without applying its mind to the same. He
0
,
Civil Apaeals No.232, 244, 247, 261 and 282 of 2020
4
U
adds that even the laws under which their appointments
were made were not adverted to. He submits that the
Respondents who are employees on projects or contract
employees or Section 42 employees were not liable to be
regularized and thus their regularization by the learned High
Court through the Impugned Judgment in these petitions was
altogether illegal. In support of the contentions, the learned
law officer has referred to a three-member judgment of this
Court dated 24.06.2014 passed in Civil Appeal No. 687 of
2014 (Government of Khyber, Agriculture, Livestock and
Cooperative Department through its Secretary and others v
Ahmad Din and another).
2.
We note that some of the petitions are time barred and
in one of the petitions even no condonation of delay has been
filed. The learned Law Officer states that such will be done
by the petitioners.
3.
The contentions raised by the learned Additional
Advocate General, Khyber Pakhtunkhwa need consideration.
Therefore, subject to limitation, leave to appeal is granted in
these petitions to consider inter alia the same. The appeal
stage paper books shall be filed within a period of one month
with permission to the parties to file additional documents, if
any. As the matter relates to service, the office is directed to
fix the same expeditiously preferably after three months.
4.
In the meantime, operation of impugned judgment(s)
shall remain suspended."
5. Learned Additional Advocate General Khyber
Pakhtunkhwa (hereinafter referred to as "AAG") appearing for
the Appellants contends that the Respondents were employed
on contract basis, in different projects. As such, they had no
automatic right to regularization. Therefore, the learned High
Court has erred in allowing them regularization on
sympathetic grounds which action has no legal basis. He
maintains that the provisions of the KP Regularization Act
2009 (hereinafter referred to as "2009 Act") did not apply to
the Respondents as the said Act specifically excluded project
employees. The Respondents were employed in projects and
had agreed to the terms and conditions of their contracts
when they were being appointed against their posts. At this
stage, they cannot claim regularization against project posts
because such posts were temporary in nature. He further
U
CivilAppeatsNo232. 244. 247, 261 and 282 of 2020
5
contends that the Respondents in CA 244 and 247 of 2020
were employees of SRSP/PPHI which is a creation of a
Memorandum of Understanding ("MoU") between Sarhad
Rural Support Corporation Limited, a company registered
under the erstwhile Companies Ordinance 1984 vide
registration certificate number 01.01.01 and the Respondents
being employees of the company are governed by the principle
of master and servant. Further, that the Company's project
was closed, and the Respondents did not have any vested
right to be regularized in service of the province, thereafter
6.
The Learned ASC for the Respondents on the other
hand submits that the Respondents were validly appointed to
their respective posts and as such, could not have arbitrarily
been terminated given that the Appellants were satisfied with
their performance. Learned Counsel further submits that
other similarly placed colleagues of the Respondents have
been regularized by the Appellants and there is no reason
why the Respondents should not be regularized. Lastly, it is
submitted that the Respondents have been against their
respective posts working to the entire satisfaction of their
employers and deserve to be regularized.
7.
We have heard the learned AAG and the learned
ASC for the Respondents. It is an admitted position that all
the Respondents were appointed on contract basis, in
different projects in KP. The issues which fall for
determination before this Court are as follows: -
Civil A ppeals No.232, 244, 247. 261 and 282 of 2020
I
(i)
Could the Appellants terminate the services
of the Respondents after the period of the
respective projects in which the Respondents
were appointed had elapsed?
(ii)
Were the Respondents in CA No. 244 and
247 governed by the principle of "Master and
Servant"?
(iii)
What is the effect of the terms and
conditions of the appointment orders of the
Respondents?
(iv)
What would be the effect of the withdrawal of
the regularization order of the Respondents
in CA No. 282 of 2020?
COULD THE APPELLANTS TERMINATE THE SERVICES OF
THE RESPONDENTS AFTER THE PERIOD OF THE
RESPECTIVE PROJECTS IN WHICH THE RESPONDENTS
WERE APPOINTED HAD ELAPSED
8. In CA No. 232 of 2020, the Respondent was
admittedly employed in the erstwhile N.W.F.P Forestry Sector
Project, Peshawar on purely contract basis. His appointment
on contract basis was subject to continuation of the project.
This is evident from the office order dated 06.02.97 issued by
the Conservator of Forests who was also the Director of the
said Project. The words "subject to continuation of the
project" clearly mean that the appointment of the Respondent
was to last till the life of the Project. A perusal of the
document dated 22.05.06 clearly establishes that the said
project was to close on 30.06.06 and the Respondent was
informed that his employment contract would expire
24.06.06. Keeping these facts and circumstances in mind, the
learned High Court could not have "adjusted" the said
1
,
Civil Aovea?s No.232, 244, 247. 261 and 282 of 2020
.
7
Respondent against the permanent post of a Forester, which
was lying vacant in the Forest Department. Such posts are
required to be filled in a transparent manner, after due
advertisement, open competition, a level playing field for all
eligible candidates, the best and most qualified of them being
employed in accordance with a merit list prepared after
fulfilling all necessary testing, interview and short-listing
requirements. There is no concept of "adjusting" employees
against permanent posts without following the process
described above. The High Court cannot step into the shoes of
r
the appointing authority. When the High Court is exercising
jurisdiction under Article 199 of the Constitution of the
Islamic Republic of Pakistan, it cannot extend the scope of a
contract that has been signed by an employee as the same
goes against the spirit of the very concept of contract
employment. The conclusion in this regard reached by the
learned High Court is neither supported by law nor the
relevant rules and is patently erroneous. When an employee
accepts a post in a project, he is aware of the fact that the
project will come to an end on its completion or cessation of
its funding (as the case may be) and with that, his
employment will also come to an end. Forcing the
Government to "accommodate/ adjust" such employees is not
only a transgression of the powers vested with the High Court
under Article 199, but is also a burden on the Government
Exchequer which the court is not at liberty to place. There is
nothing in the order dated 22.05.2006 passed by the
competent authority which is illegal. We are therefore unable
'9
D CM? A ppeots No.232. 244. 247. 261 and 282 of 2020
3
U
to agree with the learned High Court that the Respondent in
CA No. 232 of 2020 should have been adjusted against a
permanent post, more so, when his employment had already
been terminated, in accordance with the terms and conditions
of his contract.
9. The Respondents in CA No. 261 of 2020 were
appointed in the project "FATA Urban Centre Project" by the
World Bank. The said Project was later wound up on
30.06.15, and, the Respondents were relieved from their
services. The learned ASC appearing on behalf of the
Respondents in CA 261 of 2020 contends that since the said
Respondents were appointed after a transparent and fair
process, they ought to have been adjusted against regular
posts created in the subsequently established Municipal
Committee of the erstwhile FATA. The learned High Court has
opined that the constitution of a fresh Committee for fresh
appointments would be "wastage of time and money" and that
the Respondents have a preferential right to serve in the
project till its life. We are unable to understand or agree with
these conclusions reached by the High Court. Firstly, it is not
the domain of the High Court to ascertain what and what
does not constitute wastage of resources. This goes against
the basic principle of separation of powers and entering the
domain of executive policy making which under the scheme of
our Constitution, falls in the domain of the executive. The role
of the courts is to interpret the law and delve in matters
involving policy issues. The learned High Court could not
civil Aooeats No. 232, 244, 247, 262 and 282 of 2020
9
have assumed the role of the executive or a policy maker and
held that constituting a committee for fresh appointments
would have been "wastage of time and resources". If a private
organization or project, or the government thinks fit to
constitute a committee, the only interference which may be
warranted is in exceptional circumstances showing mala fides
and/or arbitrary exercise of power by any of the members of a
committee so constituted. The learned AAG has drawn our
attention to two letters dated 08.12.15 /26.01.16 respectively.
In the said letters, it has clearly been stated that recruitment
must be completed in a transparent and efficient manner and
in accordance with the prevailing rules/ regulations. It is
settled law that in order to join government service, proper
procedures have to be followed which may include inter alia
scrutiny by the Public Service Commission or any recruitment
committee and an open and competitive process. Depriving
other aspiring candidates of an opportunity to seek
employment is neither transparent, nor efficient. Even
otherwise, the letter dated 26.01.16 clearly states that under
the prevailing project policy, transfers/ adjustments could not
be done and, the Director LC}&DD, FATA Secretariat,
Peshawar categorically stated that the process of appointment
against approved posts be started afresh. We are unable to
understand how the learned High Court reached the
conclusion that it did, in the presence of settled law
repeatedly and consistently laid down by this Court that
contract employees have no vested right to be regularized.
The case law referred to by the learned High Court is
Civil Appeals No.232. 244, 247. 261 and 282o[2020
10
distinguishable on facts as well as law and does not in any
manner help the case of the Respondents. The findings of the
learned High Court in this regard are therefore
unsustainable.
WERE THE RESPONDENTS IN CA NO. 244 AND 247
GOVERNED BY THE PRINCIPLE OF "MASTER AND
SERVANT?
10.
The Sarhad Rural Support Program/Peoples
Primary Healthcare Initiative (hereinafter referred to as
"SRSP/PPHI") was created under a MoU between the Sarhad
Rural Support Corporation Limited, a limited liability
company registered under the erstwhile Companies
Ordinance 1984, vide notification dated 01.01.01. The
Respondents in CA No. 244 and 247 of 2020 were employed
against their respective posts in SRSP/PPHI. The
Respondents filed an application before the DSM of PPHI for
regularization of their temporary service. Ultimately, the
Respondents were regularized, however, their orders of
regularization were cancelled on the ground that under the
MoU, there was no provision for regularization of employees.
Aggrieved, they approached the High Court. Their Writ
Petition was allowed vide the impugned judgment and the
Appellants were directed to regularize the Respondents
against their respective posts.
11.
We have gone through the Agreement between the
Government of Khyber Pakhtunkhwa Health Department and
SRSP for the Provision of Primary Healthcare (hereinafter
referred to as "Agreement"). The Agreement states that SRSP
Civil A ppeals No.232. 244, 247. 261 and 282 of 2020
11
is a company incorporated under the Companies Ordinance
1984 having its registered office at House No. 129, Street No.
08, Defence Officers Colony, Peshawar Cantt. The learned
AAG has submitted that the Respondents were employees of
a private company, were paid by it and were never on the
payroll of the Government. There is no provision in the MoU
for regularization of SRSP/PPHI's employees, which is why
the regularization orders of the Respondents were cancelled.
The said fact is supported by findings of the inquiry dated
15.07.16 wherein it has been stated that the order of the
District Health Officer, Peshawar dated 13.06.13 was beyond
his powers and not covered under the rules. The learned
AAG has stated that because of the findings in this inquiry,
order dated 18.08.16 was passed and the status of the
Respondents as civil servants which had been wrongly
conferred by an official who had no power or authority to do
so, was withdrawn and there was no illegality in such action.
Similarly, the Respondent in CA No. 247 of 2020 was
employed in SRSP as Chowkidar. He was relieved from his
services on 12.04.15. He filed a Writ Petition in the Peshawar
High Court which was allowed on the ground that since
Ii
other similarly placed colleagues of the said Respondent had
been regularized, so should he.
12. It is an admitted fact that the Respondents were
I
project employees, who were working for SRSP/PPHI which
is a creation of a MoU between the Government of Khyber
Pakhtunkhwa and the Sarhad Rural Support Corporation
Cm/A ppeals No.232, 244, 247, 261 and 282 of 2020
12
Limited. It was essentially an outsourcing exercise where
funds were to be provided by the Government in lieu of
services rendered by the company by hiring its own staff. For
all intents and purposes, it was an arms length transaction.
The appointment orders of the Respondents mention that
they were appointed on contract in the PPHI project, which
has not been denied by the Respondents' Counsel. The
learned High Court has held that since the Respondent in CA
fl
No. 244 of 2020 had been appointed on regular basis
through a Departmental Selection Committee, therefore, his
regular appointment could not be changed. We are unable to
agree with this conclusion. Firstly, the MoU is the foundation
on which the PPHI project was to be built. We have examined
the said MoU and find that there is no provision/ section
related to regularization of employees therein. Secondly, the
Appellants have corrected the wrong committed by them by
initiating an inquiry and after recording findings, cancelling
the regularization of the Respondents which they are
empowered to do. There was a mistake committed by the
DSM and it was promptly corrected by the Appellants by
issuing the order cancelling the regularization of the
Respondents. The learned High Court has erred in holding
that an inquiry was not conducted. The record shows that a
proper inquiry was conducted. A copy of the inquiry report
was sent to the DHO and DG Health Services vide letter
dated 15.07. 16. A Departmental Appeal was also filed by the
Respondents against orders passed on the basis of such
inquiry report. As such, the conclusions reached by the
Civil A ppeals No.232. 244, 247. 261 and 282 of 2020
13
learned High Court in this regard are contrary to the record
and factually incorrect.
13. Even otherwise, the Respondents were
contractual employees of a project which was governed by a
MoU. They were employees of a corporate entity. In our
opinion, they were governed by the principle of "Master and
II
Servant". The stance taken by the learned High Court is
overly simplistic and against the principles of employment
law. It is the prerogative of the employer to decide the terms
and conditions of an employee's contract. It is not for the
court to step into the shoes of the employer and force him to
employ someone for whom there is no available post and
II
even if there is one, without following due process, procedure
and criteria. The relationship is governed by the principle of
master and servant and except in exceptional
circumstances; disputes arising there from are beyond the
jurisdiction and parameters of the powers of the High
H
Court under Article 199 of the Constitution of the Islamic
Republic of Pakistan. We have asked the learned ASC for
the said Respondents to point us to any rule creating a
right to regularization of the Respondents. He has been
unable to do so. It is trite that regularization cannot take
place without statutory backing. The Respondents, being
H
contract employees, were governed by the principle of
"Master and Servant" and could not approach the High
Court to seek redressal of their grievances. Reliance in this
regard is placed on Government of Khgber
:1
Civil A ppeals No.232. 244. 247. 261 and 282 of2020
14
Pakhtunkhwa, Workers Welfare Board v. Raheel All
Gohar (2021 PLC(CS)N 125 Supreme Court) where in it
was held that:-
"In addition to these issues, we also find ourselves at
odds with the fact that the present Respondents
approached the High Court in its writ jurisdiction to seek
reqularization without there being any law conferring a
right that may have been denied and was sought to be
enforced by way of a petition under Article 199 of the
Constitution. It is settled law that as contractual
employees, the relationship between the Respondents and
the A ppellant is governed by the principle of master and
servant. In these circumstances, the Respondents did not
have the right to approach the High Court to seek
redressal of their grievances relating to regularization. As
noted above, in case of a contractual dispute the
Respondents could have sought appropriate redressal of
their grievances before a competent court of law. However,
only by virtue of being contract employees, no automatic
right of regularization has accrued in their favour."
(Underlining is ours)
WHAT IS THE EFFECT OF THE TERMS AND CONDITIONS
OF THE APPOINTMENT ORDERS OF THE
14. Regularization is a policy matter which necessarily
requires backing of the law. In the absence of any law, policy
or rules, an employee cannot knock on the door of the High
II
Court for regularization of his/her services. The learned High
Court, despite the fact that there is ample material on the
record that establishes that the Respondents had agreed to
the terms and conditions of their contracts, regularized the
services of the Respondents. The Project Policy governing the
projects in which the Respondents were working clearly and
unequivocally states that after the said projects come to an
end, employees working in the said projects would have no
right to claim regularization. The same stipulation is made in
the service contracts of the Respondents. That being the case,
the order of regularization lacked any legal basis or
foundation. Reliance in this regard is placed on the case of
Civil A ppeals No.232, 244, 247. 261 and 282 of 2020
15
Khushal Khan Khattak Universit y through Vice
Chancellor and Others v. Jabran AU Khan and Others
(2021 SCMR 977) wherein, in an identical situation, this
court held as follows:-
"The learned Counsel for the Respondents has not been
able to show us any law which conferred a right upon the
Respondents to be regularized. The assertion of the learned
ASC that since others were regularized, the Respondents
should also be regularized despite there being no statutory
basis has not impressed us. As noted above, the
Respondents could not claim regularization as a matter of
right. Even otherwise, all the appointment orders of the
Respondents clearly state that they would have no right to
claim regularization. Therefore, the Respondents cannot
disown the terms and conditions of their own employment
contracts and claim permanent em ployment when at the
vent' inception of their em ployment they had accepted
contractual employment on the conditions that the y would
have no right to claim regularization". (Underlining is ours)
15.
The aforementioned excerpt makes it amply clear
that the High Court in its Constitutional Jurisdiction cannot
alter the scope of the terms that have been agreed upon by
the parties and put an additional burden upon the employer.
At best, a contract employee can approach the appropriate
forum for recovery of damages against an employer for breach
of contract, if a case is made out against the employer. The
High Court cannot in exercise of constitutional jurisdiction
assume the role of the appointing authority and direct
employers to amend/alter terms and conditions in favour of
employees which have been agreed upon by the said
employee.
16.
It is not denied by either side that all of the
Respondents were appointed on temporary posts as
stipulated in their employment contracts. We note that the
learned High Court has not adverted to this aspect of the
Civil A ppeals No.232, 244, 247. 261 and 282 of 2020
16
case and has simply applied the principle of "similarly placed
employees" to grant relief to the Respondents. It has
specifically been mentioned in the appointment orders of the
Respondents that they cannot claim regularization and
further, that they are employed on contract for a specific
period of time. In this view of the matter, the learned High
Court has incorrectly applied the law to the cases of the
Respondents. We find the view of the learned High Court is
neither supported by the law nor the policy of regularization
and is patently erroneous. Further, it is not in consonance
with the settled principles of law on the subject and is
therefore unsustainable.
17. The Respondents have themselves conceded that
they were employed in different projects on temporary basis
This fact has been admitted before us. The employment of
the Respondents was governed by the Project Policy which
specifically provides that project employees cannot claim
regularization and that the posts in questions would be filled
per the rules of the KPPSC or the DSCs. We are therefore of
the view that the learned High Court has erred in law in
ignoring the Project Policy and ordering regularization of the
Respondents on the basis of vague theories without relying
on or even identifying any statutory instrument which may
have created a right in their favour. Discretionary
Jurisdiction under Article 199 of the Constitution cannot be
exercised in a vacuum. It must be grounded on valid basis,
showing violation of specific and enforceable legal or
Civil A ppeals No.232. 244. 247. 261 and 282 of 2020
17
constitutional rights. The discretion must be exercised in a
structured and calibrated manner with due regard to
parameters put in place by the Constitution as well as this
Court. The impugned judgments are unfortunately lacking
the alorenoted factors and are found to be unsustainable.
WHAT WOULD BE THE EFFECT OF THE WITHDRAWAL
OF THE REGULARIZATION ORDER OF THE
RESPONDENTS IN CA 282 OF 2020?
18.
The Appellant in CA No. 282 of 2020 was
appointed in the project known as Expansion of Breed
Improvement Service in KP. Subsequently, the said project
was closed on 30.06.09 and as per the project policy of 2008,
the Respondent was issued one month prior notice vide order
dated 26.05.09. The project was subsequently converted to
the regular budget vide notification dated 27.01.10 w.e.f.
01.07.09. The Respondent's services were regularized w.e.f.
01.07.09 vide order dated 04.02.10, however, the said
regularization order was cancelled and the Respondent was
appointed on daily wage basis vide order dated 26.02.2010.
Ultimately, the Respondent was given fresh appointment on
regular basis pursuant to an order of the Peshawar High
Court vide order dated 31.10.16. The Respondent filed a Writ
Petition, which was allowed vide the impugned judgment and
the learned High Court ordered regularization from the date
of initial appointment.
19.
We are unable to agree with the conclusions
reached by the learned High Court in the impugned
judgment that he was entitled to be regularized from the date
•
Ciud Appeals No.232. 244, 247. 261 and 282 of 2020
18
of his initial appointment on contract basis. It is settled law
that regularization requires backing of law, rules or policy. In
absence of any of the same, an employee cannot claim
regularization. The learned High Court has regularized the
Respondent w.e.f. 01,07.2009 and has revalidated the office
order dated 04.02.2010. The High Court lacks the power to
pass an order of this nature, for the simple reason that the
order on which the learned High Court has placed reliance to
regularize the Respondent has been cancelled. The effect of
such cancellation is that the said order is no more in the
field. We have examined the order dated 12.04.16 passed in
WP No. 501-P/2013 on which the learned Counsel for the
said Respondents has placed reliance. There is nothing in
the order directing the Appellants to regularize the
Respondents from 01.07.09. The only direction in the said
order is to grant personal hearing to the Respondents. The
Appellants complied with the said order and offered fresh
appointment on the basis of the order dated 31.10.16.
Nothing has been shown to us which could establish any
illegality in the said order. The learned High Court has
transgressed its powers under Article 199 of the Constitution
of the Islamic Republic of Pakistan to revive a document
which is otherwise dead, and confer rights on the
Respondents which otherwise do not exist either in law or in
fact and that too in retrospective effect.
20.
The impugned judgments of the learned High
Court proceed on erroneous grounds have jurisdictional
Civil A ppeals No.232. 244, 247. 267 and 282 of 2020
19
II
errors and are suffering from legal defects which warrant
interference of this Court. The learned Counsel for the
Respondents has been unable to persuade us to endorse
the view taken by the learned High Court which was found
to be legally and factually unsustainable.
21. For the reasons recorded above, these appeals are
allowed. Accordingly, the impugned judgments listed below
in Schedule-I are set-aside.
SCHEDULE-1
COURT
Peshawar High
Court, Peshawar
Peshawar High
Court, Peshawar
Peshawar High
Court, Peshawar
Peshawar High
Court, Peshawar
Peshawar High
Court, Peshawar
APPEAL
DATE
Civil Appeal No.232 of 2020 17.02.20 15
Civil Appeal No.244 of 2020 11.01.20 17
Civil Appeal No.247 of 2020 12.04.20 14
Civil Appeal No.261 of 2020 125.10.2017
Civil Appeal No.282 of 2020 108.11.2018
Announced in Open Court ont%.ULtflt at Islamabad
Hans LC/*
Not Approved for Reporting
T
| {
"id": "C.A.232_2020.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
PRESENT:
MR. JUSTICE MIAN SAQIB NISAR, HCJ
MR. JUSTICE SH. AZMAT SAEED
MR. JUSTICE UMAR ATA BANDIAL
MR. JUSTICE IJAZ UL AHSAN
MR. JUSTICE SAJJAD ALI SHAH
CIVIL APPEAL NO.233/2015, CIVIL MISC. APPEAL NO.175/2017
IN CONST. PETITION NO.NIL OF 2017, CIVIL MISC.
APPLICATION NO.1535/2013 IN CIVIL APPEAL NO.191-L/2010,
CIVIL MISC. APPLICATION NO.1536/2013 IN CIVIL APPEAL
NO.409/2010, CIVIL MISC. APPLICATION NO.3470/2013, CIVIL
REVIEW PETITIONS NO. 81/2013, 86/2013, 87/2013, 206/2011,
218/2013 IN CIVIL PETITIONS NO.492, 493/2013, 494/2013,
1485/2011
AND
1033/2013,
CIVIL
REVIEW
PETITION
NO.223/2013 IN CIVIL MISC. APPLICATION NO.3470/2013 IN
CIVIL
APPEAL
NO.409/2010,
CIVIL
REVIEW
PETITION
NO.38/2014 IN CIVIL APPEAL NO.47/2014, CIVIL PETITIONS
NO.770/2013, 668/2014 & CIVIL APPEAL NO.476 AND 689/2014,
204-L/2016 AND CIVIL PETITION NO.2620-L/2016 AND CIVIL
MISC. APPLICATION NO. 845 OF 2018.
C.A.233/2015:
Sami Ullah Baloch Vs. Abdul Karim Nousherwani &
others
C. M. Appeal
No.175/2017
Chaudhry Atta ur Rehman Vs. Election Commission
of Pakistan, Islamabad.
C.M.A.1535/2013:
Implementation/Modalities of judgment passed in
C.A.191-L & 409/2010 regarding submission of
fake/bogus degrees at the time of Election
C.M.A.1536/2013:
Implementation/Modalities of judgment passed in
C.A.191-L & 409/2010 regarding submission of
fake/bogus degrees at the time of Election
C.M.A.3470/2013:
News Clipping Published in Daily Jang dated
04.06.2013
C.R.P.81/2013:
Moulvi Muhammad Hanif Vs. Election Tribunal
Balochistan thr. Additional Registrar, Quetta & others
C.R.P.86/2013:
Sardar Fateh Ali Khan Umrani Vs. Returning Officer,
PB 28 Nasirabad-I, Dera Murad Jamali and others
C.R.P.87/2013:
Sardar Fateh Ali Khan Umrani Vs. Returning Officer,
PB 29 Nasirabad-I, Dera Murad Jamali and others
C.R.P.206/2011:
Senator Mir Muhammad Ali Rind Vs. Obaidullah and
others
C.A.No.233 of 2015, etc.
- 2 -
C.R.P.218/2013:
Allah Dino Khan Bhayo Vs. Election Commission of
Pakistan and others
C.R.P.223/2013:
In Re case of Ms. Samina Khawar Hayat, Ex-MPA
C.R.P.38/2014:
Qaimous Khan v. Dr. Haider Ali Khan & others
C.P.770/2013:
Sardar Fateh Ali Umrani v. Samiullah & others
C.P.668/2014:
Abdul Ghafoor Lehri Vs. Election Commission of
Pakistan thr. its Secretary & others
C.A.476/2014:
Khan Muhammad Khan Jatoi Vs. Sardar Samiullah
Khan & other
C.A.689/2014:
Sardar Sami Ullah Khan Vs. Khan Muhammad Khan
Jatoi
C.A.204-L/2016:
Ch.
Nazir
Ahmad
Jatt
Vs.
Chief
Election
Commissioner of Pakistan, etc.
C.P.2620-L/2016:
Shamona Badshah Qaisarani Vs. Election Tribunal,
Multan, etc.
C.M.A No.845/2018 Implementation/Modalities of judgment passed in
C.A.191-L & 409/2010 regarding submission of fake/
bogus degrees at the time of Election.
For the petitioner(s)/
Applicant(s)/appellant(s):
Dr. Babar Awan, Sr. ASC
Ch. Akhtar Ali, AOR
Assisted by:
Mr. Shahid Naseem Gondal, Advocate.
(In C.A.233/2015)
Syed Iftikhar Hussain Gillani, Sr. ASC
Mr. Mehr Khan Malik, AOR
(In C.R.P.206/2011)
Mr. Wasim Sajjad, Sr. ASC
(In C.R.P.218/2013)
Mian Muhammad Hanif, ASC
Raja Abdul Ghafoor, AOR
(For HEC in C.M.As.1535 & 1536/2013)
Mr. Ahmed Raza, ASC
(In C.M.A.3470/2013)
Mr. Tariq Mehmood, Sr. ASC
(In C.R.Ps.81, 86, 87, 233/2013, 38/2014 &
C.P.770/2013)
Mr. Shehzad Shaukat, ASC
(In C.P.2620-L/2016)
C.A.No.233 of 2015, etc.
- 3 -
Mr. Kamran Murtaza, Sr. ASC
Syed Rifaqat Hussain Shah, AOR
(In C.P.668/2014)
Sardar Muhammad Aslam, ASC
Ch. Akhtar Ali, AOR
(In C.A.476/2014)
Mr. Mehr Tanvir Ahmed Jangla, ASC
(In C.A.689/2014)
Sardar Muhammad Aslam, ASC
Mr. Zubair Khalid, ASC
(In C.A.204-L/2016)
Malik Muhammad Qayyum, Sr. ASC.
(In C.M.A. No.175 of 2017)
For the respondent(s):
Syed Iftikhar Hussain Gillani, Sr. ASC
Mr. Mahmood A. Sheikh, AOR
(Respondent No.1 in C.A.No.233/2015)
Mr. Tariq Aziz, AOR
Mr. Imran-ul-Haq Khan, Spl. Prosecutor, NAB
(Respondents 2 & 3 in C.A.No.233/2015)
Mr. Mehr Tanvir Ahmed Jangla, ASC
(In C.A.476/2014)
Mr. Nazir Ahmed Bhutta, ASC
(In C.A.204-L/2016)
Mr. Umer Aslam, ASC
(In C.P.2620-L/2016)
Mr. Sattar Sardar, Election Officer, Rajanpur
(In C.P.2620-L/2016)
Syed Haziq Ali Shah, ASC
(In C.R.P.38/2014)
Mr. Salman Akram Raja, ASC.
Assisted by:
Mr. M. Asad Lada, Advocate.
(In CMA No. 4275/2013)
Amicus Curiae:
Mr. Munir A. Malik, Sr. ASC
Syed Ali Zafar, ASC Assisted by:
Mr. Zahid Nawaz Cheema, ASC.
On Court’s notice:
Mr. Ashtar Ausaf Ali,
Attorney General for Pakistan
C.A.No.233 of 2015, etc.
- 4 -
Assisted by:
Barrister Asad Rahim Khan, Advocate
Mirza Moiz Baig, Associate Lawyer
Mr. Muhammad Waqar Rana,
Additional Attorney General
Nemo.
(On behalf of Mian Mohammad Nawaz
Sharif)
Mrs. Asma Jehangir, Sr. ASC
Assisted by:
Ms. Noor Ejaz, Ms. Ayesha Malik,
Mr. Usama Malik, Mr. Arsalan Khalid,
Advocates.
(On behalf of Rai Hassan Nawaz, Ex-MNA)
Mr. Sikandar Bashir Mohmand, ASC
Assisted by Mr. Zulqarnain, Advocate.
(On behalf of Mr. Jehangir Khan Tareen
Nawabzada Ghazanfar Ali Gull, Ex-MPA
In-person (CMA No.656/2018)
Mr. Mudassar Khalid Abbasi, ASC.
(CMA No.767/2018)
Mr. Kamran Murtaza, Sr. ASC
(CMA No.845/2018)
Mr. Faisal Farid Hussain, ASC
(in-person)
For ECP:
Mr. M. Arshad, D.G. (Law)
Dates of hearing:
30.01.2018, 31.01.2018; 01.02.2018; 07.02.2018;
08.02.2018; 12.02.2018 & 14.02.2018.
JUDGMENT:
UMAR ATA BANDIAL, J. – All these connected matters seek
a common relief, namely, an authoritative pronouncement about the
effect of provisions of Article 62(1)(f) of the Constitution of Islamic
Republic of Pakistan (“Constitution”). The crucial question raised is
whether the incapacity imposed by Article 62(1)(f) of the
Constitution upon a person interested to contest an election to a seat
in the National Assembly or Senate (“Parliament”), is of perpetual
effect if there is a declaration against him by a Court to the effect
C.A.No.233 of 2015, etc.
- 5 -
that he lacks sagacity or righteousness or is profligate or is dishonest
or is not Ameen (untrustworthy). This question is posed because
Article 62(1)(f) of the Constitution does not stipulate the duration of
incapacitation of a judgment debtor under a judicial declaration on
one or more of the aforementioned grounds for contesting an
election to a seat in Parliament. Article 62(1)(f) of the Constitution
provides as follows:
“62. (1) A person shall not be qualified to be elected or
chosen as a member of Majlis-e-Shoora (Parliament)
unless −
(a) …
(b) …
(c) …
(d) …
(e)
(f) he is sagacious, righteous, non-profligate,
honest and ameen, there being no declaration to the
contrary by a court of law; and
(g) …”
In the absence of a fixed period of incapacity of a candidate for
election to a seat in Parliament being specified for complying the
requirements under Article 62(1)(f) of the Constitution, one point of
view urged before the Court is that such incapacity ought to be
construed as perpetual. The other point of view canvassed before the
Court is that the period of disqualification under Article 63 of the
Constitution for the character flaw of moral turpitude ought to be
construed along with Article 62(1)(f) of the Constitution. In this
regard Article 63(1)(h) of the Constitution creates a bar for a period
of five years for contesting an election after serving no less than a
two year sentence for conviction for an offence involving moral
turpitude. The said disability ought to be construed along with
C.A.No.233 of 2015, etc.
- 6 -
Article 62(1)(f) of the Constitution to limit the period of incapacity
imposed by the latter provision to five years as well.
2.
Article 113 of the Constitution makes the qualifications
under Article 62 of the Constitution and disqualifications under
Article 63 of the Constitution applicable to the candidates for
election to a seat in the Provincial Assemblies. Therefore, the
Constitution has applied the same criteria of eligibility for election to
a seat in all Constitutional Legislatures together referred in this
opinion as ‘Parliament’. Article 113 of the Constitution provides as
follows:
“113. The
qualifications
and
disqualifications
for
membership of the National Assembly set out in Articles
62 and 63 shall also apply for membership of a Provincial
Assembly as if reference therein to “National Assembly”
were a reference to “Provincial Assembly”.”
Submissions by the Counsel:
3.
Mr. Babar Awan, Sr. ASC appearing before this Court
(in Civil Appeal No.233 of 2015) has supported the lifetime bar
under Article 62(1)(f) of the Constitution on the eligibility of a
candidate to contest election to Parliament. He argued that the
Constitution and the law contemplate permanent and transient
disqualifications. Thus, Article 62(1)(d), (e), (f) and (g) of the
Constitution do not fix a time limit for the incapacity of a candidate
to contest an election. Within this category of provisions Article
62(1)(f) ibid above requires that a declaration by a Court of law
indicating delinquent conduct be in existence before incapacity upon
a candidate for election can be imposed thereunder. The remaining
C.A.No.233 of 2015, etc.
- 7 -
three clauses do not provide for any such mechanism. These
provisions were added to the Constitution pursuant to Islamic
provisions and whenever attracted to a case they create a perpetual
bar. He read from the verses of the Holy Qur’an to emphasise the
meaning of the expression “Ameen” used in Article 62(1)(f) of the
Constitution. These verses include Surah Nisah verse 58 and Surah
Aal-e-Imran verse 75. As a threshold for the requirement of honesty,
he referred to Surah Al- Ma’aidah verse 119; Surah At’ Taubah verse
119; Surah Al Ahzab verse 23, 24 and 35. He pointed out further that
the permanent bar created under Articles 62(1)(f) of the Constitution
was endorsed by Parliament in the Constitution (Eighteenth
Amendment) Act, 2010 (“18th Constitutional Amendment”). No
omission is attributable to the Constitution nor reading into a
provision thereof is permissible under the settled rules of
Constitutional interpretation. If at all the period of embargo under
Article 62(1)(f) of the Constitution is to be relaxed, then such an
outcome can follow only from a Constitutional amendment by the
Parliament.
4.
Mr. Sikandar Bashir Mohmand, learned ASC appearing
for Jehangir Khan Tareen, Ex-MNA has argued against the
imposition of a permanent embargo under Article 62(1)(f) of the
Constitution on the eligibility of a candidate for election to
Parliament. He contended that the absence of a specified term of the
bar on eligibility in the said constitutional provision made the same
amenable to interpretation and that a life time bar amounted to an
excessive restriction on the fundamental right guaranteed under
C.A.No.233 of 2015, etc.
- 8 -
Article
17(2)
of
the
Constitution.
That
the
principle
of
proportionality ought to be applied to Article 62(1)(f) of the
Constitution in the light of the embargo on eligibility for election
provided in similar provisions. Particular emphasis was placed on
Article 63(1)(h) of the Constitution wherein more serious
misconduct by a candidate for election who has been convicted and
sentenced for an offence involving moral turpitude has been
subjected to an embargo on contesting election to Parliament for a
fixed term rather than permanently. Moreover, gross acts of
dishonesty catered by Section 15 of the NAB Ordinance and similar
acts by Section 100 of the Representation of the People Act, 1976
(“ROPA”) provide for an embargo for fixed periods. In these
circumstances, the lack of specification of the duration of the bar
created under Article 62(1)(f) of the Constitution ought not be given
permanent effect. Under the principle of proportionality the Court
ought to impose a bar that is commensurate with the wrong
committed by a candidate for election. In this respect, the Court had
discretion to fix the term but unfitness to contest for five years
should be treated as an outer limit. He read from Section 100 of the
ROPA which creates a disqualification of five years for exceeding
the limit of election expenses and Section 15 of the NAB Ordinance
for imposing disqualification for ten years after release from prison
on conviction for offences of corruption and corrupt practices. On
the other hand, the inadvertent non-disclosure of certain assets by a
candidate without any intention to deceive the authorities or the
public appears to be a trivial misdemeanor in comparison, yet the
C.A.No.233 of 2015, etc.
- 9 -
Courts have under Article 62(1)(f) of the Constitution applied a
permanent time bar in consequence thereof.
5.
Ms. Asma Jehangir, Sr. ASC appearing for Rai Hassan
Nawaz Ex-MNA explained that her client was disqualified under
Article 62(1)(f) of the Constitution for not declaring his inherited
property in his statement of assets. This is because the said asset was
held in the name of a family company. Her client derived no
advantage from the said non-disclosure but has been subjected to a
life time bar for misdeclaration and concealment of his assets. She
argued that Article 62(1)(f) of the Constitution is vague in its
language for lacking a specific period of incapacitation of a
candidate for election and sets an exceptionally high standard of
human character to be met by him. She also contended that sagacity
and non-profligacy are subjective terms for which determination or
quantification can be onerous and irrational. Although the meaning
and effect of these terms was a matter for Parliament to determine,
yet the Courts have the authority and power to apply the rule of
proportionality in order to avoid the harsh consequence of
permanent incapacitation of a candidate under Article 62(1)(f) of the
Constitution. She submitted that Section 99(1)(f) of the ROPA
provides the same substantive qualifications as expressed in Article
62 of the Constitution but these do not create a permanent embargo.
Consequently, for the lack of the same qualification to contest
election for the Parliament, there are divergent provisions in the
statute and in Article 62(1)(f) of the Constitution. The Constitutional
C.A.No.233 of 2015, etc.
- 10 -
mandate in Article 62(1)(f) of the Constitution ought to be construed
and enforced in the light of the aforesaid statutory provisions.
6.
Sardar Muhammad Aslam, Sr. ASC appearing for the
two disqualified appellants in two Civil Appeals (No.476 of 2014 &
No.204-L of 2016) respectively, submitted that the commission of the
wrong, namely, the misdeclaration of assets did not cause an injury
or loss to any person and ought to be treated lightly on the principle
of Touba (repentance) and Maghfirat (forgiveness), which are the
foundations of Islamic law and jurisprudence. He was, however,
candid to accept that except for submitting their affidavits in Court,
his clients had not made any expression of remorse, regret or
repentance before the concerned authorities or the public.
7.
Learned amicus curiae, Mr. Munir A. Malik, Sr. ASC
stated that a settled principle of interpretation of the Constitution is
that it should be read as a whole. The chapter of fundamental rights
lies at the heart of the Constitution and the right to contest elections
emanates therefrom. Articles 62 and 63 of the Constitution are not
preceded by a non-obstante clause, therefore, these provisions must
be read in a manner that advances the fundamental right to contest
election and not curtail the same. Furthermore, Articles 62 setting
out qualifications and Article 63 laying down disqualifications for
election to a seat in Parliament ought to be read together as these
provisions are complementary to each other. According to the
textual history of the Constitution, the provisions, inter alia, of
Article 63(1)(g) and (h) belong to a set of disqualifications that are
based on past delinquent conduct of a candidate. Prior to the 18th
C.A.No.233 of 2015, etc.
- 11 -
Constitutional Amendment, the conviction for such delinquent
conduct resulted in disqualification without a time limitation, hence
these were construed as being of permanent effect.
8.
The
18th
Constitutional
Amendment,
however,
introduced a time limit in respect of both these disqualifications.
Article 63(1)(h) of the Constitution is relevant for present purpose.
After the 18th Constitutional Amendment, it lays down that a person
who is convicted and sentenced to more than two years
imprisonment for an offence involving moral turpitude stands
disqualified to contest and election for a period of five years after the
date of his release from prison. The 18th Constitutional Amendment
has similarly made the incapacity cast upon a candidate for election
under Article 62(1)(f) to be contingent upon an adverse declaration
by a Court of law being made against the candidate. Learned amicus
curiae submits that this step dilutes the rigours of the sanction under
Article 62(1)(f) of the Constitution which otherwise does not fix a
time limit for the incapacity imposed by it. The learned amicus curiae
has argued that according to his understanding, every act of
dishonesty conceivably falls within the ambit of moral turpitude.
Therefore, dishonesty under Article 62(1)(f) of the Constitution is a
subset of moral turpitude in Article 63(1)(h) thereof. The imposition
of a lifetime bar on contesting election to Parliament under Article
62(1)(f) of the Constitution would render Article 63(1)(h) thereof
redundant. Therefore, the two provisions of the Constitution ought
to be construed to derive substance and meaning from each other.
Consequently, the period of incapacity under Article 62(1)(f) of the
C.A.No.233 of 2015, etc.
- 12 -
Constitution ought to be limited to the period of disqualification
imposed on a candidate for election under Article 63(1)(h) of the
Constitution.
9.
Syed Ali Zafar, learned ASC also appearing as amicus
curiae argued that the present exercise is essentially a journey to
discover the silence of the Constitution. This is because no time
limitation has been prescribed for the incapacity imposed on a
candidate by Article 62(1)(f) of the Constitution. From the historical
perspective, the disqualification under Article 62(1)(f) of the
Constitution is permanent which represents one extreme; on the
other
hand,
the
other
extreme
perspective
can
be
that
disqualification is for one election term, that is five years. However,
he advocated a third approach for fixing a time period between
those two extremes to be determined by the Court as it deems fit.
The learned amicus curiae stated that in doing so, the Court will be
adopting the structural methodology of constitutional interpretation.
He then referred to six modalities of construction of constitutional
provisions as per Philip Babbitt in his book “Constitutional
Interpretation” referred to in Al-Jehad Trust vs. Federation of
Pakistan (PLD 1997 SC 84). By following the structural modality for
interpretation of the constitutional provisions in the present case, the
Court would give due importance to the fundamental right of
citizens to contest election under Article 17 of the Constitution.
Moreover, qualifications for and disqualifications to contest election
for a seat in Parliament under Articles 62 and 63 of the Constitution
in essence deal with a common subject and therefore the two
C.A.No.233 of 2015, etc.
- 13 -
provisions are complementary to each other and ought to be read
together. A person who has committed a criminal offence involving
moral turpitude is permitted to contest election after a lapse of five
years of his release from prison, therefore, the constitutional
intention cannot be to inflict a graver punishment of a life time bar
to contest election upon a person who has committed a dishonest
act. Finally, he submitted that by omitting to prescribe a period of
incapacity for lack of qualification of a candidate for election, Article
62(1)(f) of the Constitution purposefully left the extent of the
exclusionary bar to the discretion and judgment of the Court.
10.
At the end of the proceedings, learned Attorney General
for Pakistan also assisted the Court with his succinct and candid
submissions. He submitted that omission by the Constitution to
provide a time limit for the incapacity imposed under Article 62(1)(f)
of the Constitution cannot mean that such incapacity is of
permanent character. Such a result would deprive a person of his
fundamental
right
under
Article
17
of
the
Constitution.
Furthermore, the effect of a judicial declaration under Article 62(1)(f)
of the Constitution has to be weighed on a case to case basis. A case
of breach of trust differs from forgery or a misdeclaration of fact
made under oath. However, he accepted that a judicial declaration
of a person being dishonest or not ameen under Article 62(1)(f) of the
Constitution does not end with the efflux of time. Finally, he stated
that it is only for the Legislature to put a time limit on the period of
incapacity suffered by a candidate under Article 62(1)(f) of the
Constitution in consequence of an adverse judicial declaration. Until
C.A.No.233 of 2015, etc.
- 14 -
such time as Parliament intervenes, the incapacity to contest
elections shall continue under Article 62(1)(f) of the Constitution for
so long as an adverse judicial declaration against a candidate is in
force.
Analysis:
11.
Before
we
proceed
to
examine
the
respective
contentions of the learned counsel appearing before us, it would be
useful to reproduce the provisions of Articles 62 and 63 of the
Constitution as originally framed in the year 1973 (“1973
Constitution”), followed by their version after amendments
expanding the list of qualifications and disqualifications laid down
therein for becoming or remaining a Member of Parliament:
1973 Constitution:
“62. A person shall not be qualified to be elected or chosen
as a member of Parliament unless—
(a) he is a citizen of Pakistan;
(b) he is, in the case of the National Assembly, not
less than twenty- five years of age and is enrolled
as a voter in any electoral roll for election to that
Assembly;
(c) he is, in the case of the Senate, not less than
thirty years of age and is enrolled as a voter in any
area in a Province or, as the case may be, the
Federal Capital or the Federally Administered
Tribal Areas, from where he seeks membership;
and
(d) he possesses such other qualifications as may be
prescribed by Act of Parliament.”
“63.(1) A person shall be disqualified from being elected or
chosen as, and from being, a member of Parliament, if—
(a) he is of unsound mind and has been so declared
by a competent court; or
C.A.No.233 of 2015, etc.
- 15 -
(b) he is an undischarged insolvent; or
(c) he ceases to be a citizen of Pakistan, or acquires
the citizenship of a foreign State; or
(d) he holds any office of profit in the service of
Pakistan other than an office declared by law not to
disqualify its holder; or
(e) he is so disqualified by Act of Parliament.
(2)
If any question arises whether a member of
Parliament has become disqualified from being a member,
the Speaker or, as the case may be, the Chairman shall
refer the question to the Chief Election Commissioner and,
if the Chief Election Commissioner is of the opinion that
the member has become disqualified, he shall cease to be a
member and his seat shall become vacant.”
12.
During the Martial Law regime of General Zia-ul-Haq,
amendments were made in 1973 Constitution including some that
were meant to supplement the Islamic content of the Constitution. In
the present context, the President’s Order No.14 of 1985 introduced,
inter alia, new qualifications and disqualifications for membership to
Parliament. These are reproduced below:
1985 Amendment:
“62. A person shall not be qualified to be elected or chosen
as a member of Majlis-e-Shoora (Parliament) unless—
(a) he is a citizen of Pakistan;
(b) he is, in the case of National Assembly, not less
than twenty- five years of age and is enrolled as a
voter in any electoral roll for election to a Muslim
seat or a non-Muslim seat as the case may be in that
Assembly;
(c) he is, in the case of Senate, not less than thirty
years of age and is enrolled as a voter in any area in
a Province or, as the case may be, the Federal
Capital or the Federally Administered Tribal Areas,
from where he seeks membership;
(d) he is of good character and is not commonly
known as one who violates Islamic Injunctions;
C.A.No.233 of 2015, etc.
- 16 -
(e) he has adequate knowledge of Islamic teachings
and practices obligatory duties prescribed by Islam
as well as well abstains from major sins;
(f) he is sagacious, righteous and non-profligate
and honest and ameen;
(g) he has not been convicted for a crime involving
moral turpitude or for giving false evidence;
(h) he has not, after the establishment of Pakistan,
worked against the integrity of the country or
opposed the ideology of Pakistan:
Provided that the disqualifications specified in
paragraphs (d) and (e) shall not apply to a person
who is a non-Muslim, but such a person shall have
good moral reputation; and
(i) he possesses such other qualifications as may be
prescribed by Act of Majlis-e-Shoora (Parliament).”
The new disqualifications for election incorporated by the
President’s Order No.14 of 1985 in Article 63 of the Constitution
recapitulated the prescriptions made in certain existing statutes but
without emphasizing the Islamic law:
“63.(1) A person shall be disqualified from being elected or
chosen as, and from being, a member of the Majlis-e-
Shoora (Parliament), if—
(a) he is of unsound mind and has been so declared
by a competent court; or
(b) he is an undischarged insolvent; or
(c) he ceases to be a citizen of Pakistan, or acquires
the citizenship of a foreign State; or
(d) he holds an office of profit in the service of
Pakistan other than an office declared by law not to
disqualify its holder; or
(e) he is in the service of any statutory body or any
body which is owned or controlled by the
Government or in which the Government has a
controlling share or interest; or
(f) being a citizen of Pakistan by virtue of section
14B of the Pakistan Citizenship Act, 1951 (II of
1951), he is for the time being disqualified under
any law in force in Azad Jammu and Kashmir from
C.A.No.233 of 2015, etc.
- 17 -
being elected as a member of the Legislative
Assembly of Azad Jammu and Kashmir; or
(g) he is propagating any opinion, or acting in any
manner, prejudicial to the Ideology of Pakistan, or
the sovereignty, integrity or security of Pakistan, or
morality, or the maintenance of public order, or the
integrity or independence of the judiciary of
Pakistan, or which defames or brings into ridicule
the judiciary or the Armed Forces of Pakistan; or
(h) he has been, on conviction for any offence
which in the opinion of the Chief Election
Commissioner involves moral turpitude, sentenced
to imprisonment for a term of not less than two
years, unless a period of five years has elapsed
since his release; or
(i) he has been dismissed from the service of
Pakistan on the ground of misconduct, unless a
period of five years has elapsed since his dismissal;
or
(j) he has been removed or compulsorily retired
from the service of Pakistan on the ground of
misconduct unless a period of three years has
elapsed
since
his
removal
or
compulsory
retirement; or
(k) he has been in the service of Pakistan or of any
statutory body or any body which is owned or
controlled by the Government or in which the
Government has a controlling share or interest,
unless a period of two years has elapsed since he
ceased to be in such service; or
(l) he is found guilty of a corrupt or illegal practice
under any law for the time being in force, unless a
period of five years has elapsed from the date on
which that order takes effect; or
(m) he has been convicted under section 7 of the
Political Parties Act, 1962 (III of 1962), unless a
period of five years has elapsed from the date of
such conviction; or
(n) he, whether by himself or by any person or
body of persons in trust for him or for his benefit or
on his account or as a member of a Hindu
undivided family, has any share or interest in a
contract,
not
being
a
contract
between
a
cooperative society and Government, for the
supply of goods to, or for the execution of any
contract or for the performance of any service
undertaken by, Government:
Provided that the disqualification under this
paragraph shall not apply to a person—
C.A.No.233 of 2015, etc.
- 18 -
(i) where the share or interest in the contract
devolves
on
him
by
inheritance
or
succession or as a legatee, executor or
administrator, until the expiration of six
months after it has so devolved on him;
(ii) where the contract has been entered into
by or on behalf of a public company as
defined in the Companies Ordinance, 1984
(XLVII of 1984), of which he is a
shareholder but is not a director holding an
office of profit under the company; or
(iii) where he is a member of a Hindu
undivided family and the contract has been
entered into by any other member of that
family in the course of carrying on a
separate business in which he has no share
or interest; or
Explanation.— In this Article “goods” does
not
include
agricultural
produce
or
commodity grown or produced by him or
such goods as he is, under any directive of
Government or any law for the time being
in force, under a duty or obligation to
supply.
(o) he holds any office of profit in the service of
Pakistan other than the following offices, namely:-
(i) an office which is not whole time office
remunerated either by salary or by fee;
(ii) the office of Lumbardar, whether called
by this or any other title;
(iii) the Qaumi Razakars;
(iv) any office the holder whereof, by virtue
of such office, is liable to be called up for
military training or military service under
any law providing for the constitution or
raising of a Force; or
(p) he is for the time being disqualified from being
elected or chosen as a member of the Majlis-e-
Shoora (Parliament) or of a Provincial Assembly
under any law for the time being in force.
(2) If any question arises whether a member of the Majlis-
e-Shoora (Parliament) has become disqualified from being
a member, the Speaker or, as the case may be, the
Chairman shall refer the question to the Chief Election
Commissioner and, if the Chief Election Commissioner is
of the opinion that the member has become disqualified,
he shall cease to be a member and his seat shall become
vacant.”
C.A.No.233 of 2015, etc.
- 19 -
13.
The above amendments made by the President’s Order
No.14 of 1985 were affirmed by the elected Parliament vide 8th
Constitutional Amendment in the year 1985. Constitutional
amendments were also made in the year 2002 by the Legal
Framework Order, 2002 during the Martial Law regime of General
Pervez Musharraf. However, these amendments are not significant
for our present discussion regarding eligibility to contest an election
for a seat in Parliament. This is because in the year 2010, Parliament
discarded these changes through the 18th Constitution Amendment
Act, 2010 and substantially reformed the constitutional scheme
regarding candidature for election to the Parliament. Therefore, it is
the post 18th Amendment version of Articles 62 and 63 of the
Constitution that is relevant to the present controversy and may
now be examined in order to comprehend the improvement made in
the clarity and enforceability of the said provisions:
Post 18th Amendment:
“Qualifications for membership of Majlis-e-Shoora
(Parliament). –
62. (1) A person shall not be qualified to be elected or
chosen as a member of Majlis-e-Shoora (Parliament)
unless−
(a) he is a citizen of Pakistan;
(b) he is, in the case of the National Assembly, not
less than twenty-five years of age and is enrolled as
a voter in any electoral roll in −
(i) any part of Pakistan, for election to a
general seat or a seat reserved for non-
Muslims; and
(ii) any area in a Province from which she
seeks membership for election to a seat
reserved for women.
C.A.No.233 of 2015, etc.
- 20 -
(c) he is, in the case of the Senate, not less than
thirty years of age and is enrolled as a voter in any
area in a Province or, as the case may be, the
Federal Capital or the Federally Administered
Tribal Areas, from where he seeks membership;
(d) he is of good character and is not commonly
known as one who violates Islamic Injunctions;
(e) he has adequate knowledge of Islamic teachings
and practices obligatory duties prescribed by Islam
as well as abstains from major sins;
(f) he is sagacious, righteous, non-profligate, honest
and ameen, there being no declaration to the
contrary by a court of law; and
(g) he has not, after the establishment of Pakistan,
worked against the integrity of the country or
opposed the ideology of Pakistan.
(2) The disqualifications specified in paragraphs (d) and (e)
shall not apply to a person who is a non-Muslim, but such
a person shall have good moral reputation.”
“Disqualifications for membership of Majlis-e-Shoora
(Parliament).
63.(1) A person shall be disqualified from being elected or
chosen as, and from being, a member of the Majlis-e-
Shoora (Parliament), if −
(a) he is of unsound mind and has been so declared
by a competent court; or
(b) he is an undischarged insolvent; or
(c) he ceases to be a citizen of Pakistan, or acquires
the citizenship of a foreign State; or
(d) he holds an office of profit in the service of
Pakistan other than an office declared by law not to
disqualify its holder; or
(e) he is in the service of any statutory body or any
body which is owned or controlled by the
Government or in which the Government has a
controlling share or interest; or
(f) being a citizen of Pakistan by virtue of section
14B of the Pakistan Citizenship Act, 1951 (II of
1951), he is for the time being disqualified under
any law in force in Azad Jammu and Kashmir from
being elected as a member of the Legislative
Assembly of Azad Jammu and Kashmir; or
C.A.No.233 of 2015, etc.
- 21 -
(g) he has been convicted by a court of competent
jurisdiction for propagating any opinion, or acting
in any manner, prejudicial to the ideology of
Pakistan, or the sovereignty, integrity or security of
Pakistan, or the integrity or independence of the
judiciary of Pakistan, or which defames or brings
into ridicule the judiciary or the Armed Forces of
Pakistan, unless a period of five years has elapsed
since his release; or
(h) he has been, on conviction for any offence
involving
moral
turpitude,
sentenced
to
imprisonment for a term of not less than two years,
unless a period of five years has elapsed since his
release; or
(i) he has been dismissed from the service of
Pakistan or service of a corporation or office set up
or
controlled
by
the
Federal
Government,
Provincial Government or a Local Government on
the ground of misconduct, unless a period of five
years has elapsed since his dismissal; or
(j) he has been removed or compulsorily retired
from the service of Pakistan or service of a
corporation or office set up or controlled by the
Federal Government, Provincial Government or a
Local Government on the ground of misconduct,
unless a period of three years has elapsed since his
removal or compulsory retirement; or
(k) he has been in the service of Pakistan or of any
statutory body or any body which is owned or
controlled by the Government or in which the
Government has a controlling share or interest,
unless a period of two years has elapsed since he
ceased to be in such service; or
(l) he, whether by himself or by any person or body
of persons in trust for him or for his benefit or on
his account or as a member of a Hindu undivided
family, has any share or interest in a contract, not
being a contract between a cooperative society and
Government, for the supply of goods to, or for the
execution of any contract or for the performance of
any service undertaken by, Government:
Provided that the disqualification under this
paragraph shall not apply to a person −
(i) where the share or interest in the contract
devolves
on
him
by
inheritance
or
succession or as a legatee, executor or
administrator, until the expiration of six
months after it has so devolved on him;
(ii) where the contract has been entered into
by or on behalf of a public company as
C.A.No.233 of 2015, etc.
- 22 -
defined in the Companies Ordinance, 1984
(XLVII of 1984), of which he is a
shareholder but is not a director holding an
office of profit under the company; or
(iii) where he is a member of a Hindu
undivided family and the contract has been
entered into by any other member of that
family in the course of carrying on a
separate business in which he has no share
or interest;
Explanation.− In this Article “goods” does not
include agricultural produce or commodity grown
or produced by him or such goods as he is, under
any directive of Government or any law for the
time being in force, under a duty or obligation to
supply;
or (m) he holds any office of profit in the service of
Pakistan other than the following offices, namely:−
(i) an office which is not whole time office
remunerated either by salary or by fee;
(ii) the office of Lumbardar, whether called
by this or any other title;
(iii) the Qaumi Razakars;
(iv) any office the holder whereof, by virtue
of such office, is liable to be called up for
military training or military service under
any law providing for the constitution or
raising of a Force; or
(n) he has obtained a loan for an amount of two
million rupees or more, from any bank, financial
institution, cooperative society or cooperative body
in his own name or in the name of his spouse or
any of his dependents, which remains unpaid for
more than one year from the due date, or has got
such loan written off; or
(o) he or his spouse or any of his dependents has
defaulted in payment of government dues and
utility expenses, including telephone, electricity,
gas and water charges in excess of ten thousand
rupees, for over six months, at the time of filing his
nomination papers; or
(p) he is for the time being disqualified from being
elected or chosen as a member of the Majlis-e-
Shoora (Parliament) or of a Provincial Assembly
under any law for the time being in force.
Explanation.− For the purposes of this paragraph
“law” shall not include an Ordinance promulgated
under Article 89 or Article 128.
C.A.No.233 of 2015, etc.
- 23 -
(2) If any question arises whether a member of the Majlis-
e-Shoora (Parliament) has become disqualified from being
a member, the Speaker or, as the case may be, the
Chairman shall, unless he decides that no such question
has arisen, refer the question to the Election Commission
within thirty days and if he fails to do so within the
aforesaid period it shall be deemed to have been referred
to the Election Commission.
(3) The Election Commission shall decide the question
within ninety days from its receipt or deemed to have been
received and if it is of the opinion that the member has
become disqualified, he shall cease to be a member and his
seat shall become vacant.”
14.
It will be seen that the introduction in 1985 of Islamic
provisions in Article 62 of the Constitution were retained by the 18th
Constitutional Amendment. However, certain overlap in the subject
matter of the provisions of clauses (g) and (h) of Article 62(1) and
Article 63 of the Constitution was removed by deleting repetitive
text in Article 62(1) of the Constitution. The salient Islamic
provisions of Article 62, retained by the 18th Constitutional
Amendment are contained in its clauses (d), (e) and (f) of Article 62
of the Constitution. These carry Quranic qualifications under Islamic
law for establishing eligibility to hold public office of trust or
authority. Although introduced in the year 1985, these clauses
continue to remain part of the Constitution. Clauses (d) and (e) of
Article 62 lay down the following conditions of eligibility for
election to Parliament, namely, good character, observance of
Islamic injunctions, knowledge of Islamic teachings and abstention
from major sins. These conditions are subjective and under Article
62(2) obligate only the Muslim candidates for election to Parliament. It
C.A.No.233 of 2015, etc.
- 24 -
may also be noted that these provisions do not prescribe objective
standards of conduct. Therefore, only cases of blatant deviation from
commonly recognized and accepted standards of Islamic norms can
form the subject matter of such restraints.
15.
On the other hand, Article 62(1)(f) of the Constitution
also imposes Islamic ethical conditions for eligibility of a candidate
for election to Parliament but these are made applicable to both
Muslim as well as non-Muslim candidates for Parliamentary
membership. One reason that the conditions of Article 62(1)(f) are
made a criterion of eligibility of all candidates for election is the
universality of their ethical prescription. Their content constitutes a
basic norm in all progressive democratic societies that are governed
by the rule of law. It is a matter of fact that in Pakistan the members
of Parliament occupy leadership roles for the people of Pakistan and
constitute the political and ruling elite in society. According to the
Preamble of the Constitution, these persons are representatives of
the people of Pakistan to whom the former are ultimately
responsible as fiduciaries. It was held by this Court in Muhammad
Yasin vs. Federation of Pakistan (PLD 2012 SC 132 at p.164) that:
“56.
… holders of public office are first and foremost
fiduciaries and trustees for the people of Pakistan …. and
when performing the functions of their Office, they can
have no interest other than the interests of the honourable
People of Pakistan.”
An instructive observation in this behalf was also made in
Habibullah Energy Limited vs. WAPDA (PLD 2014 SC 47 at p.69)
in the following terms:
C.A.No.233 of 2015, etc.
- 25 -
“6.
… A breach of the duty of loyalty, such as in the
case of a self-dealing transaction or one involving conflict
of interest, will trigger heightened scrutiny by the court.
Further, if public officials fail to exercise the duty of care
that is expected of a prudent manager, the court will assess
the underlying action or transaction to ascertain whether
the state functionaries have breached their fiduciary
obligations to the people of Pakistan.”
16.
The Holy Qur’an narrates the accounts of different
exalted personalities having leadership roles. Amongst these, the
Holy Prophet Muhammad (PBUH) is regarded as the finest example
for emulation by mankind; not only for his exceptional spiritual
qualities as a Messenger of Almighty Allah Subanahu Wa Ta’ala
(“SWT”) but also his remarkable capabilities of humanity and
leadership that distinguished him as the best role model. With such
qualities the Holy Prophet Muhammad (PBUH) escaped persecution
in his own land of Mecca to establish without any coercion a just and
egalitarian society in the distant land of Madina. This city state was
governed by the laws laid down in the Holy Qur’an and exemplified
in the Sunnah of the Holy Prophet Muhammad (PBUH). Likewise,
for his conquest of Mecca without the use of any force. A prominent
American author, Michael H. Hart explains in his book titled “The
100, a Ranking of the Most Influential Persons in History”;
Citadel, 1992 that:
“My choice of Muhammad [PBUH] to lead the list of the
world’s most influential persons may surprise some
readers and may be questioned by others, but he was the
only man in history who was supremely successful on
both the religious and secular levels. … Muhammad
[PBUH] was a secular as well as a religious leader. In fact,
as the driving force behind the Arab conquests, he may
C.A.No.233 of 2015, etc.
- 26 -
well rank as the most influential political leader of all time.
… We see then, that the Arab conquests of the seventh
century have continued to play an important role in
human history, down to the present day. It is this
unparalleled
combination
of
secular
and
religious
influence which I feel entitles Muhammad [PBUH] to be
considered the most influential single figure in human
history.”
[emphasis provided]
For his extraordinary character qualities and impeccable ethical
values the Holy Prophet Muhammad (PBUH) is described in Surah
Al-Ahzab Ayat 21 (33:21) in the Holy Qur’an as follows:
“Indeed in the Messenger of Allah (Muhammad SAW) you have a
good example to follow for him who hopes in (the Meeting with)
Allah and the Last Day and remembers Allah much.”
The qualities of sagacity, righteousness, honesty and trustworthiness
laid down in Article 62(1)(f) of the Constitution as qualifications for
membership to the elected Houses are actually derived from the
Sunnah of the Holy Prophet Muhammad (PBUH). Such strengths
can never be equaled by ordinary mortals for whom these are goals
to strive for and more importantly not to consciously violate.
17.
The Holy Qur’an recognizes the temporal significance
of the character qualities specified in Article 62(1)(f) of the
Constitution. These qualities are since acknowledged in political
thought as attributes of a public leader. One account of some
qualities is are narrated by the Holy Qur’an in the story of Hazrat
C.A.No.233 of 2015, etc.
- 27 -
Yusuf (AS) in Surah Yusuf, Ayat No.54-55 (12:54-55) with a clear
message:
“And the king said, "Bring him to me; I will appoint him
exclusively for myself." And when he spoke to him, he said,
"Indeed, you are today established [in position] and trusted.
[Joseph] said, “Appoint me over the storehouses of the land.
Indeed, I will be a knowing guardian.”
[emphasis supplied]
These verses are often quoted to demonstrate Allah (SWT)’s
guidance
that
the
qualities
of
honesty,
trustworthiness,
guardianship, knowledge and skill are necessary attributes of
persons holding public office involving trust and responsibility.
These requirements are echoed in the conditions of sagacity, honesty
and Ameen (trustworthiness) specified as qualifications in Article
62(1)(f) of the Constitution for membership to Parliament. As
observed above, the laws of mature secular democracies emphasise
the importance of the above-noted qualities to dignify persons
holding parliamentary office. These standards are generally lodged
in laws, enforced, inter alia, through a code of conduct for
lawmakers; or as regulations that provide amongst others, for a duty
to act honestly solely in public interest, avoidance of conflict of
interest and setting out the terms and extent of disclosure of their
pecuniary and other interests. The priority of the duties owed by
Parliamentarians and of accountability for their actions that are
C.A.No.233 of 2015, etc.
- 28 -
established in the current Code of Conduct for Members of
Parliament (United Kingdom) are such that deserve review:
“The Code of Conduct for Members of Parliament
Prepared pursuant to the Resolution of the House of 19 July 1995
I. Purpose of the Code
1. The purpose of this Code of Conduct is to assist all
Members in the discharge of their obligations to the
House, their constituents and the public at large by:
(a) establishing the standards and principles of
conduct expected of all Members in undertaking
their duties;
(b) setting the rules of conduct which underpin
these standards and principles and to which all
Members must adhere; and in so doing
(c) ensuring public confidence in the standards
expected of all Members and in the commitment of
the House to upholding these rules.
II. Scope of the Code
2. The Code applies to Members in all aspects of their
public life. It does not seek to regulate what Members do
in their purely private and personal lives.
3. The obligations set out in this Code are complementary
to those which apply to all Members by virtue of the
procedural and other rules of the House and the rulings of
the Chair, and to those which apply to Members falling
within the scope of the Ministerial Code.
III. Duties of Members
4. By virtue of the oath, or affirmation, of allegiance taken
by all Members when they are elected to the House,
Members have a duty to be faithful and bear true
allegiance to Her Majesty the Queen, her heirs and
successors, according to law.
5. Members have a duty to uphold the law, including the
general law against discrimination.
6. Members have a general duty to act in the interests of
the nation as a whole; and a special duty to their
constituents.
7. Members should act on all occasions in accordance with
the public trust placed in them. They should always
C.A.No.233 of 2015, etc.
- 29 -
behave with probity and integrity, including in their use of
public resources.
IV. General Principles of Conduct
8. In carrying out their parliamentary and public duties,
Members will be expected to observe the following general
principles of conduct identified by the Committee on
Standards in Public Life in its First Report as applying to
holders of public office. These principles will be taken into
account
when
considering
the
investigation
and
determination of any allegations of breaches of the rules of
conduct in Part V of the Code.
Selflessness
Holders of public office should take decisions solely in
terms of the public interest. They should not do so in order
to gain financial or other material benefits for themselves,
their family, or their friends.
Integrity
Holders of public office should not place themselves under
any financial or other obligation to outside individuals or
organisations
that
might
influence
them
in
the
performance of their official duties.
Objectivity
In carrying out public business, including making public
appointments, awarding contracts, or recommending
individuals for rewards and benefits, holders of public
office should make choices on merit.
Accountability
Holders of public office are accountable for their decisions
and actions to the public and must submit themselves to
whatever scrutiny is appropriate to their office.
Openness
Holders of public office should be as open as possible
about all the decisions and actions that they take. They
should give reasons for their decisions and restrict
information only when the wider public interest clearly
demands.
Honesty
Holders of public office have a duty to declare any private
interests relating to their public duties and to take steps to
resolve any conflicts arising in a way that protects the
public interest.
Leadership
Holders of public office should promote and support these
principles by leadership and example.”
C.A.No.233 of 2015, etc.
- 30 -
V. Rules of Conduct
9. Members are expected to observe the following rules
and associated Resolutions of the House.
10. Members shall base their conduct on a consideration of
the public interest, avoid conflict between personal interest
and the public interest and resolve any conflict between
the two, at once, and in favour of the public interest.
11. No Member shall act as a paid advocate in any
proceeding of the House.
12. The acceptance by a Member of a bribe to influence his
or her conduct as a Member, including any fee,
compensation or reward in connection with the promotion
of, or opposition to, any Bill, Motion, or other matter
submitted, or intended to be submitted to the House, or to
any Committee of the House, is contrary to the law of
Parliament.
13. Members shall fulfill conscientiously the requirements
of the House in respect of the registration of interests in the
Register of Members’ Financial Interests. They shall always
be open and frank in drawing attention to any relevant
interest in any proceeding of the House or its Committees,
and in any communications with Ministers, Members,
public officials or public office holders.
14. Information which Members receive in confidence in
the course of their parliamentary duties should be used
only in connection with those duties. Such information
must never be used for the purpose of financial gain.
15. Members are personally responsible and accountable
for ensuring that their use of any expenses, allowances,
facilities and services provided from the public purse is in
accordance with the rules laid down on these matters.
Members shall ensure that their use of public resources is
always in support of their parliamentary duties. It should
not confer any undue personal or financial benefit on
themselves or anyone else, or confer undue advantage on a
political organisation.
16. Members shall never undertake any action which
would cause significant damage to the reputation and
integrity of the House of Commons as a whole, or of its
Members generally. …”
[emphasis supplied]
The substantive content of the Code of Conduct is derived from
centuries of parliamentary experience in the United Kingdom.
However, these principles mirror and build upon the basic values
C.A.No.233 of 2015, etc.
- 31 -
and standards of public conduct that were espoused by the Holy
Qur’an and the Holy Prophet (PBUH) fourteen centuries ago. Be that
as it may, the universality of standards of honourable conduct in
public life in the contemporary democratic world, irrespective of
faith or culture, makes it plausible that firstly, the conditions of
eligibility for election under Article 62(1)(f) of the Constitution are
made applicable to all candidates for the Parliament including non-
Muslim candidates; and secondly, that these conditions have been
retained by the elected Parliament in the 18th Constitutional
Amendment.
18.
The foregoing view is further reinforced by the
Constitutional duty of honesty, devotion of best ability in decisions,
faithfulness and fidelity to the Constitution and the law that are
sworn by every member of Parliament in his Oath made in
pursuance of Article 65 of the Constitution read with its Third
Schedule and by every member of the Provincial Assemblies sworn
under Articles 65 and 127 read with the Third Schedule to the
Constitution. Such a firm and robust commitment enjoined by the
Constitution upon members of the elected Legislatures conforms the
Constitutional architecture envisaged in its Preamble providing for
the exercise of authority over the people of Pakistan, within the
limits prescribed by Almighty Allah (SWT), as a sacred trust. For the
State is to be run through the chosen “representatives of the people”
observing principles of democracy, freedom, tolerance and social
justice as envisaged by Islam, enabling Muslims to order their lives
individually and collectively in accordance with the teachings and
C.A.No.233 of 2015, etc.
- 32 -
requirements of Islam, as set out in the Holy Qur’an and Sunnah of
Prophet Muhammad (PBUH). [emphasis supplied].
19.
With the foregoing structure of normative values
enshrined in and reiterated by our Constitution, there can be no
doubt that the qualifications in Article 62(1)(f) occupy a crucial place
in the exercise of political rights conferred by the Constitution. These
political rights are guaranteed by Article 17 of the Constitution,
which is reproduced herein below:
“Freedom of Association:
17.(1) Every citizen shall have the right to form
associations
or
unions,
subject
to
any
reasonable
restrictions imposed by law in the interest of sovereignty
or integrity or Pakistan, public order or morality.
(2) Every citizen, not being in the service of Pakistan, shall
have the right to form or be a member of a political party,
subject to any reasonable restrictions imposed by law in
the interest of the sovereignty or integrity of Pakistan and
such law shall provide that where the Federal Government
declares that any political party has been formed or is
operating in a manner prejudicial to the sovereignty or
integrity of Pakistan, the Federal Government shall, within
fifteen days of such declaration, refer the matter to the
Supreme Court whose decision on such reference shall be
final.
(3) Every political party shall account for the source of its
funds in accordance with law.”
In the case of Muhammad Nawaz Sharif vs. Federation of
Pakistan (PLD 1993 SC 473 at p.559), the right to contest an election
and to form government has been held to emanate from the right
conferred by Article 17(2) of the Constitution, that guarantees the
freedom to form and to be a member of a political party. The
fundamental right under Article 17(2) of the Constitution has been a
C.A.No.233 of 2015, etc.
- 33 -
subject of repeated scrutiny by this Court as and when actual or
perceived threats to the democratic dispensation were challenged
before the Courts. A celebrated judgment in this behalf was
delivered in the case of Miss Benazir Bhutto vs. Federation of
Pakistan (PLD 1988 SC 416). It laid down a threshold for ensuring
the lawful exercise of the fundamental right of political association
and action. The precedent hold that the exercise of political rights
and action is not absolute in character and is subject to any
reasonable restriction imposed by law in the interest of sovereignty
or integrity of Pakistan. These observations made in the said
judgment (at page 570 of the law report) are presently relevant and are
reproduced below:
“The right to form associations or unions or political
parties, like all other Fundamental Rights, is not absolute.
Article 17 explicitly authorises the State to impose
reasonable restrictions on the exercise and enjoyment of
this right. The restrictions which the State is empowered to
impose on the right to form or be a member of a political
party will have to satisfy criteria embodied in Article 17(2),
firstly that these restrictions should have a statutory
sanction which means that the executive cannot, without
the backing of law, impose any restriction on the exercise
and enjoyment of the right. Second, the restrictions
imposed should pass the test of reasonableness before they
can validly restrict the exercise of the right. Third, these
restrictions in order to be constitutional will have to have a
clear nexus with one of the grounds i.e. sovereignty or
integrity of Pakistan. These requirements are implicit in
the expression “in the interest of” the sovereignty or
integrity of Pakistan.”
The expression “integrity of Pakistan” used in Article 17(2) of the
Constitution has been construed in the said judgment to include
C.A.No.233 of 2015, etc.
- 34 -
“morality” as one of its features. This is because the word “integrity”
means moral soundness, morality and sound moral principles.
These ought to be read as forming part of the expression “integrity
of Pakistan.” After quoting the Holy Qur’an, it is observed (at page
526 of the law report) that:
“… [N]ot only individually but also collectively Muslims
have to live within an exclusively moral framework as
enjoined by the Holy Quran and the Sunnah. No civilised
society can deny this standard of morality. The concept of
democracy in our Constitution should, therefore, be
regarded to be imbued with individual and collective
morality as according to Islam (Holy Quran and Sunnah).
It goes without saying that morality provides the basis for
the society’s spiritual values and in terms of democracy--
freedom, equality, tolerance and social justice. Collectively
the political parties are now expected to protect public
morals in the same way as other legal institutions protect
public truthfulness and public symbols of authority. To
leave the political parties entirely free to do as they please
is to suggest that morality does not matter. A situation like
this might prove ultimately subversive to the fabric of the
State in the maintenance of the law and order. Therefore,
political parties should conform to stringent obligations of
high ethical standard.”
20.
Pursuant to the said criteria the political rights of action
under Article 17(2) of the Constitution are subject to reasonable
restrictions that may be imposed by statutory law. These would
include conditions imposed upon a candidate to contest election.
The stature of the qualifying limitations under Article 62(1)(f) of the
Constitution occupy an insular and superior pedigree than statutory
limitations. This is because the test under Article 17(2) of the
Constitution applies to statutory but not to constitutional
restrictions. The latter enjoy an autonomy that is discussed below.
C.A.No.233 of 2015, etc.
- 35 -
21.
The matter of curtailment of the fundamental right of
freedom of expression of parliamentarians under Article 19 of the
Constitution came up for scrutiny by this Court in the case of
Wukala Mahaz Barai Tahafaz Dastoor vs. Federation of Pakistan
(PLD 1998 SC 1263). The issue was whether safeguards against
defection by parliamentarians incorporated by Article 63A in the
Constitution amounted to a violation of the parliamentarians’
political right of freedom of expression guaranteed under Articles 19
and 66 of the Constitution. It was held that Article 8 of the
Constitution giving overriding effect to Fundamental Rights over
conflicting statutes did not, however, operate to judge or invalidate
other provisions of the Constitution (at p.1313 of the law report). As a
result Article 63A of the Constitution was held to be valid law
although it made parliamentarians liable to dismissal by their
parliamentary party leader: for breach of party discipline expressed
through the party’s constitution, code of conduct and declared
policies or for voting contrary to the directions issued by the
parliamentary party to which they belong or for abstention from
voting in the House contrary to the party’s policies against any bill.
It was held that forfeiture of parliamentary membership as a
consequence of the breach of party discipline by a parliamentarian
nevertheless did not wrest his freedom of speech and expression
under Article 19 of the Constitution.
22.
Just as the validity of a Constitutional provision cannot
be tested at the touchstone of Article 8 and fundamental rights
thereof [Ref: Mahmood Khan Achakzai vs. Federation of Pakistan
C.A.No.233 of 2015, etc.
- 36 -
(PLD 1997 SC 426)], it is also an established rule that Article 2A of
the Constitution cannot be made a benchmark to test the validity of
another Constitutional provision [Ref: Hakim Khan vs. Government
of Pakistan (PLD 1992 SC 595 at pp.630 & 634)]. In the above
scenario, the overriding principle of Constitutional interpretation is
that every word, clause and Article of the Constitution must be
given effect and the attribution of redundancy to any part of the
Constitution be avoided. [Ref: Reference by the President (PLD 1957
SC 219 at p.235). As such, the Constitution must be interpreted as a
whole because it is an organic document that is meant to apply to
the changing circumstances of time and space. Consequently, each
provision of the Constitution or part thereof has a purpose, meaning
and integral place that must be understood, acknowledged and
applied harmoniously. It is only when a conflict between two
provisions of the Constitution is irreconcilable and one of such
provisions was inserted when the Constitution was held in
abeyance, then the provision which was made part of the
Constitution during the period of its abeyance would yield,
provided that the other provision conflicting therewith was enforced
by parliamentary will and is closer to the provisions of the Preamble
of the Constitution. Reference is made to District Bar Association,
Rawalpindi vs. Federation of Pakistan (PLD 2015 SC 401).
23.
In
the
background
of
aforesaid
principles
of
interpretation of the Constitutional provisions and the equal
standing of both Article 17(2) and Article 62(1)(f) of the Constitution,
the task of harmoniously interpreting the fundamental right under
C.A.No.233 of 2015, etc.
- 37 -
Article 17(2) of the Constitution and the pre-conditions for reposing
responsibility and authority upon persons vying for parliamentary
office under Article 62(1)(f) of the Constitution may now be
undertaken. The substantive content of Article 62(1)(f) finds support
from the Preamble of the Constitution emphasising Islamic values in
Society and from the Oath of parliamentary office which enjoins
honesty, faithfulness to public interest and the law. Endorsement of
such conditions is also given by the 18th Constitutional Amendment
passed by an assertive Parliament in the year 2010. Several
important adjustments were made by this Amendment in the
contours of the Constitution. Most notably, these include the
distribution of State functions and authority between the Federation
and the Provinces; and also a new mechanism for appointment of
superior Court Judges. In the present context, the conditions and
qualifications in Article 62(1)(f) of the Constitution were retained in
toto; and made objectively and transparently enforceable by the
prescription of a judicial declaration for precipitating the loss of the
electoral qualification specified in the said clause. Where a
declaration made by a Court of law against a candidate for election
warrants a conclusion of his misrepresentation, dishonesty, breach
of trust, fraud, cheating, lack of fiduciary duty, conflict of interest,
deception, dishonest misappropriation, etc. to be derived from such
a verdict, then it stands to reason that the consequential incapacity
imposed upon the candidate for election should last for as long as
the declaration is in force. This result follows as a rational
consequence of the judicial declaration and from the lack of any time
C.A.No.233 of 2015, etc.
- 38 -
period of incapacity of the candidate being laid down in Article
62(1)(f) of the Constitution. In other words, if the declaration by the
Court has attained finality, the embargo under Article 62(1)(f) of the
Constitution acquires permanent effect.
24.
The foregoing aspects of Article 62(1)(f) of the
Constitution do not encumber but regulate the fundamental right of
political association and action under Article 17(2) of the
Constitution. The incorporation of the requirement of declaration by
a Court (in terms of Article 62(1)(f) of the Constitution) necessarily
involves delinquent conduct by a candidate for election that is in
violation of the law. A Court of law does not issue a declaration that
offends mere sentiments or sensibilities. Consequently, a valid
declaration by the Court would involve the breach of a legal duty or
obligation owed by the candidate for election to another person or
the violation of the latter’s legal right or privilege.
25.
In our legal system the rights and duties of parties in a
legal correlation are broadly speaking of two kinds. One species
concerns the breach of rights or duties involving the commission of
criminal offences. The convictions after trial for such offences carry
punishments
including
the
capital
penalty,
imprisonment,
proprietary forfeitures and pecuniary fines. The other kind of legal
correlation involves the breach of rights and duties that carry civil
liability. A decree by a Court of civil jurisdiction can grant pecuniary
or specific relief, including, a declaration with respect to a legal
right, status or legal character. Such a decree that is based on
admissions or evidence and sustained by reasons attains finality
C.A.No.233 of 2015, etc.
- 39 -
after remedies before the higher fora are exhausted. A final decree
has binding effect and is commonly described as a past and closed
transaction having permanent effect. Therefore, the consequence of
permanent nature i.e. incapacity, following a final and binding
decree of Court of civil jurisdiction, is the ordinary and lawful
outcome of civil litigation.
26.
To advance the plea against permanent ineligibility
under Article 62(1)(f) of the Constitution reference has been made to
the constitutional disqualification to contest an election to a seat in
Parliament on account of a conviction and sentence for commission
of any offence involving moral turpitude. The provisions of Article
63(1)(h) of the Constitution lay down this disqualification in the
following terms:
“63. (1) A person shall be disqualified from being elected
or chosen as, and from being, a member of the Majlis-e-
Shoora (Parliament), if −
(a) …
(b) …
(c) …
(d) …
(e) …
(f) …
(g) …
(h) he has been, on conviction for any offence
involving
moral
turpitude,
sentenced
to
imprisonment for a term of not less than two years,
unless a period of five years has elapsed since his
release; or
…”
[emphasis supplied]
We have already observed that a conclusion about a judgment
debtor having character failings specified in Article 62(1)(f) of the
C.A.No.233 of 2015, etc.
- 40 -
Constitution, that emanate or can be derived from a final judicial
declaration, would cause the permanent incapacity of a candidate
for elected office. It has been argued before us that the character
flaws covered by Article 62(1)(f) of the Constitution falls within the
ambit of wrongs that involve moral turpitude under Article 63(1)(h)
of the Constitution. A conviction and sentence by a Court of law for
offences involving moral turpitude is subjected to a disability to
contest an election to Parliament for a period of five years following
release of the convict from prison. The expression “moral turpitude”
is not a defined expression in our codified law; however, it has been
examined in authoritative legal commentaries and precedents.
Words and Phrases, Permanent Edition 27-A, assigns the following
meaning to the said expression:
“Moral turpitude” is a vague term, and its meaning
depends to some extent on the state of public morals; it is
anything that is done contrary to justice, honesty,
principle, or good morals; an act of baseness, vileness, or
depravity in the private and social duties which a man
owes to his fellow man, or to society in general, contrary to
the accepted and customary rule of right and duty
between man and man; it implies something immoral in
itself, regardless of fact whether it is punishable by law.”
[emphasis supplied]
The foregoing definition was considered by this Court in Ghulam
Hussain vs. Chairman, POF Board (2002 SCMR 1691) and it was
held that:
“7.
Perusal of the meaning of above expression clearly
indicates that anything which is done contrary to the good
principles of morality is within the circuit of above
expression. In fact, any act which runs contrary to justice,
C.A.No.233 of 2015, etc.
- 41 -
honesty, good moral values, established judicial norms of a
society, falls within the scope of above expression. …”
According to the said definition, it is clear that offences of moral
turpitude would include delinquent conduct involving, inter alia,
misrepresentation, fraud, breach of trust or fiduciary duty,
dishonesty, misappropriation, forgery, cheating, conflict of interest,
etc.
27.
It is apparent straightaway that the offences of moral
turpitude should cover certain errant conduct that falls within the
terms of Article 62(1)(f) of the Constitution. Consequently,
delinquent conduct under Article 63(1)(h) of the Constitution would
to such extent eclipse the criteria of qualifications set out in Article
62(1)(f) thereof. However, both these provisions of the Constitution
are distinct and separate which possess their respectively different
place, meaning and effect under the Constitution. Article 63(1)(h) of
the Constitution deals with the consequences of criminal liability of
a delinquent action. Such action may also fall within the ambit of
Article 62(1)(f) of the Constitution. However, the distinct place,
purpose and meaning of Article 62(1)(f) of the Constitution becomes
obvious from the civil consequences of its provisions as opposed to
Article 63(1)(h) of the Constitution which deals with the cognizance
of the same action by a criminal court followed by criminal
punishment. The two provisions of the Constitution, namely, Article
62(1)(f) and Article 63(1)(h) deal with different laws, remedies, fora,
and relief although the underlying subject matter of the legal action
is the same. It is settled law that the outcome of criminal
C.A.No.233 of 2015, etc.
- 42 -
proceedings for a particular misconduct cannot foreclose the
outcome of civil proceedings in relation to the same act. If the
exclusivity of jurisdiction and proceedings in a Court and their
outcome, that is civil or criminal respectively, is disregarded as is
urged before us, redundancy would attach to the provisions of
either Article 62(1)(f) or Article 63(1)(h) of the Constitution, as the
case may be. This is impermissible; the result of a judicial
declaration envisaged in Article 62(1)(f) of the Constitution cannot
be overshadowed by the outcome of a criminal proceeding for the
same conduct.
28.
Article 62 of the Constitution provides the qualifications
that must necessarily be possessed by a candidate for contesting
election to Parliament. These qualifications are enumerated in
Article 62(1)(a) to (g) of the Constitution. On the other hand, Article
63(1) of the Constitution enumerates the disqualifications for the
membership to the Parliament and Provincial Assemblies. These
disqualifications are enumerated in clause (a) to clause (p) of Article
63 of the Constitution. Although the ultimate result of a candidate
for election lacking a qualification under Article 62 of the
Constitution or for incurring disqualification under Article 63 of the
Constitution is the same, namely, his ouster from the election
contest, yet the object, meaning and effect of the two provisions is
very different. The view that qualifications and disqualifications are
interchangeable and therefore, the consequences of incurring either,
namely, period of ouster from the election contest should be similar
because the same misconduct can form the subject matter of both
C.A.No.233 of 2015, etc.
- 43 -
provisions, is flawed. In the case of Govt. of Pakistan vs. Akhlaque
Hussain (PLD 1965 SC 527 at p.579), the two facets of ineligibility for
vying a professional office were analysed in the following terms:
“While sometimes qualification and disqualification may
present two aspects of the same matter the two concepts
are obviously distinct and it is not possible to contend that
there can be no classification into qualification and
disqualification of the attributes of a person in relation to a
profession, etc. Reference may in this connection be made
to Article 103 of this very Constitution which in two
separate paragraphs provides for qualifications and
disqualifications
for
membership
of
an
Assembly.
“Qualification” as will appear from Aiyar’s Law Lexicon
means “that which makes person fit to do an act.” The
Lexicon goes on to state: “qualification relates to the fitness
or capacity of the party for a particular pursuit or a
profession”. Webstor defines qualifications to mean “any
natural endowment or acquirement which fits a person for
a place, office or employment, or enables him to sustain
any character with success”. It should be quite appropriate
to refer by qualifications to the competence or the positive
qualities needed for carrying on a profession and to regard
the obstacles in the carrying on of a profession as
disqualifications. Every profession requires for the efficient
performance of the duties involved in it (1)knowledge,
(2)skill and (3)a moral standard. In short whatever goes to
his competence or makes a person fit to discharge the
duties involved in his profession is a qualification. On the
other hand, if a person is debarred from entering a
profession though he is admittedly quite competent to
discharge his duties for some reason not connected with
his competence that is a disqualification. A person may be
disqualified because he has served under a foreign
Government or because he belongs to a particular tribe or
his father was a rebel or because he has already sufficient
income from lands or he is a shareholder of a company
and so on. He may be the most competent person for
carrying on a profession yet he may be debarred because
of some other attributes which he possesses. That will be a
disqualification.”
C.A.No.233 of 2015, etc.
- 44 -
Another pronouncement on the same point but on different facts
was made in the case of Hamid Sarfaraz vs. Federation of Pakistan
(PLD 1979 SC 991) wherein the issue addressed was that when
Article 207 of the Constitution required a person appointed as
Attorney General to possess the qualifications for appointment as
Judge of the Supreme Court of Pakistan, then would such person be
deemed to be under the same ‘disability’ that was placed by the
Constitution on a Judge of the Supreme Court in the matter of
accepting another assignment carrying the right to remuneration. It
was held that:
“… The argument is clearly misconceived, as merely
prescribing a certain qualification for appointment as
Attorney-General for Pakistan does not mean that he
would be governed by the same disability as applies to a
Judge of the Supreme Court.”
Subsequently, the same view has been followed in a reasoned
judgment given by the learned High Court in Muhammad Shahbaz
Sharif vs. Muhammad Altaf Hussain (PLD 1995 Lahore 541). On
the other hand, the two aspects of eligibility, namely, qualifications
and disqualifications to hold office, were held to be interchangeable
by a learned Single Judge of the High Court in Muhammad Yousaf
vs. Irshad Sipra (1988 CLC 2475). This view has subsequently been
shared by individual members of this Court but never as an opinion
of a majority and without considering the afore-noted two
judgments of this Court. One of the basic rules of construction of a
Constitutional instrument is that effect should be given to every part
and every word of a Constitution. Therefore, the Court must lean in
C.A.No.233 of 2015, etc.
- 45 -
favour of a construction which gives effect to every word without
rendering it idle or nugatory. Reliance is placed upon the judgments
in Reference by the President (PLD 1957 SC 219) and Mr. Fazlul
Quader Chawdhry vs. Mr. Mohd. Abdul Haque (PLD 1963 SC
486). Both on the said principle of Constitutional interpretation as
well as the distinct nature and purpose of qualifications vis-a-vis
disqualifications,
the
provisions
of
Article
62(1)(f)
of
the
Constitution
containing
qualifications
cannot
be
used
interchangeably with the disqualification under Article 63(1)(h) of
the Constitution. The two provisions have their separate spheres of
operation. Although the ultimate result of the enforcement of each
provision is the exclusion of a candidate from an election contest on
account of his delinquent conduct, yet each provision is worded
differently and must be interpreted and construed in accordance
with its terms. It goes without saying that since the two provisions
pertain to the same subject matter, therefore, they ought to be
construed harmoniously. However, in the discussion that follows, it
is concluded that the two provisions address significantly different
situations which ought to, in the proper scheme of things, be
interpreted differently.
29.
Under Article 62(1)(f) of the Constitution, the judicial
declaration by a Court of civil jurisdiction against a candidate for
election to Parliament would adjudicate misconduct of the candidate
that has not resulted in his criminal conviction and sentence for
more than two years by the competent Court. Accordingly, we now
consider the argument that a civil law declaration involving
C.A.No.233 of 2015, etc.
- 46 -
personal flaws mentioned in Article 62(1)(f) of the Constitution
should not carry ineligibility for contesting election that is longer in
duration to the disability provided in Article 63(1)(h) of the
Constitution for the same misconduct.
30.
At this juncture, two important considerations must be
kept in mind; firstly, according to Article 63(1)(h) of the
Constitution, the torment of a minimum of two years imprisonment
upon conviction of an offence involving moral turpitude is
necessary. This is of some importance. The reason for such an
approach may be noticed in the view expressed by this Court on the
concept of punishment awarded to an accused in a criminal case. In
Dadullah vs. State (2015 SCMR 856 at p.862) it is held that:
“9.
Conceptually punishment to an accused is awarded
on the concept of retribution, deterrence or reformation.
The purpose behind infliction of sentence is two fold.
Firstly, it would create such atmosphere, which could
become a deterrence for the people who have inclination
towards crime and; secondly to work as a medium in
reforming the offence. Deterrent punishment is not only to
maintain balance with gravity of wrong done by a person
but also to make an example for others as a preventive
measure for reformation of the society. …”
31.
Retributive justice entails several serious consequences
apart from deprivation of personal liberty of the convict. Such a
convict in fact suffers a loss of life by being immobilized, endures
loss of his livelihood, watches disruption and hurt to his family and
lives with the lasting stigma of conviction on his reputation. It is,
therefore, said that a convict, who has undergone a sentence of
C.A.No.233 of 2015, etc.
- 47 -
corporal punishment has “paid his dues to society.” Even after his
release from jail, the convict faces many daunting challenges for
rehabilitating himself in society as a responsible, productive and
acceptable member thereof. It is in this context that one should look
at the disqualification under Article 63(1)(h) of the Constitution for a
limited period of five years imposed upon a convict after his release
from jail. Even so, with the limited period of his disqualification as
an ex-convict for offences involving moral turpitude, he still carries
the odium of his past conviction before the voters in his
constituency, whose hearts and minds he has yet to win. An ex-
convict suffers huge handicaps to find dignity and acceptance for
himself in society. The notable effort by the Constitution to allow
him an opportunity to reform himself and to strive for such a
position in society cannot be deprecated for providing him relief
rather than longer disenfranchisement.
32.
Secondly, on the other hand, a candidate for election
who has committed misconduct falling within the terms of Article
62(1)(f) of the Constitution, in particular, misrepresentation,
dishonesty, breach of trust, fraud, cheating, lack of fiduciary duty,
conflict of interest, deception, dishonest misappropriation, etc. as
declared by a Court of civil jurisdiction has on the Islamic and also
universal criteria of honesty, integrity and probity, rendered himself
unfit to hold public office. He cannot be compared to the case of an
ex-convict under Article 63(1)(h) of the Constitution because he has
not paid a personal price for his delinquent act. It is in such
circumstances that a person declared to be dishonest or in breach of
C.A.No.233 of 2015, etc.
- 48 -
his trust or fiduciary duty or being non-righteous or profligate must
suffer the burden of that finding of incapacity for as long as the
Court decree remains in force. Considering that the Constitution
does not fix the period of incapacitation of such a judgment debtor
shows a clear intention that the lack of qualification under Article
62(1)(f) of the Constitution should extend so long as the declaration
of law envisaged in Article 62(1)(f) remains in the field. If such
declaration is final and binding, then the incapacity to contest
elections to any of the Legislatures provided by the Constitution
becomes permanent. There is no reason for applying the rule of
proportionality to the incapacity of a candidate for election
following a final decree against him in term of Article 62(1)(f) of the
Constitution. Indeed the Court has no jurisdiction whatsoever to
read into the Constitution nor any grounds for treating civil and
criminal
proceedings
alike
in
relation
to
their
respective
consequences.
33.
In order to complete the picture it will be helpful to
record the past view taken by this Court on the question presently in
issue. There are several reported cases of this Court adjudicating
deficiency in qualification under Article 62(1)(f) of the Constitution
of a candidate but some that deal with the duration of his ouster
from election. The first among these is reported as Imtiaz Ahmed
Lali vs. Ghulam Muhammad Lali (PLD 2007 SC 369). For the
General Elections held in the year 2002, Chief Executive’s Order
No.7 of 2002 enacted that if the candidate had been dismissed from
service of Pakistan or a Province on the ground of misconduct
C.A.No.233 of 2015, etc.
- 49 -
involving moral turpitude, he shall be disqualified for contesting an
election to Parliament. The relevant provision did not impose any
time limitation. Consequently, the appellant who had been
dismissed for misconduct from police service on 28.10.1990 was
denied eligibility to contest election. It was held that the appellant
suffered a life time embargo on his eligibility for election because his
dismissal from service for misconduct barred him permanently from
future employment as that would be prejudicial to the good order
and discipline of the police force.
34.
In the post-18th Constitutional Amendment scenario, an
adverse declaration by a Court of law against a candidate is
necessary to oust him from an election. It was held in Abdul
Ghafoor Lehri vs. Returning Officer, PB-29 (2013 SCMR 1271) that
a false declaration made in the nomination papers by a candidate
about his academic qualification led to a permanent embargo on the
candidature for election. This is because Article 62 of the
Constitution did not provide any period for which a person would
stand debarred from contesting elections and, therefore, the
appellant before the Court could not become qualified merely by
efflux of time. To the same effect is the judgment in Muhammad
Khan Junejo vs. Federation of Pakistan (2013 SCMR 1328 at
p.1336) wherein a deficiency in qualification under Article 62(1)(f) of
the Constitution led to a permanent disqualification. This outcome
was followed in Allah Dino Khan Bhayo vs. Election
Commission of Pakistan (2013 SCMR 1655), in which the following
observations were made with respect to the duration of embargo
C.A.No.233 of 2015, etc.
- 50 -
imposed by a deficiency in qualification under Article 62(1)(f) of the
Constitution:
“11.
… The provisions of the said Articles when
examined in the light of the judgment of this Court
referred to and reproduced herein above reveal that
certain disqualifications are removed by the afflux of time
e.g. disqualification on account of conviction or removal
from service. Similarly, the qualifications can be acquired
by some future act of the candidate e.g. by acquiring
exclusive citizenship so as to become qualified in terms of
Article 62(1)(a) of the Constitution. However, with regards
to a qualification in terms of Article 62(1)(f) of the
Constitution, the framers of the Constitution have chosen
not to prescribe any period of time through the flux
whereof or any act or omission through which such
qualification can be acquired if a candidate or a member
has been held not to possess the same. Consequently, if a
person, is held not to be qualified in terms of Article
62(1)(f) of the Constitution such absence of qualification in
law will haunt him forever.”
35.
It is clear from the findings recorded in the afore-noted
four judgments by this Court that the absence of a time limit for the
ineligibility of a candidate for election in Article 62(1)(f) of the
Constitution is the basis for holding his incapacity to be incurable by
efflux of time. The reasons recorded in our judgment reinforce that
conclusion. It may also be noted that the Constitution envisages
other situations in which a permanent bar to the eligibility of a
candidate for election is enforced so long as the judgment that
records or justifies the disability of the candidate remains in
existence and occupies the field. This view is supported by Articles
63
(1)(a)
and
63(1)(b)
of
the
Constitution
that
provide
disqualifications on account of judicial declaration regarding the
C.A.No.233 of 2015, etc.
- 51 -
mental unfitness or the undischarged insolvency of a candidate for
election. These disabilities also continue so long as the adverse
judgment is in the field. Finally, it may be noted that the prescription
by the 18th Constitutional Amendment of an adverse judicial
declaration to precipitate the ineligibility of a candidate for election
has provided a lawful, transparent and fair mechanism to a
candidate under challenge both for contesting and for avoiding the
onset of an embargo on his eligibility to contest elections. The
restriction imposed by Article 62(1)(f) of the Constitution for the
eligibility of a candidate for election to Parliament serves the public
need and public interest for honest, upright, truthful, trustworthy
and prudent elected representatives. The judicial mechanism in
Article 62(1)(f) of the Constitution grants a fair opportunity and
adequate remedy for relief to a candidate under challenge to
vindicate himself. Therefore, the permanent incapacity of a
candidate for election under Article 62(1)(f) of the Constitution is not
an arbitrary, excessive or unreasonable curtailment of his
fundamental right under Article 17(2) of the Constitution.
36.
In the result, we are inclined to hold that the incapacity
created for failing to meet the qualifications under Article 62(1)(f) of
the Constitution imposes a permanent bar which remains in effect so
long as the declaratory judgment supporting the conclusion of one
of the delinquent kinds of conduct under Article 62(1)(f) of the
Constitution remains in effect.
37.
In view of the above, all these cases are directed to be
fixed before appropriate Benches for decision in accordance with the
C.A.No.233 of 2015, etc.
- 52 -
law laid down in this judgment, keeping in view the respective facts
and circumstances of each case.
CHIEF JUSTICE
JUDGE
JUDGE
JUDGE
JUDGE
Islamabad,
Announced in Court
on 13th day of April, 2018
CJ.
APPROVED FOR REPORTING.
Irshad Hussain /*
C.A.No.233 of 2015, etc.
- 53 -
Sh. Azmat Saeed, J.- I have had the
privilege to go through the judgment of my learned
brother Umer Ata Bandial, J., though I concur with
the conclusions drawn in the said judgment but I do
not
find
myself
in
agreement
with
reasoning
employed in its entirety.
2.
The adjudication of the lis at hand requires
the
interpretation
of
Article
62(1)(f)
of
the
Constitution of the Islamic Republic of Pakistan,
1973 so as to determine the period of time to which
the lack of qualification in terms thereof shall extend.
The aforesaid provision is reproduced herein below
for ease of reference:-
“62. (1) A person shall not be qualified to
be elected or chosen as a Member of
Majlis-e-Shoora (Parliament) unless:-
…………………………………………….
…………………………………………….
(f)
he
is
sagacious,
righteous,
non-
profligate, honest, and ameen, there
being no declaration to the contrary
by a court of law; and
……………………………………………….
……………………………………………....
The
words
and
expressions
denoting
the
attributes for being qualified to be a Member of
Majlis-e-Shoora (Parliament), as spelt forth in the
aforesaid provision, leaves no manner of doubt that
C.A.No.233 of 2015, etc.
- 54 -
the same i.e. Article 62(1)(f) of the Constitution is
rooted in and inspired by our Islamic values. It is not
necessary to dwell further on this aspect of the
matter in the instant proceedings. However, the said
provision must be interpreted with great care,
caution and respect.
3.
The historical background and various
amendments,
which
have
been
periodically
introduced into Articles 62 and 63 of the Constitution
have been very ably dealt with by my learned brother
in his judgment and need not to be repeated.
However, Article 62(1)(f) of the Constitution is
required to be interpreted as it stands today. A plain
reading of Article 62(1)(f) of the Constitution reveals
that in order to be a Member of Majlis-e-Shoora
(Parliament),
the
person
must
be,
inter
alia,
sagacious, righteous, non-profligate, honest, and
ameen.
However, if there is a declaration by a
Court of Law to the contrary i.e. he is not sagacious
or righteous or non-profligate, honest, and ameen
then such person shall not be qualified to be a
Member
of
Majlis-e-Shoora
(Parliament).
A
declaration by the Court of Law would mean a
C.A.No.233 of 2015, etc.
- 55 -
conclusive finding. Obviously, such finding would be
with regard to a lis before the Court, arising out of
the violation of a law or non-fulfillment of a legal
obligation. It is clear and obvious that lack of
qualifications in terms of Article 62(1)(f) of the
Constitution is the effect of a declaration by a Court
of Law to the contrary, which is the cause. The
obvious, legal and logical conclusion would be as
long as the cause i.e. the declaration of a Court of
Law holds the field its effect i.e. the lack of
qualification shall also prevail. This appears to be the
only possible interpretation of Article 62(1)(f) of the
Constitution.
4.
The expression “declared by a Court” has
also been used in Article 63(1)(a) of the Constitution,
which is reproduced hereunder:
“63(1)(a)
he is of unsound mind and
has been so declared by a competent
court; or”
(underlining is for emphasis)
5.
Obviously, in the aforesaid circumstances,
the disqualification would continue as long as the
declaration regarding the mental incapacity subsists.
No sane person could seriously urge to the contrary.
C.A.No.233 of 2015, etc.
- 56 -
6.
During the course of hearing of the instant
proceedings, a large number of counsels addressed at
the bar, both on behalf of various parties and as
amicus curie. Each and every counsel was confronted
with the above mentioned obvious interpretation of
Article 62(1)(f) of the Constitution that the lack of
qualification was the effect of the declaration by a
Court of Law, which was the cause and the duration
of such effect would be the duration of the cause i.e.
declaration. The response on behalf of the learned
counsels by and large that upon an accumulative
reading of Articles 62 and 63 of the Constitution
pertaining to the qualifications and disqualifications
of a Member of Majlis-e-Shoora (Parliament) would
reveal that disqualifications resulting from acts and
omissions of much greater gravity the period of
disqualification is limited, hence that lack of
qualification in terms of Article 62(1)(f) of the
Constitution cannot be perpetual. It was also
contended that lack of qualifications in terms of
Article 62(1)(f) of the Constitution also falls squarely
within the disqualification as is set forth in Article
C.A.No.233 of 2015, etc.
- 57 -
63(1)(h) of the Constitution and the negative impact
thereof is for a limited period of time.
7.
Adverting first to Article 63(1)(h) of the
Constitution,
the
reasons
for
disqualifications
provided therein do not appear to be congruent with
the lack of qualifications as set forth in Article 62(1(f)
of the Constitution. More importantly, if such an
interpretation is accepted, it would make Article
62(1)(f)
of
the
Constitution
superfluous
and
redundant. It is an elemental principle of the
interpretation of the Constitution that surplusage
cannot be attributed to any provision of the
Constitution, hence, it is legally impossible to accept
this contention.
8.
No doubt the period of disqualification in
certain sub-Articles of Article 63 of the Constitution
has been provided but such a sunset clause is not
found in Article 62(1)(f) of the Constitution. The
framers of the Constitution chose not to do so. This
Court is empowered to interpret the Constitution but
not to amend it. It is an equally elemental principle of
interpretation of the Constitution that nothing can
be added thereto, therefore, we cannot read into
C.A.No.233 of 2015, etc.
- 58 -
Article 62(1)(f) of the Constitution, a period of such
lack of qualification, which is not mentioned therein.
9.
Some of the learned counsels also voiced
that perhaps the effect of Article 62(1)(f) of the
Constitution qua the period of lack of qualification
may be disproportionate and a little harsh. Such
arguments are perhaps more suitable to the floor of
Majlis-e-Shoora (Parliament) than at the bar before
this Court. We, as stated above, can only interpret
the Constitution not amend or change it. This aspect
of the matter is rather ironic as several persons
before us were or had been the Members of Majlis-e-
Shoora (Parliament) at some point of time and may
have passed the amendments, which now stand in
their way.
10.
None
of
the
learned
counsels,
who
appeared before us confronted the elephant in the
room i.e. the obvious interpretation of Article 62(1)(f)
of the Constitution is that lack of the qualification to
a Member is the effect of declaration by a Court of
Law, which is the cause and period of lack of
qualification would be co-extensive with the period to
the cause i.e. declaration. None of the learned
C.A.No.233 of 2015, etc.
- 59 -
counsels refuted the aforesaid obvious interpretation
but only sidestepped the issue.
11.
However, at the very end, the learned
Attorney General for Pakistan addressed the Court
and in no uncertain terms stated that once
declaration has been made by a Court of Law that a
person is not sagacious or righteous or non-profligate
or honest and ameen, such a person is not qualified
to be a Member of Majlis-e-Shoora (Parliament). This
lack of qualification is the effect of the aforesaid
declaration, which is the cause and as long as the
declaration by the Court holds the field, the person in
respect of whom such declaration has been made will
continue to be deprived of the qualifications to be a
Member of Majlis-e-Shoora (Parliament).
12.
The stand taken by the learned Attorney
General for Pakistan is not only fair but is also in
accordance with the obvious and self-evident intent
of Article 62(1)(f) of the Constitution. Incidentally,
this Court on more than one occasions has already
held that lack of qualification suffered under Article
62(1)(f) of the Constitution is in perpetuity. Reference,
in this behalf, may be made to the judgments of this
C.A.No.233 of 2015, etc.
- 60 -
Court reported as Mian Najeeb-ud-Din Owasi and
another v. Amir Yar Waran and others (PLD 2013 SC
482), Muhammad Nasir Mahmood and another v.
Federation of Pakistan through Secretary Ministry of
Law, Justice and Human Rights Division, Islamabad
(PLD 2009 SC 107) and Allah Dino Khan Bhayo v.
Election Commission of Pakistan, Islamabad and
others (2013 SCMR 1655), and no reason has been
advanced to persuade me to take a different view.
Judge
| {
"id": "C.A.233_2015.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
Present
Mr. Justice Anwar Zaheer Jamali
Mr. Justice Dost Muhammad Khan
Mr. Justice Umar Ata Bandial
CIVIL APPEAL NO. 2352 OF 2008
(On appeal from the judgment/order dated 05.11.2003 passed
by Lahore High Court, Lahore in FAO No. 189 of 1994)
United Bank Limited
…
…
Appellant.
Versus
Fateh Hayat Khan Tawana & others …
…
Respondents.
For the appellant
:
Ms. Raisa Sarwat, ASC.
For respondents (5&6)
:
Syed Najamul Hassan Kazmi, ASC.
Respondents (1-4, 7, 8)
:
Ex-parte.
Date of hearing
:
13.04.2015.
JUDGMENT
UMAR ATA BANDIAL, J. – By order of this Court dated
26.12.2008 leave to appeal was granted to examine whether a second
execution application filed on 16.01.1989 by the appellant during the
pendency of its first execution application for the enforcement of a
money decree dated 20.01.1981 suffers a time bar under Section 48
CPC read with Article 181 of the Limitation Act, 1908?
2.
Briefly stated the facts of the case are that an ex-parte
judgment/decree was passed on 20.01.1981 by a learned Special
Judge Banking in favour of the appellant and against the
CA.2352/2008
2
respondents/judgment debtors for the amount of Rs.4.205177
million together with costs in the sum of Rs.35,127/-. The first
execution application for the enforcement of the said decree was
filed by the appellant on 27.06.1983 before the learned High Court
under the Banking Companies (Recovery of Loans) Ordinance, 1979
(“Ordinance”). That application was registered and numbered as
Ex.A.7-B/1983. Another application by the appellant seeking
attachment of properties in the said execution proceedings was
withdrawn at its first hearing vide order dated 23.11.1983 to “make
an appropriate application after seeking proper instructions from his
client.” The main execution application bearing Ex. A.7-B/1983,
however, continued to remain pending.
3.
On 16.01.1989, the appellant filed an application under
Order XXI Rule 11 CPC read with Section 8(3) of the Ordinance
containing updated particulars for execution of the aforementioned
decree dated 20.01.1981. This application mentions its file number as
Ex.A. 7-B/1983 and refers the contents of the order dated 23.11.1983,
allowing the appellant to file an appropriate application after
seeking instructions from the client (decree holder). Its contents add
accrued interest of Rs.6.268 million to the outstanding amount
payable under the decree and attaches revenue record of properties
subject
to
attachment
and
realization
pursuant
to
the
aforementioned decree. Thereafter, the order of the Court dated
07.02.1989 passed in the first execution application bearing
CA.2352/2008
3
Ex.A.No.7-B/1983 records the following statement by the learned
counsel for the appellant:
“7.2.1989
Mr. Ayyaz Hassan, Adv. For the decree holder.
States that the decree holder-Bank has filed a fresh
Execution Application giving all the details of the
properties sought to be attached and sold in
execution of the decree and therefore this Ex.
Application may be consigned to record. Order
accordingly.“
4.
Simultaneously, the learned Executing Court on
07.02.1989 issued notice to the respondents/judgment debtors in the
above mentioned second execution application which was, however,
registered and numbered by the office as Ex.A.1-B/1989. In reply
thereto, the respondents/judgment debtors filed objections. The
first of these is that the second execution application filed more than
8 years after the passing of the decree under execution is time barred
in terms of limitation period provided in Section 48 CPC read with
Article 181 of the Limitation Act, 1908. Meanwhile, the pecuniary
jurisdiction of the Banking Court was enhanced; accordingly the
said execution matter was transferred to the said Court. The learned
Banking Court at the outset took up for adjudication the objection of
limitation raised by the respondents/judgment debtors. Vide order
dated 14.07.1994, the Banking Court held that the pending execution
proceedings of decree dated 20.01.1981 were time barred. The view
taken by the learned Special Judge Banking, Lahore was affirmed by
the learned High Court in exercise of its appellate jurisdiction vide
judgment dated 05.11.2003. That judgment is presently impugned
before us in this appeal.
CA.2352/2008
4
5.
It is a common ground between the parties that the
limitation period for filing the first execution application of a money
decree passed by a Court of original jurisdiction is three years from
the date of the decree under the residuary Article 181 of the
Limitation Act, 1908. Therefore, the first execution application
submitted by the appellant bearing No.7-B/1983 is admittedly filed
within time. However, both the learned Courts below have taken the
view that the second application filed by the appellant on 16.01.1989
is, according to its own terms, a “fresh” execution application.
Having been filed beyond the period of six years prescribed in
Section 48 of the CPC, this application has been held to be time
barred. Both sides rely on the judgment given by this Court in
Mahboob Khan vs. Hassan Khan Durrani (PLD 1990 SC 778) to
canvas their opposing stands on the said finding. The whole
controversy revolves around the meaning of the expression “fresh
application” used in Section 48 of the CPC in the context of a second
execution application being filed by the appellant during the
pendency of its first execution application.
6.
The learned counsel for the appellant contends that the
second application was filed bearing the same number Ex.A.7-
B/1983 that is given to the first application but it was registered by
the office and wrongly assigned a new number Ex.A.1-B/1989. This
application is filed in continuation of the original execution
application and contains, inter alia, updated particulars of the
properties subject to attachment in terms of the order dated
CA.2352/2008
5
23.11.1983 by the learned Executing Court. Since the original
application was filed within time, therefore, the additional
particulars contained in the second execution application filed on
16.01.1989 are in elaboration of and ancillary to the first application.
Therefore, the impugned finding that the execution proceedings of
decree dated 20.01.1981 are time barred is erroneous.
7.
On the other hand, the contention on behalf of the
respondents/judgment debtors is that the contents of the para-5 of
the second execution application by the appellant acknowledge the
withdrawal of the first execution application. Also, the order dated
07.02.1989 passed in Ex.A.7-B/1983 records the statement of the
counsel for the appellant that a fresh execution application has been
filed and consequently the only application in the field is the second
execution application filed by the appellant.
8.
During the course of hearing it became apparent that
the impugned judgments have treated the order dated 07.02.1989
passed in Ex.A.7-B/1983, consigning the said application to the
record as amounting to disposal of such application. To fortify this
view the learned counsel for the respondents/judgment debtors has
relied on Muhammad Yaqoob v. Qudsia Kishwar (1988 MLD
1379). In the facts of that case, the expression “consigned to record”
has been interpreted to mean “dismissal for non-prosecution.” It is
clear in the present case that the second execution application was
filed on 16.01.1989 during pendency of the first execution
application. The order sheet in Ex.A.7-B/1983 does not record any
CA.2352/2008
6
default by the appellant in complying any judicial order. Therefore,
the consignment to record of Ex.A.7-B/1983 vide order dated
07.02.1989 cannot be presumed to be its dismissal for non-
prosecution or disposal otherwise. Accordingly, the precedent relied
by the respondents has no relevance to the present case.
9.
Significantly, the terms of the order dated 07.02.1989 are
amenable also to the rival interpretation given to it by the appellant.
It is urged that the said order of the learned Executing Court treats
the second execution application to be a substitute or a continuation
of the first execution application. This is because the second
application contains better particulars for the already prayed mode
of execution of the decree. Accordingly, the learned Executing Court
has consigned the first application to record and proceeded with its
substitute. The argument has some force. The question of time bar is
not considered by the order dated 07.02.1989. It arose for
determination after the respondents/judgment debtors were issued
notices on the second execution application. Whilst examining that
objection, the learned Courts below were obliged to consider
whether the first execution application could at all be terminated
without an order dismissing or disposing of the same. This aspect of
the matter was ignored on the presumption that the consignment of
an application to the record amounts to its dismissal. The fact is that
in the absence of a clear order disposing of the first execution
application there is no justification for treating the proceedings
CA.2352/2008
7
therein to have been concluded. The fate of an execution proceeding
in similar situations is explained by a learned full Bench judgment of
the High Court of Sindh in Amir Begum vs. Mir Fateh Shah
(PLD 1968 Karachi 10) wherein Wahiduddin J. (as he then was)
opined as follows:
“… It is a well settled rule of law that an execution application
must be deemed to be pending so long as no final order disposing
it of judicially has been passed thereon. A subsequent application
in such a case for execution will be deemed to be one merely for
the continuation of the original proceedings. In this connection
the Privy Council in Qamar-ud-Din Ahmed vs. Jawahirlal (32 I A
102) observed as under:--
“Their Lordships are of opinion that the execution
proceedings commenced by the petition of the 24th
August 1888 were never finally disposed of and
that the application now under consideration was
in substance, as well as in form, an application to
revive and carry through a pending execution,
suspended by no act or default of the decree-
holder, and not an application to initiate a new
one.”
….
This principle has also been applied in cases where the
application is dismissed or struck off or consigned to the record
room or returned. Such order is not to be regarded as finally
disposing of the petition and a subsequent application will be
regarded as one of revival and continuation of the original
proceedings. …”(underlining supplied).
10.
The judgment in Mahboob Khan’s case ibid is relevant
in laying down that where the first execution application has been
filed within a period of three years from the date of decree under
execution, then any fresh application for execution of the said decree
may be filed within a period of six years from the date of the said
decree. According to the said judgment a fresh application is
CA.2352/2008
8
conceived to be filed “after disposal of the first execution
application.” Therefore, an application that is filed during the
pendency of a timely first execution application cannot be
considered a ‘fresh application.’ This is because it elaborates or
amends the pending first execution application. For that reason the
subsequent application is liable to be treated as a continuation of or
ancillary to the pending execution application. In such a case, quite
obviously the objection of limitation cannot have any relevance.
11.
On the other hand, when a subsequent execution
application has been filed after the disposal of the first execution
application, the objection of limitation may be relevant. However,
even in such a case, the subsequent execution application may
survive notwithstanding its belated institution beyond six years
after the decree under execution, if it satisfies the test and criteria of
amendment of a previously disposed of execution application that
had been filed timely. In such event, the subsequent application
shall be treated as a continuation of or ancillary to the decided
execution application. In the present case, the first execution
application has not been disposed of by a judicial order. Therefore,
the second execution application filed on 16.01.1989 should
plausibly be treated as a continuation thereof or ancillary thereto.
Indeed, for ascertaining the legal status and effect of proceedings
before a Court of law, it is the content and meaning of judicial orders
about such proceedings that are determinative and not the
CA.2352/2008
9
description or name given to the proceedings by a party thereto.
Therefore, in the light of the legal position of the pending execution
proceedings in the present case, the descriptions given thereto by the
appellant or its learned counsel are inconsequential.
12.
For the forgoing discussion, we allow this appeal. The
subsequent execution application filed by the appellant shall be
deemed to be pending before the learned Executing Court which
shall decide the same on merits but subject to the outcome of any
other
preliminary
objection
already
taken
by
the
respondents/judgment debtors to the executability of the decree
dated 20.01.1981. No order as to costs.
J.
J.
J.
Islamabad,
13.04.2015.
Irshad Hussain /*
APPROVED FOR REPORTING.
| {
"id": "C.A.2352_2008.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
Present:
MR. JUSTICE MIAN SHAKIRULLAH JAN
MR. JUSTICE JAWWAD S. KHAWAJA
MR. JUSTICE SARMAD JALAL OSMANY
CIVIL APPEALS NOs. 239 TO 241 OF 2011
(Against the consolidated judgment of the High Court of
Sindh, Karachi dated 3.6.2010 passed in C.Ps. Nos.D-
520/2009, D-2414/2007 & D-827/2007 respectively).
Masood Ahmed Bhatti
… Appellant (in CA 239/2011).
Syed Muhammad Dilavez
… Appellant (in CA 240/2011).
Nasir Uddin Ghori
… Appellant (in CA 241/2011).
VERSUS
Federation of Pakistan thr. Secretary, M/o Information
Technology & Telecommunication etc.
…Respondents (in all cases).
For Appellants:
In person, (in CAs 239 & 240/2011)
For the Appellants:
Mr. Abdur Rahim Bhatti, ASC a/w
(in CA 241/2011):
Raja Abdul Ghafoor, AOR
For the Respondents:
Mr. Zulfiqar Khalid Maluka, ASC
(PTCL, in all cases)
Date of Hearing:
11.8.2011.
J U D G M E N T
JAWWAD S. KHAWAJA:- These appeals have been filed by three individual
appellants who admittedly were civil servants employed by the Federation in the
Telephone and Telegraph (‘T&T’) Department prior to the enactment of the Pakistan
Telecommunication Corporation Act 1991 (the ‘PTC Act’). To provide context to the
discussion which follows, the backdrop of this litigation may briefly be stated. Nasir
Uddin Ghori, the appellant in CA 241/2011 had earlier obtained a judgment from the
Service Tribunal dated 28.5.2004 which held that he “will be deemed to have been
promoted as ADE (B-17) with effect from the date of qualifying degree of B-Tech
(Hons)”. The seniority list of the ADE cadre was also directed by the Tribunal, to be
corrected accordingly. Since this judgment was not implemented by the respondent
namely, Pakistan Telecommunication Company Limited (‘PTCL’), Mr. Ghori
approached the High Court seeking implementation of the same but his Constitution
CAs 239 to 241/2011
2
Petition No.D-827/2007 has been dismissed by a learned Division Bench of the Sindh
High Court vide impugned judgment dated 3.6.2010.
2.
The other two appellants namely, Masood Ahmed Bhatti (CA 239/2011) and
Syed Muhammad Dilavez (CA 240/2011) had different grievances against PTCL
relating, inter alia, to pensionary benefits, promotion and a voluntary separation
scheme. They had approached the Sindh High Court through Constitution Petitions
Nos.D-520/2009 and D-2414/2007. These two petitions have also been dismissed by the
Sindh High Court through the same common judgment dated 3.6.2010 which has been
impugned by Mr. Ghori. The appellants have been non-suited by a learned Division
Bench of the High Court on the short ground that their employment with PTCL is not
governed by statutory rules and therefore, they are not entitled to invoke the jurisdiction
of the High Court under Article 199 of the Constitution. For reasons considered below
and with great respect to the learned Judges, it has not been possible for us to agree with
their conclusion.
3.
The learned Bench, through an elaborate judgment has concluded that PTCL “is
and shall continue to be amenable to the jurisdiction of [the Sindh High] Court under
Article 199 of the Constitution”. However, it has been held that “since PTCL does not
have statutory rules, writ petitions of employees of PTCL are liable to be dismissed”.
The merits of the individual cases set up by the three appellants have not been
considered or adjudicated upon by the High Court. The Court has founded its decision
on the case of Pakistan International Airlines Corporation and others versus Tanweer-
ur-Rehman and others (PLD 2010 SC 676).
4.
From the foregoing narrative, it will be evident that the controversy between the
appellants and PTCL which is now before us has been narrowed down considerably.
PTCL supports the impugned judgment for the reason given therein by the High Court.
The appellants on the other hand have challenged the finding of the Court by
contending that the rules relating to the terms and conditions of employment of the
appellants have statutory force and are, therefore, statutory rules. It has thus been
contended by them that the ratio of the cited precedent has been misapplied.
CAs 239 to 241/2011
3
5.
Since the judgment of the High Court is based on the case of Tanweer-ur-
Rehman supra, it firstly is to be seen if indeed the principle of law enunciated therein
supports the conclusion in the impugned judgment. Para 18 of the cited precedent is of
particular relevance in this context. It sets out the circumstances which led to the
Court’s finding that the regulations which were under consideration in the said case
could not be treated as being statutory in nature. The test laid down for deciding if the
regulations were in fact statutory, was stated with great clarity. These regulations had
been framed by the Board of Directors of the Pakistan International Airlines
Corporation (‘PIAC’) under the PIAC Act 1956. It was observed by the Court that “if
the relationship between the [PIAC] and its employees is regulated by statutory
provisions and if there is any breach of such provisions, an employee ... may maintain
an action for reinstatement”. It was further observed that “the PIAC has regulations
which have been framed by the Board of Directors of the PIAC, pursuant to the power
contained in section 30 of the [PIAC] Act; however, there is nothing on record to
indicate that these regulations have been framed with the previous sanction of the
Central Government or that they were gazetted and laid before the National Assembly
in terms of section 31 of the [PIAC] Act”. This finding of the Apex Court was, in turn,
based on the case titled Raziuddin v. Chairman, PIAC (PLD 1992 SC 531). In short, the
reason for holding that the regulations in question were not statutory was that the
requirements of sections 30 and 31 of the PIAC Act had not been complied with.
6.
The observations in the case of Tanweer-ur-Rehman supra have necessitated an
examination of sections 30 and 31 of the PIAC Act to see if these provisions have any
parallel or relevance in the present appeals. It is quite clear from the PIAC Act that in
order for the regulations to have statutory force, it was necessary that the same be
framed “with the previous sanction of the Central Government”. Additionally, under
section 31 of the PIAC Act, the regulations were required to be gazetted and laid before
the National Assembly. It is only because these contentious regulations had not been
framed with the previous sanction of the Central Government and had not been
published in the official Gazettee, that the Court came to the conclusion the regulations
CAs 239 to 241/2011
4
were not statutory in nature. It follows from the cited judgment that if in fact the
regulations had fulfilled the requirements of sections 30 & 31 of the PIAC Act, there
would have been no dispute or contention as to the statutory status of the said
regulations. The circumstances of the present appeals (considered below) are very
different from the facts in Tanweer-ur-Rehman’s case.
7.
The learned Division Bench of the Sindh High Court which passed the
impugned judgment has not considered the relevant provisions in the PTC Act and the
Reorganization Act relating to the service of employees. This exercise, in our view,
was necessary for deciding the question as to whether the rules of employment
applicable to the three appellants had statutory status and also to see if Tanweer-ur-
Rehman’s case was distinguishable. It is, as noted above, not in dispute that prior to the
establishment of the Pakistan Telecommunication Corporation (the ‘Corporation’)
under the PTC Act in 1991, the appellants were civil servants. It is also not a matter in
contention that at that time (prior to 1991) the appellants were governed by the various
rules and regulations governing the services of civil servants. The Civil Servants
(Efficiency and Discipline) Rules, 1973 and the Civil Servants (Appointment,
Promotion and Transfer) Rules, 1973 provide instances of rules which, among others
were applicable to the relationship between the appellants and their employer namely,
the Federal Government. Such rules undeniably, were statutory, having been framed
under rule-making powers granted to the Federal Government, inter alia, under the
Civil Servants Act 1973.
8.
In 1991, the PTC Act was legislated by Parliament. It was by virtue of section 3
of the PTC Act that the Corporation was established. The PTC Act also contained
provisions in respect of the employees of the T&T Department such as the present
appellants. These employees were referred to as ‘Departmental Employees’ as defined
in section 2 (e) of the PTC Act. Section 9 of the PTC Act expressly stipulated that
“notwithstanding anything contained in any law, contract or agreement, or in the
conditions of service, all departmental employees shall, on the establishment of the
Corporation, stand transferred to, and become employees of the Corporation, on the
CAs 239 to 241/2011
5
same terms and conditions to which they were entitled immediately before such
transfer”. The Corporation, however, was authorized to take disciplinary action against
such employees.
9.
It is clear from this legal provision, that the rules relating to the terms and
conditions of employment of the appellants were given statutory status. This status was
on a higher plane than the status of regulations framed by way of subordinate legislation
under section 20 of the PTC Act. Consequently, whatever rules were in place
governing the employment of the appellants in the T & T Department, were adopted by
reference in the statute itself and were made applicable to and binding on the
Corporation. There can be little doubt that by virtue of section 9 ibid such rules acquired
statutory status having been sanctified by the PTC Act itself. We can, therefore,
conclude without difficulty that the rules of employment which were applicable to the
appellants during their service with the Corporation were statutory rules.
10.
Thereafter in 1995 and 1996, after a series of Ordinances, the Pakistan
Telecommunication Corporation (Reorganization) Act 1996 (the “Reorganization Act”)
was passed. These statutes split up the Corporation into five distinct entities. The
biggest of these five entities in terms of assets and employees was PTCL. It may be
noted, at this stage, that PTCL was incorporated as a limited liability company under the
Companies Ordinance, 1984 as per mandate in section 34 of the Re-organization Act.
The other four entities were crated by the Reorganization Act itself. These were, first,
the Pakistan Telecommunication Authority (the ‘Authority’) under Section 3, second,
the Pakistan Telecommunication Employees Trust (the ‘Trust’) under Section 44, third,
the National Telecommunication Corporation (the ‘NTC’) under Section 41 and fourth,
the Frequency Allocation Board (the ‘Board’) under Section 42 of the Reorganization
Act. As the title and other provisions of the Reorganization Act indicate, its object was
to ‘reorganize’ the Corporation. This law was also meant to ensure the transition of the
Corporation and its affairs to the five entities referred to above and to provide statutory
cover for such transition.
CAs 239 to 241/2011
6
11.
We have already observed that between 1991 and 1996 when the Corporation
was in existence, the rules of employment applicable to the appellants were statutory
rules having been given such status by virtue of section 9 of the PTC Act. What now
needs to be seen is the effect of the Reorganization Act on the rules of employment
applicable to the appellants and to determine if such rules underwent any change so as
to relegate their status to that of non-statutory rules. However, before making this
determination it is necessary to take note of certain provisions of the Reorganization
Act which have relevance to the issue at hand. The first such provision relates to
“Telecommunication Employees”. This term has been defined in Section 2 (t) of the
Reorganization Act. It means such employees “of the Corporation who are transferred
to the employment of the Company under this Act, other than those to whom sub-section
(3) of Section 36 applies”. Section 36 (3) relates only to those persons who were
employees of the Corporation but subsequent to be Reorganization Act have been
transferred to or employed by the Authority, the NTC, the Trust or the Board. Since the
present appellants were neither transferred to nor employed by any of these four
entities, Section 36 (3) has no application to them.
12.
Reverting back to the provisions of Section 2(t) of the Reorganization Act the
appellants would fall within the definition of “Telecommunication Employees” if
transferred to PTCL under the Reorganization Act. Section 35 of the Reorganization
Act is most relevant for the purpose of determining the status of the appellants in terms
of the said Act and also for the purpose of ascertaining if the rules of their employment
can be categorized as statutory rules. In view of their relevance to the controversy
before us, sub-sections (1) and (2) of section 35 ibid are reproduced as under: -
“35.
Vesting of the rights, property and liabilities of the Corporation.
– (1) The Federal Government may, by orders, direct that all or any
property, rights and liabilities to which the Corporation was entitled or
subject to immediately before such orders, and identified therein, shall, on
such terms and conditions as the Federal Government may determine,
vest in –
(a)
the Company;
(b)
the National Telecommunication Corporation (NTC);
(c)
the Authority;
(d)
the Trust; or
(e)
the Board through the Federal Government,
and become the property, rights and liabilities of the respective entity.
CAs 239 to 241/2011
7
(2)
An order issued under sub-section (1) shall specify the employees
of the Corporation who shall, as from the effective date of the order, be
transferred to and become employees of the entity referred to in the order:
Provided that such order shall not vary the terms and conditions
of service of such employees to their disadvantage.
(the underlining is ours).
13.
Mr. Abdul Rahim Bhatti, learned ASC submitted that there was no order issued
under section 35 supra whereby any employees of the Corporation were transferred to
or became employees of PTCL. Learned counsel for PTCL, however, controverted the
submission and was, therefore, asked to refer to the order, if any, issued under sub-
section (2) whereby the appellants became employees of PTCL. He produced before us
S.R.O.115(I)/96 dated 7.2.1996 and contended that the order contained in this
Notification (the ‘Vesting Order’) was an order under Section 35 (2) of the
Reorganization Act. Although the said Notification was issued, under the Pakistan
Telecommunication (Reorganization) Ordinance 1995, prior to the passing of the
Reorganization Act, it has been expressly saved. Under section 59(2) of the
Reorganization Act the Vesting Order was to remain in force “unless amended, varied,
withdrawn, rescinded or annulled by a person or authority competent to do so under
this [Reorganization] Act”. It is not disputed that the Vesting Order has not been
amended, varied, etc. and, therefore, remains in full force and effect. Certain relevant
extracts from the Vesting Order will facilitate our understanding of the scheme whereby
the Corporation was restructured and reorganized into the five entities referred to above.
The Vesting Order, to the extent relevant for our purposes stipulates as under: -
“
Islamabad , the 7th Feb.1996.
ORDER
S.R.O.115(I)/96 – In exercise of the powers conferred by section 35 of the
Pakistan Telecommunication (Re-organization) Ordinance, 1995 (CXV of
1995), hereinafter referred to as “the said Ordinance” and in
supersession of its Order No.S.R.O.1(1)/96, dated the 1st January, 1996,
the Federal Government is pleased to direct that-
(1)
all properties, rights and liabilities (including business
undertaking, goodwill, contingent rights and liabilities) to
which
the
Pakistan
Telecommunication
Corporation
(Corporation) was entitled and subject to, after the transfer of
the properties, rights and liabilities to the Authority, National
Telecommunication
Corporation,
Pakistan
Telecommunication
Employees
Trust
and
Frequency
Allocation Board through the Federal Government, on the
31st of December, 1995, with effect from the 1st January,
CAs 239 to 241/2011
8
1996, vest in and has [sic] become the properties, rights and
liabilities of the Pakistan Telecommunication Company
Limited (Company);
(2)
all
employees
of
the
Pakistan
Telecommunication
Corporation, after the transfer of the employees to the
Pakistan
Telecommunication
Authority,
National
Telecommunication Corporation and Frequency Allocation
Board of the Federal Government, on the 31st of December,
1995, stood transferred to and has [sic] become the
employees of the Pakistan Telecommunication Company
Limited with effect from the 1st January, 1996”.
It is evident from the above extract that all properties, rights and liabilities of the
Corporation were vested in PTCL with effect from 1.1.1996 except for those transferred
to the remaining four entities. Likewise, all employees of the Corporation other than
those transferred to the other four entities referred to above, stood transferred and
became employees of PTCL with effect from 1.1.1996 by virtue of the Vesting Order.
14.
We may now consider the effect of this transfer of the appellants to PTCL
alongwith the assets and liabilities of the Corporation and the implications of such
transfer on the nature of the rules of employment applicable to the appellants from the
date (i.e. 1.1.1996) they became employees of PTCL. The proviso to Section 35 (2) of
the Reorganization Act provides a clear answer to this controversy. It specifies that
even after the transfer of the appellants to PTCL their terms and conditions of service
which existed on 1-1-1996, would be the base and bare minimum in matters of their
employment with PTCL. These terms and conditions were imposed on PTCL by the
Reorganization Act, as a legal obligation and the Vesting Order was issued by the
Federal Government “in exercise of powers conferred by section 35” of the
Reorganization Act. The Federal Government, it will be noted, had been granted limited
powers only; the constraint on it was that the terms and conditions of service of
employees of the Corporation could not be varied to their disadvantage. PTCL, as the
recipient of the properties and rights of the Corporation, also assumed the liabilities of
the Corporation. Such liabilities necessarily included the liabilities owed to the
employees, arising from the terms and conditions of their service as these could not be
varied to their disadvantage.
CAs 239 to 241/2011
9
15.
Thus it is evident that at the moment of transition when the appellants ceased to
remain the employees of the Corporation and became the employees of PTCL, they
admittedly were governed by rules and regulations which had been protected by the
PTC Act. The said rules, therefore, by definition were statutory rules as has been
discussed above. PTCL, no doubt, could make beneficial rules in relation to its
employees which were in addition to the rules of employment prevailing on 1-1-96.
However, by virtue of the aforesaid proviso, PTCL had no power to “vary the terms
and conditions of service” of its employees who were previously employees of the
Corporation, “to their disadvantage”. Even the Federal Government was debarred by
virtue of section 35 ibid, from varying such terms and conditions of service to the
disadvantage of the appellants.
16.
An easy and uncomplicated test becomes available to us to help determine the
status of the employment rules governing the appellants. If the current employer of the
appellants viz. PTCL is constrained by legislation such as section 35 (2) of the
Reorganization Act, and as a consequence, cannot vary the existing rules to the
disadvantage of the appellants, because of such legislation, it must follow that such law
has the effect of saving the rules which existed when the appellants became employees
of PTCL. Such existing rules, having been protected by section 35 (2), therefore, can
only be categorized as statutory rules.
17.
Section 36 of the Reorganization Act also has relevance in determining the
controversy which arises in these appeals. Sub section (2) of Section 36 gives protection
to the terms and conditions of service of employees such as the appellants who stood
transferred from the Corporation to PTCL on 1-1-96. Their terms and conditions of
service cannot be altered adversely by PTCL “except in accordance with the laws of
Pakistan or with the consent of the transferred employees and the award of appropriate
compensation”. When this legal provision is read together with section 35, it becomes
abundantly clear that by operation of the Reorganization Act, the terms and conditions
of service of the appellants as on 1-1-96 stood conferred on them as vested rights under
the said law.
CAs 239 to 241/2011
10
18.
Learned counsel for PTCL stressed certain provisions of section 36 of the
Reorganization Act to contend that the employment rules applicable to the appellants
could not be treated as statutory rules. In particular, he adverted to the proviso to section
36 (1) ibid wherein it has been stipulated “that the Federal Government shall guarantee
the existing terms and conditions of the service and rights including pensionary
benefits” of employees who stood transferred from the Corporation to PTCL. It was
submitted on behalf of PTCL that there would be no occasion or necessity for the
Federal Government to provide a guarantee as aforesaid, if PTCL stood saddled with
the liability of pensionary benefits and the terms and conditions of service of employees
transferred to it. From this provision, learned counsel wanted us to infer by implication
that PTCL was left free to deal with its employees regardless of any constraints
specified in sections 35 and 36 of the Reorganization Act. This contention has no force.
The guarantee does not change the nature or status of PTCL as the principal obligant
required under law to adhere to the protected terms and conditions of service of
transferred employees such as the appellants. The only effect of the guarantee is to
ensure that in the event PTCL becomes incapable of fulfilling its obligations as to
pensionary or other benefits, for reasons such as bankruptcy etc., the employees do not
suffer from such event of default. It is important, at this point, to draw a distinction
between employees who stood transferred to PTCL by virtue of section 35 ibid and the
Vesting Order, on the one hand and those employees, who joined PTCL after 1-1-1996.
The protection under the Federal Government guarantee would not be available to the
latter category whose terms and conditions of service would be contractual in nature
and would, therefore, be non-statutory.
19.
Since the decision in the case of Muhammad Mubeen-us-Salam and others
supra the employees of various government controlled organizations have found
themselves faced with uncertainty as to the forum having jurisdiction to redress their
employment related grievances. Such uncertainty, as in these appeals, arises on the
basis of whether or not their terms and conditions of service are statutory. We may,
however, venture to state that this uncertainty, in many cases, stems from a lack of
CAs 239 to 241/2011
11
in-depth analysis of precedent rather than confusion or lack of clarity in a previously
decided case. The present appeals highlight the validity of this observation. It is likely
the High Court did not receive adequate assistance at the Bar and, therefore, proceeded
to rely on the case of Tanweer-ur-Rehman supra, to arrive at the conclusion that the
terms and conditions of service governing the appellants, as a matter of law, were non-
statutory. The High Court, we say with respect, fell in error as it did not consider the
circumstances noted above or the principle of law enunciated by this Court in terms of
Article 189 of the Constitution. The case of Tanweer-ur-Rehman, in fact, supports the
plea of the appellants that the circumstance considered above ought to have been
examined alongwith the merits of each Constitution Petition because such examination
was essential for the purpose of determining if the respective grievances of the three
appellants were based on statutory rules.
20.
The case of Tanweer-ur-Rehman supra provides guidance in respect of the
consequences which would follow where statutory rules of service are violated by any
employer. To this extent the said case does constitute precedent even in these cases.
Thus, the High Court rightly relied on the observations made by this Court “that if any
adverse action has been taken by the employer in violation of the statutory rules, only
then such action should be amenable to writ jurisdiction”. The difficulty in this case
has only arisen because the reasoning in the case of Tanweer-ur-Rehman in respect of
regulations framed by the Board of Directors of PIAC has been applied in these cases
even though the same is not attracted.
21.
We can now consider the case titled Ejaz Ali Bughti vs P.T.C.L and others (2008
PSC 1224). Great stress was placed on this judgment by the learned counsel
representing PTCL who contended that it was authority for the proposition that the
employees of PTCL were not governed by statutory rules of service. This submission,
of course, is not correct as it is based on a cursory and superficial reading of the
decision in the case. It will be noted from the concluding paragraph of the cited
judgment that the conclusion therein was based on a concession made by learned
counsel representing the petitioner Ejaz Ali Bughti. It was noted by the Court that he
CAs 239 to 241/2011
12
conceded that PTCL did not have statutory rules providing for the terms and conditions
of service of employees. No argument was advanced in line with the above noted
submissions made by learned counsel for the appellant Nasir Uddin Ghori which
submissions were adopted by the other two appellants who were heard in person. It is
well settled that a concession made by a party binds such party alone. It cannot preclude
others such as the present appellants, to argue their case on its merits.
22.
We can now take up the individual appeals for consideration in the light of the
foregoing discussion.
23.
Civil Appeal No.241/2011, titled Nasir Uddin Ghori v. Federation of
Pakistan and others.
It is important to take into account firstly that the appellant Nasir Uddin Ghori
had obtained a judgment dated 28.5.2004 from the Service Tribunal in the following
terms:-
“In view of the above facts the appeal is allowed and the Appellant will
be deemed to have been promoted as ADE (B-17) with effect from the
date of qualifying degree B-Tech (Hons). The seniority list of ADE
should be corrected. Appellants’ subsequent promotion will be governed
as per rules.”
PTCL had filed an appeal (CA 331/2005) by leave of the Court to challenge the
aforesaid judgment of the Service Tribunal. This appeal was dismissed on 25.6.2009 by
means of the following order:-
“Hafiz S.A. Rehman, learned Sr. ASC is present on behalf of appellants
and does not press these appeals as, according to him, in view of the law
laid down by this Court in case titled Muhammad Mubeen-us-Salam v.
Federation of Pakistan (PLD 2006 SC 602) and Muhammad Idrees v.
Agricultural Development Bank of Pakistan (PLD 2007 SC 681), these
appeals stand abated.
These appeals are accordingly dismissed being not pressed.
24.
It is, therefore, clear from the above referred proceedings before the Service
Tribunal and before this Court, that the judgment of the Service Tribunal dated
28.5.2004 had attained finality and had conclusively determined the rights and
obligations of the parties inter se. It is only because the judgment of the Service
CAs 239 to 241/2011
13
Tribunal had not been implemented by PTCL that Mr. Ghori was compelled to file
Constitution Petition No. D-827/2007 in the High Court. Among other reliefs the
appellant had sought enforcement of the judgment of the Service Tribunal and had
prayed for a declaration that the “respondent is under obligation to implement the
same”. Learned counsel for the appellant submitted that the appellant now presses his
right to the fruits of the judgment of the Service Tribunal dated 28.5.2004. The other
reliefs mentioned in Constitution Petition No.827/2007 were not pressed by him. We
are not in any doubt that for the reasons discussed above, the appellant Nasir Uddin
Ghori was entitled to implementation of the judgment of the Service Tribunal dated
28.5.2004. This appeal (CA 241/2011) is, therefore, allowed. The judgment of the High
Court in Constitution Petition No.827/2007 is set aside and the respondent PTCL is
directed to implement the aforesaid judgment of the Service Tribunal dated 28.5.2004
within thirty days from today.
25.
Civil Appeal No.239/2011, titled Masood Ahmed Bhatti v. Federation of
Pakistan and others.
The appellant Masood Ahmed Bhatti had approached the High Court through
Constitution Petition No.D-520/2009. It was, inter alia, alleged by him that termination
of his services w.e.f. 10.3.2008 was invalid and also that PTCL had unilaterally and
without his concurrence imposed a Voluntary Separation Scheme on him. Since this
aspect of the appellant’s case and the other merits of his Constitution Petition were not
discussed or adjudicated upon by the High Court, the impugned judgment to the extent
it relates to the appellant, is set aside. The said petition shall be deemed pending before
the High Court and shall be decided afresh in the light of this judgment.
26.
Civil Appeal No.240/2011, titled Syed Muhammad Dilavez v. Federation of
Pakistan and others.
The appellant Syed Muhammad Dilavez had also sought relief from the High
Court by filing Constitution Petition No.D-2414/2007 alongwith others. The contents of
the Constitution Petition and the relief sought by Mr. Dilavez, prima facie, indicate that
his grievance was against violation by PTCL of his legally protected terms and
conditions of service. The appellant, who appeared before us in person, requested that
CAs 239 to 241/2011
14
his rights be determined by this Court because he had been in Court seeking redress
since 2007. We are afraid this request cannot be acceded to because the merits of the
appellant’s Constitution Petition have, in the first instance, to be decided by the High
Court after affording an opportunity of hearing to the appellant and to PTCL. Since the
merits of the appellant’s Constitution Petition were neither discussed nor adjudicated by
the High Court, the impugned judgment to the extent it relates to the appellant, is set
aside. The said petition shall be deemed pending before the High Court and shall be
decided afresh in the light of this judgment.
Judge
Judge
Judge
Islamabad, the
A.Rehman.
Announced on 7th October, 2011.
APPROVED FOR REPORTING.
| {
"id": "C.A.239_2011.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT;
MR. JUSTICE GULZAR AHMED, HCJ
MR. JUSTICE IJAZ UL AHSAN
MR. JUSTICE MUNIB AKHTAR
NT k
(Against the judgment dated 27.09.2026, 17.07.2018 and
14.11.2018 passed by the Peshawar High Court, Peshawar in Writ
Petitions No. 767-P, 1674-P of 2026 and 3108-P of 2018).
Government of Khyber Pakhtunkhwa through Secretary
Public Health Engineering, Peshawar and others.
(in CA .239/2020)
Government of Khyber Pakhtunkhwa through Chief
Secretary, Civil Secretariat, Peshawar and others.
(in CA .2 74/202 0)
Government of Khyber Pakhtunkhwa through Chief
Secretary, Civil Secretariat, Peshawar and others.
(in CA .283/2020)
.Appellant(s)
Versus
Abdul Manan and others.
(in CA .239/2020)
Ijaz Ali Shah and others.
(in CA.27412020)
Muhammad Nawaz and others.
(in CA .283/2020)
...Respondent(s)
For the Appellant(s):
Mr. Shumail Abmad Butt,
A.G. KP.
Mr. Atif All Khan, Addl. A.G. KP.
.4
Barrister Qasim Wadood,
Addl. A.G. KP.
Mr. 1mm Shaheen, DD. HED.
Mr. Asif Khan, Litigation Officer,
.4
I-lED.
Mr. Amin Jan, AD, Fisheries, KP.
Mr. Guizar Mahmood, A.D.
Fisheries, KP.
Engr. Falak Niaz, AD (Dost).
Rajbar Khan, SDO, PHE, KR
Mr. Saadullah, Asstt. Secretary,
BOR, KP.
U
_
CIVIL APPEALS NO. 23 9, 274 AND 283 OF 2020
2
For the Respondent(s):
Date of Hearing:
Mr. Faheem Ullab Khan, Sr. Law
Officer, KPPSC.
Mr. Assad UIlah Khan, SO, P&D,
Department.
Mr.
Amanatullat
Qureshi,
Deputy
Secretary,
Finance
Department, KP.
Mr. Khaled Rahman, ASC.
(in CA.27412020)
Mr. M. Ijaz Khan Sabi, ASC.
(in CA .283/2020)
N.R.
(in CA.23912020)
25.11.2020 (Judgment Reserved)
JUDGMENT
IJAZ UL AHSAN, J.- Through this single
judgment, we intend to decide Civil Appeals No. 239, 274 and
283 of 2020 (hereinafter referred to as "CA") as they involve a
common question of law.
2. Through the instant appeals, the Appellants have
sought to challenge the judgments of the Peshawar High
Court, Peshawar dated 14.11.18 passed in Writ Petition No.
3108-P/2018, 17.07.18 passed in Writ Petition No. 1674-
P12016 and 27.09.2016 passed in Writ Petition No. 767-
P/2016 (hereinafter referred to as "Impugned Judgments").
Through the impugned judgments, the Respondents had
challenged the action of the Appellants to not regularize them.
Their respective petitions were allowed, and, the Appellants
were ordered to regularize the Respondents in their respective
posts.
q
CJVIL APPEALS NO239, 274 AND 283 012020
3
3.
The brief facts giving rise to this Us are that the
Respondents in CA 239 of 2020 were appointed against
different posts on a contract basis. They were subsequently
regularized with effect from 2008 and not from the dates of
their respective initial appointments. The Respondents in CA
283 of 2020 were appointed as Office Assistant, Typist, and
Naib Qasid. Respondent No. Olin CA 283 of 2020 was later
promoted out of turn as Settlement Tehsildar in 2009 and
later on, was demoted, because the correct mechanism to
appoint him as provided in Section 7 of the Civil Servant
Promotion and Transfer Rules, 1989, was not followed. The
Respondents in CA 274 of 2020 were appointed in the project
known as "Capacity Building Phase-IT" and, after the expiry of
the said project, were relieved. All of the Respondents filed
their respective writ petitions before the learned High Court,
Ii
which were allowed. The Appellants are aggrieved and have
approached this Court.
J
4.
Leave to appeal was granted by this Court
ride order dated 09.03.2020 which is reproduced below
for ease of reference:
"The learned Additional Advocate General, Khyber
Pakhtunkhwa contends that all the Respondents in
these petitions were employed either on project posts
or on contract basis or were employees under Section
42 of the Companies Act, 2017 and in no
circumstances their services were to be regularized.
:1
He further contends that in all impugned judgments,
the learned High Court has merely allowed writ
petitions on basis of similarly placed persons, but
without at all adverting to the facts and circumstances •
of each and every case separately and without
U
applying its mind to the same. He adds that even the
laws under which their appointments were made
CD/IL APPEALS NO.239, 274 AND 283 OF 2020
4
were not adverted to. He submits that the
Respondents who are employees on projects or
contract employees or Section 42 employees were not
liable to be regularized and thus their regularization
by the learned High Court through the Impugned
Judgment in these petitions was altogether illegaL In
support of the contentions, the learned law officer has
referred to a three-member judgment of this Court
dated 24.06.2014 passed in Civil Appeal No.687 of
2014 (Government of Khyber, Agriculture, Livestock
and Cooperative Department through its Secretary
and others v Ahmad Din and another).
2. We note that some of the petitions are time barred
and in one of the petitions even no condonation of
delay has been filed. The learned Law Officer states
that such will be done by the petitioners.
3. The contentions raised by the learned Additional
Advocate General, Khyber Pakhtunkhwa need
consideration. Therefore, subject to limitation, leave to
appeal is granted in these petitions to consider inter
alia the same. The appeal stage paper books shall be
filed within a period of one month with permission to
the parties to file additional documents if any. As the
matter relates to service, the office is directed to fir the
same expeditiously preferably after three months.
4. In the meantime, operation of impugned judgment(s)
shall remain suspended."
S. The Learned Additional Advocate General, Khyber
PaXhtunkliwa (hereinafter referred to as "KP") contends that
the Respondents in CA's 283 and 274 were project employees
with no right to regularization. He has further argued that the
Respondents being project employees are not covered under
the HIP Civil Servants (Amendment) Act, 2005 (hereinafter
referred to as the "2005 Act") because the 2005 Act
specifically excludes project employees from its purview,
Further, that the HIP (Regularization of Services) Act, 2009
(hereinafter referred to as the "2009 Act") also specifically
excludes project employees from its application, arid, as such,
the Respondents are not covered under the 2009 Act. He adds
CIVIL APPEALS NO. 239,274 AND 283°F 2020
that the Respondent in CA 239 of 2020 was appointed on a
stop-gap arrangement which is not covered for regularization
under Section 19 of the 2005 Act. As such, the High Court
erroneously held that the judgment rendered in W.P
854/2000 applied to the said Respondent's case because the
said judgment applied to employees of District Swat only. He
further submits that, whenever a position is advertised, it has
to be filled alter following correct procedure and formalities.
As such, the Respondents could not have been arbitrarily
appointed against their respective posts without following the
procedure of transparent appointment or, the procedure
provided by the KP Public Service Commission (hereinafter
referred to as "KPPSC")
6. The learned ASC appearing on behalf of the
Respondents argued that other similarly placed employees
were regularized whereas the Respondents were not, as such,
this amounts to discrimination on part of the Appellants
which is impermissible under the law. He further argued that
all Respondents were validly appointed and, the Appellants
could not relieve them from their positions arbitrarily when
they have regularized other similarly placed employees. He
further submits that the Respondents in CA 239 of 2020
should have been regularized from the date of their initial
appointment as opposed to 2008. Since the Respondents had
been working against their respective posts before the
promulgation of the 2005 Act, they ought to have been
treated as civil servants and thus, regularized from before
GB'S. APPEALS NO.239.274 AND 283 OF 2020
04.11.92. He adds that not extending benefits to the
Respondents in CA 239 of 2020 from 04.11.92 amounts to an
illegality when the same benefits have been extended to other
employees who stood on the same footing.
7. We have heard the learned AAG and also the
learned Counsel for the Respondents. The questions which
fall before this Court for determination are as follows:-
(i) Could the Respondents be regularized under
the 2009 and 2005 Acts;
(ii) Could the Respondents in CA 239 of 2020 be
regularized with effect from an earlier date as
opposed to 2008.
COULD THE RESPONDENTS BE REGULARIZED UNDER
THE 2009 AND 2005 ACTS?
8. The learned AAG submits that the 2009 Act was
inapplicable to all of the Respondents because they were
project employees. To examine this issue, Section 3 of the
2009 Act is reproduced as under for ease of convenience:-
"Regularization of services of certain employees.----
All employees including recommendees of the High Court
appointed on contract or ad-hoc basis and holding that
post on 31st December, 2008 or till the commencement of
this Act shall be deemed to have been validly appointed
on regular basis having the same qualification and
experience for a regular post:
Provided that the service promotion quota of all
service cadres shall not be affected."
The word employee has been defined in Section 2(b) of
the 2009 Act supra which is produced as under:-
" "employee" means an adhoc or a contract employee
appointed by Government on adhoc or contract basis or
second shift/night shift but does not include the
employees for project post or appointed on work charge
-fl
CIVIL APPEALS NO.239, 274 AND 283°F 2020
7
basis or who are paid out of contingencies;" (Underlining
is ours)
A bare perusal of the aforenoted provision of the 2009
Act reveals that, to be regularized under the 2009 Act the
employee in question may be an ad hoc or a contract
employee who must be appointed by the Government. There
are three categories of employees who cannot take benefit of
Section 3 supra and claim regularization. First, project
employees, that is, employees who are appointed against a
project post. Whenever the said project comes to an end
unless otherwise provided, the posts in the said project too
come to an end and all appointees stand relieved. Second,
employees appointed on a work charge basis. Third, those
employees who are paid out of contingencies. The last proviso
is perhaps there because funds for contingencies are limited
and mostly lime-bound. As such, whenever the contingent
funds run out, employees may be relieved, by following the
proper procedure.
9. It is an admitted fact that the Respondents in CA
274 of 2020 were project employees. Section 2(b) of the 2009
Act specifically excludes project employees from its purview,
therefore, by no stretch of the imagination could the learned
High Court have read into the 2009 Act what it does not
specifically provide. When the intent of the legislature is I
manifestly clear from the wording of the statute, the rules of
interpretation require that such law be interpreted as it is by
Li
assigning the ordinary English language and usage to the
words used, unless it causes grave injustice which may be
--------------ii
CA'iL APPEALS NO.239, 274 AND 2830? 2020
8
irremediable or leads to absurd situations which could not
have been intended by the legislature. Only then, the Court
may see the mischief which the legislature sought to remedy
and interpret the law in a manner that meets the intent of the
legislature. We are therefore of the view that the conclusion to
this effect reached by the High Court is quite erroneous and
unsustainable in law.
10. The learned High Court has held that the
Respondents were fully covered by Section 19(2) of the 2005
Act. For ease of reference, the relevant portion of Section
19(2) is reproduced as under: -
"A person though selected for appointment in the
Prescribed manner to a service or post on or after the 1st
day of July 2001, till the commencement of the said Act,
but appointed on contract basis, shrill, with effect from
the commencement of the said Act, be deemed to have
been appointed on regular basis." (Underlining is ours)
It has been argued by the learned AAG that the posts
against which the Respondents were appointed are
specifically excluded from the application of Section 19 and
consequently, they could not have been regularized. A bare
perusal of the alorenoted provision shows that anyone who
wishes to avail the benefit of Section 19 has to be appointed
in the prescribed manner. What this effectively means is that
an incumbent has to go through the process of selection and
appointment which consists of advertisement, open
competition, a level playing field for all, and transparency and
other processes followed by the Federal or Provincial Public
Service Commission. Admittedly, none of the Respondents
.
t
CIVIL APPEALS Na 239, 274 AND 283 OF 2020
9
were appointed through the said Commission or the
alorenoted processes as is evident from their appointment
orders, and, were initially appointed on contract. As such, the
Respondents cannot claim that they were covered under the
said provision of the law unless they prove that they went
through the process of the KP Public Service Commission or
equivalent or had come through the processes alluded to
above and, were then appointed against their respective
posts.
11. Even otherwise, the class of employees to which
the Respondents belong has been specifically excluded from
the definition of a civil servant as provided in Section 2(b) of
the KP Civil Servants Act, 1973 which is reproduced as
under: -
"(b) —civil servant means a person who is member of a
civil service of the
Province, or who holds a civil post
in connection with the affairs of the
Province,
but
does not include-
(i)
a person who is on deputation to the Province from
the Federation or any other Province or other
authority;
(ii)
a person who is employed on contract) or on work
charge basis or who is paid from contingences; or
(iii)
a person who is —worker or —workman as
defined in the Factories Act) 1934 (Act XXV
of
1934), or the Workman's Compensation Act, 1923
(Act VIII of 1923);
The Respondents in CA 283 were appointed in the
Settlement Operation, which, according to the learned AAG,
was to be run as a project. As such, upon expiry of the
Settlement Operation, the Respondents were to be relieved
and no regular appointments thereto were to be made. The
..
..
CIVIL APPEALS NO.239. 274 AND 283 OF 2020
10
learned AAG further submits that the matter of regularization
of the Respondents relates to the terms and conditions of
their appointments, which squarely falls within the
jurisdiction of the Service Tribunal in light of Article 212 of
the Constitution of the Islamic Republic of Pakistan. When
confronted with this argument, the learned ASC for the
Respondents merely stated that since others were regularized,
therefore, the Respondents should have been regularized as
well. We note that the Respondents have conceded that they
were working in a Project as evident from their Writ Petition
before the High Court where they have stated the following:-
"That the services of the petitioners are retained by the
respondents in the Settlement Project Chitral till date"
(Underlining is ours)
11. When the Respondents themselves are conceding
that they were project employees, they cannot change their
stance at this stage and claim that they ought to have been
regularized under Section 19 of the 2005 Act which
specifically excludes project employees from its purview. As
such, the High Court without examining this position taken
by the Respondents held that they were entitled to
regularization. This amounts to reading into the 2005 Act so
also the KP Civil Servants Act, 1973, something which has
not been provided in the said Acts. This is, in our view, a
transgression of the mandate of Article 199 of the
Constitution of the Islamic Republic of Pakistan which is
impermissible and constitutes an excessive exercise of
jurisdiction. Section 19 has to be read with the rest of the KP
CIVIL APPEAlS NO.239274 AND 283 OF 2020
Civil Servants Act, 1973. Though Section 19 of the 2005 Act
provides the regularization of certain employees subject to the
fulfilment of certain conditions and deems all those appointed
while following the prescribed procedure as civil servants,
nevertheless, the ambit of Section 19 cannot be stretched to
include a separate class of employees into the definition of
civil servant provided in Section 2(b) of the KP Civil Servants
Act, 1973. When the definition is unambiguous, the High
Court cannot stretch it to include the Respondents in its
purview. This amounts to a usurpation of the powers of the
Legislature and the Executive as envisaged in Article 7 of the
Constitution of the Islamic Republic of Pakistan.
COULD THE RESPONDENTS IN CA 239 OF 2020 BE
REGULARIZED WITH EFFECT FROM AN EARLIER DATE
AS OPPOSED TO 2008?
12. The learned AAG argued that the services of the
Respondents in CA 239 were regularized according to the law
i.e. Section 19(2) of the 2005 Act read with the First Proviso of
Section 19 of the KP Civil Servants (Amendment) Act, 2003.
Further, that the judgment in W.P No. 854/2000 is specific to
the employees of District Swat only and has no bearing on the
present Respondent's case. As such, the Respondents in CA
239 could not have been regularized from the date of their
appointments, and, were properly regularized with effect from
2008. As noted above, Section 19(2) of the 2005 Act provides
that all those employed on contract on or before 01.07.01 till
the commencement of the 2005 Act shall be deemed to be
appointed on regular basis. The 2005 Act was published in
CIVIL APPEALS Na239, 274 AND 283 07 2q20
12
the official gazette on 23.07.05. By no means can the
Respondents mentioned above claim that they ought to have
been regularized with effect from their respective dates of
appointments whiáh predate the cut-off dates of the 2005 Act.
As such, the learned High Court erred in concluding that they
should have been regularized from the dates of their
appointments. When the law itself provides a date of its
application, the learned High Court cannot, on any ground,
amend the said date and extend the application of the 2005
Act to the extent that those who are not covered under it, gain
its benefit.
13. The learned High Court has based reliance on the
judgment in W.P No. 854/2000 to hold that the Respondents
should have been regularized from the date of their initial
appointments. We find this reliance to be misplaced for the
reason that the said judgment pertains to employees of a
different department and, only relates to the regularization of
the petitioners therein. It does not talk about pre-dating the
regularization of the petitioners therein. As such, placing
reliance on the said judgment is erroneous and is
distinguishable from the circumstances. When the competent
authority has regularized the Respondents per the law,
merely by stating that since others were regularized in a
different set of facts and circumstances from an earlier date,
the High Court has erred in law and its findings to this effect
are unsustainable.
t±.t
..fl
I
14.11.2018.
CIVIL APPEALS 11a239, 274 AND 283 OP 2020
13
14.
The Impugned Judgments of the learned High
Court proceed on an incorrect factual and legal premise
and have incorrectly applied the relevant law, rules, and
regulations to the facts and circumstances of the cases
before it. We are therefore in no manner of doubt that the
impugned judgments are unsustainable in law as well as
facts and are liable to be set aside.
15.
For reasons recorded above, we allow these
appeals and set aside the Impugned Judgments of the
Peshawar High Court dated 27.09.2015, 17.07.2018 and
14,01. 19
Hans, L.C.
_Atot Approved For Reporting'
| {
"id": "C.A.239_2020.pdf",
"url": ""
} |
—
9
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
PRESENT:
Mr- Justice Ijmar Atta Bandial
Mr. Justice Sajjad Ali Shah
Mr. Justice Munib Akhtar
)
Civil Appeal No. 24-K of 2019.
Against the order dated 19-10-2018 passed by the
High Court of Sindh at Karachi in FA No. 15 of 2018)
Pak Leather Crafts Limited and others.
Appellants
Versus
Al-Barka Bank Pakistan Limited.
... Respondent
For the Appellant (s)
Mr. Hassan Khurshid l-'ashmi, ASC.
For the Respondent(s)
r Mr. Ghulam Mohiuddin Qureshi, ASO.
Date of Hearing
18032021
!p4g !!M
Said All Shah. J. The appellants have impugned the
judgirent of the Sindh High Court, "hereby their appeai under Section 22
of Ihe Financial Institutions (Recovery of Finances) Ordinance. 2001, was
dismissed after having been found barred by rime.
2. The admitted position as emerges from the record appears to
he that the appellants applied for certified copy of the decree after 5 days of
its preparation and consumed 23 days in filing appeai after obtaining the
certified copy which makes in ah 28 days and the lime for filing appeal
prescribed under the Ordinance, 2301 admittedly is 30 days. The only
point therefon,, in the instant appeal is as to whethcr the time of 38 days
consumed by the appellants in paymeru of fee/cost for the cerUlied copies
after it was estimated could he excluded under Section 12(5) of the
Limitation Act. The High Court came to the conclusion that such tirnt
CA 244. f2(119
2
cannot be termed as time requisite for obtaining copy of judgment or decree
and, therefore, could not be excluded under Section 12 of Limitation Act,
3.
Leave was granted by this Court on 29.5.2019 inter alia, to
"consider whether the scope and effect of the decisions of this Court relied
upon in the impugned judgment (Fateh Muhammad and others vs. Malik
Qadir Bakhsh, 1975 SCMR 257 and Mst. Jarnila Khatoorz and another vs.
Mst. Tajunnisa and others, PLD 1984 Sc 208) have (as concluded by the
learned Division Bench) been left unaffected notwithstanding the addition of
the aforementioned subsection (5) to s.12, and also to consider whether (also
as held) the facts and circumstances of the present case came within the
scope of the judgment of this Court reported as Mian Muhammad Sabir vs.
Malik Muhammad Sadiq through legal heirs and others PLD 2008 SC 577".
4. Learned ASC for the appellants has contended that the rule
128 of the Sindh Chief Court Rules (Appellate side) and Rule 324 of the
Sindh Civil Court Rules, which require the deposit of cost before the
certified copies are prepared, are not applicable to the Banking Court and,
therefore, there was no requirement to first deposit the cost. When inquired
as to whether the certified copies of judgment and decree or order in the
Banking Court are issued free of cost, the learned counsel fairly conceded
that such copies are always issued on payment of cost in advance but
submitted that the period consumed by an applicant in depositing the
required cost would be excluded under the provisions of sub-Section 5 of
Section 12 of the Limitation Act. It was next contended that in accordance
with the provision of sub-Section 5, the period of limitation stops upon
filing of an application for certified copy and then starts once the notice for
delivery of certified copy of the judgment in terms of section 12(5) of the Act
is received. In this very perspective, learned counsel extended his
arguments by submitting that since the Banking Court has no system of
chits or receipts to intimate the date on which certified copy is to he
tA24-Ko12019
3
collected, therefore, notice in that respect was necessary. It was lastly
contended that the case law relied upon to support the impugned judgment
pre-date the amendment in Section 12 by introducing sub-Section 5 and,
therefore, the dicta laid in judgments relied upon by the respondent are not
applicable to the case in hand.
5.
On the other hand, learned counsel for the respondent
supported the judgment by contending that the exclusion of time as
envisaged under Section 12 consumed in obtaining the certified copies of
judgment and decree by employing the words "time requisite" means the
time consumed by the Court for preparing the certified copy and does not
cover the time which is consumed by a litigant. It was next contended that
cost was estimated on the very day when the application for certified copy
of judgment and decree was made and the appellant consumed 38 days in
payment of costs which could not be excluded for computing the limitation.
In support of his contentions, reliance has been placed on the judgment of
this Court in the case of Fateh Malik vs. Malik Qadir Bakhsh (1975 SCMR
157) Jamila Khatoon us. Tai-un-Nissa (PLD 1984 SC 2081 and Mkzn
Mohammad Sabir Vs. Malik Muhammad Sadig throu gh his legal heirs &
others (PLD 2008 Supreme Court 577).
6.
We have heard the learned counsel for the respective parties
and have perused the case law cited at bar.
7.
The main point which requires our consideration is as to
whether the time consumed by a litigant in payment of cost of the certified
copy could be excluded under the newly added sub section (5) of section 12
of the Limitation Act while computing the period of limitation. OR, in other
words upon filing of application for the grant of certified copies of the
judgment, decree or order, the time would stop, leaving upon the Court to
repare the certified copies at its own expenses and then issue intimation
CA 24-K of2O9
4
notice to the litigant to collect so that the period of limitation could
commence
8.
In the instant case the admitted facts are that judgment was
announced by the Banking Court on 28.11.2017 whereas the decree was
prepared on 30.11.2017. The application for certified copies of judgment
and decree was made by the appellant on 05.12.20 17 and on the same day
the copyist estimated the fee for certified copies. The appellant admittedly
paid the fee for the certified copies on 13.01.2018 i.e. after 38 days, the
copies were made ready on 15.01.2018 and were received on the same date
and thereafter the appeal ultimately was filed before the High Court on
7.2.2018. The appellants or their counsel did not file any Affidavit at any
stage explaining the time consumed in payment of fee/cost for making
copies or obtaining the same; on the contrary it is claimed that the period
of limitation stops from the day the application for certified copies was
made, and would commence from the day the notice, intimating that
certified copy was ready for delivery is served would be time requisite as
there was no requirement and/or rule requiring payment of cost/fee of
copies. Though the submission made by the counsel contradict his own
stance of depositing cost/fee for certified copies well before commencement
of preparation of copies, despite the same, we would examine as to whether
there was any requirement of payment cost/fee for obtaining certified
copies of judgment, decree or order etc., and further that if the copies were
to be issued on payment of fee then the time consumed in payment of such
fee would fall within the ambit of time requisite as envisaged under section
12 of the Act. In order to understand the legislative intent we need to first
examine the original text of Section 12 and the manner in which it was
interpreted and then the purpose behind legislative intervention to add up
Section 12 by introducing sub-Section 5 thereto. The original text of Section
12 ofthe Limitation Act read as follows:
C k 24-K of 2019
5
"12. Exclusion of time in legal proceedings.- (1) In
computing the period of limitation prescribed for any suit,
appeal or application, the day from which such period is to
be reckoned shall be excluded.
(2) In computing the period of limitation prescribed for an
appeal, an application for leave to appeal and an application
for a review of judgment, the day on which the judgment
complained of was pronounced, and the time requisite for
obtaining a copy of the decree, sentence or order appealed
from or sought to be reviewed, shall be excluded.
(3) Where a decree is appealed from or sought to be
reviewed, the time requisite for obtaining a copy of the
judgment on which it is founded shall also be excluded.
(4) In computing the period of limitation prescribed for an
application to set aside an award, the time requisite for
obtaining a copy of the award shall be excluded."
9. A bare perusal of the pre-amended Section 12 of the Act reveals
that it details the manner in which period of limitation prescribed for any
suit, appeal or application, is to be reckoned. It provides for the exclusion of
certain time period for obtaining the certified copies by prescribing it as
"Lime requisite" for obtaining a copy of the order appealed. However, the
provision of Section 12 of the Limitation Act providing exclusion of "time
requisite" are applicable only after the application for certified copies is
submitted, and the consistent view of this Court has been that the "time
requisite" includes only that period of time which is taken up in drawing up
the judgment, decree or order by the official of the Court in preparing and
issuing the same, and does not include the period of time consumed by the
litigant. The reason being that these provisions were always interpreted
keeping in view the rules in the field for obtaining certified copies of decree
or order such as rule 128 of the Sindh Chief Court Rules as well as rule
324 of the Sindh Civil Court Rules which provided that "the preparation of
copies not commenced until prescribed fee deposited". A similar provision is
found in "Rules & Orders of the Lahore High Court Court; volume V Chapter
(-14-Koi2OI9
6
5, Part B(6)(v) which provides that every application for attested copy will be
entertained subject to deposit of cost in advance. It appears that these rules
were adopted by rest of the High Courts except Sindh, which as stated, had
its own rules. Likewise, rule 133 of the Sindh Chief Court Rules as well as
rule 329 of the Sindh Civil Court Rules provide for the manner in which
copies were to be certified and were to contain the endorsement of following
particulars:-
"(I) the date of application for copy;
(2)
the date of estimate offee;
(3)
the date of deposit of estimate fee & the day of supply of
stamps;
(4)
the date of certification by Chief Ministerial Officer; and
(5)
the date of delivery of the copy.
The case-law developed on the pre-amendment Section 12 throughout
would reflect that the period prescribed for filing of appeal or the other
prescribed proceedings would not stop, merely upon filing of application for
the certified copies unless the fee/cost for the certified copies was paid.
However, the time consumed by the office of the Court, for assessment of
cost/fee would be excluded while computing the period of limitation.
However, filing of application was treated as complete for the purposes of
excluding time when it was entertained after payment of cost/ fee. The case-
law on pre-amended Section 12 revolved upon the interpretation of the
keyword in that section i.e. "time requisite" and the consistent view of this
Court was that the time consumed by the office of the court in preparing
copies and/or at times failure on their part to intimate that the copies were
made ready or that the fee was estimated, was held to be 'time requisite",
and was accordingly excluded while computing the period of limitation but
not the time consumed by a litigant on account of his negligence or default.
10. The term "time requisite" was first considered by the Privy
Council almost hundred years ago in the case of Jell Dhot, N. Surtu Vs. T. S.
Chettuar (AIR 1928 PC 123) to the following effect:-
CA 24K ol 2019
The word requisite is strong word; it may be regarded as
meaning something more than the word required It means
'properly required, and it throws upon the pleader or
counsel for the appellant the necessity of showing that no
part of the delay beyond the prescribed period is due to his
default. But for that time which is taken up by his
opponent in drawing up the decree or by the officials of the
Court in preparing and issuing the two documents, he is
not responsible".
11. Likewise, in the case of West Pakistan Industrial Development
Corporation Vs. Aziz Qureshi (PLD 1973 Supreme Court 222), the view taken
by Lahore High Court in the case of Gui Mohammad Vs. Allah Ditta (PLD
1960 Lahore 443) was affirmed by this Court by holding:-
"In the case under report it has been held that the "time
requisite 'for obtaining copies which can be excluded under
section 12, Limitation Act, is the time which is taken
between the date of application and the date when the
copies are ready, but it can be further extended if further
delay takes place by reason of the carelessness of the
office in giving wrong Information to the applicant as to the
date on which the copies would be ready, or in giving no
information at all".
12. In the case of Fateh Muhammad and others VaiialikD_241r
Bakhsh (1975 SCMR 157), the term time requisite" was elaborated in the
following terms:-
'It is well settled that the time requisite for obtaining copy
of order within the meaning of section 12 of the Limitation
Act, 1908 means only the interval between the date of
application for supply of copy and the date when it is
ready for delivery. Even during this interval, due diligence
on the part of the litigant is required by law, and no delay.
unless such as was caused by circumstance over which
he had no control and which he could not by due diligence
be avoided, can form part of time requisite for obtaining
the copy- The time between the date on which the copy is
--
I
- CA 24-K of 2(119
8
ready for delivery, and the date on which the applicant
chooses to take delivery thereof is not a portion of the time
requisite for obtaining a copy"
13.
In the case of Mst. Jarnila Khatoon and another Vs. Mst.
Taiunnisa & others (PLD 1984 Supreme Court 208), again the term "time
requisite" came for consideration before this Court and after observing that
the appellant in order to claim exclusion of time under Section 12 of the
Limitation Act must act with reasonable promptitude and diligence in order
to satisfy the Court that the time which he claims to be excluded was
properly required in obtaining copies, it was held:-
"In failing to deposit the stamps and wasting 37 days,
without any sufficient cause the appellant was clearly to
blame and the time thus spent cannot be held to be "time
requisite" for obtaining copies."
14.
In the case of Ahmed Nawaz Vs. Muhammad Aijub (PLD 1988
Supreme Court 258), the petitioner in the stated case was relying on West
Pakistan Industrial Development Corporation Karachi Vs. Aziz Qureshi (1973
SCMR 555) by claiming that the time between the date when the copy is
ready and the date when it was delivered, should have been excluded as of
a right being "time requisite" for obtaining the copy, and this Court while
relying on its own judgment in the case of Fateh Muhammad (supra) held
that under the existing law, (Section 12 of the Limitation Act) the period, as
in dispute in this case, could not be excluded as of a right, however, in a
given case, the delay could be condoned only on furnishing of sufficient
explanation in that behalf. In this background to eliminate uncertainty and
difficulty faced by the litigants regarding the period spent between the date
when the copy is ready for delivery and the date for obtaining delivery a
legislative intervention was proposed and consequently in 1991 sub section
(5) was introduced in Section 12 of the Limitation Act, which reads as
follows: -
CA 24-K of 2010
19
"For the purposes of subsections (2), (3) and (4), the time
requisite for obtaining a copy of the decree, sentence,
order, judgment or award shall be deemed to be the time
intervening between the day on which an application for
the copy is made and the day actually intimated to the
applicant to be the day on which the copy will be ready for
delivery".
15. Before we proceed to examine the effect of afore-stated deeming
provision, we would like to examine the cases decided by this Court after
the introduction of sub-Section 5 to Section 12 of the Act through a
deeming provision. The first judgment in time was in the case Nooruddin vs.
Pakistan (2000 SCMR 354). In this case though the provisions of sub-
Section 5 were examined but no findings thereon were recorded as the
controversy was the announcement of judgment during vacation without
notice to the parties and the commencement of limitation from the date of
knowledge of the judgment intended to be challenged or otherwise.
Thereafter another two-Member Bench of this Court in the case of Shuiahat
Hussain us. Muhammad Habib (2003 SCMR 176) accepted the contention
that notice as required under Section 12(5) of the Limitation Act for
collecting the copies was not received and in case the time was calculated
from the day of certifying copy, the petition was well within time. The
relevant portion from the judgment reads as under:-
"According to learned counsel, the office of the Copyist
Branch had not issued notice to petitioner for collecting the
certified copy of the judgment for a particular date in terms
of section 12(5) of the Limitation Act and if the time is
calculated from, the date of certifying the copy i.e. 11th
December, 2001, then the petition is within time which was
bmitted on 121h January, 2002.
in view of above position, we are of the optfliOfl that the
petition is within time".
CA 24-K of 2019
10
16. However, no reasons whatsoever for accepting such
contentions were laid down. Thereafter this Court in the case of iftikhar AU
vs. Abdul Rashid (2003 SCMR 1560) had the opportunity of examining the
provision of sub-Section 5, on an argument that according to Section 12(5)
of the Limitation Act, the time spent for obtaining certified copy would
extend to the date when the certified copy of the judgment was delivered. A
three-Member Bench of this Court was of the view that the intimation of the
day when the copy is made ready is to be stated by the applicant by
producing a chit issued by the copying agency. The observations in para 4
are to the following effect but again the observations were without
examining the effect of the deeming clause:-
"4. Learned counsel for the petitioner when questioned has
no answer as in the said application, it was not disclosed
as to the date which was indicated to the petitioner on the
chit issued by the Copying Agency to obtain certified copy
because that would have been the determining factor,
because originally in routine on the Chit, date is indicated
by the Copying Agency on which date the applicant is
required to inquire from the Copying Agency about the
readiness of the copy. If the same was not ready on the
said date, then the question would have arisen whether
further notice should be given to the petitioner or not,
therefore, in our view even if the reasons given by the
learned Judge of the High Court that section 5 of the
Limitation Act was not applicable are ignored and the
arguments of the learned counsel for the petitioner is
considered, the same has no factual basis as no pleading
was made as observed above as to the date which was
given to the petitioner originally to procure copy from the
Copying Agency"
17. Finally the last judgment which came to our notice on the
question of limitation was again of a three-Member Bench of this Court in
the case of Muhammad Sabir vs. Muhammad Sad ip (PLD 2008 SC 577)
CA 24-K of 2019
ii
wherein this Court refused to accept the proposition as is propounded
today and held that to claim the benefit of newly introduced sub-Section 5,
the applicant has to discharge his burden by producing the chit issued by
the copying agency mentioning the date on which certified copy will be
made ready. The relevant portion of the observations reads as follows:-
"This Court in a case reported as Fate/i Muhammad and
others vs. Malik Qadir Bakhsh (1975 SCMR 157) has held
that the time "requisite" for obtaining copy of order within
the meaning of section 12 of the Limitation Act, 1908,
means only the interval between the date of application for
supply of copy and the date when it is ready for delivery
and that the time between the date on which the copy was
ready for delivery, and the date on which the applicant
chooses to take delivery thereof is not a portion of time
"requisite" for obtaining a copy. Even section 12(5) of the
Limitation Act is of no help to the appellant as he failed to
produce the chit/receipt issued by the copying agency
showing the date for preparation of certified copy,
inasmuch as, no such date has been indicated in the
application for condonation of delay. Had the appellant
produced a chit issued by the copying agency and the copy
was not ready on the date indicated in the chit, then the
appellant could have taken shelter under section 12(5) of
the Limitation Act.
18. A study of post amendment case law shows that the effect,
purpose and limits of the newly added sub-Section 5 through a deeming
provision was never examined, consequently, this brings us to the core
issue of examining the newly added sub-Section. A bare reading of sub-
Section 5 reflects that this legislative intervention has been made through
a deeming provision, a legal fiction, to treat the intervening time between
the day of making an application for the certified copy and the day actually
intimated to the applicant by which the copy will be made ready for
delivery to be the time requisite for obtaining the required copies, however,
CA 14.K 0r2w9
12
this provision cannot be read in isolation by employing literal meaning to
it. The principles to interpret deeming provisions in a statute have been
settled by this Court in its various pronouncements while interpreting
deeming provisions in a statute by holding that the Court is bound to
ascertain the limits, purpose and object for which the legislature has
created the fiction by adopting deeming provision. In the case of Mehreen
Zaibun Nisa vs. Land Commissioner, Multan and others (PLD 1975 SC 397),
the effect of deeming clauses was summarized as under:-
(i)
"V/hen a statute contemplates that a state of affairs
should be deemed to have existed, it clearly proceeds
on the assumption that in fact it did not exist at the
relevant time but by a legal fiction we are to assume
as if it did exist.
(ii)
Where a statute says that you must imagine the state
of affairs) it does not say that having done so you
must cause or permit your imagination to boggle when
it comes to the inevitable corollaries of that state of
affairs.
(iii)
At the same time, it cannot be denied that the Court
has to determine the limits within which and the
purposes for which the Legislature has created the
fiction,
(iv)
When a statute enacts that something shall be deemed
to have been done which in fact and in truth was not
done, the Court is entitled and bound to ascertain for
what purposes and between what persons the
statutory fiction is to be resorted to".
19.
This principle was again reiterated by this Court in the case of
Begum B.H. Sued vs. Mst. Afzal Jehan (PLD 1980 Sc 29) by holding that
the Court has to determine the limits within which and purpose for which
the legislature has created a fiction". Likewise in the case of Muhammad
Mubeen-us-Salam vs. Federation of Pakistan (PD 2006 SC 602), this Court
while taking note from "Understanding Statutes" by S.M. Zafar, observed:-
CA 24-K 4209
13
alt is important to note that two important concepts have
been introduced by the learned author in the construction of
the provision creating a statutory fiction, namely; 'statutory
fiction should be carried to its logical conclusion as held in
Muhammad Y asin vs. Sheikh Ghulam Murtaza and another
(PLD 1988 Sc 163) but the fiction cannot be extended beyond
the language of the section by which it is created or by
importing another fiction', therefore, to find out a solution, it
has been observed that 'principle of harmonization shall be
attracted' and ultimately it was held that 'the impact of
deeming clause could be curtailed if it produces a disgraceful
result".
20. Keeping in mind the principles of interpreting a deeming
provision, we need to determine the limits within which and the purpose for
which the legislature has created this fiction. It appears that the legislature,
by introducing subsection (5) to Section 12 of the Act has eliminated the
controversy regarding the term "time requisite" and for the first time has
defined the term by laying down that the "time requisite" for obtaining a
certified copy of the decree, order or such other prescribed proceedings,
would be deemed to be the time intervening between the day on which an
application for certified copy is made and the day actually intimated to the
applicant to be the day on which the certified copy is ready for delivery. The
interpretation proposed by the learned ASC for the appellants that mere
filing of an application would be suffice to stop the period of limitation
would not only be against the spirit and purpose for which the legislature
has created the fiction, but would also be against the purpose and object
for which the legislative intervention was suggested by this Court. Besides,
this interpretation would not only render the scheme of law behind the
limitation Act as redundant but at the mercy of the litigant. Admittedly, the
application for certified copies referred to is not entertained and/or
processed till the prescribed fee/cost is paid and in case such
interpretation is accepted that mere filing of application would stop the
CA 24-K At 2019
14
period of limitation then by not paying the prescribed fee/cost one could
prolong the period of limitation as has happened in the instant case, which
would be against the intention and purpose of the legislation. This
interpretation not only appears to be against the reasons and object of the
law of limitation but would substantially frustrate it. The law of Limitation
seeks to prescribe the time limit for invoking remedies in order to curtail
period of suspense and uncertainty and ensure peace of mind to the
parties, and such interpretation would be against the very purpose of the
statute as it would prolong the period of uncertainty and suspense.
21. It is also very important to note that the computation of period
of limitation prescribed by Section 12 mainly deals with appeals,
application for leave to appeal, application for review judgment and
application to set-aside an Award and these proceedings have the minimum
time period prescribed in the Limitation Act which ranges between 15 to 90
days excluding the time consumed for obtaining the certified copies. In case
the interpretation proposed by the learned ASC for the appellants is
accepted then one would file an application for certified copy and by not
paying the cost could prolong the restricted period of limitation which
would frustrate the very purpose by which the legislature has curtailed the
period of suspense and uncertainty for the litigants to ensure their peace of
mind. Coming back to the limits and the purpose for which the legislature
has created this fiction by introducing sub-Section 5 to Section 12 of the
Act. Admittedly, this legislative intervention of adding sub-Section 5 to
Section 12 was proposed by this Court in the case of Ahmed Now (supra)
and this Court before proposing the legislative intervention had examined
the case law and to eliminate uncertainty and difficulty faced by the
litigants regarding the period spent between the date when the copy is
readyfor delivery and the date of obtaining the delivery of copy. A minute
examination of pre-amendment case law would reflect that the dispute was
N
CA24.Ko12019
15
mostly with regard to non intimation or wrong intimation of date on which
the copy was ready for delivery. In the cases of Gui Muhammad us. Allah
Ditta (PLD 1960 Lah. 443), West Pakistan Industrial Development
Corporation of Pakistan us. Aziz Qureshi (PLD 1973 SC 222), Saleh
Muhammad and others vs. Malik Qadir Bakhsh (1975 SCMR 157) and
Ahmed Jvawaz vs. Muhammad Auub (PLD 1988 Supreme Court 258) (which
led to proposing legislative intervention). In all these cases, the dispute was
the period between the date on which copy was made ready and the date on
which it was delivered.
22.
In the circumstances subscribing to the proposed view that
filing of application would stop the period of limitation appears to be
against the spirit and purpose of the proposed amendment and is bound to
bring disgraceful results unless all the rules requiring payment of cost/fee
for the certified copies in advance are suitably amended/ repealed and
provisions for supply of free certified copies are introduced. Consequently,
we are of the view that filing of application pre-supposes the payment of
cost for obtaining certified copies. In the instant case, since the appellants
have consumed almost 38 days in payment of cost/fee for the certified
copies and there appears to be no explanation on record to show that this
non-payment could be attributed to the office in estimating the cost/fee for
preparing the certified copies, therefore, cannot be excluded while
computing the period of limitation.
23.
Coming to the second submission that the limitation to
commence from the date intimated through notice on which date the copy
was ready for delivery. A perusal of sub-Section 5 shows that it provides
commencement of period of limitation from the day actually intimated to
the applicant to be the day on which the copy will be ready for delivery. The
proposition propounded by the ASC that the intimation notice shall be
issuedonce the copy is made ready and on receipt of such intimation the
CA 24-K of2019
16
period of limitation would commence, in our opinion, from the very reading
of sub-Section 5 appears to be ill-founded. A careful reading of sub-Section
5 shows that the intimation of the day on which the copy will be ready for
delivery by the very language adopted by sub-Section 5 appears to be an
intimation of a future date, a date expected by the office by which it would
be in a position to make the copy ready for delivery. It does not envisage a
notice after the certified copy is ready for delivery. In our opinion, it is a
date intimated to the applicant after he has effectively made the application
for the certified copies i.e. upon payment of cost/fee to be a date
acknowledging receipt of cost/fee and providing a date on which copy
would be ready for delivery. It also cast a duty upon the applicant that
while making the payment of cost/fee for certified copy to obtain a receipt
containing a date when the certified copies will be ready for delivery to
eliminate once for all the pre-amendrnent dispute of non-intimation of date
on which the certified copies are ready for delivery. Since the burden to
demonstrate that the copies were not ready on the day intimated to the
applicant to be the day on which the copy will be ready for delivery is upon
the applicant, therefore, in case of non delivery of certified copy on the date
intimated to the applicant then in order to eliminate the controversy and to
discharge his burden the applicant should accordingly take a fresh date so
that the dispute of applicant having different date and the copy containing
different date of "copy ready for delivery" comes to an end.
24. Coming to the last contention regarding the non-applicability of
Sindh Civil Court Rules or Sindh Chief Court Rules and/or no requirement
under any statute for payment of cost in Banking Courts, suffice it to
observe that Financial Institution (Recovery of Finances) Ordinance, 2001
does not envisage providing of certified copies free of cost/fee, unlike other
atutes/rules relating to criminal administration of justice or service
related matters and unless the statute/rules itself provides for supply of
CA 24-K (112019
17
t
copies of orders, judgments, decree etc. free of cost/fee, it has to be
obtained by the applicant on payment of cost. Even otherwise, the practice
and procedure adopted by the Banking Courts since its inception in respect
of issuance of certified copy is the same as adopted by the Civil Courts or
the High Court and even the applicant himself has fairly conceded that
such procedure is being adopted since the inception of the Banking Court
and the appellant itself has obtained copy of the judgment/decree upon
payment of cost, therefore, the submission is without any force.
25. In the circumstances, this appeal, for our own reasons as
recorded above, is dismissed leaving the parties to bear their own costs.
Islamabad,
nnounced on t--2 ao-1
A.Reirnmn
st Approved for Reporting.
| {
"id": "C.A.24-K_2019.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
PRESENT:
Mr. Justice Faisal Arab
Mr. Justice Qazi Muhammad Amin Ahmed
Civil Appeal No.240-P of 2014
(Against judgment dated 29.11.2010 passed by
Peshawar High Court Peshawar in C.R. No.1845 of
2010 with C.M. No.1887 of 2010)
Liaqat Ali & others
…Appellant(s)
Versus
Safdar Khan
…Respondent(s)
For the Appellant(s):
Mr. M. Shoaib Khan, ASC
For the Respondent(s):
Mr. Abdul Sattar Khan, ASC
Date of hearing:
02.03.2020.
JUDGMENT
Qazi Muhammad Amin Ahmed, J.- A piece of land
measuring 15-Kanal 3-Marla, situate within the remit of Chak
Turangzai District Charsadda has been a proverbial battle field for
a contest, raging since its sale on 13.6.2005; it was purchased by
the appellant, ostensibly for a consideration of Rs.600,000/-,
a transaction pre-empted by Safdar Khan respondent/plaintiff, on
account of his acclaimed superior rights to the land as enumerated
in Section 6 of the K.P.K. Pre-emption Act, 1987. The suit was
dismissed by the learned trial Court vide judgment and decree
dated 13.09.2008 for pre-emptor’s failure to perform Talabs in
accordance with law; the failure plunged adjudication on collateral
issues into irrelevance; plaintiff’s appeal before a learned
Additional District Judge met with no better fate vide judgment
and decree dated 13.6.2009; undeterred by consecutive failures,
the plaintiff successfully impugned dismissals in the High Court;
a learned Judge-in-Chamber vide judgment dated 5.7.2010
remanded the case to the Appellate Court to re-appraise entire
evidence regarding performance of “Talabs” in consequence
whereof, the learned Additional District Judge allowed plaintiff’s
Civil Appeal No.240-P of 2014
2
appeal vide judgment and decree dated 8-9-2010, impugned by the
vendee defendant in the High Court with no success. It is in this
backdrop that High Court judgment dated 29.11.2010 is being
assailed by leave of the Court granted, inter alia, to consider
whether the respondent had succeeded in establishing Talabs in
accordance with law, his superior right on the basis of his being a
co-sharer as well as the actual sale price; in his last ditch effort,
the appellant, through C.M.A. No.10899 of 2019 seeks permission
to produce additional documents.
2.
Learned counsel for the appellant contends that the
respondent/pre-emptor miserably failed to establish performance
of Talabs, an inherent flaw that escaped notice both by the
Appellate Court as well as the High Court; it is next argued that
the defendant was intimated prior to the sale and he had
acquiesced
the
transaction;
appearance
of
Fazal
Majeed,
Registration Clerk GPO Charsadda, as PW-2, to establish dispatch
of postal notice, has been assailed on the ground that he was not
the postman who had actually delivered the notice. Sale
consideration as Rs.600,000/- was vehemently defended as real by
the learned counsel while concluding his submissions. The
judgment has been defended by the respondent being well within
the remit of law.
3.
Heard. Record perused.
4.
Respondent’s preferential right to pre-empt the sale,
on account of his being Shafi Jar is recognized even by the learned
trial Judge who otherwise had dismissed the suit; cross-objections
raised by the appellant before the learned Additional District Judge
were also repelled on the strength of statement of Fazal Karim
Patwari (PW-1) who produced relevant revenue record, i.e. Aks
Shajjra Kashat (Ex.PW-1/2) to clinch the question of contiguity.
Regarding the actual sale price as Rs.3,61,240/- there has been
judicial consensus throughout. In this backdrop, performance of
Talabs is the moot point. Supported by Syed Muhammad Arshad
(PW-6) and Salar (PW-7), the plaintiff entered the witness box as
PW-5 to solemnly affirm as under:-
ہعمب ںیم دوخ ہرجح عقاو روٹس لکیڈیم ناکود ےنپا ںیم ہک
تقوب نارود یسا ہک ےھت ےھٹیب اچاب دشرا فلز مہ5 جب ے
02.08.2005 روا ۔ایآ رلااس راکتشاک اریم رہپ ہہس
Civil Appeal No.240-P of 2014
3
دمحم ناج بحاص یجاح تسویپ ےک پآ ہک اہک ےھجم
سُا ےن ںیم وت یل دیرخ ےن مہیلع اعدم یضارا یک ہریغو
ہخروم ۔ایک راہظا اک ےنرک رئاد عفش ٰیوعد فلاخ ےک عیب
03.08.2005 یرٹسجر ےس سفآ رارٹسجر ےن ںیم وک
م ٹیٹس وٹوف اک عیب ہخروم رھپ ۔ایک لوصو لقن ہقدص
06.08.2005 ےد عفش سٹون وک مہیلع اعدم ےن ںیم وک
مہیلع اعدم مانب لقن ٹیٹس وٹوف اک روکذم سٹون ۔ید
EX-
EX-PW 5/3 ات PW 5/1
۔ےہ
Syed Muhammad Arshad (PW-6) and Salar (PW-7) corroborated
plaintiff’s position; the witnesses are in a comfortable unison on all
the relevant details as well as the manner, the plaintiff declared his
intention to pre-empt the sale; positions inconsonance with the
pleadings. Argument that the witnesses were discrepant is beside
the mark; “contradictions” blown out of proportion are merely
narrative variations that inevitably occur in a truthful discourse,
particularly after flux of time. A statutory right cannot be allowed
to be defeated on subjective hyper technical assertions, as held by
this Court in cases reported as Abdul Qayum through Legal Heirs
Vs. Mushk-e-Alam and another (2001 SCMR 798), Hameed ullah
Khan and others Vs. Mst. Zeenat Khatoon (2008 SCMR 1444),
Muhammad Tariq and 4 others Vs. Asif Javed and another
(2009 SCMR 240), Abdul Latif alias Muhammad Latif alias Babu
Vs. Dil Mir and others (2010 SCMR 1087), Daud Shah Vs. Waris
Shah and others (2014 SCMR 852). Appellants’ claim that they had
intimated the respondent about their intention to purchase the
land and transacted the sale only after they forewent the option,
fails to inspire us. Afsar Ali (DW-2), Shoaib (DW-3) and Liaqat Ali
(DW-4) are diametrically apart in their quest to establish plaintiff’s
acquiescence; statement of one witness cannot be accepted
without first excluding the remainders and vice versa. We are also
not impressed by the argument that the postman who had actually
delivered the notice ought to have appeared in person instead of
Fazal Majeed, Registration Clerk GPO and Zahid Ahmed, Postman,
who respectively appeared as PW-2 & PW-3. Plaintiff by producing
these
official
witnesses
along
with
relevant
receipts
and
acknowledgement due aptly discharged the onus to establish
dispatch of notice. There is perpetual continuity in State business,
sustained by officials in succession. Conclusions concurrently
Civil Appeal No.240-P of 2014
4
drawn by the courts below do not call for interference. Appeal fails.
Concomitantly, C.M.A. No.10899/2019 is also dismissed.
Judge
Judge
Islamabad, the
2nd March, 2020
Not approved for reporting
Azmat/-
| {
"id": "C.A.240-P_2014.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE IJAZ ULAHSAN
MR. JUSTICE SAYYED MAZAHAR ALl AKBAR NAQVI
CIVIL APPEAL NO.2433 OF 2016
(Against the judgment dated 28.07.2015 of
the Peshawar High Court, D.I. Khan Bench,
D.I. Khan passed in C.R.No.25-D/2014)
Muhammad Iqbal etc.
Appellant(s)
Versus
Nasrullah
Respondent(s)
For the Appellant(s):
Ms. Afshan Ghazanfar, ASC
Syed Mastan All Shah Zaidi, ASC
Syed Rifaqat Hussain Shah, AOR
For the Respondent(s):
Malik Ghulam Mustafa Kandwal, ASC
Date of Hearing: 15.09.2022
JUDGMENT
SAYVED MAZAHAR All AKBAR NAQVI, J. Through this appeal by leave of the
Court, the appellants have called in question the vires of the judgment dated
28.07.2015 passed by the learned Single Judge of the Peshawar High Court,
D.I. Khan Bench whereby the Civil Revision filed by the respondent was
allowed and the judgments of the learned two courts below dismissing the
suit filed by the respondent were set at naught.
2. Briefly stated the facts of the matter are that one Haji Kamal Din
was owner in possession of a house and three shops situated at Paniala Road,
Paharpur, D.I. Khan. The said Haji Kamal Din agreed to sell the said property
to the appellants for a total sale consideration of Rs.57,00,000/- and both
parties entered into an agreement to sell dated 25.01.2010. An amount of
Rs.30,00,000/- was paid in cash whereas the remaining sale consideration of
Rs.27,00,000/- was to be paid on 28.02.2010. It was further agreed that
CIVIL APPEAL NO.2433 OF 2016
-: 2
delivery of possession of the property and proper documentation of sale will
be made after payment of entire sale consideration. However, the remaining
sale consideration was paid on 11.04.2010 instead of 28.02.2010. On
18.05.2010, the respondent/plaintiff filed a suit before the learned Civil
Judge, Paharpur, for possession of the said property through pre-emption.
The appellants joined the proceedings and filed an application under Order VII
Rule 11 CPC seeking dismissal of the suit being pre-mature. After hearing the
parties, the learned Trial Court rejected the application vide order dated
15.10.2010. The appellants challenged the said order before the Additional
District Judge-V 1 D.I. Khan by filing Civil Revision, which was accepted vide
order dated 10.012011 and the matter was remanded back to the learned
Trial Court to decide the application afresh. On remand, the learned Trial
Court again heard the arguments of the parties and ultimately vide order
dated 17.03.2011 accepted the application filed by the appellants and
dismissed the suit for pre-emption filed by the respondent. Being aggrieved
by the dismissal of his suit, the respondent filed an appeal before the
Additional District Judge, Paharpur, D.I. Khan, which was dismissed vide order
dated 21.11.2013. The respondent assailed the concurrent findings of two
courts below before the learned Peshawar High Court by filing Civil Revision
No. 25-D/2014. The learned High Court vide impugned judgment dated
28.07.2015 allowed the Civil Revision, set aside the concurrent findings of the
learned two courts below, dismissed the application filed by the appellants for
dismissal of suit and remanded the matter back to the learned Trial Court to
proceed in accordance with law. Hence, this appeal by leave of the Court.
3. At the very outset, learned counsel for the appellants contended
that on 23.02.2010 when the respondent allegedly performed Talb-e-
Muwathibat neither the sale was complete nor possession of the property
was delivered to the appellants, therefore, performance of 'Talabs' before the
completion of sale was pre-mature and the suit for pre-emption could not
stand over it. Contends that an agreement to sell does not confer title of the
subject matter and there always remain a risk that in case of any default of
any clause of agreement to sell, the same may be revoked. Contends that in
the agreement to sell, it was expressly mentioned that the possession would
CIVIL APPEAL NO.2433 OF 2016
-.
be delivered after payment of balance sale consideration, which was paid on
11.04.2010. Lastly contends that the learned High Court has erred in
comprehending the terms "sale" and "agreement to sell", as such, the
impugned judgment reversing the concurrent findings of the two courts
below is not sustainable in the eye of law.
4.
On the other hand, learned counsel for the respondent has
defended the impugned judgment. He contended that in the agreement to
sell it was clearly mentioned that a complete sale has been made. Further
contended that once possession is transferred, the sale becomes complete
even if the balance sale consideration has not been paid, therefore, the
learned High Court has passed a well reasoned judgment to which no
exception can be taken. In support of his arguments, he relied on Muhammad
Nazeef Khan Vs. Gulbat Khan etc (2012 SCMR 235).
5.
We have heard learned counsel for the parties at some length
and have perused the impugned judgments as also the case law cited by
them.
The moot points, which need our consideration, are as to
whether (i) an agreement to sell confers title; (ii) the agreement dated
25.01.2010 was conclusive at the time when the respondent allegedly
performed Talb-e-Muwathibat i.e. 23.02.2010, (iii) if the sale was not
complete, whether the suit filed by the respondent was
competent/maintainable? A bare perusal of the agreement to sell shows that
it had expressly been stipulated therein that sale deed would be executed and
the possession would be delivered to the appellants after payment of
outstanding balance out of total consideration. It is an admitted position that
the balance sale consideration of Rs.27,00,000/- was paid on 11.04.2010,
which means that agreement to sell between the parties had not been
concluded at the time when the respondent had performed his first talab. It is
settled law that an agreement to sell does not create any title or claim over
the property. It also does not create ownership in the land and, as such, a
person in whose favour such an agreement is made cannot claim a decree of
title on the basis of incomplete sale consideration. Even if such an agreement
CML APPEAL NO.24330? 2016
-: 4
contains an acceptance of receipt of an earnest or partial payment of the total
sale consideration, it does not need to be registered because all it does in lieu
Of is grant the right to get another document i.e. sale deed. Unless the sale
deed is registered and title IS transferred, the possibility always exists that the
agreement to sell might be terminated in the event of breach of any provision
contained therein. In this view of the matter, it can safely be concluded that
011 23022010 when the respondent performed Talb-eMuwathibat the sale
was not Complete therefore, the subsequent performance of Talb-e-lshhad
and filing of suit for pre-emption was pre-mature. In almost similar
circumstances, this Court in the case of Abdul Nasir Vs. Hail Said Al<bar (2010
SCMR 1770) while elaborately discussing the relevant provisions of Khyber
Pakhtunkhwa Pre-emption Act, 1987, held as under:-
"From the above statutory provisions it's clear that the right of pre-
emption becomes enforceable within 120 days from the four
situations noted above in clauses (a),(b),(c) and (d) of section 31,
ibid. In the p resent case we have gone through the a greement to
se l l dated 30-7-20Q1 wherein it has expressly been stipulated that a
sale deed shall be executed after payment of the balance
consideration amounting to Rs6.00,000 The obvious conclusion to
be drawn from the contents of the a greement to sell between the
vendor and the Detitionersvendees is that a sale as yet has not
been concluded This is so notwithstanding the fact that possession
apparently has been delivered to the petitioners in anticipation of
the sale.
2. Clause (c) of section 31 of the N.-W.f. p, Pre-emption Act
reproduced above does speak of the period of limitation starting
from the date a vendee takes physical possession, but this clause is also
posited on the fact that a sale has taken place. Section 2(d) of the
N.-WFp. Pre-em ption Act defines sale. It is evident from this
definition that it is not different from the usual connotation of the
word "sale" which, encompasses the conveyance of title to the
vendee. The a greement referred to above clearly specifies that the
title in the Property will be conveyed at a subsequent date after the
balance consideration has been paid. It follows, therefore, that a
sale has not, as yet, taken place.
(Underlined to lay emphasis)
6.
So far as Muhammad Nazeef supra case cited by the learned
counsel for the respondent is concerned, the same is distinguishable In the
said case, the appellant/preemptor did not make Talb-e-Muwathjbat upon
cquiring knowledge of the sale but proceeded to verify from the Patwari
CIVIL APPEAL NO.2433 OF 2016
-: 5
regarding attestation of the sale mutation and made Talabs when the
mutation was attested. This Court while discussing various provisions of law
held that the law does not allow the pre-emptor to postpone the making of
Talb-e-Muwathibat in order to make further inquiry or probe as to whether or
not the sale was complete in all respects. The "Talab" is to be made regardless
of the credibility of the information. Learned counsel for the respondent had
argued that once possession is transferred, sale becomes complete even if the
balance sale consideration has not been paid. This aspect does not sound
sense as it does not create any right or title as per law. However, even if this
argument is accepted, the same could not be of any help to the respondent
because admittedly the possession was delivered to the appellants after they
had paid the balance sale consideration on 11.04.2010, much after the
performance of Talb-e-Muwathibat on 2302.2010. It was also contended by
learned counsel for the respondent that pursuant to Section 5 of the Transfer
of Property Act, 1882, an agreement to sell also falls within the ambit of
"permanent sale" as defined in Section 2(d) of the Khyber Pakhtunkhwa Pre-
emption Act, 1987. Before discussing this aspect of the matter, it would be in
fitness of things to reproduce the relevant provisions of law, which read as
under:-
KIRK Pre-em ption Act. 1987
"2(0) "sale" means permanent transfer of the ownership of an
immovable property in exchange for a valuable consideration
and includes transfer of an immovable property by way of hiba-
bil-iwaz or hiba-bi-shart al-iwaz.."
Transfer of Property Act. 1882
"S. Transfer of property defined. In the following sections
'Transfer of Property means and act by which a living person
conveys property, in present or in future, to one or more other
living persons, or to himself, [or to himselfi and one or more
other living persons: and to transfer property' is to perform such
act."
7. A bare perusal of Section 2(d) of the KPK Pre-emption Act clearly
suggests that the word "sale" has been defined in the same terms as it usually
encompasses. In common parlance a transaction between the buyer and the
seller in which the seller sells intangible or tangible goods, assets, or services
against money is known as a sale. In the present case, the agreement to sell
CIVIL APPEAL N0.2433 OF 2016
-: 6
mentions in unequivocal terms that the title to the property will be
transferred at a later time once the remaining amount has been paid:
Therefore, as discussed above, the sale had yet not taken place at the time
when the respondent performed TaIbeMuWathibat. Section 5 of the KPK
Pre-emption Act, clearly states that "the right of pre-emption shall arise in
case of sale" meaning thereby that when there is no sale i.e. conveyance of
title from vendor to vendee, there would be no right of pre-emption. The
ratio laid down in Abdul Nasir supra case is also to this effect. So far as Section
S of Transfer of Property Act, 1882, is concerned, the same has wide
connotation. It is nowhere mentioned in this Section that an agreement to sell
would be considered as complete sale. it generally states that transfer of
Property means an act by which a living person conveys property, in present
or in future, to one or more other living persons, or to himself and one or
more other living persons. Conveyance of property means conveyance of title
to the vendee. Even otherwise, the Khyber Pakhtunkhwa Pre-emption Act is a
special law and it is settled that where-ever there is a special and general
principle of law applicable to a certain matter, the special law will prevail.
Reliance is placed on Safi-ud-Din Kazi Vs. Pranab Chandra Ro y ChoudharM (PLD
1950 Dacca 37).
8. For what has been discussed above, this appeal is allowed, the
impugned judgment of the learned Peshawar High Court dated 28.07.2015
rendered in Civil Revision No.25-D/2014 is set aside and the judgments of the
lowerfora are affirmed. The above are the detailed reasons of our short order
of even date.
Islamabad, the
15" of September, 2022
Approved For Reporting
lliuItrlth
| {
"id": "C.A.2433_2016.pdf",
"url": ""
} |
Civil Appeal No. 248-P of 2010.doc
1
SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
Present
Mr. Justice Nasir-ul-Mulk
Mr. Justice Amir Hani Muslim
Civil Appeal No. 248-P of 2010.
(Against the judgment dated 17.5.2010
passed by Peshawar High Court in C. R.
No. 444 of 2010).
Muhammad Wahid and another …………………………….Appellants
Versus
Nasrullah and another …………………….………………Respondents
For Appellants
:
Mr. Abdul Sattar Khan ASC.
For Respondents
:
Mr. Mian Saadullah Jandal, ASC.
Date of hearing
:
06.02.2014
JUDGMENT
Amir Hani Muslim, J.-Through the instant Civil Appeal, the
Appellants have challenged the judgment passed by learned Peshawar High
Court in C.R.No. 444 of 2010, whereby, the learned High Court while
accepting the Revision Application, set aside the judgments of the Courts
below, dismissed the suit and terminated the execution proceedings.
2.
The facts relevant for disposal of the present Appeal are that
Appellants No.1 and 2 filed a suit for specific performance of an agreement
Civil Appeal No. 248-P of 2010.doc
2
to sell dated 2.12.2007 against the Respondents in the Court of Civil Judge,
Samar Bagh. It was pleaded in the plaint that the suit property was devolved
upon the Respondents, who agreed to alienate the same, by way of sale in
their favour for a sum of Rs.14,00,000/- and an agreement to sell dated
2.12.2007 was executed in presence of the witnesses; whereby the
Respondents No.1 and 2 agreed to transfer their respective shares in favour
of the Appellants for a sum of Rs.7,00,000/- each. The Respondent No.2
received his share of sale consideration whereas a sum of Rs.3,00,000/- was
paid to the Respondent No.1 as earnest money and the remaining sale
consideration of Rs.4,00,000/- was agreed to be paid to the Respondent No.1
upon completion of sale and delivery of possession. It was further pleaded in
the plaint that the Appellants pursued the Respondent No.1 to receive the
remaining sale consideration and delivery of possession, who on one pretext
or the other, avoided to abide by the terms of the agreement. It is pertinent to
mention here that the suit was not pressed against Respondent No.2 and he
was only impleaded as performa Respondent.
3.
The trial Court proceeded with the case. The Respondent No.1
though was personally served did not appear and contested before the Court,
therefore, on 15.7.2008, the trial Court decided to proceed with the case ex-
parte. On 23.7.2008, the Respondent No.2 filed his cognovits, admitting the
averments of the plaint. On 30.7.2008, the trial Court recorded ex-parte
evidence of the Appellants and fixed the case on 31.7.2008 for
announcement of order. On 31.7.2008, the trial Court passed ex-parte decree
Civil Appeal No. 248-P of 2010.doc
3
against the Respondents, with direction to the Appellants to deposit
remaining amount of sale consideration of Rs.4,00,000/- within forty days,
failing which the suit would be deemed to be dismissed.
4.
Admittedly, the Appellants failed to deposit the remaining
amount of sale consideration with the trial Court within the stipulated time
and on 14.10.2008, they made an application before the trial Court for
extension in time to deposit the said amount, inter alia, on the ground that
they were abroad and hence could not deposit the amount within time.
Alongwith this Application, an Application for condonation of delay was
also moved. Notice of these Applications was directed to be issued to the
Respondents. On 31.10.2008, the trial Court allowed the Applications ex-
parte and extended the time to deposit the said amount for ten months,
holding that it had ample power under section 148 C.P.C to extend the time
and that the decree was a preliminary decree.
5.
On 4.11.2008, the Appellants filed an Application for passing
the final decree, which was allowed and the trial Court passed final decree on
20.12.2008 in favour of the Appellants. On 20.4.2009, during the execution
proceedings, the Respondent No.1 filed an Application before the trial Court
for setting aside the ex-parte as well as final decree, inter alia, on the ground
that he was in Kashmir in connection with earning his livelihood and that the
Appellants had promised to withdraw the suit upon the intervention of the
elders, therefore, he was unaware of the decree. An Application for
Civil Appeal No. 248-P of 2010.doc
4
condonation of delay in filing the Application for setting aside the ex-parte
decree was also moved. The Appellants resisted the Application. However,
the trial Court, by order dated 5.12.2009 dismissed the Application for
setting aside the ex-parte decree dated 31.7.2008 and final decree dated
20.12.2008.
6.
The Respondent No.1 filed Appeal before the First Appellate
Court, which was dismissed vide judgment dated 19.2.2010 against which
the Respondent No.1 filed Civil Revision No.444 of 2010, which was
allowed, the judgments and decrees of the Courts below were set aside and
the suit of the Appellants was dismissed. The execution proceedings were
also directed to be terminated. Hence this direct Appeal by the Appellants.
7.
The learned Counsel for the Appellants has contended that the
learned High Court has erred in law in allowing the Application of the
Respondent No.1 for setting aside the ex-parte decree and dismissing the suit
of the Appellants. He contended that the trial Court has rightly allowed the
Application of the Appellants for extension in time to deposit the balance
sale consideration in the Court, as under Section 148 CPC it has the power to
extend the same. He submits that the impugned judgment of the learned High
Court is liable to be set aside.
8.
He next contended that the Application of the Application for
extension in time was within time, as the final decree was passed on
Civil Appeal No. 248-P of 2010.doc
5
20.12.2008 where the said Application was made on 14.10.2008 before the
passage of the final decree.
9.
On the other hand, the learned Counsel for the Respondent No.1
has contended that once the time fixed by the trial Court for deposit of the
balance sale consideration was over, it had no jurisdiction to extend the
same, as after passing the ex-parte decree the Court had no control over the
lis.
10.
We have heard the learned Counsel for the parties at length and
have perused the record. It is an admitted fact that the trial Court passed the
preliminary ex-parte decree on 31.7.2008 with direction to the Appellants to
deposit the remaining sale consideration within 40 days, but the Appellants
failed to comply with the direction of deposit of amount within the stipulated
time. On 14.10.2008, after lapse of 40 days, they made an Application before
the trial Court for extension in time, which was also proceeded with ex-parte
and allowed. The trial Court fell in error in allowing the Application of the
Appellant after the stipulated period of 40 days and that too after the passing
of the preliminary ex-parte decree. The Application of the Appellants for
extension in time was not competent, as after the lapse of period of 40 days it
had no control over the lis and jurisdiction to entertain such Application.
11.
As far as the contention of the learned Counsel for the
Appellants that the trial Court passed the final decree after allowing the
Application of the Appellants, suffice it to observe that the basic decree was
Civil Appeal No. 248-P of 2010.doc
6
a nullity, therefore, the edifice built no it would fall to ground and no sanctity
could be attached to it. In our view, the impugned judgment of the learned
High Court, doing complete justice between the parties, is plainly correct to
which no exception can be taken.
12.
For the aforesaid reasons, we do not find any merit in this
Appeal, which is dismissed with no order as to costs.
JUDGE
JUDGE
Announced in Open Court on _____________ at Islamabad.
Judge
Not approved for reporting
Sohail/**
| {
"id": "C.A.248-P_2010.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE GULZAR AHMED, HCJ
MR. JUSTICE IJAZ-UL-AHSAN
MR. JUSTICE MUNIB AKHTAR
Civil Appeals No.249, 250, 255 & 257 of 2020
And
Civil Appeals No.273, 285, 289 & 301 of 2020
Against judgments dated 04.10.2017, 22.11.2017, 22.11.2017,
25.10.2017, 04.10.2017, 29.11.2018, 22.01.2019 & 14.03.2019 of
Peshawar High Court passed in Writ Petitions No.1298-P/17, 287-M/13,
1800/17, 2234-P/17, 449-P/15, 3289-P/17, 818-B/17 &6347-P/17.
CA.249 of 2020 Government of Khyber Pakhtunkhwa through
Secretary Agriculture, Livestock & Cooperative
Department Peshawar & Others Vs. Saeed-ul-
Hassan & Others
CA.250 of 2020
District Officer On Farm Water Management
Dir Lower & Others Vs. Shahzada
CA.255 of 2020
Government of Khyber Pakhtunkhwa through
Chief Secretary, Civil Secretariat, Peshawar &
Others Vs. Muhammad Imran Humayun Khan
CA.257 of 2020
Government of Khyber Pakhtunkhwa through
Chief Secretary, Peshawar & Others Vs.
Muhammad Yasir Jamshed & Others
CA.273 of 2020 Government of Khyber Pakhtunkhwa through
Chief Secretary, Peshawar & Others Vs.
Muhammad Irfan & Another
CA.285 of 2020 Government of Khyber Pakhtunkhwa through
Secretary Agriculture, Livestock, & Cooperative
Department Peshawar & Another Vs. Iltaf
CA.289 of 2020 Government of Khyber Pakhtunkhwa through
Secretary Agriculture, Livestock, & Cooperative
Department Peshawar & Others Vs. Matiullah
CA.30 1 of 2020 Government of Khyber Pakhtunkhwa through
Chief Secretary, Civil Secretariat, Peshawar &
Others Vs. Muhammad Arif & Another
For the Appellant(s):
Mr. Shumail Ahmad Butt, AG KP
Mr. Atif Ali Khan, Addl.AG, KP
Barrister Qasim Wadood, Addl.AG, KP
Irum Shaheen, DD, HED
-
j1
Asif Khan, Litigation Officer, HED
Amin Jan, AD, Fisheries
Guizar Mahmood, AD Fisheries KP
Engr. Falak Niaz, AD (Dost)
Rajbar Khan, SDO, PHE, KP
Sadullah, Asst. Secretary, BOR, KP
Faheem Ullab Khan, Sr. LO, KPPSC
Assad Ullah Khan, SO, P&D Deptt.
Amanatullah Qureshi, Dy. Secy. FDKP.
For the Respondent(s): Mr. Muhammad Asif Yousafzai, ASC
in CA No. 249 of 2020
Mr. Nasir Mahmood-P, ASC
in CA No. 250 of 2020
Mr. Khalid Rehman, ASC
in CA No. 257 of 2020
Mr. Muhammad Ijaz Khan Sabi, ASC
in CA No. 273 of 2020
Mr. Naveed Akhtar, ASC and
Mr. M. SharifJanjuha, AOR
in CA No. 285 of 2020
R-2 in Person (w/o enter appearance)
in CA No. 303 of 2020
Date of Hearing:
25.11.2020
JUDGMENT
IJAZ UL AHSAN, J.- Through this single
Judgment, we intend to decide Civil Appeals (hereinafter
referred to as "CA") Nos.249, 250, 255, 257, 273, 285, 289
and 301 of 2020 as they involve a common question of law.
2.
Through the instant Appeals, the Appellants have
challenged the judgments of different benches of the
Peshawar High Court mentioned in Schedule I of this
Judgment. The Respondents had, through their
Constitutional Petitions, challenged the decisions of the
Appellants to terminate the services of the Respondents from
their respective posts. Their Petitions were allowed, and the
Appellants were ordered to reinstate and regularize the
Respondents against their respective posts.
3.
The necessary facts giving rise to this its are that
the Respondents were appointed on contract basis in different
£
CM ts/D .'2-'% vt7o2oeZC1.
3
projects against different posts. Their services were extended
from time to time. They were subsequently terminated from
service on completion of the respective projects in which they
were appointed. They filed Constitutional Petitions to
challenge this action of the Appellants which were allowed
and, the Appellants were directed to reinstate and regularize
the Respondents in their respective posts. Certain other
Respondents then filed Constitutional Petitions for similar
treatment which were also allowed, and the Appellants were
ordered to treat the said Respondents at par with others who
had been regularized pursuant to the orders passed by the
High Court.
4.
Leave to appeal was granted by this Court vide
order dated 09.03.2020 in the following terms:-
"The learned Additional Advocate General, Khyber
Pakhtunkhwa contends that all the Respondents in these
petitions were employed either on project posts or on contract
basis or were employees under Section 42 of the Companies
Act, 2017 and in no circumstances their services were to be
regularized. He further contends that in all impugned
judgments, the learned High Court has merely allowed writ
petitions on basis of similarly placed persons, but without at
all adverting to the facts and circumstances of each case
separately and without applying its mind to the same. He
adds that even the laws under which their appointments
were made were not adverted to. He submits that the
Respondents who are employees on projects or contract
employees or Section 42 employees were not liable to be
regularized and thus their regularization by the learned High
Court through the Impugned Judgment in these petitions was
altogether illegal. In support of the contentions, the learned
law officer has referred to a three-member judgment of this
Court dated 24.06.2014 passed in Civil Appeal No.687 of
2014 (Government of Khyber, Agriculture, Livestock and
Cooperative Department through its Secretary and others v
Ahmad Din and another).
2.
We note that some of the petitions are time barred and
in one of the petitions even no condonation of delay has been
filed. The learned Law Officer states that such will be done
by the petitioners.
3.
The contentions raised by the learned Additional
Advocate General, Khyber Pakhtunkhwa need consideration.
Therefore, subject to limitation, leave to appeal is granted in
11
these petitions to consider inter alia the same. The appeal
stage paper books shall be filed within a period of one month
with permission to the parties to file additional documents, if
any. As the matter relates to service, the office is directed to
fix the same expeditiously preferably after three months.
4.
In the meantime, operation of impugned judgment(s)
shall remain suspended."
5. Learned Additional Advocate General, Khyber
Pakhtunkhwa (hereinafter referred to as "AAG") appearing for
the Appellants contends that the Respondents were employed
on contract basis, in different projects. As such, they had no
automatic right to regularization. Therefore, the learned High
Court has erred in allowing them regularization on
sympathetic grounds which action has no legal basis. The
Project Policy dated 02.07.08 (the "Project Policy") issued by
the Government of Khyber Pakhtunkhwa (hereinafter referred
to as "KP") specifically states that all the Respondents
employed in projects would stand terminated from service
upon completion of their respective projects. He adds that,
clause 10(vi) of the Project Policy specifically ousts any project
employee from claiming regularization and, the posts
converted to the regular side were to be filled through the
prescribed procedure as determined by the KP Public Service
Commission (hereinafter referred to as "KPPSC"). He
maintains that the provisions of the KP Regularization Act
2009 (hereinafter referred to as "2009 Act") did not apply to
the Respondents as the said Act specifically excludes the
class of employees to which the Respondents belong.
6. The Learned ASC for the Respondents on the other
hand submits that the Respondents were validly appointed to
their respective posts and as such, could not have been
arbitrarily terminated given the Appellants were satisfied with
their performance. Learned Counsel further submits that the
projects in which the Respondents were employed had been
converted to the regular side and as such, the Respondents
had a right to be regularized against their respective posts. As
such, the learned High Court has correctly held that they
ought to be regularized. Further, that the Appellants could
not have advertised the posts against which the Respondents
were working, and such action amounts to exploitation and
discrimination because others who were similarly placed were
appointed on regular basis whereas, the Respondents were
left out.
7. We have heard the learned AAG and the learned
ASC for the Respondents. It is an admitted position that all
the Respondents were appointed on contract basis, in
different projects of KP. The issues which fall for
determination before this Court are as follows: -
(i)
Could the Appellants terminate the services of the
Respondents after the period of the respective projects in
which the Respondents were appointed had elapsed; and
(ii)
Are the Respondents covered by the 2009 Act; and
(iii)
What is the effect of the terms and conditions of the
appointment orders of the Respondents; and
(iv)
What is the principle to be applied when giving relief in the
cases of similarly placed employees?
COULD THE APPELLANTS TERMINATE THE SERVICES OF
THE RESPONDENTS AFTER THE PERIOD OF THE
RESPECTIVE PROJECTS IN WHICH THE RESPONDENTS
WERE APPOINTED HAD ELAPSED.
8. The learned ASC for the Respondents has
submitted before us that the employment of the Respondents
was governed by the Project Policy issued by the Government
of KP. We have gone through the Project Policy. It
categorically states that those employed in different projects
would stand relieved from employment upon completion of
the Project in question. Clause 10 (v) of the Project Policy is
reproduced herein below for ease of reference: -
"On completion of the project, the services of the
project employees shall stand terminated. However, they
shall be re-appointed on need basis, if the project is extended
over any new phase or phases"
A bare perusal of the afore-noted clause of the
Project Policy makes it clear that employees, who were
employed in a project, would stand terminated, on the
completion of the project. The only exception is that the said
employees would be re-appointed on need basis if the project
is extended over any "new phase or phases". The record
reveals that the Respondents were terminated after the
projects in which they were appointed came to an end or,
were converted to the regular side. The learned High Court in
the impugned judgments has held that the Respondents had
a vested right to be regularized, on the basis of satisfactory
service, because of the conversion of different projects to the
regular side. We are unable to agree with the view taken by
the High Court for the reason that it is by now a settled
principle of law that, long or satisfactory contractual service
does not confer a vested right for regularization as
conversion from contractual to regular appointment requires
statutory support. We note that, even in those Appeals before
us where posts were created on the regular side, such as CA
No. 255 of 2020 and CA 301 of 2020, the posts in question
- 0• O4M.2A lOj)v)4t&
were limited. If the Government has created a limited
number of posts on the regular side, the learned High Court
could not have stepped into the shoes of the appointing
authority and order the regularization of each Respondent
irrespective of availability of regular posts. Appointments on
the regular and newly created posts was to be made through
advertisement, open competition through a transparent
process via the KP Public Service Commission. It was
essentially a policy matter within the domain of the
Executive. The High Court therefore erred in law in
interfering with the same for no valid or justifiable reason.
9.
The creation of a post or posts on the regular side
does not confer, in the absence of any statutory support, an
automatic right of regularization in favour of the employees
employed on contractual basis against project posts.
Therefore, we hold that the conclusion reached by the High
Court in this regard is not sustainable.
10.
Further, clause 10(vi) of the Project Policy reads
as under: -
"In case the project posts are converted into regular
budgetary posts, the posts shall be filled in accordance with
the rules prescribed for the post through the Public Service
Commission or the Department Selection Committee, as the
case may be. Ex-Project employee shall have no right of
adjustment against the regular posts) however, if eligible,
they may also apply and compete for the posts with other
candidates"
The afore-noted clause of the Project Policy makes
three stipulations. First, that the project posts converted to
the regular side shall be filled in accordance with the rules
prescribed by the KPPSC or the Departmental Selection
8
Committee. Second, that a project employee shall have no
right of adjustment against the regular post. Third, if eligible, a
project employee may apply for the post in question for
regular appointment in accordance with the rules i.e. through
KPPSC or DSC, as the case may be. The learned High Court
has held that the Respondents had the right to be regularized
on the posts which were created on the regular side, and not
appointing the Respondents amounts to discrimination. We
are unfortunately unable to agree either with the reasons
given nor with the conclusion reached. We note that all posts
created on the regular side were to be filled in accordance
with the procedure of the KPPSC or DSC. The aforenoted
provision makes is clear that ex-project employees could not
claim regularization as a matter of right. Nothing is on record
to suggest that the Respondents applied for the regular posts
again, however, they approached the learned High Court in
Constitutional Jurisdiction directly for their reinstatement
and subsequent regularization which, the learned High Court
did, without considering the aforenoted Project Policy which
held the field and the vires of which or, any provision thereof,
was not under challenge.
11. We note that, in CA 257 of 2020, the regular posts
in question were created in the KPPSC and not the project in
question. This is evident from the letter dated 02.05.20 17 of
the Government of KP, Finance Department. The said letter
further states that the incumbents of the posts which were to
be shifted to the regular side would not be entitled to
regularization and, the regular posts would be filled in
accordance with the law. We note that the learned High Court
has circumvented and, literally changed the tenor of this
letter altogether by inserting in it, that which was never there,
nor was it intended to be there. Even otherwise, if posts are
sanctioned by the provincial government, it does not mean
that anyone may be appointed against the same arbitrarily or
whimsically without regard to any policy, procedure or legal
basis.
ARE THE RESPONDENTS COVERED BY THE 2009 ACT?
12.
Section 2(b) of the 2009 Act defines 'employee' as
follows:-
"employee means an ad hoc or a contract employee
appointed by Government on ad hoc or contract basis or
second shift/night shift but does not include the employees
for project post or appointed on work charge basis or who are
paid out of contingencies"
The aforenoted provision of the 2009 Act has three
conditions. First, that the employee in question has to be
appointed by the government. Second, that the employee has
to be appointed on ad hoc or contract basis or second
shift/night shift. Thirdly, an employee to be able to benefit
from the 2009 Act must not have been employed against a
project post or, appointed on work-charge basis or, be paid
out of contingencies. The impugned judgments ignore the
definition of 'employee' and the exclusions incorporated
therein which has led to an erroneous conclusion being
drawn.
F-
10
13. Section 3 of the 2009 Act lays down further
guidelines as to who may be regularized. The said Section is
reproduced as:-
"Regularization of services of certain em p logees. -- All
employees including recomendees of the High Court
appointed on contract or ad hoc basis holding that post on
31st December 2008 or till the commencement of this Act
shall be deemed to have been validly appointed on regular
basis having the same qualification and experience for a
regular post".
A bare perusal of the aforementioned provision
makes it clear that those employees who have been
appointed by the Government on or before 03.12.08 or till
the commencement of the 2009 Act i.e., 24.10.09 (hereinafter
referred to as "Cut-off Dates") would be entitled to
regularization. We have gone through the record and note
that all of the projects in which the Respondents were
employed were converted to the regular side after the Cut-off
Dates. The learned High Court has incorrectly applied and
stretched the application of the 2009 Act to cover the
Respondents without any lawful basis. It needs no repetition
that the job and jurisdiction of the High Court is to interpret
the law, test its vires on the touchstone of the Constitution
and examine the legality of executive / administrative actions
in exercise of its powers of judicial review. Reading provisions
or interpreting existing provisions in a manner which has the
effect of virtually adding new provisions constitutes excessive
and arbitrary exercise of jurisdiction and encroaches upon
the domain of the executive and legislative authority. Such
modus operandi militates against the fundamental principle
ICA
of trichotomy of powers which is a cornerstone of the
Constitution.
14.
It is clear and obvious to us that project
employees have specifically been excluded from the purview
of the 2009 Act. We note that in CA No. 257 of 2020, the
learned High Court has itself noted that the Respondents in
the said CA are not covered by the 2009 Act. Yet they were
directed to be regularized on sympathetic grounds without
any lawful basis, foundation or justification.
15.
In CA No. 285 of 2020, the project in question,
namely, "Expansion of Breed Improvement Service in NWFP'
was converted to the regular side after the services of the
Respondent (Mr. Iltaf) were terminated w.e.fi 30.06.09. The
said Respondent was issued a notice of termination which
was in line with the Project Policy, before his services were
terminated. The High Court has in our opinion incorrectly
applied the principle of non-discrimination and similar
treatment for similarly placed employees and has directed
that the Respondent in question be regularized. We note that
the learned High Court, without applying judicial mind to
ascertain the facts and circumstances of each case, has
passed an omissus order directing the regularization of all
the Respondents without adverting to the record on a case to
case basis, or applying the law to each case. Where the 2009
Act itself excludes project employees and also mentions Cut-
off dates, we are at a complete loss to understand how and
on what basis the High Court concluded that that the
Respondent was eligible for regularization. Even otherwise,
the services of the Respondent were validly and lawfully
terminated before the said project was converted to the
regular side i.e. vide notification dated 27.01.10. As such,
there was no question of regularization.
16.
The learned High Court has, in one of the
Impugned Judgments, on the question of deleted posts, held
that the Appellants were duty bound to convert all posts to
the regular side without deleting any one of them. As noted
above, executive policy making is not the domain of the High
Court in the scheme of the Constitution and, is the
prerogative of the executive to ascertain on the basis of its
need, requirement, available resources and fiscal space,
which posts it wishes to keep and which it wishes to abolish.
Separation of powers is a well-entrenched principle of
jurisprudence which requires that the Court cannot step into
the shoes of the Executive. As such, when the posts of the
Respondents in CA No. 273 of 2020 have been deleted by the
Finance Department, the learned High Court could not have
ordered the Appellants to reinstate the Respondents on non-
existent posts.
WHAT IS THE EFFECT OF THE TERMS AND CONDITIONS
OF THE APPOINTMENT ORDERS OF THE
17.
The learned AAG has submitted before us that all
of the Respondents were appointed on temporary posts as
stipulated in their employment contracts. We note that the
learned High Court has not adverted to this aspect of the
case and has simply applied the principle of similarly placed
employees to give relief to the Respondents. It has been
specifically mentioned in the appointment orders of the
Respondents that they cannot claim regularization and
further, that they are employed on contract for a specific
period of time. In this view of the matter, the learned High
Court has incorrectly applied the law to the cases of the
Respondents and as such, we find the view of the learned
High Court to be erroneous, and not in consonance with the
settled principles of law on the subject.
18. The Respondents have themselves conceded that
they were employed in different projects on temporary basis.
This fact has been admitted before us. The employment of
the Respondents was governed by the Project Policy which
specifically provides that ex-project employees cannot claim
regularization and that the posts in questions would be filled
per the rules of the KPPSC or the DSC. We are therefore of
the view that the learned High Court has erred in law in
ignoring the Project Policy and ordering regularization of the
Respondents without relying on any statutory instrument
which may have created a right in their favour. Discretionary
Jurisdiction under Article 199 of the Constitution cannot be
exercised in a vacuum. It must be grounded on a valid basis
of violation of specific and enforceable legal or constitutional
rights. The discretion must be exercised in a structured and
calibrated manner with due regard to parameters put in
place by the Constitution as well as by this Court. The
o
•,
•t
2,4q OkWO-otZ
impugned judgments are unfortunately lacking all the
aforenoted factors and are found to be unsustainable.
WHAT IS THE PRINCIPLE TO BE APPLIED WHEN GIVING
RELIEF IN THE CASES OF SIMILARLY PLACED
EMPLOYEES?
19.
The learned High Court in all the Appeals before
us has applied the principle of similar treatment of similarly
placed persons and has found the Respondents eligible for
Regularization. It is settled principle of law that each case
turns on its own facts and circumstances. When the record
is clearly suggestive of the fact that the Respondents could
not be regularized, and there were valid and sustainable
reasons to do so, the principle of similar treatment of
similarly placed employees could not blindly and
indiscriminately circumvent the record to regularize those
employees who are otherwise not entitled to regularization.
Further, some judgments were mechanically rendered
without examining the specific facts and circumstances of
individual cases by relying on earlier judgments directing
regularization and those too in incorrect and erroneous
basis. This, by itself, furnishes justification to set aside such
judgments. Even otherwise, the rule of similar treatment for
similarly placed persons has wrongly and incorrectly been
applied in the instant cases.
20.
The Court is supposed to interpret the law and
apply it in letter and spirit. The Court cannot go beyond what
the law is, and what interpretation permits. Courts lack
jurisdiction to provide remedies which are otherwise not in
.'
.'
IS'
the law or the Constitution by inventing remedies of their
own. This is a dangerous trend which threatens to weaken
the very fabric of constitutionalism and rule of law and, this
must be discouraged. The learned High Court cannot alter,
amend or renegotiate the terms and conditions of the
appointment orders of the Respondents for the simple reason
that it does not have jurisdiction to do so.
21. For the reasons recorded above, these appeals are
accordingly allowed, and the impugned judgments
unsustainable
are therefore set-aside.
Chie
ANNOUNCED IN COURT ON 2i .04 .21 AT
ISLAMABAD.
SCHEDULE I
DATE
04. 10.20 17
22.11.2017
22.11. 20 17
25. 10.20] 7
04.10.2017
11 2018
22.01.2019
14.03.2019
ED FOR REP
COURT
Peshawar
High
Court,
Peshawar
Peshawar High Court Bench
at Mingora (Dar-ul-Qaxa) Swat
Peshawar
High
Court,
Peshawar
Peshawar
High
Court,
Peshawar
Peshawar
High
Court,
Peshawar
Peshawar
High
Court,
Peshawar
Peshawar High Court, Bannu
Bench
Peshawar
High
Court,
Peshwu
No. 250 of 2020
CA No. 255
CA No. 273 of 2020
CA No. 285
CA No. 289 of 2020
CA No. 301 of 2020
S
| {
"id": "C.A.249_2020.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Original Jurisdiction)
PRESENT:
Mr. Justice Mushir Alam
Mr. Justice Faisal Arab
Mr. Justice Ijaz ul Ahsan
Civil Appeal No.25-K of 2018
(On Appeal against the impugned
judgment dated 07.05.2018 passed
by the High Court of Sindh, Karachi
in F.R.A.No. 22/2017)
Abdul Latif and another
…Appellant(s)
Versus
M/s Parmacie Plus
Respondent(s)
For the appellant(s):
Mr. Shahid Qadeer ASC with
Abdul Latif, appellant in person
For the respondent(s):
Mr. Muhammad Pervaiz Khan Tanoli, ASC
Date of hearing:
25.02.2019
JUDGMENT
Faisal Arab, J.- The respondent was inducted as a tenant in
the premises in question at a monthly rent of Rs.331,700/-. The tenancy
agreement dated 30.11.2014 was for a period of eleven months starting
from 25th September, 2014 to 24th August, 2015. Clause 15 of the
tenancy agreement stipulated that rent shall be increased by seven
percent after every eleven months. When the period of eleven months
expired and the rent became due, the respondent remitted rent at the
rate of Rs.287,262/- per month i.e. less than the rate of rent that was
initially agreed upon at the time of execution of the agreement i.e.
Rs.331,700/- per month. As the rent i.e. of Rs.354,919/- per month with
seven percent increase as envisaged by clause 15 of the tenancy
agreement was not remitted by the respondent, the appellant demanded
the same. As the demand for increased rent was resisted by the
Civil Appeal No.25-K of 2018
-: 2 :-
respondent, who kept on remitting rent at original rate, the appellant
filed eviction application before the Controller of Rents, Clifton
Cantonment, Karachi seeking eviction of the tenant on the ground of
default and also sought eviction on the ground of personal need.
2.
During the pendency of the rent case, the Controller of Rents
passed an order under Section 17(8) of the Cantonments Rent Restriction
Act, 1963 (the Act) directing the respondent to deposit the rent at the rate
of Rs.354,919/- i.e. with seven percent increase in terms of clause 15 of
the tenancy agreement. As the respondent failed to deposit the same, the
appellant filed an application under Section 17(9) of the Act for striking
off the defence of the respondent. Vide order dated 15.05.2017 the
Controller of Rents struck off the defence and directed the respondent to
vacate the rented premises and handover its possession to the appellant
within a period of 60 days. Aggrieved by such decision, the respondent
filed an appeal before the learned High Court which was allowed by the
learned Single Judge after holding that the provisions of Section 7(5) of
the Act prohibits increase in rent beyond what is determined under the
tenancy agreement unless a period of three years has elapsed, therefore,
no default in the payment of rent has been committed. Hence, this
appeal with the leave of this Court.
3.
The tenancy agreement was for eleven months and clause 15
of the tenancy agreement provided that the rent of the premises shall be
increased by seven percent after every eleven months. Under the urban
rent laws tenancy continues even after the expiry of the term provided
under the tenancy agreement. Hence where the tenant continues to
occupy the tenement after the expiry of the term mentioned in the
agreement the covenants of the agreement continue to apply except such
covenants that are in conflict with the provisions of the applicable rent
Civil Appeal No.25-K of 2018
-: 3 :-
law. In that eventuality rent law would prevail. In the present case seven
percent increase in rent as provided in clause 15 of the tenancy
agreement has been called in question on the basis of Section 7(5) of the
Act which reads as follow:-
“When the fair rent of a building has been fixed under this
section, or where the rent of any building has been
determined by an agreement between the landlord and the
tenant, no further increase in such fair rent shall, during the
continuance of tenancy be permissible within a period of three
years from the date fixed by the Controller under sub-section
(3) or from the date of the agreement, as the case may be,
except in case where some addition, improvement or alteration
has been carried out at the landlord’s expense and at the
request of the tenant.”
4.
Parties are free to agree to a fixed rate of rent or a rate that is
variable to be increased either by a certain amount or by a certain
percentage of the existing rent after a specified period of time. There is no
prohibition in law. So the periodical increases agreed between the parties
under the tenancy agreement has to be regarded as the rent determined
by an agreement between the landlord and the tenant within the
meaning of Section 7(5) of the Act. What is meant by the prohibition
contained in Section 7(5) of the Act is that no unilateral increase to the
surprise of the tenant is permissible before the expiry of three years. An
increase, which is not unilateral but with the consent of both the parties
cannot be subsequently disputed by the tenant unless it is called in
question through an application made for fixation of fair rent. So it
becomes quite clear that what is prohibited under Section 7(5) of the Act
is that no unilateral increase is to be made beyond what is determined
under the tenancy agreement, be it fixed or variable rate. On the
contrary, Section 7(5) of the Act acknowledges the sanctity of the rent
determined by an agreement between the parties. So only unilateral
increase in rent or where fair rent has been fixed by a Court of Controller
Civil Appeal No.25-K of 2018
-: 4 :-
of Rents that rent cannot be increased unless a period of three years has
elapsed.
5.
In the present case, seven percent increase after every eleven
months term of tenancy has been agreed upon between the parties under
clause 15 of the tenancy agreement, this is to be treated as the rent
determined by an agreement between the landlord and tenant. Such rate
of rent gets unaffected by the bar contained in Section 7(5) of the Act,
which only prohibits unilateral increase within a period of three years. As
stated earlier, the only way to challenge a rate of rent agreed upon with
the consent of the parties is by moving the Rent Controller to fix fair rent
under the provisions of rent law not otherwise. In the present case no
application for fixation of fair rent has been moved by the respondent,
therefore, the consequence of non-payment of agreed rent within the
period prescribed by law would amount to commission of default in the
payment of rent and would make it liable for eviction. In the present case
as the respondent failed to pay the rent in terms of clause 15 of the
tenancy agreement, this appeal is allowed and the impugned judgment is
set aside.
Judge
Judge
Judge
Karachi, the
25th of February, 2019
Approved For Reporting
| {
"id": "C.A.25-K_2018.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT: MR. JUSTICE MIAN SAQIB NISAR, CJ
MR. JUSTICE UMAR ATA BANDIAL
MR. JUSTICE FAISAL ARAB
CIVIL APPEALS NO. 2561 TO 2568 OF 2016 AND CIVIL
PETITION NOS. 2779-L TO 2785-L, 2793-L, 3182-L, 3183-L,
3224-L, 3225-L, 3328-L, 3253-L, 3299-L, 3300-L, 3345-L,
3553-L TO 3557-L OF 2016 AND CRIMINAL PETITION NO.
1050-L OF 2016
(On appeal against the judgment dated 26.05.2016, 27.09.2011, 17.11.2016 and 23.06.2016 of the
Lahore High Court, Lahore passed in W.P. No.31284, 35792, 36199, 36555 & 36556 of 2015,
6720/2016, 3932/2011, 36331/2015, 22010/2013, 22011/13, 22013/13, 22015/13, 13821/16,
13845/16, 13855/16, 22012/2013, 9712/2009, 14030/2011, 1379/2011, 4428/2011, 23901/2009,
1456-Q/2012, 15460/2011, 15461/2011, 19532/2014, 14898/2011, 19731/2012, 19732/2012,
19733/2012, 19734/2012 and Crl.Rev.487/2016 respectively)
Syed Mushahid Shah etc.
(in CA 2561/16)
Mian Naseer Ahmed, etc.
(in CA 2562/16)
Tahir Naseem, etc.
(in CA 2563/16)
Umar Hayat, etc.
(in CA 2564/16)
Muhammad Shafique
(in CA 2565/16)
Naseer Ahmed
(in CA 2566/16)
Pervaiz Sadiq, etc.
(in CA 2567/16)
Jahangir Ahmed & others
(in CA 2568/16)
…Appellant(s)
Gulshan Spinning Mills Ltd, etc.
(in CP 2779-L/16)
Gulistan Textile Mills Ltd, etc. (CPs 2780-L to 2782-L/16)
Haji Iftikhar-ud-Din, etc.
(in CP 2783-L/16)
Noureen Imran, etc.
(in CP 2784-L/16)
Muhammad Ahsan, etc.
(in CP 2785-L/16)
Hassan Aftab
(in CP 3182-L/16)
Hamid Waheed Khawaja
(in CP 3183-L/16)
Dr. Hassan Sohaib Murad
(CPs 3224-L to 3225-L,3299-L/16)
Sheikh Niaz Anjum, etc.
(in CP 3328-L/16)
Shamsher Ali
(in CP 3253-L/16)
Gulraiz Akbar
(in CP 3300-L/16)
Irfan Ahmed Ayub
(in CP 3345-L/16)
Amir Saleem Anwar Khan, etc.
(in CP 3553-L/16)
Naeem Omer (CPs 3554-3556-L/16)
Farrukh Mehmood Butt, etc. (in Cr.P.1050-L/16)
…Petitioner(s)
VERSUS
Federal Investment Agency, etc. (CAs 2561-2563/16)
Government of Pakistan, etc. (in CAs 2564,2565/16)
S.H.O. PS Bhikki District Sheikhupura, etc. (in CA 2566/16)
The Bank of Punjab, etc. (CA 2567/16, CPs 2783-L to 2785-L)
Government of Pakistan thr. Secretary M/o
Law Justice Human Rights and Parliamentary
Affairs Islamabad & others (in CA 2568/16)
Burj Bank Ltd, etc. (CPs 2779 to 2782-L, 2793-L/16)
The State through Advocate General Punjab etc. (in CP 3182-L/16)
Civil Appeals No.2561 of 2016 etc. - 2 -
S.H.O. PS Sarwar Road, Lahore, etc. (in CP 3183-L/16)
S.H.O. PS Qila Gujjar Singh, (CPs 3224-L, 3299-L &
Lahore, etc. 3300-L/16)
S.H.O. PS Civil Lines, Lahore, etc. (in CP 3225-L/16)
S.H.O. Police Station, B-Division, Okara, etc. (in CP 3328-L/16)
S.H.O. PS Purani Anarkali, Lahore, etc. (in CP 3253-L/16)
S.H.O. Civil Line, Gujrat, etc. (in CP 3345-L/16)
The State, etc. (in CP 3553-L/16)
Additional Sessions Judge, Lahore, etc. (CPs 3554-3557-L/16)
Askari Bank Ltd, etc. (in Cr.P. 1050-L/16)
…Respondent(s)
For the Appellant(s):
(in CA 2561/16)
(in CAs 2562-2568/16)
Mr. Shahid Ikram Siddiqi, ASC.
(also for petitioners in CPs 3182, 3183, 3224, 3225,
3228, 3299, 3300-L/16)
(did not appear on 01.03.2017)
Mr. Salman Aslam Butt, Sr. ASC.
(also for petitioners in CPs 2779-2785, 2793-L/16)
For the Petitioners(s):
(in CP 3253-L/16)
(in CP 3345-L/16)
(CPs 3553-3557-L/16)
(in Crl.P 1050-L/16)
Nemo.
Mr. Haq Nawaz Chatha, ASC.
Mr. Shazaib Masud, ASC.
(did not appear on 01.3.2017)
Mian Asghar Ali, ASC.
For the Respondent(s):
For Bank of Punjab
For First Women Bank
& UBL
For Burj Bank
For MCB
For FIA
For the State:
Mr. Rashdeen Nawaz Qasuri, ASC.
Sardar Qasim Farooq Ali, ASC.
Mr. Amir Wakeel Butt, ASC.
Mr. Abdul Hameed Chohan, ASC.
Raja Nadeem Haider, ASC.
Nemo.
Mr. Sajid Ilyas Bhatti, DAG.
Raja Abdul Ghafoor, AOR.
Mr. Razzak A. Mirza, Addl. AG, Pb.
Rana Abdul Majeed, Addl. PG.
Dates of Hearing:
21, 22, 28.02.2017 and 01.03.2017
...
JUDGMENT
MIAN SAQIB NISAR, CJ.— These appeals with the leave of
the Court and petitions for leave to appeal (civil and criminal) are being
disposed of together as they involve a common question of law: whether
Civil Appeals No.2561 of 2016 etc. - 3 -
the Banking Courts constituted under the Financial Institutions
(Recovery of Finances) Ordinance, 2001 (the Ordinance, 2001) have exclusive
jurisdiction to try the offences mentioned therein to the exclusion of the
Special Courts constituted under the Offences in Respect of Banks
(Special Courts) Ordinance, 1984 (the ORBO), the courts of ordinary
criminal jurisdiction under the Code of Criminal Procedure, 1898 (the
Code) read with the Pakistan Penal Code, 1860 (the PPC) and from inquiry
and investigation by the Federal Investigation Agency (the Agency) under
the Federal Investigation Agency Act, 1974 (the Act, 1974).
2.
The
appellants/petitioners
are
customers
of
the
respondents (financial institutions) who may be divided into two categories.
In the first category, the customers are alleged to have committed
offence(s) of either removing the hypothecated or pledged goods,
disposing of the mortgaged properties and/or of breaching the terms of
the finance agreement, instrument, etc. The financial institutions filed
complaints against them before the Special Courts constituted under
the ORBO and the Agency under the Act, 1974. In the second category,
cheques issued by the customers to the financial institutions were
dishonoured and cases (FIRs) were registered against the former under
the provisions of Section 489-F of the PPC. Aggrieved, the customers
approached the learned High Court directly by filing either constitution
or revision petitions, or under Section 561-A of the Code, claiming that
action could only be taken against them under the Ordinance, 2001 (in
particular Section 20 thereof) and no other law, and exclusive jurisdiction
vests with the Banking Courts constituted under the said Ordinance.
Through the impugned judgments, the learned High Court dismissed
the matters holding that concurrent jurisdiction vests in the Banking
Civil Appeals No.2561 of 2016 etc. - 4 -
Courts constituted under the Ordinance, 2001, the Special Courts
constituted under the ORBO, the ordinary criminal courts and the
Agency, and the jurisdiction of the latter two courts and the Agency
would not be ousted on account of Sections 4 and 20 of the Ordinance,
2001. Thereafter, the customers approached this Court and leave in the
appeals was granted in the following terms:-
“It is contended by the learned counsel for the Petitioners
that by way of the impugned judgment dated 26.05.2016
passed in Writ Petition No.33423 of 2013, titled Faisal
Farooq and 3 others v. SHO and another, the learned
Lahore High Court has misinterpreted Sections 7(4) and
20 of the Financial Institutions (Recovery of Finances)
Ordinance, 2001, to hold that the Banking Court did not
have exclusive jurisdiction to try offences mentioned in
the Ordinance of 2001 and that criminal proceedings can
be launched independently in a forum, which is mentioned
in the said Ordinance, 2001. It is further contended that
the learned Lahore High Court has failed to take into
consideration the dictum laid down by this Court in the
judgment, reported as Waris Meah v. The State and
another (PLD 1957 Supreme Court (Pak.) 157) and the
Articles 4, 10-A and 25 of the Constitution of Islamic
Republic of Pakistan, 1973.
2.
Leave is granted, inter alia, to consider the
aforesaid contentions of the learned counsel for the
petitioners.”
The extensive arguments of the learned counsel for the parties are not
recorded separately, but shall be reflected during the course of this
opinion.
3.
We begin with the concept of general and special law.
General law is one that is unrestricted in terms of its applicability to all
issues covered by its subject matter. In juxtaposition special law may be
restricted to certain localities, persons or types of cases. Whether a law
Civil Appeals No.2561 of 2016 etc. - 5 -
is general or special depends on the particular features of the statute in
issue and is ultimately a question of relativity between two or more
statutes on the common subject matter. The PPC is a comprehensive
code for creating all criminal offences in Pakistan and applies
throughout the country (Section 1). Every person is liable to punishment
under the PPC for every act or omission contrary to its provisions (Section
2). Accordingly, the PPC is undoubtedly a general law. Similarly, the
Code is also a general law as it applies to the whole of Pakistan [Section
1(2)] and deals with investigation, inquiry and trial etc. of all offences
under the PPC [Section 5(1)].
4.
Initially, all criminal offences (barring a few) in Pakistan were
tried by the courts of ordinary criminal jurisdiction under the Code and
the PPC, i.e. the general law, and this included offences committed with
respect to banks. Subsequently, the Banking Companies (Recovery of
Loans) Ordinance, 1978 (the Ordinance, 1978) was promulgated to provide
for a summary procedure for recovery of loans of banking companies
and connected matters. Section 3 of the Ordinance, 1978 provided that
“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.”
According to this law, banking disputes pertaining to the recovery of
loans by a banking company from a borrower were made subject to the
jurisdiction
(civil
and
criminal) of the Special Courts constituted
thereunder, and no Court other than a Special Court was to possess or
exercise any jurisdiction with respect to any matter to which the
jurisdiction of such Court extended under the Ordinance, 1978 [Section
8(4)]. Banking offences (and their punishments)
Civil Appeals No.2561 of 2016 etc. - 6 -
evident from its salient features, the Ordinance, 1978 was a special law.
The Ordinance, 1978 was repealed and replaced with the Banking
Companies (Recovery of Loans) Ordinance, 1979 (the Ordinance, 1979)
which re-enacted the former with some modifications.
4.
On 31.12.1984, the Banking Tribunals Ordinance, 1984 (the
Ordinance, 1984) was promulgated to provide a machinery for the recovery
of finance provided by banking companies under a system of financing
which is not based on interest (Preamble). This law closely followed the
Ordinance, 1979 to quite an extent. One major difference was the
phrase “without prejudice to any other action which may be taken against him under
this Ordinance or any other law for the time being in force” which appeared in the
provisions relating to offences (Section 7). In 1997, both the Ordinances of
1979 and 1984 were repealed and replaced by the Banking Companies
(Recovery of Loans, Advances, Credits and Finances) Ordinance, 1997
(the Ordinance, 1997) which eventually culminated into the Banking
Companies (Recovery of Loans, Advances, Credits and Finances) Act,
1997 (the Act, 1997). The Act, 1997 essentially amalgamated the
Ordinances of 1979 and 1984 creating one single statute for banking
companies to recover loans or finances (interest based and interest-free) from
borrowers or customers respectively. Like its predecessors, the Act,
1997 contained a non-derogation clause, and the ‘without prejudice’
clause in the provisions relating to offences (Section 19), akin to the one in
the Ordinance, 1984. The Ordinances of 1984 and 1997 and the Act,
1997 were indubitably special laws, containing features similar to those
of the Ordinances of 1978 and 1979.
6.
The final link in the chain is the Ordinance, 2001. It
repealed and re-enacted the Act, 1997, albeit with certain modifications.
Civil Appeals No.2561 of 2016 etc. - 7 -
The Ordinance, 2001 established Banking Courts which deal with
disputes (civil and criminal) between financial institutions and customers in
respect of finances availed by the latter. Sections 4, 7 and 20 of the
Ordinance, 2001 are important and read as follows:-
4. Ordinance to override other laws. The provisions of this
Ordinance, shall have effect notwithstanding anything
inconsistent therewith contained in any other law for the
time being in force.
7. Powers of Banking Courts.–(1) Subject to the provisions
of this Ordinance, a Banking Court shall–
(a)
…………………………………………………………
(b)
in the exercise of its criminal jurisdiction, try
offences punishable under this Ordinance, and shall, for
this purpose have the same powers as are vested in a Court
of Sessions under the Code of Criminal Procedure 1898
(Act V of 1898):
Provided that a Banking Court shall not take
cognizance of any offence punishable under this Ordinance
except upon a complaint in writing made by a person
authorised in this behalf by the financial institution in
respect of which the offence was committed.
…
(4)
Subject to sub-section (5) no Court other than a
Banking Court shall have or exercise any jurisdiction
with respect to any matter to which the jurisdiction of a
Banking Court extends under this Ordinance, including a
decision as to the existence or otherwise of a finance and
the execution of a decree passed by a Banking Court.
(5)
Nothing in sub-section (4) shall be deemed to
affect–
(a)
the right of a financial institution to seek any
remedy before any court or otherwise that may be
available to it under the law by which the financial
institution may have been established; or
Civil Appeals No.2561 of 2016 etc. - 8 -
(b)
the powers of the financial institution, or
jurisdiction of any Court such as is referred to in
clause (a);
or require the transfer to a Banking Court of any
proceedings pending before any financial institution or
such Court immediately before coming into force of this
Ordinance.
20. Provisions relating to certain offences.– (1) Whoever–
(a) dishonestly commits a breach of the terms of a letter of
hypothecation, trust receipt or any other instrument or
document executed by him whereby possession of the
assets or properties offered as security for the re-
payment of finance or fulfillment of any obligation are
not with the financial institution but are retained by or
entrusted to him for the purposes of dealing with the
same in the ordinary course of business subject to the
terms of the letter of hypothecation or trust receipt or
other instrument or document or for the purpose of
effecting their sale and depositing the sale proceeds
with the financial institution; or
(b) makes fraudulent mis-representation or commits a
breach of an obligation or representation made to a
financial institution on the basis of which the financial
institution has granted a finance; or
(c) subsequent to the creation of a mortgage in favour of a
financial institution, dishonestly alienates or parts with
the possession of the mortgaged property whether by
creation of a lease or otherwise contrary to the terms
thereof, without the written permission of the financial
institution; or
(d) subsequent to the passing of a decree under section 10
or 11, sells, transfers or otherwise alienates, or parts
with possession of his assets of properties acquired
after the grant of finance by the financial institution,
including assets or properties acquired benami in the
name of an ostensible owner
shall, without prejudice to any other action which may
be taken against him under this Ordinance or any
other law for the time being in force, be punishable
with imprisonment of either description for a term
which may extend to three years and shall also be liable
Civil Appeals No.2561 of 2016 etc. - 9 -
to a fine which may extend to the value of the property
or security as decreed or the market value whichever is
higher and shall be ordered by the Banking Court
trying the offence to deliver up or refund to the
financial institution, within a time to be fixed by the
Banking Court, the property or the value of the property
or security.
Explanation.– Dishonesty may be presumed where a
customer has not deposited the sale proceeds of the
property with the banking company in violation of the
terms of the agreement between the financial institution
and the customer.
(2) Whoever knowingly makes a statement which is
false in material respects in an application for finance
and obtains a finance on the basis thereof, or applies
the amount of the finance towards a purpose other than
that for which the finance was obtained by him, or
furnishes a false statement of stocks in violation of the
terms of the agreement with the financial institution or
falsely denies his signatures on any banking document
before the Banking Court, shall be guilty of an offence
punishable with imprisonment of either description for
a term which may extend to three years, or with fine, or
with both.
(3) Whoever resists or obstructs, either by himself or on
behalf of the judgment debtor, through the use of force,
the execution of a decree, shall be punishable with
imprisonment, which may extend to one year, or with
fine, or with both.
(4) Whoever dishonestly issues a cheque towards re-
payment of a finance or fulfillment of an obligation
which is dishonoured on presentation, shall be
punishable with imprisonment which may extend to one
year, or with fine or with both, unless he can establish,
for which the burden of proof shall rest on him, that he
had made arrangements with his bank to ensure that the
cheque would be honoured and that the bank was at
fault in not honouring the cheque.
Civil Appeals No.2561 of 2016 etc. - 10 -
(5) …………………………………………………………
[(6)
All offences under this Ordinance shall be
triable by a Banking Court in accordance with section
7. All offences, except for the offence of willful default,
shall be bailable, non-cognizable and compoundable.]1
[(7)
Notwithstanding anything to the contrary
provided in any other law for the time being in force,
action in respect of an offence of willful default shall be
taken by an investigating agency, to be nominated in
this behalf by the Federal Government, on a complaint
in writing filed by an authorized officer of a financial
institution after it has served a thirty days (sic) notice
upon the borrower demanding payment of the loan,
advance or financial assistance.]2
(8) An offence of willful default shall be cognizable,
non-bailable and non-compoundable and punishable
with imprisonment which may extend to seven years or
fine not exceeding the amount of default or with both.
(9) …………………………………………………………
[Emphasis supplied]
Like its predecessor statutes, the Ordinance, 2001 is also a special law
as it created a special forum, i.e. Banking Courts, to deal with the
recovery of finance by financial institutions from customers, and
created certain offences in respect thereof which were also to be tried by
such Courts. The Ordinance, 2001 basically carved out a portion of the
jurisdiction of the ordinary courts, both civil and criminal.
7.
A few months before the Ordinance, 1984 was enacted the
ORBO was promulgated on 23.02.1984. It provides for the speedy trial
of certain offences committed in respect of banks and for matters
connected therewith or incidental thereto (Preamble). Special Courts were
1 Subs. and added by Act XXXVIII of 2016, Section 9.
2 Ibid.
Civil Appeals No.2561 of 2016 etc. - 11 -
created (Section 3) to try ‘scheduled offences’ defined in Section 2(d) to
mean “an offence specified in the First Schedule and alleged to have been committed
in respect, or in connection with the business, of a bank;” Clause (a) of the First
Schedule provides “Any offence punishable under any of the following sections of
the Pakistan Penal Code (Act XLV of 1860), namely:– Sections [201, 204, 217, 218,
380]3, 403, 406, 408, 409, [419, 420]4, 467, 468, 471, 472, 473, 475 and 477-A” (some
of which are subject to certain modifications as set out in the Second Schedule of ORBO read
with Section 6(2) thereof). Sections 4, 5 and 12 (relevant parts) of the ORBO read
as under:-
4. Scheduled offence to be tried by Special Court.__(1)
Notwithstanding anything contained in the Code, the
scheduled offences shall be triable exclusively by a Special
Court.
5. Procedure of a Special Court.-(1) A Special Court may
take cognizance of any scheduled offence upon receiving a
complaint of the facts which constitute such offence or upon
a report in writing of such facts made by any police officer.
12. Ordinance to override other laws. The provisions of
this Ordinance shall have effect notwithstanding anything
contained in the Code or in any other law for the time being
in force.
The ORBO created Special Courts which were given exclusive
jurisdiction to try various offences (Section 4) stipulated in the PPC but
incorporated into the ORBO by way of legislative reference (scheduled
offences) which were/are committed in respect of or in connection with
the ‘business of a bank’. Furthermore, no new offences specific to the
ORBO were created by it: instead the existing offences in the PPC were
3 Inserted by SRO No.396(I)/85 dated 24.8.1985.
4 Inserted by SRO ibid.
Civil Appeals No.2561 of 2016 etc. - 12 -
incorporated through legislation by reference (note:- punishment was increased).
It is patently clear that the ORBO is a special law in light of its
aforementioned features, as it wrests some of the jurisdiction of the
ordinary criminal courts.
8.
As established, the Code and PPC are general laws whilst
the ORBO and the Ordinance, 2001 are special laws. The appellants’
case is that an offence committed in relation to a finance agreement
inter se the financial institution and the customer, that falls within the
orbit of the Ordinance, 2001 can only be tried by the Banking Courts
constituted thereunder and that the Special Courts constituted under
the ORBO or the ordinary criminal courts under the Code would have
no jurisdiction. Equally the jurisdiction of the Agency under the Act,
1974 would also stand excluded by the criminal complaint procedure
provided in Section 20 of the Ordinance, 2001. In the above
configuration of laws, does the Ordinance, 2001 have an overriding
effect over the Code and the PPC, the ORBO and the Act, 1974?
9.
Section 7(4) of the Ordinance, 2001 confers exclusive
jurisdiction on the Banking Courts with respect to certain matters
albeit sub-section (5) creates an exception to the exclusive jurisdiction
of the Banking Courts. This confers a right on the financial institution
to seek any remedy before any court or otherwise which may be
available to it under the law by which the financial institution may have
been established [Section 7(5)(a)]. According to Section 4 of the Ordinance,
2001 reproduced above, its provisions “shall have effect notwithstanding
anything inconsistent therewith contained in any other law for the time being in force.”
This is essentially a non obstante clause which is defined as “A phrase
used in documents to preclude any interpretation contrary to the stated object or
Civil Appeals No.2561 of 2016 etc. - 13 -
purpose.”5 ‘Notwithstanding’ means despite, in spite of or regardless of
something. In this respect Justice G. P. Singh6 has aptly explained:-
“A clause beginning with ‘notwithstanding anything
contained in this Act or in some particular provision in the
Act or in some particular Act or in any law for the time
being in force’, is sometimes appended to a section in the
beginning, with a view to give the enacting part of the
section in case of conflict an overriding effect over the
provision or Act mentioned in the non obstante clause. It is
equivalent to saying that in spite of the provision or Act
mentioned in the non obstante clause, the enactment
following it will have its full operation or that the
provisions embraced in the non obstante clause will not be
an impediment for the operation of the enactment.”
In the judgment reported as Packages Limited through its General
Manager and others Vs. Muhammad Maqbool and others (PLD 1991
SC 258) this Court observed:-
“In our opinion a 'non-abstante' (sic) clause operates as an
ouster of the earlier provisions only where there is a
conflict and inconsistency between the earlier provisions
and those contained in the later provision and, therefore,
must be read in the context in which it is operating.
Accordingly, a non-obstante clause will operate as ouster
only if an inconsistency between the two is found to exist.”
In the judgment reported as Muhammad Mohsin Ghuman and others
Vs. Government of Punjab through Home Secretary, Lahore and
others (2013 SCMR 85), this Court cited with approval a passage from
Interpretation of Statutes by N. S. Bindra which reads as under:-
5 Black’s Law Dictionary (9th Ed.)
6 Principles of Statutory Interpretation (13th Ed.)
Civil Appeals No.2561 of 2016 etc. - 14 -
“It has to be read in the context of what the legislature
conveys in the enacting part of the provision. It should first
be ascertained what the enacting part of the section
provides on a fair construction of words used according to
their natural and ordinary meaning and the non obstante
clause is to be understood as operating to set aside as
no longer valid anything contained in relevant existing
law which is inconsistent with the new enactment. The
enacting part of a statute must, where it is clear, be taken
to control the non obstante clause where both cannot be
read harmoniously, for even apart from such clause a later
law abrogates earlier laws clearly inconsistent with it.
The proper way to construe a non obstante clause is first to
ascertain the meaning of the enacting part on a fair
construction of its words. The meaning of the enacting part
which is so ascertained is then to be taken as overriding
anything inconsistent to that meaning in the provisions
mentioned in the non obstante clause. A non obstante
clause is usually used in a provision to indicate that that
provision should prevail despite anything to the contrary
in the provision mentioned in such non obstante clause.
In case there is any inconsistency between the non obstante
clause and another provision one of the objects of such a
clause is to indicate that it is the non obstante clause which
would prevail over the other clauses. It does not, however,
necessarily mean that there must be repugnancy between
the two provisions in all such cases. The principle
underlying non obstante clause may be invoked only in the
case of 'irreconcilable conflict'.”
From the above it is clear that the non obstante clause of Section 4 of
the Ordinance, 2001 has been used by the legislature to give the
provisions of the said Ordinance an overriding effect over any other law
for the time being in force which may be contrary thereto. The use of
the word ‘notwithstanding’ in Section 4 ibid indicates the legislative
intent to avoid the operation of conflicting provisions, by providing that
Civil Appeals No.2561 of 2016 etc. - 15 -
in the event of such conflict, the provisions of the Ordinance, 2001
would take precedence over any such inconsistent law.
10.
So, does the Ordinance, 2001 override the provisions of the
Code and the PPC? This question pertains to the second category of
cases (identified in the second paragraph of this opinion) in which cheques issued
by the customers to the financial institutions were dishonoured and
FIRs were registered against the former under the provisions of Section
489-F of the PPC. It is a settled canon of interpretation that where there
is a conflict between a special law and a general law, the former will
prevail over the latter. In Muhammad Mohsin Ghuman’s case (supra)
this Court observed that “special statute overtakes the operation of general
statute”. At this juncture, it is useful to point out certain relevant
provisions of the Code and the PPC. Section 1(2) of the Code provides
that “…in the absence of any specific provision to the contrary, nothing herein
contained shall affect any special or local law now in force, or any special jurisdiction
or power conferred, or any special form of procedure prescribed, by any other law for
the time being in force.” According to Section 5(1) of the Code, all offences
under the PPC “shall be investigated, inquired into, tried, and otherwise dealt with
according to the provisions hereinafter contained”, whereas sub-section (2)
thereof states that “All offences, under any other law shall be investigated,
inquired into, tried and otherwise dealt with according to the same provisions, but
subject to any enactment for the time being in force regulating the manner or place of
investigating, inquiring into, trying or otherwise dealing with such offences.” Section
29(1) of the Code provides “Subject to the other provisions of this Code, any
offence under any other law shall, when any Court is mentioned in this behalf in such
law, be tried by such Court.” While Section 5 of the PPC stipulates that
“Nothing in this Act [PPC] is intended to repeal, vary, suspend or affect any of the
Civil Appeals No.2561 of 2016 etc. - 16 -
provisions…of any special or local law.” These provisions make it clear that
not only do the Code and the PPC recognize special laws, but they
indicate that such general laws would cede to the special laws. The
phrase ‘for the time being in force’ [in Section 1(2) of the Code] has been
interpreted by a five member bench of this Court in the judgment
reported as (1) Mian Iftikhar-ud-Din, and (2) Arif Iftikhar Vs. (1)
Muhammad Sarfraz Administrator, Progressive Papers Ltd. (2) The
Government of Pakistan (PLD 1961 SC 585) to mean that it will apply
not only to those existing statutes enacted in the past, but also to those
which may be enacted in the future. Thus the Code does not affect any
special laws including the Ordinance, 2001.
11.
This overriding effect of Section 20(4) of the Ordinance on
Section 489-F of the PPC is brought out by the following comparison:-
Inconsistency
Ordinance, 2001
PPC
Elements of
the offence
Punishment
Burden of
proof
20(4). Whoever dishonestly issues
a cheque towards re-payment of a
finance or fulfillment of an
obligation which is dishonoured
on presentation,
shall
be
punishable
with
imprisonment which may extend to
one year, or with fine or with both,
unless he can establish, for which
the burden of proof shall rest on
him,
that
he
had
made
arrangements with his bank to
ensure that the cheque would be
honoured and that the bank was at
fault in not honouring the cheque.
489-F.
Dishonestly
issuing
a
cheque.
Whoever
dishonestly
issues a cheque towards repayment
of a loan or fulfilment of an
obligation which is dishonoured on
presentation,
shall
be
punished
with
imprisonment which may extend to
three years or with fine, or with
both,
unless he can establish, for which
the burden of proof shall rest on
him,
that
he
had
made
arrangements with his bank to
ensure that the cheque would be
honoured and that the bank was at
fault in not honouring the cheque.
Civil Appeals No.2561 of 2016 etc. - 17 -
The above comparison of Sections 20(4) of the Ordinance, 2001 and
489-F of the PPC suggests that there is a clear conflict between them –
they are worded in identical terms [save for the word ‘finance’ in Section 20(4)
as opposed to ‘loan’] but the former provides for a lesser punishment of
imprisonment which may extend to one year, or with fine or with both,
whereas the latter stipulates a punishment of imprisonment which may
extend to three years or with fine, or with both. Therefore Section 489-F
cannot simultaneously apply to a situation where an offence under
Section 20(4) of the Ordinance, 2001 is made out on account of the
disparity in punishment. The law providing greater punishment must
relent in favour of the law ordaining the lesser punishment. The
ineluctable conclusion is that the Ordinance, 2001 overrides the Code
and the PPC where an offence has been committed which falls within
the purview of the former; and exclusive jurisdiction would vest in the
Banking Courts constituted thereunder (the Ordinance, 2001) to the
exclusion of the ordinary criminal courts.
We are not convinced by the argument of the learned counsel for
the respondents that the Ordinance, 2001 could not override Section
489-F of the PPC as the former law was promulgated on 30.08.2001
whereas the latter was inserted into the PPC by way of amendment on
25.02.2002, because as mentioned above, the phrase “for the time being in
force” applies to future enactments as well, thus mere insertion of a
provision in a general law after the special law comes into force would
not make the general law override the special law. In fact, this insertion
after the promulgation of the Ordinance, 2001 negates the respondents’
argument for the reason that it shows that the object was to also make
the dishonouring of cheques to be an offence in ordinary cases apart
Civil Appeals No.2561 of 2016 etc. - 18 -
from those cases involving a customer and a bank which are dealt with
by the Ordinance, 2001.
12.
The other question which arises is, does the Ordinance,
2001 override the provisions of the ORBO? This relates to the first
category of cases (identified in the second paragraph of this opinion). As established
above, both the Ordinance, 2001 and the ORBO are special laws,
therefore their respective scope and sphere of application needs to be
examined in order to determine the relationship between the two. In
other words, which law is the more special? To answer this question, it
is necessary to elucidate the law on this subject.
Case law from the Indian jurisdiction on this subject is quite
extensive. In the case of Shri Ramah Narain Vs. The Simla Banking
and Industrial Co. Ltd. (1956 SCR 603), the Indian Supreme Court,
while considering the effect of the overriding effect of two special laws,
held as follows:-
“On the other hand, if the rule as to the later Act
overriding an earlier Act is to be applied to the present
case, it is the Banking Companies (Amendment) Act, 1953,
that must be treated as the later Act and held to override
the provisions of the earlier Displaced Persons (Debts
Adjustment) Act, 1951. It has been pointed out, however,
that section 13 of the Displaced Persons (Debts
Adjustment) Act, uses the phrase "notwithstanding anything
inconsistent therewith in any other law for the time being in
force" and it was suggested that this phrase is wide enough
to relate even to a future Act if in operation when the
overriding effect has to be determined. But it is to be
noticed that section 45-A of the Banking Companies Act
has also exactly the same phrase. What the connotation of
the phrase "for the time being" is and which is to prevail
when there are two provisions like the above each
containing the same phrase, are questions which are not
free from difficulty. It is, therefore, desirable to determine
Civil Appeals No.2561 of 2016 etc. - 19 -
the overriding effect of one or the other of the relevant
provisions in these two Acts, in a given case, on much
broader considerations of the purpose and policy
underlying the two Acts and the clear intendment conveyed
by the language of the relevant provisions therein.”
In Kumaon Motor Owners’ Union Ltd. and another Vs. The State of
Uttar Pradesh (AIR 1966 SC 785 = [1966] 2 SCR 122) the Indian
Supreme Court compared the provisions of the Motor Vehicles Act,
1939 and the Defence of India Act, 1962, particularly Sections 68-B and
43 thereof respectively, and held that the latter would prevail over the
former. In the judgment of Sarwan Singh Vs. Kasturi Lal (AIR 1977
SC 265), the Indian Supreme Court relied upon Shri Ram Narain’s
case (supra) and observed as under:-
“When two or more laws operate in the same field and
each contains a non obstante clause stating that its
provisions will override those of any other law, stimulating
and incisive problems of interpretation arise. Since
statutory interpretation has no conventional protocol,
cases of such conflict have to be decided in reference to
the object and purpose of the laws under consideration.”
[Emphasis supplied]
In Ashok Marketing Ltd. and another Vs. Punjab National Bank and
others [(1990) 4 SCC 406], the Supreme Court of India referred to the
cases of Shri Ram Narain, Kumaon Motor Owners’ Union and
Sarwan Singh (supra) and held as under:-
“The principle which emerges from these decisions is that
in the case of inconsistency between the provisions of two
enactments, both of which can be regarded as special in
nature, the conflict has to be resolved by reference to the
purpose and policy underlying the two enactments and the
Civil Appeals No.2561 of 2016 etc. - 20 -
clear intendment conveyed by the language of the relevant
provisions therein. We propose to consider this matter in
the light of this principle.”
In Solidaire India Ltd. Vs. Fairgrowth Financial Services Ltd. and
others [(2001) 3 SCC 71], it was observed:-
“It is clear that both these Acts are special Acts. This Court
has laid down in no uncertain terms that in such an event it
is the later Act which must prevail. The decisions cited in
the above context are as follows: Maharashtra Tubes Ltd.
v. State Industrial & Investment Corpn of Maharashtra
Ltd; [1993] 2 SCC 144]; Sarwan Singh v. Kasturi Lal
[1977] 2 SCR 421]: Allahabad Bank V. Canara Bank
[(2000) 4 SCC 406] and Ram Narain v. Simla Banking &
Industrial Co, Ltd. [1956] 1 SCR 603].”
The Court went on to quote, with approval, the ratio of the decision in
Bhoruka Steel Ltd v. Fairgrowth Financial Services Ltd. [5 (1997)
89 Comp Cas 547 (Special Court)], the relevant extract of which reads
as under:-
“It is a settled rule of interpretation that if one construction
leads to a conflict, whereas on another construction, two
Acts can be harmoniously constructed then the latter must
be adopted.”
In Messrs Maruti Udyog Ltd. Vs. Ram Lal and others [(2005) 2 SCC
638] the Indian Supreme Court relied on Solidaire India’s case (supra)
and held that:-
“The said Act contains a non-obstante clause. It is well-
settled that when both statutes containing non-obstante
clauses are special statutes, an endeavour should be made
to give effect to both of them. In case of conflict, the latter
shall prevail."
Civil Appeals No.2561 of 2016 etc. - 21 -
The Indian Supreme Court in State of Bihar and others Vs. Bihar
M.S.E.S.K.K. Mahasangh and others (AIR 2005 SC 1605) reiterated
the principles in Swaran Singh’s case (supra) and the Principles of
Statutory Interpretation by Justice G. P. Singh (9th Ed.). In Morgan
Securities and Credit Pvt. Ltd. Vs. Modi Rubber Ltd. (AIR 2007 SC
683), it was held that:-
“Both the Acts contain non-obstante clauses. Ordinary rule
of construction is that where there are two non obstante
clauses, the latter shall prevail. But it is equally well-
settled that ultimate conclusion would depend upon the
limited context of the statute.”
In
the
judgment
reported
as
Employees
Provident
Fund
Commissioner Vs. O. L. of Esskay Pharmaceuticals Limited (AIR
2012 SC 11) the Court reiterated the principles enunciated in the
cases of Shri Ram Narain, Kumaon Motor Owners’ Union and Ashok
Marketing (supra) and held that:-
“Another rule of interpretation of Statutes is that if two
special
enactments
contain
provisions
which
give
overriding effect to the provisions contained therein, then
the Court is required to consider the purpose and the policy
underlying the two Acts and the clear intendment conveyed
by the language of the relevant provisions.”
13.
As regards the case law from the Pakistani jurisdiction, in
the judgment reported as State Vs. Syed Mir Ahmed Shah and
another (PLD 1970 Quetta 49) Justice Muhammad Afzal Zullah
comprehensively dealt with the issue of implied repeal. He discussed
and compared the various features of the Pakistan Criminal Law
Amendment Act (XL of 1958) and the Criminal Law (Special Provisions)
Civil Appeals No.2561 of 2016 etc. - 22 -
Ordinance (II of 1968) and concluded that for an accused person the
mode of trial under the Act is far more beneficial than that under the
Ordinance, that both the statutes are inconsistent with each other and
clearly exclude the application of the other. He enunciated the accepted
general principles for the avoidance of conflict between different
statutes as under:-
“(i) If the provisions of a later Act are so inconsistent with
those of an earlier Act that both cannot stand together, the
earlier stands impliedly repealed by the later. This
principle is based on the maxim leges posteriores priores
contrarias abrogant. In other words, it means that the
latest expression of the will of the Legislature must prevail.
This, of course, is subject to the condition contained in the
next principle. That is: if the prior enactment is special and
the subsequent enactment is general, the earlier special
Legislation will not be, indirectly, repealed, altered or
derogated from merely by force of the general words of the
later statute, without any indication of a particular strong
intention to do so.
(ii) A general later law does not abrogate, by mere
implication, an earlier particular or special law which
deals with a special object or a special class of objects.
This principle is based on the maxim generalia specialibus
non derogant. But when a general Act is incorporated into
a special one, the provisions of the latter would prevail
over any of the former with which they are inconsistent. If
one statute enacts something in general terms, and
afterwards another statute .is passed on the same subject,
which, although expressed in affirmative language,
introduces
special
conditions
and
restrictions,
the
subsequent statute will usually be considered as repealing
by implication the former, for "affirmative statutes
introductive of a new law do imply a negative". However, if
a subsequent statute merely creates an exception from the
operation of a previous statute, the previous statute is not
necessarily repealed.
Civil Appeals No.2561 of 2016 etc. - 23 -
(iii) When the later of two general enactments is couched in
negative terms or in such affirmative terms which
unequivocally involve negative which proves fatal to the
earlier enactment, the earlier one is impliedly repealed.
(iv) When the two statutes are expressed in negative terms,
they may be affirmative inter se and may not be
contradictory to each other; though the effect of both may
be that they are negative as regards a third statute ‘at
which both of them may have made some inroads’. When
seen in this light, an apparent conflict of two statutes is
found as without any reality. Because they (sic) objects may
be different and both may be parallel; and each may be
restricted to its own particular subject or locality.
(v) If the co-existence of the two inconsistent statutes would
be destructive of the object for which the later was passed,
the earlier would be deemed to have been repealed.
(vi) In so far as the Penal Acts are concerned, if a later
statute again describes an offence created by a former one,
and provides a different punishment, creates a new
jurisdiction
and
remedy
and
varies
the
procedure-modifying the manner or changing the forum of
trial or appeal, the earlier statute is impliedly repealed by
the later unless, of course, both of them can exist in
parallel application to different localities, subjects or
objects.
(vii) When the words are clear and capable of proper
operation, the revocation or alteration of a statute by
construction is not permissible. The Legislature is normally
not presumed to have intended to keep two contradictory
enactments on the statute-book with the intention of
repealing the one with the other, without expressing an
intention to do so. Such an intention cannot be imputed to
the Legislature without some strong reasons and unless it is
inevitable. Before adopting the last-mentioned course, it is
necessary for the Courts to exhaust all possible and
reasonable constructions which offer an escape from
repeal by implication.
Civil Appeals No.2561 of 2016 etc. - 24 -
(viii) All other consideration being equal, if the
inconsistency, in spite of applying all general principles of
interpretation of statutes, cannot be resolved, a statute
more beneficial in remedy or method of taking action will
override the statute which is not so beneficial.
The list of the principles on the subject is, by no means,
exhaustive. Departures from the above principles have
been made in individual cases on the basis of the language
used in, and the intention found in respect of, particular
statute. The approach in Pakistan on various questions of
interpretation of statutes, as compared to India, has usually
been pragmatic rather than technical. It was observed in
the case of Badrul Haque (PLD 1963 SC 704), that "the
fundamental rule of interpretation to which all others are
subordinate is that a statute is to be expounded according
to the intent of them that made it". Therefore, it has to be
laid down as a governing rule that whenever there are two
possible interpretations, the one destroying the intention of
the Legislature in passing the Act should not be adopted.
But once the intention having been discovered and words
having been given correct meaning and interpretation, the
Courts will not refuse to give effect to the Legislation
merely because it appears to be harsh, unreasonable or
even vindictive; because these attributes of a statute fall
within the field of policy of the Legislature and go beyond
the ambit of the jurisdiction of the Courts. This, of course,
is subject to the question of mala fides of the Legislature in
enacting a law and the further question whether or not on
that basis the Courts can go into validity of a particular
law. That subject is not relevant to the discussion of the
present case. Therefore, no comments are made thereon.
The principles laid down in Mir Ahmed Shah’s case (supra) were cited
with approval in the judgment of this Court reported as I. G. HQ
Frontier Corps and others Vs. Ghulam Hussain and others (2004
SCMR 1397). Thus, when there are two special laws both of which
contain overriding clauses, in the case of conflict between the two laws
generally the statute later in time will prevail over the statute prior in
Civil Appeals No.2561 of 2016 etc. - 25 -
time. However, we are of the opinion that this presumption is not
automatic: instead a host of other factors including the object, purpose
and policy of both statutes and the legislature’s intention, as expressed
by the language employed therein, need to be considered in order to
determine which of the two special laws is to prevail.
14.
In the light of the above, a comparison of the salient
features of both the laws is necessary:-
Inconsistency
Ordinance, 2001
ORBO
Object
Providing a special forum and
procedure
for
redressal
of
grievances, both civil and criminal,
between a “financial institution”
[Section 2(a)] and a “customer”
[Section 2(c)] arising out of or in
relation to “finance” [Section 2(d)]
[proviso to Section 7(1)(b)]
Providing a forum and procedure
for trial of offences committed in
respect of or in connection with the
“business of a bank” [Sections 2(d)
and 4]
Subject
Civil
Customer and financial institution
(Section 9)
Criminal
Whoever commits an offence in
relation to obligations arising out of
the finance in respect of a financial
institution (Section 20)
No civil jurisdiction
Criminal
Any person committing a scheduled
offence in relation to the business of
a bank [Sections 2(d) and 4]
Procedure
Initiation of proceedings
Only upon a complaint in writing
made by a person authorised by the
financial institution in respect of
which the offence was committed
No First Information Report as the
offences are non-cognizable other
than willful default [Section 20(6)]
Initiation of proceedings
Upon a complaint by any person; or
A report in writing made by any
police officer [Section 5(1)]
Civil Appeals No.2561 of 2016 etc. - 26 -
Bail
All offences, other than willful
default, are bailable [Section 20(6)]
Compounding
All offences, other than willful
default, are compoundable [Section
20(6)]
Forum
To be exclusively tried by a Banking
Court [Section 7(4)]
Bail
Not to be released on bail if there
appear reasonable grounds of guilt
[Section 5(6)]
In case of bail, the amount of bail
bond to be fixed in relation to the
amount involved and cannot be less
than such amount [Section 5(7)]
Compounding
Most of the scheduled offences are
non-compoundable
Forum
To be exclusively tried by a Special
Court [Section 4(1)]
Punishment
For offences falling in Section 20(1)
and (2), three years imprisonment
and fine
For offences falling in Section 20(3)
and (4), one year imprisonment and
fine
For the PPC offences in the Second
Schedule, not less than seven years,
and/or fine, while the other PPC
offences in the First Schedule, which
may extend to seven/three/two/one-
fourth part of the longest term of the
imprisonment
provided
for
the
offence, and/or fine (First and
Second Schedule)
Amount of fine to be fixed having
regard to the gravity of the offence,
and where the offence is committed
with respect to a specific amount,
not less than twice the said amount
[Section 6(3)]
Impediments
and burden
of proof
Dealing with property
After taking cognizance, an accused,
relatives of the accused and persons
acting on his behalf are barred from
dealing
with
moveable
and
Civil Appeals No.2561 of 2016 etc. - 27 -
immoveable
properties
without
permission of the Special Court
(Section 7)
Bar against leaving Pakistan
After taking cognizance, an accused
cannot
travel
abroad
without
permission of the Special Court
[Section 8(1)]
Bar against employment
After taking cognizance, an accused
cannot be employed for any service
without permission of the Special
Court [Section 8(2)]
Burden of proof
Presumption of guilt against an
accused and burden of proof on
accused in respect of his assets as
well as those of his relatives (Section
9)
15.
As mentioned earlier, Section 4(1) of the Ordinance, 2001 is
an overriding clause. However, an almost identical overriding clause can
be found in Section 12 of the ORBO, save for the fact that it does not
contain the words ‘inconsistent therewith’ after ‘notwithstanding
anything’. We find this omission to be insignificant, as the legislature’s
intent is clear; that the provisions of the ORBO be given effect in spite of
anything contained in the Code or any other law for the time being in
force. Thus both laws are special and contain competing overriding
clauses. As stated earlier in this opinion, the object and purpose of the
ORBO was to create Special Courts to provide for the speedy trial of
‘scheduled offences’ which are offences committed in respect, or in
connection with the business of a bank. ‘Business of a bank’ has been
Civil Appeals No.2561 of 2016 etc. - 28 -
elaborately explained in the judgment reported as A. Habib Ahmed Vs.
M. K. G. Scott Christian and 5 others (PLD 1992 SC 353) to mean:-
The definition of scheduled offence as contained in section
2 (d) of the Ordinance does include a rider to be to the
offences which are mentioned in the schedule and which
undoubtedly are alleged in this case. The rider is that those
offences should have been alleged to have been committed
"in respect of or in connection with the business of bank".
It needs to be emphasized that the expression "business of
a bank" used in the definition would have to be given
extended meaning on account of the use of two such
further open ended expressions which connote very wide
meaning for the words "business" and the "Bank". These
are "in respect of” or "in connection with". The scrutiny of
the meanings of these words and expressions in the
classical sources together with the modern usages and
scope of Banking business, leave absolutely no doubt that
there will be left out of their ambit only extremely rare
cases. They somehow or the other, are linked with the
modern extended banking practices in trade business,
industry and finance, domestic and other; besides the
earlier known scope of their operation. Take, for example,
the word "Business" as separate from the word "Bank".
Again take all that goes with the modern banking business
and all that is included in the banking procedures. Not only
this, banking activities both with regard to the depositors
dealings as well as dealings in trading and other
enterprises are their business. There is no need to dilate
upon the scope of the expressions "in respect of” and "in
connection with" any further.
…The intention being that all conceivable situations,
linked with the business of the bank, would make the
offences mentioned in the schedule as scheduled offences.
Thus to take away all such cases from the ordinary
Courts, for purpose of their trial before the Special Courts
(Banks).
[Emphasis supplied]
Civil Appeals No.2561 of 2016 etc. - 29 -
Thus the conceptual construct of ‘business of the bank’ and the scope
of the ORBO are interlinked. Furthermore, the number as well as the
ambit of the offences specified in the First Schedule to the ORBO is
relatively wide. The following cases illustrate the variety of offences that
fall within the purview of the ORBO:-
i.
Misappropriation of funds by bank employee –
Muhammad Yaqub Ali Vs. The State (PLD 1985
Lah 48);
ii.
Forgery of title deeds by mortgagee and non-
verification of documents by bank employee Asif
Mahmood Vs. The State (1987 PCrLJ 896);
iii.
Bank guarantee forged by a bank employee – The
State Vs. Muhammad Iqbal (1987 PCrLJ 1096);
iv.
Cashier running away with the cash of a bank –
Manzoor Ahmed Vs. The State (1989 MLD 4890);
v.
Forgery of banking instrument by an account holder
to claim a higher sum– Asmat Qadri Vs. The State
(PLD 1989 Kar 276);
vi.
Embezzlement
of
money
from
bank
account
maintained with a bank – Allied Bank of Pakistan
Ltd. Vs. Khalid Farooq (1991 SCMR 599);
vii.
Fraudulent sale of shares by a bank employee, which
were held as security by the bank – A. Habib
Ahmed’s case (supra);
viii.
Forgery of cheques for withdrawal of amount by an
account holder – Ghulam Mustafa Vs. Presiding
Officer, Special Court (Offences Against Banks),
Rawalpindi and 2 others (2003 MLD 841);
ix.
Manipulation of pay order by an account holder –
Muhammad Moinuddin Vs. Presiding Officer,
Civil Appeals No.2561 of 2016 etc. - 30 -
Special Court (Offences in Banks), Singh at
Karachi and 3 others (2011 PCrLJ 1488); and
x.
Fraudulent misappropriation from bank account by a
bank employee and embezzlement – Hamad Raza
through Special Attorney Vs. The State and 2
others (2014 CLD 1493).
On the other hand, the Ordinance, 2001 established Banking Courts
which deal with disputes (civil and criminal) between financial institutions
and customers in respect of finances availed by the latter and
investigate and try offences stipulated therein. Section 20 of the
Ordinance, 2001 indicates that there are numerous elements of each
offence, making such offences far more specific than those triable by
the Special Courts under the ORBO. Thus, perchance if a customer
commits an act which constitutes an offence under any of the
provisions of Section 20(1) of the Ordinance, 2001 and the same act
also constitutes an offence under the ORBO, and but for the Ordinance,
2001 being in force, such customer would have been tried under the
ORBO, then it could be said that there was/is a definite overlap
between the two laws and the Courts established under the ORBO may
not
exercise
concurrent
jurisdiction
with
respect
to
those
acts/omissions which constitute offences under the Ordinance, 2001.
The examples of cases listed above, falling within the purview of the
ORBO, demonstrate that they do not extend to customers who are
alleged to have committed offences which fall squarely within the
purview of the Ordinance, 2001; rather they are restricted to the
employees of banks, any third parties (vis-à-vis customer and financial institution)
or in some instances customers but only when the act/omission does
Civil Appeals No.2561 of 2016 etc. - 31 -
not fall within the ambit of the offences in the Ordinance, 2001.
Therefore it is categorically held that the Ordinance, 2001 shall have an
overriding effect on all those cases which are covered by it.
Concomitantly, offences not covered by the Ordinance, 2001 would be
triable under the ORBO. A comparative analysis shows that generally,
proceedings before the Special Courts under the ORBO are more
onerous and relatively disadvantageous to the accused. Under the
ORBO, proceedings can be initiated on the basis of a complaint by any
person or a report by a police officer (as opposed to only a complaint by a financial
institution under the Ordinance, 2001), the accused is not to be released on bail if
there appear reasonable grounds of guilt (whereas all offences apart from willful
default are bailable under the Ordinance, 2001), most offences are non-
compoundable, punishment of the offences is generally of greater
severity, the accused and persons acting on his behalf are barred from
dealing with moveable and immoveable property without permission of
the Special Court, the accused can neither leave Pakistan nor be
employed for any service without the permission of the Special Court,
and there is presumption of guilt and the burden of proof is on the
accused.
16.
The learned counsel for the respondents have argued that
the Banking and Special Courts under the Ordinance, 2001 and the
ORBO respectively enjoy concurrent jurisdiction, giving the financial
institutions/banks a choice of forum before which the trial should take
place: in this behalf they have relied upon Section 20(1) of the
Ordinance, 2001, according to which whoever commits any of the
offences made out in parts (a) to (d) would be punishable to the extent
mentioned therein, “without prejudice to any other action which may be taken
Civil Appeals No.2561 of 2016 etc. - 32 -
against him under this Ordinance or any other law for the time being in force”
[Emphasis supplied]. Provisions enacted ‘without prejudice’ to other
provisions means that the former would not affect the operation of the
latter.7 The ‘without prejudice’ clause reproduced above can be divided
into two parts:- (i) any other action which may be taken against him
under the Ordinance, 2001; and (ii) any other action which may be
taken against him under any other law for the time being in force. As
regards the first part, it means that if a person commits an offence
which falls within the purview of Section 20 of the Ordinance, 2001,
action can be taken against him under the said Ordinance, including,
inter alia, a civil suit filed by a banking company before the Banking
Court under Section 9 thereof quite apart from action for committing
another offence. As far as the second part is concerned, when the
Ordinance, 2001 came into force, the ORBO was already in existence.
Would this mean that if a person committed an offence which fell within
the purview of Section 20 of the Ordinance, 2001, parallel action could
be taken against him under the ORBO? The answer depends on the
scope of the phrase ‘without prejudice’. In isolation this expression
would speak to the legislature’s intention that a financial institution be
not confined to having recourse to only one specific remedy against a
customer for offences committed by him in relation to the obligations of
the finance availed, but to allow the banking company to choose its
remedy. However, we cannot subscribe to this point of view. Were
both laws to apply concurrently and permit of parallel platforms for
the adjudication of offences under both laws then banks/financial
institutions would always choose to initiate proceedings under the
7 Justice G. P. Singh in Principles of Statutory Interpretation (13th Ed.)
Civil Appeals No.2561 of 2016 etc. - 33 -
more onerous law, in this case the ORBO. Such an interpretation
would give banks/financial institutions unbridled power to choose
the forum before which trial of offences should take place, and
they would obviously choose the Special Courts under the ORBO
being more burdensome and prejudicial to the accused (as demonstrated
above). A natural corollary is that in such circumstances the
Ordinance, 2001 would, in effect, be rendered redundant. This is
not permissible under any principle of interpretation of law when
the Courts are trying to reconcile two potentially conflicting laws:
our duty is to bridge the gap between what is and what was
intended to be. We are not willing to attribute redundancy to the
legislature. We do not wish to give financial institutions the
unrestricted power to choose, when there has been an alleged
dishonour of a cheque, between Section 20(4) of the Ordinance,
2001 and Section 489-F of the PPC, as they would of a certainty
opt to initiate proceedings under the latter which offence carries a
greater punishment than the former. In this context, the judgment
reported as Waris Meah Vs. (1) The State (2) The State Bank of
Pakistan (PLD 1957 SC 157) is relevant in which a five member bench
of this Court held as under:-
In the present case, the question to be determined is
whether the impugned Act is ex facie discriminatory, and
we have no hesitation in saying that it is. Three tribunals
with different powers and procedures have been set up. The
Act creating them contains no indication as to which class
or classes of cases are to go before a Court and which
before the Tribunal and the Adjudication Officer and it
does not impose upon the Central Government, the
obligation, or expressly confer on it the power, of making
rules with a view to classifying the cases to be tried by each
Civil Appeals No.2561 of 2016 etc. - 34 -
of thesee (sic) tribunals. Nor does it define the principle or
policy on which such classification may be made by the
Central Government or the State Bank. The Central
Government has not exercised its power of issuing any
directions to the State Bank or of making any rules under
section 27 for carrying into effect the provisions of the Act.
The result, therefore, is that in the present state of the law
no person who is alleged to have contravened any
provision of the Act can know by which Court he is to be
tried, and the question whether on conviction he shall be
punished with imprisonment or should be punished with
imprisonment and fine which may extend to any amount, or
whether he should be let off with a mere penalty of three
times the value of the amount involved rests entirely on the
action that the Central Government or the State Bank may
choose to take.
It was contended on behalf of the State that in the present
cases, it could not be said that discretion had not been
exercised in a fair and reasonable manner by the State
Bank, in electing to send the cases to a Tribunal. On the
allegations, the cases were of a serious character, and
merited severe punishment. The mischief of the Act is,
however, not susceptible of so simple a cure. It confers
discretion of a very wide character upon stated authorities,
to act in relation to subjects falling within the same class in
three different modes varying greatly in severity. By fur-
nishing no guidance whatsoever in regard to the exercise of
this discretion, the Act, on the one hand, leaves the subject,
falling within its provisions, at the mercy of the arbitrary
will of such authority, and, on the other, prevents him from
invoking his fundamental right to equality of treatment
under the Constitution.
The Constitution declares in Article 5 (1) that "All citizens
are equal before law and are entitled to equal protection of
law" and Article 4 (1) provides that "Any existing law . . . .
. in so far as it is inconsistent with the provisions of this
Part, shall, to the extent of such inconsistency, be void."
That duty of declaring that a law is void, for violating a
Fundamental Right defined in Part II rests on the Courts.
That duty cannot be performed, so as to ensure that a law
operates equally in relation to all persons within its
Civil Appeals No.2561 of 2016 etc. - 35 -
mischief, if the law itself provides for differential operation
in relation to such persons, not in accordance with any
principle expressed or implicit in the law, not on the basis
of any classification made by or under the law, but
according to the unfettered discretion of one or more
statutory authorities.
Here, not only is there discretion in the specified
authorities whether they will proceed at all against any
member of the class concerned, viz. offenders against the
Act, but there is also an unfettered choice to pursue the
offence in any one of three different modes which vary
greatly in relation to the opportunity allowed to the alleged
offender to clear himself, as well as to the quantum and
nature of the penalty which he may incur. The scope of the
unguided discretion so allowed is too great to permit of
application of the principle that equality is not infringed by
the mere conferment of unguided power, but only by its
arbitrary exercise. For, in the absence of any discernible
principle guiding the choice of forum, among the three
provided by the law, the choice must always be, in the
judicial viewpoint, arbitrary to a greater or less degree.
The Act, as it is framed, makes provision for discrimination
between persons falling, qua its terms, in the same class,
and it does so in such manner as to render it impossible for
the Courts to determine, in a particular case, whether it is
being applied with strict regard to the requirements of
Article 5 (1) of the Constitution.
In our view such a law has the effect of doing indirectly i.e.,
by leaving the discrimination within the unguided and
unfettered discretion of statutory authorities, what it could
not do directly i.e., to treat unequally persons falling within
the same class, upon a basis which bears no reasonable
relation to the purposes of the law. The Act is, therefore, in
our opinion, in relation to its discriminatory provisions,
inconsistent with the declaration of equality in Article 5 (1)
of the Constitution.
17.
In addition to our opinion expressed above about the
redundancy of the Ordinance, 2001 (see paragraph No.16), to allow forums
Civil Appeals No.2561 of 2016 etc. - 36 -
under the Ordinance, 2001 and the ORBO to operate concurrently
would offend the provisions of Article 25 of the Constitution of the
Islamic Republic of Pakistan, 1973 (the Constitution) which provides that all
citizens are equal before the law and are entitled to equal protection of
the law; there being no defined guidelines on the basis of which cases
may be tried under either law, it would tantamount to conferring
unfettered discretion on financial institutions to pick and choose the
forum as per their free will. Allowing them to do so would be violative of
the rule against discrimination therefore we deem it best to restrict the
applicability of the ORBO and hold that the Ordinance, 2001 is to have
an overriding effect on the former. Furthermore, Article 4 of the
Constitution confers upon the citizens the inalienable right to enjoy the
protection of law and to be treated in accordance with law. This
provision is reflective of the seminal concept of the rule of law, one of
the elements of which is, as identified by Tom Bingham, that the law
must be accessible and so far as possible intelligible, clear and
predictable.8 If both the Ordinance, 2001 and the ORBO were to enjoy
concurrent jurisdiction, citizens alleged to have committed an offence in
respect of finance would be left wondering which offence they would be
charged with, which Court they would be tried in and under what
procedure. Thus, to our minds, such a situation would also be an
affront to the provisions of Article 4 of the Constitution.
18.
There is another aspect to this matter. The ‘without
prejudice’ clause was first introduced in the Ordinance, 1984. As
mentioned in the beginning of this opinion, the Ordinance, 1984 was
enacted to deal with the recovery of interest-free finance(s) as there
8 The Rule of Law (2010) by Tom Bingham.
Civil Appeals No.2561 of 2016 etc. - 37 -
already existed the Ordinance, 1979 to deal with regular loans. Both the
laws were meant to operate side by side as they catered to two different
types of finance/loan – interest free and otherwise. This is why the
Ordinance, 1984 did not repeal the Ordinance, 1979, instead Section 7
(of the Ordinance, 1984) included the phrase “without prejudice to any other action
which may be taken against him under this Ordinance or any other law for the time
being
in
force”
This
was
to
cater
for
situations
where
a
customer/borrower had, for instance, taken a loan and an interest-free
finance, and he had breached his obligations with respect to both: if
action were to be taken against him under the Ordinance, 1984 for
breach of his obligations with respect to the interest-free finance, it
would not preclude any action that may be taken against him in respect
of breach of his obligations with regard to the regular loan.
Unfortunately this ‘without prejudice’ clause was retained in the
Ordinance, 1997, the Act, 1997 and the Ordinance, 2001 when there
was absolutely no need to do so since these enactments dealt with both
regular and interest-free loans. It is a mere remnant and representative
of thoughtless drafting.
18.
It is for the aforesaid reasons that the phrase “without
prejudice to any other action which may be taken against him under… any other law for
the time being in force” appearing in Section 20(1) of the Ordinance, 2001
has to be read down in order to arrive at a harmonious interpretation to
the laws in question, without which the said Ordinance would be
rendered superfluous (at least to the extent of the offences). The principle of
‘reading down’ has been employed by this Court in numerous cases
such as Haroon-ur-Rashid Vs. Lahore Development Authority and
others (2016 SCMR 931) and Province of Sindh through Chief
Civil Appeals No.2561 of 2016 etc. - 38 -
Secretary and others Vs. M.Q.M. through Deputy Convener and
others (PLD 2014 SC 531) in order to save a statute and this is
precisely what we are doing today. By reading down the aforementioned
phrase in Section 20(1) supra, we are adopting a harmonious
interpretation in order to save the Ordinance, 2001, particularly the
provisions of Section 20 thereof from being rendered nugatory. The
principle of harmonious interpretation has often been endorsed by this
Court in cases such as Lucky Cement Ltd. Vs. Commissioner Income
Tax, Zone Companies, Circle-5, Peshawar (2015 SCMR 1494) and
Aftab Shahban Mirani and others Vs. Muhammad Ibrahim and
others (PLD 2008 SC 779). Thus, it is held that the scope of the
offences in the ORBO is wider than those set out in the Ordinance,
2001, leading us to the conclusion that the ORBO would not apply to
any acts or omissions which constitute an offence under the Ordinance,
2001. The same applies to the argument of the learned counsel for the
respondents that the Agency had the jurisdiction under the Act, 1974
(Section 3 and the Schedule) with regard to the offence committed under
Section 83A of the Ordinance, 1962 (and other provisions of the PPC). When an
act/omission that falls within Section 83A supra (or other provisions of the
PPC) also constitutes an offence under Section 20 of the Ordinance,
2001, then the latter will prevail over the former and only the Banking
Courts constituted under the Ordinance, 2001 would have the
jurisdiction in the matter, to the exclusion of the Agency.
19.
In conclusion, we find that the provisions of the Ordinance,
2001 are to have an overriding effect on anything inconsistent
contained in any other law for the time being in force, including the
ORBO, the Code (read with the PPC) and the Act, 1974 (read with the Ordinance,
Civil Appeals No.2561 of 2016 etc. - 39 -
1962). In essence, whenever an offence is committed by a customer of a
financial institution within the contemplation of the Ordinance, 2001, it
could only be tried by the Banking Courts constituted thereunder and
no other forum. The Special Courts under the ORBO, the ordinary
criminal Courts under the Code and the Agency under the Act, 1974
read with the Ordinance, 1962 would have no jurisdiction in the matter.
In the light whereof, all these appeals are allowed, the petitions are
converted into appeals and allowed and all the impugned judgments are
set aside.
CHIEF JUSTICE
JUDGE
JUDGE
Announced in open Court
on 15.5.2017 at Islamabad
Approved for reporting
Mudassar/
| {
"id": "C.A.2561_2016.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE ANWAR ZAHEER JAMALI, HCJ
MR. JUSTICE MIAN SAQIB NISAR
MR. JUSTICE EJAZ AFZAL KHAN
MR. JUSTICE MUSHIR ALAM
MR. JUSTICE MANZOOR AHMAD MALIK
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008, 60-L/2013,
280-L/2013, 60/2014, 965/2014 and 218/2015
(On appeal from the judgment dated 25.6.2001/27.8.2002/2.6.2008/17.12.2012/
23.10.2013/7.4.2014/3.10.2014 of the Lahore High Court, Lahore/Peshawar High Court,
Peshawar/Lahore High Court, Multan Bench/Peshawar High Court, D.I. Khan
Bench/Lahore High Court, Lahore/Peshawar High Court, D.I. Khan Bench passed in
C.R.No.1611/2000,
R.F.A.No.29/1996,
R.F.A.No.230/2005,
R.S.A.No.4/1996,
R.F.A.No.185/2011, R.F.A.No.4/2014 and C.R.No.124-D/2014)
Khushi Muhammad (deceased) through L.Rs.
(in C.A.2564/2001)
LDA through its D.G.
(in C.A.2658/2006)
Fazal-e-Yasir etc.
(in C.A.1670/2008)
Kh. Muhammad Mehmood etc.
(in C.A.60-L/2013)
Muhammad Yousaf etc.
(in C.A.280-L/13)
Muhammad Yousaf
(in C.A.60/2014)
Malik Akhtar Khan
(in C.A.965/2014)
Muhammad Ramzan
(in C.A.218/2015)
…Appellant(s)
VERSUS
Mst. Fazal Bibi etc.
(in C.A.2564/2001)
Muhammad Latif etc.
(in C.A.2658/2006)
Qazi Hamidduddin
(in C.A.1670/2008)
Muhammad Yousaf etc.
(in C.A.60-L/2013)
Kh. Muhammad Mehmood etc.
(inC.A.280-L/2013)
Muhammad Younas etc.
(in C.A.60/2014)
Ashiq Hussain
(in C.A.965/2014)
Mst. Saira Bibi
(in C.A.218/2015)
…Respondent(s)
C.A.2564/2001
For the Appellant:
Raja Muhammad Ibrahim Satti, Sr. ASC
Mr. M. S. Khattak, AOR
For the Respondents:
Malik Muhammad Qayyum, Sr. ASC
Mian Hamid Farooq, ASC
Syed Rifaqat Hussain Shah, AOR
C.A.2658/2006
For the Appellant:
Mr. Khurram Raza Chaudhry, ASC
For Resp. No.12:
Nemo
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 2 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
For Resp. No.16:
Mr. Waqar Ahmed Sheikh, ASC
Gulzar Hussain, Asstt. Director (Hort.), PHA
Mr. Muhammad Tariq Nazir, Asstt. Law, PHA
L.Rs. of Resp.1, 10 & 11:
Ex-parte
L.Rs. of Resp.2-9, 13-15:
Ex-parte
C.A.1670/2008
For the Appellant:
Mian Muhibullah Kakakhel, Sr. ASC
For the Respondent(s):
Mr. Abdul Sattar Khan, ASC
C.A.60-L/2013
For the Appellant:
Ch. Mushtaq Ahmed Khan, Sr. ASC
For the Respondent(s):
Ch. Nusrat Javed Bajwa, ASC
(Resp.Nos.1-3(i-vi),4(A-D),7(iv-viii),10-19,24-
48,54(A-C),55,56(ii-v),57-65)
For Respondent 7(i-iii):
Mr. Zahid Hussain Khan, ASC
C.A.280-L/2013
For the Appellant:
Ch. Nusrat Javed Bajwa, ASC
For Respondents 1-4:
Ch. Mushtaq Ahmed Khan, Sr. ASC
L.Rs. of Resp. No.5:
Not represented
C.A.60/2014
For the Appellant:
Mr. Muhammad Munir Peracha, ASC
For Respondents 1-2:
Mr. Gulzarin Kiyani, Sr. ASC
For Respondent No.3:
Not represented
C.A.965/2014
For the Appellant:
Sardar Muhammad Aslam, ASC
For the Respondents:
Ch. Muhammad Munir Akhtar Minhas, ASC
C.A.218/2015
For the Appellant:
Mr. Gulzarin Kiyani, Sr. ASC
For the Respondent(s):
Syed Mastan Ali Shah Zaidi, ASC
Dates of Hearing:
08.02.2016, 09.02.2016 & 10.02.2016
…
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 3 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
JUDGMENT
MIAN SAQIB NISAR, J:- Through these matters we have
been called upon to answer the question as to whether the time spent
in pursuing an appeal before a wrong forum can be condoned and/or
excluded from the prescribed period of limitation. In the above
context certain ancillary and incidental propositions also require
resolution:-
(i)
Whether Section 14 of the Act applies to appeals and if
not, whether the principles enshrined therein (Section 14)
can be made applicable while considering if a sufficient
cause has been made out under Section 5 of the Act;
(ii)
Whether the institution and the pendency of the
appeal before a wrong forum i.e. one having no jurisdiction
on account of wrong advice of the counsel constitutes a
sufficient cause for condonation of delay in terms of
Section 5 of the Limitation Act, 1908 (the Act);
(iii)
Where an appeal which has been entertained by the staff
of the court or the court itself which has no pecuniary
jurisdiction and is ultimately returned to the appellant or is
dismissed, whether this protects the appellant from the
bar of limitation and/or constitutes a sufficient cause for
the condonation of delay on the principle of actus curiae
neminem gravabit; and
(iv)
Whether the discretion exercised by the court(s) below
in condoning the delay cannot be interfered with by the
higher court(s) unless the discretion is shown to have been
exercised arbitrarily.
It may be pertinent to mention here that this is not the first time that
the superior Courts have been asked to provide answers to these
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 4 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
questions; on the contrary it has been a recurring issue coming before
the courts time and again and unhappily there happen to be drastically
divergent/conflicting views on the subject. Thus we wish to resolve the
conflict so as to have a binding effect on all those concerned in terms of
Article 189 of the Constitution of the Islamic Republic of Pakistan, 1973
(the Constitution).
As the aforesaid propositions are common to all these matters we
intend to resolve the same before examining and deciding the individual
cases on their own merits.
2.
Extensive arguments have been made by the learned counsel
for the parties for and against the propositions which are summarized
hereinbelow; their pleas/counter-pleas and the law cited in support
thereof (note: including case law researched by the Court staff) are reflected in the
reasons of this opinion. The summations of the learned counsels who
have objected to the condonation of delay/exclusion of time are briefly
stated below:-
(i)
That Section 5 of the Act should be strictly construed
and applied and that sufficient cause stipulated therein
should not be tested on the conditions of Section 14 of the
Act as it only applies to suits and not appeals; however some
of the counsel have submitted that the limitations of the
latter section should be referred to assess the existence of
sufficient cause;
(ii)
An appellant who approaches the wrong forum (one
lacking jurisdiction) should not be given the premium of his
own negligence; especially in cases where the institution
of an appeal before the wrong forum is tainted with
mala fide intention;
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 5 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
(iii)
When a lis is initiated beyond the prescribed period of
limitation a vested right is created in favour of the opposite
side which cannot be obliterated by giving a premium to a
delinquent litigant;
(iv)
That the rule actus curiae neminem gravabit is a rule of
administration of justice; it should not be used to favour a
delinquent litigant to the prejudice of the opposite side in
whose favour a vested right has been created; besides, where
an appellant is unmistakably found to be negligent or
lacking bona fide, to give him the benefit of the rule of actus
curiae neminem gravabit would be a serious abuse of the
rule which is meant for the administration of justice.
3.
On the other hand, the summations of the learned counsels
supporting the proposition that the appeal filed by the litigant before a
wrong forum on the mistaken/wrong advice of the counsel and the
subsequent entertainment of such appeal by the office of the court or the
court itself justifies condonation of delay are:-
(i)
That an appeal is an extension of a suit, and the entire case
reopens before the appellate court, therefore, Section 14 of
the Act can be resorted to for purposes of excluding the time
spent before the forum having no jurisdiction, however, the
conditions of the section have to be satisfied. Mr. Malik
Muhammad
Qayyum,
learned
ASC
when
specifically
questioned in this regard has candidly conceded that Section
14 would not be attracted, rather, the conditions stipulated
therein if satisfied should be construed to be a sufficient
cause in terms of Section 5 (this was also the submission of Mr.
Gulzarin Kiyani, learned counsel appearing for the opposite side);
(ii)
That if the reason for approaching the wrong forum is the
wrong advice of a legal expert whom a litigating party
approaches with due diligence and in good faith, therefore,
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 6 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
no prejudice should be caused to such litigant and delay
resulting due to mistaken advice should be condoned on this
account simpliciter;
(iii)
It is the duty of the appellate court (including its staff) to refuse
to entertain or admit an appeal when it does not fall within
its pecuniary jurisdiction, but in the event of failure to do so
the rule of actus curiae neminem gravabit would be duly
attracted;
(iv)
Where a court whilst exercising its discretion has condoned
the delay as per Section 5 of the Act, the higher court(s) shall
not interfere in such discretionary exercise of power [note: this
plea was raised by Mr. Malik Qayyum, learned ASC who has placed reliance on
the following cases in this regard:- Muhammad Bashir and another Vs.
Province of Punjab through Collector of District Gujrat and others (2003
SCMR 83), P.M. Amer Vs. Qabool Muhammad Shah and others (1999 SCMR
1049), Mrs. Zubaida Begum Vs. Mrs. S.T. Naqvi (1986 SCMR 261), Lahore
Development Authority Vs. Mst. Sharifan Bibi and another (PLD 2010 SC 705)
and National Bank of Pakistan and others Vs. Shamoon Khan and others
(2010 SCMR 1173)].
4.
Before considering the propositions above, it is expedient to
mention certain salient features which have been settled over a period
of time by the superior Courts for the purposes of interpretation of the
law of limitation. These are:-
(i)
The law of limitation is a statute of repose, designed to
quieten title and to bar stale and water-logged disputes and
is to be strictly complied with.1 Statutes of limitation by their
very nature are strict and inflexible. The Act does not confer
a right; it only regulates the rights of the parties. Such a
regulatory enactment cannot be allowed to extinguish vested
rights or curtail remedies, unless all the conditions for
extinguishment of rights and curtailment of remedies are
1 2016 PLC (CS) 195; 2010 PLC (Labour) 104; 2007 SCMR 1446; 2003 YLR 1837 and PLD 1962 (WP) Dacca
381.
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 7 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
fully complied with in letter and spirit.2 There is no scope in
limitation law for any equitable or ethical construction to get
over them.3 Justice, equity and good conscience do not
override the law of limitation.4 Their object is to prevent stale
demands and so they ought to be construed strictly;5
(ii)
The hurdles of limitation cannot be crossed under the guise
of any hardships or imagined inherent discretionary
jurisdiction of the court.6 Ignorance, negligence, mistake or
hardship does not save limitation, nor does poverty of the
parties;7
(iii)
It is salutary to construe exceptions or exemptions to a
provision in a statute of limitation rather liberally while a
strict construction is enjoined as regards the main provision.
For when such a provision is set up as a defence to an
action, it has to be clearly seen if the case comes strictly
within the ambit of the provision;8
(iv)
There is absolutely no room for the exercise of any imagined
judicial discretion vis-à-vis interpretation of a provision,
whatever hardship may result from following strictly the
statutory provision. There is no scope for any equity. The
court cannot claim any special inherent equity jurisdiction;9
(v)
A statute of limitation instead of being viewed in an
unfavourable light, as an unjust and discreditable defence,
should have received such support from courts of justice as
would have made it what it was intended emphatically to be,
a statute of repose.10 It can be rightly stated that the plea of
limitation cannot be deemed as an unjust or discreditable
2 PLD 2004 AJ&K 38.
3 PLD 2005 Lah 129; PLD 1962 (WP) Dacca 381 and PLD 1958 (WP) Lah 936.
4 PLD 2005 Lah 129.
5 2013 CLC 403; 2003 YLR 1837 and PLD 1962 (WP) Dacca 381.
6 AIR 1940 Rang 276 (FB)
7 PLD 2003 SC 628; 2002 PLC (CS) 526; 2002 PLC (CS) 474; PLD 2002 SC 101; 1998 PLC (CS) 1007; 1988
SCMR 1354 and 1987 PLC (CS) 200.
8 25 Cal 496, 503.
9 AIR 1935 All 323.
10 Supra note 1.
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 8 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
defence.11 There is nothing morally wrong and there is no
disparagement to the party pleading it.12 It is not a mere
technical plea as it is based on sound public policy and no
one should be deprived of the right he has gained by the
law.13 It is indeed often a righteous defence.14 The court has
to only see if the defence is good in law and not if it is moral
or conscientious;15
(vi)
The intention of the Law of Limitation is not to give a right
where there is not one, but to interpose a bar after a certain
period to a suit to enforce an existing right.16
(vii)
The Law of Limitation is an artificial mode conceived to
terminate justiciable disputes. It has therefore to be
construed strictly with a leaning to benefit the suitor;17
(viii) Construing the Preamble and Section 5 of the Act it will be
seen that the fundamental principle is to induce the
claimants to be prompt in claiming rights. Unexplained delay
or laches on the part of those who are expected to be aware
and conscious of the legal position and who have facilities for
proper legal assistance can hardly be encouraged or
countenanced.18
5.
Coming back to the issues in hand, it is desirable to
reproduce the provisions of Sections 5 and 14 of the Act which read as
under:-
“5. Extension of period in certain cases. Any appeal or
application for a revision or a review of judgment or for
leave to appeal or any other application to which this
section may be made applicable by or under any enactment
11 48 Cal 110 (PC); AIR 1933 PC 230.
12 Ibid.
13 Ibid.
14 AIR 1933 PC 230.
15 54 All 1067 (PC); AIR 1935 All 323; 56 Cal 575.
16 21 Cal 8, 18 (PC).
17 AIR 1966 Pat 1 (FB).
18 AIR 1966 Raj 213.
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 9 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
for the time being in force may be admitted after the
period of limitation prescribed therefor, when the
appellant or applicant satisfies the Court that he had
sufficient cause for not preferring the appeal or making
the application within such period.
(Emphasis supplied)
(note:- shall not be admitted unless a sufficient cause is shown)
Explanation. The fact that the appellant or applicant was
misled by any order, practice or judgment of the High Court
in ascertaining or computing the prescribed period of
limitation may be sufficient cause within the meaning of this
section.
14. Exclusion of time of proceeding bona fide in Court
without jurisdiction. (1) In computing the period of
limitation prescribed for any suit, the time during which the
plaintiff has been prosecuting with due diligence another
civil proceeding, whether in a Court of first instance or in a
Court of appeal, against the defendant, shall be excluded,
where the proceeding is founded upon the same cause of
action and is prosecuted in good faith in a Court which,
from defect of jurisdiction, or other cause of a like nature, is
unable to entertain it.
(2)
In computing the period of limitation prescribed for
any application, the time during which the applicant has
been prosecuting with due diligence another civil
proceeding, whether in a Court of first instance or in a
Court of appeal, against the same party for the same relief
shall be excluded, where such proceeding is prosecuted in
good faith in a Court which, from defect of jurisdiction, or
other cause of a like nature, is unable to entertain it.
Explanation I. In excluding the time during which a former
suit or application was pending, the day on which that suit
or application was instituted or made, and the day on which
the proceedings therein ended, shall both be counted.
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 10 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
Explanation II. For the purposes of this section, a plaintiff
or an applicant resisting an appeal shall be deemed to be
prosecuting a proceeding.
Explanation III. For the purposes of this section
misjoinder of parties or of causes of action shall be deemed
to be a cause of a like nature with defect of jurisdiction.”
6.
There are a very large number of judgments which have been
cited before us in support of the submissions that the Courts ought not
to condone delays on account of mistaken advice of counsel, on account
of pendency of a lis before the wrong forum and/or on account of some
perceived or actual mistake of the Court. The aforesaid findings are
variously stated in the following judgments of this Court: Rahim Bux Vs.
Settlement Authorities and others (1968 SCMR 78), Ahmad Din Vs.
Mst. Rasul Bibi (1968 SCMR 843), Rehmatullah and others Vs. Ulas
Khan and others (1968 SCMR 975), Shah Muhammad Vs. Ghulam
and another (PLD 1970 SC 196), Mst. Hajran Vs. Sardar Muhammad
(PLD 1970 SC 287), Mohiuddin Vs. Settlement and Rehabilitation
Commissioner Hyderabad, Karachi and Khairpur Divisions and
another (1970 SCMR 428), Hakeem Abdul Rehman Vs. Noor
Muhammad and another (1970 SCMR 582), Province of East
Pakistan Vs. Abdul Hamid Darji and others (1970 SCMR 558), Fateh
Ali Khan Vs. Subedar Muhammad Khan (1971 SCMR 354),
Muhammad Nawaz and 3 others Vs. Mst. Sakina Bibi and 3 others
(1974 SCMR 223), Ch. Muhammad Sharif Vs. Muhammad Ali Khan
and others (1975 SCMR 259), Abdul Ghani Vs. Ghulam Sarwar (PLD
1977 SC 102), Mst. Walayat Khan Vs. Khalil Khan and another (PLD
1979 SC 821), Khalid Farooq and 3 others Vs. Hakim Nazar
Muhammad and another (1979 SCMR 52), Mirza Muhammad Saeed
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 11 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
Vs. Shahab-ud-Din and 8 others (PLD 1983 SC 385), Mst. Mahmooda
Begum and others Vs. Major Malik Muhammad Ishaq and others
(1984 SCMR 890), Raj Muhammad Vs. Mst. Chan Bibi and others
(1984 SCMR 1068), Rahim Bakhsh through Legal Heirs and others
Vs. Mst. Pathani through Legal Heirs and others (PLD 1985 SC 324),
Bashir Ahmad Vs. Government of the Punjab (1985 SCMR 333), Mian
Aizad Bakhsh Vs. Sheikh Muhammad Afzal (1985 SCMR 1003), Nek
Muhammad Vs. A.C. Jhelum and others (1986 SCMR 1493), Islam
Din Vs. Allah Nawaz and others (1988 SCMR 2), Manzoor Hussain
and 2 others Vs. Muhammad Ali and another (1989 SCMR 1498),
Chief Administrator of Auqaf Vs. Muhammad Ramzan (PLD 1991 SC
102), Ghulam Ali Vs. Akbar @ Akoor and another (PLD 1991 SC 957),
Muhammad Tufail Danish Vs. Deputy Director F.I.A. and another
(1991 SCMR 1841), Masud Ahmed and 2 others Vs. United Bank
Limited (1992 SCMR 424), Syed Haji Abdul Wahid and another Vs.
Syed Siraj ud Din (1998 SCMR 2296), Raja Karamatullah and 3
others Vs. Sardar Muhammad Aslam Sukhera (1999 SCMR 1892),
Idris Ahmed Rizwani Vs. Federal Public Service Commission through
Secretary (2000 SCMR 1889), Bashir Ahmed Vs. Muhammad Sharif
and 4 others (PLD 2001 SC 228), Mst. Khauda Begum and two others
Vs. Mst. Yasmeen and 4 others (PLD 2001 SC 355), Abdul Majeed and
another Vs. Ghulam Haider and others (2001 SCMR 1254), Monazah
Parveen Vs. Bashir Ahmad and 6 others (2003 SCMR 1300), Sheikh
Muhammad Saleem Vs. Faiz Ahmad (PLD 2003 SC 628), Rehman-ud-
Din and another Vs. Sahibzada Jehanzeb (2004 SCMR 418), Shujat
Ali Vs. Muhammad Riasat and others (PLD 2006 SC 140), Ghulam
Qadir Vs. Ghulam Fareed and others (2006 SCMR 984), Muhammad
Yousuaf and others Vs. Saeen Akhtar (2007 SCMR 1485), Atta
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 12 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
Muhammad Vs. Maula Bakhsh and others (2007 SCMR 1446), Lahore
Development Authority Vs. Mst. Sharifan Bibi and another (PLD
2010 SC 705), Dr. Syed Sibtain Raza Naqvi Vs. Hydrocarbon
Development and others (2012 SCMR 377), Mrs. Akram Yaseen and
others Vs. Asif Yaseen and others (2013 SCMR 1099), Mst. Gul Jan
and others Vs. Naik Muhammad and others (PLD 2012 SC 421), Dr.
Pir Muhammad Khan Vs. Khuda Bakhsh and others (2015 SCMR
1243), and Muhammad Wahid and another Vs. Nasrullah and another
(2016 SCMR 179).
7.
In Shah Muhammad’s case (supra) the Supreme Court
refused to condone the delay with reference to Sections 5 and 14 of the
Act and observed that:-
“……………Under that provision of law time can only be
excluded where proceeding has been prosecuted with due
diligence in good faith in a Court which, from defect of
jurisdiction, or other cause of a like nature, is unable to
entertain it. It is not disputed that in the present case the
appellant was pursuing his remedy before a Court of
competent jurisdiction. It was on his failure to get the
necessary relief that he had filed an appeal against the ex
parte decree passed against him.
……………Merely because by his own choice he did not file
an appeal against the original decree, it cannot be said that
there is sufficient cause within the meaning of section 5 of
the Limitation Act for not filing the appeal within time. The
appellant was not diligent. He could file an application
under Order IX, rule 13, C.P.C. and at the same time file an
appeal against the original ex parte decree. This aspect of
the question has been considered in several decisions
of the Indian High Court in pre-Partition days and
the consensus opinion is that where an application
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 13 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
under Order IX, rule 13, C.P.C. for setting aside on ex
parte decree failed on the merits, the time spent in
prosecuting the proceedings cannot be deducted under
section 5 for the proper time allowed for filling an
appeal………………”
(Emphasis supplied)
8.
In the case of Province of East Pakistan (supra) the Supreme
Court refused to condone the delay and on the point of sufficient cause
under Section 5 of the Act, observed as under:-
“As to the legal aspect of the question, namely; as to what
is or is not sufficient cause for the purposes of an
application under section 5 of the Limitation Act, it is
manifest that no hard and fast rule can be laid down nor it
is desirable that this should be done. Each case has to be
considered on its own facts. What may be sufficient in one
case may well not be sufficient in another case, but this
much is certain that where by lapse of time a valuable
right has accrued to the other side, it should not be
lightly taken away.
(Emphasis supplied)
This Court has furthermore repeatedly pointed out that in
an application under section 5 of the Limitation Act it is the
duty of the party seeking condonation to explain each day’
(sic day’s) delay, and unless this is done, the delay should
not be condoned particularly, where valuable rights have
accrued to the other sides (sic side).”
Where delay was committed by the government in filing of appeal, it was
the observation of the Supreme Court that:-
“This Court has also in several cases had occasion to point
out that so far as limitation is concerned the Government
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 14 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
cannot claim to be treated in any manner differently from
an ordinary litigant, because, of the fact that the
Government enjoys unusual facilities for the preparation
and conduct of their cases and its resources are much
larger. If in spite of these facilities the Government cannot
comply with the requirements of the law of limitation, then
it is for it to take steps to have that law changed and not to
ask the Courts to give a different interpretation to its
provisions. In this view of the matter, the High Court’s
decision in these two petitions is unexceptionable.”
9.
In Muhammad Nawaz’s case (supra) this Court did not accept
that counsel’s poor advice would be a ‘sufficient cause’ for condonation of
delay, and observed as under:-
“3.
Even if the above explanation is to be taken at its
face value, it would not constitute a sufficient cause for the
condonation of long delay that has taken place in the
instant case. The initial obligation was of the petitioners to
enquire about the decision in their appeal, or to arrange
with their counsel to inform them about the decision if it is
announced in their absence. Even if it be assumed that their
counsel neglected to inform them that per se would not be a
sufficient ground for condonation of delay, when a valuable
right has accrued to the respondents Nos. 1 to 3. We are not
satisfied that the petitioners were diligent or took due care
in the matter.
4.
The petition is dismissed as barred by limitation.”
10.
In the case of Ch. Muhammad Sharif (supra) when
considering an application for condonation of delay the High Court came
to the conclusion that delay could only be condoned if the mistake was
bona fide. The mistake was not found to be bona fide and wrong advice of
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 15 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
counsel was not accepted as a good ground for condonation of delay.
This Court refused to grant leave while observing as under:-
“We have heard the learned counsel at length and carefully
examined all the decisions referred to by him and have
come to the conclusion that this is a clear case in which the
learned Advocate showed gross lack of care and his failure
in such a case to acquaint himself with the relevant
provisions of the law relating to the jurisdiction of the
Courts amounted to negligence on his part.
The learned counsel has relied on the decision of the Privy
Council in Kunwar Rejendra Bahadur Singh V. Rai
Rajeshwar Bali (AIR 1937 PC 276) to support his contention
that action taken “in good faith on the advice of counsel
honestly given” is a sufficient cause for condoning delay.
The finding in that case was that the view taken by
appellants’ counsel was not unreasonable and he could not
be deemed to have been negligent in valuing the appeal.
The facts here are altogether different. The correct value
was known.
In the case of Nazar Muhammad V. Mst. Shahzada Begum
(PLD 1974 SC 22), this Court also followed the Privy
Council but again that was a case in which the wrong
period of limitation had been calculated even after
reference to a recognized textbook on the law of limitation.
There is no evidence here that the learned Advocate
concerned consulted any book or law on the point.”
11.
In Abdul Ghani’s case (supra) the petitioner filed an appeal
before the District Court which fell within the pecuniary jurisdiction of
the High Court. On return of the memorandum of appeal by the District
Court, the appeal was presented before the High Court but was
dismissed on the ground of limitation. This Court also dismissed the
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 16 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
petition without condoning the delay. While applying Section 18 of the
Civil Courts Ordinance, 1962 the Court held:-
“There is absolutely no ambiguity about this section. Even
a layman would be able to understand it without any legal
assistance whatsoever. But the petitioner claims to have
been advised by an Advocate and the appeal was filed by an
Advocate. Therefore, as the petitioner had himself valued
his claim in his suit at a sum far exceeding Rs. 25,000, it is
not possible to understand how any Advocate could have
advised the petitioner to file his appeal in the District
Court, and we find it difficult to believe that the petitioner
was misguided by legal advice, but if he was, then we have
to observe with regret that the petitioner’s Advocate acted
with gross negligence in filing the appeal in the District
Court.”
With regard to the argument that it was the respondent’s fault for not
objecting to the maintainability of the appeal the Court held that:-
“This extraordinary submission is based on the assumption
that defendants are under an obligation to give advice
about the manner in which claims against them are to be
prosecuted. Apart from the fact that this assumption is
against reason, submission is self-defeating because there
cannot be different standards for plaintiffs and defendants,
and if the petitioner was not at fault for filing his own
appeal in the wrong Court, by the same standard, the
respondent cannot be blamed for not objecting immediately
to what the petitioner did.”
It was further held that such act would not constitute a sufficient cause
in terms of Section 5 of the Act to hold that the same was beyond the
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 17 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
control of the parties concerned. The relevant portion of the judgment
reads as follows:-
“In any event, the conduct of other parties cannot help the
petitioner to make out sufficient cause under section 5 of
the Limitation Act. It is true that this section does not define
sufficient cause but the meaning of this expression is too
well known to need recapitulation, and we would only refer
here to the observations of Kaikaus, J. on this question in
Ata Ulla v. Custodian Evacuee Property (PLD 1964 SC
236). “Under section 5…there has to be a finding of
sufficient cause. In pre-partition India sufficient
cause had been defined as circumstances beyond the
control of the party and I do not know of any case
wherein this definition of sufficient cause had been
rejected”. We re-affirm these observations and we any (sic
may) explain here that the burden is on the appellant to
prove that his delay in filing his appeal was on account of
circumstances beyond his control, because, as observed by
Sir George Rankin in Kunwar Rajendra Bahadur Singh v.
Rai Rajeshwar Bali and others (AIR 1937 PC 276)…in
applying section 5 (of the Limitation Act)…the analogy of
section 14 (which applies only to suits) is an argument of
considerable weight.” Section 14 permits the exclusion of
time only for proceedings “prosecuted in good faith”,
therefore in order to make out sufficient cause under
section 5 an appellant must prove that he had acted in good
faith in presenting his appeal in the wrong Court. Good
faith has been defined in clause (7) of section 2 of the
Limitation Act as: “‘good faith’: nothing shall be deemed
to be done in good faith which is not done with due care
and attention.” Now if an appellant proves that he filed his
appeal in the wrong Court despite due care and attention it
means that the presentation of the appeal in the wrong
Court was on account of circumstances beyond his control.
No doubt, what such circumstances are must depend on the
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 18 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
facts and circumstances of each case, and in Kunwar
Rajendra Bahadur Singh’s case, Sir George Rankin set
aside the finding of the Chief Court that the appellant’s
Advocate had been very negligent in filing the appeal in the
wrong Court because the facts relevant to the question of
the Court in which the appeal was to be filed were very
complicated. Similarly, an appellant can bring his case
under section 5 if he can show that there is some ambiguity
in the law governing the forum in which the appeal is to be
filed. Or, to take another example, an appellant can rely on
section 5, if he can show that he was misguided by the
practice of the Court or by an erroneous judgment of the
Court. But, in the instant case, the provisions of section 18
of the West Pakistan Civil Courts Ordinance are plain
beyond any doubt and as there is also no complication
whatsoever about the facts relevant to the question of the
proper forum for filing the appeal, it is clear that the
presentation of the appeal in the District Court was an act
of gross negligence.”
(Emphasis supplied)
In relation to the argument that the act of the court shall prejudice none,
this Court held:-
“In order to overcome these self-induced difficulties the
petitioner has tried to throw the blame on the District Court
and on the respondent's Advocate. Thus, for example, he
has pleaded in his petition that it was the act of the
District Court “which contributed towards expiry of
limitation for filing appeal in the High Court”. We
were astonished by this plea and even more by the fact that
it was pressed because it is not Mr. Bilal's case that the
petitioner was an infant or a lunatic whose interests the
Court might have been under some duty to protect. But,
according to Mr. Bilal, the petitioner had been misguided
by the District Court because after admission the appeal
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 19 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
had been transferred from the Court of the District Judge,
Multan to that of an Additional District Judge, Multan,
therefore, the principle actus curiae nemonim (sic neminem)
gravalsit (sic gravabit) was attracted. The argument is
fallacious because the transfer from the Court of the
District Judge to that of an Additional District Judge was
by an administrative order and because this transfer was
after the petitioner had deliberately filed his appeal in the
wrong Court. And, in any case, the attempt to invoke the
principle actus curiae nemonim (sic neminem) gravalsit (sic
gravabit) assumes that the Court was under an obligation to
advise the appellant how to prosecute his remedies against
the respondent, we regret to say that this assumption is
against reason.”
(Emphasis supplied)
12.
In the case of Mst. Mahmooda Begum (supra) this Court
while considering the question of condonation of delay on account of time
consumed before a wrong forum within the purview of Section 5 of the
Act and on account of wrong advice of counsel held, as under:-
“……………..the appeal fails primarily for the reason that
it was not a case of ill-advice but extreme negligence on the
part of the counsel, who had filed the appeal before the
District Judge. A plain reading of section 18 of West
Pakistan Civil Courts Ordinance, 1962, should have made
it obvious to the counsel that any appeal whose valuation
exceeded Rs. 25,000 should have been filed in the High
Court. There was no room for any doubt as subsection (1)
(a) of section 18 is so clearly worded that it is not
susceptible to any other interpretation. The appeal was
valued at Rs. 46,000 and, therefore, there was no room for
any doubt as to the forum where it should have been
presented. It is a case of gross ignorance of the law on
the part of the counsel and as such it cannot be
regarded as an ill-advice, and for this reason if the
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 20 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
appellants have suffered they can seek redress against
their counsel, but this would not provide a reason for
condonation of delay.”
(Emphasis supplied)
13.
In Syed Haji Abdul Wahid’s case, the question of limitation
in the context of approaching a wrong forum was in issue. This Court
held as under:-
“15. From the preceding discussion, it emerges that the
ratio decidendi in Abdul Ghani v. Ghulam Sarwar has been
followed consistently. No doubt Abdul Ghani's case laid
down that an advice given by the counsel against a clear
provision of law would amount to gross negligence on the
part of counsel and any action taken on such advice would
not entitle the party to seek condonation of delay on the
ground that he bonafidely acted on that advice, but the
above rule laid down in Abdul Ghani's case did not exclude
.from its purview condonation of delay by the Court under
section 5 of the Limitation Act in a case where the appellant
is able to establish that he acted in good faith in pursuing
his appeal before the wrong Court, as is evident from the
above quoted passage from Abdul Ghani's case. Therefore,
notwithstanding,
the
fact
that
section
14
of
Limitation Act, in terms does not apply to
proceedings of an appeal, if the appellant is able to
establish that he followed the remedy before a wrong
forum in good faith, the Court may condone such
delay in filing of the appeal treating it as ‘sufficient
cause’ under section 5 of the Limitation Act. What
would constitute ‘sufficient cause’ in such cases
would depend on the facts and circumstances of each
case. At this stage, we may mention here that in a
later decision of this Court in the case of Sherin v.
Fazal Muhammad (1995 SCMR 584) a Bench of this
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 21 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
Court consisting of 3 Hon'ble Judges, without
referring to the decision in Abdul Ghani's case
expressed the view on the question, whether the delay
in pursuing remedy before a wrong forum visualized
under section 14, which applies to suit, could be
extended for condoning delay in filing the appeal
under
section
5
of
the
Limitation
Act,
as
follows...............
(Emphasis supplied)
(Note: Paras No. 4 to 6 of the Sherin case (supra) have been quoted
with approval in this case; however we shall consider/quote the Sherin
decision while discussing the situation that wrong advice does justify
condonation of delay).
14.
In the case reported as Dr. Syed Sibtain Raza Naqvi (supra)
this Court while refusing to condone the delay held as under:-
“8. On perusal of section 14 of the Act, it appears that time
spent in pursuing the proceedings before wrong appellate
forum, cannot be excluded, for the purposes of filing of an
appeal and in case appeal is barred by time the provision of
section 5 of the Act can only be invoked, that too, by
showing the sufficient cause.
9. The two expressions “due diligence” and “good faith” in
section 14 do not occur in section 5 of the Act which enjoins
only “sufficient cause”. The expressions “due diligence”
and “good faith” used in section 14 of the Act cannot be
equated with the expressions “sufficient cause” used in
section 5 of the Act. If it were so, the Legislature could have
used identical expressions in both sections particularly
when “good faith” has been defined in section 2(7) of the
Act. The power to condone the delay and grant an extension
of time under section 5 of the Act is discretionary, whereas
under section 14 of the Act, exclusion of time is mandatory
on the satisfaction of the condition prescribed in it.
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 22 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
10. The principle that appeal is continuity of original
proceeding before the appellate Court, as held in the cases
of Sherin v. Fazal Muhammad, (1995 SCMR 584) and
Tasneem Ismail v. Wafi Associates, (2007 SCMR 1464), is
of no help to the petitioner. The law of limitation takes away
the rights of parties, the same must be construed liberally,
but without any violation to the intent of legislature.
Limitation Act is to be read as a whole and its provisions
are to be construed harmoniously.
11. On reading Section 14 of the Act along with section
2(10), it appears that legislature specifically excluded the
appeal or an application from the purview of “Suit”. We
left no doubt in our mind that benefit of section 14 of the Act
cannot be extended to exclude the time consumed in
prosecuting an appeal before wrong forum having no
jurisdiction, for the purposes of filing an appeal before a
forum having jurisdiction.”
15.
In the case of Mst. Gul Jan (supra) many cases with different
facts were before this Court in which the main proposition was whether
in a case where an appeal lies before this Court and no such appeal has
been filed, this can Court entertain a petition seeking leave to appeal
under Article 185(3) of the Constitution. It was held by this Court, as
under:-
“We may conclude by observing that the practice of filing a
petition for leave to appeal before this Court under Article
185(3) of the Constitution where an appeal is competent
before this Court under Article 185(2) of the Constitution
or under any statute but has become barred by time
amounts to hoodwinking or deceiving the spirit as well as
the express provisions of Article 185(3) of the Constitution
and such practice must be brought to an end. It must be
made clear to all that if an appeal competent before this
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 23 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
Court has not been filed within the period of limitation
prescribed for filing of the same then the only remedy
available in that regard is to file a time-barred appeal and
seek extension of time or condonation of delay in filing of
the same in terms of rule 2 of Order XII or rule 1 of Order
XXII of the Supreme Court Rules, 1980. It must also be
made clear to all through this judgment that no petition for
leave to appeal filed under Article 185(3) of the
Constitution can be entertained by the office of this Court in
any case where an appeal is competent before this Court
under Article 185(2) of the Constitution or under any
statute and that no such incompetent petition for leave to
appeal, even if erroneously entertained by the office of
this Court can be converted into or treated as an
appeal except in the case of an incompetent petition
for leave to appeal filed within the period of
limitation for filing a competent appeal. As regards the
present appeals and petitions there is no denying the fact
that in all these cases appeals were competent before this
Court under Article 185(2) of the Constitution or under
some statute but the matters had been brought to this Court
in the shape of petitions for leave to appeal filed under
Article 185(3) of the Constitution at a time when the remedy
of appeal had become barred by time. All these petitions
thus
filed
were,
therefore,
incompetent
and
not
maintainable at the time of their institution.”
(Emphasis supplied)
16.
The summary of the above case law is as under:-
(i)
That condonation of delay can only be allowed within the
purview of Section 5 of the Act, when a case for sufficient
cause has been made out within the scope thereof;
(ii)
Wrong advice of the counsel per se does not constitute a
sufficient cause for condonation of delay;
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 24 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
(iii)
Section 14 of the Act is not attracted to appeals but is
confined to suits, etc. only; however the principles of the
section, such as due diligence and good faith can be resorted
to, in order to satisfy the condition of sufficient cause
postulated by Section 5;
(iv)
The rule of actus curiae neminem gravabit should not be
extended to give benefit to the litigant who, on account of
wrong advice by counsel, has approached an appellate forum
having no jurisdiction.
17.
We now consider various judgments cited by the counsel for
the parties or researched by our office for the proposition that in the
situation where a wrong forum of appeal has been approached time can
be condoned; they include Kunwar Rajendra Bahadur Singh Vs. Rai
Rajeshwar Bali and others (AIR 1937 PC 276), The Province of East
Pakistan Vs. Muhammad Hossain Mia (PLD 1965 SC 1), General
Secretary, P.W.R. Union (Workshop), Lahore Vs. The Registrar, Trade
Unions and others (PLD 1969 Lhr. 1080), Akbar Vs. Sadiq and others
(1972 SCMR 23), Nazar Muhammad and another Vs. Mst. Shahzada
Begum and another (PLD 1974 SC 22), Raja Muhammad Ayub and
others Vs. Muhammad Ijaz Khan and others (1982 SCMR 1105),
Muhammad Hasham Khan Vs. The Chairman, Baluchistan Service
Tribunal and others (PLD 1983 SC 262), Mrs. Zubaida Begum Vs.
Mrs. S.T. Naqvi (1986 SCMR 261), Sherin and 4 others Vs. Fazal
Muhammad and 4 others (1995 SCMR 584), Ali Muhammad Vs.
Muhammad Shafi (PLD 1996 SC 292), P.M. Amer Vs. Qabool
Muhammad Shah and 4 others (1999 SCMR 1049), Karachi Electric
Supply Corporation Ltd Vs. Lawari and 4 others (PLD 2000 SC 94),
Abdul Majeed and others Vs. Hameeda Bibi and 4 others (2002 SCMR
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 25 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
416), Muhammad Bashir Vs. Province of Punjab through Collector of
District Gujrat and others (2003 SCMR 83), Noora through L.Rs. Vs.
Ahmad (2005 SCMR 1933), Mst. Bas Khana and others Vs.
Muhammad Raees Khan and others (PLD 2005 Pesh 214), Mst. Farah
Naz Vs. Judge Family Court Sahiwal and others (PLD 2006 SC 457),
Abdul Majid and others Vs. Mst. Zubeda Begum and others (2007
SCMR 866), House Building Finance Corporation and others Vs. Syed
Muhammad Ali Gohar Zaidi (2007 PLC (C.S.) 870), National Bank of
Pakistan and others Vs. Shamoon Khan and others (2010 SCMR
1173), and Farman Ali Vs. Muhammad Ishaq and others (PLD 2013
SC 392).
18.
The brief facts of the case of Kunwar Rajendra Bahadur
Singh (supra) are, that the appellant (of the case) filed an application before
the Assistant Commissioner for partition which was dismissed; he
brought an appeal before the District Judge valued at Rs.1000/-. The
District Judge returned the memorandum of appeal for presentation to
the Chief Court. The memorandum of appeal along with an application
under Section 5 of the Act for condonation of delay was moved. The
application was dismissed and so was the appeal as being barred by
time. The Privy Council advised His Majesty that the appeal should be
allowed, the order and decree of the Chief Court be set aside, and the
appeal be remanded to the Chief Court for admission notwithstanding
that the period of limitation was exceeded. The Privy Council in view of
Sections 5 and 14 of Act, held as under:-
“6. The question of negligence being out of the way, their
Lordships are of opinion that the facts of the present case
disclose sufficient cause within the meaning of Section 5,
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 26 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
Limitation Act. They are of opinion that in applying
Section 5 to such a case as the present, the analogy of
Section 14 (which applies only to suits) is an
argument of considerable weight. Mistaken advice
given by a legal practitioner may in the circumstances
of a particular case give rise to sufficient cause within
the section though there is certainly no general
doctrine which saves parties from the results of
wrong advice. In the circumstances of this case the
respondents had very little reason to complain of the
delay and the bona fides and diligence of the
appellant cannot be impugned.”
(Emphasis supplied)
19.
In Nazar Muhammad’s case (supra) this Court held that:-
“The explanation of the respondent is that she was given
mistaken advice by a legal practitioner and, therefore, it
was a sufficient ground for condoning the delay. In support
of the respondents’ contention, Mr. Raja Muhammad
Anwar, learned counsel for the respondents, has relied on a
decision of the Privy Council in Kumar Rajendra Bahadur
Singh v. Rai Rajeshwar Bali and others (AIR 1937 PC 276).
It was held in that case that a mistaken advice by a counsel
may be considered to be a sufficient ground within section 5
of the Limitation Act for condoning the delay. There is no
counter-affidavit
by
the
appellants.
In
these
circumstances, we would accept the explanation of
the respondents and hold that there was sufficient
ground to condone the delay under section 5 of the
Limitation Act. Accordingly, the delay is condoned
and appeal is held to be within time.”
(Emphasis supplied)
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 27 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
20.
In the judgment rendered in the case of Muhammad
Hasham Khan (supra) a four member bench of this Court condoned the
delay in filing an appeal:-
“The legal question regarding application of section 5 of
Limitation Act where section 14 thereof did not apply in
terms is not difficult to understand in cases like the present
one. No doubt it was held in Shah Muhammad v. Ghulam
and another (1) that section 14 of the Limitation Act nor
section 5 thereof, could be attracted in that case ; (sic case;)
which involved filing of an appeal under section 96 of the
C.P.C. as also an application for setting aside an ex parte
decree under Order IX, rule 13 of C.P.C. But it cannot be
said that section 5 of the Limitation Act did not
apply because section 14 was not in terms applicable
to a particular proceedings. The underlying principles
would not ordinarily be excluded when considering a
case under section 5 of the Limitation Act……………”
(Emphasis supplied)
21.
The brief facts of Sherin’s case (supra) are that the
respondents sued the appellants for declaration and permanent
injunction and alternative relief for possession was also prayed for. The
suit was decreed on 21.2.1984. The appellants preferred an appeal in the
before the District Judge which was returned on 1.12.1985, for
presentation before the High Court, as the appeal was found to be
beyond the pecuniary jurisdiction of the District Judge. It was re-filed in
the High Court and dismissed through the judgment dated 26.6.1989 as
barred by time. This Court framed the following proposition at the time of
granting leave:-
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 28 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
“What should be the standard of care and diligence
required of appellants when preferring their appeals and
whether any duty is cast on the Court officials entertaining
the appeals to record objections as regards defect of
jurisdiction etc., and, if so, within what period of time.”
This Court discussed the criteria of “due diligence” under Section 14 of
the Act and keeping in view the illiteracy of the appellant and non-return
of appeal by the Court within a reasonable time held that:-
4.
The appellants' case is that they entrusted the case
to their learned counsel, who after completion of the file,
instituted the same in the Court of the learned District
Judge; that the appellants themselves were not posted with
the knowledge of the provisions of law as to the pecuniary
jurisdiction of the District Judge to entertain the appeal;
and they wholly depended on their counsel. The delay has
been thus, sought to be excused on the plea that the appeal
was instituted in the District Court on the mistaken advice
of the counsel. In order to plead that the latter was not
negligent, it has been asserted that the value of the suit for
the purposes of the court-fee and jurisdiction was neither
incorporated in the decree sheet nor explicitly shown in the
judgment of the trial Court. Conversely, the learned counsel
for the respondents has dubbed it a case of gross
negligence on the part of the appellants and their counsel,
and added that the mistaken advice of the counsel cannot
furnish a good ground for condonation of delay.
5.
Diligence is a state of human conduct. What should
be the standard for assessing the behaviour of an appellant
to style him as diligent. Because of fluidity of the notion of
diligence, it is difficult to set up a precise yardstick.
Whether or not litigant has acted diligently and with care,
would differ from case to case. Speaking broadly, a person
may be said to have acted diligently, when he has informed
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 29 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
himself of all relevant factors, taken all obvious steps and
precautions, characterized by a degree of effort, as in a
given situation, a reasonable person would do. But, the
epithet of “reasonable”, opens wide the measure of
application of this yardstick, on the factual plane, for the
word “reasonable” is not susceptible of any precise
definition. Etymologically, it signifies according to reason,
which expression itself is open to difference of opinion.
Whether or not a person has acted diligently, in ultimate
analysis, would depend on the circumstances of each case
and cannot be determined on the foundation of any judicial
syllogism.
6.
The criterion of “due diligence” for enlargement of
time is prescribed by section 14 of the Limitation Act, which
upon its terms applies only to the suits and applications and
not to the appeals. On the other hand section 5 is
applicable to the appeals but it does not apply to suits. The
question of condonation of delay, therefore, has to be
examined on the basis of section 5 and not section 14 of the
Limitation Act. Not unoften, while examining the question
of condonation of delay, in filing the appeal, the Courts
have been invoking the principles underlying section 14 of
the Act. The High Court has declined to condone the delay
entirely on the touchstone of section 14. It is, however, to be
remembered that expression “due diligence” and “good
faith” appearing in section 14 do not figure in section 5.
The condition prescribed in the latter section for its
applicability is “sufficient cause” but what is sufficient
cause is not capable of connotation, with exactitude and
would differ from case to case. We may observe that filing
of appeal in a wrong Court on account of mistaken advice
tendered by the counsel canvassed on behalf of the
appellants for condonation of delay by itself would not
attract section 5 but when the litigant and the counsel have
acted with due care and caution and their conduct does not
smack of negligence, the institution of the appeal in the
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 30 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
wrong forum may constitute a “sufficient case” (sic cause)
within the meaning of section 5 for condonation of the
delay.”
About the act of the Court while considering the quantum of delay it was
held:-
“14.
The stage is now set down to evaluate the effect of
the learned District Judge’s failure in returning the
memorandum of appeal to the appellants with reasonable
dispatch. It is correct that the appellants themselves were at
fault, in filing the appeal in the District Court, which was
not possessed of the pecuniary jurisdiction to hear it. But,
let the appellants’ mistake be there, a searching question
needs to be asked had the learned District Judge, no reason
to look into the existence or otherwise of the jurisdictional
facts upon which the entertaining of the appeal by him was
dependent, though not in depth, but at least prima facie;
through a preliminary enquiry confined only to the cursory
examination of the record before him. We are unable to
show him any indulgence, in this regard. We are sure had
he glanced through the record, the agony of the appellants
would not have prolonged. In Hari Ram v. Akbar Hussain
(ILR 29 All. 749) a Full Bench of the Allahabad High Court
had the occasion to adjudicate upon the defendants’
objection in a pre-emption suit that mistake in court-fee by
a party is not covered by section 28 of the Court Fees Act,
1870, and it applied only when a document not properly
stamped, was received and used by the Court or Office by
mistake or inadvertence. The objection was repelled with
the observations which are quite instructive:--
“The mistake may in its origin be the mistake of the
plaintiff; by the time the plaint has been registered,
the mistake has become the mistake of the Court. If
the Court or the Munsarim discovered the plaintiff’s
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 31 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
mistake before registration of the plaint, the plaint
would at once be rejected under section 54 of the
Code of Civil Procedure and never registered at
all.”
We feel that omission on the part of learned District
Judge to take timely action is the major cause of
refiling of the appeal by the appellants, in the High
Court, out of time. They have been the victim of the
act of the Court which furnishes “sufficient cause”
under section 5 of the Limitation Act, for condonation
of
delay.
The
fact
that
after
receiving
the
memorandum of appeal from the District Court, some
time was consumed by the appellants, in presenting it
to the High Court, in the circumstances of the case is
inconsequential. We are, therefore, inclined to
condone the delay in presenting the memorandum of
appeal to the High Court.”
(Emphasis supplied)
22.
In the case of Karachi Electric Supply Corporation Ltd
(supra) the brief facts are that the suit which was valued at more than
Rs.50,000/-, was decreed. An appeal was filed before the District Judge.
Ultimately, the memorandum of appeal was returned and was presented
before the High Court, which was dismissed on the point of limitation.
This Court condoned the delay and while analysing Sections 5 and 14 of
the Act held as under:-
“4.
The view taken by this Court that, despite section 14
of the Limitation Act, if appellant is able to establish that he
followed the remedy before a wrong forum in good faith
with due care and caution, the Court may condone such
delay in filing of the appeal treating it as sufficient cause
under section 5 of the Limitation Act is confirmed, but we
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 32 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
may also reiterate that filing of an appeal in a wrong
Court on account of mistaken advice tendered by the
counsel for condonation of delay by itself would not
attract section 5 as held in Sherin v. Fazal
Muhammad (supra).”
(Emphasis supplied)
On the point of mistaken advice of the counsel, it was held by this Court,
as under:-
“This Court made it clear in the case of Sherin v. Fazal
Muhammad (supra) that filing of an appeal in a wrong
Court on account of mistaken advice tendered by the
counsel canvassed on behalf of the appellant for
condonation of delay by itself would not attract section 5 of
the Limitation Act, but when the litigant and the counsel
have acted with due care and caution and their conduct
does not smack of negligence, the institution of the appeal
in the wrong forum may constitute sufficient cause within
the meaning of section 5 for condonation of delay.”
23.
In Abdul Majid’s case (supra) the question involved was
whether the time spent in filing and pursuing a review petition
constituted a “sufficient cause” for condonation of delay in filing an
appeal. This Court discussed “sufficient cause” and observed that:-
“The existence of “sufficient cause” is sine qua non for
condonation of delay. Insofar as ‘sufficient cause” is
concerned neither it can be defined precisely nor a specific
yardstick can be fixed for its determination as it varies from
case to case. It can, however, be said with certainty that
every cause for condonation of delay cannot be equated
with that of “sufficient cause” which in our view amounts to
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 33 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
cogent reasoning, convincing justification and satisfactory
explanation.”
The Court considered the criterion of “due diligence” as elaborated in
Sherin’s case (supra) with reference to Sections 5 and 14 of the Act and
held as under:-
“The case in hand has been examined on the touchstone of
the criterion as mentioned hereinabove and we are of the
view that since valuable rights have been accrued in favour
of respondents it cannot be snatched on the ground that a
review petition was filed in good faith as appeal could have
been filed conveniently. In other words the respondents
should not be deprived of the valuable rights which they
have acquired due to the laches and negligence of the
appellants. In this regard we are fortified by the dictum as
laid down in Rehmatullah v. Ulas Khan 1968 SCMR 975;
Abdul Hamid v. Chief Settlement Commissioner, Lahore
1968 SCMR 120; Rahim Bux v. Settlement Authorities 1968
SCMR 78 and Ahmad Din v. Mst. Rasool Bibi 1968 SCMR
843.”
24.
In the case of House Building Finance Corporation with
reference to the jurisdiction of a service tribunal to condone delay and
the applicability of Sections 5 and 14 of the Act, it was observed by this
Court as under:-
“10.
We have given our anxious thought to the
submission of the learned counsel. Technically speaking, he
may be correct that the provisions of section 14 (ibid) are
restricted to suits, the fact remains that the broad principles
of this provision can always be extended to proceedings of
civil nature before a Court or Tribunal with a view to
secure the ends of justice and to suppress the mischief.
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 34 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
………………In any event, the Tribunal having condoned
the delay by exercise of its discretion, this Court is always
slow and reluctant to interfere with the exercise of
discretion in the absence of extraordinary circumstances.
We would, therefore, repel the contention of the learned
counsel for the Corporation that appeal preferred before
the Tribunal should have been dismissed as barred by
time.”
25.
The summary of the above case law is:
(i)
In some of the judgments, the appeal has been treated as
continuation of the suit and it has been held that the
provisions of Section 14 ibid would be attracted per se;
(ii)
In another sub-set of these judgments it has been held that
though section 14 ibid would not apply per se but the
principles prescribed therein would be taken into account by
the court for the purposes of determining sufficient cause
in terms of Section 5 of the Act;
(iii)
Another view if that the institution of the appeal before a
wrong forum may constitute sufficient cause on the
touchstone of Section 5, independent of Section 14;
(iv)
On account of entertainment of appeal by the court staff or
where the court itself entertains the same, issues pre-
admission notice(s) or admits it for regular hearing, the rule
of actus curiae neminem gravabit shall be attracted and on
this score the time spent before the wrong appellate forum
shall be condoned.
26.
We now move on to consider judgments from the Indian
jurisdiction. In the case of Ramlal and anothers Vs. Rewa Coalfields
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 35 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
Ltd. (AIR 1962 SC 361) while expressing its view on applications made
under Section 14 of the Act held as under:-
“In dealing with such applications the Court is called upon
to consider the effect of the combined provisions of
Sections 5 and 14. Therefore, in our opinion,
considerations which have been expressly made material
and relevant by the provisions of S. 14 cannot to the same
extent and in the same manner be invoked in dealing with
applications which fall to be decided only under Section 5
without reference to S. 14.
(Emphasis supplied)
27.
The question involved in the judgment reported as Mata Din
Vs. A. Narayanan (AIR 1970 SC 1953) was whether delay can be
condoned under Section 5 of the Act on the ground of mistake of
counsel. The Supreme Court answered the said question in the following
terms:-
“The law is settled that mistake of counsel may in certain
circumstances be taken into account in condoning delay
although there is no general proposition that mistake of
counsel by itself is always a sufficient ground. It is always a
question whether the mistake was bona fide or was merely a
device to cover an ulterior purpose such as laches on the
part of the litigant or an attempt to save limitation in an
underhand way.”
28.
In the judgment reported as State of Kerala Vs. Krishna
Kurup Madhava Kurup (AIR 1971 Ker 211) the High Court of Kerala
while referring to Mata Din’s case (supra) held:-
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 36 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
“I am of the view that legal advice given by the members of
the legal profession may sometimes be wrong even as
pronouncement on questions of law by courts are sometimes
wrong. An amount of latitude is expected in such cases for,
to err is human and lay men, as litigants are, may
legitimately lean on expert counsel in legal as in other
departments, without probing the professional competence
of the advice. The court must of course, see whether, in such
cases there is any taint of mala fides or element of
recklessness or ruse. If neither is present, legal advice
honestly sought and actually given, must be treated as
sufficient cause when an application under Section 5 of the
Limitation Act is being considered. The State has not acted
improperly in relying on its legal advisors.”
29.
The case of M/s. Concord of India Insurance Co. Ltd. Vs.
Smt. Nirmala Devi and others (AIR 1979 SC 1666) entailed the facts in
that the petitioner filed an appeal before the High Court beyond the
period of limitation due to mistake in calculation of the period of
limitation by the petitioner’s counsel. The Indian Supreme Court while
citing with approval the view expressed in the case of State of Kerala
(supra) held that:-
“A company relies on its Legal Adviser (sic Advisor) and
the Manager’s expertise is in company management and not
in law. There is no particular reason why when a company
or other person retains a lawyer to advise it or him on legal
affairs reliance should not be placed on such counsel. Of
course, if there is gross delay too patent even for layman or
if there is incomprehensible indifference the shield of legal
opinion may still be vulnerable.”
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 37 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
30.
In the judgment reported as Badlu and another Vs. Shiv
Charan and others [(1980) 4 SCC 401] the Supreme Court was of the
following view:-
“There could be no doubt that if the appellants filed an
appeal before the Additional District Judge due to a mistake
of law or fact resulting from a bona fide but mistaken
advice given to them by their lawyer, this would be a good
ground for condoning the delay. Moreover, it is well settled
that if a litigant is pursuing a bona fide civil proceeding
with due diligence and in good faith in any appeal or
revision he is entitled to the exclusion of the time taken in
such proceeding. The combined effect of Sections 5 and 14
of the Limitation Act would, therefore, undoubtedly entitle
the appellants to exclude the time taken by them while the
appeal was pending before the Additional District Judge.”
31.
In the case of Ghasi Ram and others Vs. Chait Ram Saini
and others [(1998) 6 SCC 200] the Supreme Court held that:-
“No doubt, when a party proceeds contrary to a clearly
expressed provision of law, it cannot be regarded as
prosecuting the other civil proceeding in good faith. It is
based on sound principle of law. But the said rule cannot be
enforced in rigidity in every case. Each case has to be
judged on its own merits……………If, on examining the
facts, it is found that there was no lack of due care, there is
no reason why the plaintiff-appellant should not be
accorded the benefits of Section 14 of the Act. Does the
interest of justice demand that the plaintiff should be
refused the benefit of Section 14 of the Act on account of the
negligence on the part of his counsel, ill-advising him to file
a revision instead of filing a fresh suit? An illiterate litigant
cannot be made to suffer when he is ill-advised by his
counsel.”
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 38 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
32.
In Consolidated Engineering Enterprises Vs. Principle
Secretary, Irrigation Department and others [(2008) 7 SCC 167] the
Supreme Court held:-
“While considering the provision of Section 14 of the
Limitation Act, proper approach will have to be adopted
and the provisions will have to be interpreted so as to
advance the cause of justice rather than abort the
proceedings. It will be well to bear in mind that an element
of mistake is inherent in the invocation of Section 14. In
fact, the section is intended to provide relief against the bar
of limitation in cases of mistaken remedy or selection of a
wrong forum. On reading Section 14 of the Act it becomes
clear that the legislature has enacted the said section to
exempt a certain period covered by a bona fide litigious
activity……………The principle is clearly applicable not
only to a case in which a litigant brings his application in
the court, that is, a court having no jurisdiction to entertain
it but also where he brings the suit or the application in the
wrong court in consequence of bona fide mistake or (sic of)
law or defect of procedure. Having regard to the intention
of the legislature this Court is of the firm opinion that the
equity underlying Section 14 should be applied to its fullest
extent and time taken diligently pursuing a remedy, in a
wrong court, should be excluded.”
33.
In the case of J. Kumaradasan Nair & Anr. Vs. IRIC Sohan
& Ors. (AIR 2009 SC 1333) the Supreme Court while referring to the
cases of Ghasi Ram (supra) and Consolidated Engineering Enterprises
(supra) held as follows:-
“12.
The question which arises for consideration is as to
whether only because a mistake has been committed by or
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 39 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
on behalf of the appellants in approaching the appropriate
forum for ventilating their grievances, the same would
mean that the provision of sub-section (2) of Section 14 of
the Limitation Act, which is otherwise available, should not
be taken into consideration at all. The answer to the said
question must be rendered in the negative. The provisions
contained in Sections 5 and 14 of the Limitation Act are
meant for grant of relief where a person has committed
some mistake.
The provisions of Sections 5 and 14 of the
Limitation Act alike should, thus, be applied in a broad-
based manner. When sub-section (2) of Section 14 of the
Limitation Act per se is not applicable, the same would not
mean that the principles akin thereto would not be applied.
Otherwise, the provisions of Section 5 of the Limitation Act
would apply. There cannot be any doubt whatsoever that
the same would be applicable to a case of this nature.
13.
There cannot furthermore be any doubt whatsoever
that having regard to the definition of ‘suit’ as contained in
Section 2(l) of the Limitation Act, a revision application
will not answer the said description. But, although the
provisions of Section 14 of the Limitation Act per se
are not applicable, in our opinion, the principles
thereof would be applicable for the purpose of
condonation of delay in filing an appeal or a revision
application in terms of Section 5 thereof.”
(Emphasis supplied)
34.
Having discussed in detail the case law pertaining to the
propositions at hand from the sub-continent, we proceed to a
resolution of the said propositions.
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 40 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
Question No.1:- Whether Section 14 of the Act applies to appeals and if not, whether
the principles enshrined therein (Section 14) can be made applicable while considering
if a sufficient cause has been made out under Section 5 of the Act.
35.
In the preponderance of the cases cited above it has been
categorically held that the application of Section 14 ibid is restricted to
suits and the provision shall not be attracted to appeals. However the
ratio of some cases is that because an appeal is the continuation of
a suit therefore on the basis thereof the section can be extended to
appeals. But there are catena of judgments (which are cited by both the sides and
also researched by our office) propounding the view that although Section 14
has no direct application to appeals the principles enshrined therein can
be taken into consideration by the courts while deciding whether a
sufficient cause for condonation of delay has been established in terms
of Section 5. As per the salutary rule of interpretation of statutes, for
construing a provision/section the ordinary dictionary meaning should
be assigned to a word/expression appearing therein; however if such
word/expression has been defined in the statute itself it should be given
the same restrictive meaning. From the word the “suit” which appears in
Section 14, it is abundantly clear that the said section applies to suits
and there is no mention of appeal or revision etc. “Suit” has been
defined in Section 2(10) of the Act (definition clause) as:-
“2(10)
“suit” does not include an appeal or an
application:”
Thus from a plain reading there is no ambiguity that Section 14 is
exclusively and solely restricted to suits and suits alone. If it is taken to
apply to appeals also, this would be tantamount to reading into the
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 41 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
section the word “appeal” which does not appear in the said section and
such a reading would be contrary to the definition of the word “suit” in
the statute. It is not permissible in law to defeat the express provisions of
law by resorting to any rule of interpretation which would have the
convoluted effect of rendering an appeal a continuation of the suit for the
purposes of attracting the application of Section 14. Besides as per the
rule of casus omissus, the courts are not entitled to read words into an
Act of Parliament unless clear reasons for it are found within the four
corners of the Act itself.19 In the instant case we do not find any such
reasons. It may pertinent to state here that while referring to Section
2(10) ibid it was held in the judgment of this Court reported as Dr. Syed
Sibtain Raza Naqvi (supra), that:-
“11.
On reading Section 14 of the Act along with section
2(1), it appears that legislature specifically excluded the
appeal or an application from the purview of “Suit”. We
left no doubt in our mind that benefit of section 14 of the
Act cannot be extended to exclude the time consumed in
prosecuting an appeal before wrong forum having no
jurisdiction, for the purposes of filing an appeal before a
forum having jurisdiction.”
This is an apt expression of law and the judgments of this Court which
provide to the contrary (that the provisions of Section 14 are applicable to appeals) are
per incuriam because in none of those cases was Section 2(10) ibid
noticed or its effect considered. Thus our candid and firm opinion is that
the application of Section 14 is restricted to suits only and has no direct
and independent application to cases where an appeal has been filed
before a wrong forum.
19 (1910) 79 LJKB 955 and AIR 1980 SC 485.
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 42 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
36.
Coming to the second part of this question; whether the
principles of Section 14 ibid can be resorted to for the purposes of
determining sufficient cause. We have given due and thoughtful
consideration to all three views and are of the opinion that for the
purposes of determining whether sufficient cause for condonation of
delay is made out, no hard and fast rule can be laid down; there cannot
and should not be a simple test for determining the same. The
establishing of sufficient cause is not amenable to mathematical
formulae. Courts are called upon in individual cases to apply their
judicial faculties to the facts placed before them and weigh the same in
order to decide whether that ephemeral threshold has been crossed
which means that the petitioner has convincingly established sufficient
cause for condonation of delay. This is the reason that in the precedent
case law, the superior courts have held that it would be unwise and
unadvisable to state for all times to come that what may or may not
constitute a sufficient cause; each case ought to be decided on its own
merits vis-à-vis the plea of sufficient cause. For the purposes of
determining whether in a given case sufficient cause has been made out
when an appeal has been filed before a wrong forum, there does not
seem to be any bar in law that the conditions or the limitation prescribed
by Section 14 ibid cannot be looked into. However as stated later, while
attending to question No.2, the conditions laid down in the section must
be satisfied and established on the record. Mr. Gulzarin Kiyani also
adopted this position and he has relied upon the case of Ramlal, Motilal
and Chhotelal (supra) in this regard. Mr. Malik Muhammad Qayyum
appearing for the other side which pleaded in favour of the proposition
that time should not be condoned, has refrained from adopting the
position that the principles of Section 14 cannot be resorted to at all.
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 43 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
Only Mr. Munir Piracha has adopted such a stance but we are not
persuaded to agree with him for the reason that the term sufficient cause
has to be given the widest possible amplitude and in so doing the
conditions/principles of Section 14 ibid cannot be left out.
Question No.2:- Whether the institution and the pendency of the appeal on the wrong
advice of the counsel before a wrong forum i.e. one lacking jurisdiction constitutes a
sufficient cause for condonation of delay in terms of Section 5 supra.
37.
The purpose of the laws of limitation is to establish certainty
in the affairs of men, to bring repose and to bring an end to litigation
after a certain time period has expired from accrual of an actionable
right. Both Sections 5 and 14 of the Act are exceptions to the laws of
limitation. A person claiming under the aforesaid exceptions must
establish that he or she is not disentitled to the discretionary relief which
may be awarded by the Court. Therefore a claimant seeking condonation
of delay must explain the delay of each and every day to the satisfaction
of the Court, establish that the delay was caused by reasons beyond the
person’s (or counsel’s) control and that he was not indolent, negligent or
careless in initiating and pursuing the actionable right which had
accrued in his favour. The “borrowed” applicability of the provisions of
Section 14, where its principles are taken into account to set the
standard for sufficient cause, proceeds on the conditions precedent of
due diligence and good faith which must be present before the court
grants condonation of delay on the basis of time spent before wrong fora;
even if such principles are not taken into consideration the court is not
supposed to exercise its discretion in any arbitrary, whimsical and
fanciful manner but has to see if a case was made out by the appellant
which prevented and precluded him from approaching the right forum of
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 44 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
appeal. The overwhelming case law cited in the earlier part of this
opinion concludes that the institution and the pendency of an appeal
before a wrong forum on counsel’s wrong advice i.e. one having no
jurisdiction does not constitute a sufficient cause for condonation of
delay in terms of Section 5 of the Act, but there is considerable case law
that supports the contrary view. In my opinion, the gulf betwixt the
divergent views must be bridged by employing proportionality and
balancing. It can neither be held that condonation is absolutely ruled out
in such a situation nor that the appellant shall be entitled to
condonation as a matter of course and right, rather the Court must look
into the facts and circumstances of each case as to whether sufficient
cause has been made out. Because any exercise of discretionary
jurisdiction in favour of a person seeking relaxation of the application of
the laws of limitation as of right etc. would be prejudicial to the interests
of the respondent. A valuable vested right accrues in favour of the
respondent the moment a relevant period of limitation expires in that the
respondent is then free from the hanging sword of an actionable claim. In
order to wrest away this valuable right from a respondent the person
seeking condonation of delay must establish sufficient cause. However,
sufficient cause is a term wide enough to encompass within it the
principles enshrined in Section 14 of the Act or indeed independent
thereto. Time spent pursuing an appeal before a wrong forum, in good
faith and with due diligence ought in our view to constitute sufficient
cause for condonation of delay. But the act of approaching a wrong
forum must be accounted for: it should be established that due to some
honest, bona fide and genuine ambiguity in the law or in fact, a party or
his counsel was led astray in terms of approaching a wrong forum. Mere
incompetence of the counsel, inadvertence, negligence or ignorance of
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 45 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
law attributable to him and/or overlooking of the record by the counsel
cannot constitute sufficient cause ipso facto, but the factor(s) which
misled the legal counsel, including any ambiguity in the law, causing
him to file the appeal before the wrong forum must be indicated. Mere
wrong advice of counsel is not an adequate ground per se to constitute
sufficient cause because if this rule is accepted, the centuries tested rule
that ignorance of law is no excuse would stand violated. Besides, the
above factors which caused ambiguity and misled the appellant (or his
counsel as the case may be) have to be stated with clarity and precision in the
application for condonation of delay and proved on the record.
38.
We are cognizant of the fact that a client is at a disadvantage
with reference to a counsel on account of asymmetric information. There
may be instances where there is a different period of limitation applicable
to different fora of appeal, and an appellant whose appeal is time barred
before an appropriate forum may instead deliberately approach another
forum (knowing it to be the wrong forum) in order to lay claim that time spent
before a wrong forum ought to be condoned on account of the fact that
appellant had approached it (forum) on the advice of counsel. All Courts
must keep these considerations in mind when deciding whether or not
delay caused by virtue of alleged wrong advice by counsel should be
condoned. Though legal counsel are professionals of some learning who
are required to be au fait with the basics of law in terms of where to file
an action, we are deeply conscious of the fact that at times certain
counsel may unwittingly mislead litigants. Poor advice by a counsel may
well cause hardship to a litigant and compromise his ability to seek
redress in law. But hardship caused to a person on account of poor
advice of counsel does not constitute a sufficient cause for condonation
of delay per se. Courts must insist that applications for condonation of
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 46 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
delay must specify with particularity as to what factors misled the
counsel and gave him cause to form his unfortunate opinion with respect
to the (wrong) forum adopted and thereafter the said factors must be
proved on record. It is then for the court to decide if, on the basis of such
factors, sufficient cause has been made out or not. A case in point which
could possibly constitute sufficient cause is where whilst drawing the
decree, the trial court on account of some clerical inadvertence/omission
gives a valuation different from the actual valuation for the purposes of
appeal, due to which a counsel is misled into believing that the appeal
should be filed in the court as per the valuation in the decree sheet,
which is in fact incorrect.
Therefore we are fortified in our view that mistaken advice of
counsel does not constitute a sufficient cause for condonation of delay as
a matter of course and routine and/or is automatic and per se, rather as
mentioned above, the appellant has to specify the reasons with clarity
and precision which prevailed with the counsel and led him to commit
the mistake and such application must also be supported by an
affidavit.
Question No.3:- Where an appeal which has been entertained by the staff of the court
or the court itself which has no pecuniary jurisdiction and is ultimately returned to the
appellant or is dismissed, whether this protects the appellant from the bar of limitation
and/or constitutes a sufficient cause for the condonation of delay on the principle of
actus curiae neminem gravabit.
39.
The noted maxim which connotes “an act of the court shall
prejudice no man” is founded upon justice and good sense; and affords
a safe and certain guide for the administration of law and justice. It is
meant to promote and ensure that the ends of justice are met; it
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 47 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
prescribes that no harm and injury to the rights and the interest of the
litigants before the court shall be caused by the act or omission of the
court. This rule of administration of justice is meant for the benefit of
both sides of litigants before the court and it would be illogical to
conceive that the rule would or should be applied for the advantage of
one litigant to the prejudice and disadvantage of the other. It is the duty
of the court to act as a neutral arbiter between the parties and to provide
justice to them through strict adherence to law and keeping in mind the
facts of each case. The rule is neither meant to provide a premium to the
negligent litigant who finds himself on the wrong side of limitation for
unfounded reasons and nor to impair the rights of the other side. The
principles of proportionality and balancing have to be kept at the
forefront by the court whilst applying this rule. The Court must see
what fault, if any, has been committed by the court on account of which
a litigant has been made to suffer; then the court must consider
whether the benefit of the rule can or should be extended to a negligent
litigant who has failed to make out a sufficient cause in terms of Section
5 of the Act as explained above. In our candid opinion the principle actus
curiae neminem gravabit has no application where a litigant approaches a
wrong forum and such appeal is entertained by the staff of the court or
by the court or even admitted to regular hearing. Thus no condonation of
delay can be availed by the appellant on the basis of this principle.
Question No.4:- Whether the discretion exercised by the courts below in condoning the
delay cannot be interfered with by the higher court unless the discretion is shown to
have been exercised arbitrarily.
40.
Discretion exercised by a court below is not open to
interference by a higher court unless it has been exercised arbitrarily. In
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 48 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
the case of Muhammad Bashir (supra) this Court upheld the condonation
of delay by the High Court in terms of Section 5 of the Act in the
following terms:-
“On a careful consideration of the pros and cons of the
controversy between the parties and in-depth consideration
of the submissions advanced at the Bar, we are firmly of the
view that exercise of discretion in the case in hand does not
suffer from any inherent defect of law, arbitrariness, lack of
jurisdiction or acting on surmises and conjectures. Suffice
it to point out that the High Court was fully satisfied with
the sufficiency of cause shown by the respondents for
condonation of delay for vital and sound reasons. We are,
therefore, not inclined to interfere with the exercise of
discretion by the High Court, which is neither illegal nor
unreasonable or against the settled norms of jurisprudence.
For these reasons, this appeal fails and is hereby
dismissed.”
Similarly in the case of Province of East Pakistan (supra) this Court
held:-
“…………..It lies, in the discretion of the High Court to
condone or not to condone the delay under section 5 of the
Limitation Act. With such a discretionary order this Court
does not ordinarily interfere unless it is satisfied that the
discretion has been exercised arbitrarily, whimsically
or perversely or in such a manner as to divert the
law into wrong channels……………”
[Emphasis added]
41.
We find ourselves in complete agreement with such
statements of law. In the exercise of its discretionary power the court is
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 49 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
not empowered to act upon whim and caprice: rather the discretion of
the court is circumscribed by the law, recognized norms of justice,
fairplay, equity, logic, rationality and reasonableness. Where the Court
has passed an order in exercise of its discretion by condoning the delay,
on the basis of sufficient cause which has been made out, it does not
behove a superior court to interfere in the matter, however the unbridled,
arbitrary and perverse exercise of discretion does not render it immune
to the scrutiny and correction by the superior court; thus where no
sufficient cause on record has been made out yet the discretion for the
condonation of delay is exercised subjectively and whimsically it is the
duty of the superior court to rectify the defect in the exercise of
discretion. Such duty is duly mandated by the provisions of Section 3 of
the Act.
42.
Having answered the legal propositions involved in the
matter, we now examine each case on the touchstone of our answers to
the propositions.
Civil Appeal No.2564/2001
43.
The relevant facts of this case are that the predecessors-in-
interest of the appellants, namely Khushi Muhammad and Muhammad
Ashiq (defendants in the suit) purchased the suit property through a registered
sale deed dated 10.5.1976 from Mst. Haleema Begum (vendor) for
consideration of Rs.100,000/-. The predecessor-in-interest of the
respondents, Allah Din (plaintiff in the suit) filed a suit against Khushi
Muhammad etc. for possession through pre-emption on 11.5.1977 in the
Civil Court, being an owner in the estate. The plaintiff contended that the
sale actually took place against a consideration of Rs.90,000/- but it was
shown as Rs.100,000/- in the sale deed to frustrate his right of pre-
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 50 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
emption. Moreover, the suit for the purposes of pecuniary jurisdiction
was valued at Rs.90,000/-. The defendants filed a written statement
wherein they claimed to have a superior right of pre-emption, being
tenants of the suit land. After framing of issues and recording of
evidence, the suit was dismissed by the learned Trial Court on 18.2.1985
on the ground that the plaintiff had failed to establish a superior right of
pre-emption. The appeal filed by the plaintiff before the District Court on
(or about) 25.3.1985 was accepted by the Appellate Court vide judgment
and decree dated 7.9.1985 and the suit of the respondent was decreed.
The defendants filed a regular second appeal (RSA) on 14.9.1985 before
the learned High Court which was accepted vide judgment dated
23.12.1992 with the observation that the Additional District Judge was
not vested with the pecuniary jurisdiction to decide the matter and it was
directed that the memorandum of appeal which was originally filed on
25.3.1985 be returned to the plaintiff by the learned Additional District
Judge to be presented before the proper forum. Pursuant to the
judgment dated 23.12.1992, the memorandum of appeal was returned to
the respondent on 2.2.1993 by the Court of the Additional District
Judge. The plaintiff resubmitted the same before the District Judge on
the same day i.e. 2.2.1993, because during the pendency of the appeal,
on 14.6.1986 Section 18(1)(a) of the Civil Courts Ordinance, 1962
(Ordinance) was amended and the pecuniary jurisdiction of the District
Court was enhanced from Rs.50,000/- to Rs.200,000/- and it was in this
background that the appeal was again entertained by the District Court.
This fresh filing of the appeal was supported by an application under
Sections 5 and 14 of the Act for condonation of delay. Meanwhile, the
respondents (legal heirs of Allah Din, the plaintiff) also filed a petition challenging
the order of the learned High Court dated 23.12.1992 before this Court
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 51 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
which (petition) was converted into Civil Appeal No.734 of 1993 and
ultimately dismissed on 21.4.1998 with the observation that the
judgment of the learned High Court was in accordance with law.
Thereafter, the District Court accepted the application for condonation of
delay on 6.11.1999 in the following terms:-
“5.
The technicalities and omission on the part of the
Court and the parties themselves laboring under wrong
impression about jurisdiction until award of first appellate
decree by the Court of District Judge, are to justify the
sufficient cause as enunciated by Section 5 of the Limitation
Act. For this reliance can be placed upon PLD 1998 Lahore
page 503 and 1995 SCMR page 584. The application is
granted and the appeal is considered within time.”
Aggrieved of the above order, the appellants filed a civil revision before
the learned High Court which (revision) was dismissed vide judgment
dated 25.6.2001 inter alia on the ground that the respondents were
prosecuting their case with due diligence, in good faith and were entitled
to condonation of delay; besides, the appeal was filed on the same day
that it was returned i.e. 2.2.1993. The appellants challenged this order in
C.P. No.2127/2001 (now C.A.2564/2001) in which leave was granted on
23.11.2001 to consider whether the respondents were entitled to seek
condonation on account of the time spent before the wrong forum under
Section 14 of the Act and if not, whether a case for condonation of delay
in terms of Section 5 of the Act had been made out.
44.
Mr. Muhammad Ibrahim Satti, learned counsel for the
appellants has made reference to the judgment of this Court dated
21.4.1998 passed in Civil Appeal No.734/1994 and stated that the
respondents’ plea that sufficient cause has been made out was
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 52 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
conclusively discarded by this Court and that such decision operates as
res judicata between the parties. He submitted that the plaintiff
(predecessor-in-interest of the respondents) had himself valued the suit for the
purposes of jurisdiction at Rs.90,000/- and this jurisdictional value also
appeared in the decree sheet. Consequently, the appeal initiated before
the learned District Judge was before a wrong forum, lacking pecuniary
jurisdiction. No factors could be said to have misled the respondents’
counsel to file the appeal before a wrong forum.
45.
On the contrary, Mr. Malik Muhammad Qayyum, counsel for
the respondents has made reference to the contents of the application
filed by the respondents under Sections 5 and 14 of the Act before the
learned District Judge as also the affidavits of the counsel of the
respondents before the Trial and Appellate Court. Ch. Ahmed Farooq,
Advocate, who was the counsel for the plaintiff before the Trial Court
deposed that through a bona fide mistake he inadvertently mentioned in
the plaint the jurisdictional value of the suit as Rs.90,000/-. Muhammad
Yaqoob Ch. Advocate, counsel for the respondents before the Appellate
Court (in the first round of afore-mentioned litigation) deposed that in ground No.10
of the memorandum of appeal he had specified the correct valuation as
per the law, and that the filing of the appeal before the learned District
Judge at the relevant time was on account of the bona fide belief with
respect to the correct jurisdictional value according to him. It is thus
argued by the learned counsel for the respondents that the aforesaid
error of approaching the wrong forum was a result of bona fide mistake
of the learned counsels for the respondents (at the Trial and Appellate stage) and
the respondents were misled on account of such mistaken advice.
46.
We have heard the learned counsel for the parties and have
considered the submissions made by them. It may be reiterated that the
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 53 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
judgment of the learned High Court returning the memorandum of
appeal had been challenged by the respondents before this Court in Civil
Appeal No.734/1994 which was dismissed by this Court on 21.4.1998.
There was a lengthy discussion about the merits of the case,
considerable law was cited and finally the Court came to the following
conclusion:-
“From the entire record it is quite apparent that till filing of
appeal on 25.3.1985, there was hardly any doubt about
jurisdictional value of the suit fixed by the appellants. From
all these facts and circumstances it can be gathered that
normally at the relevant time appeal filed by the appellants
before Additional District Judge was not competent”.
In our considered view the above decision settles the issue in that the
stance of the respondents in approaching the District Court as having
the pecuniary jurisdiction was rejected; the notion that the counsel for
the respondents had inadvertently fixed a wrong valuation in the plaint
and therefore their counsel in appeal could of his own volition change the
valuation to “the correct valuation” was also rejected. Even otherwise, as
far as the question of filing of appeal by the respondents’ counsel before
the wrong forum and a case for sufficient cause in that context being
made out, it may be pertinent to mention here that there was no reason
for the counsel of the respondent, whilst filing the appeal, to be misled by
any fact or the law because the jurisdictional value was clearly
mentioned in the plaint as Rs.90,000/- by the respondents. Such value
was also clearly reflected in the decree passed by the learned Trial Court,
whereby the suit of the respondents was dismissed. Thus the appeal
should have been filed before the learned High Court as, at the relevant
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 54 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
point of time, it was such Court which had the pecuniary jurisdiction to
hear the appeal on account of the jurisdictional value fixed in the plaint
and decree sheet. At best, it is the case of the respondents that incorrect
valuation had been made in the plaint due to inadvertence; but it
transpires from the record that an objection was raised by the
appellants/defendants about the incorrect valuation and that was the
most opportune moment for the respondents having been put to notice
about the so-called inadvertent incorrect valuation to ratify the said
mistake but instead the respondents joined the issue. No attempt was
ever made by the respondents during the course of trial to correct the
valuation by seeking an amendment in the plaint. The trial court gave a
finding on issue No.1 and retained the value of the suit filed by the
respondents, which valuation squarely and duly appeared in the decree
sheet; it was thus on the basis of the valuation of the suit fixed by the
respondents in the plaint themselves and reflected in the decree which
had to determine the forum of appeal. Thus at the time of passing the
decree there was no ambiguity which could mislead the respondents’
counsel into filing the appeal before the District Court. Whilst answering
Proposition No.2 we have already held that inadvertence, negligence,
mistake simpliciter etc. of the counsel does not constitute a sufficient
cause. And the respondents have not been able to make out a case
beyond mere inadvertence. As regards the plea of exercise of discretion
raised by the respondents’ counsel, we are of the considered view that in
the instant matter the condonation of delay has been granted to the
respondents by both the courts below for on the basis of arbitrary and
whimsical reasons, that the exercise of discretion being against settled
principles can always be interfered with. In view of the above this appeal
is allowed; by setting aside the orders/judgments impugned the appeal of
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 55 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
the respondents before the District Court is dismissed as being barred by
time.
Civil Appeal No.2658/2006
47.
Respondents No.1 to 9 are the plaintiffs of the suit for
declaration and possession filed inter alia against the appellant. The
value of the suit for the purposes of court fee and jurisdiction was
categorically mentioned in the plaint at Rs.8,000,000/- (eighty lacs). The
suit after being contested was decreed by the trial court on 22.2.1994.
The appellant applied for certified copies of the judgment and decree on
8.3.1994, which (copies) were prepared and delivered on 26.4.1994. The
appellant filed a regular first appeal (RFA) on 8.5.1994 before the District
Court in which an order was passed on 23.6.1994 that the value of the
suit for the purpose of jurisdiction was Rs.8,000,000/- and the
memorandum of appeal was accordingly ordered to be returned to the
appellant for presentation before the learned High Court. The appellant
received the memorandum of appeal on 2.1.1996 from the District Court
and filed the RFA before the learned High Court on 8.1.1996 along with
an application under Section 5 of the Act for condonation of delay of the
time consumed before the wrong forum. The learned High Court vide
impugned judgment dated 27.8.2002 dismissed the appeal of the
appellant on the ground of limitation holding that no sufficient cause for
delay had been made out.
48.
Learned counsel for the appellant has argued that it was
through the inadvertent mistake of the counsel that the appeal had been
filed before the wrong forum, suffice it to say that as declared earlier,
such mistaken advice, even if unintentional, simpliciter does not
constitute a sufficient cause in terms of Section 5 of the Act, instead
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 56 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
there have to be cogent reasons, clearly spelt out and proved on the
record, for that purpose. We have perused the application for
condonation of delay and as rightly observed by the learned High Court
in the impugned judgment, the said application contains a mere
narration of the facts leading up to the filing of the appeal before the
learned District Judge, and there are no plausible reasons or
justifications given for the filing of such appeal before the wrong forum,
apart from a feeble assertion that “the delay for filing the Regular First Appeal
was not intentional on the part of the petitioner”. As regards the averment in the
said application that the time period from the date of filing of the appeal
before the wrong forum till the return of the memorandum of appeal for
filing before the correct forum should be condoned “because the petitioners’
appeal remained pending before Additional District Judge”, we may observe (as held
in the earlier part of this opinion) that mere pendency of an appeal before the
wrong forum especially when no sufficient cause has been made out
shall not be a ground per se or simpliciter for condonation of delay.
Besides as mentioned above the memorandum of appeal was ordered to
be returned on 23.6.1994 and the appellant never approached the Court
for receiving the same within reasonable time rather, after considerable
lapse of time of about 18 months, it was received on 2.1.1996. There
is/was no explanation for such delay, i.e. 18 months and 10 days. It is
not the case of the appellant that after the order of return of the
memorandum of appeal it approached the Court promptly and it was the
Court which took delayed in returning the memorandum of appeal. In
light of the above, interference with the impugned judgment of the
learned High Court is not warranted, thus the appeal merits dismissal.
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 57 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
Civil Appeal No.1670/2008
49.
The respondent is the plaintiff who pre-empted the sale of
the suit house in favour of the appellants by clearly valuing his suit for
the purposes of court fee and jurisdiction at Rs.1,200,000/- (twelve lacs).
The suit after being contested was decreed on 2.10.2004 in the plaintiff’s
favour. The appellants applied for certified copies of judgment on
7.10.2004, which were delivered on 10.12.2004, after which they filed an
appeal before the learned District Judge on 5.1.2005, which was
admitted to regular hearing on 26.9.2005 and returned on 26.9.2005 for
lack of pecuniary jurisdiction. Subsequently, the appellants filed an
appeal before the learned High Court on 18.10.2005 which was
dismissed by the Court through the impugned judgment dated 2.6.2008
with the observation that the value of the suit property for the purpose of
jurisdiction was specifically mentioned in the plaint as Rs.1,200,000/-,
hence, there was no confusion about the appellate forum and negligence
of counsel was no ground for condonation of delay (note:- even on merits, it was
found that the appellant had failed to establish his case). Aggrieved, the appellants
approached this Court, hence the instant appeal with the leave of the
Court.
50.
Heard. As is clear from the impugned judgment of the
learned High Court no reasons were assigned by the appellants in their
application seeking condonation of delay which could constitute a
sufficient cause within the meaning of Section 5 of the Limitation Act,
1908 as enunciated in the earlier part of this judgment.
A perusal of the plaint (paragraph No.6) indicates that the value of the
suit for the purposes of pecuniary jurisdiction was clearly stated as
Rs.1,200,000/-. The judgment of the learned Trial Court reflects the
amount of Rs.1,200,000/- as the sale consideration paid by the
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 58 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
appellants which is resultantly the market value of the suit house, and
the decree sheet prepared by the learned Trial Court also mentions the
value of Rs.1,200,000/-. Furthermore, the memorandum of appeal filed
before the learned District Judge also categorically states the appeal to
be valued at Rs.1,200,000/- for the purposes of pecuniary jurisdiction.
There was no ambiguity regarding the law because at the relevant point
in time, the pecuniary jurisdiction of the District Judge was capped at
Rs1,000,000/- by virtue of the Civil Courts Ordinance, 1962 (as it is a KPK
matter). In light of the foregoing aspects of the matter, there can be no
justifiable reason for filing the appeal before the District Judge. With
respect to the justification given by the learned counsel for the appellants
before the learned High Court that such mistake was inadvertent; suffice
it to say that sheer inadvertence, negligence and/or mistake (albeit bona
fide) is not recognised as a sufficient cause for condonation of delay, and
neither does it reflect exercise of due diligence on behalf of the appellants
or their counsel. As regards the plea that it was the duty of the learned
District Court to have examined the pecuniary jurisdiction and the Court
was at fault for not returning the memorandum of appeal on time, we
find the idea risible; we have already held in the earlier part of this
opinion that the same is not a valid reason for the condonation of delay
of time spent before a wrong forum. In light of the above, we are of the
forthright view that the learned High Court was correct in refusing to
condone the delay; therefore, this appeal is hereby dismissed.
Civil Appeals No.60-L/2013 and 280-L/2013
51.
These two appeals have been filed against a common
judgment of the Lahore High Court hence will be dealt with together. The
appellants of Civil Appeal No.60-L/2013 are the plaintiff/pre-emptors
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 59 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
(respondents in Civil Appeal No.280-L/2013) while the appellants of Civil Appeal
No.280-L/2013 are the defendants/vendees (respondents in Civil Appeal No.60-
L/2013). For the sake of convenience, Civil Appeal No.280-L will be used as
our reference point.
The respondents filed a suit for possession through pre-emption
regarding the suit land against the appellants (vendees) and the
mortgagees, whereas the subsequent purchasers, appellants No.20 to 30,
were impleaded afterwards. The respondents’ claim was that the
consideration amount of the sale was Rs.100,000/- but in order to
frustrate and prejudice their right of pre-emption, an exaggerated price of
Rs. 353,000/- was entered in the record, out of which Rs.118,000/- was
shown to be payable to mortgagees of the suit land. The value of the suit
for the purposes of court fee and jurisdiction was fixed as Rs.6,559.20/-
(six thousand five hundred and fifty nine rupees and twenty paisas). After the trial of the
case the suit was decreed in favour of the appellants (plaintiffs) on
23.2.1976 subject to payment of Rs.353,000/- less the amount already
deposited by them as Zar-e-Panjam on or before 24.04.1976, failing
which the suit would stand dismissed with costs. The learned trial court
also held that out of this consideration Rs.118,000/- would be received
by the mortgagees. Aggrieved, the respondents filed an appeal on
15.6.1976 before the learned High Court challenging the decree to the
extent of decretal amount only. The appeal was admitted for regular
hearing on 1.7.1976 but the learned Division Bench on 28.1.1990
remitted the appeal to the District Court due to lack of pecuniary
jurisdiction. Such decision however was reviewed by the learned High
Court on an application (CM No.1-C of 1990) filed by the appellants and
instead of remitting the appeal, vide order dated 6.2.1990 it was directed
that the memorandum of appeal be returned to the respondents for
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 60 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
presenting the same before the competent court by 13.2.1990. The
respondents received the memorandum of appeal on 13.02.1990 and
filed the same before the learned District Judge that very day. The appeal
was heard by the learned District Judge on 20.9.1995 when the
respondents counsel made a statement to the effect that as the value of
the property has increased thus the respondents were ready to deposit
the decretal amount of Rs.353,000/- and would withdraw the appeal;
however in the same breath it was requested that time for the deposit of
the balance pre-emption amount, as directed by the trial court (note:- the
time given by the trial court in this behalf was till 24.4.1976, failing which the suit would stand
dismissed) may be extended. The learned District Judge vide judgment
dated 20.9.1995 dismissed the appeal as having been withdrawn. The
request for extension of time for payment of the decretal amount was
declined. The court also declined the verbal request for condonation of
delay in filing the appeal. Aggrieved of the above judgment of the learned
District Judge, the respondents filed a regular second appeal before the
learned High Court on 20.12.1995 which was allowed on 17.12.2012
through the impugned judgment. Delay has been condoned on the
ground that at the time of filing the appeal before the High Court
(admittedly the wrong forum) the respondents were minors; their guardian acted
on the wrong advice of learned counsel; the High Court (in the earlier round of
litigation) while returning the appeal allowed the respondents time up to
13.2.1990, which was filed by them before the District Judge the same
day. All these factors according to the High Court constitute a sufficient
cause for condonation of delay.
It may be relevant to mention that as regards the merits, the
learned High Court restored the judgment and decree of the learned Trial
Court with the modification that the appellants may/will deposit the
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 61 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
market price of the suit land as fixed by the District Price Committee
prevailing on 13.11.2012 within two months from the date of
announcement of the judgment. Both parties being aggrieved of the
impugned judgment have filed separate appeals which are now before us
for determination.
52.
Heard. The respondents being minors at the relevant point of
time had duly filed the suit through a next friend; the same is the
position of their appeal(s) before the High Court and learned District
Judge; they were duly represented on both the occasions by a person
(next friend) who was pursuing their best interests thus any alleged mistake
of the next friend cannot be considered to be a sufficient cause for the
condonation of delay. It is an admitted position on the record that the
respondents themselves valued their suit for the purposes of court fee
and jurisdiction at Rs.6,559.20. This value was not varied by the trial
court. No reasons are established on the record which misled the counsel
to give wrong advice in filing the appeal before the learned High Court; in
fact no application in this context to establish sufficient cause for the
condonation of delay was moved. Above all the decree in this case was
passed by the trial court on 23.2.1976, the respondents applied for the
copy on 8.3.1976, the copy was delivered on 5.4.1976, the appeal before
the High Court was filed on 15.6.1976 and admittedly by that time the
appeal before the District Court was barred by time. It seems obvious, or
at any rate more than likely, that to cross the bar of limitation an
abortive attempt was made to file the appeal before the High Court which
lacked pecuniary jurisdiction. Simply because the appeal was filed before
the District Judge the same day that the memorandum of appeal was
returned does not by itself satisfy the test of Section 5 ibid; besides the
direction of the learned High Court to file the appeal before the District
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 62 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
Court by 13.2.1990 cannot be construed in any manner to mean that the
delay has been impliedly condoned.
In the light of the above, we allow this appeal, set aside the
impugned judgment of the High Court condoning the delay in filing of the
appeal by the respondents before the District Court, with the
consequence that the order of the Additional District Judge dated
28.9.1995 is restored, in that the appeal of the respondents filed before
the District Court stands dismissed as being barred by time. As Civil
Appeal No.280-L/2013 has been allowed, Civil Appeal No.60-L/2013
being against the decision of the High Court for enhancement of the sale
price of the suit land in the circumstances is rendered infructuous and is
disposed of accordingly.
Civil Appeal No.60/2014
53.
The appellant/plaintiff is a pre-emptor of the suit land whose
suit against the respondents after being contested was dismissed by the
trial court on 14.12.2010. The value of the suit for purposes of court fee
and jurisdiction fixed in the plaint is Rs.1,700,000/- (seventeen lacs). The
appellant applied for certified copies of the judgment on 22.12.2010
which (copies) were delivered to him on 24.12.2010 and the appeal was
filed on 4.1.2011 before the District Court which was admitted to regular
hearing on 10.1.2011. However, the appeal was returned on 1.7.2011 for
want of pecuniary jurisdiction. Thereafter the appellant filed the appeal
before the learned High Court on 6.7.2011 along with an application for
condonation of delay under Sections 5 and 14 of the Act. The learned
High Court vide the impugned judgment dated 23.10.2013 refused to
condone the delay and dismissed the application for condonation of delay
and the appeal as being barred by time on the ground that the suit was
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 63 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
clearly valued at Rs.1,700,000/- for the purpose of jurisdiction and that
negligence of counsel does not constitute a sufficient cause and neither
does an act of the Court (as it is a KPK matter). Aggrieved the appellant
preferred the instant appeal with the leave of this Court.
54.
Heard. The application for condonation of delay filed by the
appellant (note:- which seemingly is unsupported by an affidavit), does not propound
any plausible reason for filing the appeal before the learned District
Judge. The application is essentially a bald factual narration leading to
the filing of appeal before the wrong forum, save for the plea that it was
the fault of the District Court that the appellant’s appeal was entertained
despite lack of pecuniary jurisdiction which has resulted in the
appellant’s suffering. In light of the view expressed in the earlier portion
of this opinion regarding the principle of actus curiae neminem gravabit;
the same is not attracted to the instant case and the plea raised by the
appellant in his application for condonation of delay on that account in
no way constitutes a sufficient cause to exclude the time spent before the
wrong forum. There is no justification whatsoever provided in the said
application indicating as to why the appellant or his counsel were led
into believing that the appeal was to be filed before the District Court,
when the plaint itself describes the value of the suit as Rs.1,700,000/-.
The view of the learned High Court is unexceptionable, calling for no
interference, therefore, the appeal is hereby dismissed.
Civil Appeal No.965/2014
55.
This case entails the following facts:- the respondent
Hussain filed a suit for recovery of Rs.5,000,000/- as damages against
the appellant. The appellant contested the suit, issues were framed and
evidence was recorded, after which the learned Trial Court decreed the
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 64 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
suit to the extent of Rs.800,000/- vide judgment and decree dated
18.11.2011. The appellant preferred an appeal before the District Judge
on 23.12.2011 which was admitted to regular hearing. Upon an
application filed by the respondent for dismissal of the appeal for want of
pecuniary jurisdiction, the learned District
Court
returned the
memorandum of appeal to the appellant through order dated 30.10.2013
for presentation before the correct forum as the suit was valued at
Rs.5,000,000/-. The appellant applied for certified copies of the
documents on 2.11.2013 which were prepared on 11.11.2013 and were
delivered on 27.11.2013. On receipt of the certified copies, the appellant
moved an application for receipt of original file on 29.11.2013 which
(application) was disposed of through order dated 2.12.2013 for the return
of documents after the receipt of certified copies. The appellant again
applied for the certified copies of the file which were delivered to him on
30.12.2013 and on the same day, he received the original file. The
appellant presented the appeal before the learned High Court on
9.1.2014 along with an application under Section 5 of the Act for
condonation of delay. The appeal was dismissed by the learned High
Court through the impugned judgment dated 7.4.2014 on the ground
that even after return, the appeal was filed beyond the period of
limitation and no explanation was given in the affidavit. Aggrieved, the
appellant filed the instant appeal with the leave of this Court.
56.
Heard. We find that the explanation set out in the appellant’s
application for condonation of delay (paragraph No.4 thereof) that the mistake
in filing the appeal before the learned District Court was neither
intentional nor deliberate is not persuasive. It is worthy to note that the
value of Rs.5,000,000/- is clearly reproduced in the title itself, paragraph
No.14 and the prayer of the plaint. Paragraph No.18 particularly provides
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 65 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
“That the value of the suit for the purpose of Court fee and jurisdiction is fixed for
Rs.50,00,000/-…” The figure of Rs.5,000,000/- also finds mention in the
decree sheet of the learned Trial Court. The above leaves no room for
doubt or confusion that the value of the suit for the purposes of
pecuniary jurisdiction was indeed Rs.5,000,000/- and accordingly the
appeal should have been filed before the learned High Court. The ‘reason’
that the mistake was unintentional simpliciter is not a sufficient cause
within the purview of Section 5 of the Act as has been held in the earlier
portion of this opinion. No case for interference has been made out; the
appeal is hereby dismissed.
Civil Appeal No.218/2015
57.
The appellant/plaintiff filed a pre-emption suit against the
respondent/defendant in respect of the suit property which was
purchased by the respondent through registered sale deed dated
7.5.2008 against a price of Rs.2,500,000/- but as per the contention of
the appellant, the actual consideration fixed and paid was Rs.500,000/-
and the suit was accordingly valued for the purpose of jurisdiction at
Rs.500,000/-. The respondent contested such valuation and issue No.5
was framed on the basis thereof. The learned Trial Court decreed the
suit vide judgment and decree dated 29.6.2011 by fixing the sale price as
Rs.2,500,000/-. Aggrieved, the respondent preferred an appeal (RFA
No.53/2011) before the learned High Court on 19.7.2011 while the appellant
filed an appeal (RCA No.138/XIII/2011) before the learned District Court on
25.7.2011. The learned District Court vide order dated 26.7.2011
returned the appeal of the appellant for presentation before the correct
forum on the ground that the value of the property for the purpose of
Court fee and jurisdiction was Rs.2,500,000/-. The appellant accepted
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 66 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
this position and filed an appeal (RFA No.63/2011) before the learned High
Court on 17.8.2011. Both of the appeals (of the appellant and respondent) were
returned by the learned High Court vide judgment dated 8.10.2013 to
the parties for presentation before the proper forum on the ground that
the valuation of the suit for the purpose of Court fee and jurisdiction was
given as Rs.500,000/- in the plaint, hence, as per Section 18 of the
Ordinance the appeal(s) was maintainable before the District Court, in
spite of the fact that the learned Trial Court fixed the market value of the
property as Rs.2,500,000/-, because the forum of appeal was to be
determined on the basis of the valuation given in the original plaint. The
respondent presented the appeal along with an application for
condonation of delay under Section 5 of the Act before the learned
District Court on 22.10.2013 which (appeal) was dismissed on 3.7.2014 as
being time-barred. It is pertinent to note that the appellant pursuant to
the order dated 8.10.2013 neither received memorandum of appeal nor
filed the same before the learned District Court, therefore, to his extent,
matter ended. Aggrieved of the judgment dated 22.10.2013, the
respondent filed a civil revision before the learned High Court which
(revision) was allowed vide the impugned judgment dated 3.10.2014 with
the observation that the respondent was a victim of the act of the Court
which was sufficient cause for condonation of delay. The appellant
challenged the above order before this Court, hence the instant appeal
with the leave of this Court.
58.
Learned counsel for the appellant argued that there was no
confusion regarding the value of the suit for the purpose of filing the
appeal as such value was clearly stated in the plaint; there was no
finding by the learned Trial Court amending the value of the suit which
could be said to have taken precedence over the value set out in the
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 67 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
plaint. On the other hand, learned counsel for the respondent submitted
that the reason for the respondent filing the appeal before the learned
High Court as opposed to the learned District Court was that the learned
Trial Court in respect of issue No.5 regarding the market value of the suit
property had held it to be Rs.2,500,000/- and it was this factor that
misled the respondent into believing that the appeal should have been
filed before the learned High Court.
59.
We have heard the learned counsel for the parties. Upon a
perusal of the plaint, it is manifest from the title and paragraph No.1
thereof that the appellant had valued the suit property at Rs.500,000/-.
Paragraph No.6 specifically mentions Rs.500,000/- as the value of the
suit for the purposes of pecuniary jurisdiction. Such valuation was
categorically denied by the respondent through her written statement
(paragraphs No.1 and 6 thereof) asserting it to be Rs.2,500,000/-. It is in light of
this divergent pleas that the learned Trial Court framed issue No.5 in
that “What is the market value of the suit property?” and held as follows:-
“The burdon (sic burden) of proof this issue is on the
plaintiff. The plaintiff in the plaint assert that the value of
the suit property is no more than Rs. 5,00000/-, but in order
to deprive the plaintiff rights of the plaintiff an incorrect
amount of Rs. 25,00000/- were mentioned as sale
consideration in Vasiqa # 1431, dated 07.05.2008. The
plaintiff has failed to produce in the Court any witness in
this regard. Moreover, none of the official witness is called
for in this respect to produce the average price table
regarding this issue, meaning thereby the plaintiff himself
admitted the fact that the value of the suit property is Rs.
25,00,000/-. So, Rs. 25,00,000/- is fixed as market value of
the suit property. So, the issue is decided in negative.”
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 68 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
Keeping in view the above finding of the trial court, which determination
was duly reflected in the decree sheet as well, the respondent was
justified in considering that the value of the suit for the purposes of
jurisdiction had been changed/modified by the trial court, thus leading
him to prefer an appeal before the High Court whereas the appellant
[whose appeal had already been returned by the District Court and who
in compliance with the said order himself filed an appeal before the High
Court] raised an objection that the High Court lacked the pecuniary
jurisdiction and sought the return of respondent’s appeal and succeeded
in this behalf. But the learned High Court while passing the order of
return remained oblivious that in a suit for pre-emption of a house (urban
property) the value of the suit for the purposes of jurisdiction is the sale
consideration of the suit property; thus as per the finding of the trial
court on issue No.5, when it was held that the sale consideration was
Rs.2,500,000/- this modified the jurisdictional value automatically. We
have considered the decree sheet prepared by the trial court which is
absolutely in consonance with the finding of the trial court on the said
issue. The market value of the suit property at Rs.2,500,000/- has been
clearly indicated therein, thus for all intents and purposes the above
became the changed value for the purposes of jurisdiction of the forum of
appeal. In fact the respondent had rightly filed the appeal before the High
Court in the first instance and the earlier order of the High Court dated
8.10.2013 returning the appeal was/is bad in law. In this manner the
respondent has been compelled to file his appeal before the District
Court which had no jurisdiction on account of the increase in the sale
price of the property by the trial court. Therefore for the purposes of
doing complete justice we set aside the judgment of the High Court dated
8.10.2013 and hold that the original RFA No.53/2011 of the respondent
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 69 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
be deemed to be pending before the High Court and be decided on
merits. We must express our dismay that the respondent for no mistake
on his part has been made to run from pillar to post for pursuing his
statutory right of appeal. In light of the above, this appeal is dismissed.
60.
To recapitulate, Civil Appeals No.2564/2011, 2658/2006,
1670/2008, 60/2014, 965/2014 and 218/2015 are dismissed, Civil
Appeal No.280-L/2013 is allowed and Civil Appeal No.60-L/2013 is
disposed of as having been rendered infructuous.
CHIEF JUSTICE
JUDGE
JUDGE
JUDGE
JUDGE
Announced in open Court
on __________________ at ___________________
Not Approved For Reporting
Waqas Naseer/*
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 70 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
EJAZ AFZAL KHAN, J.- I have gone through the scholarly written
judgment of my learned brother Mr. Justice Mian Saqib Nisar and respectfully
agree with the answers to questions Nos. 1, 2 and 4. I, however, don’t agree with
the answer to question No. 3. The question reads as under:-
“Question No. 3:-
Where
an
appeal
which
has
been
entertained by the staff of the court or the court itself which has
no pecuniary jurisdiction and is ultimately returned to the
appellant or is dismissed, whether this protects the appellant from
the bar of limitation and/or constitutes a sufficient cause for the
condonation of delay on the principle of actus curiae neminem
gravabit.”
2.
The answer reads as under :-
“39.
The noted maxim which connotes “an act of the court
shall prejudice no man” is founded upon justice and good sense;
and affords a safe and certain guide for the administration of
law and justice. It is meant to promote and ensure that the ends
of justice are met; it prescribes that no harm and injury to the
rights and the interest of the litigants before the court shall be
caused by the act or omission of the court. This rule of
administration of justice is meant for the benefit of both sides of
litigants before the Court and it would be illogical to conceive
that the rule would or should be applied for the advantage of
one litigant to the prejudice and disadvantage of the other. It is
the duty of the Court to act as a neutral arbiter between the
parties and to provide justice to them through strict adherence
to law and keeping in mind the fact of each case. The rule is
neither meant to provide a premium to the negligent litigant who
finds himself on the wrong side of limitation for unfounded
reasons and nor to impair the rights of the other side. The
principles of proportionality and balancing have to be kept at
the forefront by the court whilst applying this rule. The Court must
see what fault, if any, has been committed by the court on
account of which a litigant has been made to suffer; then the
court must consider whether the benefit of the rule can or should
be extended to a negligent litigant who has failed to make out a
sufficient cause in terms of Section 5 of the Act as explained
above. In our candid opinion the principle actus curiae neminem
gravabit has no application where a litigant approaches a
wrong forum and such appeal is entertained by the staff of the
court or by the court or even admitted to regular hearing. Thus
no condonation of delay can be availed by the appellant on
the basis of this principle.”
3.
Before I deal with the answer it is worthwhile to know what does the
maxim actus curiae neminem gravabit stand for, what is its origin, how has it
been applied in the past and even today and what is the rationale behind it?
This maxim so to speak, has been founded upon the principles of justice and
good conscience. This maxim appears to be as old as the Court itself. The
rationale behind this maxim is to undo the wrong or prejudice caused to a party
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 71 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
by the act of the Court. Its application assumed different forms and
manifestations at different stages of the history. Even today this maxim is applied
to undo an injury or injustice caused to a party by an act of the Court or by the
laches or mistakes of its officers. It is also applied to restore what has been
delayed or denied to a party by the act of the Court or negligence of the
persons manning and managing it. In early eighties of 19th Century, Mr. Justice
Harlan in the case of Robert Mitchell. v. A. M. Overman (103 U.S. 64-65) while
delivering the opinion of the Supreme Court of the United States commented on
the maxim in the words reading as under :-
“The adjudged cases are very numerous in which have been
considered the circumstances under which Courts may properly
enter a judgment or decree as of a date anterior to that on
which it is, in fact, rendered. We deem it unnecessary to present
an analysis of the authorities, some of which are cited in a note
to this opinion, but content ourselves with saying that the rule
established by the general concurrence of the American and
English courts, is, that where the delay in rendering judgment or
decree arises from the act of the court, that is, where the delay
has been for its convenience, or has been caused by the
multiplicity or press of business or the intricacy of the questions
involved, or for any other cause not attributable to the laches of
the parties, but within the control of the court, the judgment or
decree may be entered retrospectively, as of a time when it
should or might have been entered up. In such cases, upon the
maxim, actus curiae neminem gravabit, which has been well
said to be founded upon justice and good sense and to afford a
safe and certain guide for the administration of justice, it is the
duty of the court to see that the parties did not suffer by the
delay. Whether a nunc pro tunc order should be made, depends
upon the circumstances of the particular case. It should be
granted or refused, as the justice of the cause may require. These
principles control the present cause, Stutzman was alive when
the cause was argued and submitted for decree. He was
entitled at that time, or at the Term of submission, to claim its final
disposition. A decree was not then entered because the case,
after argument, was taken under advisement. The delay was
altogether the act of the court, and its duty was to order a
decree nunc pro tunc, so as to avoid entering an erroneous
decree.”
4.
Act of the Court if considered in isolation may appear to have no
nexus with the cause justifying extension of time for not preferring an appeal well
within the time prescribed therefore or exclusion of time spent in prosecuting the
suit in a wrong forum. But when it is considered with reference to the other facts
and circumstances attending such cases, it is not only inextricably intertwined
but has deep nexus with the cause justifying extension or exclusion of time as the
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 72 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
case may be. Wrong or mistaken advice of a counsel has been recognized as a
sufficient cause for extension or exclusion of time eversince the enactment of the
Limitation Act, 1877 and the Limitation Act, 1908 in India as is evident from the
judgments rendered in the cases of Brij Indar Singh. Vs. Lala Kanshi Ram and
others (AIR 1917 P.C. (From Lahore), Sunderbai and another. Vs. Collector of
Belgaum and others (AIR 1918 P.C.) (From Bombay), Kanwar Rajendra Bahadur
Singh. Vs. Rai Rajeshwar Bali and others (AIR 1937 P.C. 276), Mata Din. Vs. A.
Narayanan (AIR 1970 SC 1953), State of Kerala. Vs. Krishna Kurup Madhava Kurup
(AIR 1971 Ker 211), Badlu and another. Vs. Shiv Charan and others [(1980) 4 SCC
401] and Ghasi Ram and others. Vs. Chait Ram Saini and others [(1998) 6 SCC
200]. But what is wrong advice of a counsel in essence and substance? It, as far
as I am capable to understand, is nothing but a wrong signal at a junction of a
road to a desired destination, which misleads a wayfarer. What is entertainment
of an appeal or a suit by a wrong forum in effect and consequence? It is also
nothing but another wrong signal at another junction of such road. If a wrong
advice like a wrong signal at one junction of the road could mislead a wayfarer,
entertainment of an appeal or a suit by a wrong forum like another wrong signal
at another junction of the road to the destination, could also mislead him. What
to do in a situation thus emerging? Sections 5 and 14 of the Limitation Act answer
the question by providing for extension of time for not preferring the appeal well
within time prescribed therefor and exclusion of time spent in prosecuting the suit
in a wrong forum. Whether it is the appeal or the suit the cause for preferring or
prosecuting it in the wrong forum is mistaken view of its jurisdiction, which in the
first instance finds expression in the advice of the counsel and then in the act of
the Court entertaining such appeal or suit. If allowance could be given for
mistaken view of the counsel I don’t understand why could it not be given for
mistaken view of the Court entertaining the appeal or the suit. It would thus be
unjust, unfair and unreasonable to treat the two differently simply because one
finds expression in the act of the counsel and the other finds expression in the act
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 73 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
of the Court. The latter deserves all the more allowance firstly because the Court
entertaining the appeal or the suit did not care to know that it lay outside its
jurisdiction; secondly because it sat over it for months and months together
instead of returning it for being presented in the Court of competent jurisdiction
and thirdly because the appellant or the plaintiff went out of limitation on
account of the aforesaid act of the Court.
5.
It is true that Sections 5 and 14 of the Act being distinct in their
scope and application deal with distinct states and situations, but it is equally
true that the distinction between the two disappears when both of them intend
to undo any injury or injustice caused to the appellant or the plaintiff by the act
of the counsel or by that of the Court and protect the lis having merit from being
thrown out at the threshold without being considered. It was in view of this
equation between the two that the principle justifying exclusion of the time spent
in prosecuting the suit in a wrong forum was also applied to appeal if prosecuted
in good faith and with due diligence. Judgments rendered in the cases of
Consolidated
Engineering
Enterprises.
Vs.
Principle
Secretary,
Irrigation
Department and others [(2008) 7 SCC 167] and J. Kumaradasan Nair & Anr. Vs.
IRIC Sohan & Ors. (AIR 2009 SC 1333) are lucid and luminous examples in this
behalf. It is correct that such act of the Court or its officials as highlighted in the
main judgment authored by my learned brother Mr. Justice Mian Saqib Nisar,
invariably prejudices one and places the other party in advantage, but it has to
be undone in line with the letter and spirit of sections 5 and 14 of the Act to
ensure equilibrium in the administration of justice and avert injustice and its
perpetuation. If impair of a right accruing to the other party could be a reason
for denying premium to the appellant or the plaintiff on account of the act of
the Court, it could also be a reason for denying premium to the appellant or the
plaintiff on account of the act of the counsel. It would thus be against the
principles of parity, propriety and proportionality to give premium to the act of
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 74 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
the counsel and deny it to the act of the Court. For being evenhanded is better
than being lopsided while sitting in judgment on the matters of this nature.
6.
In the case of Rodger. v. The Comptoir d’ Escompte de Paris (1871)
3 P.C. 465) the principle enshrined in the maxim actus curiae neminem gravabit was
also recognized as having much wider implications in the words reproduced below :-
“One of the first and highest duties of all Courts is to take care
that the act of the Court does no injury to any of the suitors and
when the expression ‘the act of the Court is used, it does not
mean merely the act of the primary Court, or of any intermediate
Court of Appeal, but the act of the Court as a whole from the
lowest Court which entertains jurisdiction over the matter up to
the highest Court which finally disposes of the case.”
7.
In the case of Jai Berham and others. Vs. Kedar Nath Marwari and
others (AIR 1922 P.C. 269) the same principle was upheld by the Privy Council by
holding as under :-
“It is the duty of the Court under S. 144 of the Civil Procedure
Code to “place the parties in the position which they would
have occupied, but for such decree or such part thereof as has
been varied or reversed”.
Nor indeed does this duty or jurisdiction arise merely
under the said section. It is inherent in the general jurisdiction of
the Court to act rightly and fairly according to the circumstances
towards all parties involved.”
8.
In East Suffolk Rivers Catchment Board. Vs. Kent and another (1941
AC 74) Lord Atkin, after referring to some decisions of House of Lords, observed
as under :-
“I treat it therefore as established that a public authority whether
doing an act which it is its duty to do, or doing an act which it is
merely empowered to do, must in doing the act do it without
negligence, or as it is put in some of the cases must not do it
carelessly or improperly. Now quite apart from a duty owed to a
particular individual which is the question in this case I suggest
that it would be difficult to lay down that a duty upon a public
authority to act without negligence or not carelessly or
improperly does not include a duty to act with reasonable
diligence by which I mean reasonable dispatch.”
9.
Lord Eldon in Pulteney. Vs. Warren (1801) 6 Ves. 73, 92 observed as
under :-
“If there be a principle, upon which Courts of justice ought to act
without scruple, it is this; to relieve parties against that injustice
occasioned by its own acts or oversights at the instance of the
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 75 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
party, against whom the relief is sought. That proposition is
broadly laid down in some of the cases”.
This view was approved of by the House of Lords in The East India
Company v. Campion (1837) 11 Bli. (N.S.) 158.”
10.
In the case of Parker. Vs. Ellis (362 U.S. 574) the Supreme Court of
the United States reaffirmed the dictum rendered in the case of Robert Mitchell.
v. A. M. Overman (supra) by holding as under :-
“It is the fault of the Courts, not Parker’s fault, that final
adjudication in this case was delayed until after he had served
his sentence. Justice demands that he be given the relief he
deserves. Since the custody requirement, if any, was satisfied
when we took jurisdiction of the case, I would grant the relief as
of that date”.
11.
In the case of Sough Eastern Coalfields Ltd., Vs. State of M. P. and
others (AIR 2003 SC 4482) while dilating upon the act of the Court and suffering
of the parties therefrom held as under :-
“26. That no one shall suffer by an act of the court is not a rule
confined to an erroneous act of the court; the 'act of the court'
embraces within its sweep all such acts as to which the court
may form an opinion in any legal proceedings that the court
would not have so acted had it been correctly apprised of the
facts and the law. The factor attracting applicability of restitution
is not the act of the Court being wrongful or a mistake or error
committed by the Court; the test is whether on account of an
act of the party persuading the Court to pass an order held at
the end as not sustainable, has resulted in one party gaining an
advantage which it would not have otherwise earned, or the
other party has suffered an impoverishment which it would not
have suffered but for the order of the Court and the act of such
party. The quantum of restitution, depending on the facts and
circumstances of a given case, may take into consideration not
only what the party excluded would have made but also what
the party under obligation has or might reasonably have made.
There is nothing wrong in the parties demanding being placed in
the same position in which they would have been, had the court
not intervened by its interim order when at the end of the
proceedings the court pronounces its judicial verdict which does
not match with and countenance its own interim verdict.
Whenever called upon to adjudicate, the court would act in
conjunction with what is the real and substantial justice. The
injury, if any, caused by the act of the court shall be undone and
the gain which the party would have earned unless it was
interdicted by the order of the court would be restored to or
conferred on the party by suitably commanding the party liable
to do so. Any opinion to the contrary would lead to unjust if not
disastrous consequences. Litigation may turn into a fruitful
industry. Though litigation is not gambling yet there is an element
of chance in every litigation. Unscrupulous litigants may feel
encouraged to approach the Courts, persuading the court to
pass interlocutory orders favourable to them by making out a
prima facie case when the issues are yet to be heard and
determined on merits and if the concept of restitution is excluded
from application to interim orders, then the litigant would stand
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 76 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
to gain by swallowing the benefits yielding out of the interim
order even though the battle has been lost at the end. This
cannot be countenanced, we are, therefore, of the opinion that
the successful party finally held entitled to a relief assessable in
terms of money at the end of the litigation, is entitled to be
compensated by award of interest at a suitable reasonable rate
for the period for which the interim order of the court withholding
the release of money had remained in operation.”
12.
In the case of Amarjeet Singh and others. Vs. Devi Ratan and others
(AIR 2010 SC 3676) the Supreme Court of India commented on the maxim actus
curiae neminem gravabit in the words as under :-
“15. No litigant can derive any benefit from mere pendency of
case in a Court of Law, as the interim order always merges in the
final order to be passed in the case and if the writ petition is
ultimately
dismissed,
the
interim
order
stands
nullified
automatically. A party cannot be allowed to take any benefit of
his own wrongs by getting interim order and thereafter blame the
Court. The fact that the writ is found, ultimately, devoid of any
merit, shows that a frivolous writ petition had been filed. The
maxim “Actus Curiae neminem gravabit”, which means that the
act of the Court shall prejudice no one, becomes applicable in
such a case. In such a fact situation the Court is under an
obligation to undo the wrong done to a party by the act of the
Court. Thus, any underserved or unfair advantage gained by a
party invoking the jurisdiction of the Court must be neutralized, as
institution of litigation cannot be permitted to confer any
advantage on a suitor from delayed action by the act of the
Court. (Vide Shive Shankar & Ors. v. Board of Directors, Uttar
Pradesh State Road Transport Corporation & Anr., 1995 Suppl. (2)
SCC 726; M/s. GTC Industries Ltd. v. Union of India & Ors., AIR 1998
SC 1566: (1998 AIR SCW 1089); and Jaipur Municipal Corporation.
v. C. L. Mishra, (2005) 8 SCC 423)”.
13.
In the case of Hidayatullah. Vs. Murad A. Khan (PLD 1972 SC 69) this
Court on its own helped the appellants out of the wrong caused to them by the
act of the Court by holding as under :-
“There was, as we have already pointed out, a very good and
substantial reason for the extension of time, because, even
assuming that no application was made by the appellants for
such extension of time, the Court, in the interest of justice, was
fully competent suo motu to extend the time when it had by its
own act made it practically impossible for the appellants to
comply with its original order by adjourning the application for
furnishing security to the 6th of January, 1968.”
14.
In Hari Ram. Vs. Akbar Hussain (ILR 29 All. 749) a full Bench of the
Allahabad High Court held as under :-
“The mistake may in its origin be the mistake of the plaintiff; by
the time the plaint has been registered, the mistake has become
the mistake of the Court. If the Court or the Munsarim discovered
the plaintiff’s mistake before registration of the plaint, the plaint
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 77 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
would at once be rejected under section 54 of the Code of Civil
Procedure and never registered at all”.
15.
In the case of Rashad Ehsan and others. Vs. Bashir Ahmad and
another (PLD 1989 SC 146) this Court after considering a good number of
judgments held as under :-
“I, therefore, agree with the view of the Division Bench that the
notice issued by the Collector and published in the newspaper
which explicitly mentioned that the balance of the price shall be
payable on confirmation of the sale had contributed to the
delay. This public notice was undoubtedly in violation of the
provisions of Order XXI, Rule 85 of the Civil Procedure Code. But
the error was committed by the officer authorized to conduct
the sale and to penalize the auction-purchaser for complying
with the directions, even though erroneous, of the functionary
conducting the sale is neither fair nor equitable. Accordingly the
maxim “Actus Curiae Neminem Gravabit” comes into play, with
a view to obviate hardships and which may otherwise be the
result of the errors of the Court itself. Thus, where a non-
compliance with the mandatory provisions of a law occurs by
complying with the direction of the Court, which is not in
conformity with the law, the party complying therewith is not to
be penalized. Indeed, the law becomes flexible to absorb such
abnormalities and treat the infractions as harmless. Where the
directions issued while administering the law have been followed
but it is found that the authority itself had acted in deviation of
the law in some particulars, the party acting in accordance with
such directions is not held to be blameworthy.”
16.
In the case of Sherin and 4 others. Vs. Fazal Muhammad and 4
others (1995 SCMR 584) this Court after examining a great deal of case law held
as under :-
“It is to be noticed that all public authorities including the judicial
functionaries while doing an act enjoined by law or merely
empowered to do it must not do it improperly. An action may lie
against a public authority for misfeasance or nonfeasance but
for the sake of safe administration of justice and good sense no
action lies for the breach of duty when the duty to perform is
judicial or quasi-judicial. There may be a variety of reasons for
omission or failure in performing such duty or exercising power
with reasonable dispatch such as delaying tactics of the parties
to the action multiplicity of pending cases in the Court or
intricacies of questions of law and facts raised before it. As stated
at page 75 in Broom’s Legal Maxims: “Cases, however, have
occurred, in which injury was caused by the act of legal tribunal,
as by the laches or mistake of its officer; and where,
notwithstanding the maxim as to actus curiae, the injured party
was without redress.” Presumably the need to mitigate the rigor
of the hardship inflicted on a party in the course of administration
of justice, by an act of the Court, led to the emergence of the
norm that “the act of the Court shall prejudice no man”.
And thus condoned the delay by holding as under :-
“We feel that omission on the part of learned District Judge to
take timely action is the major cause of refilling of the appeal by
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 78 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
the appellants, in the High Court, out of time. They have been
the victim of the act of the Court which furnishes “sufficient
cause” under section 5 of the Limitation Act, for condonation of
delay. The fact that after receiving the memorandum of appeal
from the District Court, some time was consumed by the
appellants, in presenting it to the High Court, in the
circumstances of the case is inconsequential. We are, therefore,
inclined to condone the delay in presenting the memorandum of
appeal to the High Court”.
17.
In the case of Syed Haji Abdul Wahid and another. Vs. Syed
Sirjuddin (1998 SCMR 2296), this Court by approving the judgment rendered in
the case of Sherin and 4 others. Vs. Fazal Mehmood and 4 others held as under :-
“From the preceding discussion, it emerges that the ratio
decidendi in Abdul Ghani v. Ghulam Sarwar has been followed
consistently. No doubt Abdul Ghani’s case laid down that an
advice given by the counsel against a clear provision of law
would amount to gross negligence on the part of counsel and
any action taken on such advice would not entitle the party to
seek condonation of delay on the ground that he bonafidely
acted on that advice, but the above rule laid down in Abdul
Ghani’s case did not exclude from its purview condonation of
delay by the Court under section 5 of the Limitation Act in a case
where the appellant is able to establish that he acted in good
faith in the above quoted passage from Abdul Ghani’s case.
Therefore notwithstanding, the fact that section 14 of the
Limitation Act, in terms does not apply to proceedings of an
appeal, if the appellant is able to establish that he followed the
remedy before a wrong forum in good faith, the Court may
condone such delay in filing of the appeal treating it as
“sufficient cause” in such cases would depend on the facts and
circumstances of each case”.
18.
In the case of Karachi Electric Supply Corporation Ltd. Vs. Lawari
and 4 others (PLD 2000 Supreme Court 94) this Court after dealing with the
expression sufficient cause, due diligence, good faith and act of the Court held
as under :-
“In the aforesaid admitted facts and circumstances, we are of
the view that it is not a case where the appeal had been filed by
the appellant before the District Judge only on account of
mistaken advice of the counsel. Here the act and conduct of the
District Judge and its office in entertaining the appeals on both
occasions i.e. in the earlier round when the appeal was filed by
the respondents and then when the appeal was filed by the
appellant and District Judge deciding the appeals on both
occasions on merits and not noting or raising the question of
maintainability, and respondents on both occasions, are also
factors which led the appellant in filing the appeal before the
District Judge and pursuing the same there. In our view taking all
the above, facts and circumstances together, a case of
sufficient cause as required in section 5 of the Limitation Act had
been made out and the appeal filed by the appellant before
the High Court was not liable to be rejected on the ground of
limitation.”
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 79 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
19.
In the case of Mst. Bas Khana and others Vs. Muhammad Raees
Khan and others (PLD 2005 Peshawar 214) a Division Bench of the Peshawar High
Court in an identical situation held as under:-
“Assuming for a while that the appellants did not act with
due diligence by prosecuting their remedy in a wrong
forum, could be put on the right track by the learned
District Judge, the day the memorandum of appeal was
presented before him. This is what preliminary hearing
stands for. In any case when it was entertained and even
admitted by the learned Judge without adverting to its
competency on account of his pecuniary jurisdiction, all
the time so consumed from its entertainment to its return in
his Court, cannot be debited in the account of the
appellants, and thus they cannot be allowed to suffer for
the act of the Court. Had it been returned on the first date
of hearing the appellants could have presented it in this
Court well within time. Since the time was consumed due
to the act of the Court, it will certainly constitute a sufficient
cause for condonation of delay as according to the
principle enshrined in the maxim actus curiae neminem
gravabit, ‘an act of the Court shall prejudice none’.”
The Bench while parting with the judgment observed as under:-
“While parting with this judgment we will direct the Registrar
of this Court to circulate a copy of this judgment to all the
Courts of the learned District and Additional District Judges
and the Clerks of the Court with the remarks that they
should before entertaining any appeal ensure that it is
within their pecuniary jurisdiction.”
20.
It thus follows that the maxim actus curiae neminem gravabit is the
most vital part of our jurisprudence. Excluding it from the purview of sections 5
and 14 of the Act would amount to excluding the most vital part of the
jurisprudence which has grown over the centuries and earned recognition of the
Courts ever since then. I, therefore, hold that the appellants going out of
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 80 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
limitation on account of the act of the Court are entitled to extension of time.
Their appeals thus stand decided accordingly. However, it is directed that
henceforth the Clerk of the Court while receiving appeal in the office and the
learned District Judge hearing appeal in motion shall ensure that it is presented
in a competent forum and in case it is otherwise he shall immediately return it for
being presented in the Court of competent jurisdiction. Order of this Court be
circulated to all the District Judges and the Clerks of Court for doing the needful.
Judge
Civil Appeals No. 2564/2001, 2658/2006, 1670/2008,
-: 81 :-
60-L/2013, 280-L/2013, 60/2014, 965/2014 and 218/2015
ORDER OF THE BENCH
With the majority decision of four to one the result of the
appeals is recorded in paragraph No.60 (supra) of the majority judgment.
CHIEF JUSTICE
JUDGE
JUDGE
JUDGE
JUDGE
Announced in open Court
on 16.8.2016 at Islamabad
Approved For Reporting
Waqas Naseer/*
| {
"id": "C.A.2564_2001.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE MUNIB AKHTAR
MR. JUSTICE SAYYED MAZAHAR ALI AKBAR NAQVI
CIVIL APPEAL NO. 2619 OF 2016
(On appeal against the judgment dated
08.09.2016 passed by the Peshawar High
Court, D.I. Khan Bench in RFA No. 103-
D/2013)
WAPDA through Chairman and others
… Appellants
Versus
Alam Sher and others
…Respondent(s)
For the Appellants:
Syed Abid Hussain Shah, ASC
Syed Rifaqat Hussain Shah, AOR
For the Respondents:
Mr. Anwar Awan, ASC
Date of Hearing:
28.03.2023
JUDGMENT
SAYYED MAZAHAR ALI AKBAR NAQVI, J.- Through this appeal under
Section 54 of the Land Acquisition Act, 1894, the appellants have assailed
the judgment dated 08.09.2016 passed by the learned Single Judge of the
Peshawar High Court, D.I. Khan Bench whereby the Regular First Appeal
filed by the appellants was dismissed and the order of the learned Judge
Land Acquisition, D.I. Khan dated 29.06.2013 was upheld.
2.
Briefly stated the facts of the case are that the appellants
acquired the land of the respondents for construction of F.C. Sherana
Drain CRBIP Stage-III, Wapda, D.I. Khan. The District Collector/Deputy
Commissioner, D.I. Khan issued notification on 18.11.1996 under Section 4
of the Land Acquisition Act, 1894, which was published in the official
gazettee on 18.02.1997. Subsequently, the Award No. 80 was issued on
11.08.2003 and the compensation was announced as Rs.3328.20/- per
kanal. The respondents filed Objection Petition under Section 18 of the
Civil Appeal No. 2619/2016
-: 2 :-
Land Acquisition Act, 1894 seeking enhancement of the compensation
amount. The matter was ultimately taken up by the Senior Civil Judge, D.I.
Khan as Referee Judge and vide judgment and decree dated 08.04.2010,
the learned Referee Court enhanced the compensation amount from
Rs.3328.20/- per kanal to Rs.10,282.40/- per kanal along with 15%
compulsory acquisition charges and 6% simple interest. The respondents
challenged the said judgment and decree before the learned Peshawar
High Court, D.I. Khan. The learned High Court vide its order dated
13.05.2013 accepted the appeal filed by the respondents and remanded
the matter back to the learned Referee Court with a direction to appoint
local commission to ascertain the fair and actual market value of the land
and thereafter decide the case afresh. In post-remand proceedings, the
learned
Judge
Land
Acquisition/Referee
Court
enhanced
the
compensation amount from Rs.10,282.40/- per kanal to Rs.25000/- per
kanal along with 15% compulsory acquisition charges and 6% simple
interest on the difference from date of possession till final recovery of the
amount, minus the amount, if any, already paid to the respondents. Being
aggrieved, the appellants filed RFA No. 103-D/2013 before the learned
Peshawar High Court but the same has been dismissed vide impugned
judgment. Hence, this appeal under the provisions of Land Acquisition Act,
1894.
3.
At the very outset, learned counsel for the appellants
contended that the compensation of the acquired land was rightly fixed in
the Award dated 11.08.2003 keeping in view the nature of the land, which
is adequate and needs no interference. Contends that the Local
Commission did not place on record any documentary evidence and solely
based its findings on the oral evidence, which is not warranted under the
law. Contends that pursuant to an amendment in Section 23 of the Land
Acquisition Act, 1894, which was made in the year 2001, the
compensation has to be determined according to the market value of the
land on the date of taking possession of the land. Contends that the
possession of the land was taken on 28.02.2002, therefore, the
compensation ought to have been awarded according to that date. Lastly
Civil Appeal No. 2619/2016
-: 3 :-
contends that the impugned judgment is against the law, facts and record
of the case, therefore, the same may be set at naught.
4.
On the other hand, learned counsel for the respondents
defended the impugned judgment by stating that the learned High Court
has passed a well reasoned judgment, which is based on correct
appreciation of the evidence available on the record, therefore, the same
needs no interference.
5.
We have heard learned counsel for the parties at some
length and have perused the available record with their able assistance.
6.
There is no denial to this fact that the order of the learned
Peshawar High Court dated 13.05.2013 by which the matter was
remanded back to the learned Referee Court with a direction to appoint
local commission to ascertain the fair and actual market value of the land
was neither challenged by the appellants nor by the respondents before
this Court. Therefore, the same had attained finality. We have perused the
report of the Local Commission dated 24.06.2013. The report shows that
during the spot inspection, the concerned Patwari Halqa, Patwari CRBC
and Moharrir of the Court were also accompanying the Local
Commissioner. The report depicts that different mutations of the same
mouza pertaining to years 2001 to 2003 were produced before the Local
Commission. Those mutations were of the same time when the acquisition
process was finalized and the land of the respondents was taken into
possession i.e. 28.02.2002. The same were also made part of the record.
During spot inspection, the statements of different landlords and property
dealers of the same vicinity were also recorded, which were also made
part of the record. It was also noticed that the land of the respondents
was bifurcated in two blocks and in one block the land was irrigated
through outlet privately built by the respondents over drain, without
which, even after acquisition, irrigation of the acquired land was almost
impossible. Two years average for the period 01.01.2002 to 01.01.2003
were also taken on record while determining the fair market value of the
land of the respondents. After taking into consideration the documentary
Civil Appeal No. 2619/2016
-: 4 :-
evidence in the shape of mutations, two years average, bifurcation of the
acquired land in two different blocks and oral statements of the landlords
& property dealers, which were also reduced into writing, and disturbance
of irrigation sources of the acquired land, the Local Commissioner came to
the conclusion that the fair market value of the land was Rs.25000/- per
kanal. Mr. Muhammad Ghazanfar Ali, Advocate, who was appointed Local
Commissioner also appeared before the learned Trial Court and recorded
his statement as CW-1. He was put to lengthy cross-examination by the
appellants but no deficiency in his report could be brought on record.
Mode of determining the compensation of acquired land is provided in
Section 23 of the Land Acquisition Act, 1894, which depicts that the
landowner is entitled to compensation and not just market value, as such,
any loss or injury occasioned by its severing from other property of the
landowner, by change of residence or place of business and loss of profits
are also relevant factors. While conducting said exercise, oral evidence, if
found credible and reliable can also be taken into consideration. The
requirement of Article 71 of the Qanun-e-Shahadat Order, 1984, squarely
requires that it should be produced directly if the same is in oral form. We
have noticed that in the present case, the oral evidence came from a
source, which no doubt can be termed as direct, because the other
landowners and property dealers were of the same vicinity and were fully
aware of the market/potential value of the land. Even otherwise, the oral
statements of the other landowners and property dealers of the same
vicinity had been corroborated with other evidence produced on record,
such as, (i) certain mutations in respect of the same mouza, (ii) two years
average for the period 01.01.2002 to 01.01.2003 (Ex.PW-3/25), (iii) aks
shajra kishtwar, & (iv) khasra girdawri (Ex.PW-3/2), which revealed that
there was cultivation in the suit property up to the year 2004. Learned
counsel for the appellants had argued that pursuant to an amendment in
Section 23 of the Land Acquisition Act, 1894 by the province of KPK, the
compensation has to be determined according to the market value of the
land on the date of taking possession of the land. Before proceeding
Civil Appeal No. 2619/2016
-: 5 :-
further, it would be in order to reproduce the relevant provision of Land
Acquisition Act, 1894, which reads as under:-
“23. Matters to be considered in determining compensation.— (1) In
determining the amount of compensation to be awarded for land
acquired under this Act, the Court shall take into consideration—
first, the market-value of the land at the date of the publication of the
notification under section 4, sub-section (1).
7.
This provision stands amended by the NWFP Amendment
Ordinance XVII of 2001 in the following terms:-
“first, the market value of the land on the date of taking
possession of the land..”
8.
Admittedly, this question was not raised before the lower
forums. This is settled law that this Court in its appellate jurisdiction would
generally not determine any ground or question of fact that had not been
pleaded or raised by the parties at any stage before the Referee Court or
the High Court and has been for the first time raised in appeal before this
Court. Reliance is placed on Sarhad Development Authority NWFP Vs.
Nawab Ali Khan (2020 SCMR 265), Ali Khan Vs. Soomar (1968 SCMR 565) &
Malik Ghulam Hussain Vs. Haji Muhammad Hayat (PLD 1971 SC 573). In
Sarhad Development Authority NWFP Vs. Nawab Ali Khan (2020 SCMR
265), this Court considered the effect of amendment in Section 23(1) of
the Land Acquisition Act, 1894, made by the Province of Khyber
Pakhtunkhwa and held as under:-
“11. What is interesting to note is that, unlike Khyber Pakhtunkhwa, in
the other three provinces, section 23(1) of the Act has not been
amended, and the "market value" of the land, as originally enacted, is
determinable on basis of the value prevailing on the date of gazette
publication of the notification under section 4(1) ibid. Thus, it is crucial
to note that since 2001, when the Amendment was introduced in the
Act, it is only in Khyber Pakhtunkhwa that, the determining criteria for
deciding the "market value" of the property proposed to be acquired
within the contemplation of section 23(1) has been the prevalent
value of land on the date of taking possession of the said property,
and not the date when the notification under section 4(i) ibid was
published in the official gazette. …………………………..
17. Thus, in view of the above, it would be safe to state that not only
in Khyber Pahktunkhwa, but even in other three provinces, where
Civil Appeal No. 2619/2016
-: 6 :-
section 23(1) of the Act has not been amended, it is noted that: firstly,
the value of similar land in the adjoining khasras and mauzas to the
acquired land was taken into consideration for determining the
amount of compensation to be awarded to owners of the acquired
property; and secondly, the escalation of price of land during the
acquisition period till its culmination in issuance of the award could be
taken into consideration; and thirdly, for assessing the "potential
value" of the acquired land, the most critical factor, which is to be
kept in mind is the future utility of the proposed acquired land,
keeping in view the availability of facilities for its said utilization; and
finally, there can be no mathematical formula set for the
determination of the compensation due to the landowners for the
compulsory acquisition of their property. And thus, various factors
depending on the circumstances of each case would cumulatively form
the basis for determining the "market value" of the acquired land
within the contemplation of section 23(1) of the Act.”
(Emphasis is supplied)
9.
For what has been discussed above, we are of the view that
the learned courts below while passing the judgments have taken into
consideration all the relevant factors, as mentioned in Sarhad
Development Authority supra case, which being well reasoned do not
warrant interference. The compensation enhanced by the learned Referee
Court, which was upheld by the learned High Court, was in consonance
with the law laid down by this Court as well as with Section 23 of the Land
Acquisition Act, 1894. Consequently, this appeal having no merit is
dismissed.
JUDGE
JUDGE
Islamabad, the
28th of March, 2023
Approved For Reporting
Khurram
| {
"id": "C.A.2619_2016.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE TASSADUQ HUSSAIN JILLANI
MR. JUSTICE MIAN SAQIB NISAR
MR. JUSTICE SARMAD JALAL OSMANY
CIVIL APPEAL NOs. 269 TO 275, 1047 & 1048 OF 2011
AND CIVIL PETITION NO. 657 OF 2012
(On appeal from the consolidated judgment of the Peshawar High
Court dated 28.10.2010 passed in WP Nos. 327, 328 & 525 of 2008 &
2745/2010 and consolidated judgment dated 29.6.2011 passed in WP
No. 569 of 2011 and WP No. 3975 of 2010 and order dated 28.2.2012
passed in WP No. 184/2010).
Zarai Taraqiati Bank Limited etc
(In all cases)
… Appellants/Petitioner
VERSUS
Said Rehman & others
(In CA 269/2011)
Ali Haider etc
(In CA 270/2011)
Fazli Subhan and others
(In CA 271/2011)
Ali Muhammad and others
(In CA 272/2011)
Muhammad Afsar Khan and others
(In CA 273/2011)
Muhammad Tariq Hussain etc
(In CA 274/2011)
Hidayat ur Rehman etc
(In CA 275/2011)
Hanifullah Khan etc
(In CA 1047/2011)
Muhammad Saleem Khan etc
(In CA 1048/2011)
Syed Muhammad Zahir Shah and others
(In CP 657/2012)
… Respondents
For the Appellants:
Mian Gul Hassan Aurangzeb, ASC
Mian Muhammad Hanif, ASC
Mr. Muhammad Munir Peracha, ASc
Mr. M. S. Khattak, AOR
Mr. Hamid Ahmed, Advocate
Mr. Rashid Sultan, Advocate
(In all cases)
For the Respondents
Mr. Abdur Rahim Bhatti, ASC
(In CAs 269 to 275/2011)
For the Respondents:
Mr. Shakeel Ahmed, ASC
(In CP 657/2012)
Dates of Hearing:
5/6/7/13/19/21/22.11.2012
Date of Announcement:
15.2.2013
Civil Appeals No. 269 to 275 of 2011 etc
2
JUDGMENT
TASSADUQ HUSSAIN JILLANI, J.- Facts giving
rise to these appeals briefly stated are that respondents were at the
relevant time serving as Vice Presidents (C.A. No. 275 of 2011) and
Assistant Vice Presidents in the appellant Bank (in all the
remaining appeals and Civil Petition No. 657 of 2012). They were
aggrieved of the recommendations made by the Departmental
Promotion Committee in its meeting held in October 2007 vide
which they were not recommended for promotion to the next grade.
Those orders were challenged in Constitution petitions on the
ground that the respondents had secured the requisite qualifying
marks for their promotion from Vice President to Senior Vice
President/Directors; that they had illustrious careers; that no
cogent reason had been given by the said Departmental Promotion
Committee for ignoring them; that the procedure adopted by the
Departmental Promotion Committee had no sanction in law or the
rules inasmuch as there was no provision of interview and for
allocation of 25% marks for the interview. The Constitutional
petitions have been allowed by the learned Division Bench of the
Peshawar High Court vide the impugned judgment on the ground
that the procedure provided in the Zarai Taraqiati Bank Limited
Staff Regulations, 2005 (hereinafter referred to as the Staff
Regulations, 2005) could not have been adopted to consider the
respondents’ promotion; that in view of Section 6 of the
Agricultural Development Bank of Pakistan (Reorganization and
Conversion) Ordinance, 2002 (hereinafter referred to as the
Ordinance, 2002), the respondents are to be governed by the same
Civil Appeals No. 269 to 275 of 2011 etc
3
Rules and Regulations which were applicable to them prior to the
promulgation of the afore-referred Ordinance. The appellant Bank
was directed to send their cases of next step promotion back to the
Departmental Promotion Committee for consideration afresh in the
light of the observations made in the impugned judgment.
2.
Leave was granted by this Court in terms of order
dated 30.3.2011 which reads as follows:-
“In the petitions the points which have been
raised for consideration of this Court are, (i) that
the petitioner bank is a limited company and
against which the writ cannot be issued, and (ii)
that after the reorganization of Zarai Taraqiati
Bank
Limited
it
is
not
certain
that
the
respondents would be governed by the old rules
and regulations on the strength of Section 6 of
Agricultural Development Bank of Pakistan (Re-
organization and Conversion) Ordinance, 2002,
or by the rules and policy so framed by the
petitioner/bank.
Learned
counsel
for
the
respondents
has
controverted the aforesaid points. However, in
order to consider, inter alia, the aforesaid points,
leave to appeal is granted. CMAs are allowed
and the operation of the impugned judgment is
suspended.”
3.
Learned counsel for the appellants submitted that the
learned High Court has fell in error in not appreciating that in
terms of Ordinance 2002, the appellant-bank had become a public
limited company; that the employees of this company are governed
by non-statutory regulations so far as the issues of promotion are
concerned; that the relationship of the appellant with the
respondents is governed by the principle of master and servant
and in view of the law laid down by this Court in Muhammad
Mubeen-us-Salam v. Federation of Pakistan (PLD 2006 SC 602)
Civil Appeals No. 269 to 275 of 2011 etc
4
and Muhammad Idrees v. Agricultural Development Bank of
Pakistan (PLD 2007 SC 681), the learned High Court had no
jurisdiction to entertain the petitions. He added that after the
promulgation of the afore-referred Ordinance, the respondents are
to be governed by Staff Regulations 2005 which is in accord with
Section 9 of the Ordinance 2002 and sections 6 and 10 of the said
Ordinance could not override the former provision; that they were
disentitled to any discretionary relief on account of their conduct
as having availed the benefits of Staff Regulations 2005 and having
appeared in the interview they could not have taken a somersault
claim to be reconsidered under the old Staff Regulations of 1961.
4.
Tracing the history of the development of law relating
to Agricultural Development Bank (which now is Zarai Tarqiati
Bank) from the Agricultural Development Bank Ordinance 1961 to
the current law i.e. the Agricultural Development Bank of Pakistan
(Reorganization and Conversion) Ordinance, 2002, learned counsel
submitted that prior to the former Ordinance, two institutions
existed
to
provide
financial
and
credit
facilities
to
the
agriculturalists: (i) Agricultural Development Finance Corporation
(established through the Agricultural Development Finance
Corporation Act 1952 Act XVII of 1952) and (ii) Agricultural Bank
of Pakistan (established under Act XXIII of 1956). Section 43 of Act
XV of 1952 provided that the Board of the Corporation, with
previous sanction of the Central Government, may make
regulations not inconsistent with the Act to provide for all matters
necessary or expedient for the purpose of giving effect to the
provisions of the Act. Section 39 of Act XXIII carried a similar
Civil Appeals No. 269 to 275 of 2011 etc
5
provision of the power of the Board to make regulations not
inconsistent with the Act with prior approval of the Central
Government. Both these Acts were repealed with the promulgation
of Agricultural Development Bank Ordinance 1961 (Ordinance IV
of 1961) in terms of its Section 41. Section 39 of this Ordinance
pertained to the power of the Board to make regulations not
inconsistent with the Ordinance for the purpose of giving effect to
the provisions of this Ordinance and spelt out matters inter alia on
which the regulations could be framed. The provision of prior
approval of the Central/Federal Government contained in Act XVII
of 1952 and Act XXIII of 1956 was done away with. The said
provision reads as under:-
“39. Regulations. ----(1) The Board may make
regulations not inconsistent with this Ordinance
or the rules to provide for all matters for which
provision is necessary or expedient for the
purpose of giving effect to the provisions of this
Ordinance and the efficient conduct of the affairs
of the Bank.
(2)
…..
(a)
……
(b)
……
(c)
……
(d)
……
(e)
the recruitment of the employees of the
Bank, the terms and conditions of their
service, the constitution and management
of Provident Funds for the employees of the
Bank and all other matters connected with
any of these things;
(f)
the duties and conduct of employees and
agents;
(g)
……
Civil Appeals No. 269 to 275 of 2011 etc
6
(h)
……”
5.
Agricultural Development Bank Ordinance, 1961 was
gazetted on 11.2.1961 and the Regulations were drafted
immediately thereafter when the Board had yet to be constituted.
Those Regulations in absence of the Board were sent to the
Government for approval and after Government's approval those
were brought into force. It was on 3/4 May, 1961 that those were
placed before the Board of Directors and approved. The approval
by the Government did not make it statutory as requirement of
approval by the Government stood dispensed with in terms of
Section 39 of the Ordinance, 1961; that the Agricultural
Development Bank Ordinance 1961 (IV of 1961) was, however,
amended through Act XII of 1973 and thereby eight Sections of the
said Ordinance including Section 39 were amended (relatable to
regulations). A proviso was added to Section 39(2) and the
requirement of prior approval of the Federal Government for
making regulations was reinserted. The said proviso reads as
follows:-
“Provided that no regulation made with respect to
the matters mentioned in clauses (e) and (f) shall
take effect until it has been approved by the
Federal Government”.
6.
The
effect
of
the
afore-mentioned
amendment,
according to learned counsel, would be prospective and all
regulations framed after 1973 would be statutory as requirement of
approval by the Federal Government was made a condition
precedent. In support of this submission, he relied on a judgment
Civil Appeals No. 269 to 275 of 2011 etc
7
of this Court in Anwar Hussain v. Agricultural Development Bank
of Pakistan (1992 SCMR 1112).
7.
Elaborating his submission, learned counsel added
that the Agricultural Development Bank of Pakistan Officers
Service (Efficiency & Discipline) Regulation, 1975 were statutory as
those were duly approved by the Federal Government.
But in the appeals in hand, he maintained, the issues
raised are relatable to promotions whereas the Officers Service
(Efficiency & Discipline) Staff Regulations 1975 which are
statutory, cater to disciplinary matters. The regulations governing
issues of promotion or the Agricultural Development Bank Staff
Regulations, 1961 were neither approved by the Federal
Government nor it was so required prior to the amendment by Act
XII of 1973.
8.
The Agricultural Development Bank Ordinance, 1961
was however repealed with the promulgation of the Agricultural
Development Bank of Pakistan (Reorganization and Conversion)
Ordinance, 2002. The Bank was converted into a corporation, all
the employees were transferred and became the employees of the
company and it was provided under the Ordinance that these
employees shall be governed and subject to same rules and
regulations as were applicable to them before the effective date.
9.
A close reading of Section 6 of the Ordinance, 2002,
according to learned counsel, would indicate that the legislative
intent was that the employees of the Bank who stood transferred to
the newly created / converted company were to be governed by the
Civil Appeals No. 269 to 275 of 2011 etc
8
same rules as existed prior to promulgation of new Ordinance and
that would mean that so far as the matters pertaining to efficiency
and discipline are concerned, the employees would be governed by
the Agricultural Development Bank Staff Regulations of 1975
which are statutory. However, the subject of promotions (contained
in paragraph 17 of the Staff Regulations, 1961) has not been
approved by the Federal Government after the Regulations, 1961
were made by the Board. Therefore, the subject of promotions
continues to be non-statutory in nature. He added that after
promulgation of the Agriculture Development Bank of Pakistan
(Amendment) Act, 1973, no Regulations on the subject of
promotions have been made except the Promotion Policy, 1999,
which has never been approved by the Federal Government and,
therefore, non-statutory.
10.
He contended that though Promotion Policy is
admittedly non-statutory but assuming without admitting or
conceding that regulations pertaining to promotions were statutory
in
nature,
the
writ
petitions
would
nonetheless
be
not
maintainable on account of the fact that the writ petitioners had
voluntarily and consciously applied for and adopted the ZTBL Staff
Regulations, 2005, which have been framed by the Board and not
approved by the Federal Government. Paragraph 14(h) of the ZTBL
Staff Regulations, as notified vide circular dated 27-06-2007
provided as follows:-
“Promotion for VP and above shall be based on merit and
open competition, interviews and selection by a promotion
committee to be constituted by the President. Vacancies for
VP and above as such shall be advertised internally and
externally.”
Civil Appeals No. 269 to 275 of 2011 etc
9
11.
According to learned counsel the writ petitioners (1)
after voluntarily and consciously adopting the Regulations 2005;
(2) after taking all the monetary benefits on account of adopting
the Regulations 2005 i.e. 100% commutation of pension, which
otherwise was not permissible under the ADBP Employees
(Pension and Gratuity) Regulations 1981; (3) after sitting or
participating in the competitive process for promotion as
contemplated by Paragraph 14(h) of the Regulations 2005; and (4)
after not scoring the above threshold required for promotion,
cannot turn around and claim promotion on the basis of seniority
– cum fitness under the Promotion Policy of 1999. Therefore, the
writ petitioners were estopped by their own conduct from claiming
protection under the Promotion Policy of 1999 or the non-statutory
Regulations of 1961 on the subject of promotion.
12.
Learned counsel for the respondents-writ petitioners
defended
the
impugned
judgment
by
making
following
submissions:
1.
that after the conversion of Agricultural Development
Bank into a corporation by virtue of the Ordinance
2002, the employees became employees of the
company. By virtue of Section 6 of the said Ordinance,
service terms and conditions which were in field prior
to its promulgation were made applicable to the
respondent
employees.
The
question
of
their
promotion
which
was
subject
matter
of
the
constitutional petitions had to be governed under the
Civil Appeals No. 269 to 275 of 2011 etc
10
Staff Regulations 1961 and the Promotion Policy
1999;
2.
that the Staff Regulations 1961 and the Promotion
Policy, 1999 are statutory as those have been adopted
by legislative reference. Section 6 of the Ordinance
2002 specifically provides that employees of the
company “shall be subject to the same rules and
regulations as were applicable to them before the
effective date”. In support of this contention, learned
counsel relied on a judgment of this Court in Masood
Ahmad Bhatti Vs. Federation of Pakistan (2012 SCMR
152);
3.
that the ADBP Staff Service Regulations, 1961, prior to
promulgation of ADBP (Amendment) Act, 1973 were
approved by the Federal Government and the same
were
subsequently
approved
by
the
Board
of
Directors. The legal status of the said Service
Regulations came under scrutiny before this Court in
the case reported as 1992 SCMR 1112 and the Court
authoritatively decided it. A reasonable interpretation
of the provisions of this Act, particularly the proviso
appended to subsection (2) of Section 39, would
therefore, be that the said provision would be
applicable prospectively to any regulations made
which fall under clauses (e) and (f) in future. In other
words, if any regulation on these subjects is framed
Civil Appeals No. 269 to 275 of 2011 etc
11
after the date of the coming into force of the
Amendment Act, prior approval of the Federal
Government would be essential for bringing such
regulations in effect. But, it will be difficult to construe
that it would destroy the regulations which had
already come into force prior to the amendment, as
obviously that would amount to giving retrospective
operation to the provisions of the Amendment Act. It
therefore, follows that the remaining Regulations of
1961, other than the substituted Regulations 1995,
having come into force prior to the 1973 amendment,
when no prior approval of the Federal Government
was necessary, shall continue to remain in force and
operative
notwithstanding
the
amendment
of
subsection (2) of section 39;
4.
that the 1961 Staff Regulations were framed under
Section 39 of 1961 Ordinance (un-amended) by the
Board so those were statutory and this Court has
already held so in an unreported judgment of this
Court (in C.P. 495 of 2010) wherein it has been
candidly held as follows:-
“We have no doubt in our minds that the National
University
of
Sciences
and
Technology
(Enforcement of Academic, Service, and Financial
Matters) Statutes, 2005, are statutory in nature as
they were framed in accordance with the
procedure prescribed in the statute. Since this
was the only ground on which leave was granted,
the appeal is dismissed.”
Civil Appeals No. 269 to 275 of 2011 etc
12
5.
that the treatment meted out to respondents in
matters of promotion is discriminatory and violative of
Article 25 of the Constitution inasmuch as while the
regulations pertaining to efficiency and discipline are
statutory and they can invoke the remedy of filing a
petition under Article 199 of the Constitution, but
with regard to promotion they have no remedy and
they are hit by the principle of master and servant;
6.
that if this Court comes to the conclusion that the
1961 Staff Regulations or Promotion Policy of the year
1999 are non-statutory, it would not be in accord with
the canons of equity and justice as the said
conclusion may render them without any remedy or
forum to agitate their grievance. In this context,
learned counsel relied on a judgment of this Court in
Muhammad Amin Vs. President Zara Taraqiati Bank
Ltd (2010 PLC (CS) 710) wherein the Court itself
provided a remedy in terms of para 7 of the Esta Code
to grant the relief which was prayed by the aggrieved;
7.
that in C.P. 427 of 2010, counsel appearing for Zarai
Taraqiati Bank had contended that the Service
Tribunal had no jurisdiction to entertain the appeal
and the Court had repelled the contention holding as
follows:-
“From the above narration, we have no doubt left
in our mind that the respondent’s services are to
be governed by the Rules and Regulations
Civil Appeals No. 269 to 275 of 2011 etc
13
framed under the 1961 Ordinance as in force at
the repeal of Ordinance.”
13.
In his rebuttal, learned counsel for the appellant
submitted as follows:
1)
that it is incorrect to state that any counsel appearing
on behalf of the Zarai Taraqiati Bank had conceded to
the proposition that the 1961 Staff Regulations were
statutory except in one case (C.P. Nos. 434 and 435 of
2009). In those cases, the matter was remanded and a
case decided on concession is not the law declared. He
gave a list of other cases wherein concession was made
by counsel for the appellant and in all those cases the
Regulations/Rules were statutory. The list of those
cases is as under:-
(i)
C.A. 1394 of 1999 etc and C.P. 1208 of 2000
(ii)
Crl. Org No. 44 of 2010 in CA Nos. 749 to 761 of
2009.
(iii) C.P. No. 2726 of 2004
(iv) C.P. No. 1135 of 2010
(v)
C.P. No. 427 of 2010
(vi) C.P. No. 1410 of 2009 & CMA No. 2513 of 2009.
2)
Suggesting a way out he submitted that since there is
no provision of regulations in the 2002 Ordinance and
Section 9 of the same provides for making rules, a
direction can be issued to the Federal Government to
amend the said Ordinance and thereafter the Federal
Civil Appeals No. 269 to 275 of 2011 etc
14
Government may accord the requisite approval in
terms of section 39(2) of the 1961 Ordinance.
14.
Having heard learned counsel for the parties, the
issues which crop up for consideration are as follows:-
1)
whether the old Staff Regulations of 1961 framed by
the Board are non-statutory and if so were the
Constitution
petitions
filed
by
the
respondent
employees maintainable?
2)
whether the respondent employees were disentitled to
any discretionary relief under Article 199 of the
Constitution on account of their own conduct?
15.
Historically statutory rules and orders were the means
by which delegated legislation used to be made in United Kingdom.
"The Rules Publication Act 1893 in England defines "rule making
authority" to include every authority authorized to make any
statutory rules. Statutory rules are defined as rules, regulations or
by-laws under any Act of Parliament, in England. Orders are
excluded from the statutory definition of statutory rules as being
administrative. In England regulation is the term most popularly
understood and the one favoured by the Committee on Ministers'
Powers, who suggested that regulations should be used for
substantive law and rules for procedural law, while orders should
be reserved to describe the exercise of executive power or the taking
of a judicial or quasi judicial decision (See Craies on Statute Law, 7th
Ed. At p. 303). The validity of statutory instruments is generally a
Civil Appeals No. 269 to 275 of 2011 etc
15
question of vires, i.e., whether or not the enabling power has been
exceeded or otherwise wrongfully exercised1."
16.
The "rules" and "regulations" framed under any Act are
meant to regulate and limit the statutory authority. All statutory
authorities or bodies derive their powers from statutes which
create them and from the rules or regulations framed thereunder.
Any order passed or action taken which is in derogation or in
excess of their powers can be assailed as ultra vires. Rules and
regulations being forms of subordinate legislation do not have
substantial difference as power to frame them is rooted in the
statute. Statutory bodies are invariably authorized under the Act to
make or adopt rules and regulations not inconsistent with the Act,
with respect to such matters which fall within their lawful domain
to carry out the purposes of the Act. This rule making power of
such bodies, called 'delegated legislation' has assumed importance
in the contemporary age. "The justification for delegated legislation
is threefold. First, there is pressure on parliamentary time. Second,
the technicality of subject matter necessitates prior consultation and
expert advice on interests concerned. Third, the need for flexibility is
established because it is not possible to foresee every administrative
difficulty that may arise to make adjustment that may be called for
after the statute has begun to operate. Delegated legislation fills
those needs2."
17.
Broadly the salient characteristics of statutory rules
are threefold:
1 Sukhdev Singh etc Vs. Bhagat Ram etc (AIR 1975 SC 1331)
2 AIR 1975 SC 1331
Civil Appeals No. 269 to 275 of 2011 etc
16
i)
Rules or Regulations are framed by statutory or public
body;
ii)
Those are framed under the authority or powers
conferred in the statute;
iii)
Those have statutory Governmental approval or
statutory sanction.
18.
The question as to which rules or regulations are
statutory and how they affect the rights of the employees has been
a subject of comment in several judgments. In Principal, Cadet
College, Kohat Vs. Muhammad Shoab (PLD 1984 SC 170), this
Court considered this issue with reference to Sections 17 & 18 of
the West Pakistan Government Educational & Training Institutions
Ordinance, 1960. Section 17(1) of the said Ordinance provided that
the Government may make rules for carrying out the purposes of
the said Ordinance and Section 18 provided that the Board of
Governors may subject to the approval of the Government, frame
regulations “not inconsistent with the provisions of this Ordinance
and the rules made thereunder, to carry out the purposes of this
Ordinance.” Since the “rules” framed by the Board of Governors,
governing the appointment, promotion, retirement, termination of
service and dismissal of staff employed by the Board had not been
made by the Government, those ‘rules’, the Court held “could not
be regarded as “rules” under section 17, nor having been approved
by the Government, be treated as Regulations under section 18
thereof. These “rules” therefore could only be regarded to be in the
nature of mere instructions issued for the guidance of the Board of
Civil Appeals No. 269 to 275 of 2011 etc
17
Governors and the Principal of the Cadet College, Kohat.” This view
was reiterated in Zia Ghafoor Piracha Vs. Chairman, Board of
Intermediate and Secondary Education (2004 SCMR 35) wherein in
para 7, it was held as follows:-
“7.
The Service Regulations of the Employees of the Board
were framed by the Board. However, as has been
determined by the learned Single Judge of the Lahore High
Court, the Government, as required by the Act, has not given
its
formal
approval
to
these
Regulations.
In
these
circumstances, these Regulations may be termed as internal
instructions or domestic rules having no status of statutory
rules. Reference in this regard is made to the case of “The
Principal Cadet College, Kohat and another V. Muhammad
Shoab Qureshi (PLD 1984 SC 170). In that case, the
Government
under
the
West
Pakistan
Government
Educational and Training Institution Ordinance, 1960 was
empowered to make Rules for carrying out the purposes of
the Ordinance under section 17 thereof. Similarly, under
section 18, the Board was also empowered to make
Regulations subject to approval of the Government. There
was identical situation in the aforesaid case as is now
prevailing in the present case because the Regulations
though made by the Board but the approval of the
Government had not been secured. Similarly, the Government
too had not made any Rules as mandated by section 17
ibid.”
19.
An identical issue was considered by this Court in
Asad Bashir Vs. Chairman Board of Intermediate and Secondary
Education, Lahore and others (2006 PLC (CS) 110) and relying on
the afore-referred precedent case law, the Court upheld the
judgment of the learned Lahore High Court and held that since the
rules / regulations governing the service of the appellants were
non-statutory, the Constitution petitions were not maintainable.
Civil Appeals No. 269 to 275 of 2011 etc
18
20.
In Muhammad Mubeen-us-Salam Vs. Federation of
Pakistan (PLD 2006 SC 602), the question inter alia of the remedies
available to employees who are governed by statutory rules was a
moot point and this Court observed in para 50 as under:-
"Prima facie, this provision of law, i.e. Section 2-A of the STA,
1973 has not advanced the cause of employees of
Corporations, etc. by providing them remedy before the
Service
Tribunal
because
initially
in
the
case
of
a
Corporation/body, etc. if it has statutory backing, and rules
are framed thereunder, its employees other than the workers,
used to invoke the jurisdiction of the High Court under Article
199 of the Constitution i.e. a remedy which is always
considered to be speedy, expeditious and inexpensive;
whereas the employees governed by the relationship of
master and servant rule used to approach the Civil Court for
the redressal of their grievance while workers and the
workmen were eligible to seek remedy before the local Labour
Courts, functioning under the new dispensation of Industrial
Relation Ordinance, 2002, at the Divisional level with a right
of appeal before the respective High Courts and appeal under
Article 185(2) or a petition for leave to appeal under Article
185(3) of the Constitution before this Court, under which this
Court enjoys vast jurisdiction, as compared to limited
jurisdiction under Article 212(3) of the Constitution."
21.
Similarly in Executive Council Allama Iqbal Open
University Vs. Muhammad Tufail Hashmi (2010 SCMR 1484), this
Court held as follows:-
"9. The principle perceived from the above judgments is that
the employees of those organizations, which are discharging
functions in connection with the affairs of Federation, can
approach the learned High Court under Article 199 of the
Constitution but subject to the condition if their services are
protected under the statutory rules."
Civil Appeals No. 269 to 275 of 2011 etc
19
22.
Statutory rules create certain rights for employees and
impose obligations on the statutory authorities. The statutory
authorities and functionaries cannot deviate or act in derogation to
those rules or regulations. Any order passed or action taken by a
public authority which is in conflict with those statutory rules can
be challenged under Article 199 of the Constitution.
23.
As explained in para 4 above, the appellant Bank was
successor to two institutions (Agricultural Development Finance
Corporation and Agricultural Bank of Pakistan) wherein prior
approval of the Central Government was required to make the
regulations. This requirement was done away with in the
Agricultural Development Bank Ordinance, 1961. Under Section
39 of the said Ordinance, the Board of the Bank was empowered to
make regulations and there was no requirement of prior approval
of the Government. Section 38 provided for making of the rules by
the Government and not by the Board. The appellant Bank was
established in February, 1961 vide the 1961 Ordinance by
amalgamating two institutions (Agricultural Development Finance
Corporation and Agricultural Bank of Pakistan). Immediately after
the promulgation of the Ordinance, 1961 as the Board had yet to
be constituted, the draft regulations were sent to the Government
for approval. After the Government’s approval they had been
brought into force with effect from the date of establishment of
Agricultural Development Bank of Pakistan and remained in field
till 3rd / 4th May, 1961, when these were placed before the Board of
Directors, ADBP in its first meeting as draft regulations and
approved with certain amendments. The regulations thus made by
Civil Appeals No. 269 to 275 of 2011 etc
20
the Board were known as “Agricultural Development Bank (Staff
Service) Regulations, 1961 (Regulations, 1961). The approval of the
regulations by the Government prior to the first meeting of the
Board may be inconsequential at that stage as there was no
statutory
requirement
for
that
but
it
indicated
that
notwithstanding the deletion of requirement of Governmental
approval, the Government continued to exercise central power over
the Bank. This was so because there were many enabling
provisions in the Ordinance for the Government to do so including
the rule making power in terms of Section 38, which reads as
follows:-
"38.
Rules.--- (1) The Central Government may make rule
for carrying out the purposes of this Ordinance and where
the regulations framed under the succeeding section are
inconsistent with the rules framed under this section, the
rules shall prevail."
24.
Section 39 of the Ordinance, 1961 was however,
amended by the Agricultural Development Bank (Amendment) Act,
1973 and following proviso was added, which made prior approval
of regulations by the Government mandatory:-
“Provided that no regulation made with respect to the matters
mentioned in clauses (e) and (f) shall take effect until it has
been approved by the Federal Government.”
25.
The afore-mentioned amendment did not invalidate
the regulations made prior to it when there was no requirement of
approval by the Federal Government. The legal effect of the
addition of the proviso to Section 39 (2) of Ordinance, 1961 was
considered by this Court in the case Anwar Hussain Vs.
Civil Appeals No. 269 to 275 of 2011 etc
21
Agricultural Development Bank of Pakistan (1992 SCMR 1112) and
it was held as follows:-
“A reference to subsection (2) of section 1 of the Agricultural
Development Bank (Amendment) Act (XII of 1973), plainly
shows that this Act came into force on the date of its
promulgation
and
not
retrospectively.
A
reasonable
interpretation of the 6 provisions of this Act, particularly the
proviso appended to subsection (2) of section 39, would
therefore,
be
that
the
proviso
would
be
applicable
prospectively to any Regulations made which fall under
clauses (e) and (f) in the future. In other words, if any
Regulations on these subjects are framed after the date of the
coming into force of the Amendment Act, prior approval of the
Federal Government would be essential for brining such
Regulations in effect. But, it will be difficult to construe the
provisions of the proviso to destroy the Regulations which
had already come into force prior to the amendment, as
obviously that would amount to giving retrospective operation
to the provisions of the Amendment Act. It therefore, follows
that the remaining Regulations of 1961, other than the
substituted Regulation 95, having come into force prior to the
1973 amendment, when no prior approval of the Federal
Government was necessary, shall continue to remain in force
and operative notwithstanding the amendment of subsection
(2) of section 39.”
26.
Thus as the amendment in Section 39(2) of the
Ordinance, 1961 requiring Federal Government’s approval for
making regulations was held to have prospective effect, the Staff
Regulations, 1961 remained intact. Appellant Bank in 2002 was
converted into a company with the promulgation of the
Agricultural Development Bank of Pakistan (Reorganization and
Conversion) Ordinance, 2002 and Agricultural Development Bank
Ordinance 1961 was repealed. Section 6 of the Ordinance, 2002
provided continuation in service to the employees and stipulated
Civil Appeals No. 269 to 275 of 2011 etc
22
that they shall be subject to the same rules and regulations. It
reads as follows:
“6. Continuation in service of the company.—(1) The
employees of ADBP who were in the service of ADBP before
the effective date shall stand transferred to and become the
employees of the Company as of the effective date on the
same terms and conditions and shall be subject to the same
rules and regulations as were applicable to them before the
effective date.
(2) Notwithstanding anything contained in law, contracts,
agreement or the conditions of service no person transferred
to the Company in pursuant to subsection (1) shall be
entitled to any compensation by reason of such transfer.”
27.
The afore-referred statutory provision provided two
fold security to the employees i.e. (i) the employees of the Bank
stood transferred and became employees of the Company, and (ii)
they shall be subject to the same rules and regulations as were
applicable to them before the effective date. On account of the
afore-referred statutory intervention, the regulations which were
non-statutory, acquired a statutory status under the new
dispensation and the employees acquired a legal right for their
enforcement.
The
Constitutional
petitions
were,
therefore,
maintainable on that score. In none of the precedent cases i.e.
Principal Cadet College Kohat supra, Zia Ghafoor Piracah supra
and Asad Bashir supra referred to in paras 18 & 19 above, the
effect of a statutory intervention on the rules which may have been
non-statutory was a moot point. Those cases, therefore, are
distinguishable from the case in hand. In Masood Ahmed Bhatti
Vs. Federation of Pakistan (2012 SCMR 152), the effect of such an
intervention (though under a different law) was considered. In the
Civil Appeals No. 269 to 275 of 2011 etc
23
said case the Telephone and Telegraph Departments were
converted
into
a
Corporation
through
the
Pakistan
Telecommunication Corporation Act, 1991 (hereinafter to be called
as PTC Act). Section 9 of the PTC Act stipulated that
“notwithstanding anything contained in any law, contract or
agreement, or in the conditions of service, all departmental
employees shall, on the establishment of the Corporation, stand
transferred to, and become employees of the Corporation, on the
same terms and conditions to which they were entitled immediately
before such transfer, provided that the Corporation shall be
competent to take disciplinary action against any such employee.”
The Court held that the afore-referred provision would have
following effect:
“9.
It is clear from this legal provision, that the rules
relating to the terms and conditions of employment of the
appellants were given statutory status. This status was on a
higher plane than the status of regulations framed by way of
subordinate legislation under section 20 of the PTC Act.
Consequently, whatever rules were in place governing the
employment of the appellants in the T&T Department, were
adopted by reference in the statute itself and were made
applicable to and binding on the Corporation. There can be
little doubt that by virtue of section 9 ibid such rules acquired
statutory status having been sanctified by the PTC Act itself.
We can, therefore, conclude without difficulty that the rules
of employment which were applicable to the appellants
during their service with the Corporation were statutory
rules.”
28.
In Civil Appeal Nos. 1416 & 1417 of 2009 & Civil
Petition No. 176-Q/2009 (Muhammad Tariq Badr etc Vs. National
Bank of Pakistan), this Court considered the effect of a similar
Civil Appeals No. 269 to 275 of 2011 etc
24
provision in the Bank Nationalization Act, 1974. Section 13 of the
said Act inter alia stipulated that "all officers and other employees
of a bank shall continue in their respective offices and employment
on the same terms and conditions". This Court found that on
account of this provision the employees shall continue to be
governed under the rules in vogue prior to the amendment in law.
The Court observed "it is an admitted and undisputed factual reality
that before the commencing day of 1974 Act, 1973 Rules were
validly in force and for all intents and purposes were serving as the
conclusive terms and conditions of service of the employment for the
N.B.P. officers etc. Thus, by virtue of the Section 13(1), such rules
were specifically saved, guarded and shielded instead of having
been displaced/replaced/rescinded or overridden. The language of
the Section 13(1) without any shadow of doubt, spells out the clear
intendment of the legislature to preserve the earlier terms and
conditions of the nationalized bank, which in the present case
undoubtedly were 1973 Rules, rather than being obliterated."
29.
The effect of Section 6 of the Ordinance, 2002 on the
Staff Regulations, 1961 and the Promotion Policy, 1999 is similar
to the effect of Section 9 of the PTC Act on the Telephone and
Telegraph Department Rules or of Section 13 of the Bank
Nationalization Act, 1974 i.e. on account of the statutory
intervention those rules acquired a statutory status. In Civil
Petition No. 2726/2004 (Muhammad Amin Vs. President Zarai
Taraqiati Bank Ltd (2010 PLC (CS) 710), the moot point inter alia
before this Court was whether the employee of the appellant Bank
(Deputy Director of Agricultural Development Bank) was governed
Civil Appeals No. 269 to 275 of 2011 etc
25
by statutory rules and a three Members Bench of this Court held
that those were statutory. In Civil Petition No. 427/2010, Zarai
Taraqiati Bank Limited was the petitioner and the questions before
this Court inter alia were the effect of Section 6 of the Ordinance
and whether the Rules and Regulations were statutory? The Court
while dismissing the petition held as under:-
"5.
The plain reading of section 6 of the Ordinance, 2002,
reproduced above, admits of no other interpretation but that
the employees of the erstwhile A.D.B.P., who were transferred
by operation of law to Z.T.B.L and had not opted to be
governed by the Service Rules of the latter were to be
governed by the terms of service embodied in 1961 Ordinance
and Rules framed thereunder. The learned counsel for the
petitioner also made no attempt to give a different
construction to the said statutory provision.
6.
Thus the respondent, whose services were transferred
from A.D.B.P to Z.T.B.L was to be governed by the Rules and
Regulations framed under the 1961 Ordinance. Upon the
repeal of the 1961 Ordinance, the Rules and Regulations
framed thereunder are no longer subject to any amendment or
change. This is also clarified by section 66 of the Ordinance,
2002, which says "…….. and shall be subject to the same
rules and regulations as were applicable to them before the
effective date." "The effective date" is the date specified by the
Federal Government under sub-section 1 of section 4 of the
Ordinance 2002 for the transfer of assets, contracts and
liabilities etc from the A.D.B.P to Z.T.B.L. The terms and
conditions of service of the officers of Z.T.B.L, falling in the
same category as the respondent, are to be regulated by the
Rules and Regulations that were in force on the 'effective date'
mentioned in Ordinance 2002.
.
.
.
.
.
Civil Appeals No. 269 to 275 of 2011 etc
26
.
8.
From the above narration, we have no doubt left in our
mind that the respondent's services are to be governed by the
Rules and Regulations framed under the 1961 Ordinance as
in force at the repeal of the Ordinance." (Emphasis is
supplied)
30.
Section 6 of the Ordinance, 2002, Section 13 of the
Bank Nationalization Act, 1974 and Section 9 of the PTC Act
discussed in the preceding paras are all instances of legislation by
reference. Unlike legislation by incorporation, provisions of some
other law are not specifically incorporated in the new Act but those
would be read into the said Act. Corpus Juris Secundum explains
this principle in terms as follow:-
"…. Where the reference in an adopting statute is to the law
generally which governs the particular subject, and not to any
specific statute or part thereof … the reference will be held to
include the law as it stands at the time it is sought to be
applied, with all the changes from time to time, at least as per
on the changes are consistent with the purpose of the
adopting statute."
31.
In Wood's Estate case [1886] 31 Ch D 607, the Court
while commenting upon this mode of legislation observed that "if a
subsequent Act brings into itself by reference some or the clauses of
a former Act, the legal effect of that, as has often been held, is to
write those sections into the new Act just as if they had been
actually written in it with the pen or printed in it and the moment
you have those clauses in the later Act, you have no occasion to
refer to the former Act at all." In Rajya Vs. Gopikabai (AIR 1979 SC
79), the Indian Supreme Court, highlighted the broad categories of
legislation by reference and opined as under:
Civil Appeals No. 269 to 275 of 2011 etc
27
"Broadly speaking, legislation by referential incorporation falls
into two categories: First where a statute by specific reference
incorporates the provisions of another statue as of the time of
adoption. Second, where a statute incorporates by general
reference the law concerning a particular subject as a genus.
In the case of the former, the subsequent amendment made in
the referred statute cannot automatically be read into the
adoption statute. In the case of latter category, it may be
presumed that the legislative intent was to include all the
subsequent amendments also made from time to time in the
general law on the subject adopted by general reference. This
principle of construction of a reference statute has been aptly
summed up by Sutherland thus:
A statute which refers to law of a subject generally
adopts the law on the subject as of the time the law
is invoked. This will include all the amendments
and modifications of the law subsequent to the time
the reference / statute was enacted.
32.
Appellants' learned counsel could not dispute the fact
that the expression used in Section 6 of the Ordinance, 2002 that
the employees "shall be subject to the same rules and regulations as
were applicable to them before the effective date" is legislation by
reference but he maintained that it refers only to those rules which
had been duly approved by the Central Government i.e. the Zarai
Taraqiati Bank Limited Staff Regulations, 2005 and not the
Agricultural Development Bank Staff Regulations, 1961 or the
Promotion Policy of 1999 as those were non-statutory having not
been approved by the Federal Government. This argument would
not be tenable. First, because there is nothing in the language of
Section 6 of the Ordinance, 2002 to warrant such an inference and
second, in the precedent case law to which reference has been
made in para 29 above, this Court has held otherwise and there is
Civil Appeals No. 269 to 275 of 2011 etc
28
nothing on record to indicate that the said judgment (Civil Petition
No. 427/2010) was ever challenged in review.
33.
In the light of what has been discussed in the
preceding paras, the Staff Regulations, 1961 and the Promotion
Policy, 1999 stand incorporated by way of legislative reference and
thereby have acquired a statutory status for the respondent
employees who stood transferred and became employees of the
company in terms of Section 6 of the Ordinance, 2002. The writ
petitions which sought enforcement of those regulations were
maintainable.
34.
This brings us to the issue No. 2 i.e. whether the
respondent employees were disentitled to any discretionary relief
under Article 199 of the Constitution on account of their own
conduct?
35.
To appreciate this issue, it would be pertinent to keep
in mind the Regulations / Policy which was in vogue prior to the
promulgation of Ordinance 2002 i.e. Regulation No. 17 of the
Agricultural Development Bank Staff Service Regulations, 1961 &
Promotion Policy, 1999 under which respondent employees wanted
their cases of promotion to be considered. Regulation 14(h) of the
Zarai Taraqiati Bank Limited Staff Regulations, 2005 (notified on
27.6.2007) may also be kept in juxta position under which their
promotion matters have been processed. This is necessary so as to
appreciate whether the procedure laid therein in substance is the
same as in Promotion Policy, 1999 and whether employees were
likely to be prejudiced.
Civil Appeals No. 269 to 275 of 2011 etc
29
Agricultural Development Bank
Staff Service Regulations, 1961
Zarai Taraqiati Bank Limited
Staff Regulations, 2005
“17. Promotion:- (a) Promotions
to Class I and Class II shall be
made on merit and no employee
shall have a claim to be promoted
to these posts by virtue of seniority
alone. Promotions to class III and
class IV posts shall be made on the
basis
of
seniority-cum-fitness
except in cases where a post is
declared as a selection post by the
Chairman in which case promotion
shall be made on merit. Should an
employee officiating in a higher
post shows signs of deterioration
while he is so officiating, he shall
be
liable
to
immediate
and
summary reversion to the lower
post previously held by him.
(b)
For promotion to the posts
for
which
special
qualifying
examinations or other conditions
have been specifically laid down,
only the employees who passes
such examination and fulfills such
other conditions shall be eligible
and no relaxation shall be made in
this behalf except, in special cases,
by the competent authority.
14(h) Promotion for VP and above
shall be based on merit and open
competition,
interviews
and
selection by a promotion committee
to be constituted by the President.
Vacancies for VP and above as
such shall be advertised internally
and externally.”
Promotion Policy
"1.
Promotions of the bank employees to the next higher
grade will be made with immediate effect instead of
retrospective effect.
Civil Appeals No. 269 to 275 of 2011 etc
30
2.
Promotions against 95% of vacancies shall be made on
seniority-cum-fitness basis.
3.
Promotions against 5% vacancies may be made on
accelerated basis with the approval of Board of
Directors.
"25% of the quota for accelerated promotion shall be for
HO employees and 75% be reserved for field
personnels. The criteria for accelerated promotion as
laid down hereunder be strictly adhered to.
Persons posted in the field offices should have atleast
95% recovery rate for at least 03 years out of last 05
years and must have scored 85 marks in aggregate in
the cadre and have earned very good (A-I) ACRs during
the last 03 years. As regards the officers and staff
posted in the field but not directly related with the
recovery operations, the criteria would be the same as
applicable for the employees posted in Head Office.
For employees posted in HO: they should have scored
at least 85 marks in aggregate in the cadre and have
earned very good (A-I) ACRs during the last 03 years."
4.
The
employees
on
deputation
to
Government
Departments or other organizations, will be considered
for promotion, but their promotion shall take effect from
the date they return to the Bank. However, the
employees who have gone out of Bank and have kept
their lien with the Bank, will only be considered for
promotion after they join back and have earned atleast
one Good ACR in the Bank.
5.
In case of an employee who has been superseded on
account of minor penalty imposed in the present grade
or for adverse ACR etc will be considered for promotion
next year strictly on the basis of promotion criteria.
6.
While determining the total length of service of an
employee in a particular cadre, the period of extra
Civil Appeals No. 269 to 275 of 2011 etc
31
ordinary leave will be excluded from the total service of
such employee in the cadre.
7.
Recovery Division, in the month of July every year,
shall
fix
recovery
targets
for
each
region
for
consideration at the time of promotion keeping in view
the total recoverables and pattern of growth so that the
area recovery parameters are available for guidance of
the DPC for each financial years. The officer who fails
to achieve these targets shall not be promoted.
8.
Those
who
have
joined
on
reinstatement
after
termination of service or on punishment of down
gradation will be considered for promotion if they have
atleast served three years after reinstatement or down-
gradation provided they fulfill the promotion criteria.
9.
The employees getting promotion as Officers will be
posted in the Province / Place of their domicile provided
clear vacancies are available.
Professional Qualification
10.
In order to promote professionalism and encourage
employees and officers to pass DAIBP Part-I & Part-II, a
weightage of 5 marks for Part-I and 10 marks for both
the parts has been kept in evaluation qualification
effective for promotion upto the level of Directors due in
year 2001.
10(A)
The officers of the following categories would be
required to serve compulsorily in the field on promotion
and promotion will only be effective subject to joining at
the new place of posting:-
For promotion from
Minimum field service required
i)
EAD to AD
2 years in the Cadre
ii)
AD to DD
1 year in the Cadre
iii)
DD to JD
1 year in the Cadre"
36.
Regulation No. 17 of the Agricultural Development
Bank Staff Service Regulations, 1961 was superseded by
Promotion Policy of the year 1999. A bare perusal of the said Policy
Civil Appeals No. 269 to 275 of 2011 etc
32
would indicate that the promotion was to be based on seniority,
qualification and competence. The objective being to ensure
"advancement of employees in career on the basis of achievement
and experience" and eligibility criterion was laid. Promotions to
95% of vacancies were to be made on seniority-cum-fitness basis,
against 5% vacancies accelerated promotion was envisaged on the
basis of approval by the Board of Directors, the past performance
of employees reflected in the recovery of loan, Annual Confidential
Reports of the preceding three years and detailed guidelines were
provided for various categories in terms of paras 4 to 10(A). Para
14(h) of the Zarai Taraqiati Bank Limited Staff Regulations, 2005
stipulate the following:
i)
promotion for VP and above shall be based on merit
and open competition, interviews and selection by a
promotion committee to be constituted by the
President;
ii)
vacancies for VP and above as such shall be advertised
internally and externally.
37.
Although the common element in both the above
provisions is the same i.e. promotion on merit based on
competition, the mode envisaged to gauge the merit is distinct. The
distinguishing features of the mode of determining merit in terms
of the afore-mentioned provision of the Zarai Taraqiati Bank
Limited Staff Regulations, 2005 are open competition, interview
and selection by a promotion committee to be constituted by the
President and advertisement (both internal and external) for the
Civil Appeals No. 269 to 275 of 2011 etc
33
post of Vice President. Neither under Regulation 17 of the Staff
Regulations, 1961 nor under the Promotion Policy, 1999, there was
any provision for a Selection Committee or 25 marks for the
interview or for internal or external advertisements as given in the
Regulation 14(h) of the Staff Regulations, 2005. The procedure laid
down reflects evaluation of the employees for purposes of
promotion on the basis of their performance in interviews and their
performance during service seems not to have been given much
weightage. The argument of appellant's learned counsel that the
criterion laid down in Regulation 14(h) and Promotion Policy are
substantially the same is not tenable.
38.
Section 6 of the Ordinance, 2002 inter alia mandated
that the employees of the newly created Company "shall be subject
to the same rules and regulations as were applicable to them before
the effective date", the respondent employees acquired a statutory
right to be considered for promotion in accord with the mode of
promotion laid down in the Regulations which were in vogue prior
to the promulgation of the Ordinance. Admittedly, their promotion
cases were not considered in terms of the Promotion Policy, 1999,
which had the approval of the Board of Directors of the
Agricultural Development Bank. In Sajid Hussain Vs. Muhammad
Latif (1992 SCMR 468), a Full Bench of the Supreme Court of Azad
Jammu & Kashmir upheld the judgment of the Service Tribunal
which had allowed the appeal of the aggrieved employee as his case
of promotion had not been dealt with in accordance with the
prescribed rules and held as follows:-
Civil Appeals No. 269 to 275 of 2011 etc
34
"It is provided in section 4 of the Civil Servants Act that
appointment to a civil service or a civil post shall be
made in the prescribed manner by the Government, or
by a person authorised by it in this behalf. The word
`prescribed' is defined in section 2 of the Act to mean
`prescribed by rules'. The scheme of Civil Servants Act
shows that if a person is promoted to a post this is
termed as an appointment by promotion. In the AJ&K
Civil Servants (Appointment and Conditions of Service)
Rules, 1977 (hereinafter to be. referred to as the Rules
of 1977) rule 3(1) provides in specific terms that an
appointment to a post shall be made by promotion,
transfer or initial recruitment. . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . .
These Rules eliminate to a great extent arbitrary
exercise of powers by the concerned authority in the matter of
appointment and promotion of civil servants. The wording in
which the Rules referred to above have been couched show,
in unmistakable words that these Rules are mandatory.
Therefore, the conclusion is that the post of Secretary cannot
be legally filled up whether by promotion or otherwise unless
there exist rules conforming to the requirement of rule 10
mentioned above. We, therefore, uphold the view of the
Service Tribunal in this aspect."
39.
So far as the argument that respondents having
derived all monetary benefits of Regulations 2005 and therefore,
they could not have invoked discretionary jurisdiction is
concerned, the same would not be tenable in the facts and
circumstances of this case. First because there is no estoppel
against law. Second, no document has been placed on record to
indicate that the option exercised was voluntary. If it was a fait
accompli, this would not prevent them to seek enforcement of the
procedure laid down in Regulations for promotions which were in
vogue prior to the promulgation of Ordinance, 2002. Third, they
challenged the entire impugned process at the earliest before
formal orders could take effect and fourth the monetary benefits
Civil Appeals No. 269 to 275 of 2011 etc
35
received by the respondents could be adjusted by the Bank if so
advised.
40.
For what has been discussed above, we do not find
any merit in these appeals and in petition, which are dismissed.
| {
"id": "C.A.269_2011.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT: MR. JUSTICE MIAN SAQIB NISAR, CJ
MR. JUSTICE UMAR ATA BANDIAL
MR. JUSTICE FAISAL ARAB
CIVIL APPEALS NO.26 OF 2009 AND 228 OF 2010
(on appeal against the judgment dated 16.10.2008 and
27.04.2009 of the High Court of Sindh, Karachi passed in
I.T.C.293/1992 and I.T.A.594/2000 respectively)
Commissioner of Income Tax Karachi
(in both cases)
…Appellant(s)
VERSUS
M/s. Hassan Associates (Pvt) Ltd.
(in CA 26/09)
M/s. National Refinery Ltd. Karachi
(in CA 228/10)
…Respondent(s)
For the Appellant(s):
(in both cases)
Muhammad Siddiq Mirza
For the Respondent(s):
(in CA 26/09)
(in CA 228/10)
Ms. Lubna Pervez, ASC.
Mr. Iqbal Salman Pasha, ASC.
Date of Hearing:
16.05.2017
…
ORDER
MIAN SAQIB NISAR, CJ.- The key question involved in these
appeals with the leave of the Court is whether the amounts claimed to be
expenditures by the respondents (in both cases) in their income tax returns
are permissible deductions falling within the purview of Section
23(1)(xviii) of the Income Tax Ordinance, 1979 (the Ordinance) or they fall
within the ambit of fine or penalty for infraction of law to be disallowed in
terms of the law laid down in the case of Commissioner of Income Tax
Vs. Premier Bank of Pakistan [1999 PTD 3005 = (1999) 79 Tax (SC)
589].
2.
Heard. The arguments of the learned counsel in both the
cases shall be reflected in the course of this opinion. Since the facts of
CIVIL APPEALS NO.26 OF 2009 AND 228 OF 2010
-2-
both the appeals are distinct, we shall first examine the relevant law and
then discuss the individual cases. Section 15 of the Ordinance provides
for various heads of income for the purposes of charge of income tax and
computation of total income, one of which is ‘income from business or
profession’ [sub-part (d)]. Section 22 of the Ordinance stipulates the
different incomes chargeable under the head ‘income from business or
profession’. Section 23(1) of the Ordinance goes onto list the allowances
and deductions to be made when computing the income under the head
‘income from business or profession’, part (xviii) whereof reads as under:-
23.
Deductions.- (1) In computing the income under the
head "Income from business or profession", the following
allowances and deductions shall be made, namely:-
(xviii) any expenditure (not being in the nature of capital
expenditure of personal expenses of the assessee) laid out or
expended wholly and exclusively for the purpose of such
business or profession;
In the judgment of Premier Bank (supra) this Court was faced with the
question as to whether the liabilities incurred by Premier Bank Limited
(the respondent assessee therein) on account of payment of penal interest under
Section 36(4) of the State Bank of Pakistan Act, 1956 (the Act, 1956) for
having failed to maintain the credit balance levels as required by Section
25 of the Banking Companies Ordinance, 1962 and Section 36(1) of the
Act, 1956, can be claimed as deductions in terms of Section 10(2)(xvi) of
the repealed Income Tax Act, 1922 (the Act, 1922). It was held as under:-
9.
…revenue expenses incurred by the assessee wholly
and exclusively for the purpose of his business-can
legitimately be claimed by him as an allowable deduction
CIVIL APPEALS NO.26 OF 2009 AND 228 OF 2010
-3-
under section 10(2)(xvi) [of the repealed Income tax Act,
1922], but expenditure incurred as penalty or fine paid on
account of infraction of law cannot be permitted as
expenditure laid out wholly or exclusively for the purpose
of the business of the assessee. However, in case of
expenditure which, although, has been incurred by the
assessee on account of infringement of a provision of a
statute, but is not in the nature of penalty, the question
whether such expenditure is admissible under section
10(2)(xvi), or not, would depend upon the circumstances of
each case…
[Emphasis supplied]
It is pertinent to note that Section 10(2)(xvi) of the Act, 1922 is almost
identically worded as Section 23(1)(xviii) of the Ordinance, the former of
which read as under:-
10. Business.- (2) Subject to the provisions of this Act such
profits or gains shall be computed after making the following
allowances,, namely;-
(xvi)
any expenditure not being in the nature of capital
expenditure of personal expenses of the assessee laid out or
expended wholly and exclusively for the purposes of such
business, profession or vocation;
Thus, the reasoning in the Premier Bank case (supra) would very well
apply to the corresponding provision of Section 23(1)(xviii) of the
Ordinance. Therefore, according to Section 23(1)(xviii) of the Ordinance,
any expenditure, which is not in the nature of capital expenditure of
personal expenses of the assessee, is laid out or expended wholly and
exclusively for the purpose of such business or profession, shall be
deducted while computing the income under the head ‘income from
business or profession’. However, as per the law laid down by this Court
CIVIL APPEALS NO.26 OF 2009 AND 228 OF 2010
-4-
in the case of Premier Bank (supra) in which the pari materia provision of
Section 10(2)(xvi) of the Act, 1922 was being examined, any expenditure
incurred as a penalty or fine paid on account of an infraction, breach or
violation of law would not be allowed to be an expenditure laid out
wholly or exclusively for the purpose of the business of the assessee. As
per the said judgment, as regards expenditure which an assessee has
incurred on account of a violation of law but is not in the nature of a
penalty or fine, the question whether such expenditure would be
admissible under Section 23(1)(xviii) of the Ordinance or not would
depend upon the facts and circumstances of each case.
It must also be noted that it was after the Premier Bank case
(supra) that the legislature inserted vide Finance Ordinance, 2000, Section
24(j) in the Ordinance which made “any expenditure incurred on account of
payment of a fine or penalty for the violation of any law, rule or regulation for the time
being in force” inadmissible as a deduction. A very similar provision was
retained in Section 21(1)(g) of the Income Tax Ordinance, 2001. Since
these two provisions were referred to by the learned counsel for the
appellant (in both appeals), we would like to observe that they (the provisions)
have in effect introduced in statutory form, the law that this Court had
laid down in Premier Bank’s case (supra). However since they were not in
force during the assessment years in question, we shall not delve into
them any further.
3.
We shall now advert to the facts of each case and apply the
law thereto.
Civil Appeal No.26/2009
4.
A private limited company indulged in the business of
construction, the respondent in this appeal was awarded a contract by
CIVIL APPEALS NO.26 OF 2009 AND 228 OF 2010
-5-
the Government of Punjab (GoP) for the construction of a hockey stadium
subject to furnishing of a performance bond (bank guarantee) to the tune of
Rs.2,065,000/-. The GoP encashed the bank guarantee during the
assessment year 1985-86 for alleged breach of contract by the
respondent. The respondent claimed the said amount as expenditure in
the income tax return filed for the relevant assessment year and also
filed a civil suit against such encashment. The Income Tax Officer
disallowed the said amount as expenditure and added it to the
respondent’s income on the ground that it (the amount) was recoverable
from the GoP. The Commissioner of Income Tax (Appeals) [CIT(A)] and the
Income Tax Appellate Tribunal (ITAT) dismissed the respondent’s appeals
and upheld the addition. The ITAT refused the respondent’s application
for approval to refer the question to the learned High Court under
Section 136 of the Ordinance, against which the respondent filed a
reference before the learned High Court to consider the question,
“Whether on the facts and in the circumstances of the case the learned Income Tax
Appellate Tribunal was justified in confirming the disallowance of the claim of
enchasment (sic) of performance bond by the Government of Punjab”. The learned
High Court answered the question in the negative vide impugned
judgment and the expenditure was allowed for the reason that the said
amount was expended wholly and exclusively for the purpose of business
and therefore, was allowable under section 23(1)(xviii) of the Ordinance,
hence this appeal with the leave of the Court dated 2.1.2009 to consider
whether “…the view taken by the High Court is contradictory to the view taken by this
Court in the case of Commissioner of Income Tax Vs. Premier Bank Ltd, Karachi [
(1999) Tax 589 (SC Pak)] as the judgment of this Court was not properly appreciated.”
5.
It is the appellant’s case that the encashment of the bank
guarantee was due to the respondent’s failure to fulfill its contractual
CIVIL APPEALS NO.26 OF 2009 AND 228 OF 2010
-6-
obligation, therefore, it was a penalty and cannot be allowed as an
expense. He also argued that such payment was a violation of the
Contract Act, 1872 (the Act, 1872) and thus was a breach of the law,
therefore was not permissible as an expenditure according to Premier
Bank’s case (supra). On the other hand, it is the respondent’s case that
the encashment of the bank guarantee was pursuant to a business
transaction between the respondent and the GoP which could not be
regarded as a fine or penalty and was not an infraction of law as per
Premier Bank’s case (supra) which is not attracted in the instant case.
6.
At this juncture, we find it appropriate to consider the
instances as to what constitutes an expenditure laid out or expended
wholly and exclusively for the purpose of a business or profession. As
regards the cases from the Pakistani jurisdiction, in Commissioner of
Income Tax, Karachi Vs. Eastern Automobiles Ltd., Karachi [(1967)
15 TAX 233] it was held that the damages paid for breach of contract
were an allowable expenditure. In Karachi Steam Navigation Co. Ltd.
Vs. Commissioner of Income Tax [(1967) 15 TAX 73] the learned High
Court of Sindh held that damages paid in settlement of litigation for
breach of contract was an expenditure wholly and exclusively made for
the purposes of the business and was thus an admissible expenditure.
7.
We now advert to the cases from the Indian jurisdiction. In
Hind Mercantile Corporation Ltd. Vs. Commissioner of Income-Tax,
Madras [(1963) 49 ITR 23] the Madras High Court held that the
amounts paid by way of damages and legal expenses were allowable as
an expenditure in computing the profits and gains of the assessee’s
business as such loss incurred in the course of the business was
incidental to and intimately connected with the conduct of the business
and for the purpose of earning profits for the business. In Commissioner
CIVIL APPEALS NO.26 OF 2009 AND 228 OF 2010
-7-
Of Income-Tax (Central) Vs. Inden Biselers [(1973) 91 ITR 427] again
the Madras High Court held that the discharge of promissory notes was a
legal obligation of the assessee incurred in the course of and incidental to
the business, therefore the damages paid by the assessee was a revenue
loss incurred in the course of carrying on of the business and, therefore,
liable to be deducted as an expenditure. In Addl. Commissioner Income
Tax Vs. Rustam Jehangir Vakil Mills Ltd. [(1976) 103 ITR 298] it was
held by the High Court of Gujarat that the payment made to the Textile
Commissioner by the assessee for contravention of the directions given
by the Textile Commissioner was not in the nature of penalty and was
incidental to the carrying on of the assessee’s business and was thus
was an allowable business expenditure. In Commissioner Income Tax
Vs. Tarun Commercial Mills Co. Ltd. [(1977) 107 ITR 172] it was held
by the Gujarat High Court that the amount paid to the Textile
Commissioner for non-fulfilment of the assessee’s obligation contained in
the bond it executed with the Government of India was business
expenditure incurred wholly and exclusively for the purposes of the
assessee's business. In the case of Commissioner Income Tax Vs.
Surya Prabha Mills (P.) Ltd. [(1980) 123 ITR 654] the High Court of
Madras held that where the assessee could not import the quantity of
foreign cotton allotted by the Indian Cotton Mills Federation of which the
assessee was a member and had to make payment of the guarantee
amount for the bales that it did not import, such payment was paid only
to avoid further loss, and could only be treated as an expenditure laid
out wholly and exclusively for the purpose of the business; there was no
element of any penalty, no infraction of law or offence against public
policy. In the case of Commissioner Income Tax Vs. Bharat Vijay Mills
Ltd. [(1981) 128 ITR 633] the High Court of Gujarat held that where the
CIVIL APPEALS NO.26 OF 2009 AND 228 OF 2010
-8-
assessee had to pay certain amounts for failure to carry out the
directions of the Textile Commissioner for production or packing of the
minimum of the particular types of cloth, the compensation paid to the
Textile Commissioner for the non-production of the controlled variety of
cloth was an allowable business expenditure.
8.
According to the above case law, an amount paid as
damages or compensation is an expenditure laid out wholly or
exclusively for the purpose of the business of the assessee. It is a
revenue loss incurred in the course of carrying on of the business and
therefore an admissible deduction under Section 23(2)(xviii) of the
Ordinance. In the instant appeal, the contract was executed between the
respondent and the GoP in connection with the business of respondent,
who failed to perform its part of agreement, as such the GoP encashed
the performance bond. It was purely a business transaction between the
parties and there was no infraction or violation of any law whatsoever.
When we asked the learned counsel for the appellant to show us whether
there was any infraction of law by the respondent for which the penalty,
if any, has been imposed on the respondent, he candidly conceded that
the penalty was imposed for violation of the contract. A weak attempt
was made to argue that the ‘law’ in this case was the Act, 1872 which to
our mind is completely unfounded. There was a breach of the contract
and not the law. To put it differently, the GoP would not be able to
recover any money from the respondent if not for the existence of the
performance bond. Thus, the encashment of bank guarantee can at best
be considered to be damages or compensation paid to the GoP for
unsatisfactory performance of a contract by the respondent which is a
revenue loss incurred by the latter in the course of carrying on its
business. The forfeiture of an amount under a contract cannot be
CIVIL APPEALS NO.26 OF 2009 AND 228 OF 2010
-9-
equated with a fine or penalty incurred due to infraction or violation of
any law. Further, the civil suit filed by the respondent against the GoP
having been dismissed, such amount is no more adjustable. Thus, we
are of the view that Premier Bank’s case (supra) is not applicable in the
instant appeal.
9.
For the forgoing reasons, we find no illegality in the
impugned judgment of the learned High Court calling for interference.
This appeal is accordingly dismissed.
Civil Appeal No.228/2010
10.
The respondent in this appeal is a public limited company
and is in the business of refining of crude oil into various petroleum
products. During the assessment year 1999-2000 it (the respondent)
imported crude oil from Aramco, Saudi Arabia under a loan from the
Islamic Development Bank, Jeddah (IDB) on the guarantee of the State
Bank of Pakistan (SBP). As per the SBP’s procedure, the respondent was
required to deposit the counterpart rupee fund within ten days of
disbursement of funds by IDB, which it failed to do, as such in terms of
Para 44 of Chapter 13 of the Foreign Exchange Manual (the Manual), SBP
charged an amount of Rs.4/- per day per Rs.10,000/- or part thereof for
the period of delay amounting to Rs.30,500,000/-. The respondent
claimed the said amount as an expenditure in its income tax returns,
however, the Assessing Officer refused to allow the same on the ground
that such amount was a penalty incurred on account of infraction of law
in terms of the judgment of this Court in Premier Bank’s case (supra) and
was thus an impermissible deduction. The CIT(A) dismissed the
respondent’s appeal, however, the ITAT accepted its appeal holding that
the amount paid by the respondent was not in the nature of fine or
CIVIL APPEALS NO.26 OF 2009 AND 228 OF 2010
-10-
penalty in respect of any infringement of law or the SBP Regulations
rather was a payment made on account of the delay in payment of the
principle amount of the loan and was an expenditure laid down
exclusively for the business of the respondent and was therefore an
allowable deduction. On further appeal, the learned High Court upheld
the order of the Tribunal vide impugned judgment, hence this appeal
with the leave of the Court dated 1.4.2010 granted on the basis of the
leave granting order dated 2.1.2009 in Civil Appeal No.26/2009.
11.
It is the appellant’s case that the amount paid by the
respondent to SBP was a penalty for infraction of law, namely, the
Manual, therefore, the case is fully covered under Premier Bank’s case
(supra). It is the respondent’s case that SBP charged an ‘interest’ and not a
fine or penalty under any law. We find that the amount was charged by
SBP under Para 44 of Chapter 13 of the Manual. For convenience, the
relevant paragraphs thereof are reproduced hereunder:-
43. Fine on delay in deposit of Counterpart Funds.
In the event of delay in depositing counterpart funds with the
State Bank within the prescribed period, the concerned
Authorised Dealer will pay to the State Bank fine at the
rate of Rs 4 per day per Rs 10,000 or part thereof for the
period of delay.
44. Documents received on Collection Basis due to
Discrepancy/Documents drawn on usance basis.
(i) In cases where the overseas negotiating bank does not
make payment to the supplier but sends the documents to the
bank in Pakistan on collection basis due to discrepancy in
the documents, the Authorised Dealers will deposit
counterpart funds with the State Bank on retirement of the
documents by the importers concerned. The prescribed
period for deposit of counterpart funds will be reckoned as
CIVIL APPEALS NO.26 OF 2009 AND 228 OF 2010
-11-
from the date of retirement of bill by the importer. If the
funds are held back by the Authorised Dealers beyond the
prescribed period, fine would be charged as per paragraph
43 ibid.
[Emphasis supplied]
From the above provisions it is clear that it was not a mere interest or
additional amount demanded by SBP, rather the word used is fine which
to our mind in this case is akin to a penalty for a violation of Para 44 of
Chapter 13 of the Manual. The learned counsel for the respondent in
order to take his case out of the purview of Premier Bank’s case (supra)
argued that there was an agreement between the respondent and SBP,
and the additional amount was paid for violation of that contract, as
such, it was not a fine or penalty. However, he failed to show any
contract from record. It is not the case of the respondent even before the
lower forums that there was a contract between the respondent and SBP
and the additional amount was paid as damages for violation of such
contract. Essentially, crude oil was to be supplied by Aramco to the
respondent through a loan from IDB, whereas SBP was only a guarantor.
12.
The learned counsel for the respondent also submitted that
Premier Bank’s case (supra) is distinguishable as in the said case it was
mandatory for the respondent-bank to maintain minimum reserves as
per Section 10(1) of the Act, 1956, however, in the instant case the
respondent was not required under any provision of law to deposit the
counterpart rupee fund with SBP. We find that as per para 44 of Chapter
13 of the Manual, the authorised dealers are bound to deposit
counterpart funds with SBP on retirement of the documents by the
importers concerned. In case the funds are held back by the authorized
dealers beyond the prescribed period, a fine would be charged. The rate
CIVIL APPEALS NO.26 OF 2009 AND 228 OF 2010
-12-
of fine has been mentioned in Para 43 thereof which provides that in the
event of delay in depositing counterpart funds with SBP within the
prescribed period, the concerned authorized dealer will pay to SBP a fine
at the rate of Rs.4/- per day per Rs.10,000/- or part thereof for the
period of delay. It is to be noted that the Manual contains the basic
regulations issued by the Government of Pakistan and SBP under the
provisions of the Foreign Exchange Regulations Act, 1947, therefore, it
has the force of law and any violation thereof would entail the penal
consequences provided therein. As the respondent failed to comply with
the provisions of the Manual, a fine was charged at the prescribed rate. It
is essentially a fine for infraction of the law, i.e. the above referred
provisions of the Manual, and are not damages or compensation for
breach of a contract. Thus, the law laid down in Premier Bank’s case
(supra) is fully applicable to the instant appeal.
13.
In the light of the above, this appeal is allowed, the
impugned judgment of the learned High Court is set aside and the order
of the ITAT is upheld.
CHIEF JUSTICE
JUDGE
JUDGE
ISLAMABAD.
16th May, 2017.
Approved for reporting
Mudassar/*
| {
"id": "C.A.26_2009.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT: MR. JUSTICE MIAN SAQIB NISAR, HCJ
MR. JUSTICE UMAR ATA BANDIAL
MR. JUSTICE IJAZ UL AHSAN
CIVIL APPEAL NO.2755 OF 2006
(Against the judgment dated 4.5.2006 of the
High Court of Sindh at Karachi passed in
Const.P.D-304/2006)
Agro Tractors (Private) Limited
…Appellant(s)
VERSUS
Fecto Belarus Tractors Limited, Karachi etc.
…Respondent(s)
For the appellant(s):
Mr. Mehmood A. Sheikh, Sr. ASC
For respondent No.1:
Nemo
For respondents 2 to 4:
Mr. Tariq Mehmood Khokhar, Addl.A.G.P.
Mr. M. S. Khattak, AOR
For respondents 5 to 8:
Ex-parte
For respondent No.9:
Mr. M. Habib Qureshi, ASC
Raja Abdul Ghafoor, AOR
Mr. Fazal Samad, Secy. Legal, FBR
Date of hearing:
25.9.2018
ORDER
MIAN SAQIB NISAR, CJ.- The controversy involved in the
instant case is that the Economic Coordination Committee (ECC) vide
decision dated 1.7.2005, set up a committee “to work out the modalities and
review the plan of import of 10,000 tractors at zero tariff…import of tractors shall be
allowed only to those companies who have their tractor manufacturing units in Pakistan or
are in the process of installing these.” This decision was communicated to various
ministries/divisions vide letter dated 4.7.2005. However, on the same date,
i.e. 4.7.2005, ECC modified its decision dated 1.7.2005 to the effect, inter
alia, that “import of tractors shall be allowed only to those companies who want to install
their tractor manufacturing facility in Pakistan.” Pursuant thereto a corrigendum
dated 12.7.2005 was issued by the Cabinet Secretariat. The Ministry of
C.A. NO.2755 OF 2006
-: 2 :-
Industries, Production and Special Initiatives invited proposals, to be
reached within 10 days, for the import of tractors, which date was then
extended up to 18.8.2005. Subsequently, three companies, including the
appellant, were shortlisted and a summary was submitted to the then
Prime Minister (PM) for approval, which was ultimately approved. In the
meantime, respondent No.1 (the respondent) made a representation to the PM
which was rejected by the committee for the reason that the said scheme
was for new entrants only, while the respondent was an existing unit.
Finally, a quota of 2500 tractors was allocated to the appellant as well as
other companies. The respondent challenged the said allocation through a
writ petition on the ground that it (the respondent) was denied the quota being
an existing unit but at the same time quota was awarded to other existing
units. It was further alleged that implementation of the scheme was non-
transparent and arbitrary. It was further alleged that CBR allowed the
appellant to import 2500 tractors without any customs duty in Completely
Knocked Down (CKD) condition, which is illegal being contrary to the
decision of ECC. The learned High Court, after hearing the parties and
considering the material available on the record in detail, vide the
impugned judgment quashed all the proceedings initiated with the
advertisement as they suffered from arbitrariness, excessive jurisdiction,
favoritism, lack of transparency, smacked of subjectivity and are not in
accordance with the decision of ECC. Hence, this appeal with the leave of
the Court vide order dated 20.12.2006.
2.
In the above backdrop, it is to be noted that the Federation also
challenged the impugned judgment through a separate petition (Civil Petition
No.469/2006), which was disposed of (vide same order dated 20.12.2006 whereby leave was
granted in the instant appeal) in view of the statement made before the Court,
mentioned in the said order, to the effect that “the petitioner on instructions from
Joint Secretary, Ministry of Industries would like to withdraw the above mentioned petitions
C.A. NO.2755 OF 2006
-: 3 :-
without prejudice to petitioners status/policy and in view of the change in the tariff policy of
the Government and withdrawal of petitioners by the beneficiary importers.”
Nonetheless, in the instant case, the appellant submitted a written
statement asserting therein that “in view of the dismissal of the petitions filed by the
Federation of Pakistan as not pressed, scheme in question having already expired by afflux
of time i.e. 30th September, 2006, interaction of new “Zero Rated Import of Tractors
Scheme” for the year 2006-2007, the petitioner does not press this petition to the extent of
challenge to the validity of the scheme having been set aside as being non-transparent, and
claims release of 156 tractors on the principle of promissory estoppel without payment of
Custom duty and other charges” and also prayed for the release of the bank
guarantee as it did not want to avail the scheme in question which
otherwise had been declared illegal and without lawful authority. In view of
the written statement and the submissions made by the learned counsel for
the appellant, leave to appeal was granted to consider whether on the basis
of promissory estoppel, the appellant is entitled to exemption from duty.
Thus, the controversy in the instant appeal, as is apparent from the leave
granting order, has narrowed down only to the entitlement or otherwise of
the appellant for the release of the tractors already imported by it on the
principle of promissory estoppel.
3.
Heard. It was submitted by the learned counsel for the
appellant that the appellant is entitled to get the tractors, already imported,
released without any duty on the principle of promissory estoppel, because
156 tractors were imported by it (the appellant) under the validly issued
scheme dated 1.7.2005 as amended, especially when afterwards, by means
of notification dated 5.6.2006, the Government had allowed import of
tractors at zero rated duty and that permission was for every citizen.
Besides, the appellant is also entitled to the release of tractors on zero duty
for the reason that the Federal Government has already withdrawn the
petition filed against the impugned judgment.
C.A. NO.2755 OF 2006
-: 4 :-
4.
In this regard it is to be noted that the learned High Court vide
impugned judgment quashed the whole proceedings for the grant of
permission, etc., for the import of tractors at zero rated duty. The Federal
Government, though initially challenged the same before this Court
through a civil petition but after having realized that there were
illegalities/mala fides in the process of grant of permission to import the
tractors, withdrew the petition filed by it, meaning thereby that the Federal
Government accepted the impugned judgment to the that extent. Thus, the
fact of withdrawal of the petition by the Federal Government does not
provide any support to the case of the appellants.
5.
Adverting to the main contention of the learned counsel for the
appellant that the appellant is entitled to release of the tractors, which have
already been imported at zero rated duty on the principle of promissory
estoppel, it is to be noted that there is no cavil to the proposition that when
in exercise of administrative power conferred under a statute, a concession
is granted as regards customs duty and other Government dues for a fixed
period and afterwards it was sought to be withdrawn in exercise of a similar
power, the said concession or benefit could not be withdrawn by virtue of
Section 21 of the General Clauses Act, 1897, unless the statute itself had
conferred such a power on the executive authority, otherwise, the same
shall be protected under the principle of promissory estoppel. Reliance may
be placed on the judgments of this Court reported as Collector of Central
Excise and Land Customs and 3 others Vs. Azizuddin Industries Ltd.,
Chittagong (PLD 1970 SC 439), Al-Samrez Enterprise Vs. The
Federation of Pakistan (1986 SCMR 1917) and M/s Friendship Textile
Mills and others Vs. Government of Balochistan and others (2004
SCMR 346). However, in order to bring the case within the four corners of
the principle of promissory estoppel, it is mandatory upon the person
claiming the benefit under it, to show that the offer was validly made by the
C.A. NO.2755 OF 2006
-: 5 :-
competent
authority
and
thereafter
permission/approval
was
granted/made in a rightful, judicious and transparent manner, without
there being any hint of mala fide, arbitrariness, excessive jurisdiction,
favoritism or non-transparency therein. In the instant case, after thorough
examination of the record the learned High Court held that the procedure of
the grant of permission to import tractors at zero rated duty suffered from
arbitrariness, excessive jurisdiction, favoritism, lack of transparency,
subjectivity and was also not in accordance with the decision of ECC;
therefore, the principles of promissory estoppel were not attracted in the
facts and circumstances of the instant case.
7.
As regards the submission of the learned counsel for the
appellant that when afterwards, through notification dated 5.6.2006, the
Government had allowed everyone to import tractors at zero rated duty, the
tractors already imported by the appellant should have also been released
on zero rated duty, suffice it to say that admittedly the said notification was
applicable prospectively and therefore, the appellant could not benefit from
the same by extending the operation thereof (notification) to past transactions,
i.e. the tractors which were imported under the scheme issued on 1.7.2005.
Thus, the said argument is repelled as being misconceived.
8.
The foregoing are the reasons of our short order of even date
whereby the instant appeal was dismissed.
CHIEF JUSTICE
Islamabad, the
25th of September, 2018
Not Approved For Reporting
JUDGE
JUDGE
Waqas Naseer/*
| {
"id": "C.A.2755_2006.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE EJAZ AFZAL KHAN
MR. JUSTICE MAQBOOL BAQAR
MR. JUSTICE FAISAL ARAB
CIVIL APPEAL NO. 27 OF 2009
(On appeal against the judgment dated
09.10.2008 passed by the High Court of
Sindh, Karachi in ITRA No. 186/2007)
Commissioner of Income Tax, Large Taxpayers Unit, Karachi
… Appellant
VERSUS
International Power Global Developments Limited, Karachi
… Respondent
For the Appellant:
Dr. Farhat Zafar, ASC
Raja Abdul Ghafoor, AOR
For the Respondent:
Mr. Muhammad Idris, ASC
Date of Hearing:
21.02.2018
JUDGMENT
FAISAL ARAB, J.- The appellant has called in
question the decision of the High Court of Sindh rendered in an
Income Tax Reference Appeal (ITRA No.186 of 2007). The subject
matter of this appeal is the question of law that was decided
against the department and in favour of the respondent, same is
reproduced as follows:-
“Whether on the facts and circumstance of the case the
Hon’ble Tribunal was not justified in disallowing deduction on
the applicant’s business expenditure the expenses incurred by
the applicant on events of sports and social activities
organized for the benefit of the applicant personnel and
members of their family.”
CIVIL APPEAL NO. 27 OF 2009
2
2.
The facts of the case are that respondent derives its
income by rendering operational and maintenance service to the
Hub-Power Company Limited. In the assessment year 2001-2002
the respondent incurred an expenditure of Rs.1,200,000/- for
setting up a sports and recreational facility for its employees who
reside within its residential colony. The respondent deducted this
expense while computing its income. The Tax department while
passing the assessment order disallowed such deduction, which
was challenged without success upto the stage of Income Tax
Appellate Tribunal. The respondent then challenged the decision of
the tribunal in the High Court of Sindh, which answered the
question of law in the affirmative in favour of the respondent and
against the tax department vide judgment dated 09.10.2008, hence
this appeal with the leave of this Court.
3.
Section 15 of the Income Tax Ordinance, 1979
classifies various heads of income, which includes ‘income from
business and profession’. Section 22 of the said Ordinance
describes various sources of income that are chargeable to tax
under the head ‘income from business and profession’ and
respondent’s business falls under Section 22. Section 23 describes
various allowances and other deductibles that can be deducted
while computing the income derived from business or profession
falling within the ambit of Section 22. Such deductibles include,
any rent paid for the premises in which such business or
profession is carried on; any amount paid for repairs on the
premises or any other machinery, plant, furniture or fittings used
CIVIL APPEAL NO. 27 OF 2009
3
for the purpose of business; any premium paid in respect of
insurance against risk of damage or destruction to any building,
machinery, plant, furniture or fittings, or stocks and stores used
for the purposes of business or profession; depreciation expense;
any expenditure (not being in the nature of capital expenditure or
personal expenses of the assesse) laid out or expended wholly and
exclusively for the purpose of such business or profession. Section
23(xviii) of the 1979 Ordinance is more significant to examine the
controversy in hand. It states “any expenditure (not being in the
nature of capital expenditure or personal expenses of the assessee)
laid out or expended wholly and exclusively for the purpose of such
business or profession” shall be made in computing income.
4.
A plain reading of Section 23 of the 1979 Ordinance
shows that it specifically spells out in minute detail the types of
allowances or deductions that can be made in computing the
income under the head “Income from business or profession”,
which means that any allowance or expenditure that falls outside
the pale of Section 23 has to be treated as not deductible from the
income. In other words, only such allowances and deductions are
permissible which in some manner have nexus with the income
that is derived from a business or profession.
5.
Learned counsel for the respondent in support of the
reasoning given in the impugned judgment has heavily relied upon
the provision of Section 23(xviii) of the 1979 Ordinance. The only
question that needs to be answered in the present case, therefore,
is whether the expense of Rs.1,200,000/- incurred by the
CIVIL APPEAL NO. 27 OF 2009
4
respondent in providing a facility for sports and social activities for
its employees can be deducted while computing income on the
strength of the provisions of Section 23(xviii). Undeniably the
expense in question is not a part of the salary or perk or privilege
which the respondent pays to its employees under the contractual
obligations for rendering service. It was simply incurred to setup a
complimentary facility for the employees which has no direct nexus
with the generation of the respondent’s income derived from
rendering operational and maintenance services to the Hub-Power
Company Limited. Hence, on the face of it, the expense in dispute
neither falls under Section 23(xviii) of the 1979 Ordinance nor any
other category of allowances or deductibles listed in rest of the
provisions of Section 23, so as to justify its deduction while
computing respondent’s income. The High Court of Sindh allowed
its adjustment simply on the ground that sports and social
activities boost mental and physical health of a person by
answering the question of law in the affirmative. This may be so
but that ipso facto cannot be regarded as a type of allowance that
can be directly co-related to any category of allowances and
deductibles listed in Section 23 of the 1979 Ordinance with the
business activity of the respondent, which is rendering of
operational and maintenance services to a power generating
company. The conclusion of the High Court being totally
misconceived and not based on any provision of Section 23 is not
sustainable in law. The expenditure in question, therefore, cannot
be taken into consideration while computing business income of
the respondent.
CIVIL APPEAL NO. 27 OF 2009
5
6.
For what has been discussed above, this appeal is
allowed, the impugned judgment is set aside and the decision of
the Tribunal is restored.
JUDGE
JUDGE
JUDGE
Islamabad, the
21st of February, 2018
Approved For Reporting
Khurram
CIVIL APPEAL NO. 27 OF 2009
6
“22.
Income from business or profession.- The following incomes shall be
chargeable under the head "Income from business or profession", namely:-
(a)
profits and gains of any business or profession carried on, or
deemed to be carried on, by the assessee at any time during the
income year;
(b)
income derived by any trade, professional and similar association
from specific services performed for its members; and
(c)
value of any benefit or perquisite, whether convertible in to money
or not, arising from business or the exercise of a profession.
Explanation.- Where speculative transactions carried on by an
assessee are of such a nature as to constitute a business, the
business (hereinafter referred to as “speculation business") shall be
deemed to be distinct and separate from any other business carried
on by the assessee.
“23. Deductions.- (1) In computing the income under the head
"Income from business or profession", the following allowances and
deductions shall be made, namely:-
(i)
any rent paid for the premises in which such business or
profession is carried on;
(ii)
any local rate, tax, charge or cess in respect of such
premises paid to any local authority or Government, not
being any tax payable under this Ordinance;
(iii)
any amount paid on account of current repairs to any such
premises or any machinery, plant, furniture or fittings used
for purposes of business or profession;
(iv)
any premium paid in respect of insurance against risk of
damage or destruction to any building, machinery, plant,
furniture or fittings, or stocks and stores used for the
purposes of business or profession;
(v)
in respect of depreciation [including First Year Allowance or
Reinvestment Allowance or Industrial Building Allowance,]
of any such building, machinery, plant, furniture or fittings,
being the property of the assessee, the allowance admissible
under the Third Schedule, [except depreciation on assets
given on lease shall be allowed against income from lease
rentals only];
(vi)
in respect of animals which have been used for the
purposes of the business or profession (otherwise than as
stock-in-trade) and have died or become permanently
useless for such purposes, the difference between the
original cost to the assessee of the animals and the amount,
if any, realised in respect of the carcasses or animals;
[(via) any sum paid on or after the first day of July, 1985, to a
schedule bank, a financial institution, or such modaraba or
leasing company as is approved by the Central Board of
Revenue for the purposes of the Third Schedule, by way of
lease money in respect of an asset taken on lease by the
CIVIL APPEAL NO. 27 OF 2009
7
assessee and used for the purposes of any business or
profession carried on by him;]
(vii)
any interest paid in respect of capital borrowed for the
purposes of the business or profession;
[(viia) any sum paid to a modaraba or to a Participation Term
Certificate holder for any funds borrowed for the purposes
of the business or profession;]
[(viib) any sum paid or credited to any person maintaining a profit
and loss sharing account or deposit with a scheduled bank
by way of distribution of profits by the said bank in respect
of the said account or deposit;]
[(viic) any sum paid by the House Building Finance Corporation
constituted under the House Building Finance Corporation
Act, 1952 (XVIII of 1952), to the State Bank of Pakistan
(hereinafter referred to as the ‘Bank’) as the share of the
Bank in the profits earned by the said Corporation on its
investment in the property made under a Scheme of
investment in property on partnership in profit and loss,
where such investment is provided by the Bank under the
House Building Finance Corporation (Issue and Redemption
of Certificates) Regulations, 1982;]
[(viicc) any sum paid by the National Development Leasing
Corporation Limited to the State Bank of Pakistan
(hereinafter referred to as the ‘Bank’) as the share of the
Bank in the profits earned by the said Corporation on its
leasing operations financed out of a credit line provided by
the Bank on a profit and loss sharing basis;]
[(viid) any sum paid to a bank under a scheme of musharika
representing its share in the profits of that Musharika;]
[(viie) any sum paid to a certificate holder under a Musharika
scheme approved by the Corporate Law Authority and
Religious Board formed under the Modaraba Companies
and Modarabas (Floatation and Control) Ordinance, 1980
(XXXI of 1980) representing his in the profits of that
Musharika,:
(viii)
any sum paid to an employee as bonus or commission for
services rendered, where such sum would not have been
payable to him as profits or dividend if it had not been paid
as bonus or commission:
Provided
that
the
amount
of
the
bonus
or
commission is of a reasonable amount with reference to-
(a)
the pay of the employee and the conditions of
his service;
(b)
the profits of the business or profession for
the year in question; and
(c)
the general practice in similar businesses or
professions;
CIVIL APPEAL NO. 27 OF 2009
8
(ix)
in respect of any special reserve created by such financial
institutions and for such purposes as may be approved by
the Central Board of Revenue for the purposes of this
clause, the amount, not exceeding ten percent of the total
income including such amount, carried to such reserve.
Provided that no allowance under this clause shall be
made where the aggregate amount standing in such reserve
exceeds the paid-up capital of the institution.
(x)
in respect of bad debts, such amount (not exceeding the
amount actually written off by the assessee) as may be
determined
by
the
[Deputy
Commissioner]
to
be
irrecoverable;
(xi)
any sum paid to a scientific research institute, polytechnic,
college or other institution in Pakistan affiliated to any
University
or
Board
of
Education
established
or
incorporated by, or under, any Federal or Provincial law, or
recognised, aided or run by Government or run by any local
authority, to be used for scientific research or technical
training in Pakistan; [ ]
(xii)
any expenditure laid out or expended on scientific research
in Pakistan related to the business carried on by the
assessee;
(xiii)
any expenditure laid out or expended on any educational
institution or hospital in Pakistan established for the
benefit of the employees, their families and dependants;
(xiv) any expenditure laid out or expended on any institute in
Pakistan established for the training of industrial workers
recognised, aided or run by Government or run by any local
authority;
(xv)
any expenditure laid out or expended on the training of any
person, being a citizen of Pakistan, in connection with a
scheme approved by the Central Board of Revenue for the
purposes of this clause;
(xvi) any sums paid on account of annual membership
subscription to a registered trade organisation within the
meaning of the Trade Organisations Ordinance, 1961 (XLV
of 1961);
(xvii) any expenditure incurred by an assessee wholly and
exclusively in connection with his visit abroad as a member
of a trade delegation sponsored by the Federal Government;
(xviii) any expenditure (not being in the nature of capital
expenditure or personal expenses of the assessee) laid out
or expended wholly and exclusively for the purpose of such
business or profession;
[Provided that, where a domestic company has, in
any
income
year,
incurred
any
expenditure
on
advertisement or publicity outside Pakistan in respect of
such goods as may be specified by the Federal Government
by notification in the official Gazette and as are exported in
the said income year, or on furnishing of samples of such
CIVIL APPEAL NO. 27 OF 2009
9
goods to a person outside Pakistan, deduction in respect of
the said expenditure allowable under this clause shall be of
a sum equal to one and one-third times the amount of
actual expenditure so incurred.]
[(xix) any transfer to a participatory reserve created by a
company under section 120 of the Companies Ordinance,
1984 (XLVII of 1984), in accordance with an agreement
relating to participatory redeemable capital entered into
between the company and a banking company as defined in
the Banking Tribunals Ordinance, 1984:
Provided that, out of the amount so transferred in
any income year, not more than five percent of the value of
participatory redeemable capital shall qualify for deduction
under this sub-section:
Provided further that no deduction shall be allowed if
the amount of the tax-exempted accumulation in the
participatory reserve exceeds 10 percent of the amount of
participatory redeemable capital;
[(xx) any expenditure incurred by an assessee in the purchase of
one machine, with permanent sealed memory system, used
for recording and printing cash sales made by him during
the regular course of his business:
Explanation.-
(a)
the expression "any expenditure", as used in clauses
(xii), (xiii) and (xiv), includes expenditure in the
nature of capital expenditure; and
(b)
the expression "paid", as used in this section and
sections 18, 24 and 31, means actually paid or
incurred according to the method of accounting upon
the basis of which the income is computed.
(2)
Where any such premises, building, machinery, plant,
furniture or fittings is or are not wholly used for the
purposes of the business or profession, any allowance or
deduction admissible under this section shall be restricted
to the fair proportional part of the amount which would be
allowable if such premises, building, machinery, plant,
furniture or fittings were wholly so used.
CIVIL APPEAL NO. 27 OF 2009
10
For the convenience sake, Section 23 is referred as follows:-
“23. Deductions.- (1) In computing the income under the head
"Income from business or profession", the following allowances and
deductions shall be made, namely:-
(i)
any rent paid for the premises in which such business or
profession is carried on;
(ii)
any local rate, tax, charge or cess in respect of such premises
paid to any local authority or Government, not being any tax
payable under this Ordinance;
(iii)
any amount paid on account of current repairs to any such
premises or any machinery, plant, furniture or fittings used
for purposes of business or profession;
(iv)
any premium paid in respect of insurance against risk of
damage or destruction to any building, machinery, plant,
furniture or fittings, or stocks and stores used for the
purposes of business or profession;
(v)
in respect of depreciation [including First Year Allowance or
Reinvestment Allowance or Industrial Building Allowance,] of
any such building, machinery, plant, furniture or fittings,
being the property of the assessee, the allowance admissible
under the Third Schedule, [except depreciation on assets
given on lease shall be allowed against income from lease
rentals only];
(vi)
in respect of animals which have been used for the purposes
of the business or profession (otherwise than as stock-in-
trade) and have died or become permanently useless for
such purposes, the difference between the original cost to the
assessee of the animals and the amount, if any, realised in
respect of the carcasses or animals;
(via) any sum paid on or after the first day of July, 1985, to a
schedule bank, a financial institution, or such modaraba or
leasing company as is approved by the Central Board of
Revenue for the purposes of the Third Schedule, by way of
lease money in respect of an asset taken on lease by the
assessee and used for the purposes of any business or
profession carried on by him;]
(vii)
any interest paid in respect of capital borrowed for the
purposes of the business or profession;
(viia) any sum paid to a modaraba or to a Participation Term
Certificate holder for any funds borrowed for the purposes of
the business or profession;]
(viib) any sum paid or credited to any person maintaining a profit
and loss sharing account or deposit with a scheduled bank
by way of distribution of profits by the said bank in respect
of the said account or deposit;]
(viic)
any sum paid by the House Building Finance Corporation
constituted under the House Building Finance Corporation
Act, 1952 (XVIII of 1952), to the State Bank of Pakistan
(hereinafter referred to as the ‘Bank’) as the share of the
CIVIL APPEAL NO. 27 OF 2009
11
Bank in the profits earned by the said Corporation on its
investment in the property made under a Scheme of
investment in property on partnership in profit and loss,
where such investment is provided by the Bank under the
House Building Finance Corporation (Issue and Redemption
of Certificates) Regulations, 1982;]
(viicc) any sum paid by the National Development Leasing
Corporation
Limited
to
the
State
Bank
of
Pakistan
(hereinafter referred to as the ‘Bank’) as the share of the
Bank in the profits earned by the said Corporation on its
leasing operations financed out of a credit line provided by
the Bank on a profit and loss sharing basis;]
(viid) any sum paid to a bank under a scheme of musharika
representing its share in the profits of that Musharika;]
(viie) any sum paid to a certificate holder under a Musharika
scheme approved by the Corporate Law Authority and
Religious Board formed under the Modaraba Companies and
Modarabas (Floatation and Control) Ordinance, 1980 (XXXI
of 1980) representing his in the profits of that Musharika,:
(viii)
any sum paid to an employee as bonus or commission for
services rendered, where such sum would not have been
payable to him as profits or dividend if it had not been paid
as bonus or commission:
Provided that the amount of the bonus or commission
is of a reasonable amount with reference to-
(a)
the pay of the employee and the conditions of
his service;
(b)
the profits of the business or profession for the
year in question; and
(c)
the general practice in similar businesses or
professions;
(ix)
in respect of any special reserve created by such financial
institutions and for such purposes as may be approved by
the Central Board of Revenue for the purposes of this clause,
the amount, not exceeding ten percent of the total income
including such amount, carried to such reserve.
Provided that no allowance under this clause shall be
made where the aggregate amount standing in such reserve
exceeds the paid-up capital of the institution.
(x)
in respect of bad debts, such amount (not exceeding the
amount actually written off by the assessee) as may be
determined by the Deputy Commissioner to be irrecoverable;
(xi)
any sum paid to a scientific research institute, polytechnic,
college or other institution in Pakistan affiliated to any
University or Board of Education established or incorporated
by, or under, any Federal or Provincial law, or recognised,
aided or run by Government or run by any local authority, to
be used for scientific research or technical training in
Pakistan;
CIVIL APPEAL NO. 27 OF 2009
12
(xii)
any expenditure laid out or expended on scientific research
in Pakistan related to the business carried on by the
assessee;
(xiii)
any expenditure laid out or expended on any educational
institution or hospital in Pakistan established for the benefit
of the employees, their families and dependants;
(xiv) any expenditure laid out or expended on any institute in
Pakistan established for the training of industrial workers
recognised, aided or run by Government or run by any local
authority;
(xv)
any expenditure laid out or expended on the training of any
person, being a citizen of Pakistan, in connection with a
scheme approved by the Central Board of Revenue for the
purposes of this clause;
(xvi) any
sums
paid
on
account
of
annual
membership
subscription to a registered trade organisation within the
meaning of the Trade Organisations Ordinance, 1961 (XLV of
1961);
(xvii) any expenditure incurred by an assessee wholly and
exclusively in connection with his visit abroad as a member
of a trade delegation sponsored by the Federal Government;
(xviii) any expenditure (not being in the nature of capital
expenditure or personal expenses of the assessee) laid out or
expended wholly and exclusively for the purpose of such
business or profession;
[Provided that, where a domestic company has, in any
income year, incurred any expenditure on advertisement or
publicity outside Pakistan in respect of such goods as may
be specified by the Federal Government by notification in the
official Gazette and as are exported in the said income year,
or on furnishing of samples of such goods to a person outside
Pakistan, deduction in respect of the said expenditure
allowable under this clause shall be of a sum equal to one
and one-third times the amount of actual expenditure so
incurred.]
(xix) any transfer to a participatory reserve created by a company
under section 120 of the Companies Ordinance, 1984 (XLVII
of 1984), in accordance with an agreement relating to
participatory redeemable capital entered into between the
company and a banking company as defined in the Banking
Tribunals Ordinance, 1984:
Provided that, out of the amount so transferred in any
income year, not more than five percent of the value of
participatory redeemable capital shall qualify for deduction
under this sub-section:
Provided further that no deduction shall be allowed if
the amount of the tax-exempted accumulation in the
participatory reserve exceeds 10 percent of the amount of
participatory redeemable capital;
CIVIL APPEAL NO. 27 OF 2009
13
(xx)
any expenditure incurred by an assessee in the purchase of
one machine, with permanent sealed memory system, used
for recording and printing cash sales made by him during the
regular course of his business:
Explanation.-
(a)
the expression "any expenditure", as used in clauses
(xii), (xiii) and (xiv), includes expenditure in the nature
of capital expenditure; and
(b)
the expression "paid", as used in this section and
sections 18, 24 and 31, means actually paid or
incurred according to the method of accounting upon
the basis of which the income is computed.
(2)
Where any such premises, building, machinery, plant,
furniture or fittings is or are not wholly used for the purposes
of the business or profession, any allowance or deduction
admissible under this section shall be restricted to the fair
proportional part of the amount which would be allowable if
such premises, building, machinery, plant, furniture or
fittings were wholly so used.”
| {
"id": "C.A.27_2009.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
Present:
Mr. Justice Anwar Zaheer Jamali, HCJ
Mr. Justice Mian Saqib Nisar
Mr. Justice Amir Hani Muslim
Mr. Justice Iqbal Hameedur Rahman
Mr. Justice Khilji Arif Hussain
Civil Appeal No.280-L/2009
(Against the judgment dated 16.4.2009 of the
Lahore High Court, Lahore passed in EFA
No.489/1999)
Shahida Bibi etc.
Appellant(s)
Versus
Habib Bank Limited etc.
Respondent(s)
For the Appellant(s):
Mian Muhammad Nawaz, ASC
Raja Muhammad Sabir, ASC
For Respondent No.1:
Mr. Muhammad Shuja Baba, ASC
For Respondents No.2 - 3:
Mr. Shahid Ikram Siddiqui, ASC
Date of Hearing:
15.03.2016 & 17.03.2016
…
JUDGMENT
MIAN SAQIB NISAR, J.- Vide order dated 10.6.2014 a
bench of this Court requested the Hon’ble Chief Justice of Pakistan for
the constitution of a larger bench in order to reconcile two apparently
conflicting judgments of this Court reported as Muhammad Attique
Vs. Jami Limited and others (PLD 2010 SC 993) and Mst. Asma
Zafarul Hassan Vs. M/s United Bank Ltd. and another (PLJ 1981 SC
242) (1981 SCMR 108).
2.
In order to decide this appeal, a comprehensive
narration of the facts is required:- respondent No.1/bank (decree holder)
filed a suit on 30.5.1994 for recovery of finances granted to respondent
No.2/customer, for whom Rana Muhammad Aslam, the predecessor-in-
Civil Appeal No.280-L/2009
- 2 -
interest of respondents No.3(i) to (vi) (judgment debtor), stood surety having
mortgaged his property bearing No.S-57-R-32-E, 5-Temple Road,
Lahore measuring approximately 12 marlas 86 square feet (lower portion of
a double storied residential house; hereinafter referred to as the ‘property’). A decree for
the recovery of Rs.600,871.10/- was passed (alongwith Rs.15,167/- as costs)
under Section 6 of the Banking Tribunals Ordinance, 1984 (1984
Ordinance) in favour of the decree holder and against the judgment debtor
on 20.3.1995 which (decree) has attained finality. Subsequently, the
decree holder filed an execution petition under Section 11 of the 1984
Ordinance and a court auctioneer was appointed on 24.10.1995 to
conduct the sale of the mortgaged property. In this order it is
unequivocally mentioned that though Section 11(3) of the 1984
Ordinance enables a decree holder to sell mortgaged property itself
without intervention of the Banking Tribunal, but in the instant case
the decree holder sought execution of the mortgaged property through
the Tribunal. The first auction was held, in which the predecessor-in-
interest of the appellants, Liaqat Ali Mujahid (auction purchaser), was the
highest bidder, with a bid of Rs.226,000/- (which was deposited by him with the
Executing Court). The judgment debtor filed an objection petition
challenging the auction to the auction purchaser on the ground that the
value of the property had been assessed by the surveyor of the decree
holder as Rs.950,000/- at the time of provision of finance to respondent
No.2. The objection petition was accepted by the Tribunal vide order
dated 27.11.1996. A fresh proclamation of sale was issued, a reserve
price of Rs.600,000/- was fixed and the second auction was held on
12.1.1997 which failed. Subsequently, the auction purchaser offered to
raise his bid from Rs.226,000/- to Rs.400,000/-. Meanwhile, the
Banking Companies (Recovery of Loans, Advances, Credits and
Finances) Ordinance, 1997 (1997 Ordinance) was promulgated on 4.2.1997
Civil Appeal No.280-L/2009
- 3 -
and the Banking Tribunals constituted under the 1984 Ordinance were
abolished vide notification dated 11.2.1997 after which the execution
petition stood transferred to the Banking Court constituted under the
1997 Ordinance as is manifest from the order dated 27.2.1997 of the
newly constituted Banking Court (note:- the Ordinance of 1997 was replaced by the
Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997 (1997 Act)
which came into force on 31.5.1997). On 8.5.1997 the Banking Court rejected
the auction purchaser’s offer to raise his bid for the reason that his
revised offer was still below the assessed value of the property and the
reserve price, which (offer) was neither acceptable to the judgment
debtor nor the decree holder. Through the same order, upon the request
of the decree holder, the Banking Court allowed the former to sell the
mortgaged property by public auction or private treaty, subject to
confirmation by the court. The relevant part of the order reads as
under:-
“In reply to the application, the decree holder
has sought permission to sell the mortgaged
property itself and the law permits the same. The
decree holder is, therefore, permitted to sell
the mortgaged property either by way of
public auction or through private treaty but
the proceedings would be subject to confirmation
by this court.
For report of sale and filing of the sale
proceedings by the decree holder now to come up
on 10.6.97.”
(Emphasis supplied)
There are numerous dates on which the Court awaited the report of the
court auctioneer for the sale of the property through auction and one of
the orders even suggests that the Banking Court approved the draft
Civil Appeal No.280-L/2009
- 4 -
proclamation of sale in terms of Order 21 Rule 66 of the Code of Civil
Procedure, 1908 (CPC) subsequent to which the third auction took place
on 7.9.1998. During the proceedings the counsel for the decree holder
had been appearing but no one appeared on behalf of the judgment
debtor of the case. The order dated 23.9.1998 reveals that the auction
purchaser, whose previous offer of Rs.400,000/- was not accepted by
the Banking Court, when present in the Court improved his offer to the
tune of Rs.6,16,038/- which (offer) was accepted by the decree holder.
However the Court ordered:-
“Now it is to be seen whether auction is to be
confirmed for the above referred amount or the
property is to be re-auctioned.”
The Court adjourned the matter to 2.10.1998 and upon an application
filed by the court auctioneer claiming fee, issued notice to the decree
holder. No notice was issued to the judgment debtor. Such sale was
confirmed by the Banking Court vide order dated 2.10.1998 and the file
was consigned to the record room. The relevant part of the above order
reads as follows:-
“Whereas the auction purchaser has purchased
the property mentioned in ‘Fard Taliq’ for a sum
of Rs.6,16,038/- as a result of private negotiation
with the decree holder, therefore, the same is
confirmed in favour of the auction purchaser Mr.
Liaqat Ali Mujahid. He be issued sale certificate
on his application subject to payment of
remaining price deducting 1/4th amount already
deposited till 15.11.98.”
(Emphasis supplied)
Civil Appeal No.280-L/2009
- 5 -
On 7.12.1998 seemingly on an application by the auction purchaser,
the file was resurrected and the following order was passed:-
“Pursuant to my order dated 18.11.98 on
the application referred to above, the file has
been put up before me today.
The auction purchaser Mr. Liaqat Ali
Mujahid has sought the Sale Certificate being the
highest bidder of property No.S-57-R-32 E
situated at 5-Temple Road, Lahore. The report of
the Nazir shows that the purchase price of
Rs.622,038/- has been deposited by the auction
purchaser in out of which Rs.616,038/- has been
given to the decree holder bank and now
remaining Rs.6000/- are lying in this court which
are to be disbursed to the judgment debtor being
the excess amount from the decretal amount. Sale
Certificate be issued to Mr. Liaqat Ali Mujahid
the auction purchaser in accordance with law.
File be consigned to the record room as
before.”
The sale certificate was issued on 8.12.1998. Thereafter the auction
purchaser moved an application seeking possession of the purchased
property and for that purpose, a Commission was appointed by the
Banking Court vide order dated 19.4.1999 and eventually the
possession was delivered to the auction purchaser. The judgment
debtor filed an application under Order 21 Rule 90 of the CPC on
15.4.1999 challenging the sale of the property in favour of the auction
purchaser and he was directed to deposit of 20% of the sale price i.e.
Rs.123,200/- with the Banking Court before 16.7.1999 which was so
done on 8.7.1999. Vide order dated 20.9.1999 the application under
Order 21 Rule 90 of the CPC filed by the judgment debtor was
Civil Appeal No.280-L/2009
- 6 -
dismissed on the grounds that (i) he had been participating in the
proceedings throughout, (ii) the judgment debtor previously filed
objections which were disallowed by the Banking Court, (iii) some
earlier attempts were made to sell the property but none came forward
except the auction purchaser, (iv) the decree holder and the auction
purchaser mutually negotiated the sale of the property and as a result
the decree holder agreed to the disposal of the property at Rs.616,038/-
as is evident from the order dated 23.9.1998. The Banking Court finally
adjudged that the property has been rightly sold through private
negotiation. The plea taken up by the respondent that he was unaware
of the execution proceedings was discarded as he was held to be
participating in the proceedings; besides the property was sold on
29.3.1998, whereas the objection petition was moved on 15.4.1999
which was barred by time and no application for condonation of delay
was filed. Thus the application under Order 21 Rule 90 of the CPC was
dismissed both on merits as also on the ground of limitation. Aggrieved
of the above, the judgment debtor assailed this order in appeal and the
learned Appellate Court whilst accepting the same (appeal) came to the
conclusion that once having resorted to selling the property through
public auction as per the provisions of Order 21 of the CPC, the same
could not be sold through private negotiation and thus the Banking
Court had committed an illegality. Thereafter, the auction purchaser
filed an appeal before this Court which has culminated into the instant
opinion.
3.
Learned counsel for the appellants by relying upon the
judgments reported as Muhammad Attique (supra) and Asma Zafarul
Hassan (supra) argued that there is no bar upon the Executing Court
against selling the property through private treaty/negotiation. He
submitted that initially the auction procedure for the purposes of sale of
Civil Appeal No.280-L/2009
- 7 -
the property as envisaged by Order 21, CPC was adopted, but due to
numerous failed attempts, the Banking Court was authorized to permit
sale to take place through private treaty between the decree holder and
the auction purchaser and to subsequently confirm such sale. He
submitted that the view set out by the learned High Court that the sale
could not be made otherwise than in accordance with Order 21, CPC is
violative of the judgments cited above, and since the decree was passed
prior to enactment of the 1997 Act therefore its execution would be
governed by the 1984 Act, Section 11(3) whereof allowed for sale by
private treaty; and if it is the 1997 Act which is to govern the execution
process, even then sale by private treaty is permissible under the law as
the same is amply covered by the phrase “in such other manner as the
Banking Court may deem fit” as set out in Section 18(1) of the said Act.
Learned counsel submitted that there was conscious application of
mind by the learned Tribunal, as no bidders came forth as a result of
which the numerous attempts at auction failed, it was well within the
jurisdiction of the Tribunal and in the interests of justice to allow for
sale by private treaty. He further argued that the judgment debtor had
participated in the execution proceedings throughout and was well
aware that the property could not be sold through auction. When the
auction purchaser moved an application to the Court seeking
permission for sale of the property through private negotiation, the
judgment debtor was not required to be issued any notice, rather it was
a matter between the decree holder and the auction purchaser on the
one hand and the learned Executing Court on the other. He also
contended that the objection petition was filed beyond the period of
thirty days and was thus rightly discarded by the learned Court as
being barred by time.
Civil Appeal No.280-L/2009
- 8 -
4.
Conversely, learned counsel for the respondents has led us
to various orders of the Banking Tribunal/Court and argued that no
notice had been issued to the judgment debtor whose property was to
be sold through private treaty, rather a notice was issued to the decree
holder when the auction purchaser applied for sale of the property
through private treaty. In this manner the judgment debtor had been
condemned unheard and therefore the entire process of the private sale
in favour of the auction purchaser stands vitiated. He also submitted
that once the process and procedure of auction under the CPC was
resorted to for the disposal of a mortgaged property thereafter the Court
did not have the jurisdiction to deviate therefrom and take a different
course. Reliance in this regard has been placed on the cases reported as
Muhammad Rafiq Vs. United Bank Limited and another (2005 CLD
1162), National Bank of Pakistan and 117 others Vs. SAF Textile
Mills Ltd. and another (PLD 2014 SC 283) and Muhammad Attique
(supra).
5.
Heard. The propositions which have emerged for the
purposes of the present appeal are:-
(i)
What was the law applicable on 8.5.1997, 23.9.1998 and
2.10.1998, when the Banking Court allowed the property to
be sold by the bank through private treaty, the offer of the
appellant was accepted by the bank and the confirmation of
the private sale in favour of the appellant respectively, and
what is the effect of such law on the facts and circumstances
of the present case;
(ii)
Whether the order dated 8.5.1997 passed by the Banking
Tribunal was superseded by the Banking Court vide its order
dated 10.6.1997 and if so, to what effect;
(iii)
Whether
under
the
1984
Ordinance
or
the
1997
Ordinance/Act both being special laws, the Banking
Civil Appeal No.280-L/2009
- 9 -
Tribunal/Court in execution proceedings, could adopt any
procedure it deemed fit for the sale of the mortgaged
property other than the one (the procedure) prescribed by the
two laws mentioned above;
(iv)
Having once adopted a mode of execution as set out in the
CPC, can a court deviate therefrom;
(v)
With respect to the merits of the case, does the sale achieve
validity on the touchstone of either of the special laws;
(vi)
To reconcile the two apparently conflicting judgments of this
Court identified in paragraph No.1 of this opinion, i.e.
Muhammad Attique (supra) and Asma Zafarul Hassan (supra).
In order to resolve the propositions at hand, it is instructive to
reproduce the relevant provisions from the 1984 Ordinance, 1997
Ordinance and 1997 Act:-
1984 Ordinance
“11. Execution of decree.– The Banking
Tribunal shall, on the written application of the
decree-holder, forthwith order execution of the
decree or order and where the decree or order
pertains to money recover the amount covered,
by the decree or order, as the case may be, as
arrears of land revenue or in such other
manner as may be applied for by the
decree-holder,
in
accordance
with
the
provisions of the Code of Civil Procedure,
1908 (Act V of 1908), or any other law for the
time being in force:
(Emphasis supplied)
Provided ……………………………………
(2)
…………………………………………………
Civil Appeal No.280-L/2009
- 10 -
(3)
Notwithstanding anything contained in
this Ordinance, where a banking company holds
any property belonging to the judgment-debtor as
security, it may sell the same without intervention
of Court either by public auction or private treaty
to any person, and appropriate the proceeds
thereof according to law towards total or partial
satisfaction of the decree:
Provided that proper account of the
proceeds shall be filed with the Banking Tribunal
not later than thirty days from the date of such
satisfaction:
Provided further that, where the Banking
company wishes to sell the property by private
treaty, it shall, before concluding the sale, give to
the judgment-debtor, by a notice, the option to
purchase or redeem it, as the case may be, at the
same price within such time as the banking
company may specify in such notice.
(4)
…………………………………………………
(5)
…………………………………………………
1997 Ordinance
7. Powers of Banking Courts.– (1) ………………
(6) All proceedings, including proceedings
following the filing of an arbitration award and
proceedings for the execution of a decree within
the jurisdiction of a Banking Court, pending in
any Special Court constituted under the Banking
Companies (Recovery of Loans) Ordinance, 1979
(XIX 1979), any Banking Tribunal constituted
under the Banking Tribunals Ordinance, 1984
(LVIII of 1984) or any other Court including a
High Court shall stand transferred to the Banking
Civil Appeal No.280-L/2009
- 11 -
Court having jurisdiction. On transfer of
proceedings under this subsection, a Banking
Court shall require the attendance of the parties
through notice issued in accordance with the
procedure for service of summons or notice laid
down in subsection (2) of section 9.
(7) In respect of proceedings transferred to a
Banking Court under subsection (6) the Banking
Court shall proceed from the stage at which
the proceedings have been transferred and
shall not be bound to recall and rehear any
witness who has given evidence before the
transfer, and may act on the evidence already
recorded or produced before the Court or
Tribunal from which the proceedings have been
transferred.
(Emphasis supplied)
12. Execution of Decree.--(1) The Banking Court
shall, on the written or oral application of the
decree-holder, forthwith order execution of the
decree or order and, where the decree or order
pertains to money, may direct, that the amount
covered by the decree or order, as the case may
be, shall be recovered as arrears of land revenue
in accordance with the provisions of the Code of
Civil Procedure, 1908, or any other law for the
time being in force or in such other manner as the
Banking Court may deem fit.
(2) Subject to subsection (3), where a banking
company is a mortgagee of any property
belonging to the judgment-debtor, it may, sell
such property without the intervention of the
Banking Court either by public auction or by
private treaty to any person or purchase such
property on its own account and appropriate the
Civil Appeal No.280-L/2009
- 12 -
proceeds thereof towards total or partial
satisfaction of the decree.
(3) Where the judgment debtor or any person
acting on his behalf does not voluntarily give
possession of the mortgaged property sold or
sought to be sold or purchased or sought to be
purchased or purchased by the banking company
under subsection (2), the Banking Court on the
application of the Banking Company or the
purchaser shall put the banking Company or, as
the case may be, the purchaser in possession of
the mortgaged property in accordance with the
provisions of Order XXI of the Code of Civil
Procedure.
(4)
…………………………………………………
(5) Where the banking company wishes to sell the
property by private treaty or to purchase it on its
own account it shall, before concluding the sale
give to the judgment debtor an option by a notice
in writing for purchasing or redeeming such
property at the price at which the banking
company proposes to sell or purchase within such
period as the banking company may specify in
such notice which shall not, in any case, be less
than seven days.
(6)
…………………………………………………
(7)
…………………………………………………
(8)
…………………………………………………
23. Repeal.– The Banking Companies (Recovery
of Loans) Ordinance 1979 (XIX of 1979), and
Banking Tribunals Ordinance, 1984 (LVIII of
1984) are hereby repealed.
1997 Act
Civil Appeal No.280-L/2009
- 13 -
“7.
Powers of Banking Courts.– (1)…………
(6)
All proceedings, including proceedings
following the filing of any arbitration award and
proceedings for the execution of a decree within
the jurisdiction of a Banking Court, pending in
any Special Court constituted under the Banking
Companies (Recovery of Loans) Ordinance, 1979
(XIX 1979), or under the Banking Companies
(Recovery of Loans, Advance, Credits and
Finances) Ordinance, 1997 (XXV of 1997), or
any Banking Tribunal under the Banking
Tribunals Ordinance, 1984 (LVIII of 1984), or
any other Court including a High Court shall
stand transferred to, or be deemed to be
transferred to the Banking Court having
jurisdiction. On transfer of proceedings under
this sub-section, a Banking Court shall require
the attendance of the parties through notices
issued in accordance with the procedure for
service of summons or notice laid down in
subsection (3) of section 9.
(7) In respect of proceedings transferred to a
Banking Court under sub-section (6) the
Banking Court shall proceed from the stage
which the proceedings had reached immediately
prior to the transfer and shall not be bound to
recall and re-hear any witness and may act on
the evidence already recorded or produced
before the Court or Tribunal from which the
proceedings
were
transferred.
(Emphasis
supplied)
18. Execution of Decree.– (1) The Banking Court
shall, on the
written application of the
decree-holder, forthwith order execution of the
decree or order at any time seven days after the
Civil Appeal No.280-L/2009
- 14 -
passing of the decree or order and, where the
decree or order pertains to money, may direct
that the amount covered by the decree or order,
as the case may be, shall be recovered in
accordance with the provisions of the Code of
Civil Procedure, 1908, or any other law for the
time being in force or in such other manner as
the Banking Court may deem fit:
(Emphasis supplied)
Provided that the Banking Court may, at
the time of passing a final decree pass an order of
the nature contemplated by subsection (1) of
section 16 to the extent of the decretal amount.
(2)
Subject to subsection (3), in cases of
pledged or mortgaged property a banking
company may sell the same with or without the
intervention of the Banking Court either by public
auction or by inviting sealed tenders and
appropriate the proceeds thereof towards total or
partial satisfaction of the decree.
(3)
…………………………………………………
(4)
…………………………………………………
(5)
Where the banking company wishes to
sell a property by inviting sealed tenders, it shall,
invite offers through advertisements in one
English and one Urdu newspaper which are
circulated widely in the city in which the sale is to
take place giving not less than thirty days time for
submitting offers. The sealed tenders shall be
opened in the presence of the tenderers or their
representatives or such of them as attend:
Provided that before concluding the sale
the
judgment-debtor
shall
be
given
an
opportunity to purchase the property at a
Civil Appeal No.280-L/2009
- 15 -
matching price to be paid in cash within a period
of thirty days.
(6)
…………………………………………………
28. Repeal.– (1)
The Banking Companies
(Recovery of Loans) Ordinance, 1979 (XIX of
1979), the Banking Tribunals Ordinance, 1984
(LVIII of 1984), and the Banking Companies
(Recovery of Loans, Advances, Credits and
Finances) Ordinance, 1997 (XXV of 1997), are
hereby repealed.
(2)
………………………………………………”
6.
With respect to the first proposition we may reiterate the
following: a decree for the recovery of a certain amount was passed in
this case under Section 6 of the 1984 Ordinance and an execution
petition was filed under Section 11 of the said Ordinance. During the
pendency of the execution proceedings, the 1997 Ordinance was
promulgated on 4.2.1997 and the Banking Tribunals constituted under
the 1984 Ordinance were abolished vide notification dated 11.2.1997
after which the execution petition stood transferred to the Banking
Court constituted under the 1997 Ordinance. The 1997 Ordinance was
replaced by the 1997 Act which (Act) came into force on 31.5.1997. The
1997 Ordinance was promulgated on 4.2.1997 and by virtue of Article
89(2)(a)(ii) of the Constitution of the Islamic Republic of Pakistan, 1973
(the Constitution), it was to stand repealed at the expiration of 120 days of
its promulgation, i.e. on 3.6.1997. However before the expiry of 120
days, the 1997 Ordinance was laid before Parliament under Article
89(3)(b) of the Constitution and culminated into the 1997 Act which
was promulgated on 31.5.1997, i.e. the day it received the President’s
Civil Appeal No.280-L/2009
- 16 -
assent. The 1997 Act repealed the 1997 and 1984 Ordinances (the latter of
which already stood repealed under the 1997 Ordinance).
7.
Accordingly, the 1984 Ordinance stood irrevocably repealed
on 4.2.1997 by virtue of the 1997 Ordinance, ergo for all legal intents
and purposes, the 1984 Ordinance ceased to have effect on the said
date. The fact that there was no saving clause in the 1997 Ordinance
(and none in the 1997 Act either) to the effect that all proceedings, rights or
liabilities under the 1984 Ordinance would continue to be governed by
the latter ordinance lends credence to this interpretation. Instead there
was only a transfer provision in the form of Section 7(6) of the 1997
Ordinance (and the 1997 Act), providing that all proceedings, including
proceedings for the execution of a decree within the jurisdiction of a
Banking Court, pending in any Banking Tribunal constituted under the
1984 Ordinance (and the 1997 Ordinance) shall stand transferred to the
Banking Court having jurisdiction under the 1997 Ordinance (and the
1997 Act).
8.
In any event, it is indeed settled law, in line with Section 6 of
the General Clauses Act, 1897, that any act done or any action taken or
purported to have been done or taken under or in pursuance of the
repealed Act, shall in so far as it is not inconsistent with the provisions
of new Act, be deemed to have been done or taken under the
corresponding provisions of the new Act. A litigant is provided
protection with respect to any right, privilege, obligation or liability
acquired or accrued under any enactment repealed. Substantive laws
are only very exceptionally amended with retrospective effect for the
eminently sensible reason that one does not change the goal posts mid-
game. Unless a Legislature enacts a new law (the 1997 Act) to be
specifically retrospective, and that too with great particularity of
language, the Courts are not to assume retrospectivity. There is nothing
Civil Appeal No.280-L/2009
- 17 -
in the repealing section, i.e. Section 28 of the 1997 Act, to indicate that
the Legislature meant for such Act to be applied with retrospective
effect. Therefore the question of retrospective application of the
provisions of the 1997 Ordinance (and the 1997 Act) does not arise, as the
execution proceedings in the case at hand, though instituted under the
1984 Ordinance, stood transferred to the Banking Court established
under the 1997 Ordinance and then the 1997 Act, and in the absence
of any saving clause as mentioned above, the relevant provisions of the
1997 Ordinance (and then the 1997 Act) were to apply on the date of transfer
of such proceedings and thereafter. The Banking Court is not required
to proceed de novo, rather from the stage which the proceedings had
reached immediately prior to the transfer as envisaged by Section 7(7)
of the 1997 Act (reproduced hereinabove).
9.
Section 12 of the 1997 Ordinance dealt with execution of
decrees and provided that where a banking company is a mortgagee of
any property belonging to the judgment-debtor, the banking company
may sell such property without the intervention of the Banking Court
either by public auction or by private treaty to any person or purchase
such property on its own account. Further, where the banking company
wished to sell the property by private treaty or to purchase it on its own
account it was to, before concluding the sale, give to the judgment
debtor an option by a notice in writing for purchasing or redeeming
such property at the price at which the banking company proposed to
sell or purchase within such period as the banking company may
specify in such notice which was not, in any case, to be less than seven
days. Therefore the 1997 Ordinance clearly permitted for sale by way of
private treaty, subject to the written notice of option to purchase being
provided to the judgment debtor. However these provisions only came
into effect from the date of promulgation of the 1997 Ordinance till its
Civil Appeal No.280-L/2009
- 18 -
repeal, i.e. from 4.2.1997 to 31.5.1997, after which the relevant
provisions of the 1997 Act came into force. The provisions governing
execution of decree under the 1997 Act were contained in Section 18,
which provided that in cases of mortgaged property a banking company
could sell the same with or without the intervention of the Banking
Court by inviting sealed tenders in which case the banking company
was to invite offers through advertisements in one English and one
Urdu newspaper having a wide circulation in the city in which the sale
was to take place giving not less than thirty days’ time for submission of
offers, provided that before conclusion of the sale the judgment-debtor
was to be given an opportunity to purchase the property at a matching
price to be paid in cash within a period of thirty days. There was a clear
departure in the wording of Section 18 of the 1997 Act from that of
Section 12 of the 1997 Ordinance, the former allowing a banking
company to sell the mortgaged property by sealed tenders, and the
latter by private treaty, thereby implying that sale by private treaty was
no longer permissible under the 1997 Act. This was the situation
prevailing from 31.5.1997 onwards, and this is indubitably the reason
that the Banking Court on 10.6.1997 passed an order to the effect that
“…For report of sale by auction or inviting tenders of the mortgaged property by the
decree holder…”, and not “sale by auction or private treaty”. This distinction
needs to be appreciated and it is the reason why the subsequent order
of the Banking Court allowing the sale by private negotiation/treaty (and
the issuance of the sale certificate) is violative of the law that existed at the
relevant point of time.
Notwithstanding the above stated legal position, the sale was even
otherwise illegal on the touchstone of the 1984 Ordinance. Section 11(3)
of the 1984 Ordinance required the bank (decree holder) in case of sale
through private negotiation to give to the judgment debtor, by a notice,
Civil Appeal No.280-L/2009
- 19 -
the option to purchase or redeem the property, as the case may be, at
the same price within such time as the banking company may supply in
such notice, but this option, a right conferred upon the judgment-
debtor, was never afforded to him. Therefore, the sale was not made as
per the law and cannot be sustained even by virtue of the repealed 1984
Ordinance. It is settled that where law requires an act to be done in a
particular manner it has to be done in that manner alone and such
dictate of law cannot be termed a mere technicality.
10.
In the case of Asma Zafarul Hassan (supra) leave was refused
to challenge the order of the Sindh High Court whereby the court
dismissed an application for setting aside a sale of property in execution
proceedings. The relevant facts are that after two attempts to sell the
property through public auction failed, the court allowed the sale
through private offer arranged through the Nazir’s personal efforts. It
must be kept in mind that these events occurred during 1977 i.e. before
the promulgation of special banking laws and hence the relevant
provisions of the CPC would have been applicable. Through the leave
refusing order this Court, inter alia, held that the High Court gave its
“tacit consent” to the “private offer” mode of sale and by ineluctable
inference that it was not necessary to pass a specific order to this effect
and further that unless a procedure was specifically barred it may be
adopted by the court for serving the ends of justice. This finding is not
in consonance with that of Muhammad Attique’s case (supra) wherein
this Court upheld the order of the Lahore High Court remanding the
challenge/objections to the auction of a property in execution
proceedings to the Banking Court for decision afresh. The sale of the
property in question had been effected through a purportedly flawed
public auction. For our purposes the relevant finding of this Court was
that the provisions of the Financial Institution (Recovery of Finances)
Civil Appeal No.280-L/2009
- 20 -
Ordinance 2001 (FIO 2001) allow the Executing Court to choose the mode
of execution in accordance with the CPC or any other law in force but
“once it has chosen the mode as provided in the Civil Procedure Code,
then it cannot be permitted to divert that mode at subsequent stage
without conscious application of mind” (emphasis supplied). The
conundrum before us is this; is the Executing Court simply required to
give its “tacit consent” to a new/different mode of sale or must it do so
through “conscious application of mind”?
11.
In execution proceedings the court of law must always
proceed to employ the principles of balancing and proportionality in
order to accomplish a state of affairs where the rights of both the
decree-holder and those of the judgment debtor are secured. In the
same manner the court must be conscious of protecting a third party
such as the auction purchaser. Proportionality1 analysis involves
different steps, each involving a test. First, in the “legitimacy” stage, the
Court confirms that the action has been taken by a person authorized to
do so. The second phase – “suitability” – is devoted to judicial verification
that, with respect to the act in question, the means adopted are rationally
related to stated objectives. The third step, called “necessity,” is to ensure
that the measure does not curtail the right of a party any more than is
necessary for achievement of stated goals. The last stage, “balancing in
the strict sense,” requires that the court weighs the benefits of the act
against the costs incurred by infringement of the right, in order to
determine which right shall prevail, in light of the respective importance
of the values in tension, given the facts. The principles of proportionality
outlined above are increasingly defining jurisprudence across the globe.
For our purposes the court is to achieve the purpose of the execution
1 Essay, March 2008, Proportionality Balancing and Global Constitutionalism by Alec Stone Sweet, Yale
Law School and Jud Mathews, Yale Law School.
Civil Appeal No.280-L/2009
- 21 -
viz. the recovery of money owed to the decree holder through sale of the
judgment debtor’s property; to this end the court holds the rights of
every litigant equally dear. The ideal manner of sale of the judgment
debtor’s property is indeed through public auction and the open
manner in which this may be effected has been aptly defined in Lanvin
Traders, Karachi Vs. Presiding Officer, Banking Court No.2 (2013
SCMR 1419) per our learned brother, Justice Anwar Zaheer Jamali.
But sale(s) of property in execution proceedings are essentially distress
sales and the circumstances are far from ideal. Therefore the legislature
in its wisdom has allowed alternative means of sale. The court may
depart from a preferred mode of sale if the circumstances warrant such
departure. But when it does depart therefrom it must be through a
conscious application of mind because it must itself be convinced that a
less “ideal” mode of sale is necessitated by the circumstances prevailing
and these must be set out in order to reassure all the parties that the
sale proceedings are open and transparent and the court is conscious of
its solemn duty. Tacit consent would not meet the standard of openness
required of the executing court. It is its reasons for so doing (adopting an
alternative method) which shall inspire confidence.
12.
In the case reported at National Bank of Pakistan Vs.
Paradise Trading Company (2015 CLD 366) this Court has held that,
“Now it is admitted fact that in execution
proceeding the Banking Tribunal has adopted the
procedure of selling of the mortgage property by
public auction. Once such procedure for selling
the mortgage property through public auction is
adopted by the Banking Tribunal then no other
mode or procedure is permissible for selling of
mortgage property except by public auction”.
Civil Appeal No.280-L/2009
- 22 -
With the greatest of respect we are constrained to state that the
aforesaid judgment is per incuriam and not good law for the reason that
the court was not assisted properly and appears not to have considered
Muhammad Attique’s case (supra) which lays down the correct law i.e.
the executing court may indeed adopt a different method of sale if
required, the only proviso being that such change in course must be
after due application of mind by assigning justifiable reasons. To hold
otherwise is to shackle the court in an undesirable manner and hold it
hostage to its own earlier orders.
13.
Our attention has been drawn to a recent judgment of this
Court cited at Zakaria Ghani Vs. M. Ikhlaq Memon (PLD 2016 SC
229) in support of the proposition that the executing court may adopt a
different method of sale without a specific order to this effect. The said
judgment is authored by myself and I have given anxious consideration
to the aforesaid proposition and whether the said judgment indeed
supports such a rendering of law. The question before this Court in the
said case was not whether or not an executing court was to adopt a
different method of sale after due application of mind (or otherwise) but
the more fundamental question of whether or not the court could
change the course or mode adopted at all? It was this latter question
that the court answered in the affirmative through the said judgment by
holding that,
“…………This finding is also sufficient to
dispose of the accompanying submission which
was to the effect that once an order has been
passed stipulating that the sale is to be made
under the CPC it is not open to the court to
switch over to any alternative procedure.
Although the correctness of this assertion is
Civil Appeal No.280-L/2009
- 23 -
even otherwise doubtful in view of the case law
including several judgments by this court, to
which reference is made in a subsequent part
herein, the contention is ill founded on a factual
plane.”
(Emphasis supplied)
Hence this judgment does not stand in the way of our present finding
which is that an executing court may change the mode of sale after due
application of mind and giving reasons as mentioned above; the manner
in which it was to adopt a new course was a moot point in the said
judgment.
14.
The answers to the questions devised in the earlier part of
this opinion can thus be summarized as follows:
(i)
The law applicable on 8.5.1997, 23.9.1998 and
2.10.1998, (when the Banking Court allowed the property to be sold
by the bank through private treaty, the offer of the appellant was
accepted by the bank and the confirmation of the private sale in favour of
the appellant respectively) was the 1997 Ordinance on the
first of said dates and thereafter the 1997 Act;
(ii)
The order dated 8.5.1997 passed by the Banking
Tribunal was not superseded by the Banking Court
vide its order dated 10.6.1997 for the reason that the
latter order was illegal for the reasons outlined in the
earlier part of this opinion;
(iii)
Under the 1984 Ordinance or the 1997 Ordinance/Act
both being special laws, the Banking Tribunal/Court
in execution proceedings could adopt any procedure it
deemed fit for the sale of the mortgaged property other
than the one (the procedure) prescribed by the said two
laws;
Civil Appeal No.280-L/2009
- 24 -
(iv)
Having once adopted a mode of execution as set out in
the CPC, an executing court can deviate therefrom
with due application of mind and upon assigning
justifiable reasons;
(v)
The sale was even otherwise illegal on the touchstone
of either of the special laws;
(vi)
The correct law has been laid down in the case of
Muhammad
Attique
(supra)
and
the
judgment
delivered in Asma Zafarul Hassan (supra) is not the
correct law.
In light of the above, subject to the reasons assigned in this
opinion while upholding the impugned judgment, this appeal is
dismissed with the consequence that the private sale made in favour of
the auction purchaser (predecessor-in-interest of the appellants) as confirmed by
the Banking Court stands set aside. However, keeping in view the
peculiar facts and circumstances of the case, particularly that the
auction purchaser has paid an amount of Rs.6,16,038/- as sale
consideration which amount has been received (wholly or partly) by the
decree holder in satisfaction of its decree and has no further claim in
this behalf; and as the real contest is between the appellants and the
judgment debtor, thus in order to safeguard the interest of both the
parties and keeping in view the rule of justice, equity and fairplay we
direct that the property in question should be put to open auction and
out of the sale proceeds the appellants should be returned the amount
paid by them to the decree holder (or any further amount if deposited in the court
after satisfying the decree) along with 10 percent yearly profit (note:- not on
compound basis) as compensation on such amount; besides the appellants
should be refunded the amount of utility bills paid by them (subject to
Civil Appeal No.280-L/2009
- 25 -
proof) along with the profit at the rate mentioned above and the balance
amount should be given to the judgment debtor/respondent No.3. Both
the parties may participate in the auction.
Chief Justice
Judge
Judge
Judge
Judge
Announced in open Court
on 29.9.2016 at Islamabad
Approved For Reporting
Ghulam Raza/*
Judge
| {
"id": "C.A.280-L_2009.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
PRESENT: Mr. Justice Umar Ata Bandial
Mr. Justice Mazhar Alam Khan Miankhel
Civil Appeal No. 288 of 2013.
(On
appeal
from
the
judgment
dated
28.12.2012 passed by the High Court of
Balochistan in CMA No. 01/2011.).
Zohra Bibi and another
…Appellant (s)
Versus
Haji Sultan Mahmood and others
…Respondent (s)
For the Appellant (s):
Raja Saif ur Rehman, ASC.
Mr. Ahmad Nawaz Ch. AOR (Absent)
For the Respondent (s):
Mr. Shafqat Jan, ASC (for respondent No.1)
Mr. Tariq Aziz, ASC/AOR
(for respondents No.2-4)
Respondents No.5&6
Ex-parte
Date of Hearing:
06.12.2017
Judgment
Mazhar Alam Khan Miankhel, J.- This appeal has arisen
out of judgment dated 28.12.2012 of Balochistan High Court whereby
appeal of Respondent No. 1 against the judgment/order dated 28.02.2011
of the Senior Civil Judge-II, Quetta was allowed and revocation of
succession certificate dated 13.11.2006 was set aside by holding that the
application for revocation of succession certificate was incompetently filed
by present Appellants.
C.A.No.288/13
2
2.
Brief facts of the case emerging out of the record would
reveal that after the demise of propositus of the parties Haji Gul Hassan
Sheikh, his son Haji Sultan Mehmood, Respondent No.1, herein, was
successful in getting a succession certificate dated 13.11.2006 in his name
by claiming himself to be the sole legal heir of the deceased propositus.
After culmination of the proceedings in his favour, he alongwith his son
Hassan Mehmood as guarantor also submitted an undertaking in the Court
for submission of details of accounts and also held themselves jointly and
individually liable/ responsible to satisfy the claim of any other legal heir
of the deceased if any, in case someone comes forward. On getting
knowledge of the said fraudulent act of Respondent No. 1, present
Appellants moved an application under Section 383 of the Succession Act,
1925 for revocation of said succession certificate bearing No. 35/2006
dated 13.11.2006, the same was ultimately allowed by the trial Court vide
its judgment/ order dated 28.02.2011. The Respondent No. 1 herein,
feeling himself aggrieved of the order of revocation, questioned the same
by way of an appeal before the High Court which was accepted and order
of revocation of succession certificate dated 28.02.2011 of the trial Court
was set aside, hence, the present appeal.
3.
Learned counsels for the parties were heard and the record of
the case was perused.
4.
Perusal of the record would reveal that the fact that the
deceased propositus of the parties had two wives, has never been disputed
by any one. Present Appellants, the two daughters were from Mst. Noor
Bibi and Respondents No. 1 to 4 herein, were from his other wife namely
C.A.No.288/13
3
Mst. Hussain Bibi (both the widows died during the pendency of
application for revocation of succession certificate).
Status and relationship of the parties intrse before the Court
was never disputed even by the Respondent No. 1 rather he alleged in his
reply that according to a family settlement, all the legal heirs had received
their share of inheritance and for that reason they were deliberately not
joined as party in the application for grant of succession certificate. When
status and relationship of the parties with the predecessors in interest is not
denied then every legal heir is entitled to get/ receive his/ her Shari share
to the extent of his/ her entitlement in the property moveable/ immovable
left by the predecessor. So, all the legal heirs of deceased Haji Gul Hassan
have the right to get to the extent of their respective shares. Before
proceeding further we may observe that Respondent No.1 in his reply
alleged that every legal heir was paid his/her due share. So it was for the
Respondent No.1 to have proved his stance of payment of respective
shares to all the legal heirs but he has miserably failed to do so. Mere
allegations in the pleadings would never be sufficient to establish the fact
alleged in the pleadings. So, we without any hesitation observe that all the
legal heirs are entitled to get the respective share in the legacy of
propositus.
s
We at present are only concerned with the amounts shown in
the application for succession certificate (original and amended). Under the
law, the Appellants herein are entitled to get their Shari shares as per their
entitlement and the trial Court while revoking the original certificate of
succession has very rightly held as under:
C.A.No.288/13
4
“ I heard arguments advanced by the parties in support and
against the application and I also went through the record of
succession certificate No. 35/2006 alongwith present
application. The objection raised by the contesting
respondents were just about time limitation of filing of this
application. Other objections were about affidavit of
applicant that same are not genuine and further allegation
raised that the applicants both female having no knowledge
and this application has been filed in connivance of husband
of one of the applicants. It is alleged that name of deceased
has not been mentioned correctly. The whole objections
raised having no weight to discard the legal entitlement of
the applicants as legal heirs or protect the wrongful act of
respondent No. 1. The respondent badly failed to show that
on what account he obtained cash amount of deceased
without giving the share of other legal heirs. The question
relating whether this application is time barred in this regard
it is settled principle of law that no time limit will be counted
if the action found to be result of fraud of misrepresentation
and in such situation or case it is held by the honorable apex
courts that time runs from the date of knowledge. So
objection about time limitation is discarded. Previous record
fully shows that respondent No. 1 Sultan Mehmood
committed fraud by concealment of fact not mentioned in his
application and in ex-parte evidence that the deceased has
also other legal heirs. As sufficient evidence available on
record that all legal heirs of deceased Haji Gul Hassan
Sheikh
are
entitled
for
their
shares
according
to
Muhammadan law and Islamic Sharia so I have no hesitation
to accept this application for revocation of succession
certificate. From the record it is also revealed that surety
namely Hassan Mahmood s/o Sultan Mahmood and
Muhammad Ismail s/o Ghulam Dastagir have also taken
back (release) their surety after completion of three years
still according to their affidavit filed at the time of filing
surety they have taken fully responsibility that in case of
fraud and misrepresentation they are liable to pay the amount
for which they stood surety and on the basis of same
undertaking that are under obligation to pay the amount in
case the respondent No. 1 failed to pay the amount to the all
legal heirs surviving according to Sharia Fithwa. Murasallah
be sent to revenue authority/ Tehsildar Quetta for report
within four-days alongwith copy of Fard and affidavit of
surety available on the record for attachment of property of
sureties till recovery of amount or otherwise for recovery of
process of sale of attached property according to law. The
applicants further directed to file Sharia Fithwa the same
must be verified and appear in person while applying for
succession certificate. Application disposed off in this
manner”.
C.A.No.288/13
5
5.
Perusal of the impugned judgment would reflect that the
same instead of dealing with the substantial question of law, is based on
mere technicalities. The facts which prevailed with the High Court were (i)
the affidavits of Respondent No. 1 and his witnesses, (ii) no response by
the Appellants for more than a period of 3 ½ years inspite of publication in
a newspaper of wide circulation (iii) the amount in question was
withdrawn by the Respondent No. 1 long before and fourthly the liability
of the sureties was also discharged after a lapse of three years and for the
above reasons asked the Appellants to approach the civil Court for
redressal of their grievances, if any.
The cardinal principle of Mohammadan law is that the
inheritance of a person opens the moment he dies and all the legal heirs
become owners to the extent of their respective shares there and then by
the dint of settled law. Sanction of inheritance mutation, issuance of
succession certificate etc. are the procedural matters regulated by the
procedural laws just to make the records in order and also for fiscal
purposes. Similarly law of limitation provides a specific period to avail a
remedy provided under the law by way of filing suit, preferring appeal and
making any application and if the same is filed/preferred or made beyond
the prescribed period of time as provided in the schedule, subject to certain
provisions of law, has to be dismissed but said dismissal cannot take away
the right of that person as was held by this Court in the case of Pervaiz
Akhtar and another versus The Additional District Judge, Rawalpindi
and four others (1990 PSC 1109). It is also settled law of the land that
technicalities should not hamper the administration and dispensation of
justice. Whenever it is possible to grant relief under the law, then
C.A.No.288/13
6
technicalities in the way of administration of justice should be avoided to
the possible extent by remaining within the domain of law. When we look
into the facts and circumstances of the present case before us, it becomes
clear that no statutory period of limitation is provided for grant of any
succession certificate under Section 372 or its revocation under Section
383 of the Succession Act, 1925. When no further intricate question of law
of inheritance was there to be resolved by any competent Court of law,
proceedings under the Succession Act, 1925 were very much competent
irrespective of efflux of time.
It is established on the record that the original certificate was
obtained by Respondent No. 1 by practicing fraud with the Court and the
Appellants on 13.11.2006 and the Appellants asked for revocation of said
certificate after a period of more than 3 ½ years when they got knowledge
of the same. As discussed above that no statutory time frame has been
provided under Limitation Act, 1908 for asking for issuance of or
revocation of succession certificate but even then it has to be availed
within a reasonable time. If at all we put any embargo/ clog of limitation
then at the most that can be dealt with under Article 181 of Limitation Act,
1908 which provides a period of three years to ask for any such relief.
Settled law of the land in such like situations is that the period of limitation
would start running from the date of knowledge. While looking in this
perspective, in absence of any evidence to the contrary, the presumption
would be that the Appellants being poor illiterate ladies had no knowledge
of the original succession certificate and after getting knowledge of the
same filed application for revocation of succession certificate.
C.A.No.288/13
7
6.
The application so filed by the Appellants for revocation of
the succession certificate was also held to have been incompetently filed as
the application was only signed by the counsel and the counsel was also
authorized by Appellant No. 1 i.e. Mst. Zohra Bibi only and Mst. Samina
Bibi had not signed the power of attorney of the counsel. Again this view
of the High Court is based on hyper technicality especially in the facts and
circumstances of the case in hand. The established law is that Advocate/
Pleader can sign the pleadings on behalf of the party and he is normally
authorized by the party while signing the power of attorney in this behalf
and the provisions of Order III of the CPC in this regard are very much
clear. The record of the proceedings clarifies the fact that the Appellant
No. 1 was properly represented as she had signed the power of attorney of
the counsel and let’s presume for a while that Respondent No. 2 was not
properly represented, whether this alone would disentitle her to get her
share in the legacy left by her father. Answer to this question would be a
simple “No”. Under the law it is not necessary that each and every legal
heir should be properly represented and appear before the Court to get a
succession certificate. The Court on receiving such application has to
issue/ grant succession certificate in favor of all the legal heirs by
considering and determining their respective shares by complying with the
procedural requirements of law in this regard. So, the decision of High
Court in this regard is sheer violation of the law and cannot be maintained.
7.
Yet another aspect of the case, as was held by the High
Court, would also require our attention that after the lapse of such a long
time the better course for the Appellants was to approach the Civil Court.
Yes; this approach of the High Court would have been a valid one if there
C.A.No.288/13
8
had some dispute regarding status and relationship of the parties inter-se.
But in this case, there is no such dispute. There are two distinct groups of
the legal heirs of the deceased. Appellants being the legal heirs from one
wife and the Respondents from the other wife. Their complicity can be
adjudged from the fact that Respondents No. 2 to 4 the real sisters of
Respondent No. 1 have joined hands with Respondent No. 1 by alleging to
have received their share by supporting the appeal of Respondent No. 1
before the High Court and the two poor ladies from the other wife of
propositus i.e. the Appellants were left without any relief who also happen
to be their step sisters. (By keeping in mind the conduct of Respondent No.
1, we also doubt the satisfaction of claim of Respondent No. 2 to 4). So,
we in the peculiar circumstances of the case cannot send the parties
especially the two Appellants for yet another round of litigation for a
matter which require no further adjudication except the discharge of
liability by Respondent No. 1 as he alongwith his son had given an
undertaking to satisfy the claims of any other legal heir, if came forward.
So, we endorse the procedure adopted by the trial court for the recovery of
said amount with the direction that the needful be done within a period of
two months positively after the receipt of this judgment and a compliance
report be also forwarded to the Additional Registrar (Judicial) of this
Court.
8.
Since it has been established on the record that Respondent
No. 1 had verified a false statement, rather concealed the true facts before
the Court regarding actual legal heirs of the deceased propositus and thus
apparently has committed fraud with the Court and the parties so we
cannot shut our eyes to this very fact and we, therefore, direct the trial
C.A.No.288/13
9
Court to proceed against the Respondent No. 1 under Section 198 PPC as
required by Section 372 (2) of the Succession Act, 1925.
9.
In view of the above discussion this appeal is allowed in
above terms with costs to be borne by Respondent No. 1 of the entire
litigation for the reasons mentioned above.
Judge
Judge
Bench-III
Islamabad
6th December, 2017
Zia*
Approved for Reporting.
| {
"id": "C.A.288_2013.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
PRESENT:
MR. JUSTICE MIAN SAQIB NISAR
MR. JUSTICE SH. AZMAT SAEED
MR. JUSTICE QAZI FAEZ ISA
CIVIL APPEAL NO.294 OF 2015
(On appeal from judgment dated
10.4.2015, passed by the Election
Tribunal, Hyderabad, in Election
Petition No.341/2013)
Muhammad Nawaz Chandio
… Appellant
Versus
Muhammad Ismail Rahu and others
… Respondents
For the Appellant
: Mr. Farooq H. Naek, Sr. ASC
Raja Abdul Ghafoor, AOR
For Respondent No.1
: Mr. Wasim Sajjad, Sr. ASC
Syed Rifaqat Hussain Shah, AOR
Date of Hearing
: 10.12.2015
JUDGMENT
SH. AZMAT SAEED, J.- This Civil Appeal
under Section 67(3) of the Representation of the People
Act, 1976 (ROPA), is directed against the judgment dated
10.04.2015, passed by the learned Election Tribunal,
Hyderabad, whereby Election Petition bearing No.341 of
2013, filed by Respondent No.1 was allowed and re-
election in 37 Polling Stations of the Sindh Provincial
CA.294/2015.
2
Assembly Seat No.PS-59-Badin (V), was directed to be
held.
2.
The brief facts necessary for the adjudication of
lis at hand are that in the General Elections held on the
11th of May, 2013, the Appellant and Respondents No.1
to 12 contested for the Seat for the Provincial Assembly of
the Province of Sindh from Constituency PS-59 Badin (V).
After the elections, the Appellant was declared and
notified as a Returned Candidate, having secured 38,315
votes, while Respondent No.1 was the runner up,
securing 36,960 votes. The Appellant had lead of 1355
votes. Respondent No.1 challenged the said election
through Election Petition No.341 of 2013, which was
entrusted for adjudication to the learned Election
Tribunal, Hyderabad. It was the case of Respondent No.1
that in the General Elections of 2008, there were only 97
Polling Stations, while with mala fide intention the
number of Polling Stations were increased to 120 and
most of such additional Polling Stations were established
in the areas where the Appellant had influence. It was
contended that in several identified Polling Stations,
despite applications filed by Respondent No.1, neither the
Police nor the Rangers were deployed and only Pakistan
CA.294/2015.
3
Qomi Razakars were posted and such Pakistan Qomi
Razakars in connivance with the polling staff not only
permitted but participated in the harassment of voters by
the Armed supporters of the Appellant and also
facilitated in casting of bogus votes thereat and thereby
rigged the elections to the benefit of the Appellant.
Pursuant to notice, the present Appellant entered
appearance and contested the Election Petition by filing a
written statement, denying the allegations made therein.
Furthermore, objections were taken regarding the very
maintainability of the Election Petition, inter alia, on the
ground that the mandatory provisions of Section 55(3) of
the ROPA read with Order VI Rule 15 CPC with regard to
the verification of the Election Petition had not been
complied with.
3.
On the divergent pleadings of the parties,
issues were framed. Whereafter, the contesting parties
i.e. the Appellant and Respondent No.1 produced their
respective oral as well as documentary evidence. Both the
Appellant and Respondent No.1 entered the witness box
and were subjected to cross-examination. During the
pendency of the Election Petition, Respondent No.1 filed
an application before the learned Election Tribunal
CA.294/2015.
4
purportedly under Section 84 of the Qanun-e-Shahadat
Order, 1984 (hereinafter referred to as the Order of 1984)
seeking
verification
by
National
and
Database
Registration Authority (NADRA) of thumb impression of
the voters on the counterfoils of the Ballot Papers of 37
specified Polling Stations. The said application was
allowed by the learned Election Tribunal, Hyderabad,
vide Order dated 23.10.2014. Pursuant to the said Order,
the requisite election material was made available to
NADRA. Whereafter, a Report (Exh.E/1) was received
through Mr. Maqsood Ali, Manager, NADRA, who
appeared as PW-4 and was subjected to cross-
examination by the present Appellant. On the conclusion
of the trial, after hearing the counsel for the parties, the
Election Tribunal vide the judgment impugned dated
10.04.2015 allowed the Election Petition declaring the
election at 37 Polling Stations as void due to illegal
practices having been committed and it was directed that
the Appellant be de-notified and re-election be held in the
said 37 Polling Stations.
4.
It was contended by the learned counsel for the
Appellant that the Election Petition filed by Respondent
No.1, on the face of it, was not verified in terms of Order
CA.294/2015.
5
VI Rule 15 CPC, thereby the mandatory requirements of
Section 55(3) of ROPA were not complied with, hence, the
said Election Petition was not maintainable and ought to
have been summarily dismissed. It is also contended that
the application purportedly under Section 84 of the Order
of 1984, filed by Respondent No.1 was illegally allowed by
the learned Election Tribunal, as recounting and re-
examining of the Ballot Papers and the election material,
including counterfoils and Electoral Lists cannot be
allowed as a matter of course. Applications, in this
behalf, can only be entertained, if sufficient material has
been brought on the record through cogent evidence to
justify such a course of action. In the instant case, it was
contended that the matter was referred to NADRA for
verification of the thumb impressions without any legal
or factual basis. It is added that the process of
verification
allegedly
carried
out
by
NADRA
was
conducted behind the back of the Appellant who was
neither summoned nor associated with the said process,
hence, such Report could not have been relied upon by
the learned Election Tribunal. It is further added that the
said Report was produced by PW-4 (Maqsood Ali), who
admittedly was not the author of such Report nor
CA.294/2015.
6
personally conducted the verification of the thumb
impressions on the counterfoils of the Ballot Papers.
Hence, such Report was not only inadmissible in
evidence but could also not be relied upon by the learned
Election Tribunal as a basis of passing the impugned
judgment, which is therefore, not sustainable in law. It is
contended that the allegations made in the Election
Petition were not proved through cogent evidence,
especially as Respondent No.1 did not file an affidavit-in-
evidence in support thereof. The learned Election
Tribunal, it is contended, illegally permitted Respondent
No.1 to produce his Election Petition as evidence.
Pleadings are not a substitute for substantive evidence.
The learned counsel for the Appellant in support of his
contentions relied upon the judgments in the cases,
reported as (1) Mian Ejaz Shafi v. Syed Ashraf Shah, 1st
Additional Sessions Judge, Karachi and Returning
Officer, Karachi West-I and 12 others (1996 SCMR 605),
(2) Lt. Col. (Retd) Ghazanfar Abbas Shah v. Mehr Khalid
Mehmood Sargana and others (2015 SCMR 1585) and (3)
Bhabhi v. Sheo Govind and others (AIR 1975 SC 2117).
5.
The learned counsel for Respondent No.1
controverted the contentions raised on behalf of the
CA.294/2015.
7
Appellant by contending that the Election Petition was
duly verified and was compliant with the requirements of
Section 55(3) of ROPA, as interpreted by this Court and
the issue, in this behalf, has been adjudicated upon by
the learned Election Tribunal in accordance with law. It
is added that sufficient material was available on record
to justify the referral to NADRA for verification of the
thumb impressions on the counterfoils of the Ballot
Papers. It is further added that according to the Report of
NADRA, which is a neutral body, endowed with the
statutory duty and requisite expertise to effect such
verification, it is clear and obvious that more than five
thousand votes were counted in the final tally, which
were bogus and invalid and the lead of the Appellant is
less than such invalid and bogus votes. Consequently,
the learned Election Tribunal by way of the impugned
judgment has rightly ordered a re-poll in the said 37
Polling Stations in respect whereof NADRA had submitted
its Report. In support of his contentions, the learned
counsel for Respondent No.1 relied upon the judgments
in the cases, reported as (1) Mst. Khair-ul-Nisa and 6
others v. Malik Muhammad Ishaque and 2 others (PLD
1972 SC 25), (2) Sardarzada Zafar Abbas and others v.
CA.294/2015.
8
Syed Hassan Murtaza and others (PLD 2005 SC 600), (3)
Jam Mashooq Ali v. Shahnawaz Junejo (1996 SCMR 426)
and (4) Muhammad Akram and another v. Mst. Farida
Bibi and others (2007 SCMR 1719).
6.
Heard and the available record perused.
7.
Adverting first to the contention of the learned
counsel for the Appellant that the Election Petition was
not verified in accordance with law i.e. under Rule 15
CPC, hence, did not comply with the mandatory
requirement of Section 55(3) of ROPA and, therefore,
merited summary dismissal on this ground. We have
examined the Election Petition, a copy whereof is
available on the record. It bears verification on solemn
affirmation that what has been stated therein is true to
the best of knowledge and belief of the Election Petitioner.
It bears the stamp and signature of the Oath
Commissioner. The place (Hyderabad) whereat the
contents of the Election Petition were verified is also
stated therein. The date is also mentioned by the Oath
Commissioner. The Election Petitioner i.e. the present
Respondent No.1 entered the witness box as PW-1 and
owned the said Election Petition by identifying his
signatures thereupon. In this view of the matter, it
CA.294/2015.
9
appears that the requirement of Order VI Rule 15 CPC
has in essence been complied with. The additional
requirements enjoined upon the Oath Commissioner
referred to by the learned counsel for the Appellant by
relying upon the judgment of this Court in the case of Lt.
Col. (Retd) Ghazanfar Abbas’s case (supra) are not really
relevant as such requirements, if applicable, would be
mandatory in the future as has been specifically
mentioned in the said judgment. In this view of the
matter, the learned Election Tribunal has correctly held
that the Election Petition could not be dismissed on the
ground that it was not duly verified.
8.
The learned counsel for the Appellant also
stressed the fact that Respondent No.1 did not file a
separate affidavit-in-evidence and while entering the
witness box as PW-1 had only tendered his Election
Petition in evidence as Exh.F/1, which was objected to on
the ground that pleadings are not substantial piece of
evidence. The status of pleadings needs to be identified.
This Court in the case, reported as Sardar Muhammad
Naseem Khan v. Returning Officer, PP-12 and others
(2015 SCMR 1698) has observed as follows:
CA.294/2015.
10
“3.
… The importance of the pleadings
and its legal value and significance can
be evaluated and gauged from the fact
that it is primarily on the basis thereupon
that the issues are framed; though the
pleadings by themselves are not the
evidence of the case, the parties to
litigation have to lead the evidence
strictly in line and in consonance thereof
to prove their respective pleas. …”
As a general rule and practice, the statements of the
witnesses are recorded via-voce, subject to the limitation,
in this behalf, set forth in Qanun-e-Shahadat Order,
1984 including Article 137 pertaining to prohibition
regarding leading questions and are also subject to cross-
examination. Evidence may also be taken in the form of
Affidavits, if so, directed or permitted by any Special Law
or if specifically ordered by the Court or with the consent
of the parties in terms of Order 19 Rule 1 CPC. The
procedure adopted by the learned Election Tribunal, in
this behalf, was perhaps not strictly in accordance with
law and it would have been appropriate for Respondent
No.1 to have at least filed a separate affidavit-in-evidence.
Be that as it may, in pith and substance the judgment of
the learned Election Tribunal is primarily based on the
statements of other PWs, more particularly, his Election
Agents (PWs 6 and 7) and the Report of NADRA (Exh.E/1)
produced by PW-4. In the circumstances, the contentions
CA.294/2015.
11
raised in this behalf by the counsel for the Appellant pale
into insignificance and have no real bearing on the
adjudication of the Election Petition.
9.
The learned counsel for the Appellant has
assailed the Report of NADRA (Exh.E/1) on two counts;
firstly, that the Election Tribunal erred in law by allowing
the application under Section 84 of the Order of 1984, for
verification of the thumb impressions on the counterfoils
of Ballot Papers in the absence of any material evidence
on the record to justify such verification, as such
verification or re-count cannot be ordered as a matter of
course and secondly, that neither the Appellant nor his
nominee were associated with the process of the said
verification carried out by NADRA. Furthermore, the
Report was not proved by the person who actually
prepared the same.
10.
A perusal of the record reveals that in the
reply/counter affidavit filed by the Appellant to the
application under Section 84 of the Order of 1984, no
objection was raised by the Appellant that there wasn’t
sufficient material on the record to justify verification of
the thumb impressions. In fact, it was pleaded that
verification of the votes cast should be conducted at the
CA.294/2015.
12
the home Polling Stations of Respondent No.1 i.e. PS-56
and PS-57 (however no such plea has been advanced
before this Court). The Report of NADRA was received
and adduced in evidence as Exh.E/1 without any
objection being raised by the Appellant regarding its
relevance or admissibility. Thus, there is no question
about its admissibility in evidence before this Court.
11.
The cross-examination of PW-4 reveals that the
verification process was carried out in accordance with
the predetermined Standard Operating Procedure (SOP)
of NADRA and such Report was in fact generated by the
Computers. No suggestion was given to PW-4 that the
entries in such Computers were made incorrectly.
Nothing has come on record to denude the Report of its
veracity or to persuade us not to read it in evidence. The
fact of the matter is that such Report is on record and
therefore in evidence and cannot be ignored by this
Court.
12.
In the Constituency in question, there were
120 Polling Stations. There is no dispute between the
parties with regard to the conduct of the Elections and
the tally of the votes in 83 of such Polling Stations.
According to the admitted final result of such undisputed
CA.294/2015.
13
83 Polling Stations, the Appellant received 20855 votes,
while Respondent No.1 received 26839 votes. Thus,
Respondent No.1 had a lead of 5984 votes in the said 83
Polling Stations.
13.
With regard to the disputed 37 Polling Stations,
according to the final tally, the Appellant had received
16012 votes, while Respondent No.1 received 8827 votes.
According to the Report of NADRA (Exh.E/1), a total
number of 26947 votes were polled at the disputed 37
Polling Stations and the counterfoils of Ballot Papers and
other record thereby was sent to NADRA for verification.
In the said Report, 4979 counterfoils of Ballot Papers
contained thumb impressions, which did not correspond
to the CNIC numbers scribed thereupon or did not have
any CNIC number. 132 counterfoils contained thumb
impressions of persons who had voted more than once.
85 counterfoils of Ballot Papers did not bear any thumb
impression of the voters. Thus, a total of 5196 votes, on
the face of it, appear to be bogus having not been polled
by genuine voters. The thumb impressions on the
remaining counterfoils were either found to be genuine or
unverifiable due to defective ink used. It is also a matter
CA.294/2015.
14
of record that out of the said 37 Polling Stations the
Appellant had won in 34 Polling Stations.
14.
The aforesaid Report of NADRA establishes that
in the aforesaid 37 Polling Stations illegal practices as
defined by Section 83 of the ROPA were indulged in
inasmuch as Ballot Papers issued to and polled by
persons not authorized or entitled under the law to do so.
Double voting was also prevalent. However, it has not
been proved that such illegal practices were conducted by
the present Appellant. In the event of such illegal
practices being proved the course of action to be adopted
by the learned Election Tribunal and the Orders to be
passed in this behalf are circumscribed by Section 70 of
the ROPA, which reads as follows:-
“70. Ground for declaring election as a
whole void.- The Tribunal shall declare
the election as a whole to be void if it is
satisfied that the result of the election
has been materially affected by reason
of –
(a)
the failure of any person to comply
with the provisions of the Act or the
rules; or
(b)
the prevalence of extensive corrupt
or illegal practice at the election.”
15.
Before any Order can be passed by learned
Election Tribunal, it must be established on the record
CA.294/2015.
15
that the illegal practices have “materially affected” the
result of the election. In the instant case, it is evident
that the number of identified bogus votes (5196) is more
than the lead (38315 - 36960 = 1355) of the Appellant as
per the disputed election results notified by the Election
Commission of Pakistan. If the result of the 37 Polling
Stations in dispute were to be excluded in their entirety
from the final tally i.e. it is Respondent No.1 who would
have received more votes and would be entitled to be
declared as a Returned Candidate. However, it is
impossible to determine whether such bogus votes were
in fact polled in favour of the Appellant or the
Respondents, therefore, re-poll in the said Polling
Stations is the only logical way of determining the will of
the people of the Constituency in question, as has been
ordered by the learned Election Tribunal.
16.
It has been noticed that Section 70 of ROPA,
endows
the
learned
Election
Tribunal
with
the
jurisdiction, in case of commission of illegal practices, to
declare the election as whole void. However, in the
instant case by way of the impugned judgment, elections
in 37 Polling Stations alone have been declared as void
and re-poll thereat ordered. In the circumstances, it
CA.294/2015.
16
needs to be examined whether such order/judgment
could have been passed by the learned Election Tribunal.
17.
An overview of the Constitution of the Islamic
Republic of Pakistan, 1973, and ROPA reveals that
political sovereignty is to be exercised by the chosen
representatives of the people, as is apparent from the
Preamble and the Article 2A of the Constitution. Such
representatives must be chosen by the people through a
free, fair and impartial election, as is mandated by Article
218 of the Constitution. In case of an election dispute,
the same must be resolved through an Election Petition
by the Election Tribunal, established in terms of Article
225 of the Constitution under ROPA. Such disputes,
subject to mandatory procedural requirements, must
necessarily be resolved in a manner that the Will of the
people is given effect to and respected. Such is the
obvious purpose of ROPA and its provisions, like that of
any other law, must be construed through a purposive
rather than a literal interpretation as is now settled law.
Reference in this behalf may be made to the judgments of
this Court, reported as (1) Rana Aamer Raza Ashfaq and
another v. Dr. Minhaj Ahmad Khan and another (2012
SCMR 6), (2) Messrs Gadoon Textile Mills and 814 others
CA.294/2015.
17
v. WAPDA and others (1997 SCMR 641) and (3)
Federation of Pakistan through Ministry of Finance and
others v. M/s. Noori Trading Corporation (Private)
Limited and 14 others (1992 SCMR 710).
18.
It is in the above context that the provisions of
ROPA must necessarily be construed so that the self-
evident purpose of ROPA and its provision is achieved.
Upon the culmination of proceedings upon an Election
Petition filed before it the Election Tribunal can pass any
of the orders or grant any of reliefs as contemplated by
Section 67(1) of ROPA, which for ease of reference is
reproduced hereunder:
“67. Decision of the Tribunal.- (1) The
Tribunal may, upon the conclusion of the
trial of an election petition, make an
order-
(a)
dismissing the petition;
(b)
declaring the election of the
returned candidate to be void;
(c)
declaring the election of the
returned candidate to be void and
the
petitioner
or
any
other
contesting
candidate
to
have
been duly elected; or
(d)
declaring the election as a
whole to be void.
19.
On close scrutiny, it would appear that the
relief contemplated by Section 67(1)(d) of ROPA “declaring
CA.294/2015.
18
the election as a whole to be void” has been used in
contradiction to the relief which may be granted under
Section 67(1)(c) of ROPA, declaring the election of a
returned candidate to be void. It is in the above context
that the phrase “as a whole to be void” must necessarily
be interpreted.
20.
It is a settled law that as a general principle of
construction a word or phrase implying the word “whole”
ordinarily includes any part thereof. Reference in this
behalf may be made to the “Statutory Interpretation” A
Code (Fourth Edition) by F A R Bennion MA (Oxon)
Barrister, wherein it has been observed, as follows:
“Greater includes less The requirement
that commonsense shall be used in
interpretation brings in such obvious
principles as that the greater includes
the less: omne majus continent in se
minus. This is a principle the law
recognizes in many contexts.
…………………………………………………..
Example 197.5 Section 3(1) of the
Criminal Law Act 1967 states that a
person may use such force as is
reasonable in the prevention of crime.
Milmo J said ‘It is, of course, true that
the charge against the defendant was
not that he used force but that he
threatened to use force. However if
force is permissible, something less, for
example
a
threat,
must
also
be
permissible …’”
CA.294/2015.
19
The aforesaid quoted maxim of interpretation is not
unknown to the Courts in Pakistan. Reference in this
behalf may be made to the judgment, reported as
Reference under S. 12, Sindh Courts’ Act, 1926 [PLD
1956 (W.P.) Karachi 178], wherein Justice S.A. Rehman,
as he then was, observed as follows:
“Omne majus continet in se minus - the
greater contains the less – is a well
known maxim of the law.”
21.
The aforesaid indicates that the possibility of
declaring a part of the election i.e. in some of the Polling
Stations to be void appears to have been catered for and
flows from Sections 67 and 70 of ROPA when interpreted
in accordance with the settled rules of statutory
construction especially as both the aforesaid provisions
enumerate the reliefs that can possibly be granted by an
Election Tribunal upon an Election Petition. It is an
equally settled principle of law and a concept firmly
embedded in our jurisprudence that a Court or Tribunal
endowed with the jurisdiction to grant an entire relief is
equally authorized to give partial relief. Reference in this
behalf may be made to the judgment, reported as Sind
Employees’ Social Security Institution and another v.
CA.294/2015.
20
Adamjee Cotton Mills Ltd (PLD 1975 SC 32), wherein it
has been held as follows:
“It is not disputed that the Social
Security Court, on an appeal brought
before it under the above section can
set aside the order appealed against in
its entirety or may grant even partial
relief depending upon the facts of a
particular case. …”
22.
There is yet another aspect of the matter that
the Principle of Severability is well recognized and held
applicable to election matters. In this behalf, this Court
in the judgment, reported as Haji Behram Khan v. Abdul
Hameed Khan Achakzai and others (PLD 1990 SC 352),
held as follows:
“We agree with the High Court
that in a case where a serious violation
of
law
or
any
statutory
rule
is
established by a group of miscreants or
by the supporters of a losing candidate
in one or two polling stations, the
election of the whole constituency may
not be set aside if on the strength of the
votes cast in other polling stations and
the available record a clear result is
determinable. In this case, respondent
No.1 had obtained 5,122 votes and the
next highest number of votes obtained
were by the petitioner Haji Behram
Khan namely 2,625 votes. Admittedly,
the three ballot boxes which were not
recovered contained only 1,785 votes
and even if all of them had been cast in
favour of Haji Behram Khan (petitioner
herein) he would still have lost. In these
circumstances, to declare the election
of the whole constituency as void on
account
of
the
misdoings
or
the
CA.294/2015.
21
hooliganism
perpetrated
by
the
supporters of other candidate would be
to encourage candidates who felt that
they are losing getting the whole
election annulled and frustrating the
wishes of the electorate. This Court will
not
easily
countenance
such
a
malversion of the electoral process. It
has been repeatedly held by this Court
that it shall not act in aid of injustice
and where an order of the High Court
has been passed to bring about a just,
proper and fair result, this Court will
not interfere.”
23.
In the case of Mrs. Monica Kamran Dost v. Mrs.
Lilavati Barchandani and another (PLD 1987 SC 197),
equal numbers of valid votes were polled in favour of the
two
contesting
candidates.
The
Returning
Officer
misapplied the provisions of sub-rule 5 of rule 66 of the
Representation of the Peoples (Conduct of Election) Rules,
1977. On an Election Petition, the Election Tribunal
apparently following a literal interpretation of Section 70
of ROPA, declared the election as a whole void. On
appeal, this Court modified the result and the contention
that the Election Tribunal should have declared the
election of the Appellant to be void was repelled.
24.
Furthermore, such an interpretation would
encourage and enable a losing candidate to precipitate a
re-poll in the entire Constituency by disturbing the
CA.294/2015.
22
election at one or two Polling Stations and thereby
frustrating and subverting the purpose of the law.
25.
The ROPA in addition to the powers conferred
on the Election Tribunal has also conferred powers on
the ECP to pass appropriate orders regarding the conduct
of the election, including Section 103-AA, which is
reproduced hereunder:
“Sec. 103-AA. Power of Commission
to
declare
a
poll
void.—(1)
Notwithstanding anything contained in
this Act, it, from facts apparent on the
face of the record and after such
summary inquiry as it may deem
necessary, the Commission is satisfied
that, by reason of grave illegalities or
violation of the provisions of this Act or
the rules, the poll in any constituency
ought
to
be
declared
void,
the
Commission may make a declaration
accordingly and, by notification in the
official
Gazette,
call
upon
that
constituency to elect a member in the
manner provided for in section 108.
(2)
Notwithstanding the publication
of the name of a returned candidate
under sub-section (4) of section 42, the
Commission may exercise the powers
conferred on it by sub-section (1) before
the expiration of sixty days after such
publication;
and,
where
the
Commission does not finally dispose of
a case within the said period, the
election of the returned candidate shall
be deemed to have become final,
subject to a decision of a Tribunal.
(3)
While
exercising
the
powers
conferred on it by sub-section (1), the
Commission shall be deemed to be a
CA.294/2015.
23
Tribunal to which an election petition
has
been
presented
and
shall,
notwithstanding anything contained in
Chapter
VII,
regulate
its
own
procedure.”
A perusal of the aforesaid provisions makes it clear and
obvious that inter alia on account of violation of any of
the provisions of ROPA or the Rules framed thereunder or
on account of grave illegality, the ECP may declare the
poll in any Constituency as void. It may be noticed that
no specific power has been conferred to declare an
election in a part of the Constituency as void or to direct
a re-poll at a few Polling Stations, yet in exercise of the
powers conferred by Section 103-AA of ROPA, the ECP on
many occasions has ordered re-poll in a few specific
Polling Stations. An order in one of such cases was
challenged, inter alia, on the ground that in terms of
Section 103-AA of ROPA, election as a whole could be
declared void and no partial re-poll in a few Polling
Stations could be ordered. In the said case, reported as
Aftab Shahban Mirani and others v. Muhammad Ibrahim
and others (PLD 2008 SC 779) it was held as follows:
“The emphasis of the learned counsel
for the respondent that the Election
Commission, without holding proper
inquiry could not exercise powers
under section 103-AA of the Act to
declare the election of a constituency as
CA.294/2015.
24
a whole void and there is also no
concept
of
partial
declaration
of
election void, has no legal foundation.
The Election Commission of Pakistan
may exercise power under section 103-
AA of the Act in the manner provided
therein and not beyond that, but the
plain reading of section 103-AA of the
Act would show that meaning of
expression “in the constituency void” is
not
only
referable
to
the
whole
constituency rather its true import is
election in the constituency as a whole
or at one or more polling stations. It
was
held
in
Abdul
Hamid
Khan
Achakzai v. Election Commission of
Pakistan 1989 CLC 1833 as under:--
“Election commission’s jurisdiction
for declaring election of the whole
constituency as void would depend
on
being
satisfied
about
the
existence of grave illegalities or
serious violations of the provisions
of the Act LXXXV of 1976 or
Election Rules in the conduct of
polls in any constituency.”
It was further held that:-
“No doubt Election Commission is
vested with jurisdiction to declare
void,
results
of
the
entire
constituency within the purview of
section 103-AA but such authority
is exercisable only when other
express provisions of law are not
suitable to cater for the given
situation.”
Holding of a re-poll in a few Polling Stations is not alien
to our electoral jurisprudence.
26.
The provisions of the Indian Representation of
the People Act, 1951, with regard to the Election Petitions
CA.294/2015.
25
are not dissimilar to that of ROPA. Though no doubt, the
phrase “declaring the election as a whole void” has not
been employed yet in the relevant provisions, no specific
power to declare the election in a few Polling Stations as
void is granted. The Supreme Court of India upon an
Election Petition has repeatedly declared the result of a
few Polling Stations to be void and a re-poll in such
Polling Stations ordered. Reference in this behalf may be
made to the judgments, reported as Mohinder Singh Gill
and another v. The Chief Election Commissioner, New
Delhi and others (AIR 1978 SC 851) and A. C. Jose v.
Sivan Pillai and others (AIR 1984 SC 921).
27.
In view of the above, it appears that to interpret
Sections 67 and 70 of ROPA so as to limit the jurisdiction
of the Election Tribunal in case of presence of illegal
practices to declare the election as a whole void, would be
too literal, rigid and ritualistic to be accepted in this day
and
age
of
purposive,
realistic
and
beneficial
interpretation. Such interpretation would also offend
against the well recognized common sense principle of
interpretation and is contrary to the erstwhile maxim of
“the greater contains the less” which has been applied by
the Courts. We cannot also loose sight of the fact that the
CA.294/2015.
26
Election Tribunal is for all intents and purposes a Court
and it is settled law that Courts and Tribunals can not
only grant the entire relief permitted by law but also any
part thereof. The principle of severability is also well
recognized and the same is duly attracted to elections
thereby isolating the result in a few Polling Stations
where poll was contaminated and directing a fresh poll
thereat. It is also obvious that such principles have been
applied by this Court, both with reference to the powers
of the ECP under Section 103-AA and by the Election
Tribunal, as is evident from the judgments referred to
and reproduced hereinabove. Directing a re-poll in some
Constituencies as was done in the instant case is also a
course of action adopted and followed by the Supreme
Court
of
India
in
the
election
matters.
Such
interpretation besides conforming to the established
principle of interpretation advances the object and intent
of Articles 218, 219 and 225 of the Constitution and the
provisions of ROPA. Furthermore, thereby the mischief of
encouraging disruption of the poll is suppressed.
28.
The legal position that emerges is that in terms
of Section 70 of ROPA in the eventuality of a failure to
comply with the mandatory provisions of ROPA and the
CA.294/2015.
27
Rules or in the presence of illegal practices, an Election
Tribunal in exercise of powers under Section 70 of ROPA,
may declare the election as a whole to be void. However,
the Election Tribunal is not denuded of the jurisdiction to
grant partial relief of declaring the election at a few
Polling Stations to be void and directing a re-poll thereat.
Which of the two available courses of action to be
followed would depend on the facts and circumstances of
each case. The real and decisive factor would be the
fulfillment of the mandate of the Constitution and ROPA
of ensuring the will of the people is given effect to
through a free, fair and impartial election. It should be
ensured that no prejudice is caused to any of the
candidates. In the instant case, it is not even the case of
the Appellant that any prejudice has been caused to him
nor any such plea has even been taken in grounds of
Appeal or otherwise canvassed at the bar.
29.
We are aware that a different view regarding the
interpretation of Section 70 of ROPA has been taken in
the majority decision of the case reported as Dr. Raja
Aamer Zaman v. Omar Ayub Khan and others (2015
SCMR 1303). However, for the aforesaid reasons, we are
unable to agree therewith.
CA.294/2015.
28
30.
In the instant case, there is no dispute in 83
Polling Stations, the re-election in 37 Polling Stations will
cause no prejudice to the Appellant. No such prejudice or
disadvantage has been pleaded. In fact this aspect of the
order of directing the re-election in only 37 Polling
Stations has not been called into question by the
Appellant either in the grounds of appeal or at the bar by
his counsel during the course of arguments.
31.
In short, no exception can be taken to the
judgment of the learned Election Tribunal dated
10.04.2015. No legal or factual grounds exist warranting
interference therewith by this Court. Consequently, this
Civil Appeal being without merit is dismissed with no
order as to cost.
Judge
Islamabad, the
Judge
10th December, 2015
Judge
Approved For Reporting
Mahtab H. Sheikh/*
CA.294/2015.
29
Qazi Faez Isa, J.- I agree with my most distinguished colleague that
the appeal merits dismissal. However, I do not want to express any
view on whether partial re-poll is permissible under section 70 of
the Representation of the People Act, 1976 since the learned counsel
for the appellant Mr. Farooq H. Naek did not raise this point and
neither counsel made any submission thereon. Therefore, the
discussion and findings on the said issue, contained in paragraphs
16 through to 29 of the Judgment, should not be construed as
concurrence by me of the same.
Judge
| {
"id": "C.A.294_2015.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE TASSADUQ HUSSAIN JILLANI, HCJ
MR. JUSTICE KHILJI ARIF HUSSAIN
MR. JUSTICE SH. AZMAT SAEED
CIVIL APPEAL NO. 297 OF 2014
(On appeal from the judgments dated
3.2.2014 passed by the Lahore High Court,
Lahore in WP No. 31986/2013 etc)
Election Commission of Pakistan through its Secretary
… Appellant
VERSUS
Province of Punjab through its Chief Secretary and others
… Respondents
For the Appellant:
Mr. Muhammad Akram Sh, Sr. ASC
assisted by Mr. Moazzam Habib, Advocate
Mr.
Faraz
Raza,
Advocate
and
Mr.
Mehmood A. Sheikh, AOR
Mr. Sher Afghan, D.G, ECP
Mr. Abdur Rehman, Law Officer
For the Respondents:
Mr. Mustafa Ramday, Advocate General
Barrister Waseem Qureshi, Addl. A.G.
Mr. Muhammad Azhar Siddique, ASC
Mr. Muhammad Saleem, Asstt. Director,
Local Government Bhakkar
Mr. Haq Nawaz, in person
Mr. Muhammad Khan, Narowal, in person
Mr. Muhammad Fakhar-uz-Zaman, in
person
Mr. Muhammad Sarwar, in person
On Court Call:
Mr. Salman Aslam Butt, Attorney General
Mr. S.M. Attique Shah, Addl. Attorney
General
Dates of Hearing:
17 to 21st February. 2014 & 3,4,12,13 &
19th March, 2014
ORDER
TASSADUQ HUSSAIN JILLANI, CJ.- We have heard
learned counsel for the appellant, for the respondents, learned
Advocate General Punjab and learned Attorney General for
Pakistan.
CIVIL APPEAL NO. 297 OF 2014
2
2.
For reasons to be recorded later in the detailed
judgment, we hold, declare and direct as under:-
i)
that the power to hold elections of the Local
Government stand vested in the Election Commission
of Pakistan in terms of Article 140A of the Constitution
of
Islamic
Republic
of
Pakistan.
The
Election
Commission of Pakistan has been mandated to
“organize and conduct the election and to make such
arrangements as are necessary to ensure that the
election is conducted honestly, justly, fairly and in
accordance with law, and that corrupt practices are
guarded against” (Article 218(3) of the Constitution);
ii)
that Sections 8 to 10 of the Punjab Local Government
Act, 2013 and the relevant Rules framed there-under
are ultra vires of the Constitution in so far as they
empower the Provincial Government to carry out the
delimitation of the constituencies for the Local
Government;
iii)
that since the delimitation of constituencies of the
Local Government is part of the process of organizing
and holding elections honestly, justly and fairly which
is
the
Constitutional
mandate
of
the
Election
Commission of Pakistan, the power to carry out such
delimitation should vest with the Election Commission
of Pakistan;
iv)
that since the holding of election of Local Government
has been delayed for more than nine years, which is
CIVIL APPEAL NO. 297 OF 2014
3
violative of the Constitutional command, we are
persuaded to direct the Governments, Federal and
Provincial (of Punjab) to carry out appropriate
amendments / legislation to empower the Election
Commission of Pakistan to initiate and carry out the
process of delimitation of constituencies for the Local
Government
Elections.
This
exercise
should
be
completed within a period of five months from today
and the Election Commission of Pakistan shall
thereafter take requisite measures to carry out the
process of delimitation of constituencies for the Local
Government expeditiously so as to complete the same
within
a
period
of
45
days
of
the
enactment/amendments in laws in terms of this order.
The Election Commission of Pakistan shall further
ensure that the announcement of election schedule
and the process of holding it is complete by or before
15th of November, 2014.
3.
The appeal stands disposed of in terms noted above.
CHIEF JUSTICE
JUDGE
JUDGE
Islamabad, the
19th of March, 2014
Approved For Reporting
Khurram
| {
"id": "C.A.297_2014.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE GULZAR AHMED, CJ
MR. JUSTICE SAYYED MAZAHAR ALI AKBAR NAQVI
CIVIL APPEAL NO. 30-L OF 2018
(On
appeal
against
the
judgment
dated
03.11.2017 passed by the Lahore High Court,
Lahore in Writ Petition No. 26075/2014)
Federation of Pakistan through Secretary Establishment, Islamabad
…Appellant(s)
VERSUS
M.Y. Labib-ur-Rehman and others
…Respondent(s)
For the Appellant(s):
Mr. Sajid Ilyas Bhatti, Addl. Attorney
General
Syed Rifaqat Hussain Shah, AOR
For the Respondent (1):
In person
Date of Hearing:
09.07.2021
…
JUDGMENT
SAYYED MAZAHAR ALI AKBAR NAQVI, J.- The instant appeal has
been filed by the appellant under Article 185(3) of the Constitution of
Islamic Republic of Pakistan, 1973, calling in question the vires of
the impugned judgment dated 03.11.2017 passed by the Lahore
High Court, Lahore, whereby the Constitutional petition filed by the
respondent No. 1 was allowed and a direction was issued to the
appellant to grant antedated promotion to the respondent in BS-21
with effect from 09.10.2002 instead of 30.03.2010 and further to
grant him proforma promotion in BS-22 with effect from 04.05.2005.
The appellant was also burdened with special cost of Rs.200,000/-
for entangling the respondent in unnecessary litigation for years and
intentionally frustrating the findings of this court in his favour.
2.
The facts in brief are that the respondent joined civil
service of Pakistan in the year 1974. Eventually, he was promoted
to BS-20. He was considered for further promotion to BS-21 in the
years 2001 to 2006. However, as he could not meet the minimum
threshold required for promotion, the Central Selection Board
recommended him for supersession. In the year 2007, the case of
the respondent was deferred due to incomplete Personal Evaluation
Civil Appeal No. 30-L/2018
-: 2 :-
Report. In the year 2008 & 2009, he was again considered for
promotion but his case was recommended for supersession. The
case of the respondent was once again considered in the year 2009
but the Central Selection Board again deferred the same on the
ground that he had not earned PER for one full year. Being
aggrieved, the respondent filed Service Appeal before the Federal
Service Tribunal, Islamabad, with a prayer that the PERs earned
during the service when the respondent was placed in BS-19
commencing from the period November, 1992 to April, 1998 be
treated as PERs to have been earned in BS-20 and the same be
considered and re-quantified for the purpose of promotion to BS-21.
The Service Tribunal after taking into consideration all facts and
circumstances dismissed the appeal of the respondent vide
judgment dated 24.04.2004. However, a direction was issued to re-
examine the case of the respondent in its entirety. In pursuance of
the direction issued by the Federal Service Tribunal vide judgment
referred above, a summary was en-routed to the President of
Pakistan through Prime Minister but the same was turned down vide
order dated 27.01.2007. In the second round of litigation, the
respondent preferred to challenge the order dated 27.01.2007 before
the Federal Service Tribunal but the same was dismissed vide
judgment dated 21.07.2009. The order of the Service Tribunal was
assailed before this Court by filing Civil Petition No. 1791/2009,
which was converted into appeal and allowed vide order dated
26.03.2010 with a direction to the appellant to re-evaluate the
grievances of the respondent. Pursuant to the order of this Court, the
case of the respondent was thoroughly probed by the Central
Selection Board and finally it refused to grant him BS-22. However,
his promotion to next grade i.e. BS-21 was notified vide order dated
30.03.2010 and on the very next day i.e. 31.03.2010, he after
attaining the age of superannuation retired from service. Thereafter,
the respondent while availing another forum under the law filed a
Constitutional Petition No. 27499/2012 before the Lahore High
Court, Lahore praying therein for the grant of antedated promotion to
BS-22.
The
learned
High
Court
without
questioning
the
maintainability of the said petition transmitted the copy of the
Constitutional petition to the quarter concerned to be treated as
representation for its consideration. The appellant considered the
Civil Appeal No. 30-L/2018
-: 3 :-
case of the respondent for the third time in compliance with the order
passed by the High Court but again the Central Selection Board
maintained its earlier decision of supersession with approval of the
competent
authority.
The
respondent
once
again
filed
a
Constitutional Petition No. 26075/2014 before the Lahore High
Court, Lahore with a prayer for antedated promotion in BS-21 and
proforma promotion to BS-22, which petition succeeded vide
impugned judgment. Hence, this appeal by leave of the Court.
3.
At the very outset, the learned Additional Attorney
General inter alia contended that the judgment of this Court in the
earlier round of litigation has been complied with in letter and spirit
while granting the respondent promotion to BS-21 yet he assailed
Constitutional jurisdiction of the High Court calling in question the
same grievances, which had been earlier decided by altogether a
different forum; that the respondent could not have approached two
different forums at the same time seeking the same relief, which is
squarely hit by Article 212(2) of the Constitution of Islamic Republic
of Pakistan, 1973; that the learned High Court has wrongly
assumed the jurisdiction and acceded to the prayer of the
respondent, which was uncalled for specially when it is an admitted
fact that the respondent has never touched the minimum threshold,
which was essential for the promotion whereas the High Court has
assumed the jurisdiction of Central Selection Board while passing
the impugned judgment and not only transgressed its jurisdiction
rather has passed the judgment, which is against the law on the
subject.
4.
On the other hand, respondent No. 1 (in person) has
defended the impugned judgment. The main stay of the arguments
advanced by the respondent is that he has been deprived of his
right without any fault at his part rather he has been subjected to
victimization without any blemish on his part; that he has agitated
his grievance for a period of 18 years and finally the same was
redressed by the High Court in the second round of litigation; that he
was fully justified/entitled for the antedated promotion, which was
denied to him without any justiciable reasoning.
5.
We have heard learned Law Officer as also the
respondent in person and have perused the available record.
Civil Appeal No. 30-L/2018
-: 4 :-
We have extensively perused the available record and
even the conduct of the respondent, which is spread over a span of
18 years. The career of the respondent as civil servant remained
smooth till he was placed in BS-20. We have noticed that the
competent authority declined to promote the respondent in next scale
on the basis of clear and sound foundation. It is an admitted fact
that the respondent was superseded for six consecutive years
commencing from 2001 to 2006. Similarly, in 2007 due to incomplete
PERs the case of the respondent was not considered whereas on the
following two years i.e. 2008 & 2009, the case of the respondent
was deferred on the similar grounds i.e. he could not meet the
minimum threshold of 75% marks. The respondent twice approached
the Federal Service Tribunal for redressal of his grievances. In the
second round of litigation the order of Service Tribunal dismissing
respondent’s appeal was challenged before this Court, which leaves
no room that the respondent was fully conversant with the scheme
of the law and the forum to agitate his grievances. After exhausting
the appropriate remedies available under the law, the respondent
preferred to file Constitutional petition in the year 2012 wherein the
question of maintainability was not raised and the same was
transmitted to the competent authority by treating it as a
representation but the competent authority maintained its earlier
decision. The second Constitutional petition in which the respondent
succeeded and which is impugned before us was primarily hit by
the principle of res judicata and consequently ought to have been not
entertained by the High Court in view of the bar contained under
Article 212 of the Constitution of Islamic Republic of Pakistan. The
High Court without indulging into the question of maintainability
passed the order in cyclostyle fashion while assuming the
jurisdiction which is not vested in it. This Court in the recent
judgment dated 21.05.2021 titled as ‘Khalilullah Kakar Vs. PPO
Balochistan’ passed in Civil Appeal No. 909/2020 etc has
candidly held that Article 212 of the Constitution specifically places
an embargo on all other courts except the Service Tribunal to assume
jurisdiction. It is now established that any lis relating to terms and
conditions of service is within the domain of administrative courts
and tribunals established under Article 212 and even if the element
of mala fides, ultra vires or coram non judice is pressed into, the
Civil Appeal No. 30-L/2018
-: 5 :-
same can be entertained and decided by the said courts in its
jurisdiction. There is no denial to this fact that the bare reading of
the said Article is of significant importance especially with reference
to its exclusive jurisdiction to entertain matters relating to terms and
conditions of service. Hence, in all eventualities any petition relating
to terms and conditions of service is to be dealt with by
administrative courts and tribunals specifically established for its
adjudication in pursuance of Article 212 of the Constitution. As a
general principle, the framers of the Constitution while inserting the
said provision have ousted the jurisdiction of other courts including
the High Court under Article 199 of the Constitution. There are
certain exceptions depending upon the facts and circumstances on
case to case basis because of the reason that the law is not static
and the same is growing day by day, therefore, it cannot be said
with certainty that in all eventualities the service issues cannot be
called in question in Constitutional jurisdiction before the High Court.
The
Constitutional
jurisdiction
is
always
considered
as
extraordinary,
which
is
to
be
exercised
in
extraordinary
circumstances if so warranted, hence, the Constitutional jurisdiction
cannot be curtailed stricto sensu leaving some room for its
application where it is so demanding for safe administration of
justice and fair play. The superior courts while exercising
Constitutional jurisdiction must satisfy themselves that they may not
interfere or infringe the jurisdiction of any other statutory forum in
any manner when an equally efficacious / adequate remedy is
available under the statute for the redressal of the grievances of the
litigants. Hence, the superior courts should be reluctant to frustrate
the statutory remedies
while exercising their Constitutional
jurisdiction, which otherwise has to be exercised sparingly while
enabling to advance the legislative intent.
6.
Now, we will consider the merits of the case. The
learned High Court while passing the impugned judgment put much
stress on the point that this Court in the earlier round of litigation
had allowed the appeal of the respondent by observing that he has
been deprived of his right, which was denied to him for technical
reasons. We have perused the earlier judgment of this Court and
found that this Court only sent back the matter to the appellant
department for considering respondent’s case in view of the
Civil Appeal No. 30-L/2018
-: 6 :-
seniority list and the rules on the subject and nowhere in the
judgment it was directed that the respondent be given antedated
promotion. We have been informed that in compliance with the
judgment of this Court, case of the respondent was processed by
circulation and on the recommendation of the Central Selection
Board and after approval of the competent authority, he was
promoted to BS-21 vide notification dated 30.03.2010. So far as
grant of antedated promotion to the respondent in BS-21 with effect
from 09.10.2002 is concerned, we have noted that the respondent
was considered for promotion by the Central Selection Board in the
years 2001 to 2006 but was recommended for supersession due to
the reason that his quantified score was below the minimum
threshold prescribed for promotion. In the year 2007, his case was
deferred due to incomplete Personal Evaluation Reports. In the year
2008 & 2009, he was again considered for promotion but his case
was recommended for supersession due to the same reason i.e. he
could not meet the minimum threshold. Again in the year 2009, his
case was considered for promotion but was deferred due to reason
that he had not earned Personal Evaluation Report for one full year.
The respondent did not challenge his supersession for the years
2001 to 2006 and only filed Service Appeal before the Federal
Service Tribunal in the year 2008 with the prayer that PERs earned
by him in BS-19 during the period from November, 1992 to April,
1998 be treated as PERs to have been earned in BS-20 and be re-
quantified for the purpose of promotion to BS-21 but the same stood
dismissed and on appeal before this Court, the matter was sent to
the department for consideration and ultimately, he was given BS-
21 with effect from 2010. We have been informed that pursuant to
the order passed by the learned High Court in Writ Petition No.
27499/2012 on 21.02.2013, the case of the respondent was again
placed before the Central Selection Board in February, 2014 to
review its earlier recommendation for supersession. The Board had
reopened the cases of earlier supersessions after more than 14
years and after thoroughly checking the record maintained its earlier
decision. As far as the question that as the employees junior to the
respondent have been promoted, the respondent also deserves the
antedate promotion is concerned, this Court in the case of Abdul
Ghani Chaudhry Vs. Secretary Establishment, Islamabad (1998
Civil Appeal No. 30-L/2018
-: 7 :-
SCMR 2544) has held that civil servant who was consciously
superseded after considering his service record by the departmental
promotion committee cannot regain his original seniority or
subsequent promotions so long the order of the promotion committee
superseding him stands in the field and supersession of the civil
servant in such a case is neither advertent nor same falls in the
category of deferment, so as to entitle the civil servant, on
subsequent promotion, to regain his original seniority. In this view of
the matter, the antedated promotion with effect from 09.10.2002
could not have been granted to the respondent and only his
promotion to BS-21 with effect from 30.03.2010 was justified. Rule
4(i) of Civil Servants (Promotion to the Post of Secretary BS-22 and
Equivalent) Rules, 2010, clearly mandates that two years’ service in
BS-21 is mandatory for consideration for promotion to BS-22. As the
respondent did not have the minimum service of two years at the
time of his superannuation on 31.03.2010, therefore, he could not
have been given proforma promotion to BS-22. Under the
aforementioned circumstances, it is established without any
hesitation that the impugned judgment passed by the High Court is
the result of misreading and non-reading of record and the law on
the subject, hence, is not sustainable in the eyes of law. As a
consequence, this appeal is allowed and the impugned judgment is
set aside.
CHIEF JUSTICE
JUDGE
Islamabad, the
9th of July, 2021
Not Approved For Reporting
Khurram
| {
"id": "C.A.30-L_2018.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT: MR. JUSTICE MIAN SAQIB NISAR, HCJ
MR. JUSTICE UMAR ATA BANDIAL
MR. JUSTICE FAISAL ARAB
CIVIL APPEALS NO.300, 346, 812 AND 851 TO 854 OF 2017
(Against the judgments dated 03.08.2016, 16.01.2017, 14.04.2017,
22.01.2016, 19.04.2017 and 05.05.2017 of the Islamabad High
Court, Islamabad passed in Writ Petitions No. 2448, 2612,
4319/2016, 853-854/2015, 636 and 3046/2016)
1.
Waqar Zafar Bakhtawari
In C.A.300/2017
2.
M/s Superior Security Guards Pvt. Ltd.
In C.A.346/2017
3.
Muhammad Nadeem
In C.A.812/2017
4.
Muhammad Ashiq
In C.A.851/2017
5.
Muhammad Mushtaq
In C.A.852/2017
6.
Muhammad Umer Farooq
In C.A.853/2017
7.
Asad Hussain
In C.A.854/2017
…Appellant(s)
VERSUS
1.
Haji Mazhar Hussain Shah etc.
In C.A.300/2017
2.
Sher Muhammad
In C.A.346/2017
3.
Malik Ejaz Amjad etc.
In C.A.812/2017
4.
Muhammad Zubair etc.
In C.A.851/2017
5.
Muhammad Zubair etc.
In C.A.852/2017
6.
Muhammad Ameen Chughtai etc.
In C.A.853/2017
7.
Sheikh Abdul Saboor (decd.) thr. Ltd. etc.
In C.A.854/2017
…Respondent(s)
For the appellant(s):
Mr. Muhammad Ilyas Sheikh, ASC
Ch. Akhtar Ali, AOR
(In C.A.300/2017)
Mr. Naveed Malik, ASC
(In C.A.346/2017)
Mr. Junaid Akhtar, ASC
(In C.A.812/2017)
Mr. Fiaz Ahmed Jandran, ASC
Syed Rifaqat Hussain Shah, AOR
(In C.A.851 & 852/2017)
Raja M. Aleem Khan Abbasi, ASC
(In C.As.853 & 854/2017)
For the respondent(s):
Mr. Mir Afzal Malik, ASC
(In C.As.300 & 853/2017)
Mr. Waseem Ahmed Qureshi, ASC
(In C.A.346/2017)
CAs 300,346,812,851/17 etc.
-: 2 :-
Mr. Tariq Khushnood Qureshi, ASC
(In C.A.812/2017)
Syed Masood Hussain, ASC
Syed Rifaqat Hussain Shah, AOR
(In C.As.851 & 852/2017)
Mr. Sajid Ilyas Bhatti, ASC
(In C.A.854/2017)
Amicus curiae:
Syed Najmul Hassan Kazmi, Sr. ASC
Sardar Muhammad Aslam, ASC
Date of hearing:
20.9.2017
…
ORDER
MIAN SAQIB NISAR, CJ.- All these appeals with the leave
of the Court primarily involve the same proposition of law, therefore,
are being disposed of together.
2.
In all these cases, the appellants are the tenants of the
respondents/landlords and the premises in question are situated in
the Islamabad Capital Territory (ICT). Thus, in order to seek eviction of
the appellants, the respondents filed applications under the provisions
of Section 17 of the Islamabad Rent Restriction Ordinance, 2001 (the
Ordinance, 2001) on the ground, inter alia, that the period of tenancy
has expired. Resultantly, the forums below passed the eviction orders
on the basis of expiry of the term of tenancy.
3.
Leave in these cases was granted to consider whether the
expiry of the term of tenancy is one of the grounds as envisaged by
Section 17 of the Ordinance, 2001 for the eviction of the tenant.
4.
Mr. Muhammad Ilyas Sheikh, ASC, learned counsel for
the appellant in Civil Appeal No.300 of 2017 has led the arguments on
behalf of the appellants’ side against eviction orders and submitted
that in view of the unambiguous and clear language of Section 17 of
the Ordinance, 2001 “a tenant in possession of a building or a rented
land shall not be evicted therefrom except in accordance with the
CAs 300,346,812,851/17 etc.
-: 3 :-
provisions of this Section” (emphasis supplied); thus, the Rent Controller
would only have the jurisdiction to pass an eviction order if the case
squarely falls within the purview of the said Section; therefore, as
there is no specific ground mentioned in the noted section, which
enables the landlord to seek eviction of the tenant on expiry of period
of tenancy, the impugned orders are not only against the law but
passed without jurisdiction. He has also submitted that despite the
expiry of the period of tenancy, a person who was holding the property
as a tenant shall continue to be a tenant and reference in this behalf
has been made to the definition of term “tenant” given in Section 2(j)
of the Ordinance, 2001. He, thus, urged that on account of the expiry
of the tenancy period, the status of tenant neither extinguishes nor
changes and he (the tenant) continues to be entitled to occupy the
property, and shall only be liable to be evicted if the strict grounds set
out in Section 17 of the Ordinance, 2001 are met with specifically.
With regard to the effect and implication of Section 6 of the
Ordinance, it is argued that such provision is subject to the
provisions of Section 17 of the Ordinance, 2001; meaning thereby that
it is subservient and subordinate to the said section, but in any case
Section 6 of the Ordinance, 2001 by itself does not provide any
ground for eviction of the tenant on expiry of the tenancy period. The
learned counsel has also submitted that the forums below, for
justifying the eviction order, have relied upon the provisions of Section
17(2)(ii)(b) of the Ordinance, 2001, which provides that a tenant can
be evicted if he “has infringed any condition on which the building or
rented land is held”. This provision, according to the learned counsel,
relates to the terms and conditions specified in the tenancy agreement
under which certain obligations have been imposed upon the tenant,
CAs 300,346,812,851/17 etc.
-: 4 :-
but it has nothing to do with the expiry of the period of tenancy and
eviction on that account. It is also argued that Section 17 of the
Ordinance, 2001 opens with the negative expression that “a tenant in
possession of a building or a rented land shall not be evicted therefrom
except in accordance with the provisions of this Section” (emphasis supplied),
thus, the mandate of the law for the purposes of eviction of the tenant
is only restricted to the said section and no other provision of the
Ordinance in this context can be resorted to, specifically Section 6 of
the Ordinance, 2001, for the reason that (i) it does not provide the
ground for eviction and (ii) it is subject to the provisions of Section 17
ibid. It is further submitted that Section 4 of the Ordinance, 2001 is
an overriding provision and excludes the application of any other law
to the issues covered by the Ordinance, 2001, therefore, the general
law i.e. the Transfer of Property Act, 1882 (the Act, 1882) regarding the
determination of tenancy, the right of holding over and entitlement of
the landlord to get back the possession of the rented premises on the
expiry of tenancy term, shall not be attracted. In support of his
arguments, he has relied upon the judgments of this Court reported
as Chairman, Federal Board of Revenue Islamabad Vs. Messrs Al-
Technique Corporation of Pakistan Ltd. and others (PLD 2017 SC
99), Mst. Zarina Khan Vs. Mst. Farzana Shaib (2017 SCMR 330),
Lucky Cement Ltd. Vs. Commissioner Income Tax, Zone
Companies, Circle-5 Peshawar (2015 SCMR 1494) and Rana Abdul
Hameed Talib Vs. Additional District Judge Lahore and others
(PLD 2013 SC 775) and the judgment of the learned Lahore High
Court reported as Mst. Munawar Sultana Vs. Additional District
Judge, Islamabad and 2 others (2005 CLC 1119 at Page 1123).
CAs 300,346,812,851/17 etc.
-: 5 :-
5.
In Civil Appeals No.853 and 854/2017, Raja Muhammad
Aleem Abassi, learned ASC for the appellants, has argued that on
account of the expression ‘subject to’ used in Section 6 of the
Ordinance, 2001, such Section in its application is only restricted to
the case covered by Section 17(4)(b) of the Ordinance, 2001 and the
proviso there to, which provides that if “the tenancy is for a specified
period agreed upon between the landlord and the tenant, the landlord
shall not be entitled to apply under this sub-section before the expiry of
such period.” The learned counsel for the appellants in other cases
more or less have made the same submissions.
6.
The learned counsel for the respondents, however, argued
that Section 6 of the Ordinance, 2001 in law extinguishes and puts an
end to a tenancy on expiry of the tenancy period either fixed between
the parties or that envisaged by the said Section itself, and thereafter,
renders such tenancy invalid. Resultantly, if the tenant continues to
occupy the property after the expiry of that period, it shall be an
infringement of the terms and conditions of tenancy in terms of
Section 17(2)(ii)(b) of the Ordinance, 2001 and such a tenant shall be
liable to be evicted. Reliance by the respondents’ side has been placed
upon the judgments reported as Qaiser Javed Malik Vs. Pervaiz
Hameed (2009 SCMR 846), Ghulam Abbas Vs. Additional Sessions
Judge (West) Islamabad and 2 others (2015 MLD 1740), Nadeem
Raza Abbasi Vs. Sardar Abu Bakar and 2 others (2016 CLC 1051) ,
Pakistan State Oil Company (Pvt.) Vs. Zulekha Khanum and 6
others (2016 CLC 1850) and, Sh. Amir Farooq Vs. Sh. Usman and
others (2016 MLD 103).
7.
Syed Najmul Hassan Kazmi, learned Sr. ASC, and Sardar
Muhammad Aslam, learned ASC, were appointed as amici curiae in
CAs 300,346,812,851/17 etc.
-: 6 :-
these matters. Syed Najmul Hassan Kazmi, learned Sr. ASC has
submitted that there are three laws on the subject, which are relevant;
(i) West Pakistan Urban Rent Restriction Ordinance, 1959 (Ordinance,
1959); (ii) an amendment made therein in the year 1965, i.e. West
Pakistan Urban Rent Restriction (Amendment) Ordinance, 1965
(Amendment Ordinance, 1965) and (iii) Punjab Rented Premises Act
2009 (Act, 2009). According to him, the object and purpose of the
Ordinance, 1959 was to restrict the undue increase of rent and also to
bar the eviction of a tenant which otherwise was done by virtue of the
general law of the land, namely the Act, 1882. He also mentioned
Section 13(2)(ii)(b) of the Ordinance, 1959 and made reference to the
amendment brought in the said Ordinance vide the Amendment
Ordinance, 1965 to contend that the Ordinance, 1959 was made
applicable to all the tenancies, which were prevalent at the time of the
enforcement of the Ordinance, 1965 and to those created thereafter. It
is also submitted that even if the special law has an overriding effect
on the other laws, including the general law, the terms and conditions
settled between a landlord and the tenant, which were inconsistence
with the special law could not be given effect to and the special law
shall prevail; but where there is no conflict, as mentioned above the
general law shall be applicable. In this respect he has placed reliance
on the judgment of this Court reported as Mrs. Zarina Khawaja Vs.
Agha Mahboob Shah (PLD 1988 SC 190 at 199 to 201) to argue that
while considering the analogous provisions of Sindh Rented Premises
Ordinance, 1979 (the Ordinance, 1979), this Court has come to the
conclusion that where the provisions of aforesaid law or the lease
agreement are not violated, the general law of the land shall be
attracted. It has also been mentioned that in this context the general
CAs 300,346,812,851/17 etc.
-: 7 :-
law which shall apply is the Act, 1882 . Section 108(q) of the Act of
1882 clearly postulates that after the determination (expiry) of the
tenancy period, the tenant is bound to put the landlord back to the
possession of the lease property. He has also mentioned the preamble
of the Ordinance, 2001 to submit that the said Ordinance has been
enforced “to regulate the relations between the landlords and tenants of
rented premises in the Islamabad Capital Territory and to provide
matters ancillary thereto or connected therewith”. This is unlike the
preamble of Ordinance, 1959, which was meant to resist the increase
in the rent and the eviction of the tenants. It is therefore argued that
Section 6 of the Ordinance, 2001 has been deliberately made part of
the Ordinance which provides that “Subject to the provisions of section
17, no tenancy shall be valid beyond such period as the landlord and
tenant may, by mutual agreement, fix before or after the commencement
of the tenancy”. The pith and substance of his arguments is that
Section 6 ibid should be read in conjunction with Section 17 ibid and
not in a manner that it shall be held nugatory and redundant, as no
provision of a statute should be rendered redundant or made
nugatory. Thus, according to the learned counsel, the provisions of
Section 17(2)(ii)(b) shall be read with Section 6 of the Ordinance, 2001
so that both the sections could be saved and harmoniously
interpreted. In connection with Section 2(j) of the Ordinance, 2001, it
is argued that this is only meant for the purposes of enabling the
landlord to seek eviction of his tenant under the provisions of the
Ordinance, 2001 even after expiry of the term of tenancy, in that a
person who holds over the property after the expiry of tenancy, should
be evicted under the provisions of the Ordinance, 2001 rather
approaching the civil court in its pecuniary jurisdiction; thus, Section
CAs 300,346,812,851/17 etc.
-: 8 :-
2(j) ibid cannot be given any enlarged meaning so as to hold that a
person who is in occupation of a property beyond the tenure of
tenancy, shall remain to be a tenant for an unlimited and unrestricted
period and that the landlord shall have to seek his eviction only on the
ground of default in payment of rent, subletting or personal bona fide
need, etc. He elaborated that this provision can only be construed as a
reference for bringing an action against such tenant under the
provisions of Section 17 of the Ordinance, 2001.
8.
In order to appreciate the submissions made by the
learned counsel for the parties, we find it expedient to reproduce the
relevant provisions of law in a sequence. Section 2(j) of the Ordinance,
2001 defines a tenant and reads:
2(j)
“tenant” means any person who undertakes or is bound to
pay rent as consideration for the possession or occupation of a
building or rented land by him or by any other person on his
behalf, and includes,___
(i)
any person who continues to be in possession or
occupation after the termination of his tenancy; and
(ii)
in the event of the death of the tenant, the members of his
family who continue to be in possession or occupation of
the building or rented land.
Section 6 of the Ordinance:
6. Tenure of tenancy. Subject to the provisions of section 17, no
tenancy shall be valid beyond such period as the landlord and
tenant may, by mutual agreement, fix before or after the
commencement of the tenancy:
Provided that a tenancy in force before the commencement
of this Ordinance for which no period is fixed shall cease to be
CAs 300,346,812,851/17 etc.
-: 9 :-
valid on the expiration of a period of two years from such
commencement:
Provided further that a tenancy which comes into force
after the commencement of this Ordinance and for which no period
is fixed shall not be valid after expiration of period of six months
from the date of the receipt by the tenant of a notice in writing
given by the landlord terminating the tenancy.
While the relevant part of Section 17 of the Ordinance envisages as
follow:
17. Eviction of tenant. (1) A tenant in possession of a building or
rented land shall not be evicted therefrom except in accordance
with provisions of this section.
(2)
A landlord who seeks to evict his tenant shall apply to the
Controller for a direction in that behalf. If the Controller, after
giving the tenant a reasonable opportunity of showing cause
against the application, is satisfied that:-
(i)
…………………………………
(ii)
the tenant has without the written consent of the landlord:-
(a)
………………………..
(b)
used the building or rented land for purpose other
than that for which it was leased or has infringed
any conditions on which the building or rented land
is held; (emphasis supplied)
(iii)
…………………………………….
(iv)
…………………………………….
(v)
…………………………………….
Explanation. For the purpose of clause:-
(i)
…………………………..
(ii)
………………………….
(3)
…………………………
(4)
A landlord may apply to the Controller for an order
directing the tenant to put the landlord in possession:-
(a)
……………………………..
CAs 300,346,812,851/17 etc.
-: 10 :-
(b)
in the case of a commercial building or rented land, if he
requires it in good faith for his own use or for the use of
any member of his family:
Provided that where the tenancy is for a specified
period agreed upon between the landlord and the tenant,
the landlord shall not be entitled to apply under this sub-
section before the expiry of such period:
…………………….”
9.
Heard. It may be necessary to mention here that the
portions of Section 17 ibid which have been omitted from reproduction
are the grounds for eviction of tenant, such as, default in the payment
of rent, reconstruction, causing damage to the rented property,
nuisance, personal requirement, etc. It is settled that while
interpreting the law, a specific provision of any statute, which is
independent in nature, cannot and should not ordinarily be held to be
redundant, especially on the touchstone of another independent
provision of the same statute; rather all possible efforts should be
made to apply and adhere to the rules of purposive and harmonious
construction, so that the allegedly conflicting provisions should be
reconciled and saved. If some precedent law is required in this behalf,
reference can be made to the judgments reported as Combind
Investment (Pvt.) Ltd. Vs. Wali Bhai (PLD 2016 SC 730), Lucky
Cement Ltd. Vs. Commissioner Income Tax, Zone Companies,
Circle-5, Peshawar (2015 SCMR 1494), Aftab Shahban Mirani Vs.
Muhammad Ibrahim (PLD 2008 SC 779), Collector of Sales Tax
and Central Excise (Enforcement) and another Vs. Messrs Mega
Tech (Pvt.) Ltd. (2005 SCMR 1166), Mirza Shaukat Baig Vs. Shahid
Jamil (PLD 2005 SC 530) and D.G. Khan Cement Company Ltd.
Vs. Federation of Pakistan and others (2004 SCMR 456).
CAs 300,346,812,851/17 etc.
-: 11 :-
10.
Now applying the above principle, Section 6 of the
Ordinance, 2001 has to be given some meaning to determine its role in
the Ordinance. The language of the Section 6 ibid as reproduced above
is very clear and it mandates that after the expiry of the tenancy
period, or beyond the tenancy period, no tenancy shall be valid. The
word ‘valid’ has to be given its ordinary dictionary meaning as it has
not been defined in the Ordinance. According to the Oxford dictionary
‘valid’ means “legally binding due to having been executed in
compliance with the law; legally or official acceptable”. According to
Black’s Law Dictionary Fifth Edition, ‘valid’ means “Having legal
strength or force, executed with proper formalities, incapable of being
rightfully overthrown or set aside. legally sufficient; binding. Of binding
force; legally sufficient or efficacious; authorized by law.” According to
Words and Phrases (Permanent Edition) Vol-44 the terms “valid”
means “in law having legal strength, force, and effect, or incapable of
being rightfully overthrown or set aside; “valid” means efficient,
effective; accomplishing what is claimed or intended.”. The word “no”
appearing in Section 6 of the Ordinance, 2001 renders a tenancy
beyond the expiry or tenure “invalid”. The term “invalid” has been
defined in Oxford dictionary as “not valid, not legally recognized
because it contravenes a regulation of law”. In Black’s law Dictionary
“invalid” means “not legally binding; without basis in fact”. In Words
and Phrases Permanent Edition Vol-22A “ invalid” means “of no force;
weight; cogency; not valid; weak. Law having no force or effect; void,
null; as an invalid contract”.
11.
Thus, as per the clear mandate of Section 6 ibid, such a
tenancy shall come to an end after the expiry of the term of tenancy
and if thereafter the tenant holds such a property without the consent
CAs 300,346,812,851/17 etc.
-: 12 :-
of the landlord, it shall be a clear violation and the infringement of the
condition of the tenancy, on which the property was held by him,
because the condition of tenancy is for a particular period of time
either by the terms stipulated in the tenancy agreement or by the
afflux of time, which is specified in Section 6 (ibid.) itself. Thus, the
case is squarely covered by Section 17(2)(ii)(b) of the Ordinance, 2001.
Much emphasis has been made on the language of Section 17(1) of the
Ordinance, 2001 that a tenant shall not be evicted except in
accordance with the provisions of the said Section, wherein certain
specific grounds have been provided and Section 6 ibid has been made
subject to Section 17 ibid which means that it is subordinate and
subservient to the said Section. In this regard it is to be noted that in
Black’s Law Dictionary, fifth Edition, the term “subject to” has been
defined as under:-
“Liable, subordinate, subservient, inferior, obedient to;
governed or affected by; provided that; provided; answerable
for.” (emphasis supplied)
Thus, the expression “subject to” cannot always be construed as
‘limited to’, but can also be read as “provided that” or “provided”,
which means that Section 6 ibid would be applicable provided that
there is a ground available in Section 17 ibid. Therefore, applying the
above said definition to the expression “subject to” a tenant, who holds
the property beyond the term of tenancy, under Section 17(2)(ii)(b) of
the Ordinance, 2001 shall be evicted from the premises which is held
on the condition for holding it for a specific period of time if he
continues to occupy the rented property beyond such period without
the “written consent” of the landlord. Eviction of the tenant thus will be
CAs 300,346,812,851/17 etc.
-: 13 :-
on the grounds of violation of the term of tenancy which will be seen
as a condition of the tenancy agreement. This purposive and
harmonious interpretation of Section 6 ibid, when it interplays with
the provisions of Section 17 ibid gives effect to both the allegedly
conflicting provisions of the Ordinance, 2001. If some other meaning is
given thereto, it shall render Section 6 ibid completely redundant, with
the consequence that though the tenancy after the expiry of the agreed
or statutory period has come to an end and is extinguished as per
section 6 ibid, yet the landlord cannot seek the eviction of the tenant
and may have to seek eviction only on any of the grounds mentioned
specifically in Section 17 ibid, such as, default in payment of rent,
subletting, reconstruction, personal requirement, damage to the
property. This would lead to ludicrous legal consequences in that not
only shall Section 6 ibid be rendered redundant and nugatory; it shall
allow a tenant of the property to continue to occupy the property
though he has no right to occupy the same, as his tenancy per the
command of law is no more valid. This shall be the most illogical and
most ineligible interpretation of Section 6 ibid when read with Section
17(2)(ii)(b) of the Ordinance, 2001. So far as the argument that in the
Act, 2009 a separate ground for eviction, on account of expiry of
tenancy, is specifically mentioned is concerned; suffice it to say that in
some later laws on the same subject, Provinces have become wiser to
make the law more clear. However, it does not mean that the law
earlier in force in Islamabad should be interpreted on the basis of a
later provincial enactment. As far as the argument about the definition
of the ‘tenant’ provided in Section 2(j) (supra) is concerned, we are of the
considered view that the definition given therein is for the purpose of
conferment of jurisdiction upon the Rent Controller, and provides the
CAs 300,346,812,851/17 etc.
-: 14 :-
landlord a right to apply for eviction of the tenant occupying the rented
property on an invalid tenancy under the provisions of the Ordinance,
2001. It does not affect either the clear provisions of Section 6 and/or
the provisions of Section 17(2)(ii)(b) of the Ordinance, 2001.
12.
Thus, we conclude that as after expiration of the tenancy
period, a tenant, though can continue to hold over the possession of
the rented premises, but his tenancy is rendered invalid, in that, it has
come to an end and if there is no express consent of the landlord to
extend the tenancy period the tenant shall be guilty of having infringed
the conditions of tenancy, rendering him liable to be evicted under
Section 17(2)(ii)(b) of the Ordinance, 2001 . In the light of the above,
we do not find any merit in these appeals, which are hereby dismissed.
No orders as to the costs.
CHIEF JUSTICE
JUDGE
JUDGE
Announced in open Court
on 21.12.2017 at Lahore
Approved For Reporting
Mudassar/
| {
"id": "C.A.300_2017.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT: MR. JUSTICE MIAN SAQIB NISAR
MR. JUSTICE FAISAL ARAB
MR. JUSTICE TARIQ PARVEZ
CIVIL APPEAL NO.301 OF 2014
(Against the judgment dated 10.1.2014
of the Election Tribunal, Sukkur passed
in E.P.No.286/2013)
Feroze Ahmed Jamali
…Appellant(s)
VERSUS
Masroor Ahmad Khan Jatoi etc.
…Respondent(s)
For the appellant(s):
Mr. Farooq H. Naek, Sr. ASC
Raja Abdul Ghafoor, AOR
For respondent No.1:
Agha Faisal, ASC
Mr. Tariq Aziz, AOR
For rest of respondent(s)
Ex-parte
Date of hearing:
11.01.2016
…
JUDGMENT
MIAN SAQIB NISAR, J.- This appeal under Section 67(3) of
the Representation of People Act, 1976 (Act) assails the judgment dated
10.1.2014 passed by the learned Election Tribunal, Sukkur, whereby the
Tribunal had dismissed the election petition of the appellant.
2.
The facts in relation to the instant appeal are:- the appellant
and respondent No.1 (respondent) contested the general election of PS-23,
Naushahro Feroze-V, District Naushahro Feroze, Sindh. The respondent,
who was declared a returned candidate by the Election Commission of
Pakistan (ECP) vide notification dated 22.5.2013, obtained 30,674 votes
whereas the appellant (runner up) secured 29,063 votes, with the
differential between the two being 1,611 votes. The appellant challenged
this election primarily on the grounds (as transpires from the record and also
apprised by the learned counsel for the appellant) that a large number of bogus votes
C.A.301 of 2014.doc
-: 2 :-
were got cast by the respondent, the election was manipulated and
procured by him through coercion and in connivance with the election
staff; the Returning Officers and the election staff violated the provisions
of Sections 33, 38 and 39 of the Act and thus the election has been
materially affected which should be declared void. The election petition
was contested by the respondent on merits, besides an objection was
raised by him that the petition and the annexures are not verified in
accordance with law and that the grounds stated therein (petition) are
vague and general in nature. Be that as it may, the learned Tribunal
framed certain issues which are reproduced as under:-
“1.
Whether the petition is not maintainable in terms of
S. 54 and 55 of the Representation of Peoples Act,
1976?
2.
Whether Respondent No.1 Returned Candidate
committed illegal and corrupt practices in the
election process by way of coercive methods,
manipulating bogus votes, stuffing the ballot boxes
with bogus ballot papers?
3.
Whether the Returning Officer and other election
staff had acted in violation of provisions of the
Representation of Peoples Act, 1976?
4.
Whether the Respondent No.1 stuff the bogus votes
using all foul means and the ballot papers bears
bogus thumb impressions on the counter-foils and
such report is called from NADRA authorities by
referring thumb impressions on the counter-foils,
Pictorial Electoral list?
5.
Whether free, fair and transparent election is not
held in the constituency PS-23 Naushero-Feroze-V?
6.
What should the order be?”
The parties led their evidence and after conclusion of the trial the
election petition was dismissed by the learned Tribunal while holding
that the same as well as the annexures were not verified in accordance
C.A.301 of 2014.doc
-: 3 :-
with law, that full particulars of corrupt and illegal practices were not
mentioned in the petition, and that the appellant failed to establish the
commission of corrupt and illegal practices. It may be pertinent to
mention here that during the course of the proceedings before the
learned Tribunal, the appellant had moved an application for the
examination and verification of the counterfoils of 19 polling stations
with the object to prove that certain votes cast were not as per the
mandate of Section 33 (supra) and, therefore, such votes be excluded from
the count. Pursuant to the above the learned Tribunal sought the
verification of the counterfoils of the said polling stations from NADRA
and as per its report 2,417 used counterfoils were declared as invalid, i.e.
which either contained NIC numbers which were not issued by NADRA or
which did not bear any NIC number whatsoever. Further, 61 used
counterfoils were held to be without fingerprints/thumb impressions.
3.
Learned counsel for the appellant, while referring to the
verification portion of the election petition, submitted that the petition
was verified in accordance with the law. Reliance in this regard is placed
on the case reported as Moulvi Abdul Qadir and others vs. Moulvi
Abdul Wassay and others (2010 SCMR 1877). He further stated that
pursuant to an application filed by the respondent under Section 63(a)
read with Section 55(3) of the Act the learned Tribunal had put to rest
the point of verification vide order dated 23.8.2013 which operated as res
judicata when the learned Tribunal earlier gave its opinion on the same
issue. With respect to the allegation of non-verification of annexures,
learned counsel for the appellant drew our attention to the annexures
and submitted that all 146 documents were attested on oath by an Oath
Commissioner and have also been signed by the appellant himself. In
this respect he further stated that these annexures were exhibited
documents and no such objection vis-à-vis non-verification was raised at
C.A.301 of 2014.doc
-: 4 :-
the time they were received in evidence. Regarding the learned Tribunal’s
finding that there were only general allegations of corrupt and illegal
practices in the election petition, learned counsel for the appellant while
referring to paragraph 6 of the petition argued that the same contained
specific and not general allegations. Coming to the evidence led by the
appellant regarding proof of corrupt and illegal practices, learned counsel
for the appellant stated that the testimony of the appellant himself and
two of his polling agents, namely Abdul Latif and Moula Bux contained
sufficient proof of the allegations of corrupt and illegal practices. Further,
that the complaints made to the Returning Officers and Deputy
Returning Officers also constituted sufficient evidence as they went un-
rebutted. Learned counsel for the appellant then argued in support of the
NADRA report and stated that 2,417 and 61 votes were liable to be
excluded from the election result and since the total number of excluded
votes (2,478) stands greater than the differential of votes secured by the
respondent and appellant, thus the election result would be materially
affected, thereby bringing the case within the purview of Section 70 of
the Act. He stated that this aspect of the matter has been overlooked by
the learned Tribunal and no reasons were given by the learned Tribunal
for rejecting such report. Finally it was also argued that five different
counts/results had been issued subsequent to which the appellant’s
application for recounting was accepted and recounting was ordered
which reflected substantial differences between the number of votes in
the consolidated result and the number of votes after the recount and
this also brings the case within the mischief of Section 70 of the Act.
4.
In order to controvert the arguments of the learned counsel
for the appellant, learned counsel for the respondent submitted that the
NADRA report was only to the extent of verification of thumb impressions
of 19 polling stations, and there were no ‘out of constituency’ votes which
C.A.301 of 2014.doc
-: 5 :-
suggests that there was no bogus voting. With respect to 2,147 used
counterfoils which had invalid NIC numbers, learned counsel submits
that these are those counterfoils where the correct NIC was produced
when the voter came to vote and an error was committed while writing
the NIC number down on the counterfoils, and since this was due to a
lapse by the election staff, the returned candidate should not be
prejudiced by such error/lapse. About the verification of the election
petition, learned counsel for the respondent when questioned concedes
to the extent that there was no flaw in verification of specific paragraph
numbers, however, to the extent that the election petition as a whole and
the annexures were not verified in accordance with law, he submits that
the petition should be dismissed.
5.
Heard. The key questions involved in this matter are:- first,
whether the petition and the annexures thereto had been verified in
accordance with law, if not what is the effect thereto; secondly, whether
the appellant had been able to prove illegal and corrupt practices as per
the law and such positive evidence was led which has not been taken
into account by the learned Tribunal; and thirdly, what is the true import
of the NADRA report and what is the effect thereto and whether in the
light thereof the present election has been materially affected. Before
moving on, we find it expedient to reproduce the relevant provisions (parts)
of Sections 33, 55 and 70 of the Act which read as follows:-
33.
Voting procedure.—(1) Where an elector presents
himself at the polling station to vote, the Presiding Officer
shall issue a ballot paper to the elector after satisfying
himself about the identity of the elector and shall, for that
purpose, require the elector to produce his identity card
issued under the National Database and Registration
Authority Ordinance, 2000 (VIII of 2000)].
(2)
Before a ballot paper is issued to an elector—
C.A.301 of 2014.doc
-: 6 :-
(a) …………………………………………………………
(b) …………………………………………………………
(c) …………………………………………………………
(cc) ………………………………………………………
(d) …………………………………………………………
(e) the Presiding Officer shall record on the
counterfoil of the ballot paper the number of the
elector on the electoral roll the number of National
Identity Card of the elector, stamp it with the official
mark, sign it and obtain on it the thumb impression
of the elector.
(3)
A ballot paper shall not be issued to a person who—
(a) fails or refuses to produce his identity card
issued
under
the
National
Database
and
Registration Authority Ordinance, 2000(VIII of
2000);
(b) …………………………………………………………
(c) …………………………………………………………
(d) …………………………………………………………
(4)
……………………………………………………………
(5)
……………………………………………………………
(a) …………………………………………………………
(b) …………………………………………………………
(c) …………………………………………………………
(6)
……………………………………………………………
(7)
……………………………………………………………
55. Contents of petition.—(1) Every election petition shall
contain—
(a) A precise statement of the material facts on
which the petitioner relies;
C.A.301 of 2014.doc
-: 7 :-
(b) full particulars of any corrupt or illegal practice
or other illegal act alleged to have been committed,
including as full a statement as possible of the
names of the parties alleged to have committed such
corrupt or illegal practice or illegal act and the date
and place of the commission of such practice or act;
and
(c) the relief claimed by the petitioner.
(2)
A petitioner may claim as relief any of the following
declarations, namely:—
(a) that the election of the returned candidate is
void;
(b) that the election of the returned candidate is
void and that the petitioner or some other person
has been duly elected; or
(c) that the election as a whole is void.
(3)
Every election petition and every schedule or annex
to that petition shall be signed by the petitioner and verified
in the manner laid down in the Code of Civil Procedure,
1908 (Act V of 1908), for the verification of pleadings.
70. Ground for declaring election as a whole void.—The
Tribunal shall declare the election as a whole to be void if it
is satisfied that the result of the election has been materially
affected by reason of—
(a) the failure of any person to comply with the
provisions of the Act or the rules; or
(b) the prevalence of extensive corrupt or illegal
practice at the election.
6.
For resolving the first question it may be stated that the
learned Tribunal has non-suited the appellant on the reasoning that he
has not specifically mentioned as to which paragraphs of the election
petition are verified upon his own knowledge and which are upon
information received and believed to be true, suffice it to say that this
Court in the case reported as Sardarzada Zafar Abbas and others vs.
Syed Hassan, Murtaza and others (PLD 2005 SC 600) has held such
C.A.301 of 2014.doc
-: 8 :-
objection to not be very material. Although the Court in Zafar Abbas
(supra) held that the validity of the verification shall depend on the facts
of each case, but in the instant matter we do not find the so-called lapse
indicated by the learned Tribunal to be of any material consequence,
warranting dismissal of the election petition on this ground simpliciter.
The case of Zafar Abbas (supra) has been endorsed in Moulvi Abdul
Qadir (supra) and reliance by the learned counsel upon the latter in this
regard is rightly placed and his case/plea quite aptly falls within the
ratio of the law laid down therein. Besides we have examined the
verification part of the election petition and we find that it complies with
the provisions of Order VI Rule 15 of the Code of Civil Procedure, 1908
(CPC) in letter and spirit. The reasons of the learned Tribunal and the
argument of the respondent that it does not mention the date, day and
place of the verification or the proper identification of the appellant,
suffice it to say that at the bottom of the petition (in the verification portion),
though not in typed form the date has been clearly written by hand.
There is another stamp of the Oath Commissioner appearing on the left
of the verification portion of the election petition which mentions the date
as 26.6.2013 (albeit also written by hand). With respect to attestation, the Oath
Commissioner in clear and unequivocal terms has stamped ‘on S.A. before
me’ (i.e. on solemn affirmation before me), which clearly indicates that the
appellant was duly present before the Oath Commissioner at the time of
attestation and was administered oath. It is also spelt out from the Oath
Commissioner’s stamp that the election petition was attested at Sukkur.
As regards identification of the appellant, he has been duly identified by
Mukesh Kumar, Advocate who has mentioned of knowing the appellant
personally; thus we are of the candid view that in light of the law laid
down by this Court in Lt.-Col. (Rtd.) Ghazanfar Abbas Shah vs. Mehr
C.A.301 of 2014.doc
-: 9 :-
Khalid Mehmood Sargana and others (2015 SCMR 1585) there is no
defect in the verification.
7.
Now coming to the annexures, we have examined all the
documents which were appended by the appellant along with the election
petition and they comprise of the notification of the ECP dated
22.5.2013, statements of count, various provisional results, applications
for recounting of votes and complaints made by the appellant regarding
anomalies in the election process. Suffice it to say that these are not the
documents propounding and setting out any independent or additional
substantial grounds for challenging the election or furnishing at least
better particulars of the allegations in the petition so as to give such
documents a status of independent and substantial grounds of the
petition itself challenging the election on the basis thereof (emphasis supplied)
which can be said to be the annexures requiring verification in terms of
the law laid down by this Court in the case reported as S. M. Ayub vs.
(1) Syed Yusaf Shah, (2) Major Tilla Khan Sadozai and (3) Election
Tribunal, West Pakistan, Lahore (PLD 1967 SC 486) the relevant
paragraph of which is reproduced below:-
“…By “schedule or annex” mentioned in subsection (3) of
section 59 of the Act, is apparently meant such a schedule
and annexure as either makes additional allegations of a
substantive character against the opposite-party, or at least
furnishes better particulars of the allegations made in the
petition, so as to give them the status of substantive grounds
of the petition itself. The documents under consideration in
the instant case, however, are not of that character and, in
our opinion, they should not be understood to fall within the
meaning of “schedule or annex”, mentioned in paragraph
10 of the petition and not as substantive grounds or
expansion of those grounds. We are, consequently, disposed
to hold that the Tribunal was right in finding that the
failure of the petitioner to append his signatures or the
verification, required for schedules and annexures to the
petition, was not fatal to the prosecution, of the petition.”
C.A.301 of 2014.doc
-: 10 :-
Thus only those annexures require verification which fall within the
category mentioned above, but we find that this is not the situation in
the instant matter.
An additional aspect of this issue is that the respondent through
an application sought summary disposal of the election petition filed by
the appellant and vide order dated 23.8.2013 the learned Tribunal
dismissed this application holding that the election petition and the
annexures were duly verified. In this regard, the relevant part of the said
order is reproduced below:-
“Perusal of the memo of Petition transpires that specific
allegations of illegal and corrupt practices are leveled in
the Petition at relevant Polling Stations on the day of
election and the Petition is duly signed by the Petitioner
Feroze Jamali and same is attested as on S.A. before me by
Mumtaz Ali Soomro Oath Commissioner Sukker on 26-06-
2013. Perusal of the annexures filed with the Petitioner also
transpire that same are duly signed by Petitioner Feroze
Jamali and attested and verified by Mumtaz Ali Soomro
Oath Commissioner Sukkur as such the provisions of Sec:
55 (3) of the Representation of People Act, 1976 are duly
complied with and I do not filed any merits in the
application and dismiss the same.”
Having already decided the issue of verification vide the abovementioned
order, it was not open for the learned Tribunal to reverse its own order,
when that was not being done in the exercise of any power of review (if
review was permissible) and such order operated as a res judicata inter se the
parties with respect to the said issue having been finally and conclusively
settled by the learned Tribunal itself. Further even if the principle of res
judicata
is
considered
not
stricto
sensu
applicable,
it
is
not
comprehended that when the learned Tribunal earlier took up the firm
view that the election petition and the annexures are duly verified but
without meeting the reasons assigned in the previous order subsequently
changed its opinion and held otherwise, without even adverting to the
C.A.301 of 2014.doc
-: 11 :-
said order. Be that as it may, in light of the above we are of the candid
view that the election petition and the annexures both have been duly
verified in accordance with law and the finding of the learned Tribunal in
this regard is unfounded.
8.
The next issue which requires deliberation is whether the
averments of corrupt and illegal practices made in the election petition
were vague and general in nature warranting dismissal, suffice it to say
that we have examined paragraph No.6 of the election petition and are of
the opinion that the appellant has set out in clear and detailed terms the
grounds on which he had challenged the election of the respondent. In
light of grounds a. to l. in paragraph No.6 of the election petition which
mention with quite a precision, the irregularities, illegalities and corrupt
practices with regard to the conduct of the election, we find that the
contents of such grounds cannot be considered or held to be vague in
any manner whatsoever.
9.
As far as the question as to whether the appellant was able
to prove his grounds of challenge to the election through evidence, it may
be mentioned that two witnesses namely Abdul Latif (PW-2) and Moula
Bux (PW-3), polling agents of the appellant, were examined. The
statements of both these witnesses when read in the context of their
cross-examination reveal that they both did not have any personal
knowledge of the allegations of bogus voting etc. which is not sufficient
proof of the commission of corrupt and illegal practices by the
respondent. Besides no other oral evidence has been led by the appellant
except his own statement and from such statement too, which is hearsay
in nature we are not convinced that the allegations of corrupt and illegal
practices and illegalities and irregularities in the conduct of election were
proved through positive evidence which is the requirement of the law in
election matters as laid down by this Court in numerous cases such as
C.A.301 of 2014.doc
-: 12 :-
Muhammad Saeed and 4 others vs. (1) Election Petitions Tribunal,
West Pakistan, (2) Mehr Muhammad Arif Khan,(3) Ghulam Haider
and (4) West Pakistan Government and others (PLD 1957 SC (Pak.)
91; Mian Jamal Shah vs. (1) The Member Election Commission,
Government of Pakistan Lahore, (2) The Returning Officer,
Constituency of the National Assembly of Pakistan No. NW-II,
Peshawar II, and (3) Khan Nasrullah Khan (PLD 1966 SC 1); Khan
Muhammad Yusuf Khan Khattak vs. S. M. Ayub and 2 others (PLD
1973 SC 160); Syed Saeed Hassan vs. Pyar Ali and 7 others (PLD
1976 SC 6); Raja Muhammad Afzal vs. Ch. Muhammad Altaf Hussain
and others (1986 SCMR 1736); Muhammad Siddique Baloch vs.
Jehangir Khan Tareen & others (C.A. No.307-L of 2015) and Syed
Hafeezuddin vs. Abdul Razzaq & others (C.A. No.1086 of 2014).
Therefore we opine that the findings of the learned Tribunal in this
regard are apt and are upheld by us.
10.
As regards the question and the effect of the NADRA report it
seems expedient to reproduce the relevant part of the report:-
Invalid CNIC on Counterfoils
15.
There were 2,147 used counterfoils that had invalid
NIC numbers (NIC numbers which NADRA has
never issued) written on them. This also includes
such counterfoils that do not have CNIC mentioned
over it. This was observed mainly in polling station
# 24 (340 votes) and at polling station # 40 (279
votes).
Counterfoils without fingerprints
19.
61 used conuterfoils were found without having
fingerprints on them. These counterfoils were mainly used
at polling station #37 (8 votes) and at polling station #27 (7
votes).
Summary:
29.
Summary report is described below:
C.A.301 of 2014.doc
-: 13 :-
We find it useful to mention at the very outset that it was permissible for
the learned Tribunal to seek the examination/verification of the election
material from an expert, i.e. NADRA, in order to find out if the provisions
of the Act and the rules framed thereunder have not been complied with
and then to determine itself whether such non-compliance materially
affects the result of the election. In this context, as has been mentioned
above, the material of 19 polling stations was sent to NADRA pursuant to
the order passed by the learned Tribunal dated 23.8.2013. Before
proceeding further with the matter, we would like to highlight that the
learned Election Tribunal has given no reason to reject the report of
NADRA, but according to the report, the summary of which is
reproduced above, it is clear and unmistakable that 2,147 used
counterfoils out of these polling stations had invalid NIC numbers
(meaning thereby that the said used counterfoils either contained NIC numbers that were never
issued by NADRA or had no mention of NIC number thereupon). The mention of such
number is the mandatory requirement of the provisions of Section 33 of
the Act. As regards 61 used counterfoils the report is that there were no
fingerprints/thumb impressions on them, again this is the non-
compliance of Section 33 thus the total votes which from the report of
S. No
Description
Count of
Votes
1
Votes polled in polling stations whose
election material was received by NADRA
12,174
2
Invalid NIC number mentioned on used
counterfoils, this also includes such
counterfoils that do not have CNIC
mentioned over it.
2,147
3
Out of Constituency Votes
0
4
Duplicate Voters on Counterfoils
0
5
Used counterfoils without fingerprints
61
6
Fingerprints successfully authenticated on
used counterfoils and ER
3,121
7
Fingerprints on used counterfoils and ER
failing authentication
0
8
Fingerprints of bad quality affixed on used
counterfoils
6,845
C.A.301 of 2014.doc
-: 14 :-
NADRA were not issued as per the used counterfoils comes to 2,208 and
thus the ballot papers corresponding thereto were liable to be excluded.
With regard to the argument of the learned counsel for the respondent
that the 2,147 used counterfoils which had invalid NIC numbers were
those counterfoils where the correct NIC was produced when the voter
came to vote and an error was committed while writing the NIC number
down, and since this was due to a lapse by the election staff, the benefit
or prejudice of such error in writing of the NIC number on the counterfoil
should not go to any candidate or in other words the returned candidate
should not suffer for the omission and mistake of the election staff,
suffice it to say that we cannot say with utmost certainty whether the
eligible voter came and brought his correct NIC but the number was
written incorrectly, or that an imposter came with a bogus NIC. The fact
of the matter stands that a voter has to be properly identified and his
correct NIC has to be noted on the counterfoils, which is required by the
law, and the above has not been done, which is the non-compliance of
the provisions of the Act. According to the provisions of Section 70 of the
Act, the result of the election can be declared to be void for non-
compliance of the provisions of the Act and the rules made thereunder if
the result has been materially affected. Obviously the object of requiring
affixation of thumb impressions and to record NIC numbers on the
counterfoils is to ensure that the correct voter to whom a ballot paper
has been issued casts his vote and subsequently to provide a reference
point to find out if any bogus votes have been cast in the election.
Therefore in this scenario since the votes to be excluded, i.e. 2,208 (2,147
plus 61 votes) are greater in number than the differential of 1,611 votes
between the number of votes secured by the appellant and respondent,
this would materially affect the result of the election, thereby bringing
the case within the purview of the provisions of Section 70 of the Act,
C.A.301 of 2014.doc
-: 15 :-
warranting declaration of the election to be void as a whole. This very
important and conspicuous aspect of the matter has not been attended
to by the learned Tribunal and the impugned judgment is flawed in this
respect.
11.
In view of the above, by allowing this appeal and setting
aside the impugned judgment, we accept the election petition filed by the
appellant and declare the elections of PS-23, Naushahro Feroze-V as
void. The ECP is required to hold fresh elections in the said constituency
in accordance with law. No order as to costs.
JUDGE
JUDGE
JUDGE
Announced in open Court
on 26.01.2016 at Islamabad
Approved For Reporting
Ghulam Raza/*
(JUDGE)
| {
"id": "C.A.301_2014.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
PRESENT:
Mr. Justice Faisal Arab
Mr. Justice Qazi Muhammad Amin Ahmed
Civil Appeal No.303 of 2014
(Against
judgment
dated
28.10.2013
of
the
Peshawar High Court D.I. Khan Bench passed in
C.R. No.195 of 2010)
Ahmad Bakhsh (deceased) through LRs
…Appellant(s)
Versus
Ameer Ali Khan
…Respondent(s)
For the Appellant(s):
Mr. Anwar Khan, ASC
For the Respondent(s):
Mr. M. Waheed Anjum, ASC
Mr. Mehmood A. Sheikh, AOR
Date of hearing:
03.03.2020.
JUDGMENT
Qazi Muhammad Amin Ahmed, J.-Ahmed Bukhsh,
predecessor-in-interest, pre-empted sale through mutation dated
14.9.1999, asserting his superior right of being a co-sharer in the
estate; Ameer Ali, vendee/respondent, contested the suit, decreed
by the trial Court vide judgment and decree dated 7.1.2000,
a finding maintained by the Appellate Court, however, reversed by
the High Court vide judgment dated 28.10.2013, for failure to
perform Talabs in accordance with law, vires whereof are being
impugned through this right appeal.
2.
The High Court recapitulated plaintiff’s evidence
regarding performance of Talabs and found it fraught with
contradictions, discrepancies and improvements to arrive at a
conclusion that Talabs were not performed in accordance with law.
3.
With the assistance of learned counsel for the
appellants, we have examined the record. Notice (Ex.PW-5/1),
purportedly issued by the plaintiff sans reference to Khalid (PW-5),
a witness produced to prove Talab-i-Ishhad; he surfaced for the
first time on 14.5.2009 to depose that he along with the plaintiff
Civil Appeal No.303 of 2014
2
was present in a Baithak when Hameedullah (PW-3) disclosed the
factum of sale; Hameedullah when himself examined remained
silent, conspicuously omitted any such encounter with Khalid PW.
Witnesses are also discrepant on other relevant details regarding
time and manner, the Talabs were made; contradictions are such
in nature that stance taken by one witness cannot be accepted
without first excluding the others’ and vice versa; the High Court
has been justified to exclude their statements from consideration
and, on our own independent analysis, conclusion being
irresistible, we have not been able to persuade ourselves to take a
contra view. Appeal fails. Dismissed.
Judge
Judge
Islamabad, the
3rd March, 2020
Not approved for reporting
Azmat/-
| {
"id": "C.A.303_2014.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE MIAN SAQIB NISAR
MR. JUSTICE IJAZ AHMED CHAUDHRY
MR. JUSTICE QAZI FAEZ ISA
CIVIL APPEAL NO.305 OF 2008
(Against the judgment dated 19.4.2006
of the High Court of Sindh, Karachi
passed in HCA No.18/2005)
Karachi Dock Labour Board
…Appellant(s)
VERSUS
M/s Quality Builders Ltd.
…Respondent(s)
For the appellant(s):
Mr. Zahid Ibrahim, ASC
Mr. M. S. Khattak, AOR
For the respondent(s):
Dr. Muhammad Farogh Naseem, ASC
Mr. Mehr Khan Malik, AOR
Date of hearing:
02.10.2015
…
JUDGMENT
MIAN SAQIB NISAR, J.- This appeal involves the key
question, in that, whether the award made, announced and signed by
the sole arbitrator appointed by the respondent was with jurisdiction or
not and thus should not have been made rule of the Court. The ancillary
questions to the above are, whether the appellant had waived etc. its
objection about the jurisdiction; whether lack of jurisdiction can be
compromised; whether the court, considering the matter qua making the
award rule of the Court, should itself consider the jurisdictional aspect
and decline to make an award, made without jurisdiction, rule of the
Court. In this context, leave was granted vide order dated 27.02.2008
reproduced below to consider certain points highlighted therein:-
C.A.305 of 2008
-: 2 :-
“After hearing learned counsel for the parties, leave to appeal is
granted, inter alia, to consider:-
1. Whether in the instant case sections 8 & 9 of the Arbitration
Act, 1953 would apply; and
2. Whether the award given by the Arbitrator was according to
the terms of the agreements entered into by the parties.
2.
Since a short point is involved, as such office is directed to fix the
case during 1st week of May 2008. Meanwhile interim order dated
06.2.2008 shall hold the field.”
2.
The relevant facts of the case are:- The appellant (employer)
entered into a contract dated 08.10.1989 with the respondent (contractor)
for the construction of a hospital at Kemari, Karachi. The contract
contained an arbitration clause (clause 131). The parties subsequently
entered into multiple supplementary agreements dated 17.06.1991,
12.11.1992, and 31.05.1993 which amended various clauses of the
original contract including inter alia the time for completion of the
contract. The fourth and final supplementary contract dated 01.03.1995
not only extended the time for completion of the contract but also,
according to the appellant, settled finally certain claims of the
respondent. Subsequently the respondent, claiming that certain
dues/claims remained unpaid, invoked the arbitration clause by
referring to the consultants certain disputes vide letter dated
05.06.1996. Due to non-determination by the consultant of the disputes
alleged by the respondent, the latter proceeded to approach the appellant
vide letter dated 19.01.1997 for the appointment of arbitrator and also
suggested some names therein. Since the appellant did not appoint an
arbitrator in response thereof, the respondent vide letter dated
02.07.1997 informed the appellant that they had appointed one Mr. S. A.
Nizami and requested them to appoint an arbitrator for resolution of
their disputes, in the absence of which Mr. Nizami would become the sole
C.A.305 of 2008
-: 3 :-
arbitrator. In response the appellant stated in its letter dated 12.07.1997
that since the final supplementary agreement satisfied the respondent’s
claim fully therefore the arbitration clause cannot be invoked and that
the arbitrator cannot be appointed in the terms as suggested by the
respondent. The respondent then sent a letter dated 20.08.1997 to the
arbitrator stating therein that since the appellant had failed to appoint
an arbitrator, Mr. Nizami should act as a sole arbitrator in terms of
Section 9 of the Arbitration Act, 1940 (Act), after which the arbitrator
issued notices to the parties dated 22.08.1997 and entered upon the
reference. However, the appellant took the plea before the arbitrator
which is envisaged by the letter dated 19.09.1997 to the effect that
because the original contract was in effect superseded by the final
supplementary agreement, therefore the arbitration cannot be invoked
and, hence the arbitrator had no jurisdiction. Notwithstanding this the
arbitrator conducted ex-parte proceedings as the appellant refused to
appear and rendered the award dated 20.12.1997 in favour of the
respondent which was filed in court on 19.01.1998 for making it the rule
of the Court. Notice of the same was sent to the appellant on 27.01.1998
pursuant to which they filed objections under the provisions of Section
30 of the Act on 24.02.1998 on various grounds including inter alia that
the arbitrator had no jurisdiction in the matter and therefore the award
was a nullity in the eyes of the law. However the learned Single Judge
vide judgment and decree dated 24.11.2004 overruled the objections and
made the award a rule of the court pursuant to Section 17 of the Act.
The appellant filed an appeal against the said judgment which was
dismissed vide impugned judgment dated 19.04.2006, against which
they have filed the instant appeal before this Court.
3.
Learned counsel for the appellant, while relying upon
Textile Machinery Corporation Ltd v Nalinbhai B. Munshaw (AIR
C.A.305 of 2008
-: 4 :-
1969 Calcutta 146), submits that in order to invoke the provisions of
Section 9 of the Act as the respondent necessarily did, certain pre-
conditions need to be met, in that, the agreement should provide a
reference to two arbitrators, one to be appointed by each party. He then
referred to the arbitration clause, i.e. clause 131 of the contract and
pointed out that since it did not specifically provide for two arbitrators,
one to be appointed by each party, therefore the application of Section 9
was ousted. Reliance in this regard was placed on Port Qasim
Authority, Karachi v Messrs Nadeem Brothers and another (1982
CLC 1506). Instead, recourse should have been made to Section 8 read
with Section 20 of the Act according to which the Court, and not the
respondent, was empowered to appoint an arbitrator. He relied on
Muhammad Azam Muhammad Fazil & Co., Karachi v Messrs N. A.
Industries, Karachi (PLD 1977 Karachi 21). He further submitted that
where the number of arbitrators is not specified in the arbitration
agreement, as was so in the instant case, recourse has to be made to
Section 3 which when read with clause 1 of the First Schedule of the Act
implies a condition that unless otherwise expressly provided, the
reference shall be to a sole arbitrator. Reference was also made to the
respondent’s letter dated 02.07.1997 requesting the appellant to appoint
their arbitrator, and the appellant’s response dated 12.07.1997 wherein
it was specifically pointed out to the arbitrator that lacking jurisdiction,
he should abstain from entering upon the reference and proceeding with
the matter. He stated that whenever the appellant was sent a notice by
the arbitrator, they raised an objection regarding the latter’s jurisdiction.
The propositions which have been framed by the learned counsel for the
appellant’s counsel is as follows:-
C.A.305 of 2008
-: 5 :-
i.
The arbitrator rendered the award having no jurisdiction as
his appointment was not in terms of the arbitration
agreement, therefore the award is a nullity;
ii.
The pre-conditions of reference to the consultant to invoke
the arbitration clause was not met as the respondent did not
apply to the consultant before asking for the appointment of
the arbitrator and making a reference thereto;
4.
When confronted as to why the appellant did not invoke the
provisions of Section 5 of the Act, learned counsel for the appellant
responded by stating that in order for the said section to be applicable
there has to be a validly appointed arbitrator, which he contends was not
in the present case. Further, that Section 5 assumes valid conferment of
authority, hence that said section is about revocation of authority and
does not deal with challenge to jurisdiction of the arbitrator. While
elaborating on his first proposition, in support of the contention that the
Court as opposed to the arbitral tribunal will examine the power of the
latter, learned counsel for the appellant relied upon Abdul Hamid v H.
M. Qureshi (PLD 1957 SC (Pak) 145). He also submitted that the
Courts have the power under Section 17 to set aside the award on its
own where the award is patently invalid and not enforceable under the
law and in this regard placed reliance upon M/s Awan Industries Ltd v
The Executive Engineer, Lined Channel Division and another (1992
SCMR 65) and A. Qutubuddin Khan v Chec Millwala Dredging Co.
(Pvt.) Limited (2014 SCMR 1268).
5.
Learned counsel for the respondent has controverted the
arguments of the learned counsel for the appellant by stating that the
appellant did not challenge the jurisdiction of the arbitrator on the basis
of non-applicability of Section 9 before the arbitrator himself, thus such
objection is deemed to have been waived and the same cannot be raised
C.A.305 of 2008
-: 6 :-
subsequently. Rather the appellant’s objection was based on the fourth
supplementary agreement rendering the arbitration agreement non-
existent allegedly being a full and final settlement of the respondent’s
claims. He also stated that despite repeated notices to the appellant, they
stayed quiet. He built his defence on the premise of the arbitration
principles prevalent today, which according to him are:
(i)
The role of the court is supportive;
(ii)
Doctrine of least intervention;
(iii)
Sections 8 and 9 are machinery provisions;
(iv)
The arbitration clause is to be interpreted in a workable
manner – liberal construction;
(v)
Principle of Kompetenz-Kompetenz - arbitral tribunal shall
determine its own jurisdiction; and
(vi)
If a particular objection, even if it pertains to the jurisdiction
of the arbitrator, was not raised earlier it cannot be raised
subsequently; if the particular ground was not taken earlier
it will be deemed to have been waived off.
6.
The primary contention of the learned counsel for the
respondent was that since the appellant did not raise their objection to
jurisdiction specifically vis-à-vis Sections 8 and 9 before the arbitrator
nor the learned Single Judge, hence they are estopped from doing so
now. He also attempted to draw a parallel of arbitral tribunals with tax
tribunals in that with respect to the latter, if a question of law is not
raised before the tribunal it cannot be raised subsequently and this
concept should apply to the former alike. Further while relying upon
Federation of Pakistan, through Secretary, Ministry of Food,
Islamabad and others vs Messrs Joint Venture Kocks K.G./Rist (PLD
2011 SC 506) he stated that objections must be taken with sufficient
clarity, and that this was not the case with the appellant. He also placed
C.A.305 of 2008
-: 7 :-
reliance on Messrs Vaseem Construction Co. vs Province of Sindh
through Secretary to Government of Sindh, Communication and
Works Department, Karachi and 4 others (1991 CLC 1081) in
furtherance of his argument that objections to an award cannot be
subsequently raised. He also relied upon Muhammad Saghir Bhatti &
Sons vs The Federation of Pakistan and another (PLD 1958 SC (Pak.)
221) that a subsequent challenge to appointment of arbitrator is not
sustainable when it was not raised before.
7.
According to learned counsel for the respondent the concept
of inherent defect in jurisdiction applies differently in the world of
arbitration, in that it would only arise if the arbitration agreement was in
dispute which was not, it is argued, the case at hand, and while relying
on several cases of foreign jurisdictions he further contended that there
has been a development in arbitration, that even inherent defects are
now to be raised before and decided by the arbitral tribunal itself.
8.
When confronted as to why the respondent did not file the
arbitration agreement in court under the provisions of Section 20,
learned counsel for the respondent stated that as per the scheme of the
Act, the respondent had three options available to them under Chapters
2, 3 and 4 and they chose Chapter 2, which they could not forgo for
Chapter 4 without exhausting it in its entirety. Reliance in this regard
was
placed
upon
Messrs
Commodities
Trading
International
Corporation vs Trading Corporation of Pakistan Ltd and another
(1987 CLC 2063).
9.
Heard. The issues in this case mainly revolve around the
construction of the arbitration clause and the scope, interpretation and
application of the provisions of Sections 3, 5, 8, 9, 11 and 20 and
Paragraph 1 of the First Schedule of the Act, hence we find it expedient
to reproduce the same in the order so stated:
C.A.305 of 2008
-: 8 :-
“131. SETTLEMENT OF DIPUTES/ARBITRATION
If any dispute or difference of any kind whatsoever shall
arise between the Employer and the Contractor or the
consultants and the Contractor in connection with, or arising out
of the contract, or the execution of the works, whether during the
progress of the works or after their completion and whether
before or after the termination, abandonment, or breach of the
contract, it shall in the first place, be referred to and settled by
the Consultants who shall within a period of ninety (90) days
after being requested by either party to do so give written notice
of his decision to the employer and the Contractor. Such
decision in respect of every matter so referred shall be binding
upon the Employer and the Contractor who shall proceed with
the execution of the works with all due diligence whether he or
the Employer requires arbitration. If the Consultant has given
written notice of his decision to the Employer and the Contractor
and no claim to arbitration has been communicated to him by
either the Employer or the Contractor within a period of thirty
(30) days from receipt of such notice, the said decision shall
remain final and binding upon the Employer and the Contractor.
If the Consultant shall fail to give notice of his decision,
as aforesaid, within a period of ninety (90) days after being
requested as aforesaid or if either the Employer or the
Contractor be dissatisfied with any such decision, then in any
such case either the Employer or the Contractor within ninety
(90) days after receiving notice of such decision, or within ninety
(90) days after the expiration of the first named period of thirty
(30) days, as the case may be, require that the matter or matters
in dispute be referred for pre-consideration then only in that
case the matter shall be referred to the Arbitrator(s) and/or
Umpire as the case may be within the meaning of Arbitration
Act, 1953, whose decision shall be final and binding upon the
parties.
[Emphasis added]
_____________________________
Arbitration Act, 1940
3. Provisions implied in arbitration agreement. An arbitration
agreement, unless a different intention is expressed therein, shall
C.A.305 of 2008
-: 9 :-
be deemed to include the provisions set out in the First Schedule
in so far as they are applicable to the reference.
5. Authority of appointed arbitrator or umpire irrevocable
except by leave of Court. The authority of an appointed
arbitrator or umpire shall not a revocable except with the leave
of the Court, unless a contrary intention is expressed in the
arbitration agreement.
8. Power of Court to appoint arbitrator or umpire. (1) In any of
the following cases:--
(a) Where an arbitration agreement provides that the reference
shall be to one or more arbitrators to be appointed by
consent of the parties, and all the parties do not, after
difference have arisen, concur, in the appointment or
appointments; or
(b) If any appointed arbitrator or umpire neglects or refuses to
act, or is incapable of acting, or dies, and the arbitration
agreement does not show that it was intended that the
vacancy should not be supplied; and the parties or the
arbitrators, as the case may be, do not supply the vacancy;
or
(c) Where the parties or the arbitrators are required to appoint
an umpire and do not appoint him, any party may serve the
other parties or the arbitrators, as the case may be, with a
written notice to concur in the appointment or appointments
or in supplying the vacancy.
(2) If the appointment is not made within fifteen clear days after
the service of the said notice, the Court may, on the application
of the party who gave notice and after giving the other parties an
opportunity of being heard, appoint an arbitrator or arbitrators
or umpire, as the case may be, who shall have like power to act
in the reference and to made an award as if he or they had been
appointed by consent of all parties.
9. Power to party to appoint new arbitrator or, in certain cases,
a sole arbitrator. Where an arbitrations agreement provides that
a reference shall be to two arbitrators, one to be appointed each
C.A.305 of 2008
-: 10 :-
party, then, unless a different intention is expressed in the
agreement.
(a) If either of the appointed arbitrator, neglects or refuses to
act, or is incapable of acting or dies, the party who
appointed him may appoint a new arbitrator in his place.
(b) If one party fails to appoint an arbitrator, either originally
or by way of substitution as aforesaid, for fifteen clear days,
after the service by the other party of a notice in writing to
make the appointment, such other party having appointed
his arbitrator before giving the notice, the party who has
appointed an arbitrator may appoint that arbitrator to act as
sole arbitrator in the reference, and his award shall be
binding on both parties as if he had been appointed by
consent.
Provided that the Court may set aside any appointment as sole
arbitrators made under clause (b) and either, on sufficient cause
being shown, allow further time to the defaulting party to appoint
an arbitrator or pas such other order as it thinks fit.
Explanation. The fact that an arbitrator or umpire, after request
by either party to enter on and proceed with the reference, does
not within one month comply with the request may constitute a
neglect or refusal to act within the meaning of Section 8 and this
section.
11. Power of Court to remove arbitrators or umpire in certain
circumstances. (1) The Court may, on the application of any
party to reference, remove an arbitrator or umpire who fails to
use all reasonable dispatch in entering on and proceeding with
the reference and making an award.
(2) The Court may remove an arbitrator or umpire who has
misconducted himself or the proceedings.
(3) Where an arbitrator or umpire is removed under the section,
he shall not be entitled to receive any remuneration in respect of
his services.
C.A.305 of 2008
-: 11 :-
(4) For the purposes of this section the expression "proceeding
with the reference" includes, in a case where reference to the
umpire become necessary, giving notice of that fact to the parties
and to the umpire.
20. Application to file in Court arbitration agreement. (1)
Where any person have entered into an arbitration agreement
before the institution of any suit with respect to the
subject-matter of the agreement or any part of it, and where a
difference has arisen to which the agreement applies, they or any
of them, instead of proceeding under Chapter II, may apply to a
Court having jurisdiction in the matter to which the agreement
relates, that the agreement be filed in the Court.
(2) The application shall be in writing and shall be numbered
and registered as a suit between one or more of the parties
interested or claiming to be interested as plaintiff or plaintiffs
and the remainder as defendant or defendants, if the application
has been presented by all the parties, or, if otherwise, between
the applicant as plaintiff and the other parties as defendants.
(3) On such application being made the Court shall direct notice
thereof, to be given to all parties to the agreement other than the
applicants, requiring them to show cause within the time
specified in the notice why the agreement should not be filed.
(4) Where no sufficient cause is shown, the Court shall order the
agreement to be filed, and shall make an order of reference to
the arbitrator appointed by the parties, whether in the agreement
or otherwise, or, where the parties cannot agree upon an
arbitrator, to an arbitrator appointed by the Court.
(5) Thereafter the arbitration shall proceed in accordance with,
and shall be governed by, the other provisions of this Act so far
as they can be made applicable.
First Schedule
Implied Conditions of Arbitration Agreement
1. Unless otherwise expressly provided, the reference shall be to
a sole arbitrator.”
C.A.305 of 2008
-: 12 :-
10.
Before proceeding further we find it expedient to mention
what is arbitration and also about the empowerment of the arbitrator. In
this context it is stated that arbitration is a forum which under the law
can be chosen by the parties for the resolution of their present or future
disputes. The condition for a valid arbitration agreement is that it should
be in writing (see Section 2(a) of the Act) and as it is a contract between the
parties it is essential that it must qualify the test of a valid contract in
terms of the law of contract. It may also be stated that there are three
modes and approaches to arbitration: (i) without the intervention of the
court; (ii) with the intervention of the court (see Section 20 of the Act); and (iii)
again with the intervention of the court but where a suit/lis is pending
between the parties and they agree for the resolution of their disputes
through the mechanism of arbitration, keeping the suit pending and that
the fate thereof (suit) be decided on the basis of the decision rendered by
the arbitrator. It may be relevant to state that subject to the terms of
reference an arbitrator(s) is the judge on both the points of fact and law;
and this shall also include the question to determine his own
jurisdiction. However where the arbitrator goes patently and blatantly
wrong on facts, which wrong is inconceivable and incomprehensible in
relation to the determination of rights of parties in dispute, such as
assumption of non-existing facts or ignoring the facts duly established on
the record, which in legal parlance is also called the misreading and non-
reading; and especially going wrong on the points of law, the court
obviously has the power in its appropriate jurisdiction to correct such a
wrong; as under Article 4 of the Constitution of the Islamic Republic of
Pakistan, 1973 it is inalienable right of every person to be treated and
dealt with in accordance with law [See cases reported as Utility Stores
Corporation of Pakistan Limited v Punjab Labour Appellate Tribunal
and others (PLD 1987 SC 447); Muhammad Anwar and others v Mst.
C.A.305 of 2008
-: 13 :-
Ilyas Begum and others (PLD 2013 SC 255) and Muhammad Ashraf
Butt and others v Muhammad Asif Bhatti and others (PLD 2011 SC
905)].
11.
Coming to the present case, having regard to the fact that
the agreement in which the arbitration clause is contained is not denied,
it is not disputed that there was a valid arbitration agreement between
the parties. The first issue is which out of the two Sections 8 or 9 of the
Act is attracted to the arbitration clause (reproduced above). In order to
resolve this, an exercise of interpretation of the arbitration clause needs
to be undertaken. Ordinarily, parties have a right to agree upon the
number of arbitrators and the manner in which the arbitrators will be
appointed. However, a perusal of the arbitration clause shows that it is
silent on both these aspects. The arbitration clause talks of referral of
disputes to “arbitrator(s)”. Had the arbitration clause spoken of the
appointment of an “arbitrator”, there will be no scope for the application
of Para 1 of the First Schedule, because a single arbitrator would be
indicated by the agreement itself. Also, had the arbitration clause
provided for the appointment of “arbitrators”, then the application of
Para 1 of the First Schedule would have been excluded because the word
“arbitrators” certainly refers to more than one arbitrator. Thus we find
much force in the contentions of the learned counsel for the appellant
that the instant case will be governed by Section 3 and the reference
shall be presumed to have been intended to be made to a single
arbitrator by virtue of Para 1 of the First Schedule, necessarily to be
appointed by the consent of both parties. [See cases reported as Mujtaba
Hussain Siddiqui v Sultan Ahmed (2005 YLR 2709), In the matter of
Arbitration between Ghufran Ahmed and others (PLD 1959 (W.P.)
Karachi 43), Muhammad Jamil v Iqbal Ahmed (PLD 1977 Karachi
886), Government of Sindh and others v Tausif Ali Khan (2003 CLC
C.A.305 of 2008
-: 14 :-
180), M/s National Small Industries Corpn Ltd v M/s National Metal
Craft, Delhi and others (AIR 1981 Delhi 189), India Hosiery Works v
Bharat Woollen Mills Ltd (AIR 1953 Cal 488)]
12.
The second aspect of this issue is whether in the facts and
circumstances it was in the power of the respondent to appoint the
arbitrator in terms of Section 9 or whether an application should have
been made to the Court under Section 8 for appointment of the
arbitrator. This would depend on the construction of Sections 8 and 9 of
the Act. As a plain reading of the sections would suggest, the question of
whether Section 8 or 9 applies ultimately boils down to whether an
arbitration agreement provides for reference to a sole arbitrator to be
appointed by the consent of both parties, or to two arbitrators each to be
appointed by each party separately, respectively. From the clear wording
and the mandate of the Section 9(b) we also find the Respondent could
have appointed their arbitrator to act as a sole arbitrator in terms of the
said section only if the following essential conditions were met:-
(1)
The agreement itself provides that a reference shall be to two
arbitrators;
(2)
The agreement further provides that, of the two arbitrators,
one has to be appointed by each: one by the appellant and
the other by the respondent;
(3)
One arbitrator has in fact been appointed by one of the
parties, and the other party has failed to appoint an
arbitrator;
(4)
The party who has appointed their arbitrator has served a
notice in writing (after the appointment of their arbitrator) to the party
who has failed to appoint their arbitrator; and
C.A.305 of 2008
-: 15 :-
(5)
15 days have passed since a notice in writing to make the
appointment was served to the party who has failed to
appoint their arbitrator.
This was also the view of the Calcutta High Court in the Textile
Machinery Corporation Ltd case (supra), albeit with respect to Section
9(a) of the Act. In the case before us, as has been established above, the
arbitration clause speaks of reference to a sole arbitrator to be appointed
by the consensus of both parties. It does not provide for a reference to
two arbitrators, and neither does it provide (as it cannot) that one of the two
arbitrators is to be appointed by each party. Hence we find that the first
two ingredients, which necessarily form the basis of the last three
ingredients, and are sine qua non for attracting this section and having
resort thereto, are conspicuously missing from the arbitration clause at
hand. Therefore Section 9(b) could not have been pressed into service by
the respondent and resultantly, the appointment of the arbitrator
pursuant thereto was absolutely invalid, being in contravention of the
Act. It is a settled principle that where the law requires an act to be done
in a particular manner it has to be done in that manner and not
otherwise and this rule shall be stringently applicable when it comes to
the question of appointment of arbitrators; as the conferment of
jurisdiction upon the arbitrator should be strictly in line with the letter
and spirit of the agreement between the parties and the express
provisions of law. Obviously, any award passed by such an arbitrator
who is not appointed in the above manner shall also be invalid, having
been passed by an arbitrator without jurisdiction. In fact it was the
provisions of Section 8 that were squarely applicable to this case and
should have been made recourse to. A bare reading of Section 8 makes it
sufficiently clear that it is meant to be applied to a case where the
C.A.305 of 2008
-: 16 :-
reference provides for a sole arbitrator (as also more than one arbitrator as the case
may be) to be appointed by the consent of the parties. As mentioned above,
the arbitration clause in this case provides, albeit impliedly, for the
appointment of a sole arbitrator with the consent of both the parties.
According to Section 8(2) an application has to be made to the Court to
appoint an arbitrator after hearing the parties, in the event of non-
appointment within 15 clear days of the service of notice to concur in
appointment. Therefore the respondent did not have the power to appoint
the arbitrator unilaterally after the appellant even failed to concur to
appointment of the arbitrator; rather it was the exclusive jurisdiction of
the Court to make such appointment if approached by the respondent
[See cases reported as Muhammad Azam Muhammad Fazil & Co., Karachi
(supra) Hariram Khiaram, a firm v Gobindram Rattan Chand, a firm
(PLD 1949 Sind 30), Mujtaba Hussain Siddiqui, S. L. Balmokand v
Uttamchand Brijlal (AIR 1927 Sind 177), M/s National Small
Industries Corpn Ltd (supra), Anjuman–i-Ahmadiya Ashait-i-Islam,
Lahore through Secretary, Jamaat Ahmadiya, Lahore, and another v
Hafiz Ghulam Ahmad and others (PLD 1955 Lahore 23)]. It is an
admitted position in this case that no such application was ever made to
the Court, and consequently, as the mandate of law prescribed by
Section 8, was not followed by the respondent, the award passed by the
arbitrator cannot be deemed to be valid as the arbitrator, having not
been appointed in terms of the arbitration agreement and the law, lacked
the requisite jurisdiction, and it is settled law that a determination made
and decision given by a Court or other forum performing judicial
functions (or even quasi-judicial functions) having no jurisdiction is a nullity in
the eyes of law. Apart from applying to the Court for appointment of an
arbitrator under Section 8, the respondent also had the option of doing
so under the provisions of Section 20 of the Act. As mentioned above
C.A.305 of 2008
-: 17 :-
Section 20 is an alternative procedure whereby the arbitration
proceedings would have been conducted with the intervention of the
Court, which the respondent certainly had the choice of opting for
instead of further proceeding under Chapter II of the Act.
13.
The second issue, as put forward by the learned counsel for
the respondent, is that of the failure of the appellant to raise the
objection to the jurisdiction of the arbitrator due to defective
appointment which is deemed to have been waived by them. The learned
counsel for the respondent has primarily relied upon the case of Chief
Engineer, Building Department v Pakistan National Construction
(1988 SCMR 723) and Saghir Bhatti’s case (supra) to support this
contention. However it is pertinent to mention that the principles laid
down in the Chief Engineer case is in relation to non-compliance with
the machinery aspect for the arbitrator’s appointment contained in the
arbitration
agreement,
and
not
non-compliance
with
essential
mechanism of appointment prescribed in the Act. It is clearly stipulated
in this dictum that “An inherent want of jurisdiction results in vitiating the proceedings
taken by the Tribunal and is incurable notwithstanding waiver by conduct or otherwise, whereas
irregular assumption of jurisdiction is always subject to waiver”. In the case of Saghir
Bhatti the appointment of an arbitrator was cancelled and a new
arbitrator was appointed without the leave of the Court and the parties
participated in the said proceedings without objection, however
subsequent objection to such arbitrator’s jurisdiction was disallowed
ostensibly on the principle of waiver, whereas as established from the
facts given in the preceding paragraphs, the instant case is such where
there has been sheer failure to comply with the express and the
mandatory provisions of the Act (referred to above), which in view of the
unambiguous wording of the arbitration agreement between the parties
was the only remedy available to the respondent, as opposed to
C.A.305 of 2008
-: 18 :-
unilateral appointment by either of the parties. It is proper to mention
here that according to the settled rules of law, parties cannot confer
jurisdiction upon a Court or other judicial or quasi-judicial forum
through consent which otherwise in law would have no jurisdiction and
the same is the position regarding waiver and acquiescence qua the
Courts etc. which lack jurisdiction and such being an inherent defect
cannot be cured on the rules of consent, waiver, estoppel, acquiesce etc.
Though under the arbitration law the parties, as mentioned above, can
choose their own forum for the adjudication of their disputes, but that
forum has to be constituted strictly in terms of the arbitration agreement
and in any case according to the express mandate of law and not in
violation thereof. If the constitution is violative of both, the agreement
and the law, and the objecting party has also not submitted to the
jurisdiction of the arbitrator, the rule of waiver and acquiescence cannot
be pressed into service against such party. However in this context there
then needs to be express consent to submit to the jurisdiction of an
arbitrator having no jurisdiction otherwise, and if there is clear
acquiescence and waiver on part of the party aggrieved of the
jurisdiction, such as participation in proceedings without any protest or
objection, which conduct shall mean that they have accepted by choice
the jurisdiction of the arbitrator. However in the instant case we do not
find any material on the record to hold that the appellant either waived
their objection or acquiesced to the arbitration of Mr. Nizami, rather to
the contrary the record clearly suggests that the appellant had
persistently objected to the arbitrator’s lack of jurisdiction even before
the arbitrator himself. Letters dated 12.07.1997, 28.07.1997 and
27.09.1997 from the appellant to the respondent all contain the former’s
objection to the arbitrator’s lack of jurisdiction. With respect to the
objection taken before the arbitrator himself, reference may be made to
C.A.305 of 2008
-: 19 :-
the letters dated 13.09.1997, 27.07.1997 and 13.12.1997. For the sake
of clarity and brevity, the relevant extract from the letter to the arbitrator
dated 13.12.1997 is reproduced herein below:
“It may be specifically stated here that KDLB has never
accepted you as a sole arbitrator. In fact all the proceeding
before you are without jurisdiction with no legal effect.”
We do not see how an objection phrased in these very terms could
amount to the appellant’s consent to Mr. Nizami acting as a lawfully
appointed sole arbitrator or a waiver of their objection to his lack of
jurisdiction. The Kerala High Court in Cochin Refineries Ltd v C. S.
Company, Engineering Contractors & Another [(1988) 2 Ker LJ 452]
has held that when the sole arbitrator has been appointed irregularly,
participation in the proceedings under protest does not amount to
consent on part of such a party and it can approach the court to set
aside such appointment. We do not feel hesitant in subscribing to such a
rule. In fact in the instant case, the record reveals that the appellant
never appeared before the arbitrator even under protest. They have been
denying the arbitrator’s jurisdiction from the very outset and boycotted
the arbitrator’s proceedings throughout as has been established
hereinabove. We thus opine that the appellant had not, by its conduct,
waived its right to object to the jurisdiction of the arbitrator.
14.
Attending to the argument of the learned counsel for the
respondent regarding the principle of Kompetenz-Kompetenz (German),
Competence de la Competence (French) or Competence Competence (English),
that an arbitral tribunal has the competence to determine its
competence. This principle has its roots in Germany, which is now
employed in the European Union and other international arbitral
tribunals as also India. Learned counsel for the respondent has relied
C.A.305 of 2008
-: 20 :-
upon several judgments of the United Kingdom and India wherein
broadly it has been held that where a party has not raised an objection
with regard to the competence or jurisdiction (or lack thereof) of the
arbitrator before the arbitrator himself, it would be deemed to have been
waived. Our courts have acknowledged the principle that an arbitral
tribunal is a judge of both fact and law, the latter of which includes the
question of its own jurisdiction. However the law in our country has
developed somewhat differently. With respect to the English judgments
relied upon by the learned counsel for the respondent, they have held
that the parties were deemed to have waived their right to object and
precluded from raising such objections if not raised before the arbitrator
himself. This however was based on a provision in the English
Arbitration Act, 1996 unique to it, which specifically provides for loss of
right to raise objections when not raised before the arbitrator. We have
no such corresponding provision in our Act hence do not feel that the law
laid down in the English judgments can hardly be of any help to our
jurisdiction. The Indian judgments on the other hand revolve around the
Indian Arbitration Act, 1996 which contain a particular provision vis-à-
vis waiver with respect to non-compliance with the arbitration
agreement. However it is pertinent to mention that the said provision
does not pertain to non-compliance with the Act. Thus, although our
international counterparts have, as have we, retained the concept that
an arbitral tribunal’s decision on its jurisdiction is open to review by the
courts, the course that the law has taken in our country with respect to
applicability of the concept of waiver is slightly different, particularly due
to variance in our respective arbitration statutes. We have not adopted
wholesale the concept that if the question of proper constitution of an
arbitral tribunal is not raised before the tribunal itself, this would
constitute a waiver of the right to object which objection cannot be
C.A.305 of 2008
-: 21 :-
subsequently raised for setting aside the award. Indeed this principle
may hold true where the appointment of the arbitrator has not been
made in compliance with the terms of the arbitration agreement, as the
parties may by way of waiver amend the terms of their arbitration
agreement. However where such appointment was made in contravention
of the provisions of the Act, then this principle has no application. In this
respect, guidance may be sought from a five member bench judgment of
this Court in Abdul Hamid (supra), while considering the question as to
whether the appointment of an arbitrator made in terms of Section 9
where it was claimed to be not applicable thus rendering the
appointment of arbitrator and the subsequent award invalid, held that:
“In the present case, only one arbitrator, who may be described as the
arbitrator for H. M. Qureshi, was appointed and his award which was
based upon an inquiry in which Abdul Hamid took no part, has been
made the basis of a decree for a large sum in favour of H. M. Qureshi.
It cannot be denied that the aspect of one-sidedness appears most
prominently. It is sought to be justified by reference to clause (b) of
section 9 of the Arbitration Act, 1940. The question goes to the
competency of the arbitrator nominated by one of the parties, to give
an award which shall be binding upon both parties. In order that the
award should qualify, within the context of law for being made a rule
of Court, it should be the act of a tribunal validly invested with
authority to investigate and pronounce upon the rights of the parties
to the submission. The Court will, of necessity, examine the power
which such person or persons appear to exercise, with the care
necessary for the purpose of ensuring that the decree which it
proposes to make in relation to the rights of the parties, does not rest
upon a conclusion reached by a private tribunal which was itself not
competent in law to deal with the matter in the light of the agreement
between the parties, and the relevant law.
The question of the competency of Mr. G. H. Lodhi's appointment was
not raised in the terms indicated above at any earlier stage of this
case, but that is not a circumstance which need stand in the way of
this Court undertaking the duty of examining the point.
[Emphasis added]
C.A.305 of 2008
-: 22 :-
The case of Abdul Hamid (supra) seems to satisfactorily resolve the issue
of objection to the arbitrator’s jurisdiction in favour of the appellant. In
relation to the argument of learned counsel for the respondent of the
principle of least intervention, we are of the view that it is a valid
principle, but we will not apply it where there has been sheer non-
compliance with the provisions of the Act, as it is not fathomable as to
how the court can abstain from intervening in such a situation.
15.
With respect to the reliance placed on Joint Venture Kocks
(supra) by the learned counsel for the respondent in that objections must
be made with sufficient clarity, it is stated that such reliance is
misplaced, as in that case, the objections could not even have been
implied, whereas in the instant case, the objection vis-à-vis jurisdiction
of the arbitrator was without fail taken up by the appellant at every stage
of the proceedings as highlighted above. Furthermore, an objection
regarding inherent jurisdiction of an arbitrator is a point of law, which
goes without saying, can be raised at any stage and it is an incurable
defect per the law laid down in Chief Engineer’s case supra.
16.
Another important and related aspect of this matter is that of
the Court’s role vis-à-vis making an award the rule of the Court. The
appellant raised an objection regarding lack of jurisdiction of the
arbitrator before the learned Single Judge in their application under
Section 30 of the Act in the following terms:
“10. As already stated above, there was/is no provision in the
contract for a reference to the Board of Arbitrators or to a sole
arbitrator. There is an Arbitration was to be invoked, it had to be
done through an intervention of the court. This having not been
done, the entering of the Arbitrator in the present case upon the
reference as a sole arbitrator amounts to legal misconduct.”
C.A.305 of 2008
-: 23 :-
Therefore although in the instant case an express objection to
jurisdiction of the arbitrator was sought, we are of the view that
notwithstanding the absence of objections filed by any party and/or the
fact that parties may consent to the making the award a rule of Court,
the Court is duty bound to examine the validity and legality of an award
and it may sua sponte modify or set aside the award if the facts and
dictates of justice so demand. The Court, in our opinion, cannot and
certainly should not, remain dormant by merely affixing the judicial
stamp on an award. The Court is not a part of an assembly line which
has to churn out finished products mechanically without applying its
judicial mind to the process involved [See case reported as Rashida Begum v
Ch. Muhammad Anwar and others (PLD 2003 Lahore 522)]. Thus Mr
Nizami, the supposed arbitrator, who for the reasons mentioned above
was incompetent to act as an arbitrator and pronounce the award, could
not possibly have passed an award that would be valid in law. This error
was floating and apparent on the face of the award, rendering it invalid,
thus it could not have been made the rule of the Court.
17.
With respect to the contention of the learned counsel for the
respondent that the appellant should have made an application under
Sections 5 or 11 of the Act, we find force in the learned counsel for the
appellant’s argument that Section 5 speaks of the authority of an
“appointed arbitrator” hence making valid conferment of authority a pre-
requisite for the application of Section 5. Therefore an application under
Section 5 would not have been sustainable in law. The same reasoning
applies to Section 11, which although does not use the words “appointed
arbitrator”, talks about the removal of arbitrators and we are of the
opinion that only those arbitrators can be removed, who have been in
fact appointed, and a defective appointment made in contravention of the
provisions of the Act is no appointment, hence removal can certainly and
C.A.305 of 2008
-: 24 :-
logically not follow. In any case, non-filing of an application under the
said sections would not, in our view amount to waiver on part of a party
and it would not preclude a party from challenging the jurisdiction of an
arbitrator subsequently.
18.
Learned counsel for the appellant has also argued that the
pre-condition of reference to the consultant to invoke the arbitration
clause was not met as the respondent did not apply to the consultant
before asking for the appointment of the arbitrator and making a
reference thereto. We are of the opinion that this contention is
unfounded, as a perusal of the record reveals that the respondent vide
letter dated 05.06.1996 had forwarded their claims to the consultant,
who had failed to render a decision within the period stipulated in the
contract, after which they proceeded with arbitration.
19.
Now we come to the contention of the learned counsel for the
appellant that the respondent’s claim was already settled by payment
made under the fourth and final supplemental agreement. A perusal of
all four supplementary agreements does not suggest that the arbitration
clause was amended or removed in any way thus it was valid for all
intents and purposes. Furthermore, clause 5 of the fourth supplemental
agreement provides:
“Claims by both parties if unresolved shall be adjudicated as per terms
of Contract after handing-over the entire project to the employer
according to this Agreement.”
This clause clearly suggests that the parties were not precluded from
utilising the method of adjudication provided for in the contract, which
was reference of the dispute to the consultant and then the arbitrator.
Furthermore, the factum of a final settlement may be subsequently
disputed by the parties. Adjudication in this regard would be required to
C.A.305 of 2008
-: 25 :-
be undertaken by the process stipulated by the parties in the contract.
Therefore, we are not convinced by the argument of the learned counsel
for the appellant in this respect. In any case this point has been rendered
irrelevant due to the jurisdictional point.
20.
In view of the foregoing, we find that the appellant has a case
for setting aside of the award passed by the arbitrator whose
appointment was not in consonance with the arbitration agreement and
the law contained in the Act. The learned Single Judge and the learned
Division Bench of the High Court had erroneously made and upheld the
award as a rule of the court respectively by incorrectly observing that
arbitral tribunal was properly constituted and that the award was not
invalid in law.
21.
The above are the detailed reasons for the short order of even
date whereby the appellant’s appeal was accepted, which reads as:-
“Upon hearing learned counsel for the parties, for
reasons to be recorded later, we allow this appeal and set aside
the judgment and decree of the learned Single Judge dated
24.11.2004 making the award rule of the court, and the judgment
dated 19.4.2006 regarding dismissal of appellant’s appeal.
However, while the short order was being dictated in Court, the
learned counsel for the respondent has made a request to the
Court for appointment of a new Arbitrator in terms of Section 20
of the Arbitration Act, 1940 for resolution of the dispute between
the parties as this has been the argument of the appellant in
attacking the award and the two decisions of the learned High
Court that the respondent should have resorted to the provisions
ibid (Section 20). When confronted, learned counsel for the
appellant has no objection if learned retired judge of this Court
is appointed as an Arbitrator in the matter to resolve the dispute
emanating out of the reference filed by the respondent before
former Arbitrator (whose award has been set aside in these
proceedings). Thus, with the consent of learned counsel for the
parties, Mr. Justice (R) Khilji Arif Hussain is appointed as a sole
Arbitrator and the reference which the respondent filed before
C.A.305 of 2008
-: 26 :-
the former Arbitrator, namely Mr. S. A. Nizami, shall be
considered and deemed to be the reference in this case before
the learned Arbitrator. The appellant shall file a reply to the said
reference which shall be proceeded upon by the Arbitrator in
accordance with law. The parties are directed to appear before
the Arbitrator on 03.11.2015. The learned Arbitrator shall
determine his own fee which shall be paid by the parties in equal
share. The award shall be made and signed within the time
provided in law, however, in case any reasonable extension of
time is required for making the Award, the Arbitrator can extend
such further period with the consent of the parties.”
JUDGE
JUDGE
JUDGE
Islamabad, the
2nd October, 2015
Approved For Reporting
Waqas Naseer/*
| {
"id": "C.A.305_2008.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
Present:
Mr. Justice Mian Saqib Nisar
Mr. Justice Gulzar Ahmed
Mr. Justice Umar Ata Bandial
CIVIL APPEAL NO. 307-L OF 2015
(On appeal from the judgment/order dated 26.08.2015 of
the Election Tribunal, Multan passed in Election Petition
No.355 of 2013 SCP, 30/2013 ETM)
Muhammad Siddique Baloch
…
…
Appellant.
Versus
Jehangir Khan Tareen & others
…
…
Respondents.
For the appellant
:
Mr. M. Shahzad Shaukat, ASC.
a/w appellant (in-person).
For respondent No.1
:
Mr. Makhdoom Ali Khan, Sr. ASC.
Mr. Tariq Aziz, AOR.
a/w respondent No.1 (in-person).
Dates of hearing
:
21st, 22nd, 26th, 27th & 28th October, 2015.
JUDGMENT
Umar Ata Bandial, J. – This election appeal assails the
judgment dated 26.08.2015 of the learned Election Tribunal, Multan
(“Tribunal”) whereby the appellant, who was returned as Member National
Assembly in General Elections held on 11.05.2013 from the constituency NA-
154 Lodhran-I, has been unseated by the judgment of the learned Tribunal
declaring his election to be void. The impugned declaration is based on three
findings. Firstly, that the appellant made a false declaration in his
nomination papers about his B.A. qualification from the University of
Balochistan. He has thereby incurred disqualification from being elected as
member of Parliament under Article 62(1)(f) of the Constitution of Islamic
Republic of Pakistan (“Constitution”); secondly, that the appellant is the
CA.307-L/2015
2
beneficiary of large scale corrupt and illegal practices committed by the
election staff on the election day which the appellant procured, whereby the
election is void and also the appellant is disqualified from being elected as
Member of Parliament under Section 99(1)(l) of the Representation of the
People Act, 1976 (“ROPA”); thirdly, that the result of the election is
materially affected by the failure of the election staff to comply the
provisions of the ROPA and therefore the election as a whole is void under
Section 70(a) of the ROPA.
2.
The appellant contested the election from the NA-154,
Lodhran-I constituency as an independent candidate and secured 86,629
votes to be elected as Member National Assembly. The respondent No.1
(“election petitioner”) was runner up in the election having bagged 75,738
votes, thereby losing the election by a margin of 10,891 votes. Nineteen other
candidates (respondents No.2-20) also contested the election. Altogether they
polled roughly 64,252 votes making a total tally of 226,619 votes being polled
in the election. Even before the result of the election was consolidated, the
election petitioner approached the Returning Officer of NA-154 with an
application dated 13.05.2013 requesting for suspension of the consolidation
of result proceedings scheduled for that day. It was alleged that corrupt and
illegal practices had been committed during the election by the election staff
at the behest of the appellant. The request of the election petitioner was not
acceded. Thereupon he approached the Chief Election Commissioner with a
written application dated 14.05.2013 (Exb.P-16/52) seeking deferral of the
consolidation of the election result pending outcome of recounting of votes,
verification of count furnished by the Presiding Officers, and in particular
the verification and analysis of finger prints of the voters and of the ballot
papers by National Database Registration Authority (“NADRA”) in order
CA.307-L/2015
3
“to identify the bogus voters.” By order dated 14.05.2013 (Exb.P-16/53) the
Election Commission of Pakistan (“ECP”) directed the District Returning
Officer, Lodhran (“DRO”) to carry out a recounting of votes after notifying
all contesting candidates in constituency NA-154, Lodhran-I to attend such
proceedings.
3.
After the recount proceedings commenced by the DRO on
17.05.2013, the election petitioner again complained to the Chief Election
Commissioner on 18.05.2013 that these were being conducted unfairly.
Consequently, the ECP passed another order dated 18.05.2013 clarifying that
the DRO/RO shall provide access to the nominee of the election petitioner
for inspecting all documents available on record and to decide any objection
raised about the recounting proceedings in a summary manner in writing. It
was also ordered that the Regional Election Commissioner, Multan (“REC”)
shall attend the proceedings of recounting as an “observer” to ensure their
smoothness.
4.
On conclusion of the recounting, two reports about these
proceedings, one by the DRO (Exb.P-16/59) and the other by the REC
(Exb.P-13), were submitted to the ECP. The report by the DRO (Exb.
P-16/59) dated 21.05.2013 acknowledges the correctness of the objection
taken by the election petitioner that the counterfoils of the ballot papers cast
in the election did not at their back bear the signature and/or stamp of the
Presiding Officer as required under Section 33(1)(e) of the ROPA. The second
report (Exb.P-13) dated 23.05.2013 filed by the REC, Mr. Ashfaq Ahmed
Sarwar (PW-11), is detailed and gives a polling station-wise account of
different violations of the election laws committed by the election staff on
election day. These breaches were noted by the REC (PW-11) during the
proceedings of inspection of record and recounting of ballot papers attended
CA.307-L/2015
4
by him as an ECP observer from 19.05.2013 until 23.05.2013. The election
material of 270 polling stations was examined during the said five days and
are reported by the REC. However, the inspection and recount proceedings
of 34 polling stations conducted on 17.05.2013 and 18.05.2013 prior to the
REC’s appointment as an observer by the ECP are therefore not dealt with in
his report. From the election record of 270 polling stations examined during
the recounting proceedings, the REC’s report (Exb.P-13) notes contravention
of election laws to have been committed at 104 polling stations. The most
frequent violation committed at these polling stations is the non-signing
and/or non-stamping of the counterfoils of ballot papers by the Presiding
Officers. This omission constitutes a breach of the duty imposed under
Section 33(1)(e) of the ROPA.
5.
Another violation of the election law noted in the REC’s report
(Exb.P-13) is the absence of the thumb impression of the voter on the voters’
list. The said defect is reported to be less frequent than the one first
mentioned above. But for the number of polling stations involved in these
breaches of law, the exact number of votes affected by such omissions made
by the election staff is not available in the REC’s report. A general picture
that nevertheless emerges is that the election record of more than 30% of the
polling stations (104 out of 270) is tarnished with the violation of statutory
requirements. The widespread and random occurrence of these defaults in
the record of the 270 reported polling stations suggests a trend which the
record of the 34 polling stations not covered by the REC’s report may also
bear out. In order to understand the seriousness of the said default in duty
committed by the Presiding Officers, the relevant provisions of, inter alia,
sub-Sections (1), (2) and (3) of Section 33 of the ROPA are reproduced below:
CA.307-L/2015
5
“33. Voting procedure. — (l) Where an elector presents himself at the
polling station to vote, the Presiding Officer shall issue a ballot paper to
the elector after satisfying himself about the identity of the elector and
shall, for that purpose, require the elector to produce his National
Identity Card issued under the National Database and Registration
Authority Ordinance, 2000 (VIII of 2000).
(2) Before a ballot paper is issued to an elector—
(a) [omitted]
(b) the number and name of the elector as entered in the
electoral roll shall be called out;
(c) the entry relating to the elector on the electoral roll shall be
struck off to indicate that a ballot paper has been issued to
him;
(cc) he shall be required to receive a personal mark, made with
indelible ink, on any finger of either hand as indicated by the
Commission;
(d) the ballot paper shall be stamped on its back with the
official mark and signed by the Presiding Officer;
(e) the Presiding Officer shall record on the counterfoil of the
ballot paper the number of the elector on the electoral roll, the
number of National Identity Card of the elector, stamp it with
the official mark, sign it and obtain on it the thumb impression
of the elector.
(3) A ballot paper shall not be issued to a person who—
(a) fails or refuses to produce his National Identity Card
issued to him under the National Database and Registration
Authority Ordinance, 2000 (VIII of 2000);
(b) [Omitted];
(c) refuses to put his thumb impression on the counterfoil or
whose thumb bears traces of its having already been used for
putting an impression; or
(d) refuses to receive the personal mark with indelible ink or
who already bears such a mark or traces of such a mark.”
6.
Armed with the above information, the election petitioner filed
an election petition in July, 2013, inter alia, making three principal allegations
against the appellant that were upheld in the findings of the impugned
judgment. In support of these allegations, fourteen witnesses including the
election petitioner were examined before the learned Tribunal. A Misc.
Application seeking verification/comparison by NADRA of thumb
impression of voters affixed upon counterfoils of ballot papers cast in the
elections was also filed along with the election petition. After hearing the
learned counsel for the appellant and the election petitioner, the learned
Tribunal by order dated 21.05.2014 allowed the said application. NADRA
was directed to carry out verification and comparison of thumb impressions
of voters on the counterfoils of the ballot papers cast in the election. The
CA.307-L/2015
6
DRO/learned District & Sessions Judge, Lodhran was directed to procure the
relevant election material comprising counterfoils of ballot papers along with
voters’ list from the treasury and to dispatch the same in sealed condition to
NADRA, in the presence of the representatives of each party.
7.
After hearing the learned counsel for the parties and the officer
of NADRA, the learned Tribunal on 25.06.2014 appointed its representative
to observe the verification proceedings conducted by NADRA. The said
representative was replaced on 09.07.2014 by Mr. Shabbir Hussain Chattha
(CW-2), a retired District & Sessions Judge. The proceedings of opening,
scanning and verification of the election record by NADRA were conducted
in the presence of the Tribunal’s representative. The process was spread over
three stages. Firstly, on the receipt of election material, it was opened,
counted and tabulated in an electronic record for future reference. Secondly,
each item of counterfoils and photo electoral rolls was digitally scanned and
transferred to a database; thumb impressions, NIC number recorded on the
scanned counterfoils and photo electoral rolls were captured and digitized;
thereafter, the original election material was repacked and stored in safe
custody of NADRA. Thirdly, the digital record of thumb impression and
given CNIC number captured from the election material were put to
authentication
and
verification
under
the
Automated
Fingerprint
Identification System (“AFIS”) of NADRA by comparison with its record
linking the thumb impression of every recorded citizen of the State with his
CNIC. On completion of the authentication/verification stage, NADRA filed
its analysis report (Exb.CW-10/1-6) before the learned Tribunal on 28.10.2014
identifying three categories of thumb impressions contained in the election
record. Firstly, the thumb impression on the counterfoils that matched with
the thumb print in NADRA’s citizens’ database for the CNIC given on the
CA.307-L/2015
7
counterfoils. This is the category of verified votes. The second category of
thumb impression on the counterfoils failed the above said authentication by
not matching with NADRA’s citizens’ database in the NIC number recorded
on the counterfoils. This category included the cases where someone other
than the person holding NIC number recorded on the counterfoils had used
the ballot papers. Finally, the third category of thumb impressions comprised
finger prints of bad quality that could not be deciphered for comparison or
matching through the AFIS of NADRA.
8.
Based on the said analysis of the counterfoils, the NADRA
report at the end of its narrative gives the following summary of its findings:
S.No.
Description
Count of Votes
1
Election material of 290 x Polling Stations received from
Election Tribunal (Ref: Para-2, 3 of this report)
218,056
2
Invalid NIC number mentioned on used counterfoils. This
also includes such counterfoils that do not have CNIC
mentioned over it.
20,601
3
Out of constituency voters found on used counterfoils.
121
4
Duplicate votes on used counterfoils
728
5
Used counterfoils without fingerprints
587
6
Fingerprints successfully authenticated on used
counterfoils and ER
73,707
7
Fingerprints on used counterfoils and ER failing
authentication
179
8
Fingerprints of bad quality affixed on used counterfoils
resultantly NADRA was unable to decipher them due to
non-utilization of proposed ink beside other possibilities.
However, CNIC number mentioned on such counterfoils
having bad thumb impressions were valid CNICs.
122,133
9.
The summary of findings given in the NADRA report
(Exb.CW-10/1-6) reproduced above is explained in its narrative. The report
states that the election material of 298 polling stations out of a total 304
polling stations in the constituency was received from the ECP. However,
relevant election material of eight polling stations was damaged or
unavailable and only the record of 290 polling stations was scanned and
analyzed. From this election material, a total of 218,056 counterfoils of ballot
CA.307-L/2015
8
papers were examined by NADRA. 122,133 counterfoils equaling 56% of the
available number, contained bad quality finger prints that were not readable
by the NADRA software for the purpose of their comparison with and
verification through the NADRA database. As a result, only 95,927
counterfoils contained thumb impressions that were readable by the
NADRA software. Out of this total, 20,601 counterfoils bore invalid CNIC
numbers that had never been issued by NADRA. This count includes 733
counterfoils which did not contain any CNIC number. The said mismatch
with the NADRA record shows either that the election staff failed to verify
CNIC identity of electors or made bogus entries on the counterfoils,
reflecting their indifference or otherwise an improper purpose.
10.
In addition to the 20,601 counterfoils containing invalid CNIC
numbers, another 587 counterfoils were defective for absence of thumb
impression of the voter. Yet another 728 counterfoils were issued to 362
voters showing duplicate votes being cast by such voters; 121 counterfoils
were issued to out of constituency voters and 179 counterfoils bore valid
CNIC numbers but un-matching thumb impressions. Accordingly 22,216
counterfoils contain evidence of bogus voting out of a total number of 95,927
counterfoils that were found readable by NADRA software. These figures
reveal that 23% of the total counterfoils read and deciphered by NADRA
software contain false identities of persons who voted in the election on
account of absent or invalid CNIC number or thumb impression. Casting of
vote by unidentified strangers is contrary to Section 33 of the ROPA that
aims at curbing, inter alia, the practice of bogus voting.
11.
The NADRA report is signed on each page by Mr. Ghazali
Zahid, Director, NADRA Data Warehouse, NADRA Headquarters,
Islamabad. He appeared before the Tribunal as CW-2 and was cross-
CA.307-L/2015
9
examined by the learned counsel for both the parties. Notwithstanding
intense questioning on CW-2, by the learned counsel for the appellant, no
dent could be caused to the credibility, transparency and analytical propriety
of the NADRA scanning and verification process. The appellant did not file
any written objections before the learned Tribunal to the NADRA report.
Nor has the learned counsel for the appellant criticized the said report before
us. The findings given in the NADRA report are therefore authentic,
independent credit worth possessing high probative value.
12.
According to the learned counsel for the election petitioner,
NADRA report (Exb.CW-10/1-6) represents compelling affirmative evidence
about illegalities committed on a widespread scale on the election day. The
appellant is the beneficiary of such acts of commission and omission done by
the election staff. Therefore, firstly, his election is liable to be declared void
on account of its result being achieved through bogus voting. This is evident
from the violations of law committed by the election staff as that have been
detected in the NADRA report. Secondly, the learned Tribunal’s conclusion
about the appellant’s disqualification arrived in the impugned judgment be
affirmed. This conclusion finds the appellant to be the principal beneficiary
of violations of law committed by the election staff, therefore, he has
procured these acts by resorting to corrupt and illegal practices.
Consequently, the appellant is disqualified from being elected for
committing the said wrongs. The learned counsel for the appellant has not
contested the findings recorded in the NADRA report. He has, however,
vehemently opposed the finding of the learned Tribunal that the appellant
has procured the violations of law by the election staff and won the election
by resorting to the commission of corrupt and illegal practices.
CA.307-L/2015
10
13.
The NADRA report does not take account of the defects noted
in the inspection and recounting of votes conducted by the DRO, Lodhran in
May, 2013. These proceedings were observed by the REC (PW-11) and
documented in his report (REC report) dated 23.05.2013 (Exb.P-13)
addressed to the ECP. The violations noted therein include the absence of the
stamp and/or signatures of the Presiding Officer on the counterfoils of ballot
papers required under Section 33(1)(e) of the ROPA. The said provision of
law aims at ensuring that a ballot paper is issued by the competent authority
to a person who is verified to be a voter in the constituency. The REC report
noted the afore-noted defect in the record of 72 polling stations during the
scrutiny of election record of 270 polling stations, observed by the REC. On
this analysis as well the election record of roughly 25% of polling stations
contain a violation of a crucial legal requirement aimed at identifying
genuine voters before the issuance of ballot papers. The total number of
ballot papers affected by this defect is not calculated by the REC report but
the fact that at 72 polling stations the bulk of issued ballot papers suffered
from the said violation of law highlights another serious failing and defect in
the management and conduct of the election process in the constituency on
the election day. The combined effect of the distinct violations of law
committed in the identification of the voters highlighted in the NADRA
report and in the issuance of ballot papers by unauthorized persons indicate
serious flaws in the voting process that render no less than 25% and may be
much more of the total votes cast in the election to be suspect, dubious and
bogus.
14.
Turning to the conclusion to be drawn from the above
mentioned clear and convincing evidence of widespread violations of the
ROPA committed by the election staff. The learned counsel for the appellant
CA.307-L/2015
11
has seriously questioned the findings given by the learned Tribunal that the
appellant is accountable for non-compliance of sub-section 1(e) and 3(c) of
Section 33 of the ROPA. He submits that there is no evidence on record
showing that the appellant procured the violations of law committed by the
election staff. He has read from the affidavits of the 13 witnesses produced
by the election petitioner in aid of his allegation of corrupt or illegal practices
being committed by the appellant on the election day. None of these
affidavits nor the statements in cross-examination of the said witnesses
including the election petitioner disclose any fact nor nominate any person,
for connecting the appellant with the said violations of the ROPA committed
by the election staff. Equally, neither of the two reports, that is, the REC
report (Exb.P-13) and the NADRA report (Exb.CW-10/1-6) insinuates the
appellant’s involvement in the breach of requirements under Section 33 of
the ROPA. The anxiety of the appellant to obtain the reversal of the finding
that he has committed corrupt or illegal practices is to avoid his
disqualification for five years from contesting election under Section 99(1)(l)
of the ROPA. The fact that the appellant won the election cannot be
presumed by the election petitioner as proof that the appellant procured
violations of election law to be committed.
15.
The law regarding the quality of evidence necessary to prove
an allegation of corrupt and illegal practices committed by a candidate
during his election is by now well settled. “Corrupt practice” is defined in
Section 78 of the ROPA while “Illegal practice” is defined in Section 83 of the
said statute. The allegation in the present case would, prima facie, fall within
the ambit of Section 83(1)(b) of the ROPA. The delinquent conduct under the
said provision pertains to, inter alia, procuring the assistance of any person in
the service of Pakistan to further or hinder the election of a candidate. The
CA.307-L/2015
12
successful proof of the commission of the said wrong by a returned
candidate not only annuls his election under Section 368 (1)(d) as well as
Section 70(b) of the ROPA but also disqualifies him from contesting an
election for a period of five years under Section 99(1A)(l) of the ROPA and
exposes him to criminal prosecution for an offence carrying punishment of
six months imprisonment. In view of the severe consequences following the
proof of corrupt and illegal practices in particular by a returned candidate,
different pronouncements by this Court adopt a cautious stance towards a
defending incumbent of elected office. The earliest case on the subject is
Muhammad Saeed vs. Election Petitions Tribunal, West Pakistan, etc.
(PLD 1957 SC 91) which holds that each ingredient of the misdemeanor of
corrupt or illegal practices must be affirmatively proved by direct or
circumstantial evidence. Circumstantial evidence is to be believed if all
reasonable hypotheses which are consistent with the non-commission of
corrupt or illegal practices have been excluded. The said rule has been
reiterated with approval in Muhammad Yusuf vs. S.M. Ayub (PLD 1973
SC 160) and in Muhammad Afzal vs. Muhammad Altaf Hussain (1986
SCMR 1736).
16.
In the present case, there is no circumstantial, let alone, any
direct evidence implicating the appellant in the commission of corrupt or
illegal practices during his election. Only an inferential allusion in the
submissions by the learned counsel for the election petitioner is suggested to
entangle the appellant. The half heartedness of the suggestion itself indicates
the weakness of any merit in the learned Tribunal’s finding that the
appellant is guilty of committing corrupt or illegal practices during the
general election in constituency NA-154 Lodhran-I. Correspondingly, there
CA.307-L/2015
13
cannot be any finding that the result of the said election is vitiated by such
practices under Section 68(1)(d) or Section 70(b) of the ROPA.
17.
Be that as it may, the question that arises is whether the
inclusion of 22,216 invalidly issued ballot papers in the count of election
result is inconsequential in the eyes of law or has any bearing on the result of
the election. It may be reiterated that the objection to the validity of issued
ballot papers arises from non-compliance with the requirements of Section
33(1)(e) and 33(3)(c) of the ROPA to different degrees by the election staff at
almost all the polling stations. Section 70 of the ROPA is relevant for
widespread violations of mandatory law made during the course of election.
It reads as under:
70. Ground for declaring election as a whole void. The Tribunal
shall declare the election as a whole to be void if it is satisfied that
the result of the election has been materially affected by reason
of—
(a) the failure of any person to comply with the provisions of this
Act or the rules; or
(b) the prevalence of extensive corrupt or illegal practice at the
election.
18.
Clearly, the provisions, inter alia, of Section 33 of the ROPA
relating to the identification of an elector before the issuance of a ballot paper
to him are crucial for preventing bogus voting and ensuring a free and fair
election. These provisions with the said object would, according to the dicta
laid down in Abdul Hafeez Khan vs. Muhammad Tahir Khan Loni (1999
SCMR 284) have mandatory effect, and the widespread non-compliance of
the said provision would attract the application of Section 70(a) of the ROPA.
However, it is noticed that a declaration under Section 70(a) ibid is
predicated upon the satisfaction of the Election Tribunal that “the result of the
election has been materially affected by reason of” non-compliance with the
provisions of the ROPA or Rules framed there under. Straightaway, those
violations of the election law that have significant numerical impact on the
CA.307-L/2015
14
count of election result would fall within the ambit of Section 70(a) of the
ROPA. At the same time, arithmetical precision in determining the number
of votes invalidated by delinquent acts committed during the election is not
essential and a Tribunal in principle should consider the imperativeness of
the law violated and the scale of the violation committed in order to estimate
their impact on the result of the election.
19.
In the case of Jam Mashooq Ali vs. Shahnawaz Junejo (PLD
1996 SC 426) this Court treated the non-supply of amended electoral rolls to
the election staff at several polling stations, the prohibition of electors to vote
on account of having identity cards bearing numbers from specified series
and non-issuance of postal ballots to electors who had used photocopy forms
issued for the purpose to have vitiated the process of the election as a whole.
The Court approved the observation that in the facts and circumstances of a
case if it is not possible to even assess as to what should have been the result
of the election on account of non-compliance with the election law, then the
result of the election ought to be treated as being materially affected. The
denial of a right of franchise to the electors on a widespread scale or
conversely the grant of opportunity to strangers to usurp or defeat such right
of franchise through bogus voting are both acts that go to the roots of the
electoral process and contravene the constitutional mandate expressed in
Article 218 (3) of the Constitution that “elections are to be held honestly, justly,
fairly and in accordance with law and that corrupt practices are guarded against.”
20.
In cases where an estimate of the votes tainted with delinquent
conduct can be made, one approach taken by the Court has been to deduct
the number of tainted votes from the lead secured by a winning candidate.
Where the lead significantly exceeds the number of tainted votes, the
adjustment reduces such margin but the winning candidate nevertheless
CA.307-L/2015
15
succeeds. Therefore, in such cases it cannot be said that the result of the
election has been materially affected. In the case of Ehsanullah Reki vs.
Abdul Qadir Baloch (2010 SCMR 1271), this Court adjusted the disputed
votes cast at the polling stations nominated by the election petitioner against
the lead attained by the returned candidate. It was held that even after
giving the election petitioner benefit of all the disputed votes, the lead of the
winning candidate survived by a margin of 188 votes over the total number
of votes attributed to the election petitioner. A similar approach was adopted
by this Court in the case of Raja Ameer Zaman vs. Omer Ayub Khan (2015
SCMR 890) wherein it was contended before the Court that a re-poll at
specified polling stations could not be ordered because the non-compliance
in election process with the provisions of election law had not been
attributed to corrupt or illegal practices committed by any candidate. The
returned candidate could not be punished for neglect or defaults committed
by the election staff. This Court answered that contention as follows:-
“26.
… The scheme of the law appears to be that the primary and
perhaps this most effective defence against bogus voting is to ensure that
a ballot paper is only issued to a person whose name appears on the
Voters List/ Electoral Roll of the Polling Station in question, that too,
after proper identification. To achieve the object of fair election the
availability and proper utilization of the Voters List is therefore crucial.
The failure of an effective filter for the issuance of ballot paper to a bona
fide Elector would tantamount to leaving the barn door open and the
Cow will run away. Any subsequent attempt to track down the
proverbial Cow (the illegally issued ballot paper) is by no means easy if
not impossible.
27.
Yet another safeguard against the bogus voting is the
counterfoils of the ballot papers. Any discrepancy in the number of votes
cast and the counterfoils available would obviously make the result
questionable. Similarly, rejected votes can become a bone of contention
effecting the outcome of the election. It is no coincidence that Voters
Lists, counterfoils of ballot papers and rejected votes are required to
preserved along with other election material as mandated by section 38
of ROPA. The resolution of future dispute through verification appears
to have been catered for.
CA.307-L/2015
16
28.
There can be no escape from the fact that in the instant case the
requirement of the law has not been fulfilled. Section 70 of ROPA clearly
provides that the Tribunal can declare an election to be void on account
of failure of any person to comply with the provisions of ROPA or the
Rules framed thereunder, if such failure materially affects the result. This
Court in the case, reported as Jam Mashooq Ali vs. Shahnawaz Junejo
(1996 SCMR 426) set aside an election, inter alia, on the ground that up-
to-date amended Voters List/ Electoral Roll had not been made available
to the Presiding Officer before the commencement of the voting process
on the election day.”
With respect to the numerical difference of 1304 votes between the returned
candidate and the challenger, it was held that if the votes polled by both the
appellants and respondent No.1 [in the seven objected polling stations] are
excluded from the total tally, then it is the respondent No.1, whose votes
would exceed those cast in favour of the appellant [returned candidate]; thus
it is obvious that non-compliance of the law in seven polling station has
materially affected the election results of the entire election. On the said test
the judgment of the Tribunal for re-poll at the seven polling stations was
upheld. Subsequently, in review proceedings, Raja Ameer Zaman vs.
Omer Ayub Khan (2015 SCMR 1303), this Court modified the extent of the
re-poll to the entire constituency and thereby approved the approach that
material affect upon the result election can be established by excluding the
objected votes from total count in order to assess whether the winning
margin of the returned candidate is upset.
21.
In the present case, there are two reports: one is dated
23.05.2013 (Exb.P-13) prepared by the REC (PW-11) and the other is dated
28.10.2014 (Exb.CW-10/1-6) authored by Mr. Ghazali Zahid, Director,
NADRA (CW-2). Both these witnesses were cross-examined incisively by the
learned counsel for the appellant, however, the integrity and correctness of
the findings given in the two reports remain unaffected. The violations of
election law noted in the NADRA’s report clearly invalidate 22,216 ballot
CA.307-L/2015
17
papers issued to persons contrary to the provision of Section 33 of the ROPA,
which are intended to exclude the possibility of bogus voting and are
therefore mandatory for advancing the mandate expressed in Article 218(3)
of the Constitution. On the other hand, the appellant was returned as
Member National Assembly in the election with a lead of 10,891 votes.
Consequently, by adopting the straight forward numerical approach of this
Court taken in Raja Ameer Zaman’s case (2015 SCMR 890) and also visible
in Ehsanullah Reki’s case (2010 SCMR 1271), it is patently clear that after
adjusting the 22,216 disputed votes against the lead of the appellant, the
result of the election is materially affected and his margin of victory is
eliminated to a losing difference from the tally of the election petitioner.
Equally, on the alternative test adopted by this Court in Jam Mashooq Ali’s
case (PLD 1996 SC 426), the widespread scale of the violations of election law
committed by the election staff in NA-154, Lodhran-I, makes the
pervasiveness of their default to infect the election process as a whole with
doubt and suspicion thereby materially affecting the election result.
22.
According to the NADRA’s report (Exb.CW-10/1-6) the
election record of 290 polling station was scanned and verified. Out of these,
entries of bogus CNIC are contained in the record of 288 polling stations.
Nearly fifty of these polling stations had bogus ID Cards entries on a
minimum of 100 counterfoils upto a maximum of 414 counterfoils. This
result is based on the analysis of 95,927 counterfoils pertaining to almost all
the polling stations. However, the NADRA report states that thumb
impression on 122,123 counterfoils could not be deciphered and therefore,
were excluded from the count. What extent of violation may have taken
place in respect of said unreadable counterfoils can only be guessed, since
these cannot be totally immune from the otherwise universal malaise of
CA.307-L/2015
18
bogus entries. Add to these figures the violation of section 33(1)(e) of the
ROPA occurring at 104 polling stations highlighted in the REC’s report. The
Presiding Officers at these polling stations did not sign and/or stamp the
counterfoils of ballot papers. The issuance of ballot papers against such
counterfoils is unauthorized and invalid. Therefore, the combined impact of
the violations of the ROPA and the Rules framed thereunder that are noted
in the NADRA report and the REC report in the election of NA-154 Lodhran-
I is so widespread and extensive that the test laid down in Jam Mashooq
Ali’s case (PLD 1996 SC 426) is also squarely satisfied. Consequently, the
finding of the learned Election Tribunal, that the result of the election of
NA-154 is materially affected on account of violations to comply with the
provisions of the ROPA or Rules framed thereunder, is entirely justified and
is upheld. The derivative finding by the learned Tribunal that such violations
have been committed by the election staff by or at the behest of the appellant
is unsupported by any evidence and is therefore set aside. We hold that in
consequence of non-compliance of the election laws, the election in NA-154
Lodhran-I is void as a whole.
23.
It may be observed at this stage that owing to afore-noted
significant and substantial evidence of statutory violations in the conduct of
election in NA-154 Lodhran-I, learned counsel for the appellant on
instructions gave his consent to the appellant’s election being declared as a
whole to be void and for a fresh election to be held in the constituency
NA-154 Lodhran-I. That concession was pondered and disregarded by us
because private consent cannot prompt a judicial direction for holding a
fresh election in the constituency. The present lis involves the enforcement of
public law in respect of an elected public office under the Constitution and
involves the commitment of huge public funds through the ECP for
CA.307-L/2015
19
financing a bye-election. The outcome of such a controversy must be decided
in accordance with law and not pursuant to the wishes of affected private
parties.
24.
Keeping in view the above noted vast extent and degree of
neglect, indifference or otherwise malice of the election staff in the conduct
of election in NA-154 Lodhran-I, the object and motivation for such wrong
doing cannot be overlooked or condoned. The ECP is therefore directed to
inquire into the cause and purpose, if any, of such errant conduct by the
election staff and to prosecute the responsible persons for breaches of their
duties, inter alia, committed under Section 91 of the ROPA.
25.
This brings us to the last and highly contested finding given by
the learned Tribunal. It has been held that the appellant made a false
declaration
in
his
nomination
papers
about
his
B.A./Graduation
qualification from the University of Balochistan. Such a false declaration
deprives the appellant of the qualification contained in Article 62(1)(f) of the
Constitution, which provides as follows:
“62.(1). A person shall not be qualified to be elected or chosen as a
member of the Majlis-e-Shoora (Parliament) unless –
…
(f)
He is sagacious, righteous, non-profligate, honest and ameen,
there being no declaration to the contrary by a court of law;”
The learned counsel for the appellant has contested the said finding because
there is no direct evidence on record showing that the appellant’s claim of
his graduate qualification is false. The election petitioner as an accuser
cannot establish the allegation without bringing proof that is beyond
reasonable doubt. In such matters involving a penal consequence, the benefit
of doubt must favour the accused, in this case the appellant. Reliance has
been placed on the judgments by this Court in Muhammad Saeed vs.
Election Petitions Tribunal, West Pakistan, etc. (PLD 1957 SC 91), Saeed
CA.307-L/2015
20
Hassan vs. Pyar Ali (PLD 1976 SC 6) and Muhammad Afzal vs.
Muhammad Altaf Hussain (1986 SCMR 1736).
26.
The loss of qualification under Article 62(1)(f) of the
Constitution has been visited with removal from elected office under the
Constitution in a number of cases including Abdul Ghafoor Lehri vs.
Returning Officer PB-29 Naseerabad-II (2013 SCMR 1271), Allah Dino
Khan Bhayo vs. Election Commission of Pakistan (2013 SCMR 1655),
Iqbal Ahmad Langrial vs. Jamshed Alam (PLD 2013 SC 179) and Najeeb-
ud-din Owaisi vs. Amir Yar Waran (PLD 2013 SC 482). Weighty reasons
have been assigned for adopting and implementing the constitutional
mandate as a bar on membership in Parliament. Firstly, the qualifications of
a candidate set out in Article 62 of the Constitution are a sine-qua-non for
eligibility to be elected as Member of Parliament. No time limit for
ineligibility on this score is given in the Constitution. A person who is
untruthful or dishonest or profligate has no place in discharging the noble
task of law making and administering the affairs of State in government
office. Such faults in character or disposition, if duly established, cannot be
treated as transient for the purpose of reposing trust and faith of the
electorate and the Constitution in the holder of an elected office under the
Constitution. The trusteeship attendant upon the discharge of every public
office under the Constitution, whether Legislative, Executive or Judicial is a
universally recognized norm. However, our Constitution emphasizes upon it
expressly for an elected parliamentary office. The Constitutional norm must
be respected and therefore implemented. The above noted precedents have
applied a lifetime bar on a delinquent elected Member of Parliament.
Therefore, the apprehension of the appellant, as expressed by his learned
counsel about incurring the sanction under Article 63 of the Constitution is
CA.307-L/2015
21
fully justified. Irrespective of the period of disability inflicted for violation of
Article 62(1)(f) of the Constitution, the learned Tribunal should have
examined the evidence in relation to the allegation of false declaration by the
appellant in his nomination papers very carefully and judiciously before
depriving him of eligibility to contest for elected office under the
Constitution.
27.
The state of evidence on record about the falsity of the
appellant’s educational qualification is cursory, defused and inferential. No
witness of the University of Balochistan was examined by the election
petitioner. Likewise, no witness of Board of Intermediate and Secondary
Education (“BISE”), Karachi wherefrom the appellant secured his Secondary
School Certificate (Matriculation) and Higher Secondary School Certificate
(Intermediate) was examined by the election petitioner. There is no report on
record either by the University of Balochistan or BISE, Karachi disputing,
disowning or rejecting diplomas/certificates conferred by the said
institutions upon the appellant. At best, the case of the election petitioner is
based on the belated decision of the appellant i.e. at the age of 43 years, to
secure his Secondary School Certificate, Higher Secondary School Certificate
and Graduation degree in the years 2002, 2004 and 2006 respectively. This
initiative coupled with his poor English language skills and total lack of
knowledge of the Sindhi language as well as failure to distinguish “General
Science” from “Political Science” are highlighted by the learned counsel for
the election petitioner as proof of the appellant’s lack of graduate
qualification. The order sheets of the learned Tribunal show that on
28.02.2014, the Deputy Controller of Examination, BISE Karachi attended the
Court as a summoned witness. The election petitioner did not examine him
because of the incomplete record that he had brought. Again on 15.04.2014
the Controller of Examination, University of Balochistan attended the Court
CA.307-L/2015
22
as a summoned witness. He also brought incomplete record and the election
petitioner decided not to examine him.
28.
The case law on the subject of false declaration of educational
qualifications by a returned candidate covers in general three categories:
firstly, where the degree or diploma is fake and bogus and is disowned by
the institution claimed by the holder to have issued the same; secondly,
where the degree or diploma has been procured through personation and
some finding on this score has been rendered by the concerned educational
institution; and thirdly, where unfair means have been adopted by a
candidate to pass his examination or secure his degree or diploma
fraudulently, deceitfully or with complicity. The election petitioner has made
a vague and jumbled allegation against appellant’s educational qualifications
that does not specify either in his pleadings and his evidence, the precise
reason for the invalidity of the B.A. qualification of the appellant. In the final
analysis, when the learned counsel for the election petitioner declined to
avail the opportunity to cross-examine the Controller of Examination of the
University of Balochistan about his failure to bring the summoned record,
the election petitioner gave up the chance to demonstrate complicity, design
or impropriety in the issuance of the degree to the appellant. To cover that
defect, the learned counsel for the election petitioner made a request that this
Court should itself examine the appellant under Order X Rule 2 CPC.
Reliance was placed on Iftikhar Ahmad Khan Bar vs. Chief Election
Commissioner (PLD 2010 SC 817) and Muhammad Rizwan Gill vs.
Nadia Aziz (PLD 2010 SC 828). However, both precedents are
distinguishable. In the first case, the qualification claimed by the returned
candidate was a Sanad of Alshahadat-ul-Aalimia equivalent of M.A. in Islamic
Studies according to the Higher Education Commission Pakistan (“HECP”).
CA.307-L/2015
23
However, the body authorized by the HECP for conferring the said Sanad,
namely, the Wafaq-ul-Madaris, Pakistan, disowned issuance of the Sanad
claimed by the returned candidate. In fact the Jamia Rizvia Sardarul Madaris
which had conferred the Sanad was not even registered with the Wafaq-ul-
Madaris. In the background of clear proof of bogus qualification of the
returned candidate but before giving any adverse finding against an elected
Member of Parliament, this Court in order to do justice decided to examine
him. The second case is completely different in which the returned candidate
himself wished to be heard in-person before this Court and to make a
statement. The two cases were accordingly decided on their own facts.
However, it cannot be canvassed that in these cases the Court ventured to fill
any lacunae in the evidence against the returned candidate, whereby he
would be disqualified to contest any election; whereas this is being presently
canvassed before us on behalf of the election petitioner.
29.
At this juncture, it is important to emphasize that in cases
involving a finding of fact about the disqualification of a returned candidate
in election matters, such finding must be based on affirmative evidence and
not on presumptions, inferences and surmises. That does not mean that
proceedings in an election petition before an Election Tribunal are strictly
criminal proceedings. It is settled law that even in civil proceedings, a
finding of fact must be based on positive and affirmative evidence. This
requirement rests in the basic principles of the Qanun-e-Shahadat Order,
1984 and is articulated in Allah Din vs. Habib (PLD 1982 SC 465). For that
reason and the serious consequences that follow a finding of disqualification
under Article 62(1)(f) of the Constitution, an additional evidentiary
safeguard is adopted by the Court, namely, that any reasonable hypothesis
CA.307-L/2015
24
available in the recorded evidence to avoid the disqualification of the
returned candidate ought to be adopted by the Court of law. The foregoing
safeguards have already been laid down in relation to the proof of corrupt
practice by a candidate in an election. Section 78(3)(d) of the ROPA treats a
false statement by a candidate about his educational qualification to be a
corrupt practice.
30.
The earliest pronouncement on this subject is rendered by this
Court in Muhammad Saeed’s case (PLD 1957 SC 91), wherein it is held that:
“… the burden of proof of corrupt practices is on the petitioner; that the
evidence of proof of such practices must be restricted to the charges or
instances mentioned in the petition and the particular; that each
ingredient of a corrupt practice so charged must be affirmatively proved
by evidence, direct or circumstantial; and that where the evidence is
wholly circumstantial, the commissioners before finding a corrupt
practice proved must exclude all reasonable hypotheses which are
consistent with that corrupt practice having not been committed… .”
31.
A case directly pertaining to disqualification of a returned
candidate was heard by this Court in Mohammad Yusuf’s case (PLD 1973
SC 160) wherein whilst adopting the view taken in Muhammad Saeed’s
case (PLD 1957 SC 91) this Court has observed that finding of
disqualification must be based on positive evidence and should not be
rendered inferentially on mere surmises; that since a disqualification was
penal in nature, therefore, the terms thereof were subject to strict
interpretation; and the benefit of doubt was to be extended in favour of a
returned candidate. The later judgments of this Court rendered in Saeed
Hassan’s case (PLD 1976 SC 6) and Muhammad Afzal’s case (1986 SCMR
1736) approve the principles enunciated in the afore-noted two judgments.
32.
The defect with the election petitioner’s case is his failure to
bring direct or circumstantial evidence that affirmatively proves that the
appellant has made a false statement about his graduate qualification. The
CA.307-L/2015
25
learned counsel for the election petitioner has contended that in civil matters,
as in the present case, wherein pursuant to the provisions of Section 64 of the
ROPA, the Election Tribunal exercises all the powers of the Civil Court
under the Code of Civil Procedure, 1908, the initial burden of proof lies upon
the appellant because he is the holder and beneficiary of the educational
qualification claimed by him. That the appellant has never discharged that
burden of proof and consequently, the genuineness of the claimed graduate
qualification is not proven. The said submission ignores the verification
certificate of the appellant’s B.A. degree issued by the HECP and presented
to the Election Tribunal vide Exb.R-27. This exhibit includes the Degree
Submission Information Form (“DSIF”) (Exb.R.24/1) signed respectively by
the Controller of Examination and the Vice Chancellor of the University of
Balochistan. Furthermore, the Director (Attestation) of the HECP deposed as
RW-22 before the learned Tribunal to substantiate and defend the
verification of the appellant’s graduate qualification carried out by the HECP
under orders of this Court dated 14.06.2010 passed in Civil Appeal No. 409
of 2010. Sadly, the cross-examination of the said witness by the learned
counsel for the election petitioner failed to extract any concession or
information favourable to the election petitioner by discrediting or
demolishing the HECP verification of degrees procedure. No substantial
defect in that procedure nor the inadequacy of safeguards and checks
applied by the HECP for rendering its verification were demonstrated. In the
absence of material showing that the appellant had failed to discharge his
initial burden of proof to demonstrate his educational qualification clearly
the burden of proof shifted to the election petitioner who, as already
observed, failed to meet the standard specified in the precedents noted
above. Accordingly, the findings given by the learned Tribunal to the effect
CA.307-L/2015
26
that the appellant has made a false statement/declaration in his nomination
papers regarding his educational qualification is based on presumption,
inferences and surmises and is therefore, unsustainable in law. It is
accordingly set aside. The appeal is accordingly partly allowed with a
direction to the ECP to hold a fresh election in constituency NA-154
Lodhran-I in accordance with law. There is no order as to costs.
33.
Herein above are the reasons of our short order dated
28.10.2015, which is reproduced herein below:
“For the detailed reasons to be recorded later, this appeal is partly
allowed, in that the finding of the learned Election Tribunal regarding
disqualification of the appellant is set aside. However, as regards the
finding on the question/issue about illegal and corrupt practices
committed in the holding of the election in the constituency, the learned
counsel for the appellant is prepared to face a fresh election. He does not
press this appeal to the extent that the result of the election is void under
Section 70(a) of the ROPA, 1976. However, he contests the finding given
against the appellant under Section 68 of the ROPA, 1976.
2.
In view of the concession given with respect to violations of law
under Section 70(a) of the ROPA, 1976, the result of the election is
materially affected and is therefore declared void. In light of the above,
this appeal is partly allowed; the election of constituency NA-154
Lodhran-I having been declared void, the Election Commission of
Pakistan is directed to hold fresh election in the said constituency in
accordance with law.”
J.
J.
J.
Islamabad,
28.10.2015.
Irshad Hussain /*
APPROVED FOR REPORTING.
| {
"id": "C.A.307-L_2015.pdf",
"url": ""
} |
In the Supreme Court of Pakistan
(Appellate Jurisdiction)
Present:
Mr. Justice Anwar Zaheer Jamali, HCJ.
Mr. Justice Amir Hani Muslim
Mr. Justice Iqbal Hameedur Rahman
CIVIL APPEAL NO. 308 OF 2014
(on appeal from the judgment of the
Islamabad High Court, Islamabad dated
17.09.2013 passed in ICA-872 of 2013)
Government of Pakistan M/o Railways, through its Secretary, etc
…Appellants
VERSUS
Jamshed Hussain Cheema & others
…Respondents
For the appellants:
Rai Muhammad Nawaz Khan Kharal, ASC
Syed Rifaqat Hussain Shah, AOR
For the respondents:
Ch. Muhammad Anwar Bhindar, Sr. ASC
Date of Hearing:
07.12.2015
JUDGMENT
Anwar Zaheer Jamali, C.J. – This civil appeal with leave of
the Court is directed against the judgment dated 17.9.2013, in Intra
Court Appeal No.872/2013, passed by the learned Division Bench of the
Islamabad High Court, Islamabad, whereby the said Intra Court Appeal
at the instance of present appellants was dismissed, and consequently
the judgment dated 20.5.2013, passed by learned single Judge in
chambers of the Islamabad High Court, Islamabad in Writ Petition
No.975/2011, filed by respondents, thereby granting them requisite
relief, was maintained.
C.A No.308/2014.
2
2.
Briefly stated, relevant facts of the case are that in the
month of March 2011, the respondents No.1 to 20 (in short “the
respondents”) had instituted the above referred writ petition under
Article 199 of the Constitution of Islamic Republic of Pakistan, 1973
with the grievance of discrimination in the matter of upgradation of
their posts as against other employees of the appellants in different
categories and in that context they had prayed for following reliefs:-
“In view of the above circumstances, it is, therefore, most
respectfully prayed that the instant writ petition may kindly be
accepted and the act of the respondents not to upgrade the scales of
the petitioners may graciously be declared as illegal, unlawful,
ineffective and inoperative upon the rights of the petitioners and
direction may graciously be issued to the respondents to upgrade the
post of Claim Inspector BS-13 to the BS-16, which is in the interest of
justice.”
3.
In the parawise comments submitted by the appellants
before the Islamabad High Court, the maintainability of the writ petition
was challenged on various legal grounds. On facts also, claim of
respondents was challenged, inter alia, on the plea that they have been
also upgraded one scale from BS-12 to BS-13, duly approved by the
competent authority. Thus, there was no occasion of any discrimination
in this regard, as those who were given upgradation in scales by more
than one step were in different categories than the respondents.
4.
The petition was heard by a learned single Judge in the
Islamabad High Court and it was allowed vide judgment dated
20.5.2013 with directions to the appellants to initiate process for
upgradation of posts of Claim Inspectors/respondents, keeping in view
C.A No.308/2014.
3
the earlier recommendations, and such process be completed within
two months.
5.
Being dissatisfied by the above judgment, Intra Court
Appeal under section 3 of the Law Reforms Ordinance, 1972, was filed
by the appellants, which was dismissed vide impugned judgment, as the
learned Division Bench endorsed the view of the learned single Judge
contained in his impugned judgment.
6.
Leave to appeal was granted in this case, inter alia, to
examine whether the private respondents, being civil servants, could
have invoked the writ jurisdiction of the High Court as regards their
grievance, which according to learned ASC for the appellants, related to
terms and conditions of their service. Today, when the learned ASC for
the appellants was confronted with the ratio of judgment in the case of
Ali Azhar Khan Baloch v. Province of Sindh (2015 SCMR 456), relating to
concept of upgradation of posts, he candidly did not dispute the legal
position that upgradation to higher scale is not equivalent to promotion
and no concept of upgradation, as one of the terms and conditions of
service, was provided under the Civil Servants Act, 1973. Therefore, for
any grievance with reference to upgradation, remedy was not available
to the respondents before the Service Tribunal. However, he forcefully
argued that upgradation of scales was purely a policy decision, which
was to be taken by the competent authority with the approval of the
Government and in this regard the decision of the competent authority
regarding upgradation of different employees of the appellants was
C.A No.308/2014.
4
final and it could not be interfered with by the Court, as has been done
in the instant case by both the Courts below.
7.
Conversely, Ch. Muhammad Anwar Bhindar, learned ASC
for the private respondents made reference to the concise statement
submitted by him on behalf of respondents, which is accompanied with
a chart to show the manner in which some other employees of the
appellants in different other categories have been given upgraded
scales, in some cases up to five steps, though the present respondents
have been given upgradation only by one step.
8.
We have considered the above submissions and with the
assistance of learned ASCs, perused the material placed on record,
which reveals that a policy decision has been taken by the competent
authority with the approval of Federal Government for upgradation of
pay scales of different categories of its employees in a conscious
manner, looking to the nature of their jobs etc, therefore, such decision
cannot be challenged in writ jurisdiction on the purported plea of
discrimination. More so, when Article 25 of the Constitution itself
provides a provision for such discrimination on the principle of
reasonable classification. In the present case, respondents have also
been granted upgradation by one step from BS-12 to BS-13 alongwith
many others, who have been also given only one step upgradation in
the scales and in many other cases upgradation is allowed by two steps.
Thus, such classification/categorization by the competent authority
cannot be struck down on the plea of discrimination, at the whims of
respondents, who had approached the Islamabad High Court in this
C.A No.308/2014.
5
regard. In addition to it, learned ASC for the respondents has also failed
to show that due to the impugned action of the appellants any
fundamental rights of the respondents have been violated or they have
any vested right for such upgradation as per their choice. If any case law
is needed to fortify the above view, reference can be made to the
following cases:-
Case law.
9.
Foregoing are the reasons for our short order, which reads
thus:-
“We have heard arguments of the learned ASCs for both
parties. For reasons to be recorded separately, this appeal is allowed.
The impugned judgment dated 17.09.2013, passed by the learned
Division Bench of the Islamabad High Court in Intra Court Appeal
No.872 of 2013 and judgment dated 20.05.2013, passed by the
learned single Judge in Chambers of the Islamabad High Court in Writ
Petition No.975 of 2011, are set aside, and the Writ Petition filed by
Respondents No.1 to 20 is accordingly dismissed.
2.
At this stage, learned ASC for appellant has clarified
that Respondents Nos. 1 to 20 have been earlier upgraded to Scale-
13, therefore, he will ensure payment of their salaries along with
arrears, if any, from the date of their upgradation in Scale-13.
Moreover, if need be, their cases for further upgradation will also be
considered. Order accordingly.”
Islamabad,
07th December, 2015.
Not approved for reporting.
تﻗادﺻ
Chief Justice
Judge
Judge
| {
"id": "C.A.308_2014.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE IJAZ UL AHSAN
MR. JUSTICE SAYYED MAZAHAR ALl AKBAR NAQVI
MR. JUSTICE JAMAL KHAN MANDOKHAIL
Civil Appeal No.3 15 of 2022
(On appeal against the judgment dated 27.04.2017
passed by the Peshawar High Court Peshawar in
RFA No. 328-P of 2016)
Shahin Shah
Versus
Appellant
The Government of Khyber Pakhtunkhwa
Respondents
through Secretary Irrigation Department,
Peshawar and others.
For the Appellant(s):
Qazi Jawad Ehsanullah, ASC.
Ch. Akhtar All, AOR.
For the Respondent(s):
Mian Shafaqat Jan, Addl. AG, KP.
Nemo (for respdt.#6)
Date of Hearing:
20.06.2022.
JUDGMENT
IJAZ UL AUSAN, J: - The Appellants through the
instant appeal have challenged a judgment of the Peshawar
High Court, Peshawar dated 27.04.20 17 passed in Regular
First Appeal No. 128-P of 2016 ("Impugned Judgment").
Through their Regular First Appeal ("RFA"), the Respondents
had challenged the judgment and decree of the Trial Court
dated 19.03.20 16 whereby, the Arbitration Award given in
favour of the Appellants was made a Rule of Court. The
learned High Court set aside the judgment and decree dated
9,03.2016 and remanded the matter back to the Trial Court.
2. The case at hand has a complicated history,
hence, for the sake of clarity, the necessary facts of the case
Civil Appeal No.315 of 2022.
2
are divided into two parts i.e., the background of the case
containing facts from the award of the tender to the first
decision of the Trial Court and the history of litigation
comprising of the remand and post remand proceedings and
their outcome.
Background of the Case: -
On 01.03.2001, a tender submitted by the
Appellant for a contract for remodelling of the Surface
Drainage System in Tanda Dam, Kohat, was approved.
Resultantly, an Agreement dated 25.03.2001 between the
Appellant and the Respondents ("Agreement") was signed. In
the Agreement, Clause 21 provided that all disputes between
the parties would be settled by way of arbitration. The
Respondents (as alleged by the Appellants) did not hand over
the site in time, resulting in a dispute arising between the
parties. Consequently, a suit for recovery of damages was
filed by the Appellant on 16.01.2004. The suit was
accompanied by an application filed by the Appellant under
Section 8 of the Arbitration Act, 1940, seeking a direction by
the Trial Court to refer the matter to arbitration as provided
in clause 21 of the contract between the parties.
Subsequently, the Respondents also filed an application on
06.03.2004 for the grant of a stay in the suit to resolve the
dispute through arbitration.
The Appellant and the Respondents agreed that
the matter should be referred to Arbitration under the Rules
of Reconciliation and Arbitration of the International
r r
Civil Appeal No.315 of 2022.
3
Chambers of Commerce. The applications to stay the suit
were dismissed and on 24.07.2004. However, the Trial Court
passed an order referring the matter to arbitration. The
Appellant and the Respondents submitted their nomination of
arbitrators on 17.02.2005.
The arbitration proceedings were conducted, both
parties freely and voluntarily participated in the proceedings.
The arbitrators appeared before the Trial Court to seek
extension of time to complete the proceedings and render an
award. Two-months time was granted to the arbitrators to file
the Arbitration Award ("Award"). The matter was then
adjourned to 14.02.2005. The arbitrators once again
appeared before the Trial Court on 14.02.2005 and sought a
further extension of two months, which was granted by the
Trial Court and the case was fixed for 15.07.2005. On
15.07.2005, the arbitrators sought another extension to file
the Award and were again granted two further months to ifie
the Award.
Ultimately, the Award was filed in Court on
15.09.2005. The case was adjourned to 15.10.2005. The
Appellant filed objections to the Award on 15.10.2005. The
Respondents filed their objections to the Award on
05.0 1.2006. The Respondent's objections to the Award were
replied to by the Appellants on 24.01.2006 as inter alia,
barred by time. The Respondents, on 26.07.2006, submitted
an application for condonation of delay in support of the
Civil Appeal No.315 of 2022.
4
.4
objections filed by them which were filed four months beyond
the period of limitation.
Finally, the Award was made Rule of Court on
27.11.2006.
History of Litigation: -
The Respondents filed RFA No. 94/2007 against
the judgment and decree of the Trial Court dated 27.11.2006
whereby the award was made a rule of the Court. The RFA
was allowed. The matter was remanded to the Trial Court vide
judgment of the High Court dated 24.06.2009. However, in
post remand proceedings, the Award was once again made
Rule of Court vide judgment and decree dated 12.09.2009.
The Respondents filed another RFA No. 225/2009
on 17.11.2009. This RFA was also allowed on 13.10.15.
Resultantly, the matter was again remanded to the Trial
Court with directions to record statements of the Arbitrators.
The order of the trial Court regarding dismissal of objections
petition filed by the Respondents as barred by time was not
interfered with. Having not been challenged before any higher
forum by the Respondents, it attained finality. On
08.12.2015, the Respondents filed an application before the
trial Court for filing fresh objections against the award. The
said application was dismissed on 07.01.2016. Such
dismissal was not challenged before any higher forum.
Thereafter, the statements of the two Arbitrators
were recorded on 01.02.2016 and they were cross-examined
V
Civil Appeal No.315 of 2022.
5
by the Respondents. Finally, the Award was once again made
Rule of Court vide judgment and decree dated 19.03.2016.
Aggrieved, the Respondents filed an RFA against the
judgment dated 19.03.2016. Vide the Impugned Judgment,
the Award was set aside, and the matter was once again
remanded to the Trial Court to commence the proceedings
from where the Arbitrators were appointed.
Aggrieved by the decision of the learned High
Court, the Appellants have approached this Court.
3.
Leave to appeal was granted by this Court vide
order dated 09.02.2022 in the following terms: -
"After hearing the learned Counsel for the Petitioner
and the learned Counsel for the Respondents, who has
appeared pursuant to our notice to the Respondents, leave to
appeal is granted to examine, whether the petitioner was
non-suited on the ground that on account of delay in passing
the award, the arbitrators committed misconduct and
whether the learned High Court misread the evidence and
the record to come to the conclusion that the arbitrators had
committed misconduct, despite the fact that in the three
rounds of litigation, the award had repeatedly been upheld
by the Civil Court. Further, whether the High Court has
correctly interpreted the law of limitation..."
4.
The learned ASC for the Appellant submits that
the High Court could not have exercised jurisdiction as a
Court of Appeal over a judgment making an Arbitration Award
a Rule of Court. Arbitration awards can be interfered with on
limited grounds provided in the law. He further submits that
when an Award has been rendered by an Arbitrator(s) in
accordance with the law, the High Court as per Section 17 of
the Arbitration Act, 1940 ("Act, 1940") cannot set aside the
judgment and decree making an Award, Rule of Court, except
where the Award rendered is against the law. Learned ASC for
the Appellants further submits that the Objections to the
Civil Appeal No.315 of 2022.
6
Award filed by the Respondents were barred by time which
fact was not interfered with by the High Court in the
Impugned Judgment. As such, the High Court could not have
remanded the case to the trial Court for the third time. The
learned ASC has further argued that, after the case was
remanded for the second time, the Respondents filed
objections which were dismissed vide order dated 07.01.16
and, the said order was never challenged or questioned by the
Respondents, therefore, the order dated 07.01.2016 had
attained finality and could not be reopened by the High
Court. The learned ASC for the Appellants further submits
that the filing of the Award beyond the period of limitation of
04 months was not fatal and, was within the confines of
Section 28 of the Act, 1940 which provides that an extension
of time for the submission of an Arbitration Award may be
sought from, the Court. The learned ABC further argued that
notice as per Section 14 of the Act, 1940 was served by the
arbitrators and, the High Court misread the record in holding
that no such notice was served and, even if no such notice
was served, substantial compliance of Section 14 of the Act,
1940 was done since the Award was filed in Court in the
presence of the parties and their counsel. He has submitted
that the statements of the two Arbitrators were recorded and
the Award was tendered in evidence on which no objection
was raised. Learned ASC has further argued that Section 34
of the Act, 1940 was not attracted in the present case arid,
that if objections in this regard were not raised before the trial
Civil Appeal No.315 of 2022.
7
Court, such objections could not be raised before the High
Court.
5. The learned Additional Advocate General, Khyber
Palchtunkhwa ("AAG KP") argued that the entire proceedings
before the Trial Court were illegal since the Trial Court failed
to observe the procedure provided in Section 34 of the Act,
1940 before sending the reference to arbitrators. Learned AAG
KP, while accepting that the objections filed by the
Respondents were barred by time, has further argued that the
Trial Court was bound to examine the Award notwithstanding
the delay in filing the objections. Learned AAG KP further
argued that since the Act, 1940 was not followed in letter and
spirit, therefore, the High Court correctly remanded the case
to the Trial Court to be examined afresh, in the interest of
justice. The learned AAG KP has further argued that the
Arbitrators misconducted themselves by not filing the Award
within the prescribed time limit of 04 months, which itself
was sufficient to render the Award invalid.
6. We have heard the learned Counsel for the parties
and perused the record. The questions which require
adjudication by this Court are as follows: -
(I)
Was the order of the Trial Court making the
Arbitration Award, Rule of Court, appealable?
(ii)
Did the Arbitrators misconducted themselves by
not filing the Arbitration Award within time?
Whether notice under Section 14 of the Arbitration
Act, 1940 was serued by the Arbitrators Were the
Arbitrators required to file the Arbitration Award in
Court within 90 days as per Article 178 of the
Limitation Act, 1908?
Civil Appeal No.315 of 2022.
8
(iv)
Was the fact that the Respondents did not file their
objections to the Arbitration Award within time,
fatal to the Respondent's case?
(v)
Were the proceedings before the Trial Court illegal
due to the absence of a formal order under Section
34 of the Act, 1940?
WAS THE ORDER OF THE TRIAL COURT MAKING THE
ARBITRATION AWARD, RULE OF COURT, APPEALABLE?
7. Section 39 of the Act, 1940 provides five instances
in which an aggrieved party may file an appeal against an
order passed under the Act, 1940. Section 39 of the Act, 1940
is reproduced below: -
"39 Appealable orders: (1) An appeal shall lie from the
following orders passed under this Act (and from no others)
to the Court authorised by law to hear appeals from original
decrees of the Court passing the order: -
An order-
(i)superseding an arbitration;
(ii)on an award stated in the form of a special case;
(iii)modifying or correcting an award;
(iv)filing or refusing to file an arbitration agreement;
(u)staying or refusing to stay legal proceedings where there is
an arbitration agreement;
(vQsetting aside or refusing to set aside an award:
Provided that the pro visions of this section shall not
apply to any order passed by a Small Cause Court.
(2) No second appeal shall lie from an order passed in appeal
under this section, but nothing in this section shall affect to
take away any right to appeal to the Supreme Court."
The aforenoted provision of the Act, 1940 restricts
and limits the instances in which an appeal may be filed. This
is evident from the words "and from no others" provided in
Section 39 ibid which essentially means that except for an
appeal that falls in the limited parameters provided in the
aforenoted provision, no appeal would be competent. The use
of specific words by the legislature is an expression of the
legislative intent and, Courts cannot interfere with the same
unless a literal interpretation of the law would not correct the
7
Givil Appeal No.315 of 2022.
9
mischief sought to be corrected. As evident from the grounds
agitated by the Respondents in RFA No. 94/2007, the
Respondents inter a/ia, out rightly denied the existence of an
Arbitration Agreement; denied the existence of an arbitrable
dispute between the parties, and essentially, prayed for the
Arbitration Award to be set aside. This Court's discussion,
therefore, will be confined in the present question to Section
39 (vi) which covers the situation where an order is passed
that either sets aside the Arbitration Award or refuses to set
aside an Arbitration Award.
8. The Respondents are aggrieved of a "composite
order" dated 19.03.2016, passed by the Trial Court, whereby
the objections filed by the Respondents were dismissed and
the Arbitration Award was made Rule of Court. The word
"composite" means that the order is comprised of two distinct
elements or parts. An example of a composite order can be
seen in the case titled Rashida Begum v. Ch. Muhammad
Anwar and Others (PL.D 2003 Lahore 522) in which, the
objections raised by the Appellant (before the High Court then)
were dismissed and, the Court made the award rule of Court,
followed by a decree dated 05.03.1985. The said order is a
"composite order" because it comprises two distinct parts i.e.,
the dismissal of the objection petition filed by one party and,
the making of an arbitration award, Rule of Court. Another
example of a composite order can be seen in the case of
Muhammad Alam Khan v. Jewan Khan (PLD 1985 Lahore
181) in which, the Court held as follows:-
Civil Appeal No.315 of 2022.
lii
"It would be seen that under clause (b) the relief claimed is
undervalued. Therefore, the Court after determination of the
real value should direct the plaintiff to correct the valuation
in the relevant para of the plaint within the specified time. It
means that order under clause (b) is to be followed by order
under clause (c) to make up the deficiency in the court-fee. It
may be a composite order. Conversely speaking when the
plaintiff is directed under clause (b) to correct the valuation
of the suit for purposes of court-fee and jurisdiction, then it
becomes his duty not only to amend the plaint but also to
pay the court-fee accordingly. This means making up of the
deficiency in the court-fee in cases covered by clause (b) is
automatic. To mu mind, the proper order would be a
composite order i.e. the plaintiff should be directed to amend
the plaint and also to fix the court-fee accordingl y and the
failure shall entail the rejection of the plaint. But in a case
under clause (c) the relief claimed is valued properly but
plaint had been written upon a paper insufficiently stamped,
therefore, the Court would simply direct the plaintiff to
supply the requisite stamp paper within the time to be fixed
by the Court. This way there is a clear distinction between
the two provisions. The same was not kept in mind by the
Thai Court while invoking clause (b) of Order VII, Rule 11,
C.P.C. in this case. "(Underlining is ours)
In the present case, the Trial Court's order has
two distinct parts as well. The Trial Court has not only
dismissed the objections of the Respondents as being barred
by time by four months but has also made the Arbitration
Award, Rule of Court.
9. The learned High Court has held that even where
an application to set aside an Award is rejected by the Trial
Court under Section 17 of the Act, 1940, nonetheless, the
right of an aggrieved party under Section 39 of the Act, 1940
cannot be circumscribed since, in a composite order, each
part of the order may be taken as an independent and
separate order and can be challenged under Sections 39 and
17 separately. The learned High Court has further held that a
challenge under Section 17 "shall only be maintainable if
conditions laid down in Section 17 of the Act were met". It,
therefore, becomes necessary to examine Section 17 of the
Act, 1940, which is reproduced as under: -
Civil Appeal No.315 of 2022.
11
"17. Judgment in terms of award. Where the Court sees
no cause to remit the award or any of the matters referred to
arbitration for reconsideration or to set aside the award, the
Court shall, after the time for tucking an application to set
aside the award has expired, or such application having
been made) after refusing it, proceed to pronounce judgment
according to the award, and upon the judgment so
pronounced a decree shall follow, and no appeal shall lie
from such decree except on the ground that it is in excess of
or not otherwise in accordance with, the award."
Section 17 ibid provides that an appeal under the
said provision may only be filed against a decree on the
grounds that (a) the decree is in excess of the award and (b) it
is otherwise not in accordance with the award.
10. The difference between Section 39 and Section 17
is that Section 39 provides more grounds under which an
order passed under the Act, 1940 may be challenged, than
the grounds of challenge under Section 17. It is evident from
the grounds taken by the Respondents in RFA 94/2007 that
they did not dispute the decree of the Trial Court as being
either in excess of the Arbitration Award or otherwise, against
the Arbitration Award. The learned High Court conceded that,
for a challenge to be maintainable under Section 17, the
conditions prescribed therein must be met. However, it
escaped the learned High Court's notice that the Respondent
had not challenged the decree of the Trial Court on the
grounds mentioned in Section 17 (supra) inasmuch as it was
not the stance of the Respondents that the judgment and
decree of the Trial Court was either in excess of the
Arbitration Award or otherwise against the Arbitration Award.
Since the Respondents had not taken the stance that the
decree of the Trial Court was in excess of or against the
Arbitration Award; they effectively admitted that the decree of
Civil Appeal No.315 of 2022.
12
the Trial Court was correct to the extent that the decree was
in accordance with the Award. As such, the findings of the
learned High Court in this respect are in our opinion
erroneous and unsustainable. If the High Court found that
the order of the Trial Court had two distinct parts, then, it
had to examine whether the Respondents had challenged
both parts of the order independently by raising independent
grounds in terms of Section 17 and Section 39. The High
Court could not have suo motu implied that such grounds had
been taken. The High Court was required to proceed on the
basis of record which clearly showed that the Respondents
had nowhere taken the stance that the decree of the Trial
Court was in excess of or against the Arbitration Award. As
such, the Nigh Court could not have assumed jurisdiction in
the matter, especially when the Respondents did not question
the decree on the grounds mentioned in Section 17 of the Act,
1940. Even otherwise, the failure of the Respondents to
agitate the grounds mentioned in Section 17 before the Trial
Court barred them from raising any such grounds before the
High Court since the Respondent was appealing against the
judgment of the Trial Court. They were to show that the
judgment of the trial Court was hit by any of the grounds
available under Section 17 ibid which they failed to do. The
High Court, in our opinion, erred in law and exceeded its
jurisdiction in proceeding beyond the grounds agitated by the
Respondent in its appeal.
DID THE ARBITRATORS MISCONDUCTED THEMSELVES
BY NOT FILING THE ARBITRATION AWARD WITHIN
TIME?
Civil Appal No.315 of 2022.
13
11. Section 39(vi) of the Act, 1940 provides that an
order shall be appealable which either sets aside or does not
set aside an Arbitration Award. The grounds under which an
Arbitration Award may be set aside are enumerated in Section
30 of the Act, 1940 which reads as follows: -
1130. Grounds for setting aside award. An award shall
not be set aside except on one or more of the following
grounds, namely: -
(a) that an arbitrator or umpire has misconducted himself or
the proceedings;
(b)that an award has been made after the issue of an order
by the Court superseding the arbitration or after arbitration
proceedings have become invalid under section 35;
(c) that an award has been improperly procured or is
otherwise invalid'
It has been argued by the Respondents that the
Arbitrators misconducted themselves within the meaning of
Section 30(a) by not filing the Arbitration Award within time.
It is further alleged in the grounds of the RFA that the
Arbitrators were close friends of the Appellant, they did not
provide a proper hearing to the Respondents and they did not
properly scrutinize the record before rendering the Award.
The learned High Court has, however, only given a finding on
the fact that the Arbitrators misconducted themselves only to
the extent of not filing the Arbitration Award within time. The
heart of the Respondent's argument, therefore, is, that the
alleged misconduct of not filing the Arbitration Award within
time was so glaring that, if it is overlooked, it would lead to a
miscarriage of justice. We, therefore, deem it appropriate to
examine the term "misconduct" on part of the Arbitrator. The
term misconduct was interpreted in the judgment titled
Gernis International (Pvt.) Ltd v. Aeroflot Russian
ciiñl Appeal No315 of 2022.
14
International Airlines 12018 SCMR 662 Supreme _Q0U41
wherein, this Court held as follows:
"(27) Misconduct is of two types: legal misconduct' and
moral misconduct. Legal misconduct means misconduct in
the judicial sense of the word, for example, some honest,
though erroneous, breach of duty causing miscarriage of
justice; failure to perform the essential duties which are cast
on an arbitrator; and any irregularity of action which is not
consistent with general principles of equity and good
conscience. Regarding moral misconduct; it is essential that
there must be lack of good faith, and the arbitrator must be
shown to he neither disinterested nor impartial, and proved
to have acted without scrupulous regard for the ends of
justice."
The term "misconduct" was further interpreted in
the case of Pakistan Steel Mills Corporation. Karachi v.
Messrs Mustafa Sons (Put.) Ltd. Karachi (PLD 2003
Supreme Court 301) in which, the Court held as follows: -
"The word 'misconduct" with reference to arbitration
proceedings, is interpreted in the sense in which it is used in
English Law and it is not akin to fraud, but it means neglect
of duties and responsibilities of the Arbitrator." (Underlining
is ours)
This Court in the case of GernIs International
(supra) further held that the misconduct alleged by the
parties must be prima fade apparent on the surface of the
Arbitration Award and, that the Court cannot sit as a Court of
Appeal on the award given by the Arbitrator(s) and substitute
its view for the one taken by the Arbitrator(s). The aforenoted
view of this Court finds support from the case of A.
Qutubuddin Khan v. CHEC Mill Wala Dredging Co. Put.
Ltd. 12014 SCMR 1268) As such, the Court cannot
reappraise the evidence relied upon by the Arbitrator(s) and
engage in a roving inquiry to discover infirmities in the
Arbitration Award. The illegality or infirmity in the Arbitration
Award must be apparent on the lace of the Award. Reliance in
this respect is placed on Mian Corporation through
IT
0ft4L Appeal No.315 of 2022.
15
Managing Partner v. Messrs Lever Brothers of Pakistan
Ltd (PLD 2006 Supreme Court 169) and National
Construction Co. a WAPDA (1987 PLD 461 Supreme
Court). The Court is required to examine the Arbitration
Award filed in Court to see whether there was an infirmity
within the Award itself. We have gone through the judgment
of the Trial Court dated 19.03.2016. The judgment of the Trial
Court, making the Award Rule of Court is comprehensive and
touches upon all aspects of the case. The learned Trial Court
in paragraph 12 of its judgment has held as follows: -
'It is a hard fact that Arbitrator being final judge on question
of law and fact, his decision is entitled to utmost respect and
weight unless misconduct was alleged and proved against
him to the satisfaction of the court. Although the objection on
Award was filed beyond the period of limitation, but the
objection so filed if gone through, no allegation of misconduct
is either alleged or proved. "(Underlining is Ours)
It is clear and obvious to us that the Trial Court
not only considered the Award but also examined the
objections raised by the Respondents. The Trial Court in
paragraph 13 of its judgment has minutely examined the
record and concluded that a total of fourteen meetings were
held by the Arbitrators in which the controversy was sought
to be resolved. The Trial Court, therefore, judicially
scrutinized the record by applying its mind to the facts and
circumstances of the case. As such, the findings of the High
Court that the Trial Court did not act properly, are repelled
and held to be factually and legally unsustainable.
12. The learned Counsel for the Appellant has taken
us to the orders of the Trial Court, whereby, the Arbitrators
CiuiIAppeaI No.315 of 2022.
16
were given extensions in time to file the Arbitration Award
vide orders dated 14.03.2005 and 15.07.2005. It is apparent
from the orders of the Trial Court that the parties i.e.,
Appellant and Respondents were present at the time when the
Arbitrators sought extensions of time to file the Award. There
is nothing on the record to show that the Respondent's
Counsel objected to any extension in filing the Award. As
such, the plea that the Arbitrators committed misconduct and
should have filed the Award within four months is totally
misconceived. If the Respondents were aggrieved by the Trial
Court's orders dated 14.03.2005 and 15.07.2005, they ought
to have challenged the same. In absence of any appeal against
the aforenoted orders, the said orders attained finality.
13. The record indicates and it is an admitted position
that the Respondents participated in the arbitration
proceedings despite extensions without raising an objection
whatsoever. It is categorically mentioned in the minutes of the
arbitration proceedings that the Respondents "expressed their
confidence" in the nominated Arbitrators i.e., Mr Imdad
Hussain and Mr Inamullah Khan. As such, the argument that
the Arbitrators were "close friends" of the Appellant is
baseless and unsubstantiated. As such, when the
Respondents were present before the Trial Court and did not
raise the objections to extension of time and voluntarily
participated in the proceedings without raising any objection
at any stage, they could not be allowed to change their stance
at the appellate stage having practically waved their right to
object to extension of time. If they were aggrieved of the
Civil Appeal No.315 of 2022.
17
conduct of the Arbitrators, they could have filed an
application under Section 11 of the Act, 1940 which
empowers the Court to remove an arbitrator if the conditions
in Section 11 are fulfilled. No such application is available on
the record.
14. It is pertinent to mention that the time limit of
filing an Arbitration Award within four months is not
absolute. Section 28 of the Act, 1940 clearly provides that
said time limit can be enlarged. As such, the non-filing of an
Award within four months does not ipso facto make the
Award invalid. For ready reference, Section 28 of the Act,
1940 is reproduced as under: -
"28. Power to Court only to enlarge time for making
award. (1) The Court may, if it thinks fit, whether the time
for making the award has expired or not and whether the
award has been made or not, enlarge from time to time the
time for making the award.
(2) Any provisions in an arbitration agreement whereby the
arbitrators or umpire may, except with the consent of all the
parties to the agreement, enlarge the time for making the
award, shall be void and of no effect."
We have already found that the time limit
mentioned in Section 28 ibid was enlarged by orders of the
Trial Court in presence of the parties and even otherwise the
Respondents by willingly and voluntarily participating in the
proceedings held during extended periods had waved their
right to object, the fact that the Award was filed after expired
the four-month period was not fatal and the finding of the
High Court with all due respect has been found by us to be
legally and factually erroneous and unsustainable. Reliance
in this respect is placed on the case of WAPDA v. Khanzada
Cluil Appeal No 315 of 2022.
IS
Muhammad Abdul Hague Khan Ehattak & Co (PLD 1990
SC 359)
WHETHER NOTICE UNDER SECTION 14 OF THE
ARBITRATION ACT, 1940 WAS SERVED BY THE
ARBITRATORS & WERE THE ARBITRATORS REQUIRED
TO FILE THE ARBITRATION AWARD IN COURT WITHIN
90 DAYS AS PER ARTICLE 178 OF THE LIMITATION ACT,
1908?
The record indicates that the Arbitrators had duly
served notice of signing and making of the Award to the
Respondents in substantial compliance of the provisions of
Section 14 of the Arbitration Act, 1940. There is clear
misreading/non-reading of the record on the part of the High
Court in holding that such notice was not served by the
Arbitrators. Notice in question which bears the date of signing
by the Arbitrators on 14.09.2005 is available on the record.
Such notice was filed in Court with the Award as is apparent
from the notice itself which bears the signatures of the Trial
Court on the date when the Award was filed in Court on
1509.2005. Even otherwise, if an Award is filed by the
Arbitrator in Court in the presence of the parties or their
authorized agents then the requirements of Section 14 qua
serving of notice of signing and making of the Award are
substantially met. This is on the basis of the principle of the
issuance of notice of making and signing of the Award under
Section 14 is connected with the start of period of limitation
as prescribed in Article 158 of the First Schedule of the
Limitation Act, 1908 to file objections on the Award. The
rationale is that the parties must know that the Award has
been filed in Court and if the Award is filed in Court in the
presence of parties or their authorized representatives then in
Cvil Appeal No315 of 2022.
19
that case strict compliance of serving of notice is not
mandatory. Reference in this regard may be made to Tribal
Friends Co. Province of Balochistan 12002 SCMR 1903),
Pakistan through General Manager Pakistan Railways (PLD
1990 Sc 800), Ashfap Ali Oureshi v. Municipal Corporation
Multan (PLD 1985 Sc 597) and Sheikh Mehboob Alam v.
Sheikh Mumtaz Ahmed (PLD 1956 (WP) Lahore 276).
15. As far as the question of limitation is concerned,
Article 178 of the Limitation Act, 1908 provides a 90-day
limitation period from "the date of service of notice of the
making of the award" to file an application for the Arbitration
Award to be made Rule of Court. This provision applies to
situations where a party to arbitration receives notice from
the Arbitrator(s) to the effect that an Arbitration Award has
been made. The parties then either request the Arbitrator(s) to
file the Arbitration Award in Court or, file an application
before the Court to direct the Arbitrator(s) to file the
Arbitration Award in Court so that it may be made a Rule of
Court. As such, Article 178 of the Limitation Act, 1908
applies to parties to an arbitration agreement who have been
given notice of making of the award and not to the
Arbitrator(s). The Arbitrator(s) must be requested by the
parties to file the Arbitration Award or must be given a
direction by the Court to do so. The said view is further
provided in Section 14 of the Act, 1940 which reads as
under:-
j4• Award to be signed and filed. (1) When the arbitrators or
umpire have made their award, thew shall si gn it and shall give
notice in writing to the parties of the making and signing thereof
Civil Appeai No.315 of 2022.
20
and of the amount of fees and charges payable in respect of the
arbitration and award.
(2) The arbitrators or umpire shall, at the request of any partg to
the arbitration agreement or any person claiming under such paTti,
or if so directed bit Court and upon payment of the fees and
charges due in respect of the arbitration and award and of the
costs and charges of filing the award, cause the award or signed
copy of it, together with any depositions and documents which mall
have been taken and proved before them, to be filed in Court, and
the Court shall thereupon give notice to the parties of the filing of
the award.
(3) Where the arbitrators or umpire state a special case under
clause (b) of section 13, the Court, after giving notice to the parties
and hearing them, shall pronounce its opinion thereon and such
opinion shall be added to, and shall form part of the award?
(Underlining is ours)
This view finds reliance from the case of Inagat
IJllah Khan v. Obaidullah Khan and Others 11999 SCMR
2 702) in which, this Court held as follows: -
X6 Moreover, in view of the special Article 178 of the Limitation Act
which governs an application for filing in Court of an award to be
made rule of the Court under the Arbitration Act the question of
applying the residuary Article 181 of the Limitation Act would not
arise. In Article 178 the period is 90 days from the date of service
of notice of the making of the award as rule of the Court and in the
circumstances of this case the said Article would apply. The
judgments referred to by the learned counsel in his support are
distinguishable as PLD 1972 SC 123 deals with a case under
section 20 of the Arbitration Act, whereas present is the case
covered by section 14 of the Act and both the sections regulate
entirely distinct situations. The judgment reported as AIR 1941
Peshawar 3 appears to have dealt with the original Article 178
which then applied only to the application under the Civil
Procedure Code and not to the amended Article 178 which
specially covers section 14 of the Arbitration Act. Even otherwise,
this point could lose significance and nothing would turn on it
because in the latter part of this judgment we are going to hold that
the arbitrators bu themselves were not com petent to file the award
in Court as such filing of an award was not envisaged under
section 14 of the Act because the arbitrators had neither been
requested by any party to the arbitration agreement to file the
award in Court nor had been so directed bu the Court.'
(Underlining is Ours)
17. It has been argued by the learned Counsel for the
Respondents that the Arbitrators did not serve a notice on the
Respondents under Section 14 of the Act, 1940. The learned
High Court has held that there is nothing on the record to the
effect that the said notice was served before the Arbitration
Award was signed. We are unable to agree with the High
Court. It is pertinent to mention that the parties were present
before the Trial Court when the Arbitration Award was filed in
Cft4I Appeal No.315 of 2022.
21
Court, as such, they had knowledge of the proceedings and
had notice of the same. Substantial compliance of Section 14
of the Act, 1940 was made. Since the parties were present in
Court when the Arbitration Award was filed, issuance of
formal notice under Section 14 of the Act, 1940 was a mere
technicality which could not vitiate the proceedings. The
purpose of a notice is to inter alia make the parties aware of
the proceedings before a Court so that they may participate
or, as in the present case, may file objections, if any, within
the prescribed time provided by law.
18. It is a settled principle of the law that the law
favours the vigilant and not the indolent. If the Respondents
were present before the Trial Court, they cannot object on the
ground that formal notice to them was not issued. Reliance in
this respect is placed on Ash fag All Oureshi v. Municipal
Corporation, Multan and another (1984 SCMR 597) in
which the Court held as follows: -
"9. Apparently, the prevalent view is that as the provision of
the law is meant to enable the parties to know that the
award has been filed in Court so that they may file their
objections, if any, within the time prescribed, a - formal
would be a mere technicality. Even otherwise, an objection
on this score had neither been taken before the Trial Court
nor in the memorandum of appeal before the High Court and
was, therefore, only an afterthought not entitled to serious
consideration." (Underlining is ours)
The Respondents have argued that the Court
should have issued a formal notice in terms of Section 14 of
the Act, 1940. We are unable to agree with this argument. In
Civil Appeal No.315 of 2022.
22
ordinary circumstances, a Court of law is required to issue
notice to the parties so that they may be able to participate in
the proceedings. However, if the parties were present in Court
and were aware that the award had been signed and filed. If
at all a formal notice was not issued it was inconsequential
and would in any event have been an exercise in futility. In
such circumstances, the doctrine of substantial compliance
would apply which provides that the procedural fault in
complying strictly with a provision of the law is so minor that
it does not have a bearing on the essence of the dispute and
the object sought to be achieved. The applicability of the
doctrine of substantial compliance depends on the facts and
circumstances of a dispute. It is for the Court to determine
whether the object, purpose, and intent of a statutory
prerequisite have been fulfilled and, formal compliance would
be unimportant. The question of substantial compliance arose
in the case of The State through Regional Director ANt v.
Imam Bakhsh (2018 SCM]? 2039) wherein, this Court held
as follows: -
"To distinguish where the directions of the legislature are
imperative and where they are directory, the real question is
whether a thing has been ordered by the legislature to be
done and what is the consequence, if it is not done. Some
rules are vital and go to the root of the matter) they cannot be
broken; others are only directory and a breach of them can
be overlooked provided there is substantial compliance. The
duty of the court is to try to unravel the real intention of the
legislature. This exercise entails carefully attending to the
scheme of the Act and then highlighting the provisions that
actually embody the real purpose and object of the Act. A
provision in a statute is mandatory if the omission to follow it
renders the proceedings to which it relates illegal and void,
while a provision is directory if its observance is not
necessary to the validity of the proceedings. Thus, some
parts of a statute may be mandatory whilst others may be
directory. It can even be the case that a certain portion of a
provision, obligating something to be done, is mandatory in
nature whilst another part of the same provision, is directory,
owing to the guiding legislative intent behind it. Even parts of
CÜ4I Appeal No.315 of 2022
23
a single provision or rule may be mandatory or directory. "In
each case one must look to the subject matter and consider
the importance of the provision disregarded and the relation
of that provision to the general object intended to be
secured. Crawford opined that "as a general rule, fthose
provisions that] relate to the essence of the thing to be
performed or to matters of substance, are mandatory, and
those which do not relate to the essence and whose
compliance is merely of convenience rather than of
substance, are directory.' In another context, whether a
statute or rule be termed mandatory or directory would
depend upon larger public interest, nicely balanced with the
precious right of the common man. According to Maxwell,
"Where the prescription of statute relates to the performance
of a public duty and where the invalidation of acts done in
neglect of them would work serious general inconvenience or
injustice to persons who have no control over those entrusted
with the duty without promoting the essential aims of the
legislature, such prescriptions seem to be generally
understood as mere instructions for the guidance and
government of those on whom the duty is imposed or in other
words as directory only. The neglect of them may be penal
indeed, but it does not affect the validity of the act done in
disregard of them. Our Court has held while determining the
status of a mandatory or directory provision that 'perhaps
the cleverest indicator is the object and purpose of the statute
and the provision in question.' And to see the 'legislative
intent as revealed by the examination of the whole Act."
19. The legislative intent of Section 14 of the Act, 1940
can be ascertained from a reading of the provision which is
that parties should be aware of the filing of an Award before
the Court through their participation in the proceedings. This
is because the parties either request the arbitrator to file an
Award in Court or, seek a direction from the Court in this
respect to be given to an arbitrator. In the present
controversy, since the parties were aware of the date when
the Award was going to be filed and were present on such
date, strict compliance with Section 14 was not required and,
the argument of the Counsel for the Respondents in this
respect is misconceived. The High Court of Peshawar
examined a similar situation in Labab Gut a Badshah Gui
(PLD 1952 Peshawar 23) wherein, it was held as follows:-
"I do not think the failure by the arbitrators to give a notice
under section 14 of the Act i5 such an omission which would
invalidate the award. It should be noticed that an award
Civil Appeal No.315 of 2022.
24
cannot be set aside except on one or more of the grounds
given in section 30 of the Act. They are, (a) that an arbitrator
or umpire has mis-conducted himself or the proceedings, (/4
that an award has been made after the issue of an order by
the Court superseding the arbitration or after arbitration
proceedings have become invalid under section 35, and (c)
that an award has been improperly procured or is otherwise
invalid. The omission to give notice cannot be covered by (a)
or (/4, and this is even conceded by the learned counsel for
the appellant. He, however, wishes to bring it under
otherwise invalid" mentioned in (c). By no stretch of
imagination can it be said that the omission to give the notice
can invalidate the award, and I consequently hold that it is
not covered by "otherwise invalid' too. In any case, I do not
think that it is the intention of the law that notice in order to
be valid should be given by all the arbitrators. If a notice is
given by one, arbitrator only, it shall be deemed to have been
given by all, unless the contrary is proved, and it will thus be
a perfectly good notice."
20.
The Arbitrators were summoned before the Trial
Court and their statements were recorded, who had tendered
the Award in evidence as Ex.CW. 1 / 1 to 1/4. The Respondents
neither raised any objection to the filing of the Award nor was
the question of limitation raised. In any event there was, in
our opinion, no question of operation of law of limitation
involved in the facts and circumstances of this case.
WAS THE FACT THAT THE RESPONDENTS DID NOT FILE
THEIR OBJECTIONS TO THE ARBITRATION AWARD
WITHIN TIME, FATAL TO THE RESPONDENT'S CASE?
21.
The learned High Court has held that even though
the Respondent's objections were filed beyond the prescribed
period of limitation of 30 days, nonetheless, the Trial Court
was required to examine the Award to do complete justice
and, by not doing so, the Trial Court committed illegality. It is
manifestly clear from the judgment of the Trial Court that it
did not merely dismiss the objections of the Respondents as
barred by time without examining the Award. The Trial
Court's judgment in paragraph 10 specifically notes that the
Respondents were given a chance to cross-examine the
Cvil Appeal No.315 of 2022
25
Arbitrators who appeared as CW-01 and CW-02. The Trial
Court has further held that the Arbitrators remained firm in
their viewpoint. The Trial Court at paragraph 12 categorically
stated as follows:
although the Award was filed beyond the period of
limitation but the objection so filed if gone tbram-gtb no
allegation
of misconduct
is
either alleged
or
proved. "(Underlining is Ours)
A bare perusal of the aforenoted excerpt
establishes that the objections filed by the Respondents were
examined by the Trial Court which also applied its mind to
the contents of the award and thereafter an opinion was
formed that it was appropriate to make it a rule of Court. We
are satisfied that the trial Court fulfilled its duty to examine
the Respondent's objections as well as the award before
making it a rule of Court. As such, the finding of the High
Court to the effect that the Trial Court erred in law in making
the award a rule of Court is unsustainable and against the
record.
22. Even otherwise, it is to be noted that the first
objections filed by the Respondents were barred by 04
months. The prescribed limitation period as provided in the
Limitation Act, 1908 is 30 days from date of notice of filing of
the award to object to an Award being made a rule of Court. A
party must explain each day of delay and, the Court ought to
adjudge whether each day of delay has been sufficiently
explained to the satisfaction of the Court with evidence. If
such discretion has been exercised properly, then, an
appellate Court cannot arbitrarily disregard the reasons so
Civil Appeal Nc.315 of 2022.
26
given by the Trial Court while discounting the reasons
provided by one party in an application for condonation of
delay by the Trial Court unless there is misreading or non-
reading of the record. It is a matter of record that the
Respondents first filed objections on 05.0 1.2006 which were
barred by time and, not in the proper form as admitted by the
Respondents since they sought permission from the Trial
Court during post-remand proceedings on 08.10.20 15 to file
their objections afresh in "proper form". The said application
was dismissed on 07.01.2016. As such, in the facts and
circumstances of the case, the belated objections were fatal to
the Respondent's case because (a) they were filed after a delay
of 04 months (b) they were not in proper form (c) the
application for condonation of delay was rejected (d) the
Respondents were well aware of the filing of the Award in
Court.
WERE THE PROCEEDINGS BEFORE THE TRIAL COURT
ILLEGAL DUE TO THE ABSENCE OF A FORMAL ORDER
UNDER SECTION 34 OF THE ACT, 1940?
24. The High Court has held that the proceedings
carried out by the Trial Court were in violation of Section 34
of the Act, 1940 and, the proceedings in the suit were not
stayed. We are unable to agree with this conclusion. The
parties had mutually agreed to refer their disputes arising out
of their contract to be resolved under the Rules of
Reconciliation and Arbitration of International Chamber of
Commerce (hereinafter referred to as the "ICC Rules"). The
Respondent, however, out rightly argued that the trial Court
lacked jurisdiction. This plea was rejected by the Trial Court
Clvi? Appeal No.315 of 2022.
27
vide order dated 24.07.2004 while relying on the provisions of
the Agreement. The Counsel for the Respondents has been
unable to take us to any document to show that the
Respondents ever challenged the order dated 24,07.2004. It is
essential to point out that the ICC Rules do not divest the
Courts in Pakistan of their jurisdiction. This matter was
decided by this Court in the case of Hitachi Limited and
Another a Ru pall Polyester and others (1998 SCMR
1618) in which, it was held as follows: -
"The legal position obtaining in Pakistan is that the L C. C.
Rules are recognised but they cannot divest the Courts of the
jurisdiction vested in them under the law. In England the
English Courts recognise the I.C.C. Rules and they decline to
exercise discretionary jurisdiction under the English
Arbitration Act in derogation to the I.C.C. Rules not because
of lack of jurisdiction but to ensure that the parties should
adhere to their contractual commitment. It may be pointed
out that it has also been consistently held by the English
Courts that they have the power to pass appropriate order in
a fit case notwithstanding the application of I. C. C. Rules. In
this regard, reference may be made to a recent judgment in
the case of Coppee-Lavalin v. Ken-Ron Chemicals Ltd. (1994)
2 All England Law Reports 449), in which the House of Lords
directed for the deposit of costs of arbitration for the
respondent though the LC. C."
Even otherwise, Article 21(1) of the ICC Rules
provides the following: -
'The parties shall be free to agree upon the rules of law to be
applied by the arbitral tribunal to the merits of the dispute. In
the absence of any such agreement, the arbitral tribunal
shall apply the rules of law which it determines to be
appropriate."
The record shows that the parties decided that the
law of Pakistan would apply to the case at hand. As such, the
intent of the parties is clear insofar as the law governing the
Arbitration proceedings is concerned. The question is whether
the Trial Court performed functions of a faciliatory nature or,
was it required adjudicate on the merits of the case. If the
trial Court facilitated the Arbitration, then, it did not commit
Civil Appecil No.315 of 2022.
28
any illegality. It is clear from the orders of the Trial Court
that it acted in a faciliatory manner. The Trial Court
facilitated the arbitration and did not adjudicate the merits of
the (is. When the Respondents objected to the jurisdiction of
the Trial Court; the Trial Court rejected the objections while
relying upon the Agreement between the parties and,
proceeded to refer the matter to Arbitrators nominated by the
parties as per Section 8 of the Act, 1940. Essentially, the
Court referred the matter to Arbitration nominated/ appointed
by the parties. Nowhere have the Respondents argued that
they had filed a written statement which constituted a step in
the proceedings within the meaning of Section 34 of the Act,
1940. The minutes of the Arbitration Proceedings are
available on the record which show that the Arbitrators
adjudged the merits of the case. As such, proceedings in the
suit were stayed for intents and purposes with express or
implied consent of the parties who consciously, willingly and
voluntarily participated in the proceedings throughout. At
this stage, the respondents cannot be heard to say that
certain technical and procedural formalities were not followed
stricto sensu. While they never raised any objections to the
same during the arbitration proceedings and even during
multiple rounds of litigation in Courts.
25. The Respondent took an objection to the
proceedings as an afterthought when the Award was made
Rule of Court, which cannot be permitted. It is worth
mentioning that when parties opt to settle their disputes out
of Court, they must be facilitated and, they ought to live up to
IT
Civil Appeal No3150f 2022.
29
the terms that they agree upon in Eckhartd & Company v.
Muhammad Ilanif 11993 PLD 42 Supreme Court) in which
Ajmal Mian, J (as he then was) opined as follows:-
"I may observe that while dealing with an application under
section 34 of the Arbitration Act in relation to a foreign
arbitration clause like the one in issue, the Courts approach
should be dynamic and it should bear in mind that unless
there are some compelling reasons, such an arbitration
clause should be honoured as generally the other party to
such an arbitration clause is a foreign party. With the
development and growth of International Trade and
Commerce and due to modernization of
Communication/ Transport systems in the world, the
contracts containing such an arbitration clause are very
common nowadays. The title that the Court should not lightly
release the parties from their bargain ) that follows from the
sanctity which the Court attaches to contracts, must be
applied with more vigour to a contract containing a foreign
arbitration clause. We should not overlook the fact that any
breach of a term of such a contract to which a foreign
company or person is a party, will- tarnish the image of
Pakistan in the comity of nations. A ground which could be in
contemplation of party at the time of entering into the
contract as a prudent man of business, cannot furnish basis
for refusal to stay the suit under section 34 of the Act. So the
ground like, that it would be difficult to carry the voluminous
evidence or numerous witnesses to a foreign country for
arbitration proceedings or that it would be too expensive or
that the subject matter of the contract is in Pakistan or that
the breach of the contract has taken place in Pakistan, in my
view, cannot be a sound ground for refusal to stay a suit
filed in Pakistan in breach of aforeign arbitration clause
contained in contract of the nature referred to hereinabove. In
order to deprive a foreign party to have arbitration in a
foreign country in the manner provided for in the contract, the
Court should come to the conclusion that the enforcement of
such an arbitration clause would be unconscionable or would
amount to forcing the plaintiff to honour a different contract,
which was not in contemplation of the parties, and which
could not have been in their contemplation as a prudent man
of business.
The crux of the matter is that once a party has
agreed to arbitration, it should be the Court's responsibility to
either facilitate the said party in the arbitration while staying
within the confines of the Act, 1940 or, to compel the party to
abide by the terms and conditions of a contract. The purpose
of arbitration is defeated if a party refuses to abide by the
agreed mode of dispute resolution. This trend must not be
encouraged.
CirAl AppeoNo.3I5of 2022.
30
I
26.
The High Court has proceeded on erroneous
grounds and has misapplied the applicable law to the facts
and circumstances of the instant controversy, which warrants
interference of this Court. We have been unable to agree with
the conclusions reached by the High Court in the Impugned
Judgment. Accordingly, the Impugned Judgement is found to
be unsustainable in law as well as facts and is therefore set
aside. \1IS.A
IA
27.
Consequently, the judgment and decree dated
19.03.20 16 whereby the Award was made Rule of Court is
restored and affirmed and the
arbitrators is made Rule of Court.
ISLAMABAD, THE
20th of June, 2022.
Hafs Ishtiaq/*
tApproved ForRQ4rttg'
| {
"id": "C.A.315_2022.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE MIAN SAQIB NISAR
MR. JUSTICE MUSHIR ALAM
MR. JUSTICE MAQBOOL BAQAR
CIVIL APPEAL NO.319 OF 2014
(Against the judgment dated 5.12.2013 of the
Election Tribunal, Rawalpindi passed in
E.P.No.257/2013/RWP/12/2013)
Hina Manzoor
…Appellant(s)
VERSUS
Malik Ibrar Ahmed, etc.
…Respondent(s)
For the appellant(s):
Mr. Muhammad Munir Paracha, ASC
For respondent No.1:
Mr. M. Rafique Rajwana, ASC
Date of hearing:
28.04.2015
…
ORDER
MIAN SAQIB NISAR, J.- Appellant and respondent No.1
contested the elections for NA-54, Rawalpindi. The appellant being the
runner up filed an election petition against the said respondent (returned
candidate) before the Election Tribunal on the ground that the
verification on the election petition has not been attested by the Oath
Commissioner. Learned counsel for the appellant has drawn our
attention to page 27 of the paper-book that the election petition is not
attested by the Oath Commissioner, however, his argument is that this
is not the mandate of the provisions of Section 139 of the CPC, rather
the requirement of attestation is only confined to the affidavit as per
Order 19 of the CPC. In addition to the above, it is submitted that an
amended election petition was filed on 8.10.2013 which was duly
attested per the law, but the learned Tribunal has discarded this on
C.A.319 of 2014
-: 2 :-
the ground that the attestation through the amended petition is
beyond the period of limitation prescribed for filing of the election
petition and this according to the learned counsel is not a valid reason
for summary rejection of the election petition.
2.
Heard. As far as the first argument is concerned, there are
plethora of judgments starting with Engr. Iqbal Zafar Jhagra and
others Vs. Khalil-ur-Rehman and 4 others (2000 SCMR 250),
Sardarzada Zafar Abbas and others Vs. Syed Hassan Murtaza and
others (PLD 2005 SC 600), Malik Umar Aslam Vs. Sumaira Malik
and others (PLD 2007 SC 362), Maulvi Abdul Qadir and others Vs.
Maulvi Abdul Wassy and others (2010 SCMR 1877) and Zia-ur-
Rehman Vs. Syed Ahmed Hussain and others (2014 SCMR 1015)
which require that an election petition has to be attested by the Oath
Commissioner and this is mandatory, otherwise it should be dismissed
as per the provisions of Section 63 of the Representation of People Act,
1976 read with Section 55(3). We are not inclined to agree with the
learned counsel that the law laid down in the above-noted judgments
are/is incorrect exposition or enunciation and, therefore, such
judgments must be revisited, rather to the contrary appropriate valid
and apt reasons have been given by this Court in the aforesaid cases
to reach to the conclusion that the verification requires attestation by
the Oath Commissioner is imperative and mandatory in law. As
regards the question that the amended petition was duly attested and,
therefore, it is this petition which should have been taken into
consideration and account, suffice it to say that per the law laid down
in Malik Umar Aslam Vs. Sumaira Malik and others (PLD 2007 SC
362), the amended election petition even if was attested by the Oath
Commissioner but by the time, the time for the petition having lapsed
C.A.319 of 2014
-: 3 :-
could not be considered to be a valid institution for the purposes of
condoning the incurable defect of non-attestation of the election
petition. Both the arguments have no merit, therefore, this appeal is
dismissed.
JUDGE
JUDGE
Islamabad, the
JUDGE
28th April, 2015
Not Approved For Reporting
Waqas Naseer/*
| {
"id": "C.A.319_2014.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE ANWAR ZAHEER JAMALI, HCJ
MR. JUSTICE SH. AZMAT SAEED
MR. JUSTICE FAISAL ARAB
CIVIL APPEAL NO. 321-L OF 2014
(On appeal against the judgment dated 30.9.2014
passed by the Election Tribunal, Multan in Election
Petition No. 179/2013 ECP, 13/2013 ETM)
Ch. Muhammad Yousaf Kaselia
… Appellant
VERSUS
Peer Ghulam Mohy-ud-Din Chishti, etc
…Respondents
For the Appellant:
Mr. Muhammad Shahzad Shaukat, ASC
Barrister Jehanzeb Raheem, ASC
For the Respondent (1): Syed Najmul Hassan Kazmi, Sr. ASC
Mr. M.S. Khattak, AOR.
For Respondents (2-4): Ex-parte
Date of Hearing:
16.05.2016
JUDGMENT
FAISAL ARAB, J. - In the General Elections that were
held on 11.5.2013, the appellant and the respondent No. 1 were the
main
contesting
candidates
from
the
Provincial
Assembly
constituency No. PP-232 Vehari-I. The appellant secured 50350 votes
and was declared returned candidate, whereas the respondent No. 1
was runner-up who secured 43751 votes. The respondent No. 1 filed
Election Petition before the Election Tribunal, Multan under Section
52 of the Representation of the People Act, 1976 alleging corrupt and
illegal practices on the part of the appellant. It was alleged that the
Civil Appeal No. 321-L- of 2014
2
appellant won the elections by influencing the election staff.
Additionally, it was also alleged that in his nomination form, the
appellant submitted false statements of election campaign expenses
as well as of his assets and liabilities. The Election Tribunal vide
impugned judgment accepted the election petition after holding that
the appellant had filed false statements of election campaign
expenses and did not disclose certain liabilities. The election of the
appellant was declared void and fresh election in the constituency
was ordered. Aggrieved by such decision the present appeal has been
filed.
2.
In his nomination form, the appellant disclosed that he
owns a business, which is being run in the name of ‘Younas Brothers
Cotton Ginning and Oil Factory’ and showed his investment therein
to the extent of 6.3 million rupees. In the nomination form under
the item where liabilities of bank loans were to be stated, no
disclosure was made. It was only in the evidence it surfaced that the
appellant had mortgaged his property to obtain loan for the running
of his business. An officer of the bank from which loan was obtained
appeared as the appellant’s witness. He stated that upto 30.6.2013
financial facility to the tune of 70 million rupees was availed from the
bank by Younas Brothers Cotton Ginning and Oil Factory. From this,
it is clearly evident that a financial liability of 70 million rupees was
incurred and secured by creating mortgage on immovable property
owned by the appellant. Admittedly, the appellant was one of the
signatories to the mortgage deed but he failed to disclose this liability
incurred upon himself in his nomination form.
Civil Appeal No. 321-L- of 2014
3
3.
Learned counsel for the appellant argued that the loan
that was obtained from the bank for the joint family business had not
become due for payment on 30.06.2012, therefore, the provisions of
Section 12 (f) of the Representation of the People Act, 1976, which
require a candidate to file statement of his assets and liabilities and
those of his spouse and dependents are to be read with the
provisions of Section 12(c) of the said Act which requires submission
of a declaration that no loan for an amount of two million rupees or
more, obtained from any bank, financial institution, cooperative
society or corporate body in his own name or in the name of his
spouse or any of his dependents, or any business concern mainly
owned by him or the aforesaid, remains unpaid for more than one
year from the due date, or that he has got such loan written off. He
submitted that in the present case, firstly, the loan of 70 million was
not even due on the requisite date and secondly the appellant holds
only 1/8th share in the said business so it was not mainly owned by
the appellant, therefore penal consequence for such non-disclosure
ought not to have followed.
4.
As to the non-disclosure of election campaign expenses,
learned counsel explained that certain expenses of election meetings
are borne by friends and the people of the area who invite the
candidate and it is not within the domain of the candidate to account
for it. He submitted that the Election Tribunal non-seated the
appellant after finding an expenditure of only Rs.50,000/- in excess
of the permissible limited prescribed under the election laws which
being a very harsh decision is liable to be set-aside on that score.
Civil Appeal No. 321-L- of 2014
4
5.
It is of utmost importance that a contesting candidate
must disclose the assets that he owns and the liabilities that he owes
in his nomination form. The disclosure of liabilities is more important
that disclosure of assets. It is important for the reason that while
holding public office, in case the liability incurred prior to the election
is liquidated, he could be called upon to explain the source from
which the liability was liquidated; that is, whether the same was
liquidated from his personal sources of income or that he had
misused the authority of the public office in any manner that
contributed to the liquidation of the liability. Therefore, non-
disclosure of any liability is to be met with penal action in the same
manner as non-disclosure of any asset. We are not impressed by the
argument of the appellant’s counsel that provisions of sub-section (f)
of Section 12 of the Representation of the People Act, 1976 are to be
read with sub-section (c) of section 12 of the said Act. Sub-section (c)
of Section 12 speaks about disclosures, either of any write off or of
default that remains unpaid for more than a year, of any financial
obligation towards a bank, financial institution, co-operative society
or corporate body whereas sub-section (f) speaks about disclosure of
assets and liabilities. A financial liability cannot be equated with
default committed with regard to any financial obligation. A financial
liability is incurred the moment an obligation is created to discharge
the same, which by efflux of time either has already become due or is
to fall due sometime in future. Therefore, irrespective of any default
relating to a financial obligation, liability gets created the moment a
person takes upon himself the obligation to settle the same in future.
In the present case, a financial obligation of 70 million rupees
towards a bank did exist at the time of filing of the nomination form
Civil Appeal No. 321-L- of 2014
5
which ought to have been disclosed by the appellant irrespective of
the fact that the same had not become due but he failed to do so,
thereby incurring the penal consequences of non-disclosure.
6.
As to the excessive election campaign expenses, the same
being only to the extent of Rs.30,500/- over and above the
permissible limit, which being not a significant amount, the same
ought not to have been made basis for declaring appellant’s election
as void.
7.
We are, therefore, of the view that the Election Tribunal
rightly non-seated the appellant on account of his failure to disclose
in the nomination form his financial obligation of 70 million rupees
which he secured by executing a mortgage deed.
8.
This appeal was dismissed vide short order dated
16.05.2016 and these are the reasons for the same.
CHIEF JUSTICE
JUDGE
JUDGE
Islamabad, the
16th of May, 2016
Approved For Reporting
Khurram
Civil Appeal No. 321-L- of 2014
6
Reproduction
12. Nomination for election.— (2) Every nomination shall be made by a
separate nomination paper in the prescribed form which shall be signed
both by the proposer and the seconder and shall, on solemn affirmation
made and signed by the candidate, accompany—
(a)
a declaration that he has consented to the nomination and
that he fulfils the qualifications specified in Article 62 and is
not subject to any of the disqualifications specified in Article
63 or any other law for the time being in force for being elected
as a member;
(b)
Omitted
(c)
a declaration that no loan for an amount of two million rupees
or more, obtained from any bank, financial institution,
cooperative society or corporate body in his own name or in
the name of his spouse or any of his dependents, or any
business concern mainly owned by him or the aforesaid,
stands unpaid for more than one year from the due date, or
has got such loan written off;
(d)
a declaration that he, his spouse or any of his dependents or a
business concern mainly owned by him or the aforesaid, is not
in default in payment of government dues or utility charges,
including telephone, electricity, gas and water charges of an
amount in excess of ten thousand rupees, for over six months,
at the time of filing of nomination papers;
(e)
a
statement
specifying
his
educational
qualifications,
occupation, National Identity Card number and National Tax
Number, if any, alongwith attested copies thereof; and
(f)
a statement of his assets and liabilities and those of his
spouse and dependents on the prescribed form as on the
preceding thirtieth day of June;
48. Definitions.—For the purpose of this Act, “election expenses”
means any expenditure incurred before, during and after an election
or payment made, whether by way of gift, loan, advance, deposit or
otherwise, for the arrangement, conduct or benefit of, or in
connection with or incidental to the election of a candidate, including
the expenditure on account of issuing circulars or publications, but
does not include the deposit made under section 13.
49. Restriction on election expenses.—(1) No person other than
the candidate shall incur any election expenses of such candidate:
Provided that where any person incurs any election expenses on
behalf of such candidate, whether for stationery, postage, telegrams,
advertisement, transport or for any other item whatsoever, such
expenses shall be deemed to be the election expenses incurred by the
candidate himself.
Civil Appeal No. 321-L- of 2014
7
(2) The election expenses of a contesting candidate shall not exceed,
in the case of an election to a seat in the National Assembly, one
million and five hundred thousand rupees and, in the case of an
election to a seat in a Provincial Assembly, one million rupees.
| {
"id": "C.A.321-L_2014.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate jurisdiction)
Present:
Mr. Justice Mushir Alam
Mr. Justice Qazi Faez Isa
Mr. Justice Sajjad Ali Shah
Civil Appeal No. 322 of 2018.
(Against the order dated 4.11.2016 passed by the
Federal Service Tribunal in Appeal No. 161(K)CS/2015)
Chairman, FBR Through Member Administration.
…Appellant (s)
VERSUS
Muhammad Asfandyar Janjua, etc.
…Respondent(s)
For the Appellant (s)
:
Hafiz S. A. Rehman, Sr. ASC
For the Respondent-1
:
In person.
Date of hearing
:
30.05.2018
JUDGMENT
Sajjad Ali Shah, J. Leave was granted by this Court on 6.3.2018 to
examine as to whether “in cases where length of service is provided for promotion, the
time spent in litigation prior to the first appointment of civil servant could be counted
towards such length of service”.
2.
Briefly, the respondent No.1 passed civil services examinations conducted
by the Federal Public Service Commission in the year, 1996. However, he was treated to
be domiciled of Punjab instead of Sindh (Urban) and consequently could not be declared
successful on account of high merit list of Punjab. The respondent in the year 1997
challenged such treatment by filing a Constitutional Petition before the High Court of
Sindh, which was allowed on 29.5.2003 upon his furnishing an undertaking that he would
not claim the seniority. The said order was maintained by this Court by declining leave
vide order dated 15.11.2006. The respondent, on 6.1.2008, was finally allowed to proceed
for training in Sindh Civil Academy from where he passed the mandatory final passing out
examination on 1.9.2009. It also appears to be a matter of record that the respondent from
CA 322 of 2018
2
1996 to 2007 had remained abroad and according to his claim has undertaken various
exams as well as remained on job with world’s best multinational companies. It also
appears to be an admitted position that after requisite training and on completion of five
years mandatory service, the respondent on 6.9.2012 was promoted from BS-17 to BS-18.
The respondent claimed to have been aggrieved when the Departmental Selection Board in
its meeting held on 26.11.2014 did not recommend his name for promotion from BS-18 to
BS-19 for want of 12 years mandatory service in BS-17 and above, which length of service
according to the department, the respondent would complete on 26.8.2019. The respondent
consequently approached the Federal Service Tribunal which through the impugned order
directed the appellant “to give benefit of placement of the appellant with 25th Common,
however, he would be treated at the bottom of the list of that batch and will also be given
the necessary benefits of length of service and his pay will be fixed after allowing the
notional increments all along so that keeps up with his batch mates, but the salary and
allowance for that period would not be disbursed to him”.
3.
Hafiz S. A. Rehman, learned Sr. ASC for the appellant contends that in
compliance of the judgment of this Court, the Secretary Establishment approved creation
of vacancy in Income Tax Group in CE-1996 and its allocation to the respondent against
Sindh (U) quota. He further submits that the respondent was issued offer of appointment
on 22.2.2007 and clause-VII of such appointment letter stipulated that the seniority of the
respondent in the examination group would be determined by the Government after the
final passing out in accordance with Rule VII of the Occupational Groups and Services
(Probation, Training and Seniority) Rules, 1990 and the respondent having accepted such
offer submitted his joining on 27.8.2007 and proceeded on training with 35 Common
Training Program (CTP) on 6.1.2008. The respondent on 1st September, 2009 was notified
to have completed his training along with 35 CTP and was, however, declared to have
successfully completed his probation as 25th CTP. The respondent being short of period of
minimum requirement of five years mandated for promotion from BS-17 to BS-18, was
given BS-18 on ‘acting charge basis’. The respondent completed five years of service in
BS-17 on 12.3.2012 and was thus regularized in BS-18 on 6.9.2012. Per counsel the
respondent’s representation against the seniority list as circulated by the Federal Board of
CA 322 of 2018
3
Revenue (FBR) dated 3.8.2012, claiming inter se seniority along with 25th CTP of Inland
Officers was accepted on 13.9.2012 but such notional seniority could not be a substitute to
the actual length of service of 12 years required for promotion to Grade BS-19 as provided
under the rules. It was further contended that the offer of appointment issued to the
respondent clearly narrates that his seniority would be determined in the examination
group after the final passing out in terms of Rule VII of the Occupational Groups and
Services (Probation, Training and Seniority) Rules, 1990 which provides that seniority of
the probationers shall be determined by the Government after final passing out of
examinations. Additionally, per counsel, sub-sections (2) and (3) of Section 7 of the Civil
Servants Act, 1973 provides that seniority on initial appointment to service, cadre or post
is to be determined, as may be prescribed, whereas, rule 2 of the Civil Servants Seniority
Rules, 1993 provides that if two or more persons are recommended in open merit, their
seniority inter se is determined in order of merit as assigned by the selection authority.
However, in case there is only one candidate recommended as in the present case the
seniority is to be counted in terms of sub rule (3) (b) of Rule 2 ibid from the date of his
joining the post after being recommended by the selection authority. It was, therefore,
submitted that the seniority of the respondent is to be reckoned from the date when he
actually joined the service and, therefore, he cannot be given the benefit of the time which
he has spent on litigation prior to his first appointment as a civil servant. In support of his
contention that seniority of a person is to be reckoned from the date of his regular
appointment or absorption in the transferee group, reliance has been placed on the
judgment of this Court in the case of Chairman Federal Board of Revenue versus Iqbal
Hussain Shaikh (2016 SCMR 773). Counsel further in support of his contention that
seniority cannot be determined without reference to continuous appointment in a particular
group, referred the judgment of the Court in the case of Haroon Muhammad Khan and
others versus. Rukhsana Yasmeen and others (2014 SCMR 358) as well as Ghulam
Rasool and others versus Government of Baluchistan and others (2002 PLC (C.S.) 47)
and G.C. Gupta vs. N.K. Pandey (AIR 1988 Supreme Court 654).
4.
On the other hand, the respondent despite his counsel being in attendance,
opted to argue the matter himself and contended that it was the appellant’s fault that he was
CA 322 of 2018
4
treated as Punjab domiciled and was declined his due right and was made to litigate for a
period of ten years, therefore, he cannot be denied the benefit of such promotion, merely
for want of length of service. As to the undertaking submitted for getting into civil service,
it was contended that such undertaking cannot take away the vested right of the petitioner
to be treated alongwith his batch-mates. It was next contended that once he was granted
seniority with his batch-mates by the appellant vide letter dated 12.10.2012 by accepting
his representation, he cannot be denied such seniority for want of actual length of service.
It was lastly contended that he is being discriminated as the appellant-Government has
granted promotion in various cases without actual length of service and in that pursuit the
respondent has referred to the cases of Abdul Qadir, Tariq Pirzada and Faisal Bashir
Memon. He, therefore, prays that similar benefit be also extended to him. In support of his
contentions, the respondent randomly referred the judgments of this Court in the cases of
Miss Zubaida Khatoon versus Mrs. Tehmina Sajid Sheikh and others (2011 SCMR
265), Tariq Aziz ud Din and others in re: Human Rights Cases Nos. 8340, 9504-G,
13936-G, 13635-P & 14306-G to 143309-G of 2009 (2010 SCMR 1301), Abdul Hameed
versus Ministry of Housing and Works, Government of Pakistan, Islamabad through
Secretary and others (PLD 2008 Supreme Court 395), Abid Hussain Sherazi versus
Secretary M/o Industries and Production, Government of Pakistan, Islamabad (2005
SCMR 1742) and Ch. Muhammad Saleem versus Government of Punjab through Chief
Secretary, SGA&I Department, Lahore and 5 others (1994 SCMR 517).
5.
We have heard the learned counsel for the appellant, the respondent, in
person and have perused the record as well as the case law cited at bar.
6.
It is not disputed before us that in terms of in OM No.1/9/80-R-II(A), dated
2.6.1983 issued by the Establishment Division, minimum length of 12 years of service in
grade BS-17 and above is required for promotion in Grade-19, which the petitioner would
acquire on 26.8.2019. Further it is by now settled law that Office Memorandum, issued
under section 25 (2) of Civil Servants Act, 1973 have force of law. [see Azra Riffat Rana
v. Sec. Minister of Housing & Works and others (2008 Supreme Court 470), Fazali
Rehmani versus Chief Minister N.W.F.P. Peshawar and others (PLD 2008 Supreme
CA 322 of 2018
5
Court 769)]. The Office Memorandum No.1/9/80-R.2 dated 2.06.1983 prescribing
minimum length of service for promotion in Grade-18 and above reads as follows:
GOVERNMENT OF PAKISTAN
CABINET SECRETARIAT
ESTABLISHMENT DIVISION
No.1/9/80-R.2
Rawalpindi, the 2nd June 1983
OFFICE MEMORANDUM
Subject: MINIMUM LENGTH OF SERVICE FOR ELIGIBILITY IN PROMOTION OF
OFFICERS
In pursuance of rule 8-A of the Civil Servants (Appointment, Promotion and Transfer)
Rules, 1973 and in supersession of the instructions laid down in the Establishment Division’s
Office Memorandum No.1/9/80-R. II (A), dated the 12th January, 1981, the President is pleased to
decide that the minimum length of service for promotion to various grades shall be as follows: -
For Grade-18
5 years in grade 17
For Grade-19
12 years in grade 17 and above
For Grade-20
17 years in grade 17 and above
For Grade-21
22 years in grade 17 and above
Proved that: -
Where initial appointment of a person not being a person in government service takes
placed in a post in grade 18, 19 or 20, the length of service specified in this office
memorandum shall be reduced by the following periods:
First appointment in
Reduced by
Grade-18
5 years
Grade-19
12 years
Grade-20
17 years
Where initial appointment of a person already in government service takes place, on
recommendations of the Federal Public Service Commission in a post in grade 18, 19 or
20 the length of service specified in this office memorandum shall be reduced by the
periods specified in proviso (i),
iii)
Where first appointment of a person other than a person covered by proviso (ii) was
made to government service in grade 16 or below, one-half of the service in grade 16
and one fourth in grade 15 and below may be counted as service in grade 17 for
computing length of service for the purpose of promotion only.
Sd/xxx
(Mashkoor Ahmad Khan)
Joint Secretary
To the Government of
All Ministries/Divisions
Pakistan
7.
It is also a matter of record that the respondent pursuant to the orders of the
Court was finally issued the offer of appointment on 22.2.2007, Clause-VII whereof reads
as under:
“Your seniority in the Examination Group will be determined by the Government
after the Final Passing Out in accordance with Rule 7 of the Occupational Groups
and Services (Probation, Training & Seniority) Rules, 1990”.
CA 322 of 2018
6
The respondent while accepting such offer letter, proceeded on training at Civil Services
Academy, Lahore on 6.1.2008. After successful completion of training, his probation was
terminated vide notification dated 1.9.2009 and thereafter upon completion of required
length of five years of service in Grade-17 he was promoted on 6.9.2012 to Grade-18. The
respondent in the meanwhile had challenged the seniority list circulated by the appellant in
respect of officers of Inland Revenue Services from 22nd CTP to 30th CTP by filing a
representation and claiming inter se seniority with 25th CTP of 1997. The representation of
the respondent was allowed on 13.11.2012 and he was granted inter se seniority with 25th
CTP of 1997 by placing his name at serial No.13. However, it is yet to be seen whether
such seniority could be allowed and if yes then as to whether such notional seniority at the
time of promotion could entitle the respondent to actual prescribed length of service or that
such notional seniority could be a substitute for actual length of service.
8.
The manner in which the seniority of a civil servant is to be determined and
the way he becomes eligible to the promotion are detailed in Sections 8 and 9 of the Civil
Servants Act, 1973, Rule 2 of the Civil Servants (Seniority) Rules, 1993 and Rule 7 of
“The Occupational Groups and Services (Probation, Training and Seniority) Rules,
1990”. The relevant portions of the said Sections and rule are reproduced for better
understanding the controversy:
“The Civil Servants Act, 1973.
8. Seniority. – (1) For proper administration of a service, cadre or post the
appointing authority shall cause a seniority list of the members for the time
being of such service, cadre or post to be prepared, but nothing herein
contained shall be construed to confer any vested right to a particular seniority
in such service, cadre or post as the case may be.
(2) Subject to the provisions of sub-section (1), the seniority of a civil servant
shall be reckoned in relation to other civil servants belonging to the same
service or cadre whether serving in the same department or office or not, as may
be prescribed.
(3) Seniority on initial appointment to a service, cadre or post shall be
determined as may be prescribed.
(4) Seniority in a post, service or cadre to which a civil servant is promoted
shall take effect from the date of regular appointment to that post:
Provided that civil servants who are selected for promotion to a higher post in
one batch shall, on their promotion to the higher post retain their inter se
seniority as in the lower post.
9. Promotion. – (1) A civil servant possessing such minimum qualifications as
may be prescribed shall be eligible for promotion to a higher post for the time
being reserved under the rules for departmental promotion in the service or
cadre to which he belongs;
CA 322 of 2018
7
….
(2) A post referred to in sub-section (1) may either be a selection post or a non-
selection post to which promotions shall be made as may be prescribed.
(a) in the case of a selection post, on the basis of selection on merit; and
(b) in the case of a non-selection post, on the basis of seniority-cum-
fitness.”
“The Civil Servants (Seniority) Rules, 1993.
2. Seniority on initial appointment.
(1) …
(2) …
(3) If only one candidate is recommended in open advertisement by the
selection authority, he shall count his seniority from –
(a) the date of recommendation by the selection authority, if he was
already holding the same post on ad hoc basis; and
(b) the date of his joining the post after being recommended by the
selection authority, if he was not already holding the same post.”
“Occupational Groups and Services (Probation, Training and Seniority)
Rules, 1990.
7. Seniority. – (1) The seniority of the Probationers shall be determined by the
Government after Final Passing Out Examination.
(highlighted to supply emphasis)
9.
Perusal of sub-section (3) of Section 8 of the Act, 1993 reflects that the
seniority of a civil servant on initial appointment to a service, cadre or post is to be
determined as may be prescribed. Whereas, rule 2 of the Seniority Rules, 1993 framed
under the Act of 1973 prescribes the reckoning of seniority in case of initial appointment
from the date of joining the post. The provision of Sub-section (3) of Section 8 of Act,
1973 if read in conjunction with rule 2(3)(b) of the Seniority Rules, 1993 leaves no doubt
in our minds that the seniority of a civil servant on initial appointment to a service, cadre
or post has to be reckoned from the date of his joining the post after being recommended
by the Selection Authority and not from a date prior thereto. Even Rule 7 of the Seniority
Rules, 1990 empowers the Government to determine the seniority of the probationers after
Final Passing Out Examination. Neither any Section of law or rule framed thereunder was
brought to our notice which could empower the Government in cases of initial appointment
to fix the seniority of a civil servant from a date prior to his induction in civil service upon
successful completion of training. It is to be kept in mind that seniority of a civil servant is
always determined keeping in view his regular appointment to a post and, thereafter the
continuous service in that particular grade.
CA 322 of 2018
8
10.
In the instant case the respondent, consequent to the offer of appointment
letter dated 22.2.2007 joined the Civil Services Academy Lahore on 6.1.2008 and
successfully completed training on 1.9.2009 with 35th CTP. However, he has been given
seniority by treating him one of the 25th CTP. It is also important to note that neither
seniority nor promotion are the vested rights of a civil servant, therefore, neither any
seniority nor any promotion could be claimed or granted without actual length of service
on account of vested rights. The purpose of prescribing a particular length of service for
becoming entitled to be considered for promotion to a higher grade, of course, is not
without logic as the officer who is initially inducted to a particular post needs to actually
serve on the said post in order to gain experience to hold the next higher post and to serve
the public in a befitting manner. It is also important to note that grant of seniority to a civil
servant without actual length of service virtually violates the entire service structure as a
civil servant inducted in Grade-17 by claiming such benefit without any experience be
directly posted in any higher grade, which is neither the intention of the law nor of the equity.
In this context it is pertinent to record that earlier the respondent’s request to waive off the
minimum length of service of five years for promotion to BS-18 was declined on 1.3.2010.
However, the competent authority on 12.3.2012 while exercising powers conferred under
Rule 8-B of the Civil Servant (Appointment, Promotion and Transfer) Rules, 1973
promoted the respondent to BS-18 on “acting charge basis” as he was otherwise eligible
for promotion but, was short of minimum required length of service and later, on
completion of five years of mandatory service he was regularized in BS-18 on 6.9.2009.
11.
We are mindful of the fact that the respondent on account of certain acts or
omissions on the part of the appellant could not maintain his seniority with officers of 25th
CTP with whom he had cleared CSS examination as neither he could complete his
necessary training with officer of 25th CTP nor, he could be inducted in service with them.
However, the remedy to such act or omission at the most could be induction in service by
rectifying the wrong. In the instant case no mala fide on the part of the appellant has been
alleged but, in our opinion, even in cases where such act or omission is found mala fide the
remedy could be anything but not seniority without actual length of service.
CA 322 of 2018
9
12.
It appears to be a case of first impression, as none of the reported judgments
referred to by the parties apply or relevant to the controversy involved in matter in hand,
though principles of seniority are dealt with in cited cases. The case of Chairman, Federal
Board of Revenue (Supra) while dealing with the seniority of deputationist held that the
seniority of a person on deputation was to be reckoned from the date of his regular
appointment-permanent absorption in the transferee group or department and not from the
date of his posting or transfer or any earlier date. Likewise, in the case of Haroon
Muhammad Khan (Supra), this Court held as under:
“(18) Promotion and seniority are definitely not vested rights. Sections 8 and 9 of
the Civil Servants Act, 1973 read together with section 4(1) proviso (b) of the Service
Tribunals Act, 1973 are very clear on that. However, to be considered for promotion
and seniority is a vested right. A civil servant may not be able to file an appeal to get
seniority or promotion but he can definitely file an appeal to get meaningful
consideration for his seniority promotion. In the present case the appellants could
not claim safeguard of their right to seniority and promotion. However, they could
definitely make a prayer that they should have been considered correctly for their
seniority/promotion”.
13.
In the case of Ghulam Rasool (Supra), the services were discontinued in
1973 and, therefore, petitioners could not complete their training till 1977 as they remained
ousted from service until the review board vide order dated 20.10.1978 reinstated them
with the clarification that no back benefits would be given. The petitioners demanded their
seniority retrospectively from the date of their appointment and this Court held that
seniority cannot be determined without reference to continuous appointment in a particular
grade. In the case of G.C. Gupta (Supra), principle of seniority of Temporary Assistant
Engineer was held is to be determined from the date of order of absorption in service, from
which date they become “members of service” and not before.
14.
We have also examined the reported case laws cited by the Respondent, in
none of the cases so referred, minimum length of service, is shown to have been relaxed to
concede promotion to higher grade. Even the precedents cited from jurisdiction of Federal
Service Tribunal are of no help to the respondent. Firstly, same are not binding on this
Court, and secondly same do not support the case of the respondent. In the Case of Zaheer
Ullah Khan (Service Appeal No. 2269(R)CS/201 judgment dated 14.12.1, learned Service
Tribunal while discussing the effect of Rule 8-B of the Civil Servants (Appointment,
Promotion and Transfer) Rules, 1973 which empowers the authority to promote senior
CA 322 of 2018
10
most eligible civil servant who does not possess required length of service directed the
appointment of Zaheer Ullah Khan on “acting charge basis”. The relevant portion of the
said judgment is reproduced as follows:
“7.
The contention of the respondents that the appellant has not prayed for
Acting Charge Appointment from the date when his juniors were promoted, carries
no weight as in para (d) of grounds, he stated that the appellant was denied
promotion due to a non-sustainable reason even on acting charge basis without
taking into consideration … and (d)(v) he further stated that ‘his promotion was
deferred on the basis of non-fulfilling of requirement of minimum length of service
although it was out of question while making promotion on acting charge basis’,
(underlining for emphasis), therefore, the objection is hereby overruled.
8.
For the foregoing reasons, we accept the appeal and direct the respondent-
department to place the case of the appellant before the DPC for consideration for
promotion to BS-19, on acting charge basis, with effect from the date his juniors
were so granted”.
15.
However, in review, it is noted that the same Member without giving any
finding/reasoning on length of service held that “on acting charge basis” was erroneously
mentioned in the judgment and directed the department to consider the case of Zaheer
Ullah Khan for promotion to BS-19. We do not approve the order in review, which appears
to be an intellectual dishonesty as in the judgment the Tribunal after discussing the effect
of Rule 8-B of Rules, 1973 came to the conclusion that condition for having a specified
length of service could be dispensed with while appointing an officer who otherwise is
eligible on “acting charge basis”. There was no reason at all given in the entire judgment
that such length of service could be dispensed with while directing regular promotion. It is
further important to note that the main judgment whereby the department was directed to
consider the case of Zaheer Ullah Khan for promotion of BS-19 “on acting charge basis”
had come up in appeal before this Court in CP No.924 of 2017 and this Court has upheld
the main judgment, therefore, the review even otherwise, could not have been made once
the main judgment was approved by this Court.
16.
As regard the case of Abdul Qadir Sheikh, (Appeal No.141(K)CS/2005
Judgment dated 23.4.2013, the facts of the case are totally different as in the said case
Abdul Qadir Sheikh after passing the CSS Exams joined Pakistan Railways (C&T) Group
as was allocated. However, afterward it was revealed to him that he was entitled to Income
Tax or Account Group and, therefore, his length of service in the Pakistan Railways (C&T)
CA 322 of 2018
11
was taken into account and he was given the benefit accrued to him including his seniority
with his batch-mates.
17.
In the case of Muhammad Tariq Pirzada, Writ Petition No.1306 of 1997
judgment dated 2.10.1998 as well as in Faisal Bashir Memon Appeal No.786(R)CS/2011,
the dispute emanated from change of occupational groups and, therefore, the length of
service was hardly a matter of concern.
18.
In the case of reported as Director-General, Intelligence Bureau,
Islamabad and others versus Amir Mujahid Khan and others (2011 SCMR 389) this
Court quite exhaustively dealt with issue of length of service for promotion to higher
grade, which is imperative criteria under Rule 8-B of Civil Servants (Appointment,
Promotion and Transfer) Rules, 1973, after discussing relevant rules and Office
Memorandum No.1/9/80-R.2 as reproduced in para-6 above, it was held at page 399 as
follows:
“It is an admitted fact that appellant/competent authority had not circulated
seniority list till the length of service of the afore-said respondents was
completed as required under the law. They were promoted subsequently on
permanent basis vide notification dated 11-8-2006 from the date of their
assuming charge of the post of Deputy Director on acting charge basis. The sole
question for our determination is that in such situation whether these
respondents regained original seniority on subsequent promotion so long the
order of the DPC dated 18-8-2005 remains in the field. This fact brings the case
of the afore-said respondents that they were considered and were not promoted
on permanent basis due to lack of requisite length of service, therefore, they
could not be granted seniority from the original date of their consideration for
promotion. See Abdul Ghani Chaudhry’s case 1998 PLC (C.S.) 1278. It is
pertinent to mention here that respondents who were promoted on permanent
basis as they had requisite length of service in their grade as mentioned above.”
19.
It may be observed that rule 8-B of Rules, 1973 ibid; indeed empowers the
competent authority in the public interest to fill a post reserved under the rules for
departmental promotion after compromising length of service, and subject to other
concomitant conditions as set down in succeeding sub rules of rule 8-B ibid by appointing
such civil servant to higher grade on "acting charge basis". However, in instant case the
respondent at the relevant time even did not qualify to be considered for appointment to
BS-19 on “acting charge basis”.
CA 322 of 2018
12
20.
In the facts and circumstances, we allow this appeal by setting-aside the
impugned judgment of the Federal Service Tribunal leaving the parties to bear their own
costs.
Judge
Judge
Judge
Islamabad
May 30, 2018
A. Rehman/*
Not Approved for Reporting
| {
"id": "C.A.322_2018.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE GULZAR AHMED, CJ
MR. JUSTICE IJAZ UL AHSAN
MR. JUSTICE MUNIB AKHTAR
Civil Appeals No.3264, & 327w of 2020
Against Judgment dated 05.03.2020 passed by the La/tore High
Court, Lahore in Intra Court Appeal No.1.1032 of 2020 and Intra
Court Appeal No. 8516 of 2020.
Dr. Iqrar Ahmad Khan
Appellant (in both cases)
VERSUS
'S.
Dr. Muhammad Ashraf etc.
Province of Punjab etc.
Respondents (in CA#326-L/20)
Respondents (in CA#327-L/20)
For the Appellant
For the Respondent (s)
Date of Hearing
Mr. Bilal Hassan Minto, ASC
Ch. Akhtar Ali AOR (in cA327..L/Qo)
Mr. Hamid Khan, Sr. ASC assisted by
Hafiz M. Tariq Naseem ASC and
Mr. Muhammad Ahsan Bhoon, ASC.
(No. I in CA 326-L/20 and No. 8 in CA 327-L120)
Mr. Akhter Javed, Addl.AG, Pb.
(No.2, .% 6 and 7 in CA 326-1,120 and No. 1,2,5
and 6 in CA 327-1,/20)
Mr. Muhammad Shahzad Shaukat
ASC along with Mr. Shaiqat Nadeem,
Law Officer
(No.8 in CA 326-1120 and No.7 in CA 32 7-1,/20)
07.12.2020
JUDGMENT
IJAZ UI., AHSAN, J.- Through this single
judgment, we intend to decide Civil Appeals No. 326-L
and 327-L of 2020 as they involve common questions of
law.
2
2.
Through the instant Appeal, the Appellant has
assailed a Judgment of the Lahore High Court, Lahore dated
05.03.2020 passed in Intra Court Appeal No. 11032 of 2020
and the Judgment of the Lahore High Court, Lahore dated
05.03.2020 passed in Intra Court Appeal No. 8516 of 2020
(hereinafter referred to as the "ICAs"). The ICAs were filed
against a Judgment of the Lahore High Court, Lahore, dated
04.02.2020 passed in Writ Petition No. 34743 of 2019. The
ICA Bench set aside the judgment passed by a learned Single
Judge dated 04.02.2020 which had declared the appointment
of Dr. Muhammad Ashraf, Respondent No. 1 in CA No. 326-L
of 2020 and Respondent No. 8 in CA No. 327-L of 2020 to the
post of Vice Chancellor of the Respondent-University being
without lawful authority. The learned Division Bench restored
the notification dated 16.04.20 19 issued by the Government
of Punjab appointing Respondent No. 08 as the Vice
Chancellor of the Respondent-University.
3.
The necessary facts giving rise to this Us are that
applications were invited by the Government of Punjab for the
post of Vice Chancellor of the University of Agriculture
Faisalabad (hereinafter referred to as the "Post"), through an
advertisement dated 23.08.20 16 (hereinafter referred to as
the "Advertisement"). The Appellant was the incumbent Vice
Chancellor of the Respondent-University. His term ended in
January 2017. The Appellant applied for the Post of Vice
Chancellor pursuant to the Advertisement and Section 14(8)
of the University of Agriculture Faisalabad Act 1973
3
(hereinafter referred to as the "Act"). Section 148 of the Act is
reproduced below for ease of reference as:-
"The incumbent Vice Chancellor shall not be allowed
any extension in his tenure but subject to eligibility he
may again compete for the post of the Vice Chancellor
in accordance with the procedure prescribed by or
under this section."
Until the appointment of a regular Vice
Chancellor, the Appellant was assigned the duties of the
acting Vice Chancellor by the Chancellor i.e. Respondent No.
4 in CA. 326-L of 2020 and Respondent No. 3 in CA. 327-L of
2020 vide notification dated 27.01.2017. The said notification
was challenged by way of Writ Petition No. 54628/2017 and
the Appellant was restrained from acting as the Vice
Chancellor vide order dated 09.08.2017. In order to run the
everyday affairs of the Respondent-University, a Pro-Vice-
Chancellor was appointed as per Section 15-A of the Act. For
almost 2 years, because of pending litigation in the matter of
appointment of the Vice Chancellor, a regular appointment
could not be made. A Search Committee was finally
constituted under Section 14(3) of the Act on 27.03.2018
which recommended three names to the Chancellor for
possible appointment of one as Vice Chancellor in the order of
merit. The Appellant stood at Number 1 on the merit list.
However, the Appellant was not appointed as the Vice
Chancellor by the Chief Minister Punjab for the reason that a
number of audit paras were left unanswered by the Appellant
during his past tenure, and that, the purportedly required
four syndicate meetings in a year were not convened by the
Appellant. An appointment was finally made through
4
Notification dated 16.04.20 19 (hereinafter referred to as
"Impugned Notification") through which Mr. Muhammad
Ashraf, Respondent No. 1 in CA 326-L of 2020 and
Respondent No. 8 in CA 327-L of 2020 was appointed as the
Pro-Vice-Chancellor. The said appointment was challenged
by the Appellant and the same was struck down vide
judgment dated 04.02.2020 of the Single Bench of the High
Court. The Respondents challenged this judgment by way of
the ICAs which were allowed.
4. Leave to appeal was granted by this Court vide
order dated 07.09.2020 in the following terms: -
"Learned Counsel for the Petitioner contends that as
per the Judgment in the ease of A ppointments of
Permanent Vice Chancellor of Punjab Universitu
(Human Rights Case No. 13865-P pf 2018). this Court
has laid down the following law with regard to the
appointment of Vice-Chancellors of the Universities in
Punjab:-
'5. The Search Committee shall complete
their work within a period of three weeks
and submit/ recommend names of three
persons in the order of merit to the
Government which shall proceed to notify
the person of highest merit unless there are
cogent reasons for not appointing him
which shall be duly recorded in writing
and shall bejusticiable.'
Learned Counsel contends that although in the
summary placed before the Chancellor, there were
two objections, one with regards to the existence of
164 unsettled Audit Paras and the other, non-calling
of the required meetings of the Syndicate, these
reasons are not enough for excluding the Petitioner
from being appointed as Vice Chancellor for the
reason that the Search Committee has given highest
marks to the Petitioner and, the Secretary Agriculture,
was familiar with the position of 164 unsettled Audit
Paras and non-calling of required syndicate meetings,
he was a member of the Search Committee, and, he
himself has given highest marks to the Petitioner i.e.
45. Further contends that the Search Committee has
considered all aspects of the matter and thereafter,
placed the same before the Chancellor and that the
reasons put forward in the Summary were also within
the knowledge of the Search Committee and despite
that, it has given the highest marks to the Petitioner.
He contends that the High Court has altogether misled
W
5
itself in noting the Judgment of this Court in the
Human Rights Case (supra) as totally misplaced and
not applicable, is altogether illegal, in that, the said
Judgment has jull application to the case in hand and
in terms of Article 189 of the Constitution was binding
upon the High Court, and the High Court could not
have taken a different view than the one taken by this
Court in the cited case.
2.
The submissions made by the learned Counsel
for the Petitioner require consideration. Leave to
appeal is granted to consider, inter alia, the same. The
Appeal stage paper-books shall be prepared,
expeditiously, but not later than one-month. The
parties are allowed to file additional documents, if
any, and for such, one month is allowed. The appeal
shall be heard within a period of two months.
C.M.As No. 920-L and 2300/2020
3.
The operation of the impugned judgments is
suspended."
5. Learned Counsel for the Appellant submits that
the Impugned Notification was issued in violation of the
directions of this Court in HRC No. 13865-P of 2018 dated
22.04.2018. Further, that, the Appellant was awarded the
highest marks by a duly constituted Search Committee
consisting of individuals and academicians of high repute and
immaculate credentials and integrity. The only reason on the
basis of which the Appellant could be denied appointment
was if cogent reasons were recorded for the same, which
would be open to judicial review. He adds that there were no
objections of any "mismanagement" or "poor financial
controls" that were raised by the Search Committee when the
Appellant was being recommended for appointment to the
post of Vice Chancellor. Further, that the Secretary of
Agriculture was part of the said Search Committee and, he
being the Principal Accounting Officer / Representative of the
Government of Punjab, had also awarded the Appellant the
highest marks in management and financial controls. He
further argued that the audit paras which were made the
basis of rejecting the Appellant's appointment against the
post of Vice Chancellor were not related to the Appellant, and,
the question whether or not these related to the Appellant
reflecting on his management and financial control skills was
never examined by the Chief Minister. He adds that there is a
discrepancy when it comes to the actual number of audit
paras against the Appellant in the records of the Government
because at first, they were said to be 164 in number and
then, they were claimed to be 140. He adds that Section 14 of
the University of Agriculture Faisalabad Act 1973 (hereinafter
referred to as the "1973 Act") has wrongly been interpreted
by the learned Division Bench. He further adds that Sections
24 and 25 of the 1973 Act do not mandatorily require a
specific number of syndicate meetings that are to take place.
Even otherwise, Rule 3 of the University of Agriculture
Faisalabad Conduct Of Business Rules 1976 uses the word
'ordinarily' which means that the said provision is
discretionary in nature and not mandatory. He adds that
there is no conflict in the case of Professor Dr. Razia
Sultana and others v. Professor Dr. Ghazala Yasmeen
Nizam and others (2016 SCMR 992) with the HRC Order of
this Court. He concludes by submitting that the failure to
appoint the Appellant as Vice Chancellor for the reasons
provided by the Chief Minister is a mala fide act because
many other appointments have been made involving
individuals who had many more outstanding audit pans and
7
the said reason has never before been found used to refuse
appointment. He has cited specific instances in this regard.
6.
The learned counsel for Respondent No. 1 in CA
326-L of 2020 and Respondent No. 8 in CA 327-L of 2020
submits that the Chief Minister has exercised his discretion
correctly and the reasons recorded by him in the exercise of
his discretion are sound and cogent which are not open to
interference. He states that the Impugned Notification was
issued after a transparent process of selection and the
exercise of discretion in the manner complained of does not
amount to any illegality. He adds that a writ of quo warranto
and mandamus is generally not maintainable in matters of
appointment and that, the same falls squarely within the
domain of policy which cannot be interfered with by courts
unless it can be shown that non-interference may lead to
grave injustice. He further submits that a presumption of
validity is attached to executive actions and the same ought
to be attached to the actions of the Chief Minister.
7.
Learned Assistant Advocate General has mainly
relied upon the arguments advanced by the counsel for
Respondent No. 1 I Respondent No. 8. The only additional
argument advanced by the Learned AAG is that the HRC
Order of this Court does not apply to the present controversy.
8.
Before we examine the case at hand, we consider
it appropriate to list the issues before us for determination.
These in our opinion are as follows:-
8
i. Whether the HRC Order of this Court is applicable to
this case; and
ii. Whether the reasons provided by the Chief Minister
were valid.
iii. Could the recommendation provided by the Search
Committee in order of merit be overridden without
assigning valid and cogent reasons which would
withstand judicial scrutiny?
WHETHER THE HRC ORDER OF THIS COURT IS
APPLICABLE TO THIS CASE?
9.
Appointments to the post of Vice Chancellor are
made according to the 1973 Act. Section 14(3) of the said Act
is relevant for this controversy which is reproduced below for
ease of convenience:-
"3. The Government shall constitute, for a term of two
years, a Search Committee consisting of not less than
three and not more than five members for making
recommendations for appointment of the Vice
Chancellor."
Further, Section 14(5) of the 1973 Act provides
that the Search Committee shall recommend the names of
three persons, who are in its opinion suitable for appointment
to the post of Vice Chancellor, to the Government.
10.
The matter of appointments of Vice Chancellor
came up before this Court in Human Rights Case No. 13865-
P of 2018 (hereinafter referred to as "HRC Case"). Objections
were raised in the HRC Case against the appointments which
were being made on recommendations of the Search
Committee. It was pointed out that discretion was being
exercised arbitrarily, in an unstructured, unregulated and
biased manner and the principle of merit was not being
followed. In this background, vide order dated 22.04.2018
9
(hereinafter referred to as "NRC Order"), the following order
was passed:-
a4. We are mindful of the fact that public sector Universities
cannot be left to operate without the appointment of a
permanent Vice Chancellor. Therefore as an interim
measure till such time that the permanent Vice Chancellors
are appointed pursuant to recommendations submitted by
the authorized Search Committees, acting Vice Chancellors
will be appointed in the following manner-
i)
For King Edward Medical University as well as
Nishtar Medical University, the existing Pro-Vice
Chancellors will hold the posts of acting Vice
Chancellors for running day to day affairs of the
Universities till the appointment of permanent
Vice Chancellors. This is in line with the
respective statutes governing the two Medical
Universities.
ii)
As far as the University of Health Sciences,
Rawalpindi Medical University and Faisalabad
Medical University are concerned, their acting
Vice Chancellors shall be appointed as follows:-
a. The names often senior most Professors
according to the seniority list
maintained by the Department shall be
placed before the Search Committees
which shall nominate/ recommend one
person to be notified as the acting Vice
Chancellor. On receipt of such
recommendations, the Government of
Punjab shall notify the said person as
the Acting Vice Chancellor immediately.
5. The Search Committees shall complete their work within
a period of three weeks and submit/ recommend names of
three persons in order of merit to the Government which
s/wit proceed to notifz4, the person of highest merit unless
there are cogent reasons for not appointing him which
shall be dultj recorded in writing and shall be justiciable.
6. The learned Advocate General, Punjab, shall submit a
comprehensive report regarding the appointment of acting
Vice Chancellors within one week and shall submit
periodical reports regarding the progress being made
towards the appointment of permanent Vice Chancellors.
Let the matter be relisted for hearing after two weeks."
11. A bare perusal of the aforenoted order reveals that
guidance was provided by this Court and the method of
appointments to the posts of Vice Chancellors were
structured to preclude the arbitrary and capricious exercise of
discretion at the cost of appointments on merit. It was held by
this Court that the appointments have to be made on the
principle of merit unless cogent reasons for not appointing
the person who is highest in merit are given, which would be
0
10
subject to judicial review. The said HRC Order was a speaking
order giving clear instructions to the Government. We are
unable to agree with the learned Division Bench insofar as it
has held that the HRC Order was only applicable to
universities that were before this Court in the HRC Case in
question. The order passed by this Court laid down a rule of
universal application which was meant to prevent the
unstructured, arbitrary, biased and unregulated exercise of
discretion solely dependent upon the sweet will of the Chief
Minister, with the object of safeguarding and upholding the
principle of merit. As such, being a pronouncement of this
Court, it is binding on all executive and judicial functionaries.
The record reveals that many subsequent appointments were
made by the Chief Minister and the Government of Punjab
while following and adhering to the rule settled by this Court
in its order dated 22.04.2018. As a matter of fact, the
recommendations of the Search Committee in this very case
also followed the directions issued through the HRC Order
and gave its recommendations in the order of merit. It shows
that it was clearly understood by the Government of Punjab
that the criteria given in the HRC Order was applicable to all
future appointments made through the mode of Search
Committees. Therefore, we find no valid basis, lawful reason
or reasonable justification for the view taken by the learned
ICA bench of the High Court that such Order was only
applicable in the HRC Case.
-
11
12.
It may be noted that directions were issued by this
Court that Vice Chancellors be appointed expeditiously. The
matter of such appointments got prolonged due to another
Writ Petition No. 12857 of 2019 filed in the High Court titled
Prof Dr. I/czz Ahmad etc. v. Province of Pun jab etc. This
Petition was, however, dismissed vide order dated 13.03.2019
while observing that the post of Vice Chancellor of the
University of Agriculture had been lying vacant since
23.01.2017 and the same ought to be filled without delay. It
was further directed that according to the HRC Order, the
person highest in merit shall be notified unless there were
cogent reasons for not appointing him which shall be
recorded in writing, within a period of fifteen days from the
date of the order of the learned High Court.
13.
Resultantly, the Search Committee constituted by
the Government of Punjab for the selection of the Vice
Chancellor, University of Agriculture, Faisalabad, made
recommendations to the Chief Minister of Punjab who then
advised the Governor / Chancellor of the University of
Agriculture to appoint Respondent No. 8 / Respondent No. 1
as the Vice Chancellor for a period of four years in terms of
Section 14(6) read with Section 11(8) of the 1973 Act. This
appointment was made in place of the Appellant who was
placed highest in merit, on the ground that certain unsettled
audit paras had remained unaddressed during the
Appellants' tenure as Vice Chancellor and that four syndicate
meetings that were required to be called in a year were not
CIVIL APPEALS V0.326-1, AND 327-i 0F2020
12
convened, which constituted sufficient reason to deny
appointment to the Appellant even though he was on top of
the merit list having scored the highest marks.
14.
The learned Division Bench has relied upon the
case of Professor Dr. Razia Sultana and others a
Professor Dr. Ghazala Yasmeen Nizam and others (2016
SCMR 992) to support its conclusions. The cited case on its
facts is distinguishable for the reason that in the first place
the Higher Education Department, KP, prepared the merit list
of shortlisted candidates, who were interviewed by the Search
Committee. The Search Committee interviewed the shortlisted
candidates and finally, three candidates were recommended
by it. The Search Committee did not allocate any merit to the
three candidates and its recommendation was not based on
any preference. Whereas, in the present case, there was no
involvement of the Higher Education Department in making
of the merit list and, the Search Committee had in the instant
case prepared a merit list and such list was based upon order
of merit with the candidate scoring in aggregate the highest
marks on top of the list. The name of the Appellant was
admittedly placed on top of the list.
15.
It may be noted that the order in the HRC was
passed subsequent to the case of Dr. Razia Sultana (ibid)
and in essence, while recognizing the discretionary powers of
the appointing authority as recognized in the said case, by
way of the HRC Order went one step further to structure the
same in a manner that the discretion was not exercised in an
C
13
unbridled, unstructured, biased or arbitrary manner to
ensure the same was not abused or misused. The question
decided in Dr. Ra.zia Sultana's case and the order in the HRC
dealt with two totally different issues namely, discretionary
powers of the appointing authority (as recognized in Dr. Razia
Sultana's case) and the structured exercise of such discretion
by the appointing authority in order to prevent abuse of
discretion (through the HRC Order). Moreover, it was after the
case of Dr. Ra.zia Sultana (supra) that the unbridled
discretion to appoint anyone of the choosing of the appointing
authority was structured by the Order of this Court in order
to safeguard against abuse of discretion at cost of merit.
Further, there existed no concept of preparing a list in the
order of merit by assigning marks at the time when the
judgment of Dr. Razia Sultana (ibid) was rendered. It was
only after this Court passed the HRC Order that the
Universities were directed to proceed with appointments of
Vice Chancellors on merit as determined by a Search
Committee. The HRC Order represents further development of
the jurisprudence on the question of appointments on the
recommendations of Search Committees. In Professor Dr.
Razia Sultana the issue of discretionary powers of the Chief
Minister and the mode and manner of exercise of the same
was neither the issue nor was it examined or ruled upon by
this Court.
16.
The relevant paragraph of the judgment of
Professor Dr. Razia Sultana is reproduced below:-
I
14
"10. In the instant matter, absolute power of
appointment was not given to authorities i.e. the
Chancellor/ Governor to appoint any person of their
choice but the Search Committee consisting of eminent
professionals was constituted who after detailed
scrutiny of the credentials and length interview of each
candidate, recommended three names which, as per
para wise comments, was not on the basis of any
preference and the Chancellor/ Governor, on the advice
of the Chief Minister, appointed one candidate out of the
three candidates in exercise of his powers, as
mentioned above. Section 12(1) of the Khyber
Pakhtunkhwa Universities Act, 2012 gives discretion to
the Chancellor/ Governor to appoint anyone out of the
candidates recommended by the Search Committee on
the advice of C.M. The only allegation against the
appellant (Dr. Razia Sultana) is that she belongs to the
constituency of the Chief Minister but without any
supporting material, this cannot be termed as an act of
mala Jide."
A bare perusal of the aforenoted paragraph
provides that, the names provided to the Search Committee
were not in order of preference, but, were at random. In
essence, what this means is that no list was prepared in the
order of merit. Comparing the said case to the present
controversy, it becomes apparent that after the HRC Order
the names were required to be shortlisted by the Search
Committee in order of merit, with the person highest on merit
having a legitimate expectancy of being appointed unless the
Chief Minister recorded valid reasons for not appointing him,
and such reasons were open to judicial scrutiny and review.
Consequently, the underlying principle and ratio of both
orders of this Court were totally different and there is no
conflict between the two.
17. Even otherwise, appointments to various other
Universities such as the Fatima Jinnah Medical University,
were made according to the HRC Order of this Court. Vice
C
15
Chancellors have been appointed in various universities
across the province, following the principle laid down in our
order dated 22.04.20 18 which has, for all intents and
purposes, been implemented by the provincial governments in
respect of all appointments made on the basis of
recommendations of the search committees. Therefore, the
finding of the learned Division Bench that the order dated
22.04.2018 was applicable only to universities before this
Court in the said matter is obviously erroneous, contrary to
facts, ignores the ground realities and clearly represents a
myopic approach. It may be noted that in the HRC order of
this Court, a rule of general application relating to the
appointment of Vice Chancellors in public sector universities
on the basis of recommendations of search committees has
been laid down. The applicability of the rule is not limited
only to the universities before this Court but to all
universities in the public sector under the control or authority
of the government which was fully represented before this
Court when the said order was passed. Further, the said
order was not only implemented with reference to the
institutions before us but to all other public sector
universities for all intents and purposes. The order has also
attained finality and continues to hold the field.
WHETHER THE REASONS FURNISHED BY THE CHIEF
MINISTER WERE VALID?
18. From the very outset, it has been admitted that
the reasons provided by the Chief Minister are justiciable and
I
16
courts can examine them on the touchstone of validity,
fairness and compliance with the law, rules and departmental
practice. Further, it has been admitted that the discretion of
the Chief Minister is not unfettered, unbridled and
unregulated. The counsel for the Respondent admits that the
reasons cannot be capricious, rnala fide or arbitrary but
states that the reasons provided by the Chief Minister were
adequate and sufficient. We have therefore examined the
reasons furnished by the Chief Minister for not appointing the
Appellant who had been placed highest on the merit list and
instead, deciding to appoint the Respondent who was
admittedly unanimously placed lower in the order of merit by
the Search Committee which consisted of eminent citizens,
respected representatives from academia, experts and high
ranking government officials. The two reasons assigned by the
Chief Minister in the Summary dated 13.04.2019 for not
appointing the person placed highest in the order of merit
were as follows:-
"a) Dr. Iqrar Ahmad who has obtained the highest
marks has previously served as Vice Chancellor of the
University of Agriculture. His period of appointment as
Vice Chancellor was marked by poor financial controls
and management as evidenced by 164 unsettled
audit paras.
b) Dr. Iqrar Ahmad was also unable to hold the
required number of meetings of the Syndicate."
19. We note that the counsel for the Appellant has
placed before us several similar cases of appointment of Vice
Chancellors of other universities. In the said cases, the
appointees had pending audit paras and despite that, they
were appointed to the post of Vice Chancellor. This fact has
17
not been controverted by the learned counsel for the
Respondents. We further note that the Chief Minister has
made no effort to examine the said audit paras to ascertain
whether they were actually related to the financial control and
management of the Appellant. The record reflects that he
recorded a general finding without ascertaining the facts with
any degree of accuracy or due application of mind. Nothing
has been shown to us that may connect the outstanding
audit paras with poor financial controls of the Appellant. It is
also important to note that, this too has not been contested
by the learned counsel for the Respondents. The only
document examining the audit paras is a letter dated
01.03.2019 and the said letter does not examine the details of
the pending audit paras or the question whether they related
to the mismanagement or lack of financial or administrative
control during the Appellant's tenure as the Vice Chancellor
of the Respondent-University. All other letters issued in the
matter appear to have been prepared after the Impugned
Notification was issued.
20. The record further reveals that the Secretary,
Agriculture Department, Government of Punjab, was part of
the Search Committee. The said Secretary is the Principal
Accounting Officer of the Government of Punjab. He was a
member of the Search Committee that placed the Appellant at
Serial No. 1 of the merit list. It is worth mentioning that the
same Secretary has given the Appellant 10 out of 10 marks in
the category of "Administrative and Financial Management".
Further, the Appellant was given 45 marks in the Interview.
As against this, the Respondent was given only 31 marks in
the Interview. The same Secretary was part of the interview as
well. Therefore, when the representative of the Government
who had first-hand knowledge of all material and relevant
facts also gave highest marks to the Appellant and low marks
to the Respondent, we do not see why the Appellant was not
appointed and that too without cogent and convincing
reasons.
21. Keeping in view the fact that other persons have
been appointed as Vice Chancellors, and while considering
their appointments, the pendency of audit paras has not been
considered as a material and determining factor reflecting on
their administrative ability or financial controls, we do not see
why the same standard was not applied in the case of the
Appellant and that too without due application of mind and
examination of the documents or material attributable to
alleged lax financial controls of the Appellant. Further, he was
never confronted with the same and was virtually condemned
unheard and behind his back. The reasons provided by the
Chief Minster show an exercise of pick and choose with a pre-
determined mind and a conscious and deliberate effort
appears to have been made to contrive reasons to appoint a
person lower on merit and deprive a person better qualified,
higher on merit and obviously more suitable for the post in
question. This act of the Chief Minister amounts to an illegal,
arbitrary, capricious and unbridled exercise of discretion by
19
the Chief Minister and cannot be countenanced especially so
when the Search Committee, comprising of credible
academicians, independent members and representatives of
the Government itself with impeccable credentials, placed the
Appellant on top of the merit list. Not only was he at No.1 of
the merit list in the written exam, but, he was also given the
highest marks in the interview. The same interview in which
the Respondent did not perform as well.
22. From the facts and circumstances discernable
from the record, it is evident that the Appellant was denied an
appointment unlawfully and arbitrarily and, reasons were
contrived to furnish a basis for a predetermined decision
which fail to stand the test for judicial scrutiny. It was
precisely for this reason that in our order dated 28.04.2018,
while retaining the discretion of the government to appoint a
person lower on merit we had circumscribed and structured
the exercise of discretion by making it obligatory on the
authority to record cogent reasons with a rider that such
reasons will be justiciable. As discussed in the preceding
paragraphs, the impugned order not only lacks bonafide and
transparency but also assign reasons which are neither
cogent nor show any consistency in executive decision
making.
23.
The second reason provided by the Chief Minister
is that the Appellant was unable to hold the required number
of syndicate meetings. The stance of the Appellant is that
there is no requirement in the Act to hold a certain number of
r
--
20
meetings of the syndicate. Statutes of other Universities
expressly and specifically provide for the same in their law.
The said requirement stems from an amendment made by the
syndicate on 28.06.2014 to Rule 3 of the University of
Agriculture Faisalabad Conduct of Business Rules of the
Syndicate, 1976 (hereinafter referred to as the "Rules") which
reads as follows:-
"Meetings. 3. (1) Ordinarihi, the Syndicate will meet
at the University Campus and Faisalabad at least
four times in a Calendar year"
24. It is evident from a perusal of the said provision in
its true perspective that it is discretionary and not mandatory
in nature as no consequence is provided in the law or the
rules for failure to comply with the same. Even otherwise,
despite our query, the learned ASC for the Respondent has
been unable to show any prejudice having been caused to
anybody on account of the alleged failure to call the requisite
minimum number of syndicate meetings in a year. Further,
where the relevant law requires a specific number of
meetings, it provides for the same in the Act for example
Section 22 of the Act which requires the "Senate" to hold two
meetings in a year. The word used in the provision relating to
syndicate meetings is "ordinarily" which is indeed
discretionary as opposed to Section 22(3) which uses the
word "shall" which in the facts and circumstances of the case
points towards a mandatory command. The said Section is
reproduced as:-
"(3) The Senate shall meet at least twice in every year
on dates to be fixed by the Vice Chancellor with the
consent of the Chancellor"
CIVIL APPEALS N0.326-LAND 327-1, OF 2020
21
25.
We are therefore of the view that, the Appellant
was not "required" to hold a certain number of syndicate
meetings and the Appellant could not have been denied
appointment for his failure to do what he was not required by
law to do.
26.
The learned Division Bench has erroneously and
for reasons best known to it held that the Court cannot
adjudicate upon the reasons given by the Chief Minister. This
finding in our humble view constitutes abdication of
jurisdiction and power of judicial review of administrative
actions by the High Court which is the foundation and
hallmark of the jurisdiction of the High Court under Article
199 of the Constitution. Further, we had clearly and
categorically held in our order dated 22.04.20 18 that the
reasons recorded by the appointing authority will be
justiciable. In the presence of such clear and categorical
findings recorded by this Court, we are unable to comprehend
how a finding of this nature could be recorded by the learned
High Court. We have been unable to find the basis, logic,
reason or rationale behind the view taken by the learned
Division Bench that the reasons recorded by the appointing
authority do not have to undergo judicial scrutiny. The order
of this Court was clearly on a question of law, enunciated a
principle of law and was binding on the learned Division
Bench in terms of Article 189 of the Constitution. This fact
has unfortunately escaped the notice of the learned Division
Bench of the High Court. Further, it is settled law that, even
I
22
the obiter dicta of this Court is binding on the High Court.
Reliance in this regard is placed on Justice Khurshid Anwar
Bhinder v. Federation of Pakistan (PLD 2010 Supreme
Court 48$i the relevant part of which is reproduced as
under-.-
"Even obiter dictam of the Supreme Court, due to the
high place which the Court holds in the hierarchy-of
courts in the countru, enjotj a highly respected position
as if it contains a definite expression of the Courts
view on a legal principle, or the meanin g of a law. (M.
Ismail & Sons v. Trans-Oceanic Steamship Co., Ltd
PLD 1966 Dacca 296, Nagappa is. Ramchandra AIR
1946 Bombay 365, K. C. Venkata Chalamayya v.
Mad. State AIR 1958 Andh-Par. 173, K.P. Doctor v.
State of Bombay AIR 1955 Born. 220, Bimla Devi is.
Chaturvedi AIR 1953 All. 613)." (Emphasis supplied)
27.
The aforenoted principle of law was further
highlighted in the case of Muhammad All Abbasi and 2
others v. Pakistan Bar Council (PLD 2009 Karachi 392)
the relevant paragraph of which is reproduces as under:-
"Indeed, it is too well-settled of a principle of law,
requiring no reconsideration1 that even obiter dictpf
the Supreme Court are bindin g on the High Courts,
irrespective of the latter's strength (see M. Ismail and
Sons v. Trans-Oceanic Steamship Co. Ltd. PLD 1966.
Dacca 296, Ghaus Muhammad is. The State PLD 1978
La/i, 1235, Afaquz Zubair V. Muhammad Idrees PLD
1978 Kar. 984, Faiz Bakhsh v. Muhammad Munir
1986 CLC 507, Ghulam Mustafa Mughal is. Azad
Government of the State of Jammu and Kashmir 1992
MLD 2083, Abdul Razzak is. The Collector of Customs
1995 CLC 1453, Mian Manzoor Ahmed Wattoo is. The
State 2002 Y LR 3433, Hafeez-ud-Din is. Badar-ud-Din
PLD 2003 Kar. 444, Azad J & K Government v. C/i.
Muhammad Saeed, Stenographer 2003 PLC (CS) SC
(AJ&K) 789 and Watan Party is. FOP 2005 Y LR 388L
(Emphasis supplied)
28. For reasons recorded above we find that the
impugned judgment of the learned Division Bench of the
Lahore High Court dated 05.03.2020 is unsustainable and
liable to be set-aside.
05.03.2020.
23
29.
Accordingly, we allow these appeals and set aside
the impugned judgment of the Lahore High Court dated
ANNOUNCED IN OPEN COURT ON t6.1 .2-1AT ISLAMABAD.
| {
"id": "C.A.326-L_2020.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE MIAN SAQIB NISAR, HCJ
MR. JUSTICE FAISAL ARAB
MR. JUSTICE SAJJAD ALI SHAH
CIVIL APPEAL NOs. 334 TO 344 OF 2004
(On appeal against the Judgment dated 27.03.2003 passed by
the High Court of Sindh, Karachi in Constitution Petition Nos. D-
1364 to D-1369/1998, D-1385 to D-1389/1998, D-1421/1998
& D-1266 & D-1267/1999)
Army Welfare Sugar Mills
(In CAs 334 & 337/04)
Shahmurad Sugar Mills Ltd.
(In CA 335/04)
Faran Sugar Mills Ltd.
(In CA 336/04)
Pangrio Sugar Mills Ltd.
(In CA 338/04)
Digri Sugar Mills Ltd.
(In CA 339/04)
Dewan Sugar Mills Ltd.
(In CA 340/04)
Seri Sugar Mills Ltd.
(In CA 341/04)
Larr Sugar Mills Ltd.
(In CA 342/04)
M/s Al-Abbas Sugar Mills Ltd.
(In CA 343/04)
Mirpurkhas Sugar Mills Ltd
(In CA 344/04)
...Appellants
VERSUS
1.
Government of Sindh through
Secretary Agricultural & others
(In CAs 334-338, 343, 344/04)
2.
Federation of Pakistan etc
(In CAs 339-342/2004)
….Respondents
For the Appellants:
Mr. Khalid Anwar, Sr. ASC
(in CA. Nos.334-338/2004 & 344/2004)
Nemo
(in CA. Nos.339-342/2004)
Mr. Muhammad Shaiq Usmani, Sr. ASC
(in CA.No.343/2004)
For the Applicant:
Mr. N.C. Motiani, AOR
(in C.M.A No.1304/2004)
For Respondents:
Mr. Zamir Hussain Ghumro, A.G., Sindh.
Mr. Aslam Butt, DAG
Mr.
Agha
Zaheer-ud-Din,
Cane
Commissioner, Sindh.
Mr. Abdul Aziz Channa,
Deputy Secretary Agriculture Department,
Sindh.
Date of Hearing:
05.12.2017
C.As. 334 TO 344/2004.
2
JUDGMENT
FAISAL ARAB, J.- Appellants are engaged in the
business of producing sugar and allied products from sugarcane.
The sugar industry is regulated by the Sugar Factories Control Act,
1950 (‘the Act’). Sugarcane in Sindh is ordinarily cultivated in the
months of September and October and becomes ripe for harvesting
in a year’s time i.e. by October the following year. It is for this
reason that under Section 2(h) of the Act, the crushing season
starts on the 1st of October each year. Clauses (i) & (ii) of Section
16 of the Act empower the Provincial Government to fix minimum
price for the procurement of sugarcane from the growers that has
been exercised every year. As the quantity of sugar produced from
sugarcane depends upon its sucrose content, a base sucrose
recovery level in the climatic conditions of the Province of Sindh
was determined to be 8.7% which is the main component of the
sugarcane
price
fixation
formula.
Hence,
whenever
the
procurement price of sugarcane is revised under the price fixation
formula, it is worked out by keeping the base recovery level at
8.7%.
2.
The level of sucrose content extracted from sugarcane
depends on a number of factors such as the variety of sugarcane
used as a seed, the soil conditions, the efforts of the growers and
the efficiency with which the sugarcane is crushed in the mills.
Thus the joint efforts and labour of the sugarcane growers and the
sugar mill contribute towards achieving a sucrose recovery level
which at times reaches well beyond the base recovery level of 8.7%.
In or around 1981, due recognition was given to the contribution of
C.As. 334 TO 344/2004.
3
the growers by sharing with them the fruits of higher sucrose
content that is achieved by a mill in a crushing season over and
above the base recovery level of 8.7%. Thus for the crushing
season 1981-82, in addition to the minimum procurement price
fixed under Clauses (i) & (ii) of Section 16 of the Act, it was decided
that the growers be paid as an additional price described as
‘quality premium’ at the rate of 9 paisa per maund for each 0.1% of
excess recovery of sucrose achieved by a sugar mill over and above
the base recovery level of 8.7%. This policy was implemented for
about two years before it was given statutory cover under
Sugarcane Quality Premium Order, 1984 issued for the 1983-84
crushing season. Under this statutory provision, the rate of ‘quality
premium’ was enhanced from 9 to 11 paisas per maund. As this
statutory cover for the payment of quality premium was only for
the crushing season 1983-84, a permanent statutory provision in
the form of Clause (v) to Section 16, as applicable in the Province
of Sindh, was inserted in the Act the following year under the
Sindh Sugar Factories Control (Amendment) Ordinance, 1985. This
was done to ensure that the growers at the end of each crushing
season get quality premium in case the mills to which they have
supplied sugarcane achieve sucrose level that is higher than the
base recovery level. Clause (v) of Section 16 of the Act reads as
under:
‘(v)
The Provincial Government may direct the Factories to
pay quality premium at the end of the crushing season at such
rate as may be specified by the Provincial Government in
proportion to the sucrose recovery of factory in excess of the
base level sucrose content determined by the Provincial
government, from time to time.’
C.As. 334 TO 344/2004.
4
3.
After paying quality premium to the growers for
seventeen long years right from the crushing season 1981-82 till
1997-98, the mill owners suddenly felt aggrieved when the rate of
quality premium for the 1998-99 crushing season was raised from
32 paisas per maund to 50 paisas. In this regard the appellants
filed constitution petitions in the High Court of Sindh, questioning
the vires of clause (v) of Section 16 of the Act on the grounds that
payment of quality premium is unconstitutional being confiscatory
in nature. During pendency of the constitution petitions, the
appellant sought a restraint order against the Provincial
Government from notifying quality premium which was granted on
25.02.1999. After dismissal of the constitution petitions vide
impugned judgment dated 22.03.2003 the appellants preferred the
present appeals with the leave of this Court and vide order dated
19.02.2004 the operation of the impugned judgment was
suspended. Hence, no quality premium notification under the
provisions of Clause (v) of Section 16 of the Act has been issued
after the crushing season 1998-99.
4.
Learned counsel for the appellants argued that every
notification for payment of quality premium issued in terms of
clause (v) of Section 16 of the Act takes the base recovery level to
be 8.7% which should not remain constant. According to him, the
revision of base recovery level from time to time is envisaged under
Clause (v) of Section 16 of the Act. In this regard much emphasis
was laid by the learned counsel on the words ‘from time to time’
contained at the end of the said clause.
C.As. 334 TO 344/2004.
5
5.
Quality premium is nothing but an additional price
which becomes payable to the growers only when a sugar mill
achieves sucrose recovery level that crosses the base recovery level
of 8.7%. The reason to fix the base recovery level at 8.7% for the
purposes of determining the rate of quality premium is that this
8.7% is also taken as base level for fixing the sugarcane
procurement price under the sugarcane price fixation formula.
Obviously then the quality premium becomes payable for each
0.1% of excess recovery of sucrose achieved by a sugar mill over
and above the base recovery level of 8.7%. In other words it is
payable for each decimal point of sucrose content that is recovered
beyond the base level of 8.7%. This base level therefore has to
remain the same as a constant factor and becomes starting point
in the determination of the excess decimal points and this is
exactly the mandate of the law itself. The term ‘from time to time’
contained in Clause (v) of Section 16 of the Act therefore has
nothing to do in any manner with the base recovery level which is
solely intended to empower the Provincial Government to specify
the rate of ‘quality premium’ from time to time. Thus it is the
periodical revision in the rate of quality premium that is intended
by the term ‘from time to time’ nothing else. One can articulate the
mandate of Clause (v) of Section 16 of the Act in the following
words ‘Factory has to pay quality premium in proportion to the
sucrose recovery that is in excess of the base level at a rate specified
from time to time.’ This is exactly what was being done by the
Provincial Government and simultaneously honoured by the sugar
mills for seventeen long years right from 1981-82 crushing season
C.As. 334 TO 344/2004.
6
when the concept of quality premium was first introduced and
implemented until 1998-99 under statutory provisions. However,
the grant of quality premium stood discontinued only because of
restraint orders passed in these proceedings. The argument that
the words ‘from time to time’ are intended to revise the base
recovery level is therefore misconceived.
6.
There is another important aspect of this case, which
needs to be highlighted here. After the temporary restraint orders
against payment of quality premium were passed in these
proceedings almost every sugar mill has delayed its crushing until
the 2nd week of December. Had the start of crushing season been
strictly adhered to, as required under Section 2 (h) of the Act, the
harvesting of sugarcane would take place between 1st of October
and the first week of December as well. This would leave a very
large area of agricultural land available for cultivation on which
other valuable and important Rabi crops, mainly wheat and
sunflower could be sown. One of the reasons that suit the mills in
delaying the start of crushing season is to derive maximum benefit
of higher recovery level of sucrose that is achieved when the
statutorily defined crushing season is delayed by about two
months. This practice has been consistently adopted over the years
without impunity as on account of injunctive orders passed in the
present proceeding the Provincial Government was restrained from
notifying the rate of quality premium. As a consequence of this, the
sugar mills no more remained bound to pay quality premium to
the growers and hence have been exclusively enjoying the benefits
of high sucrose recovery level unconcerned with the loss of
C.As. 334 TO 344/2004.
7
valuable Rabbi crops suffered by the growers that could have been
cultivated on a very large area of land which becomes available
when the crushing season starts on 1st of October as provided in
law.
7.
It would be worthwhile to also examine the financial
implication of the disputed notification in comparison to some of
the notifications of the past under which quality premium were
being paid by the sugar mills without any reservation. In the
crushing season of 1988-89 for each increase of one decimal point
in sucrose recovery level beyond the base level of 8.7%, the
financial impact was only 1.50% of the then prevalent price of the
sugarcane. In 1989-90 it was 1.35% of the price for each decimal
point increase. In so far as the disputed crushing season is
concerned, the impact of increase in the quality premium as to the
price of sugarcane was no more than 1.38% for each decimal point
increase. Hence, nothing unusual took place when the rate of
quality premium for the disputed crushing season 1998-99 was
raised to 50 paisas per maund. From the comparison of rates of
quality premium that were declared from time to time, it is evident
that the rate revised for the disputed crushing season cannot be
said to be phenomenal as it was more or less the same as was
determined in the previous crushing seasons. In our view, the only
situation when an increase in the rate of ‘quality premium’ can
conceivably be called in question is when it can be demonstrated
that revision in the rate of quality premium does not commiserate
with the revision in the minimum procurement price of sugarcane.
Only in such situation a case of erratic increase without any
C.As. 334 TO 344/2004.
8
discernible link to the sugarcane procurement price can be made
out. In the present case, as the revision of rate of quality premium
was only 1.38% of the sugarcane price for each decimal point
increase, there appears to be no logical reason in denying the
growers their due share in facilitating the mills in achieving higher
than the base sucrose recovery level which invariably results in
higher sugar production.
8.
From the above discussion, it is amply established
that payment of quality premium on sucrose recovery level which
is over and above the base level of 8.7% is not something which
can be said to be some kind of benevolence or is bereft of any
consideration. This right to pay quality premium created under
Clause (v) of Section 16 of the Act is based upon intelligible criteria
and, therefore, cannot be regarded as confiscatory so as to
question its vires. In-fact its denial would be unfair and
confiscatory in nature as it would amount to disregarding the
contribution of the growers in achieving a higher level of sucrose
content, which directly results in higher sugar production. The law
calling upon the sugar mills to pay quality premium was not only
acknowledged by them in their pleadings but duly honoured right
from the crushing season of 1981-82 till 1997-98 without any
reservation or objection. We find no reason which entitles the
sugar mills not to honour the mandate of the law and deny the
growers the fruits of their labour to which they on the principle of
equity as well as law are duly entitled.
C.As. 334 TO 344/2004.
9
9.
We therefore conclude that the grant of quality
premium being just and fair and based on statutory provision is
legally enforceable. The impugned notification was validly issued,
hence these appeals are dismissed. We may, however, mention
here that in future notification as per past practice for payment of
quality premium should be issued along with the notification of
fixation of the minimum procurement price of sugarcane and the
same shall be paid to the growers not later than two months after
the crushing season comes to an end.
CHIEF JUSTICE
JUDGE
JUDGE
Announced on 05.03.2018 at Islamabad by
Hon’ble Mr. Justice Faisal Arab
Approved For Reporting
Khurram
| {
"id": "C.A.334_2004.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
PRESENT:
MR. JUSTICE IJAZ UL AHSAN
MR. JUSTICE JAMAL KHAN MANDOKHAIL
CIVIL APPEAL NO.339 OFQ
(Against judgment dated 09.12.2015 of Lahore High
Court, Rawalpindi Bench, Rawaiphidi passed in Regular
Second Appeal No.03/2003)
Dadu Khan (deed.) thr. LRs and 3 others
..Appellant(s)
VERSUS
Ghulam Abbas and 23 others
...ReSpOfldeflt(S)
--
(
For the Appellaflts
For Respondents No. 1-2:
Respondents No.3-24
For the Federation:
For Province of Punjab:
Date of Hearing:
Ch. Afrasiab Khan, ASC
Mr. Muhammad Shoaib Abbasi, ASC
1x-parte
Mr. Sohail Mehmood, Addl.AGP
Mr. Qasim All Chohan, Addl AG, Pb
Shaukat lqbal, Naib-Tehsildar Jand
(Attock)
23 .06 .2022
JUDGMENT
IJAZ UL AHSANLIJ-. Through the instant Appeal,
the Appellants have challenged the judgment of the Lahore
High Court, Rawalpindi Bench, Rawalpindi dated 09.12.2015
(hereinafter referred to as the "impugned Judgement")
wherein the judgement and decree of the Additional District
Judge, Attock (hereinafter referred to as the "Appellate Court")
was set aside and the judgement and decree of the Senior
Civil Judge, Attock (hereinafter referred to as the "Trial
Court") was restored.
I
2
cn Mpg,'. fib 339 C9WS
4
2. The necessary facts giving rise to this Us are that
in 1979, the predecessor-in- 1flte5t of the Appellants, Sher
Zaman, filed a suit for declaration to the effect that he may be
declared owner in possession of land measuring 135 Kanals
and 08 Marlas situated in Mithial, Tehsil Pindigheb, District
Attack (hereinafter referred to as the "Suit Land") and that the
entries in the revenue record showing the Central
Government as mortgagee of the suit land were wrong and
liable to be corrected. In the alternative, the predecessor-in-
interest of the Appellants prayed that redemption of the
mortgage may be decreed. It was averred in the plaint that
Sher Zaman was the grandson of one Sooba Khan. Sooba
Khan owned and possessed the suit land and subsequently
mortgaged the said land to one Amar Chand for a sum of
Rs.100/m Subsequently, the mortgage amount was paid to
the mortgagee through a receipt in 1892, but appropriate
entries could not be made in the revenue record until 1933.
After the fourth settlement of land in the area, a fardbadr was
prepared, the mutation for redemption of mortgage was
entered on 24.01.1933 but was subsequently cancelled on
25.09.1936. In the wake of the sub-Continent's partition,
Amar Chand migrated to India and the suit land was treated
as an evacuee property to the extent of Amar Chand's interest
by the Central Government. By operation of law, Amar
Chand's interest was transferred to the Central Government
which, in turn, transferred 23-kanals of the suit land to
Muhammad Sharif and rest of the suit land to Ghulam
Mustafa under the Displaced Persons (Land Settlement) Act of
.1
WS&&L f ucU91,I6
3
1958 (hereinafter referred to as the "Land Settlement Act").
The suit of the Appellants was dismissed by the Trial Court
vide judgement dated 17.09.1981. On appeal, the suit of the
Appellants was partially decreed to the extent of 23 Kanals.
On second appeal before the High Court, the suit of the
Appellants was decreed as prayed for vide judgement and
decree dated 12.10.1998. However, the Supreme Court, vide
its judgement dated 19.11.1999, remanded the matter to the
Learned High Court for decision afresh. After the matter was
remanded to the High Court, the High Court further
remanded the matter to the Trial Court and allowed all the
parties to raise their respective factual and legal
pleas/grounds before the Trial Court. After pro and contra
evidence was led, the Trial Court, vide its judgement and
decree dated 31.10.2002 dismissed the suit of the Appellants
for the second time. On appeal, the Appellate Court set aside
the judgement and decree of the Trial Court and decreed the
suit of the Appellants vide its judgement and decree dated
27.12.2002. This judgement of the Appellate Court was
challenged before the High Court which, vide the impugned
judgement, set aside the judgement of the Appellate Court
and restored the judgement and decree of the Trial Court,
essentially dismissing the suit of the Appellants. It is against
the judgement of the High Court that the Appellants have
preferred the instant appeal.
3.
The Learned Counsel for the Appellant has argued
that in light of the receipt dated 18.07.1892, the Appellants'
- -- 7
rn. APEM ?
CQ' 2015
4
rights to redeem the suit land had been exercised and Amar
Chand no longer had any interest in the suit land as a
mortgagee. Since the mortgage had been redeemed by the
predecessor-in-interest of the Appellants, the Central
Government could not been become subsequent mortgagee of
the land by operation of law in the absence of Amar Chand's
mortgage interest in the land. He has relied, inter a/ia, on a
judgement of this Court passed in Muhammad Hanif and
another vs. Chulam Rasool etc. (2005 SCMR 1004) to support
his arguments. He further contends that the Appellants had
been non-suited by the Learned High Court by holding their
suit incompetent in light of an order of this Court passed in
Member BOR Punjab and another vs. Mst. Siddigan through
L.Rs and others (2015 SCMR 1721) whereas in a judgement
passed by bhis Court in Malik Raees vs. Abdul Mannan and
another (1992 SCMR 1822), the jurisdiction of the Civil Court
for redemption of mortgage is not ousted if the Central
Government is vested with mortgagee rights by operation of
the Land Settlement Act. He prayed that the impugned
judgement may be set aside and the judgement and decree of
the Appellate Court be restored.
4.
The Learned Counsel for Respondents No.1 & 2 on
the other hand has defended the impugned judgement.
5.
Notice was issued to the Attorney General for
Pakistan as well as the Advocate General of Punjab to assist
with the matter since after the passing of the Land Settlement
Act, the suit land to the extent of Amar Chand's mortgage
1
..
-
rights had been vested with the Central Government. The
Additional Attorney General as well as the Additional
Advocate General Punjab were heard and both of them have
defended the impugned judgement.
6. We have heard the learned counsels for the parties
at length and gone through the case record with their
assistance. The following questions need to be determined by
this Court:-
1. Did the Central Government haue mortgagee rights in
the suit land? if it did, its effect thereof? If it did not,
its effect thereof?
ii.
Was the Quit Court the competent forum to adjudicate
the instant matter?
DID THE CENTRAL GOVERNMENT HAVE ANY
MORTGAGEE RIGHTS IN THE SUIT LAND? IF IT DID,
ITS EFFECT THEREOF? IF IT DID NOT, ITS EFFECT
THEREOF?
7. In order to ascertain if there were any mortgagee
rights in the suit property, it may be prudent to first
determine what a mortgage is and what rights accrue once a
mortgage deed is executed between two parties.
Under the law, mortgage is defined under the Transfer of
Property Act, 1882 (hereinafter referred to as the "TPA 1882")
in Section 58 of the said Act. The same is reproduced below
for ease of reference:
58. Mortgage mortgagor mortgagee, 'mortgage-
money and mortgage defined
(a) A mortgage is the transfer of an interest in
specific immovable property for the purpose of
securing the payment of money advanced or to be
advanced by way of loan, an existing or future debt
or the performance of an engagement which may give
I
.1
rise to a pecuniary liability. The transferor is called a
mortgagor, the transferee a mortgagee; the principal
money and interest of which payment is secured for
the time being arc called the mortgage-money and
the instrument (if any) by which the transfer is
effected is called a mortgage-deed.
In essence, a mortgage is a contract between two parties (i.e.
a borrower/ mortgagor and a lender/ mortgagee) where a
capital sum of money is lent in exchange for a proprietary
interest in land. It is important to note that unlike other
proprietary interests in land, a right accrues to both the
mortgagor and a mortgagee once a mortgage deed has been
executed between two parties. These interests are: 1) the
mortgagor's/ borrower's right to have the land
redeemed/ returned once the capital money lent has been
repaid; and 2) the mortgagee's/ lender's right to possess and
acquire the property if the capital money lent is not repaid as
stipulated in the mortgage deed. The proprietary rights of
both the mortgagor and mortgagee are independent
proprietary interests and there is oftentimes no bar on the
parties to transfer and/or sell their respective rights in the
mortgage to subsequent parties.
Relying on the averments made by the Appellants to the
extent that possession had never been handed over to Amar
Chand during the life of the mortgage and that they had
always been in possession of the suit land, the mortgage in
question would be deemed to be a simple mortgageas is
defined in sub-section (b) of Section 58, TPA 1882. It is
reproduced below for reference: -
c-mt Afx4L K) ,g (* I
(b) Simple mortgage
Where, without delivering possession of the
mortgaged property, the mortgagor binds himself
personally to pay the mortgage money, and agrees
expressly or impliedly, that, in the event of his failing
to pay according to his contract, the mortgagee shall
have a right to cause the mortgaged property to be
sold and the proceeds of sale to be applied, so far as
may be necessary, in payment of the mortgage
money, the transaction is called a simple mortgage
and the mortgagee a simple mortgagee.
The rights of both the mortgagor as well as the mortgagee are
also enumerated in the TPA 1882. The relevant portion of
section 60 deals with the right of the mortgagor to redeem the
property he has mortgaged. It is reproduced below: -
60. Right of mortgagor to redeem
At any time after the principal money has become
due, the mortgagor has a right, on payment or
tender, at a proper time and place, of the mortgagee-
money, to require the mortgage (a) to deliver to the
mortgagor the mortgage deed and all documents
relating to the mortgaged property which are in the
possession or power of the mortgagee, (b) where the
mortgagee is in possession of the mortgaged
property, to deliver possession thereof to mortgagor,
and (c) at the cost of the mortgagor either to re-
transfer the mortgaged property to him or to such
third person as he may direct, or to execute and
(where the mortgage has been effected by a registered
instrument) to have registered an acknowledgment in
writing that any right in derogation of his interest
transferred to the mortgagee has been extinguished:
Provided that the right conferred by this section has
not been extinguished by the act of the parties or by
[decreel of a Court.
The right conferred by this section is called a right to
redeem and a suit to enforce it is called a suit for
redemption.
Nothing in this section shall be deemed to render
invalid any provision to the effect that, if the time
fixed for payment of the principal money has been
allowed to pass or no such time has been fixed, the
mortgagee shall be entitled to reasonable notice
before payment of tender of such money.
(Underlining is ours)
Mortgages are regulated in the province of Punjab by the
Punjab Redemption and Restitution of Mortgaged Lands Act,
-
I
qi..oqJnflzfli
S
1962 (hereinafter referred to as the "Mortgage Act"). For the
purposes of the present appeal, it may be prudent to
reproduce the relevant portions of the Mortgage Act for ease
of reference. Section 1 of the Mortgage Act deals with the
extent of the Act. It is reproduced below: -
1. Short title, cxLent and commencement
(1) This Act may be called the [Punjab] Redemption
and Restitution of Mortgaged Lands Act, 1964.
(21 It extends to the whole of the province of
[the Punjab], exce pt the Tribal Areas.
(3) It shall come into force in such areas and from
such dates as Government may, by notification in
the official Gazette, direct. (Underlining is ours)
Section 2 of the Mortgage Act deals with definitions. It is
reproduced below:
2. Definitions
In this Act, unless the context otherwise requires,
the following expressions shall have the meaning
hereby respectively assigned to them that is to say-
(a) 'Board of Revenue" means the Board of Revenue
established under the [Punjabi Board of Revenue Act,
1957;
(b)"Collector" means the Collector of the district in
which the mortgaged land or any part thereof is
situated, and shall include any Revenue
Officer specially empowered b y the Board of Revenue
to perform the duties of a Collector, for the purposes
of this Act;
[(c) "Commissioner' means a Commissioner of a
Division appointed under the Punjab Land Revenue
Act, 1967 (XVII of 1967) and includes an Additional
Commissioner;]
(d)"Government" means the [Provincial Government
of the Punjab];
(e)"land" means land which is not occupied as the
site of any building in a town or village and is
occupied or let for agricultural purposes or for
purposes subservient to agriculture or for pasture,
and includes-
(i) the sites of buildings and other structures
on such land;
-
I
Ct M?SAL .fl Cr20 6
9
(ii) a share in the profits of an estate or
holding;
(iii) a right to receive rent;
(iv) any right to water enjoyed by the owner or
occupier of land as such; and
(v) all trees standing on such land;
( "mortgagor" or mortgagee" includes the assiee
and the representative in interest of such
"mortgagor" or "mortgagee" as the case may be;
(g) "prescribed" mcans prescribed by rules made
under this Act. (Underlining is ours)
Section 3 of the Mortgage Act deals with petitions for
redemption of mortgaged land. It is reproduced below: -
3. Petition for redemption
After the principal money becomes due and before a
suit for redemption is barred, a mortgagor of land
not exceeding fifty acres in area or of land the
principal money secured by which does not exceed
five thousand rupees, ma y apply to the Collector for
an order directing that the mortgage be redeemed
and that he be put in possession.
Explanation I- The area of any share in the common
land of the village or of sub-division appertaining
thereto and mortgaged with the land, shall not be
taken into consideration while determining the area
of the land mortgaged.
Explanation II- This section shall not apply to
usufructuary mortgage effected for a specific number
of years and intended to terminate without the
repayment of any part of its consideration
Section 3 falls within Chapter 11 (i.e. Redemption of
Mortgages) of the Mortgage Act. The Mortgage Act has not
barred the jurisdiction of Civil Courts to adjudicate on
matters pertaining to redemption of mortgages insofar as
Chapter If is concerned.
8. It is important to note that at the time the
mortgage deed between Sooba Khan and Amar Chand was
executed in 1888 (i.e. before the UK's Land Property Act of
1925 was passed), it was normally assumed that once a
10
mortgagor had mortgaged his land, he had divested himself of
all interest in the land in lieu of the monies lent to him by the
mortgagee. This meant that Sooba Khan no longer had any
interest in the land until and unless he had paid the entire
Rs. 100/- lent to him by Amar Chand. The rationale behind
the entire divestiture of the land was that the mortgagor
would do everything in his power to repay the loan lent to him
in order to be reinvested with his proprietary interest in the
mortgaged land. If the capital sum had been paid by 1933, as
was claimed by the Appellants, then there was no need for the
revenue officials to cancel the mutation which cancelled the
mortgage in 1936. It can therefore be reasonably be presumed
that the capital sum had not been paid by 1936 and that
payment of the capital sum was still due on the Appellants.
However, keeping in view the equities of the parties when
entering into a mortgage deed, the mortgagor of a mortgage
would still retain the equitable right to redeem the property.
Under the law, that equitable remedy has been safeguarded
by Section 4 read with Section 3 of the Mortgage Act. Section
4 of the Mortgage Act reads as follows:-
4. Deposit of amount due under mortgage
The mortgagor shall in his application declare what
sum is to the best of his knowledge due under the
mortgage and deposit such sum with the Collector at
the time of making the application. (Underlining is
ours).
Admittedly, the Appellants have consistently taken the stance
that they had paid the capital sum back to Amar Chand in
1892 and therefore had been reinvested with their proprietary
interest in the land. If that is the case, then the Appellants
11
never filed a suit for redemption prior to the passing of the
Mortgage Act on the strength of Section 60 of the TPA 1882 in
order to redeem the suit land. Even after the Mortgage Act
was passed, the Appellants had failed to approach the
concerned Collector and file an application under Section 3 of
the Mortgage Act in order to redeem their property. Instead,
the Appellants instituted their declaratory suit in 1979 i.e.
ninety-one years after the mortgage had been made and forty-
three years after the mutation for cancellation of mortgage
had been cancelled by the revenue authorities. If the
averments of the Appellants are to be accepted, then the
mortgage was redeemed and a suit for declaration was the
correct course of action. If a suit for declaration was the legal
remedy available to the Appellants under the law, then the
suit of Appellants was blatantly time-barred in light of Article
120 the Limitation Act of 1908 since the suit had been filed
well after the six-year limitation period prescribed for the
filing of declaratory suits. On being confronted as to whether
the suit of the Appellants was time-barred or not if the
mortgage had indeed been redeemed in 1892, the Learned
Counsel for the Appellants has contended that limitation
would stop running in terms of Section 13 of the Limitation
Act, 1908 since Amar Chand had migrated to India after 1947
and therefore had become absent for the purposes of the said
Section. Section 13 of the Limitation Act is reproduced
below:-
13. Exclusion of time of defendants absence from
Pakistan etc. and certain other territories
It
Ct? 339 CW2OIO
2
In computing the period of limitation prescribed for
any suit, the time during which the defendant has
been absent from [Pakistan] and from the territories
beyond [Pakistan] under the administration of [the
[Federal] Government] shall be excluded.
We are afraid that the benefit of the said provision is not
attracted to the instant case since the Appellants have no
grievance against Amar Chand and their only grievance is
against the present Respondents. Therefore, Amar Chand
would not fall within the definition of a "defendant" for the
purposes of the Section 13 and as a result, limitation would
still run even after 1947. Even otherwise, the alternative suit
for redemption of the Appellants would be incompetent if it is
accepted that the Appellants had redeemed the property in
1892 since there would be no rights that would be left to
redeem. Therefore, it would seem that the Appellants still
retained the right to redeem the mortgage even after failing to
exercise their right to redemption within the prescribed period
of limitation. As a natural corollary, if the Appellants had the
right to redeem the land, then the subsequent mortgagee i.e.
the Central Government which had stepped into the shoes of
Amar Chand had been invested with all the mortgagee rights
associated with the suit land after the Land Settlement Act
was passed.
WAS THE CIVIL COURT THE COMPETENT FORUM TO
ADJUDICATE THE INSTANT MATTER?
9. If the Appellants had the right to redeem the suit
land, the next question would be whether the Civil Courts
were the competent forum for adjudicating the instant matter.
0
'I
t 4L P O9fl1k
13
In that respect, it may he prudent to reproduce Section 25 of
the Land Settlement Act. It reads as follows: -
25. Bar of jurisdiction
Save as otherwise provided in this Act, no civil or
revenue Court shall have jurisdiction in respect of
any matter which the Central Government or an
officer appointed under this Act is empowered by or
under this Act to determine, and no injunction or
process or order shall be granted by any Court or
other authority in respect of any action taken or to
be taken in exercise of any power conferred by or
under this Act.
In order to challenge an order passed under the Land
Settlement Act, the relevant provision of the Land Settlement
Act is Section 18. It is reproduced for ease of reference: -
18. Appeals
(1) Any person aggrieved by an order under this Act
may prefer an appeal to-
(a) the Deputy Settlement Commissioner
where an order has been passed by an
Assistant Settlement Commissioner;
(b) the Additional Settlement Commissioner
where an order, not being an order, passed in
appeal under clause (a), has been passed by
the Deputy Settlement Commissioner;
(c) the Settlement Commissioner where an
order, not being an order passed in appeal
under clause (b) or in revision under
subsection (3) of section 19, has been passed
by an Additional Settlement Commissioner;
and
(d)the Chief Settlement Commissioner, where
an order, not being an order passed in appeal
under clause (e) or in revision under
subsection (2) of section 19, has been passed
by a Settlement Commissioner.
(2) The appeal shall be presented within sixty days of
the date of the order appealed against, in such form
and manner as may be prescribed.
Settlement Laws were subsequently repealed in 1975 by
virtue of the Evacuee Property and Displaced Persons Laws
(Repeal) Act, 1975, (hereinafter referred to as the "Repealing
CMI .sccAL on?aP2!6
14
Act'). Section 2 of the Repealing Act is of paramount
importance for the purposes of the present appeal. It is
reproduced below for ease of reference:-
2. Repeal of certain laws
(1) The following Acts and Regulations are hereby
repealed, namely:-
(i) the Registration of Claims (Displaced
Persons) Act, 1956 (III of 1956);
(ii) the Pakistan Rchabilitation Act, 1956;
(iii) the Pakistan (Administration of Evacuee
Property) Act, 1957;
(iv)the Displaced Persons (Compensation and
Rehabilitation) Act, 1958;
(v) the Displaced Persons (Land Settlement)
Act, 1958;
(vi)the Scrutiny of Claims (Evacuee Property)
Regulation, 1961; and
(vii)the Price of Evacuee Property and Public
Dues (Recovery) Regulation, 1971.
(2) Upon the rcpeal of the aforesaid Acts and
Regulations, all proceedings which, immediately
before such repeal, may be pending before the
authorities appointed thereunder shall stand
transferred for final disposal to such officers as may
be notified by the joovernment] in the official Gazette
and all cases decided by the Supreme Court or [the
Lahore High Court] after such repeal which would
have been remanded to any such authority in the
absence of such repeal shall be remanded to the
officers notified as aforesaid.
(3) Any proceedin gs transferred or remanded to an
officer in pursuance of sub-section (2) shall be
disposed of by him in accordance with the provisions
of the Act or Regulation hereb y repealed to which the
proceedings relate.
(4) The final orders passed under sub-section (3)
shall be executed by the [Board of Revenue] in
accordance with the provisions of the Act or the
Regulation hereby repealed to which the proceedings
related. (Underlining and highlighting is ours)
Section 4 of the Repealing Act lays down the manner of how
residual work dealing with the repealed acts and laws are to
be disposed of. It is reproduced below for reference:-
15
4. Disposal of residual work
All the work regarding documentation, both for the
urban and rural properties, recovery of outstanding
transfer price, rent or mortgage money of such
property already disposed of and discharge of
miscellaneous liabilities out of these recoveries,
which may remain pending immediately before the
repeal of the aforesaid Acts and Regulations shall
stand transferred to the [Board of Revenuel.
Admittedly, the Appellants never challenged the mutation
which vested in the Central Government's mortgagee rights in
the suit property, until 1979 by approaching the Civil Court.
There is also nothing on the record to suggest that the
Appellants had ever approached the competent Revenue
Officials for resolving their grievance in light of the ouster of
jurisdiction in Section 25 of the Settlement Act. It was held by
a three-member bench of this Court in Member BOR PunjqM
and another vs. Mst. Siddipari through LRs and others (supra)
that:-
2. Learned counsel for the petitioner has argued that
as Pujara Ram and Roshan Das had failed to pay the
balance consideration, therefore, the land was
resumed as per the terms and conditions of auction.
However, when queried, neither the terms and
conditions pertaining to auction of government land
in relevant period nor any resumption order of the
land in dispute has been placed on the record.
Except for the bald allegation by the petitioner there
is no material to show if the auction purchaser had
defaulted in the payment of any balance
consideration or that the revenue authorities took
any action to confront or penalize the same. Anyhow,
entries in the revenue record show seizing of the land
in dispute by the rehabilitation authorities prior to
1957 who treated the property as an evacuee
property and in 1966 transferred it in favour of the
predecessor-in-interest of the respondents. It
Rerence is made to Azizuddin v. Muhammad Ismail
(1985 SCMR 666). Reference can be made to the
judgment dated 1-10-2014 of this Court passed in
Civil Appeal No.514/2008 tided tNasir Fahimuddin
and others v. Charles Philips Mills son of Patrick
_____
-
T 1
I.
16
Mills, resident of 4/2-A, Habib Ullah Road, Lahore
and others; besides the law laid down in
Muhammad Din and S others v. Province of the
Punjab through Collector and others (PLD 2003 Lab.
441)...
However, no challenge was thrown by the petitioner
or Mst. Hafeezan Khanum either before the
Custodian or before the Rehabilitation Department
against the issuance of the allotment order of 1966
or issuance of RL-11 to the respondent allottee. In
such circumstances the petitioner cannot take up
the plea that the allotment made in favour of the
respondents is invalid for any reason. Indeed, we are
not convinced that the property was resumed
because as mentioned above there is neither any
order of resumption available on record, nor are the
terms and conditions of auction postulating that
auctioned land could be resumed for non-payment of
one instalment. Admittedly, only a small amount was
payable by Pujara Ram etc; and without a clear legal
basis, the presumption of cancellation of auction sale
and resumption of auctioned land is a harsh
measure that we cannot approve. Resultantly, we do
not find this case to be fit for interference. Dismissed
accordingly. (Underlining and Highlighting is ours)
It would have been appropriate for the Appellants to challenge
the allotment made by the then Settlement Officers by
exercising their right to appeal provided in Section 18 of the
Land Settlement Act. However, the Appellants never
challenged these allotments and also failed to approach the
competent forum (i.e. the competent Revenue Officer after the
Repealing Act) for redressal of their grievances qua the suit
land. While there may be no ouster of jurisdiction in the
Mortgage Act with respect to redemption of property, there is
a clear ouster of jurisdiction with respect to mortgaged land
that has subsequently been declared an evacuee property
under Section 25 of the Land Settlement Act read with
Section 2 of the Repealing Act.
9. We have gone over the judgements relied on by the
Learned Counsel for the Appellants and found them to be
distinguishable on facts. The same are of no help to the
I
c MflAL AU a,c OF1
17
Appellants seen in the context of the present Appeal. The
Learned Counsel for the Appellant has failed to point out any
ground which could reasonably persuade us to take a view
different from the one taken by the High Court and to hold
that the Revenue Department was not the competent forum
and that the Civil Court had exclusive jurisdiction to
adjudicate on the matter. The Learned Counsel also could not
point out any mis-reading or non-reading of evidence by the
High Court. We therefore conclude that even if the Appellants
may have had the equitable right to redeem their property,
their right to redeem the property stood extinguished after
non-payment of the mortgage money within sixty years of the
mortgage (i.e. till 1976 after taking into consideration the
limitation period that stood frozen (from 1947 to 1960)until
the suit land was allotted to the predecessor-in-interest of
Respondents No.5 to 11 for the first time in 1960).Even
otherwise, the entire proceedings before the Civil Court were
corarn non judice in light of the ouster of jurisdiction as per
Section 25 of the Settlement Act. The Trial Court as well as
the Learned High Court had rightly dismissed the suit of the
Appellants owing to a lack of jurisdiction to adjudicate the
matter.
10. In light of what has been discussed above, the
Learned Trial Court, and subsequently, the Learned High
Court had correctly come to the conclusion that the Civil
Court was not the appropriate forum for adjudicating the
present matter. As a result, the Learned High Court had
-I
cAt A Ft€AL O tOfl9 2016
18
It
rightly set aside the judgement of the Appellate Court and
restored the judgement and decree of the Trial Court. The
Impugned Judgement dated 09.12.2015 passed by the Lahore
High Court, Rawalpindi Bench, Rawalpindi is accordingly
upheld. This appeal is accordingly
ISLAMABAD. THE
23 of June, 2022
Kh 1 Sahibzada, LC 261*
7SAPPROVED FcownNG*
-1
-.
| {
"id": "C.A.339_2016.pdf",
"url": ""
} |
In the Supreme Court of Pakistan
(Appellate Jurisdiction)
Present:
Mr. Justice Anwar Zaheer Jamali, HCJ
Mr. Justice Amir Hani Muslim
Mr. Justice Umar Ata Bandial
Civil Appeal No.340 of 2002.
(On appeal from judgment of Lahore High Court, Multan Bench
dated 08.12.1999, passed in Writ Petition No.5566 of 1999)
Muhammad Anwar
…Appellant
Versus
Muhammad Akram & others
… Respondents
For the appellant:
Mr. Arshad Ali Chaudhry, ASC/AOR.
For respondent No.1:
Mr. Tauseef Ejaz Malik, ASC.
along with the respondent.
For the State:
Mr. Ahmed Raza Gillani, Addl.P.G, Punjab.
Date of hearing:
28.10.2015
JUDGMENT
Anwar Zaheer Jamali, C.J. – This civil appeal with leave of
the Court arises out of the order dated 08.12.1999, passed by a learned
Division Bench of the Lahore High Court, Multan Bench, in Writ Petition
No.5566/1999, whereby the requisite relief, as prayed for by
respondent No.1 was granted to him by placing reliance upon the cases
cited as Javed Shaikh v. The State (1985 SCMR 153), Shah Muhammad
alias Manna v. State (1994 SCMR 582), and 1987 SCMR 36 (no citation
available on this page).
C.A No.340/2002
2
2.
Briefly stated relevant facts of the case are that in FIR
No.240, dated 14.7.1992, registered at P.S Muzaffarabad, under section
302, PPC, respondent No.1 was the sole nominated accused with the
allegations that he has committed qatl-i-amd of his wife Mst. Azhra
Parveen, three minor daughters Mst. Shagufta, Kiran and Aneeqa and
his minor son Waqar, by cutting their throats with chhuri. After
conclusion of the trial, respondent No.1 was found guilty for the
charged offence and accordingly convicted vide judgment dated
13.6.1993 and sentenced as under:-
“18.
….. In the circumstances of the case I convict Muhammad
Akram accused under Section 302(a) PPC for causing Qatl-e-amd of
his wife Mst. Azra Parveen as qusas and award him death penalty. He
has murdered his four children namely Shugufta, Kiran and Aneeqa
his daughters and his son Waqar. In accordance with Section 306(b),
PPC he has caused the death of his four children and committed qatl-
e-amd not liable to qisas. It was argued on behalf of the learned
counsel for the complainant that section 302(b) applied to the Qatl-
e-amd of all the children but I feel that the accused is guilty under
Section 308 PPC and is liable to pay diyat amounting to Rs. One lac
seventy thousand on four counts as envisaged under Section 323
PPC. He is also convicted under Section 308(2) PPC for causing the
death of his four children namely Shugufta, Kiran and Aneeqa his
daughters and his son Waqar, as tazir and is ordered to suffer
imprisonment for fourteen years on each count. In case he does not
pay diyat, it may be recovered from his properly, if any, which will be
given to the legal heirs of the deceased children. In case his death
sentence is commuted, the sentences awarded to him under Section
308(2) PPC shall run consecutively as he has taken the lives of his
wife and his four children. The provisions of Section 382-B, Cr.P.C are
not extended in favour of the accused. …..”
C.A No.340/2002
3
3.
His appeal before the Supreme Appellate Court Lahore,
was also dismissed vide judgment dated 09.4.1994, however with
modification in the quantum of sentence, which reads thus:-
“We find great force in the submission of the learned defence
counsel that conviction and sentence of the appellant under section
302(a) PPC with respect to the murder of Mst. Azra Parveen is not
sustainable in the eye of law in view of the provisions of sections 306
and 307 PPC, as the appellant being her husband is her wali, so we
alter the conviction of the appellant under section 302(a) PPC to one
under section 308 PPC and award him sentence of fourteen years R.I.
and also direct him to pay diyat amounting to Rs.1,70,000/-. The
sentences of imprisonment awarded to the appellant under section
308 PPC on five counts shall run consecutively.”
4.
On 15.6.1999, respondent No.1, who was in custody and
serving his sentence, filed a writ petition before the Lahore High Court,
Multan Bench with the prayer that different sentences awarded to him
may be ordered to run concurrently instead of consecutively, as
ordered by the trial Court and the appellate Court. This petition was
heard by a learned Division Bench in the Lahore High Court and allowed
vide impugned judgment 08.12.1999.
5.
We have heard the arguments of learned ASC for the
appellant. He strongly contended that respondent No.1 is guilty of
committing brutal murder of his wife, three minor daughters and a
minor son and it was in this background that the trial Court as well as
the appellate Court for valid reasons recorded in their respective
judgments had ordered that the sentences awarded to him shall run
consecutively, but this aspect of the case was unfairly ignored and done
C.A No.340/2002
4
away by the learned Division Bench in the High Court in a cursory
manner, by placing reliance upon certain judgments, which too were
not only distinguishable to the facts of the case in hand, but also
subsequently reviewed by a larger bench of the Apex Court.
6.
The learned Additional Prosecutor General, Punjab on
behalf of the official respondents strongly supported the case of the
appellant and placed reliance upon the following cases to show that the
case cited in the impugned judgment have already been reviewed:-
a.
Bashir v. The State (PLD 1991 SC 1145).
b.
Muhammad Arshad v. The State (PLD 2011 SC 310).
c.
Ali Khan Kakar v. Hammad Abbasi (2012 SCMR 334).
7.
Besides, he referred some other cases to show that in the
facts and circumstances of the case, awarding of different sentences
with directions that the same shall run consecutively was in accordance
with law. Thus, no interference was called for from the High Court while
exercising its jurisdiction under Article 199 of the Constitution, which is
discretionary in nature and not at all meant to perpetuate injustice of
such nature.
8.
The learned ASC for respondent No.1, when confronted
with the above stated facts and the law cited at the bar, did not dispute
the position either on facts or law, but submitted that since the
respondent No.1 was wali of the victims of the incident, therefore, a
lenient view in the matter, as taken by the High Court in its impugned
judgment, is justified.
C.A No.340/2002
5
9.
We have carefully considered the arguments of learned
ASCs and perused the material placed on record. There is no dispute as
regards the relevant facts of the case noted above that respondent
No.1 was found guilty for committing qatl-i-amd of his wife, three
daughters and a son in a brutal manner and for that account,
consciously the trial Court, while awarding sentence to him, had
ordered that the same shall run consecutively, and in addition to it, he
was also held liable to pay diyat amount at the rate of Rs.1,70,000/- per
victim. The appellate Court had also consciously examined this aspect
and concurred with such view looking to the nature of the occurrence.
10.
The discretionary power vested in the Court to direct that
the awarded sentences to run consecutively or concurrently is to be
exercised in the light of the facts and circumstances of each case,
keeping in view the scope of section 35 of the Code of Criminal
Procedure, 1908, the nature and manner of occurrence and the gravity
of the offence. Thus, it seems quite strange and unreasonable that
through impugned judgment, the learned Division Bench of the High
Court had done away with the conditionality of such sentences while
exercising writ jurisdiction under Article 199 of the Constitution, which
is equitable and discretionary in nature and not meant to give premium
to a criminal for commission of such heinous crime. A reference to the
above cited judgments makes it abundantly clear that the citations
referred and relied upon by the High Court in its impugned judgment
were reviewed by a larger bench of the apex Court and in one of these
C.A No.340/2002
6
cases Ali Khan Kakar v. Hammad Abbasi (2012 SCMR 334), while
considering a similar request in review jurisdiction, the conviction of the
accused, who was awarded total sentence of 300 years imprisonment,
was upheld.
11.
From the material available before us, we have seen that a
sum of Rs.8,50,000/- has been deposited by respondent no.1 in Court
towards payment of diyat amount. It is, therefore, ordered that this
amount may be paid to the legal heirs of the deceased, as mandated by
law.
12.
Foregoing are the reasons for our short order in this
appeal, which is reproduced as under:-
“We have heard the arguments of learned ASCs and perused the
case record. For the reasons to be recorded separately, this appeal is
allowed and the impugned judgment dated 08.12.1999 is set aside.
Respondent No.1 Muhammad Akram, who is present in Court, is ordered to
be taken into custody to serve the remaining sentence in terms of the
judgment of the Supreme Appellate Court dated 09.04.1994 passed against
him.”
Islamabad,
28th October, 2015.
Approved for reporting.
تﻗادﺻ
Chief Justice
Judge
Judge
| {
"id": "C.A.340_2002.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
PRESENT:
Mr. Justice Umar Atta Bandial
Mr. Justice Sajjad Ali Shah
Mr. Justice Sayyed Mazahar Ali Akbar Naqvi
Civil Appeal No. 346 of 2020.
(Against the judgment dated 14.1.2020 passed by the
Lahore High Court Multan Bench in CR No.903-D of 2009)
Sardar Muhammad and others.
… Appellant
Versus
Imam Bakhsh (decd) thr. LRs and others.
… Respondents
For the Appellant (s)
:
Mr. Ghulam Nabi, ASC.
For the Respondents 3-9:
:
Malik Javed Akhtar Wains, ASC.
For the LRs of Respondents
No. 1 and 2:
:
Ex parte.
Date of Hearing
:
15.12.2020
Judgment
Sajjad Ali Shah, J. This appeal arises from the judgment of the
Lahore High Court whereby the said Court while reversing the concurrent
findings of the Courts below, dismissed the suit filed by the appellant
against the respondents seeking setting aside of orders dated 26.3.2002
and 19.8.2003 passed by the Deputy District Officer (DDO) & Executive
District Offer (Revenue) (EDO) respectively. Cancellation of registered sale
deed dated 29.3.2002 executed by one Imam Bakhsh predecessor in
interest of respondent No.1, in favour of predecessor in interest of
respondents No. 2 to 9 was also sought.
2.
We are informed that the legal heirs of respondent No.1 and
Respondent No. 2, in person, have refused to receive the notices. As a
result, they are proceeded against ex parte.
CA 346 of 2020
2
3.
Briefly, on 8.3.2002 Imam Bakhsh filed an appeal before the
Deputy District Officer (Revenue) Lodhran seeking cancellation of sale
mutation No. 4855 dated 28.2.2002 effected in favour of appellants on the
ground that it was procured through misrepresentation and fraud. The
DDO (R) Lodhran, after hearing the parties, vide order dated 26.3.2002
cancelled the mutation by holding that Imam Bakhsh was an old and sick
man from whom lying was not expected and, therefore, his contention that
the mutation was obtained through misrepresentation and fraud is to be
given due weight. The record further reflects that on 29.3.2002, merely
three days after the cancellation of sale mutation in favour of appellant, the
said Imam Bakhsh, through registered sale deed, conveyed the same
property to respondents No. 2 to 9. The appellant on 30.3.2002 challenged
the said order of the DDO (R) before the Executive District Officer (Revenue)
who vide order dated 19.8.2003 rejected the appeal on the ground that a
registered sale deed could only be cancelled by a Court of competent
jurisdiction. This gave rise to the present appellant to file a suit against the
respondents challenging the order dated 26.3.2002 of DDO (R) and order
dated 19.8.2003 of the EDO (R) alongwith seeking cancellation of the
registered sale deed. The trial Court on 28.10.2008 decreed the suit as
prayed for. Respondents No. 2 to 9 filed appeal which did not find favour
with the appellate Court and was dismissed on 4.9.2009. The respondents
thereafter filed a revision petition before the Lahore High Court which after
hearing the parties, was allowed through the impugned judgment by setting
aside the concurrent findings of the Courts below.
4.
Learned counsel for the appellants while inviting our attention
to mutation No. 4855 (at page 83) contended that the said mutation was
carried out in jalsa-e-aam in presence of two witnesses viz. Muhammad
Akmal and Muhammad Nawaz which records unequivocal sale of the
subject land in favour of the appellant by the respondent Imam Bakhsh
CA 346 of 2020
3
against the sale consideration of Rs.1,20,000/- and such mutation could
not have been cancelled by the DDO(R) on assumptions and presumptions.
Per counsel, since the record did not require any rectification, therefore, the
jurisdiction of the DDO (R) was not attracted. It was contended that the
plea of fraud requires adjudication through evidence, a process which could
not be adopted by the DDO (R) as proceedings before him are summary in
nature. It was next contended that the findings of the learned High Court
that the mutation was not effected in jalsa-e-aam are contrary to record. It
was further contended that Imam Bakhsh never disputed the mutation
entry but challenged it on the ground of fraud, therefore, the burden was
upon Imam Bakhsh to prove the fraud, consequently, the appellants could
not be non-suited by placing burden to prove the sale mutation. It was also
contended that it is a settled law that the concurrent findings of fact are not
to be interfered with by the High Court while exercising revisional
jurisdiction and such principle was totally ignored.
5.
On the other hand, learned counsel for the respondents
contends that the findings of the DDO (R) declaring the mutation entry No.
4855 as procured through fraud and misrepresentation has attained
finality and, therefore, at this juncture could not be interfered with. It was
next contended that the respondents have purchased the subject land with
clear title through a registered conveyance deed after the earlier sale
mutation was cancelled and being bona fide purchasers, their sale deed
was rightly restored by the High Court and such findings do not require
any interference. It was lastly contended that the appellants have totally
failed to prove the oral sale agreement which resulted mutation No. 4855
and has further failed to bring into the witness box one of the attesting
witness and the concerned Tehsildar who recorded the mutation entry.
6.
We have heard the learned counsel for the respective parties
and have minutely perused the record. The primary question which
CA 346 of 2020
4
requires our attention is as to whether the DDO (R) had the power to strike
off a sale mutation carried out in a jalsa-e-aam in the presence of witnesses
on the ground that such sale was procured through misrepresentation and
fraud and if the answer is in the negative, whether the subsequent sale
deed in the peculiar circumstances of this case would fall to the ground. It
has been repeatedly held, and the law itself provides that the proceedings
before the Revenue Officer or before the Revenue Courts are summary in
nature and, therefore, complicated questions of law and disputed question
of fact are not to be adjudicated in the hierarchy. The determination of
complicated questions of law and disputed questions of fact fall within the
sole domain of the civil Court. The plea of the respondents that the
mutation entry No. 4855 was procured through fraud, in our opinion, could
not have been decided in proceedings which are summary in nature as
such controversy requires adjudication by allowing the parties to adduce
evidence in support of their respective claims. There is no doubt in our
minds that the DDO (R) transgressed his limits by declaring mutation No.
4855 as having been obtained through fraud and misrepresentation.
7.
The provisions of Section 172 of the West Pakistan Land
Revenue Act, 1967 allocate certain matters to the sole competence of the
Revenue authorities, to the exclusion of civil courts. However, it must be
noted that Section 172 only empowers Revenue authorities to exercise
administrative powers; the raison d’etre for the same is that the
proceedings conducted by a Revenue Officer or a Revenue Court are
summary in nature; they possess a limited scope of enquiry and do not
possess the characteristics of a civil suit that necessitates framing of the
issues or recording evidence of the parties, as such matters fall within the
sole domain of the civil courts. Besides, Section 172(2)(xvi) of the Act, 1967
leaves the adjudication of plea of fraud to the competence of the civil
courts. Resultantly, once the appellants have successfully proved that the
CA 346 of 2020
5
sale mutation in their favour was struck off by DDO (R) illegally without
jurisdiction and that the respondents No. 2 to 9 before purchasing the
subject property had notice of such fact, then the sale deed in their favour
automatically has to give way to the subject mutation no sooner it is
revived. Reference can be made to the case of Noor Muhammad vs. Allah
Ditta (PLD 2009 Supreme Court 198), Fida Hussain vs. Abdul Aziz (PLD
2005 Supreme Court 343), Abad Muhammad (thr. LRs) vs. Mst. Sakina and
another (PLJ 1987 (d) Revenue 22) and Mst. Surraiya Bano vs. Nazia Bano
(1996 CLC 1690).
8.
Additionally, the High Court against all the settled principles of
law, has very lightly brushed aside the concurrent findings of the Courts
below where it was specifically taken note of the fact that after three days of
the cancellation of such mutation, the respondent Imam Bakhsh has sold
out the property to the respondents coupled with the statement of DW-1
who categorically stated that when they purchased the subject land from
Imam Bakhsh on 29.3.2002 through sale deed, he was hardly of 65 years,
mentally fit, with the addition that his father in whose name the sale deed
was executed by Imam Bakhsh had helped Imam Bakhsh in pursuing the
appeal before the DDO (R) seeking cancellation of subject mutations in
favour of appellants. Thus, the two concurrent findings of fact not only
negate the facts on the basis whereof DDO (R) had cancelled the subject
mutation but also destroyed the plea of the respondents that they were
bona fide purchasers for valuable consideration without notice. Our perusal
of the record further clearly demonstrates that the appellant, though it was
not required of him, had not only produced one of the witnesses of the sale
mutation but also produced Muhammad Ajmal and Wahid Bakhsh
Patwaris who had not only supported the sale but also deposed that at the
relevant time Imam Bakhsh was perfectly in good physical and mental
health. Consequently, once the appellants have successfully proved that
CA 346 of 2020
6
the sale mutation in their favour was struck off by DDO (R) illegally without
jurisdiction and that the respondents No. 2 to 9 had notice of such fact,
then the sale deed in their favour automatically has to give way to the
subject mutation. However, it was open for Imam Bakhsh to question such
mutation on the stated ground before a Court of original civil jurisdiction
which could have competently decided such lis.
9.
For what has been discussed above, this appeal is allowed by
setting aside the impugned judgment of the High Court and restoring the
judgments of the Courts below. No orders as to costs.
Judge
Judge
Islamabad, the
15th December, 2020
A.Rehman
Judge
Approved for Reporting.
| {
"id": "C.A.346_2020.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE EJAZ AFZAL KHAN.
MR. JUSTICE MAQBOOL BAQAR.
MR. JUSTICE IJAZ UL AHSAN.
CIVIL APPEAL NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015
AND CIVIL APPEALS NO. 632 TO 673 OF 2017
(On appeal against the judgment dt. 03.06.2014 passed by the Peshawar
High Court, Peshawar in W. P. No. 3324 of 2011 and the judgment dt.
16.01.2017 passed by the Lahore High Court, Lahore in Intra Court Appeals
No. 120 to 146 and 148 to 156 of 2016 and 460 to 464 and 991 of 2016).
Bahadur Khan and others.
(in CA.353/15).
National Bank of Pakistan thr. its President/
Board of Directors, Lahore.
(in CAs.632-673/15).
…Appellant(s)
Versus
Federation of Pakistan thr. Secy., M/o Finance,
Islamabad and others.
Iftikhar Rasool Anjum and others.
Badar-uz-Zaman and another.
Ch. Muhammad Mushtaq Cheema and others.
Muhammad Arshad Sheikh and another.
Abdul Waheed and others.
Muhammad Sharif and others.
Saif ullah Khan and others.
Javed Akhtar Khan and others.
Riaz Ahmad Malik and another.
Muhammad Nawaz Farooqi and others.
Umar Hayat Khawaja and others.
Mrs. Bushra Khanum and others.
Shaukat Ali Bhatti and others.
Sardar Muhammad Ahmad and others.
Muhammad Sharif Ch. And others.
Muhammad Shamim Akhtar and others.
Muhammad Rashid Butt and another.
Syed Ijaz Hussain and another.
Muhammad Iqbal Qadar and others.
Muhammad Rafique Goraya and others.
Asad Ullah Khan Leghari and others.
Muhammad Afsar Khan and others.
Furrukh Sair Ahmad and others.
Ghulam Rasool Shai and others.
Ihsan Ul Haq and another.
Syed Iqbal Hussain Shah and others.
Asif Saeed and others.
Muhammad Ilyas Ch. And others.
Jan Muhammad and another.
Shafqat Mehmood and another.
Ateeq Qamar and others.
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015
AND CIVIL APPEALS NO. 632 TO 673 OF 2017
2
Kokab Iqbal and others.
Mushtaq Ahmed and others.
Allah Ditta and others.
Afzal Anwar and others.
Nisar Ahmed and another.
Muhammad Nawaz Cheema and others.
Muhammad Saeed and others.
Abdul Samee Khan and others.
Muhammad Riaz Raza and another.
Munir Ahmed and others.
Agha Bilal Ahmed Khan and others.
…Respondent(s)
For appellant No. 1:
Mr. Abdul Rahim Bhatti, ASC.
Mr. Abdul Rehman Khan, ASC.
Syed Rafaqat Hussain Shah, AOR.
(in CA.353/15).
For appellant No. 2:
Mr. Salman Akram Raja, ASC.
(in CA.353/15)
Mr. Khalid Anwar, Sr. ASC
Kh. Muhammad Farooq, Sr. ASC
Syed Rafaqat Hussain Shah, AOR.
(in CAs.632-673/17).
For the respondent(s):
Mr. Sohail Mehmood, DAG.
Munir Ahmed, J.S. M/o Finance.
Abid Channa, S.O. M/o Finance.
For respdt. No. 1 :
Mr. Salman Akram Raja, ASC.
(in CA.632/17)
Mr. Hashmat Ali Habib, ASC.
Mr. M. S. Khattak, AOR.
(in CAs. 633, 634, 636, 638, 639, 643, 646, 649,
650, 652, 653, 654, 656, 658, 659, 660, 662, 666,
and 670 of 2017).
Mr. Faiz Rasool Jalbani, ASC.
(in CAs. 644, 645, 648, 657, 661, 664, 667, 669 and
671 of 2017).
In person :
Umer Hayat Khawaja.
Akbar Ali.
Syed Jehangir.
In CMAs. 1493 & 2079/15: Mr. Abdul Rahim Bhatti, ASC.
Mr. Abdul Rehman Khan, ASC.
Syed Rafaqat Hussain Shah, AOR.
Date of Hearing:
14.06.2017, 15.06.2017 & 16.06.2017.
(Judgment Reserved).
……………………
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015
AND CIVIL APPEALS NO. 632 TO 673 OF 2017
3
J U D G M E N T
EJAZ AFZAL KHAN, J.- These appeals with the leave of the
Court have arisen out of the judgment dated 16.01.2017 of a Division Bench
of the Lahore High Court whereby it dismissed the Intra Court Appeals filed
by the appellants and thus upheld the judgment dated 15.01.2016 of the
said High Court whereas C. A. No. 353 of 2015 has arisen out of the
judgment dated 03.06.2014 of a Division Bench of the Peshawar High Court
whereby it dismissed the petition filed by the appellants.
2.
Learned Sr. ASC appearing on behalf of the National Bank
contended that neither the letter dated 30.11.1977 issued by the Finance
Division, Government of Pakistan nor the Circular No. 228(C) dated
26.12.1977 issued by the National Bank of Pakistan implementing the terms
and conditions set out in the letter dated 30.11.1977 could be said to have
been issued in exercise of the rule making powers under Section 20 of the
Banks Nationalization Act, therefore, they have no statutory sanction
behind them. He next contended that where the notification and the
circular stating terms and conditions of service appear to be purely
administrative or executive instructions, they cannot be treated as statutory
instruments, the more so when, they have not been published in the official
gazette. Whatever attire, the learned ASC maintained, the respondent
may put on the notification it could not have a statutory status if seen in the
light of the judgment rendered in the case of Mustafa Impex. Vs.
Government of Pakistan (PLD 2016 SC 808). He next contended that with
the dissolution of Pakistan Banking Council through Banks (Nationalization)
(Amendment) Act XVIII of 1997 the Board of the Bank became more
autonomous and independent and as such they shaped policies and
determined the terms and conditions of service of their officers and
executives keeping in view the emerging competitive environment. The
Board, the learned Sr. ASC maintained, accordingly issued Circular No.
3799 dated 16.06.1999, revised the pay structure and the pension factor of
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015
AND CIVIL APPEALS NO. 632 TO 673 OF 2017
4
the officers and executives of the Banks; that the circular was accepted
and acted upon by the officers and the executives without any qualms for
more than a decade; that once it was accepted and acted upon, it could
not be questioned by them under any canons of law and propriety and
that neither the Single Judge hearing the writ petitions nor the Division
Bench of the Lahore High Court hearing the Intra Court Appeals
appreciated the content and the context of the Circular while handing
down the impugned judgments. Writ petitions of the respondents, the
learned Sr. ASC argued are also hit by the principle of approbation and
reprobation inasmuch as they damn the decrease in the pension factor
without refunding what they received consequent upon the revision of the
pay scale. Such petitions, the learned Sr. ASC argued, are hit by the
principle of laches when they were instituted ten years after the issuance of
the circular dated 16.6.1999. The learned Sr. ASC lastly argued that where
the notification dated 30.11.1977 nor the Circular dated 26.12.1977 can be
held to be statutory by any attribute, the writ petitions filed by the
respondents merited outright dismissal. The learned Sr. ASC to support his
contentions placed reliance on the case of Muhammad Zaman and others.
Vs. Government of Pakistan through Secretary, Finance Division (Regulation
Wing), Islamabad and others (2017 SCMR 571).
3.
Learned ASC appearing on behalf of the appellant in CA. No.
353 of 2015 and respondents in CA. Nos. 632 to 673 of 2017 contended that
the letter dated 30.11.1977 issued by the Finance Division, Government of
Pakistan and the Circular No. 228(C), dated 26.12.1977 issued by the
National Bank of Pakistan having all the traits and trappings of statutory
rules are binding on the National Bank of Pakistan, therefore, any departure
from either of them would be amenable to the constitutional jurisdiction of
the High Court. The learned ASC to support his contention placed reliance
on the case of Khawaja Abdul Hameed Nasir and others. Vs. National Bank
of Pakistan and others (2003 SCMR 1030). Learned ASC next contended
that appointment of the Pay Commission for Banks and Financial
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015
AND CIVIL APPEALS NO. 632 TO 673 OF 2017
5
Institutions, issuance of notification dated 30.11.1977 of the Finance Division,
Government of Pakistan, issuance of orders by the Banking Council to the
Bank and finally issuance of Circular No. 228(C), dated 26.12.1977 in
compliance with the order of the Banking Council have a statutory
backing, therefore, it is beyond the power and competence of the Board
of Directors of the National Bank of Pakistan to change any of the terms
and conditions governing the pay and pension of its officers and
executives to their disadvantage. The learned ASC to support his
contention placed reliance on the case of Muhammad Tariq Badar and
another. Vs. National Bank of Pakistan and others (2013 SCMR 314). The
learned ASC further contended that the notification issued by the Finance
Division Government of Pakistan and Circular No. 228(C) issued by the Bank
could be treated at par with the statutory rules when they have been
acted upon for decades and decades together. The learned ASC to
support his contention placed reliance on the cases of Pakistan. Vs. Sheikh
Abdul Hamid (PLD 1961 SC 105), Dr. Habibur Rahman. Vs. The West Pakistan
Public Service Commission, Lahore and 4 others (PLD 1973 SC 144), Khan
Faizullah Khan. Vs. Government of Pakistan through the Establishment
Secretary, Cabinet Secretariat and another. (PLD 1974 SC 291). Reduction in
pension factor, the learned ASC added, from 70% to 33% cannot be
justified under any principle of law and jurisprudence when the
recommendations of the Pay Commission, orders of the Banking Council,
notification issued by the Finance Division, Government of Pakistan and the
Circular issued by the Bank no where limited their efficacy in terms of time.
Failure to have the notification published in the official gazette, the learned
ASC maintained, cannot shear it of its efficacy or make it non-statutory. To
support his contention learned ASC placed reliance on the cases of Saghir
Ahmed through legal heirs. Vs. Province of Punjab through Secretary
Housing and Physical Planning, Lahore and others (PLD 2004 SC 261),
National Bank of Pakistan. Vs. Manzoorul Hassan. (1989 SCMR 832) and
Pakistan. Vs. Sheikh Abdul Hamid (PLD 1961 SC 105). Learned ASC in the
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015
AND CIVIL APPEALS NO. 632 TO 673 OF 2017
6
alternative argued that even if the terms and conditions regulating pension
have their origin in a contract, the Board of Directors could not unilaterally
amend them without the consent of the stakeholders. In support of his
contention learned ASC placed reliance on the case of Nighat Yasmin. Vs.
Pakistan International Airlines Corporation, Karachi and another (2004
SCMR 1820). The learned ASC lastly argued that where pension is not only a
vested but a recurring right, laches or any other inaction for a short span of
time cannot extinguish it. The learned ASC to support his contention placed
reliance on the cases of Pakistan Telecommunication Employees Trust
(PTET) through M. D., Islamabad and others. Vs. Muhammad Arif and others.
(2015 SCMR 1472), Secretary, Government of Punjab, Finance Department
and 269 others. Vs. M. Ismail Tayer and 269 others (2015 PLC(CS) 296),
Constitution Petition No. 127 of 2012, decided on 11.04.2013 regarding
Pensionary Benefits of the Judges of Superior Court (PLD 2013 SC 829),
Pakistan Muslim League (N) through Khawaja Muhammad Asif, M.N.A. and
others. Vs. Federation of Pakistan through Secretary Ministry of Interior and
others (PLD 2007 SC 642), Pakistan Tobacco Company Ltd. and another. Vs.
Federation of Pakistan through Secretary, Ministry of Commerce, Islamabad
and 3 others (1999 SCMR 382), Civil Aviation Authority, Islamabad and
others. Vs. Union of Civil Aviation Employees and another (PLD 1997 SC 781),
Shahid Pervaiz. Vs. Ejaz Ahmad and others, etc. (2017 SCMR 206),
Muhammad Mubeen-us-Salam and others. Vs. Federation of Pakistan
through Secretary Ministry of Defence and others (PLD 2006 SC 602) and I.
A. Sharwani and others. Vs. Government of Pakistan through Secretary
Finance Division, Islamabad and others. (SCMR 1991 1041).
4.
We have carefully gone through the record and considered
the submissions of the learned Sr. ASC/ASCs for the parties as well as the
learned DAG.
5.
The
background culminating in the issuance of the
notification dated 30.11.1977 and the circular dated 26.12.1977 is that a
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015
AND CIVIL APPEALS NO. 632 TO 673 OF 2017
7
Pay Commission through a resolution dated 28.05.1977 was constituted by
the Government of Pakistan with the following terms of reference:
(i)
To examine:-
(a)
the existing salary structure and all other types of
allowances, amenities and facilities, including post-retirement
benefits, and all such increase therein as may have been
sanctioned recently, admissible to all categories of staff and
employees in the nationalized banks including State Bank of
Pakistan and financial institutions;
(b)
the principles on which they are based and the basic terms
and conditions governing their admissibility;
(c)
the inter-se relationship of the salaries and allowances and
other amenities, facilities and benefits and the underlying
principles and justification of the same; and
(d)
the problems that may arise and the adjustments that may
be necessary as a consequence of the scheme of merger of the
nationalized banks already approved by the Government.
(ii)
To make recommendations:-
(a)
on the need, if any , and the manner in which the existing
salary structure and other emoluments and the terms and
conditions governing them should be rationalized or otherwise
modified taking into account the qualifications and experience
required for each grade or scale of pay and the allowances and
perquisites attached thereto; the responsibilities which to be
discharged at various levels; and the prospects of promotion or
vertical mobility in each nationalized bank and financial institution;
(b)
on the treatment that may be given and the adjustments
that should be made in the pay and emoluments of the staff and
employees of a nationalized bank which is to be merged with
another;
(c)
on the need if any, and the extent to which the existing
emoluments and other conditions of service require modification,
taking into account the economic conditions in the country and
the terms of conditions of service in general and those
incomparable undertakings in particular, the size, financial sources
and viability of each nationalized bank or financial institution, the
role assigned to each in the national economy, the socio-
economic goals and all such other relevant factors;
(d)
on the ways and means of keeping the terms and
conditions of service in the banking sector in line with changes in
the national economy, considering the need of all times for an
efficient and smooth banking service to the community; and
(e)
on any other matter which the Commission may consider
relevant to its terms of reference.”
The commission having considered the socio-economic conditions, the size,
financial resources and viability of each nationalized Bank and financial
institution made recommendations. The Federal Government following the
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015
AND CIVIL APPEALS NO. 632 TO 673 OF 2017
8
recommendations issued the notification dated 30.11.1977 while the Bank
following the notification issued circular No.228(c) dated 26.12.1977.
6.
What did the Banking Council stand for, what powers did it
exercise and what functions did it perform under the Banks Nationalization
Act before its amendment are the questions which have been answered
by Section 9 of the Act itself which reads as under:-
“9. Pakistan Banking Council. –(1). This section and section 11 shall
apply to the banks mentioned in the Schedule and any new bank
which may be constituted after the commencing day, whether by
merger or reorganization of the said banks or under the
Companies Act, 1913 (VII of 1913).
(2)
The Federal Government shall, by notification in the official
Gazette, constitute a Council to be called the Pakistan
Banking Council and consisting of –
(i) A Chairman;
(ii) A Deputy Governor of the State Bank;
(iii) An official of the Ministry of Finance, Government of
Pakistan; and
(iv) Not more than five and not less than three members;
Provided that not less than three members shall be full time
members one of whom shall be appointed by the Federal
Government to be the Secretary of the Council.
(3)
The Council shall be a body corporate having perpetual
succession and a common seal, with power to acquire and hold
property, and shall be the name given to it by subsection (2) sue
and be sued.
(4)
The functions of the Council shall be—
(i) making policy recommendations to the Federal
Government for directing banking activities towards
national socio-economic objective;
(ii) formulating policy guidelines for the banks;
(iii) laying down performance criteria for banks, and
taking steps for ensuring their observance;
(iv) evaluating the performance of the banks in the
context or national socio-economic objectives and policy
guidelines issued to the banks;
(v) determining the areas of coordination of the banks;
(vi) formulating schemes under Section 15;
(vii) making recommendations to the Federal Government
for the appointment of the President and members of an
Executive Board;
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015
AND CIVIL APPEALS NO. 632 TO 673 OF 2017
9
(viii) analyzing and appraising financial statements,
including Balance sheets and Profit and Loss Accounts, of
the banks and appointment of auditors of the banks;
(ix) conducting such surveys, inquiries and appraisals as
may be necessary for the purposes of this Act; and
(x) exercising and performing such powers and functions
of the Federal Government under this Act, and such other
functions, as the Federal Government may assign to it.
(5)
For the proper exercise of its functions, the Council may
require information, returns or periodical and special reports from
banks.
(6)
The Council may appoint such officers, employees, experts
and consultants as it may deem fit.”
The Council as is evident from the provisions reproduced above had a role
in making policy, exercising such powers and performing such functions of
the Federal Government and other functions as the Federal Government
assigned. Even the President and members of an Executive Board were
appointed on the recommendations of the Council. But what bearing its
dissolution and other amendments in the Act would have on the fate of this
case is a question we propose to discuss in the latter part of the judgment.
7.
Now the question arises what is the status of the notification
dated 30.11.1977 and what is status of the Circular dated 26.12.1977. Before
we answer the question it is worthwhile to refer to the notification and the
circular which read as under :-
“No.17(9)-IF.XI/77
Government of Pakistan
Finance Division
(Internal Finance Wing)
Islamabad, the 30th Nov, 1977
From: Shafat Ahmad,
Section Officer,
Phone 21545
To
Mr. M. A. K. Yousufi,
Chairman,
Pakistan Banking Council,
8-Habib Bank Plaza,
Karachi.
Sub:
PENSIONS AND RETIREMENT BENEFITS FOR OFFICERS/EXECUTIVES OF
BANKS AND FINANCIAL INSTITUTIONS.
Dear Sir,
I am directed to say that with a view to provide better social security, it
has been decided to introduce pension and retirement benefits for the
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015
AND CIVIL APPEALS NO. 632 TO 673 OF 2017
10
officers/executives of the banks including the State Bank of Pakistan and
financial institutions as have been introduced by the Federal Government
for Civil Servants. The pension scheme also includes the benefit of family
pension to the officers, executive’s wife and or to his children in the case
of demise of the pensioner. The existing scheme of pension in the case of
the National Bank of Pakistan. Contributory Provident Fund and Gratuity
shall be discontinued.
2.
The previous continuous service of officer/executive shall
count as qualifying service for pension. The contribution made by the
bank and financial institution towards the Contributory Provident
Fund/shall be withdrawn as the service shall now count for the purpose of
pension. The contribution of the officers/executives plus interest thereon
standing in their respective Provident Fund Account shall be transferred
and credited to the Provident Fund Accounts to be established under the
now Provident Fund Scheme.
A. DATE OF EFFECT
3.
These benefits shall be admissible with effect from May,
1977 and shall be determined in accordance with the following
provisions:-
B. PATE AND SCALE OF PENSION
4.
(a)
Pension shall be payable if the total service of an
officer/executive at the time of retirement or death is 10 years or more.
Gratuity shall be payable if the service of an officer/executive at the time
of retirement or death is more than 5 years but less than 10 years.
(b)
Pension shall be calculated at the rate of 70% of
emoluments on completion of 30 years qualifying service. Where
qualifying service is less than 30 years but not less than 10 years
proportionate reduction in percentage shall be made. Any amount of
pension in excess of Rs.1000/- shall be reduced by 50% on Pension Table
regulating all the four pensions, namely, Compensation Pension,
Superannuation Pension, Invalid Pension and Retiring Pension is enclosed
as Annexure-I.
(c)
If, for a pensioners with qualifying service of 30 years or
more, the amount of a pension calculated under sub-para (b) above falls
short of the amount to pension inclusive of dearness increases) which
would have been admissible to a Government servant under the Federal
Government rules prior to 1.2.1977, or exceeds it by less than Rs.45/-, the
amount under the formula mentioned herein shall be so increased as to
make such difference one of 1.45/-. Where qualifying service is less than
30 years but not less than 10 years proportionate reduction at the rate of
Rs.1/50 for each year short of years shall be made while working out the
amount of minimum increase mentioned above.
(d)
All spells of continuous service of one year or more
rendered by an officer/executive shall count and qualify for pension or
gratuity as the case may be. In calculating the total length of service for
the purposes of the admissibility of pension or gratuity the period of
interruption of service and leave without pay shall be excluded. Total
service thus calculated be refunded off to the nearest full year. A period
of less than six months shall be ignored for this purpose and of more than
six months counted as full year.
(e)
The term “emoluments” i.e. pensionable pay, shall also
include dearness allowances sanctioned from time to time.
(f)
Pension shall be calculated on the basis of the average
monthly
basic
pay
plus
dearness
allowances
drawn
by
an
officer/executive during the last three years of service including the
period of leave but excluding the extraordinary leave without pay.
G. Gratuity for Service of less than 10 years but not less than 5 years.
5.
In case of an officer/executive who has rendered service of 5
years or more but less than 10 years a gratuity equal to one month’s
emoluments for each completed year of service may be granted to him
on retirement. If, however, retirement is due to invalidation or if
officer/executive dies in service, the rate shall be 1/1…. Months
emoluments for each completed years of service. In the case of death of
such an officer/executive, it shall be payable to his legal heir(s).
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015
AND CIVIL APPEALS NO. 632 TO 673 OF 2017
11
B- Gratuity and Commutation for Pensioners Retiring After 10 years service.
6.
(a)
A pensioner shall be allowed to draw full gross-pension for
one fourth of the pension under this scheme need not compulsorily be
paid in the form of gratuity. If, however, a pensioner so wishes, he may, at
any time before expiry of one month from the date of his retirement, ask
for gratuity upto 25% of his gross pension together with the remaining net
amount of pension; the gratuity shall be paid at the following rates :-
If qualifying service is
10 years or more but
less than 15 years.
Rs.187 for every rupee of
pension surrendered.
If qualifying service is
15 years or more but
less than 20 years.
Rs.173 for every rupee
of pension surrendered.
If qualifying service in
20 years or more.
Rs.160 for every rupee
of pension surrendered.
(b)
Commutation of 25% of the gross pension shall be further
admissible in accordance with the Civil Pensions (Commutations Rules) as
applicable to the Federal Government employees. Commutation shall,
however, not be subject to medical certification if it is asked for within one
year of retirement. The payment in such cases shall become absolute on
the date of application by the pensioner. This concession of commutation
without medical certification is not admissible to those officers/executives
who retire on invalid pension.
E- Family Pension
7.
(a)
In the case of death of an officer/executive while in
service, gratuity in lieu of one fourth of the gross pension will be allowed at
the rates shown in para 6(a). In addition, family pension shall be
admissible for a period of 10 years at 50% of the gross pension.
(b)
In the case of death within 10 years of retirement, family
pension for unexpired period of 10 years at 50% of the pension (not, or
gross, as the case may be) shall be admissible.
(c)
Subsidiary rules and procedure in connection with the
sanction and receipt of pension shall be framed by the institution
concerned.
F. Pensions/Gratuity for Injury or Death in course or consequence of duty.
8.
The classification of disabilities and the criteria for
determining their attributability to service shall be as detailed in Annexure
III. The rate and scale of disability/death pension and gratuity shall be as
under :-
DISBILITY PENSION/GRTUITY
Class of
Injury
Pension
Gratuity
Child
without
own mother
Child with one
mother living
A
20% of pay subject to a
maximum of Rs.600 and
a minimum of Rs.100
p.m. (Note: After death
it will devolve on the
widow).
6 months pay.
5%
of
pay,
subject
to
a
maximum
of
Rs.100
&
minimum
of
Rs.50/- per child.
2
½
of
pay
subject
to
a
maximum
of
Rs.50/-
and
a
minimum
of
Rs.25/- per child.
B
15% of pay subject to a
maximum of Rs.450 and
a minimum of Rs.75
p.m.
Nil
4%
of
pay,
subject
to
a
maximum
of
Rs.80/-
&
Minimum
of
Rs.40/- per child.
2%
of
pay
subject
to
a
maximum
of
Rs.40/-
and
a
minimum
of
Rs.20/- per child.
C
-do-
Nil
Nil
Nil
DEATH (SPECIAL FAMILY) PENSION/ GRATUITY
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015
AND CIVIL APPEALS NO. 632 TO 673 OF 2017
12
1.
20% of pay subject to a
maximum of Rs.600 and
a minimum of Rs.100
p.m.
6 months pay.
5%
of
pay,
subject
to
a
maximum
of
Rs.50 per child.
2
½
of
pay
subject
to
a
maximum
of
Rs.50/-
and
a
minimum
of
Rs.25/- per child.
Note :- The pensions/gratuities mentioned in this para will be in addition
to the pensions and/or gratuities mentioned in paras 3 to 6 above.
9.
An Officer who was in non-pensionable service on 1st May, 77 and
who was entitled to the benefits of contributory Provident Fund, shall,
unless the amount of the Contributory Provident Fund has been paid be
allowed to opt) for the new scheme of Pension, Gratuity and Provident
Fund, in lieu of the existing retirement benefits admissible to him. This
option shall be exercised in writing and communicated to the competent
authority within 6 months from the date of the issue of these orders. Those
offices who do not exercise and communicate the options for the
pensionary benefits sanctioned in this letter within the prescribed time
limit, shall not be entitled to the benefits thereof and shall continue on
their existing terms.
Since the rates of pension and gratuity given above have been fixed by
the Pay Commission for banks and financial institute the same lines as
obtaining on the side of the Federal Government and existing provisions
and any changes or revision in the scales of pension or gratuity that may
hereafter be made by the Federal Government shall also apply to the
officers/executive including the State Bank of Pakistan and financial
institution.
Yours faithfully
Sd/-
Shafat Ahmed
Section Officer
Encl: 3 Annexure.”
8.
While the Circular dated 26.12.1977 reads as under :-
“National Bank of Pakistan
Head Office Karachi
Instruction Circular No. 228 (C). December 26, 1977
Establishment
Pensions and Retirement Benefits
for Officers/Executives of Banks.
1.
Further to our Circular No. 228 (B), it is advised that the Finance
Division, Government of Pakistan, Islamabad has decided to introduce
Pensions and retirement benefits for the officers/executives of the Banks as
have been introduced by the Federal Government for Civil Servants. The
pension scheme also includes the benefit of family pension to the
officers/executive’s wife and or to his children in the case of demise of the
pensioner.
2.
The previous continuous service of officer/executive shall count as
qualifying service for pension. The contribution made by the bank towards
the Contributory Provident Fund shall be withdrawn as that service shall
now count for the purpose of pension. The contribution of the
officers/executives plus interest thereon standing in their respective
Provident Fund Account shall be transferred and credited to the Provident
Fund Accounts to be established under the new Provident Fund Scheme.
A- Date of Effect
3.
These benefits shall be admissible with effect from 1st May, 1977
and shall be determined in accordance with the following provisions :-
B- Rate and Scale of Pension
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015
AND CIVIL APPEALS NO. 632 TO 673 OF 2017
13
4.
a)
Pension shall be payable if the total service of an
officer/executive at the time of retirement or death is 10 years or more.
Gratuity shall be payable if the service of an officer/executive at the time
of retirement or death is more than 5 years but less than 10 years.
b)
Pension shall be calculated at the rate of 70% of average
emoluments on completion of 30 years qualifying service. Where
qualifying service is less than 30 years but not less than 10 years,
proportionate reduction in percentage shall be made. Any amount of
pension in excess of Rs.1,000/- shall be reduced by 50%. A Pension Table
regulating all the four pensions, namely, Compensation Pension,
Superannuation Pension, Invalid Pension and Retiring Pension is enclosed
as Annexure I.
c)
If, for a pensioner with qualifying service of 30 years or
more, the amount of a pension calculated under sub-para (b) above falls
short of the amount of pension (inclusive of dearness increases) that
would have been admissible to a Government servant under the Federal
Government rules prior to 1.2.1977, or exceeds it by less than Rs.45/-, the
amount under the formula mentioned herein shall be so increased as to
make such difference one of Rs.45/-. Where qualifying service is less than
30 years but not less than 10 years, proportionate reduction at the rate of
Rs.1/50 for each year short of years shall be made while working out the
amount of minimum increase mentioned above.
d)
All spells of continuous service of one year or more
rendered by an officer/executive shall count and qualify for pension or
gratuity as the case may be. In calculating the total length of service for
the purposes of the admissibility of pension or gratuity, the periods of
interruption of service and leave without pay shall be excluded. Total
service thus calculated be rounded off to the nearest fully year. A period
of less than six months shall be ignored for this purpose and of more than
six months counted as full year.
e)
The term “emoluments”, i.e. Pensionable pay, shall also
include dearness allowances sanctioned from time to time.
f)
Pension shall be calculated on the basis of the average
monthly
basic
pay
plus
dearness
allowances
drawn
by
an
officer/executive during the last three years of service including the
period of leave but excluding the extra-ordinary leave without pay.
C- Gratuity for Service of less than 10 years but not less than 5 years.
5.
In case of an officer/executive who has rendered service of 5
years or more but less than 10 years a gratuity equal to one month’s
emoluments for each completed year of service may be granted to him
on retirement. If, however, retirement is due to invalidation, or if an
officer/executive dies in service, the rate shall be 1 ½ months of
emoluments for each completed year of service. In the case of death of
such an officer/executive, it shall be payable to his legal heir(s).
D-Gratuity and Commutation For Pensioners Retiring After 10 years
Service.
6.
a)
A pensioner shall be allowed to draw full gross pension i.e.
one forth of the pension under this scheme need not compulsorily be paid
in the form of gratuity. If, however, a pensioner so wishes, he may, at any
time before expiry of one month from the date of his retirement, ask for
gratuity upto 25% of his gross pension together with the remaining net
amount of pension; the gratuity shall be paid at the following rates :-
If qualifying Service is 10 years or more but
less than 15 years.
Rs.187
for
every
rupee
of
pension
surrendered.
If qualifying service is 15 years or more but
less than 20 years.
Rs.173
for
every
rupee
of
pension
surrendered.
If qualifying service is 20 years or more.
Rs.160
for
every
rupee
of
pension
surrendered.
b)
Commutation of 25% of the gross pension shall be further
admissible in accordance with the Civil Pensions (Commutations Rules) as
applicable to the Federal Government employees. Commutation shall,
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015
AND CIVIL APPEALS NO. 632 TO 673 OF 2017
14
however, not be subject to medical certification if it is asked for within one
year of retirement. The payment in such cases shall become absolute on
the date of application by the pensioner. This concession of commutation
without medical certification is not admissible to those officers/executives
who retire on invalid pension.
E-Family Pension
7.
a)
In the case of death of an officer/executive while in
service, gratuity in lieu of one forth of the gross pension will be allowed at
the rates shown in para 6(a). In addition, family pension shall be
admissible for a period of 10 years at 50% of the gross pension.
b)
In the case of death within 10 years of retirement, family
pension for unexpired period of 10 years at 50% of the pension (net, or
gross, as the case may be) shall be admissible.
c)
Subsidiary rules and procedure in connection with the
sanction and receipt of pension shall be framed by the institution
concerned.
F-Pensions/Gratuity for Injury or Death in course or consequence of duty.
8.
The classification of disabilities and the criteria for
determining their attributability to service shall be as detailed in (annexure
III). The rate and scale of disability/death pension and gratuity shall be as
under :-
Class of
Injury
Pension
Gratuity
Child
without
own mother
Child with one
mother living
A
20% of pay subject to a
maximum of Rs.600 and
a minimum of Rs.100
p.m. (Note: After death
it will devolve on the
widow).
6 months pay.
5%
of
pay,
subject
to
a
maximum
of
Rs.100
&
minimum
of
Rs.50/- per child.
2
½
of
pay
subject
to
a
maximum
of
Rs.50/-
and
a
minimum
of
Rs.25/- per child.
B
15% of pay subject to a
maximum of Rs.450 and
a minimum of Rs.75
p.m.
Nil
4%
of
pay,
subject
to
a
maximum
of
Rs.80/-
&
Minimum
of
Rs.40/- per child.
2%
of
pay
subject
to
a
maximum
of
Rs.40/-
and
a
minimum
of
Rs.20/- per child.
C
-do-
Nil
Nil
Nil
DEATH (SPECIAL FAMILY) PENSION/ GRATUITY
1.
20% of pay subject to a
maximum of Rs.600 and
a minimum of Rs.100
p.m.
6 months pay.
5%
of
pay,
subject
to
a
maximum
of
Rs.100
&
A
minimum
of
Rs.50/- per child.
2
½
of
pay
subject
to
a
maximum
of
Rs.50/-
and
a
minimum
of
Rs.25/- per child.
Note :- The pensions/gratuities mentioned in this para will be in addition
to the pensions and/or gratuities mentioned in paras 3 to 6 above.
9.
An officer who was in non-pensionable service on 1st May, 1977
and who was entitled to the benefits of Contributory Provident Fund, shall,
unless the amount of the Contributory Provident Fund has been paid be
allowed to opt for the new scheme of Pension, Gratuity and Provident
Fund, in lieu of the existing retirement benefits admissible to him. This
option shall be exercised in writing and communicated to the competent
authority within 6 months from the date of the issued of these orders. Those
officers who do not exercise and communicate their options for the
pensionery benefits sanctioned in this circular within the prescribed time
limit, shall not be entitled to the benefits thereof and shall continue on
their existing terms.
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015
AND CIVIL APPEALS NO. 632 TO 673 OF 2017
15
10.
Since the rates of pension and gratuity given above have been
fixed by the Pay Commission for banks and financial institutions one the
same lines as obtaining on the side of the Federal Government, the
existing provisions and any changes or revision in the rates or scales of
pension or gratuity that may hereafter be made by the Federal
Government shall also apply to the officers/executives of the Bank.
11.
The existing schemes of Pension, Contributory Provident Fund and
Gratuity shall be discontinued.
Sd/-
Sd/-
(HUMAYUN AKHTAR ADIL)
(MOHAMMAD USMAN)
EXECUTIVE VICE PRESIDENT
SENIOR EXECUTIVE VICE PRESIDENT
PERSONNEL DIVISION
ADMINISTRATION.”
9.
A look at the notification reproduced above would show that
it provided a comprehensive basis for determination of rate and scale of
pension. This notification has not been termed as the one notifying the rules
but it in its tone and tenor possesses all such attributes from whatever angle
it is looked at. It has not been stated in the notification that it has been
issued under Section 20 of the Banks Nationalization Act but the fact is that
no other provision of the Act could enable the Federal Government to issue
a notification dealing with the matters envisaged by Section 20 of the Act.
The words used in para 1 to 10 of the notification leave no doubt that it was
issued under Section 20 of the Act. Issuance of the circular, which is almost
replica of the notification confirms its status as a statutory instrument. Para
one of the notification rescinding and replacing the existing scheme of
pension, the Contributory Provident Fund and Gratuity by providing in para
1 that “the existing scheme of pension in the case of National Bank of
Pakistan, the Contributory Provident Fund and Gratuity shall be
discontinued” amply and overwhelmingly proves its statutory status. It
would be rather unjust and even unrealistic to treat such notification as an
administrative or executive instruction when it admittedly rescinded and
replaced the existing scheme of Pension Contributory Provident Fund and
Gratuity having their origin in the NBP’s employees Pension Provident and
Gratuity Rules, 1958 made with the prior approval of the Central
Government and the N.B.P. (Staff) Service Rules, 1973 made with the prior
approval of the Federal Government. It cannot be looked at as a bolt from
the blue either when it was preceded by an extensive spadework of the
Pay Commission and succeeded by the circular dated 26.12.1977. In this
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015
AND CIVIL APPEALS NO. 632 TO 673 OF 2017
16
context the notification cannot be construed as an event independent of
Section 20 of the Act or isolated therefrom. It also does not appear to be
deficient on any score when examined in the light of the criteria laid down
in the case of Mustafa Impex. Vs. Government of Pakistan (supra), when
nothing has been brought on the record to show that any of the provisions
of the Rules of Business, 1973 was ignored or violated. We, therefore, have
no hesitation to hold that the notification dated 30.11.1977 having been
issued by the Federal Government in terms of Section 20 of the Act is
statutory in nature and violation of any of its provisions is amenable to the
constitutional jurisdiction of the High Court. The case of Muhammad Zaman
and others. Vs. Government of Pakistan through Secretary, Finance Division
(Regulation Wing), Islamabad and others (supra) has therefore no
relevance to the case in hand.
10.
Next comes the question as to what are the functions of the
Board and whether the Board after the dissolution of the Pakistan Banking
Council has the power to rescind, replace or repeal the notification issued
by the Federal Government of Pakistan in terms of Section 20 of the Act. To
answer these questions we have to see the relevant provisions of the Act
dealing with the powers of the Board. It thus reads as under :-
“11. General provisions pertaining to management of banks.—(1)
Subject to Subsection (2), a bank shall have a Board consisting
of—
(a) a President, who shall be its Chief Executive; and
(b) not less than five and not more than seven other members
5[including one or more directors whose election by the private
shareholders, removal and other matters shall be governed by the
Companies Ordinance, 1984 (XLVII of 1984)].
(2) The Federal Government may, if it deems necessary, appoint a
Chairman of the Board in respect of a bank.
(3) The Chairman, the President, and other members of the Board
1[representing the Federal Government’s direct and indirect
shareholding”]___
(a) shall be appointed by the Federal Government, in consultation
with the State Bank, for a term of three years, on such terms and
conditions as may be fixed by the General Meeting of the bank:
provided that the Chairman and the President shall be appointed
from amongst professional bankers whose names are included in a
panel of bankers qualified to be the Chairman or the President,
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015
AND CIVIL APPEALS NO. 632 TO 673 OF 2017
17
which panel shall be determined, maintained and varied, from
time to time, by the State Bank ;
(b) may be removed for misconduct or physical and mental
incapacity before the expiry of the three years term by the Federal
Government in consultation with the State Bank;
(c) shall stand removed if he becomes ineligible on any of the
grounds specified in subsection (12); and
(d) may be reappointed by the Federal Government, in
consultation with the State Bank of Pakistan, 2[for such further term
or terms as may be determined.”.]
(4) The general direction and superintendence of the affairs and
business of a bank, and overall policy making in respect of its
operations, shall vest in its Board.
(5) The Board shall determine—
(i) the credit policies of the banks ;
(ii) evaluation criteria for the performance of the employees of the
bank other than the President;
(iii) personnel policies of the bank, including appointment and
removal of officers and employees ;
(iv) guidelines for entering into any compromise with borrowers
and other customers of the bank ; and
(v) any other policy matter.
(6) The Chief Executive and other officers of the bank shall act in
accordance with the policies, criteria and guidelines determined
by the Board.
(7) The Board shall appoint committees from amongst the
executives of the bank, and determine the powers, functions and
duties of such committees.
(8) Where the Federal Government has appointed a Chairman, he
shall preside over the meetings of the Board, and in case a
Chairman has not been appointed, then the President shall
preside over the meetings of Board. In the absence of the
Chairman or the President, as the case may be, the directors may
elect one of the member to preside over the meetings.
(9) The President, subject to the control and directions of the
Board, shall exercise powers of management of the affairs of the
bank.
(10) All selections, promotions and transfer of employee of banks
except the President and decisions as to their remuneration and
benefits shall be made by the President in accordance with the
evaluation criteria and personnel policies determined by the
Board.
(11) The Board, the President and other officers shall exercise their
powers and discharge their duties in accordance with sound
banking principles and prudent banking practices and shall ensure
compliance with regulations and directions that may be issued by
the State Bank from time to time.
(12) No person shall be eligible for appointment as the Chairman,
the President, or a member of the Board if—
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015
AND CIVIL APPEALS NO. 632 TO 673 OF 2017
18
(a) he is or has at any time been adjudged insolvent or has
suspended payment or has compounded with his creditors ; or
(b) he is a minor or is found a lunatic or of unsound mind ; or
(c) he is not citizen of Pakistan ; or
(d) he was at any time in the service of the Federal Government or
a corporation controlled by any such Government or in the service
of a bank and was dismissed ; or
(e) he is a person against whom any action has been taken or any
proceedings are pending under section 412 of the Companies
Ordinance, 1984, (XLVII of 1984) or section 83 of the Banking
Companies Ordinance, 1962 ; (LVII of 1962) or
(f) he is, or has been, convicted for tax evasion under any law for
the time being in force ; or
(g) he is a member of the Senate, National Assembly, any
Provincial Assembly or an elected Member of a local council
constituted under any law relating to local councils ; or
(h) he is holding an office in a political party. ]”
11.
A careful reading of the provisions reproduced above would
reveal that the Board with the dissolution of the Pakistan Banking Council
became more autonomous and independent in managing the Bank and
determining the terms and conditions of services of the officers and
executives of the bank. It, in exercise of such powers, introduced circular
No.3799, dated 16.6.1999 revising the pay structure bringing substantial
increase in the salaries of the officers and executives of the bank. It,
however, has not been given a power by any of the provisions in general
and Section 11 of the Act in particular to rescind, replace or repeal a
statutory dispensation already in force. In the case of Muhammad Tariq
Badr and another. Vs. National Bank of Pakistan and others (2013 SCMR
314) this Court while dealing with a similar controversy held as under :-
“It is an admitted position that 1980 Rules have not been framed
as per the mandate of law ibid, inasmuch as these rules are
neither made by the Federal Government nor published in the,
official gazette. There is also no cavil/quibble that the said rules
have not been composed/enforced with the prior approval of the
Government or any subsequent benediction was conferred to
those by the Government. Rather (admittedly) the rules have
been formulated by the Board of the respondent-bank constituted
under section 11 of the Act, 1974 which stipulate the general
power of the Board pertaining to policy making and the
administration and management of the nationalized banks.
Subsection (4) thereof specifically provides "The general direction
and superintendence of the affairs and business of a bank, and
overall policy making in respect of its operations, shall vest in its
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015
AND CIVIL APPEALS NO. 632 TO 673 OF 2017
19
Board". Furthermore, as per subsection (5) of the Act, 1974 the
Board shall determine "personal policies of the bank, including
appointment and removal of officers and employees" and in
accordance with subsection (10) "All selections, promotion and
transfer of employees of banks except the President and decisions
as to their remuneration and benefits shall be made by the
President in accordance with the evaluation criteria and
personnel polices determined by the Board". From the above it is
unequivocally clear that the 1980 Rules have been framed by the
Board of the bank pursuant to its authority in the nature of
management/ superintendence of the affairs of the bank and/or
the policy making power; however for all intents and purposes, it is
so done in the exercise of an executive authority under the
statute, but having even no remote or possible or permissible
connection and nexus to any statutory jurisdiction, these rules thus
can at best be termed, understood, comprehended and
construed merely as the guidelines or the domestic instructions of
the N.B.P., for the purposes of highlighting, elucidating or
beneficially revamping the service structure of bank's employees
for their advantage, provided the same do not in any manner
contravene the 1973 Rules, but nothing more than that can be
imputed to those; and in any case the rules do not enjoy the status
of a statutory instrument.”
12.
Now a question arises where Section 20 of the Act provided
that the Federal Government may by notification in the official gazette,
make rules to provide for all matters for which provision is necessary or
expedient for the purpose of giving effect to the provisions of the Act, what
would be the consequence of its failure to have it published in the official
gazette? The answer to the question was given in detail in the case of
SAGHIR AHMED through Legal Heirs. Vs. PROVINCE OF PUNJAB through
Secretary, Housing and Physical Planning Lahore and others (PLD 2004 SC
261) in the words as follows:-
10. Even otherwise, the provisions of a statute for the publication or
a notification in official Gazette are generally regarded by the
Courts as directory and where their strict non-compliance does
not provide any consequences. The legal certainty also requires
that ordinarily a statutory instrument should not be treated as
invalid because of a failure on the part of public functionaries to
publish it in the official Gazette. There may be many things done
on the basis of such an instrument. It would seem unfortunate were
these things held to be invalid if it were at some stage discovered
that there had been a failure by a public authority to go
meticulously by the manner and mode of publication of an
instrument or notification in the Official Gazette. In the case of
Multiline Associates v. Ardeshir Cowasjee and 2 others (PLD 1995
SC 423) this Court took the view that even if Karachi Building and
Town Planning Regulations, 1979 were not published in the official
Gazette under section 21-A(3) of the Sindh Buildings Control
Ordinance, 1979, they could be construed and acted upon as
regulations for the purpose of the said Ordinance. In Pakistan
through Secretary, Ministry of-Defence and others v. Late Ch.
Muhammad Ahsan (1991 SCMR 2180), the factual acquisition of
land had not been denied and same had been acted upon for
nearly 50 years and there was an airfield in the land for such a
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015
AND CIVIL APPEALS NO. 632 TO 673 OF 2017
20
long time. The notice/notification although had been signed and
issued to all concerned but had not been gazetted. In other
words, the purpose of the publication in the ordinary sense was
practically
served
almost
contemporaneously
when
the
acquisition took place and in fact it was more substantial
publication insofar as the owners were concerned than if it would
have been in the official Gazette. It was further observed that
mere fact that publication in the Gazette was delayed, would not
invalidate the notification. A somewhat similar view was taken in
Muhammad Siddique v. Market Committee, Tandlianwala (1983
SCMR 785). In the case of Manzur-ul-Haq v. Controlling Authority,
Local Councils, Montgomery and others (PLD 1963 SC 652) it was
held, by reference to the provisions of Article 26 of the Basic
Democracies Order, 1959, and section 17 of the Municipal
Administration Ordinance, 1960, that mere provision in a statute for
notifying name of holder of office in Gazette was not a condition
precedent to the holding of the office. In Chief Commissioner,
Karachi v. Jamil Ahmed and another PLD 1961 SC 145 the Court
held that the provision in section 280(1) of the City of Karachi
Municipal Act, (1933) relating to general elections being notified in
official Gazette was directory and not mandatory and a
substantial compliance with that would be enough. In Regina v.
Sheer Metalcraft Ltd. and another (1954 1 QB 586), Lord Streatfeild,
J., took the view that "a statutory instrument, made by a Minister or
other competent authority was valid and effective as soon as it
was made, notwithstanding that the provisions of the Statutory
Instruments Act, 1946, and the regulations, mode thereunder
relating to the printing and issuing of statutory instruments had not
been complied with".
We, agreeing with the dictum reproduced above, reaffirm that failure to
have the notification published in the official gazette would not shear it off
its statutory status.
13.
The argument of the learned Sr. ASC for the appellant that
where Circular No. 3799 dated 16.06.1999 bringing substantial increase in
salaries of the officers and executives of the bank and reducing the
pension factor was accepted and acted upon by the officers and the
executives of the bank without any qualms for more than a decade, they
could not have turned around to question it so long as they do not refund
the increase in the salary, does not have much force firstly because the
respondents never sat idle or slept over their rights emanating from the
circular dated 30.1.1977 as is evident from their correspondence at
different levels and secondly because there could be no estoppel against
the statute or the rules having statutory force. The argument that such
petitions are also hit by the principle of laches when they were instituted
more than ten years after the issuance of the circular dated 16.06.1999 is
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015
AND CIVIL APPEALS NO. 632 TO 673 OF 2017
21
also devoid of force when the respondents have been questioning the
circular reducing the pension factor at different fora and stages. Even
otherwise, the principle of laches cannot be over emphasized when
pension is a recurring right as has been held in the cases of Pakistan
Telecommunication Employees Trust (PTET) through M. D., Islamabad and
others. Vs. Muhammad Arif and others, Secretary, Government of Punjab,
Finance Department and 269 others. Vs. M. Ismail Tayer and 269 others,
Constitution Petition No. 127 of 2012, decided on 11.04.2013 regarding
Pensionary Benefits of the Judges of Superior Court, Pakistan Muslim League
(N) through Khawaja Muhammad Asif, M.N.A. and others. Vs. Federation of
Pakistan through Secretary Ministry of Interior and others, Pakistan Tobacco
Company Ltd. and another. Vs. Federation of Pakistan through Secretary,
Ministry of Commerce, Islamabad and 3 others, Civil Aviation Authority,
Islamabad and others. Vs. Union of Civil Aviation Employees and another,
Shahid Pervaiz. Vs. Ejaz Ahmad and others, etc., Muhammad Mubeen-us-
Salam and others. Vs. Federation of Pakistan through Secretary Ministry of
Defence and others and I. A. Sharwani and others. Vs. Government of
Pakistan through Secretary Finance Division, Islamabad and others (supra).
14.
The argument of the learned ASC for the respondents that the
notification issued by the Finance Division, Government of Pakistan and
Circular No. 228(C) issued by the Bank could be treated at par with the
statutory rules when they have been acted upon for decades and
decades together would loose its relevance and so would the judgments
rendered in the cases of Pakistan. Vs. Sheikh Abdul Hamid, Dr. Habibur
Rahman. Vs. The West Pakistan Public Service Commission, Lahore and 4
others, Khan Faizullah Khan. Vs. Government of Pakistan through the
Establishment Secretary, Cabinet Secretariat and another(supra), once we
have held above that the notification dated 30.11.1977 having been issued
by the Federal Government in terms of Section 20 of the Act is statutory in
nature.
CIVIL APPEALS NO. 353 OF 2015 AND CMA NOS. 1493 AND 2079 OF 2015
AND CIVIL APPEALS NO. 632 TO 673 OF 2017
22
15.
As a sequel to what has been discussed above, we allow Civil
Appeal No. 353 of 2015 alongwith the CMAs. No. 1493 and 2070 of 2015, set
aside the judgment of the Peshawar High Court whereas we dismiss the
Civil Appeals No. 632 to 673 of 2017 filed by the National Bank of Pakistan
and maintain the judgment of the Lahore High Court, dismissing the Intra
Court Appeal.
JUDGE
JUDGE
JUDGE
Announced in open Court at Islamabad on __________________.
JUDGE
‘Not Approved for Reporting’
M. Azhar Malik
| {
"id": "C.A.353_2015.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
Present
Mr. Justice Iftikhar Muhammad Chaudhry, CJ.
Mr. Justice Jawwad S. Khawaja
Mr. Justice Tariq Parvez
CIVIL PETITION NO. 357 OF 2012 AND
CONST. PETITION NO.32 OF 2012 AND
CIVIL MISC. A. NO. 2911 OF 2012,
CMA-3338/12, ETC.
Regional Director ANF
vs.
Rizwan Ahmed & others.
Sh. Rasheed Ahmed
vs.
Federation of Pakistan, etc.
For the petitioners :
Raja Shahid Abbasi, ASC.
Brig. Fahim Ahmed, Force Commander, ANF
Lt. Col. Akhtar Abbas, Joint Director.
Mr. Bashir Hussain, Special Prosecutor
Abid Zulfiqar, Dy. Director./IO ANF.
Nemo.(in Const.P.32/12)
For the applicants :
Mr. Muhammad Tanvir (in-person).
(in CMA.3338/2012)
For M/o NRS
:
Nemo.
For M/o Interior
:
Khawaja Siddique Akbar, Secretary.
For DRAP
:
Qazi Abdul Saboor, CEO/DG Health
For M/s Barlex Lab :
Nemo.
For respondent No.13:
Nemo.
For respondent No.15:
Nemo.
For Danas Pharma :
Nemo.
For FIA
:
Nemo.
For NAB
:
Nemo.
Date of hearing
:
09.08.2012.
* * * * * * *
CP-357/12 etc.
2
O R D E R
Civil Misc. Application No. 3338 of 2012.–. Khawaja
Siddiuqe Akbar has filed a statement wherein he had denied the
allegations of Muhammad Tanvir, Dy. DG, DRAP. The statement be
kept on record. However, in the meanwhile, Secretary M/o Services &
Regulations Division informed about the issue of the transfer of
Muhammad Tanvir to Gilgit-Baltistan on the last date of hearing. On
having gone through the relevant rules and regulations he was of the
opinion that the transfer order of Mr. Muhammad Tanvir, Dy. DG.
DRAP was not proper, as such the same has been withdrawn and his
salaries have also been paid. The grievance of the applicant apparently
seems to have been redressed. We may, however, observe in
categorical terms that the concerned authorities of the Division which
also include Directorate of Health are not required to pressurize any of
the employees persuading them so they may not cooperate in
ephedrine case which is under investigation with ANF as being an
important case in its nature. ANF needs cooperation from all
concerned to unearth a crime in a transparent manner as it is against
this country and society.
2
Qazi Abdul Saboor, DG Health and CEO, DRAP stated that as
he has given proposal for transfer of Mr. Muhammad Tanvir from
Gilgit-Baltistan to Islamabad and due to this reason he has also been
transferred but uptil now no notification has been issued. He stated
that the concerned authority wants to appoint a person of their own
CP-357/12 etc.
3
choice against this post. We have noted the anticipated grievance of
the DG but as there is still no notification on record showing his
transfer, therefore, no action is required for the time being. However,
in future if so happened at the cost of his cooperation in the
investigation in the ephedrine matter, the DG may move an
application which shall be decided after having taken into
consideration the relevant rules on the subject. The application filed
by Mr. Muhammad Tanvir stands disposed of.
CJ.
J.
J.
Islamabad,
09.08.2012.
| {
"id": "C.A.357_2012.pdf",
"url": ""
} |
ORDER OF THE BENCH
By majority of four to one, the Chancellor while exercising
revisional powers under Section 11-A of the Act is not required to seek
advice of the Chief Minister, therefore, on this legal point, view rendered in
the cases of University of Punjab vs. Sardar Ali (1992 SCMR 1093) and
Federation of Pakistan vs. Muhammad Tariq Pirzada (1999 SCMR 2189) is
approved whereas the contrary view rendered in the case of, Rana Aamer
Raza Ashfaq vs. Dr. Minhaj Ahmad Khan (2012 SCMR 6), is not approved.
2.
By majority of three to two, the Appeal is allowed, the
impugned judgment is set aside and the matter is remanded to the Lahore
High Court to decide the Writ Petition No.1691 of 2012 filed by the
Respondent No.1 on merits. It is expected that the Lahore High Court shall
decide the Writ Petition within 03 months from the date of communication
of this judgment, as the Petition relates to the year 2012.
Chief Justice
Judge
Judge
Judge
Judge
Islamabad the,_____________, 2016.
Approved for reporting.
J
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
Present:
Mr. Justice Anwar Zaheer Jamali, CJ
Mr. Justice Mian Saqib Nisar
Mr. Justice Amir Hani Muslim
Mr. Justice Iqbal Hameedur Rahman
Mr. Justice Khilji Arif Hussain
Civil Appeal No.359 of 2013.
(On appeal from judgment dated 15.01.2013 of the Lahore
High Court, Lahore, passed in W.P.No.1691 of 2012).
Dr Zahid Javed.
…Petitioner.
VS
Dr Tahir Riaz Chaudhry and others.
…Respondents.
For the Petitioner:
Sardar Muhammad Aslam, ASC.
Raja Muhammad Afsar, AOR.
For Respondent No.1:
Mr. Abdul Rehman Siddiqui, ASC.
For Respondent No.2:
Mr. Tahir Munir Malik, ASC.
For Respondent No.3:
Nemo.
On Court’s Notice:
Mr Nisar Durrani, A.G Sindh.
Mr Ayaz Swati, Addl.A.G Balochistan.
Mr Razzaq A Mirza, Addl.A.G, Punjab.
Mr Abdul Latif Yousafzai, A.G, KPK.
Mian Muhammad Rauf, A.G, Islamabad.
Mr Muhammad Waqar Rana,
Addl. Attorney General for Pakistan.
Amicus Curie:
Mr. Makhdoom Ali Khan, ASC.
Kh. Haris Ahmed, Sr.ASC.
Date of hearing:
03.03.2016.
. . . . . . . . . . . .
JUDGMENT
C.A.No.359 of 2013
2
AMIR HANI MUSLIM, J. This Appeal, by leave of the
Court, is directed against judgment dated 15.01.2013, passed by the Lahore
High Court, Lahore, whereby the Writ Petition filed by the Respondent No.1
has been allowed.
2.
The facts necessary for the present proceedings are that on
29.04.2005, the University of Punjab got published an advertisement in the
press, inviting applications to various positions including the post of
Associate Professor in Social Work Department. The Appellant, amongst
others, applied for the said post which he was offered. Through Office Order
dated 07.11.2007, the Vice Chancellor of the University, in anticipation of
the approval of the Syndicate and upon the recommendations of the
Selection Board, exercised the powers vested in him under Section 15(3) of
the University of the Punjab Act 1973, and appointed the Appellant to the
said post on one year’s probation.
3.
The Respondent No.1 challenged the appointment of the
Appellant made through Office Order dated 07.11.2007, before the Lahore
High Court by filing Writ Petition No.319 of 2008, which was disposed of
with the direction to the Syndicate of the University to decide the issue of
appointment of the Appellant. Accordingly, the Syndicate of the University
in its 1689th meeting held on 29.10.2011 considered the appointment of the
Appellant and decided to cancel the said appointment. The Appellant filed
Petition under Section 11-A of the University of the Punjab Act 1973, before
the Chancellor challenging the order dated 29.10.2011 of the Syndicate of
the University. The Petition was allowed by order dated 06.06.2012, and the
appointment of the Appellant was restored with all consequential benefits.
C.A.No.359 of 2013
3
4.
Feeling aggrieved, the Respondent No.1 filed Writ Petition
before the Lahore High Court challenging the order dated 06.06.2012 of the
Chancellor, which was allowed by the impugned judgment dated 15.1.2013,
and consequently the order dated 06.06.2012, restoring the Appellant to his
previous position, was set aside. The Appellant filed Civil Petition No.202
of 2013 for Leave to Appeal before this Court in which leave to Appeal was
granted on 15.04.2013.
5.
During the hearing of the aforesaid Appeal on 18.11.2013 by a two
member Bench, it was noticed that the issue raised required hearing by a
larger Bench and the Honourable Chief Justice of Pakistan was requested to
constitute a five member Bench. The relevant portion of the order dated
18.11.2013 by the said Bench is reproduced hereunder:
“On one of the last dates of hearing the question of interpretation and
applicability of Section 11(8) of the Act came up for consideration
obviously in the context of Article 105 of the Constitution of the Islamic
Republic of Pakistan, 1973 (the Constitution), as also other relevant
provisions of the Act, including Section 11-A and Section 43 therefore,
thus a notice was issued to the learned Advocate General, Punjab, to
appear in person and to answer the queries in relation thereto. During the
course of hearing, the Acting Advocate General, Punjab has placed
reliance upon the judgment reported as Rana Aamer Raza Ashfaq and
another Vs. Dr. Minhaj Ahmad Khan and another (2012 SCMR 6) to
argue, that according to the enunciation of law therein, the
functions/powers of the Governor even if acting as Chancellor are
regulated in terms of Article 105 of the Constitution, but when queried, he
has stated that in the judgment supra the earlier law on the subject having
close nexus to the issue in hand reported as Federation of Pakistan
through Secretary, Establishment Division, Government of Pakistan,
Islamabad Vs. Muhammad Tariq Pirzada and others (1999 SCMR 2189)
seemingly it has eluded the attention of this Court; besides for the exercise
of the functions of the Chancellor/the Governor specified in the Act,
especially Section 11-A and Section 43, which are the relevant provisions,
need deeper examination if such functions/powers are subject to the
provisions of Article 105 of the Constitution. Moreover, the impact of the
eighteenth amendment in the Constitution should also be taken into
account which was not adverted to in the case of Rana Aamer Raza
Ashfaq (supra). We think, that these propositions, which have emerged
during the course of hearing, are of considerable importance and may in
the given circumstances of the case need some elucidation of the Rana
Aamer Raza Ashfaq’s case (supra) and/or reconsideration of the law
enunciated therein, therefore we feel expedient that the matter be brought
C.A.No.359 of 2013
4
to the notice of the Hon’ble Chief Justice of Pakistan for considering the
desirability of constitution of a larger bench.”
6.
The larger Bench comprising of five members was constituted
by the Honorable Chief Justice to resolve the issues raised in these
proceedings. The Bench issued notices to the Attorney General for Pakistan
and Advocate Generals of all four provinces under Order 27-A Rule 1, CPC,
as well as appointed Messrs Makhdoom Ali Khan and Khawaja Haris ASCs
as Amicus Curiae to assist this Court on the proposed issues which have far
reaching effect.
7.
Mr. Sardar Muhammad Aslam learned ASC for the Appellant
commenced his arguments by contending that the Chancellor of a Province,
while exercising his functions under the University of the Punjab, Lahore
Act 1973 (the “University Act”), is not required to act on the advice of the
Chief Minister. The learned ASC for the Appellant referred to Articles 45,
49, 51, 54, 56, 57, 59, 75, 89, 100, 145(2), 200, 208, and 234 of the
Constitution and submitted that the said provisions enumerate the powers
and functions vested in the President under the current constitutional set up.
He contended that the functions that the President exercised under the
foregoing provisions are those which require the President to act on the
advice of the Prime Minister. While placing reliance on a judgment of this
Court in the case of Federation of Pakistan vs. Muhammad Tariq Pirzada
and others, (1999 SCMR 2189), the learned ASC submitted that it has been
held by this Court that the President of Pakistan, when hearing appeals from
the decision of the Wafaqai Mohtasib, exercises quasi judicial powers and is,
therefore, not required to seek the advice of the Prime Minister. He
C.A.No.359 of 2013
5
submitted that, similarly, the Governor of a Province / Chancellor of a
University, in exercise of his functions under Section 11A of the University
Act, also exercises quasi-judicial functions. He contended that if the
Chancellor whilst exercising his revisional / appellate powers under the Act
was required to seek the advice of the Chief Minister then it would loose all
semblance of an independent application of judicial mind.
8.
Learned counsel for the Appellant further contended that under
the University Act, the Chancellor performs various functions which could
be demarcated as administrative and quasi-judicial functions. The
Chancellor revisional / appellate functions, the learned ASC contended,
would fall within the latter category, in exercise whereof, it was not
necessary for the Chancellor to seek the advice of the Chief Minister.
9.
Mr. Makhdoom Ali Khan, Sr. ASC learned Amicus Curiae at
the very outset contended that the Governor of a Province does not exercise
quasi judicial powers. He referred to Tariq Pirzada Case (ibid) and
submitted that he would beg to differ with the ratio of the aforesaid
pronouncement of this Court insofar as it holds that the President, when
hearing representations / appeals from a decision of the Wafaqi Mohtasib,
exercises quasi-judicial functions. He submitted that the office of the
ombudsman was created with the object that no government should
countenance maladministration and the ombudsman is a statutory check
upon the government and that is all. He contended that it cannot be termed
as a judicial function because there is no power of enforcement of its
decision. He submitted that a judicial function has to be exercised by
authorities other than those that are executive. He contended that when
C.A.No.359 of 2013
6
quasi-judicial authorities are created, the officers who preside over such
authorities can only be appointed with the consultation of the Chief Justice
of Pakistan or by the Chief Justice of a province.
10.
Mr. Makhdoom Ali Khan Sr.ASC submitted that the office of
the Governor is a constitutional office and when the Constitution talks of the
functions of the Governor it is talking of its constitutional functions and not
of functions outside the Constitution. However he contended that functions
conferred upon the Governor outside the Constitution by a statute, would
inherently be functions conferred upon him as a persona designata and he
would not be acting in terms of Article 105 of the Constitution. He
submitted that a law can be passed by a provincial assembly, the elected
representatives of the people, in the exercise of their legislative powers
whereby they specify that a certain person should be appointed to a statutory
post and consequently the functions that person exercises would indeed be
statutory functions. He contended that in the facts and circumstances of this
case the appointment of the Chancellor is statutory but if the statute itself
provides that the Chancellor, whilst exercising his statutory functions, is
subject to Article 105 of the Constitution, then there can be no question
about the law being ultra vires.
11.
Mr. Makhdoom Ali Khan next submitted that pursuant to the
position in terms of the statutory provisions of the Act prior to the
amendment whereby Section 11(8) was inserted, the Chancellor would
undoubtedly be exercising statutory functions without the advice of the
Chief Minister. In support of his submission he placed reliance upon a
judgment of this Court in the case of University of the Punjab, Lahore vs.
C.A.No.359 of 2013
7
Chaudhry Sardar Ali (1992 SCMR 1093) and a judgment of the Indian
jurisdiction in the case of Dr. S.C. Barat and another v. Hari Vinayak
Pataskar and others (AIR 1962 Madhya Pradesh 73.)
12.
Mr. Makhdoom Ali Khan continued his arguments by
identifying the functions and powers of the Governor under the Constitution.
He submitted that the Governor was appointed by the President under
Article 101 of the Constitution, whereas Article 105 r/w Article 48(2) of the
Constitution stipulates that the Governor in discretionary matters is not
bound by the advice of the Chief Minister. The learned Amicus demarcated
the functions of the Governor enumerated in the Constitution as those non
discretionary functions performed on the advice of the Chief Minister, in
terms of Article 105 of the Constitution, and those discretionary functions
that can be performed without the advice of the Chief Minister. He
submitted that the functions of the Governor under Article 110 (Right of
Governor to address Provincial Assembly), Article 128 (Power of Governor
to promulgate Ordinances), Article 129 (The Provincial Government),
Article 131 (Governor to be kept informed), Article 132 (Provincial
Ministers), Article 139 (Conduct of business of Provincial Government) and
Article 140 (Advocate General for a Province) of the Constitution were all
non discretionary in nature. Conversely he submitted that the provisions of
the Constitution under which the Governor was vested with discretion, either
by the specific use of the word “discretion” or by the very structural nature
of the function being performed, were Article 112(2) (Dissolution of
Provincial Assembly), Article 116(2)(b) (Governors assents to Bills), Article
130(7) (vote of confidence), and Article 133 (Chief Minister continuing in
C.A.No.359 of 2013
8
office) of the Constitution. He submitted that in addition to the aforesaid
discretionary powers of the Governor, Article 234 of the Constitution goes a
step further and by its sub-clause (2) explicitly excludes the application of
Article 105 of the Constitution.
13.
Mr. Makhdoom Ali Khan further contended that Article 105 of
the Constitution itself provides for exceptions to the said Article which are
embedded in the constitutional structure. He contended that Article 105 r/w
Article 48 of the Constitution creates certain exceptional discretionary
powers which may arise by the specific words used in the Constitution i.e.
where the word “discretion” is used or by the very structure of the
constitution itself i.e. vote of confidence, vote of no confidence, Chief
Minister continuing in office, dissolution of the assembly etc. He submitted
that while the constitutional rule is that the Governor is bound by the advice
of the Chief Minister, the constitutional exception is that in certain matters
he is not bound by the advice of the Chief Minister. He submitted that
insofar as Section 11(8) of the University Act is concerned, the legislature
whilst referring to Article 105 of the Constitution, is referring to the
constitutional role and not the constitutional exceptions.
14.
Mr. Makhdoom Ali Khan submitted that Section 11(8) of the
University Act states that in the performance of his functions under the Act,
the Chancellor shall act and be bound in the same manner as the Governor of
a province acts and is bound under Article 105 of the Constitution. He
submitted that Section 11-A is also a function performed by the Chancellor
under the Act, therefore, Section 11-A will be subject to Section 11(8) of the
University Act. He further submitted that Section 11-A, whereby revisional
C.A.No.359 of 2013
9
power is vested with the Chancellor, is not judicial or quasi judicial in nature
but to the contrary is executive supervisory power. He submitted that the
only way Section 11-A could override Section 11(8) is if it is held that
Section 11-A is a special power vested in the Chancellor while Section 11(8)
is general in nature, therefore, the former would override the latter.
15.
Mr. Makhdoom Ali Khan the learned Amicus further developed
his argument by contending that there are two interpretations which may be
given to Section 11(8) and 11-A of the University Act. According to literal
interpretation rule, the revisional powers of the Chancellor under Section 11-
A of the Act are nothing more than one of the functions that the Chancellor
exercises under the Act and are therefore, subject to Section 11(8) of the
Act. He further contended that the purposive interpretation on the other hand
would be that the office of Chancellor was created to keep it away from the
political expediencies of the day and consequently in these matters there
would be no interference warranted from the Provincial Government and the
Chancellor has to apply his own mind in the capacity of an independent
statutory
functionary.
He,
however,
submitted
that
a
purposive
interpretation, rendering Section 11-A independent of 11(8) of the Act,
should only be resorted to if holding otherwise would lead to an absurdity.
He further submitted that if the latter course of interpretation is taken, then
this Court will be making the assumption that the Governor will never act
out of political expediency and the Government will always act out of
political expediency.
16.
The learned Amicus Mr. Makhdoom Ali Khan reiterated that
the statutory function of the Chancellor under the Act was not circumscribed
C.A.No.359 of 2013
10
earlier but post insertion of Section 11(8), it has been circumscribed and the
new statutory dispensation provides that the Chancellor should act on the
advice of the Chief Minister. He submitted that if the Chancellor is given a
statutory function independent of his constitutional functions, then Article
105 would clearly not apply, but the legislature by introducing Section 11(8)
of the Act has essentially legislatively overruled the Sardar Ali Case (ibid),
therefore, the current legislative scheme mandates that Article 105 of the
Constitution will be attracted to the exercise of the Chancellor statutory
functions as well.
17.
Mr. Makhdoom Ali Khan concluded his arguments by bringing
to our attention that the Governor under the Constitution is a federal
appointee and for constitutional purposes, he is the representative of the
Federation. He submitted that if the purposive interpretation is resorted to by
us and Section 11A of the University Act is construed independently of
Section 11(8) every time the province gives the Governor a function to
perform, which under the purposive interpretation he could examine
independently, this could tantamount to permitting federal interference in
provincial matters, consequently creating a situation where a federal
nominee would be interposed between the Provincial Government and the
University. This he contended would inevitably lead to a conflict between
the Federal and Provincial Governments. He submitted that this point had
been attended to in the Judgment of this Court in the case of Rana Aamer
Raza Ashfaq vs. Dr. Minhaj Ahmad Khan (2012 SCMR 6).
18.
Mr. Khawaja Haris Ahmed Sr.ASC Amicus Curiae submitted
that the law laid down by this Court in the Rana Aamer Raza Case (ibid)
C.A.No.359 of 2013
11
was the correct enunciation of law and that he endorsed the arguments of
Mr. Makhdoom Ali Khan. He submitted that upon a reading of Article 105
of the Constitution, although the Governor is bound by the advice of the
Chief Minister, there are certain exceptions as stated in Article 48(2) of the
Constitution, which are essentially in exercise of the Governor’s
discretionary powers. He submitted that what must be examined is whether
there are discretionary functions exercised by the Chancellor under the
University Act as well. He contended that under the Constitution, the
Chancellor in exercise of some of his functions, by virtue of certain
constitutional exceptions, is not bound by the advice of the Chief Minster
with respect to those matters in which he has discretionary powers. He
submitted that similarly the Chancellor, whilst exercising his powers /
functions under the Act, would also not be bound by the advice of the Chief
Minister in matters in which he has discretion.
19.
Mr. Khawaja Haris Ahmed further submitted that Section 11-A
of the Act vests revisional powers in the Chancellor, which powers he
submitted were by their very nature discretionary, and that the discretionary
powers of the Chancellor exercised under the University Act will not come
within the mischief of Section 11(8) of the Act. He submitted that this Court
ought to examine what provisions in the University Act qualify as
discretionary powers of the Chancellor. These discretionary powers, he
submitted, would not be hit by Section 11(8) as opposed to those functions
of the Chancellor strictly performed under the Act. He submitted that
exceptions to Article 105(1) are given in 105(5) read with Article 48(2) and
if Section 11(8) of the Act is legislation by reference to Article 105 of the
C.A.No.359 of 2013
12
Constitution, then the concept of a discretion based bifurcation of the powers
of the Governor, being subject to the advice of the Chief Minister, would
also have to be imported and read into Section 11(8) of the Act.
20.
Mr. Muhammad Waqar Rana, learned Additional Attorney
General submitted that prior to the insertion of Section 11(8) of the
University, whereby Article 105 has been incorporated by reference, there
was a possibility that the Governor and the Provincial Government would be
considered two separate bodies and there would be a likelihood of conflict
and therefore a need arose to incorporate 11(8) in the Act. He submitted that
as Article 105 of the Constitution has been specifically mentioned in Section
11(8) of the Act, the same has to be followed in letter and spirit. He
submitted that if there was an exception to the applicability of Article 105 of
the Constitution in terms of the powers exercised by the Chancellor under
the Act, it ought to have been expressly mentioned. Otherwise, if an
interpretation is placed that in exercise of his revisional powers the
Chancellor is acting on his own then this may defeat the provisions of
Section 11(8). He further submitted that had this been the intent of the
legislature that the Chancellor would be acting on his own without seeking
the advice of the Chief Minister, then nothing stopped the legislature from
expressly providing for the same. He submitted that the law laid down by
this Court in the Rana Aamer Raza Case (ibid) is the correct enunciation of
law and in all matters the Chancellor / Governor is bound by the advice of
the Chief Minister. He placed reliance in support of his contentions on a
judgment of this Court in the case of Pakistan Burmah Shell Ltd. vs.
C.A.No.359 of 2013
13
Nasreen Irshad (1989 SCMR 1892), and on two judgments of the Indian
jurisdiction reported as 2006 2 SCC 1 and 2010 SCC 331.
21.
Mr. Razzak Ali Mirza learned Additional Advocate General
Punjab submitted that it was the stance of the Provincial Government, as per
his instructions, that the powers vested with the Chancellor under Section
11-A of the Act were discretionary in nature. He submitted that the advice of
the Chief Minister would not be attracted when the Chancellor is called upon
to judicially determine the rights of the employees of the University or when
the Chancellor acts in a quasi judicial manner.
22.
Mr. Nisar Durrani Advocate General Sindh endorsed the
arguments of Mr. Makhdoom Ali Khan Amicus Curiae and submitted that
the law laid down by this Court in the case of Rana Aamer Raza (ibid) is the
correct enunciation of law.
23.
Mr. Abdul Latif Yousafzai, learned Advocate General KPK
submitted that when the Governor exercises powers under the Constitution
he is bound by the advice of the Chief Minister, however, when the
Chancellor whilst acting under the University Act exercises quasi-judicial
and discretionary functions which are statutory in nature, he is not bound by
the advice of the Chief Minister. In support of his submission he placed
reliance upon a 5 member bench judgment of the Lahore High Court in the
case of Aurangzeb Shaafi Burki vs. Province of Punjab (2011 PLC (C.S.)
735..
24.
Mr. Ayaz Swati, the learned Additional Advocate General
Balochistan submitted that the legislation governing universities in
C.A.No.359 of 2013
14
Balochistan did not have a provision in pari materia to that of Section 11(8)
of the University Act. Although the Governor of the Province acts as
Chancellor for Universities in Balochistan as well, yet there was no
legislation by reference to Article 105 of the Constitution, hence the
legislative framework to the extent of the province of Baluchistan was
distinguishable from that of the other Provinces.
25.
Mian Muhammad Rauf, AG Islamabad endorsed the arguments
of Mr. Makhdoom Ali Khan, the learned Amicus Curiae. He drew our
attention to an opinion of this Court in the case reported as Reference No.2
of 2005 by the President of Pakistan (PLD 2005 SC 873) to stress the point
that there are certain functions which the Governor performs which are
discretionary in nature thereby not requiring the advice of the Chief
Minister.
26.
Although Sardar Muhammad Aslam learned ASC for the
Appellant had addressed this Court extensively on the lis at hand, however
the AOR for the Appellant requested that he be allowed to make his
submissions with respect to some factual matters including the procedural
history of the case before the High Court, a request that we acceded to. He
submitted that the Appellant in lieu of the advertisement for the post of
Associate Professor at the University was the only candidate who applied
and the selection board headed by the Vice Chancellor, including 3 foreign
consultants, had recommended his appointment. He further contended that
the Respondent had earlier filed a similar writ petition before the High Court
(Respondent No.1 in this appeal) which had been unconditionally
withdrawn. He submitted that this Court must examine the effect of there
C.A.No.359 of 2013
15
being two High Court orders, one of dismissal on account of unconditional
withdrawal and one of acceptance, regarding the same matter.
27.
Mr. Abdul Rehman Siddiqui learned ASC for the Respondent
No.1 submitted that he adopts the contentions of Mr. Makhdoom Ali Khan,
the learned Amicus Curiae. With respect to the submissions of the AOR for
the Appellant, he contended that the earlier writ petition had been filed
prematurely by the Respondent (petitioner before the High Court) whilst his
revision was pending before the Governor. He submitted that subsequent to
the passing of the order by the Governor on the revision petition, the
Respondent herein instituted a fresh writ petition before the High Court.
Replying to the contentions of the AOR with respect to the merits of the
Appointment of the Appellant, the learned ASC for the Respondent
submitted that the Appellant was appointed by the Vice Chancellor of the
University in anticipation of approval by the Syndicate. The Syndicate did
not provide the required approval on account of the Appellant lacking the
requisite degree, experience and documentation. Insofar as the broader
question of law is concerned, learned ASC for the Respondent submitted
that Article 105 of the Constitution was imported into Section 11(8) of the
Act, therefore, no exceptions to Section 11-A can be read into the statute.
28.
We have heard the learned Counsel for the parties, the learned
Advocate Generals, as well as the learned Additional Attorney General for
Pakistan and have perused the record with their assistance. The question
requires to be answered in these proceedings is whether the Chancellor while
exercising revisional powers under Section 11-A of the Act is bound to act
and or seek advice of the Government/ Chief Minister in view of the
C.A.No.359 of 2013
16
language of Section 11 (8) of the Act. Sections 11-A and 11 of the Act are
reproduced as under:
11. Chancellor.-(1) The Governor of the Punjab shall be the
Chancellor of the University.
(2) The Chancellor or his nominee shall preside at the
Convocation of the University and the meetings of the Senate.
(3) If the Chancellor is satisfied that the proceedings of any
Authority are not in accordance with the provisions of this Act,
the Statutes, the Regulations, or the Rules, he may, after calling
upon such Authority to show cause why such proceedings
should not be annulled, by order in writing, annal the
proceedings.
(4) Every proposal to confer an honorary degree shall be
subject to confirmation by the Chancellor.
(5) The Chancellor shall have the power to assent to such
Statutes as are required to be submitted to him by the Senate or
withhold assent or refer them back to the Senate for re-
consideration.
(6) The Chancellor may remove any person from the
membership of any Authority if such person:-
(i)
has become of unsound mind; or
(ii)
has been incapacitated to function as member of
such Authority; or
(iii)
has proceeded outside Punjab for a period
exceeding six months; or
(iv)
has ceased to hold the position, office or
qualification which was pre-requisite for his
election/appointment as member of such Authority;
or
(v)
has been convicted by a court of law for an offence
involving moral turpitude;
(vi)
has failed to attend three consecutive meetings of
the authority; or
(vii) has accepted any assignment which involves his
absence from the University for a continuous
period of six months or more.
C.A.No.359 of 2013
17
(7)
[ Repealed]
(8)
In the performance of his functions under the Act the
Chancellor shall act and be bound in the same manner as the
Governor of a Province acts and is bound under Article 105 of
the Constitution of the Islamic Republic of Pakistan.
11-A. Revisional powers of the Chancellor.- The Chancellor
may, of his own motion or otherwise, call for and examine the
record of any proceedings in which an order has been passed
by any authority for the purpose of satisfying himself as to the
correctness, legality or propriety of any finding or order and
may pass such orders as he may deem fit.
29.
A bare reading of Section 11 of the Act prescribes functions of
the Chancellor whereas Section 11-A confers revisional powers upon him. A
three member Bench in the case of University of Punjab vs. Sardar Ali
reported in (1992 SCMR 1093), while interpreting Section 11 (8) of the Act
has held that Sub-Section 8 of Section 11 relates to the manner in which the
Chancellor shall act in discharge of his duties and provides that he would be
bound by the advice of the Chief Minister in the same manner as provided
under Article 105 of the Constitution. However, it was concluded that
powers conferred on the Chancellor under Section 11-A are independent of
any restrictions contained in Section 11(8) of the Act which are relatable to
his functions under the Act. Following the judgment in the case of Dr S.C
Barat and another vs. Hari Vinayak Pataskar (AIR 1962 MP 73), this Court
has further held that the powers and duties of the Chancellor conferred under
the Act are not akin to the powers and duties of the office of the Governor.
The judgment concluded that the appointments of the Respondents
(employees) fall within the domain of the Chancellor notwithstanding the
language of Sub-Section 8 of Section 11 of the Act.
C.A.No.359 of 2013
18
30.
The second judgment rendered by another three Member Bench
of this Court in the case of Federation of Pakistan vs. Muhammad Tariq
Pirzada (1999 SCMR 2189), in a way endorses the same view, interpreting
the powers conferred on the President under Article 32 of the Establishment
of Office of Wafaqi Mohtasib (Ombudsman) Order. It concluded that
powers exercised by the President as Appellate Authority are quasi judicial
in nature and that Article 48 of the Constitution does not debar the President
from exercising appellate powers conferred on him under the aforesaid order
independently. However, the view taken in the aforesaid two judgments was
not endorsed by a four Member Bench of this Court in the case of Rana
Aamer Raza Ashfaq vs. Dr. Minhaj Ahmad Khan (2012 SCMR 6), where
this Court has held that the Chancellor under the Act was bound by the
advice of the Government/Chief Minister while exercising revisional and or
appellate powers. In fact the Bench in this judgment only interpreted Section
11 (8) of the Act which relates to the functions of the Chancellor and held
that in discharge of his functions under the Act, he is bound by the advice of
the Chief Minister/Government. In this judgment this Court has considered
the case of Federation of Pakistan vs. Muhammad Tariq Pirzada (1999
SCMR 2189), but the learned Bench did not take note of the earlier
judgment in the case of University of Punjab vs. Sardar Ali reported in
(1992 SCMR 1093) and rendered conflicting judgment by holding that while
exercising revisional powers, the Chancellor was bound to seek/act on the
advice of the Government/Chief Minister.
31.
In order to appreciate the contentions of the parties on the
conflicting views recorded in the aforesaid judgments, it would be necessary
C.A.No.359 of 2013
19
for us to examine the scheme of the Act. Generally speaking the statutes
confer powers, functions and duties on different statutory authorities. These
are distinct concepts of administrative law, which have been developed by
the Courts over a long period and have different jurisprudential overtone and
consequences. Even in the case of Federation of Pakistan vs Durrani
Ceramics and others (2014 SCMR 1630), a distinction of the nature has been
drawn. A bare perusal of Sections 11 (8), 11-A, 15, 24, 26, 28 and 29 of the
Act would instantly indicate that the legislature has consciously used three
distinct concepts in different provisions of the Act. While the restriction
envisaged in Section 11 (8) is relatable to functions, Section 11-A refers to
powers of the Chancellor. Thus the restrictions envisaged in Section 11 (8)
would be applicable to cases where functions are discharged by the
Chancellor, but would not extend in cases of exercise of powers conferred
on him such as is the case under Section 11-A. Section 11 spells out the
functions of the Chancellor. The term “Function” in its ordinary parlance
means an act in which the Authority does not have the discretion whereas
the term “Power” implies exercise of discretion by the Authority.
32.
The term ‘Function’ as defined in Words and Phrases
(Permanent Edition - 17A) is that the word “function” is derived from the
Latin “functus’ which is the past participle of the verb ‘fungor’, which
means to perform, execute, administer. The most usual signification of the
term “function” is the fulfillment or discharge of a set duty or requirement;
exercise of a faculty; that power of acting in a specific way which appertains
to a thing by virtue of its special constitution. “Function” is that mode of
action or operation which is proper to any organ, faculty, office, structure,
C.A.No.359 of 2013
20
etc; and is the kind of action or activity, proper to a person or thing.
“Function’ is not patentable, but function shows the explanation of the form,
the result, the means of obtaining the result, and the operation and co-
operation of the elements to produce the result. “Function” performed by an
authority is inherent and goes by the office.
33.
The term ‘Power’ as defined in Words and Phrases (Permanent
Edition - 33) simply connotes the discretionary authority to perform. Unless
otherwise defined by statute, a “Power” is “General” when it is exercisable
in favor of any person that a donee may select and is “special”, “limited”, or
“particular” when it is exercisable only in favor of persons or a class of
persons designated or described in the instrument creating the power.
“Power” is a lawful ability to accomplish a given purpose. “Power”
conferred on an authority is derived or drawn from the law.
34.
Now the next question would be whether the powers conferred
under Section 11-A of the Act are administrative powers and/or quasi
judicial powers to be exercised by the Chancellor. The word “Quasi” is
defined ‘as if’, as though, as it were, in a manner, in a certain sense or
degree, seeming, seemingly, analogous to and it may mean resemblance.
The quasi judicial power is a duty conferred by words or by implication on
an officer to look into facts and to act on them in the exercise of discretion,
and it lies in the judgment and discretion of an officer other than a judicial
officer. A “quasi judicial power” is one imposed on an officer or an
authority involving the exercise of discretion, judicial in its nature, in
connection with, and as incidental to, the administration of matters assigned
or intrusted to such officer or authority. A “quasi judicial act” is usually not
C.A.No.359 of 2013
21
one of a judicial tribunal, but of a public authority or officer, which is
presumably the product or result of investigation, consideration, and human
judgment, based on evidentiary facts of some sort in a matter within the
discretionary power of such authority or officer. A quasi judicial power is
not necessarily judicial, but one in the discharge of which there is an element
of judgment and discretion; more specifically, a power conferred or imposed
on an officer or an authority involving the exercise of discretion, and as
incidental to the administration of matters assigned or entrusted to such
officer or authority.
35.
After examining the terms “Function”, “Power” and “Quasi
Judicial Power” we revert back to Article 105 of the Constitution, which
provides that the Governor under the Constitution, who is persona designata
Chancellor of the University, has to act on the advice of the Chief Minister.
Article 105 (1) provides that the Governor is bound to act on the advice of
the Chief Minister. This Article starts with the prefix ‘subject to the
Constitution’. In fact, under the scheme of the Constitution, there are
provisions where the Governor is bound by the advice of the Chief Minister,
but then there are exceptions where the Governor being the nominee of the
President is not required to follow the advice of the Chief Minister or where
the power has been conferred on the Governor to act independently or under
the Constitution.
36.
The argument of learned Sr.ASC, Mr. Makhdoom Ali Khan,
that since Section 11(8) has been introduced by an amendment, restricted the
powers of the Chancellor provided under Section 11-A to act on the advice
of the Chief Minister in the manner provided under Article 105 of the
C.A.No.359 of 2013
22
Constitution, therefore, Section 11(8) of the Act is applicable to Section 11-
A and the powers exercised by the Chancellor can only be exercised by him
on the advice of the Chief Minister. He further submits that the Revisional
powers of the Chancellor in terms of Section 11-A of the Act are not quasi
judicial in nature but are administrative in nature, therefore, the Chancellor
has no discretion to decide a revision or appeal independently. We are not
persuaded by these arguments for more than one reason. Section 11(8) was
amended on 12.03.1975, by Act XVI of 1975. To start with the Revisional
powers conferred under Section 11-A of the Act on the Governor
(Chancellor) of the Province are not qua his position as the Governor of the
Province but a statutory functionary namely, the Chancellor, who for the
time being happens to be the Governor of the Province as well. Had this not
been so, the Rules of Business of the Punjab Government would have also
specifically adverted to this category of cases which are required to be
decided by the Governor qua his position as Governor. It is similar to the
cases where the Judges of the High Courts are appointed as Members of the
Tribunals such as the Tribunal which hears appeals against the orders passed
by Returning Officers prior to the general elections under the Representation
of Peoples Act, 1976.
37.
The next contention of the learned Amicus Curiae that powers
conferred on the Chancellor under Section 11-A are not quasi judicial is also
not persuasive. In the foregoing paras, we have discussed that the term
“Quasi Judicial Power” refers to powers which cannot be delegated and are
to be exercised by the Persona Designata mentioned in the statute. Such
powers, functions or duties can neither be delegated to any other person or
C.A.No.359 of 2013
23
authority nor can be exercised on the recommendation of any other authority
or person. The powers, functions and duties provided under the scheme of
the Act are to be performed or discharged by the person or authority
designated by the statute and none other. Any other interpretation would
lead to absurd results; for instance while the entire proceedings including the
personal hearing shall be conducted by the person or authority specified in
the statute (Chancellor), yet the decision, which may be contrary to his own
findings, shall be taken by the Government (Chief Minister). This would be
a completely sham exercise. We are neither prepared to do gross injustice to
the plain language of the statute nor attribute such outcome to the legislative
intent. The more logical interpretation which comports with the legislative
intent is to look at the particular provision of the statute and determine the
nature of powers, functions and duties conferred by the statute. If it is in the
nature of quasi judicial power, then the Persona Designata is required to act
personally and not on the basis of any advice by any other person or
authority.
38.
Where the Tribunal or an Authority is conferred with quasi
judicial powers by the Statute, the duty to act fairly, justly by a proper
application of mind to the facts of the case after providing opportunity of
hearing to the person affected is far greater than compared to cases the
powers conferred by the Statute is of purely administrative nature involving
the multiple options to the authority and consideration of policy issues.
39.
Mr. Makhdoom Ali Khan, learned Sr.ASC, was of the view that
the Governor (Chancellor) while exercising revisional powers under Section
11-A or under any other provision of the Act has to seek the advice of the
C.A.No.359 of 2013
24
Chief Minister. This view does not appeal to reason. If such interpretation is
attached to the provisions of Section 11(8) and the powers conferring
discretion under Section 11-A on the Chancellor are restricted in the manner
that the Chancellor shall seek advice of the Government, after hearing the
party and before deciding the Revision, this by itself would be violative of
Article 10-A of the Constitution and against all the natural norms established
in the legal parlance. We have noticed that the scheme of the Act has not
been adverted to by the Honourable Bench while deciding the case of Rana
Aamer Raza Ashfaq vs. Dr. Minhaj Ahmad Khan (2012 SCMR 6), instead it
has concluded that functions in terms of Section 11(8) or otherwise provided
by the Act were synonymous to the powers of the Chancellor conferred by
the Act.
40.
As we have also noticed that the earlier judgment in the case of
University of Punjab vs. Sardar Ali (1992 SCMR 1093) has not been
considered in the judgment of Rana Aamer Raza Ashfaq (supra), which was
directly on point. In the judgment of University of Punjab (supra), it has
been held that Section 11 (8) relates to the manner in which the Chancellor
shall act in discharge of his duties. All that Sub-Section 8 of Section 11
provides is that the Chancellor (Governor) shall be bound by the advice of
the Chief Minister in the manner as he is bound in the discharge of his
functions under Article 105 of the Constitution. Mere reference to Article
105 of the Constitution in Section 11 (8) does not take away the revisional
powers of the Chancellor conferred on him under Section 11-A of the Act.
Section 11 (8) provides that “the Chancellor shall act and be bound in the
same manner as the Governor of a Province acts and is bound under Article
C.A.No.359 of 2013
25
105 of the Constitution”. This clearly manifests that the restriction is
relatable to the function of the Chancellor whereas Section 11-A empowers
the Chancellor to exercise his discretion, when he hears revision and or
appeal. In other words, the Chancellor, who is Persona Designata under the
Act, is conferred power but in a different capacity which cannot be termed
identical to that of the office of the Governor. Looking from another angle,
the Punjab Government has introduced the Punjab University Employees
(Efficiency & Discipline) Statutes, 1975 (hereinafter referred to as Statutes
of 1975. The Statute of 1975 is made applicable to the Universities
Employees except holders of such posts as specified by the Chancellor and
regulates the terms and conditions of the Employees of the Universities of
Punjab. This Statute confers powers of appointments, promotions and
actions against Employees of the Universities. Sections 12,15,17 and other
provisions confer powers on the Chancellor for hearing Revisions and
Appeals preferred by the Employees against the orders of the competent
authorities. If Section 11 (8) is interpreted in the manner as advanced by the
learned ASC, it would mean that if an employee prefers a Revision or
Appeal by invoking the provisions of the Act or Statutes of 1975, the
Chancellor cannot pass an order unless he reverts back to the Chief Minister
and or the Government for its advice. The case of University of Punjab vs.
Sardar Ali referred to hereinabove has focused this issue while interpreting
Section 11(8) of the Act and held that the Chancellor will apply his mind
and decide the appeals or revisions independently and Section 11(8) will not
come in his way.
C.A.No.359 of 2013
26
41.
Mr. Khawaja Haris learned Amicus Curiae in fact has argued
that the powers of Chancellor cannot be restricted by Section 11(8) while he
exercises the Revisional powers under Section 11-A of the Act. He has
relied upon the language of Section 11(8) and said that even in the scheme
of Constitution, the Governor has been given discretion to exercise some of
the powers independently and has not been made to responsible to act on the
advice of the Chief Minister of the Province on all the issues. He contended
that in the like manner the Chancellor is not bound by the advice of the
Chief Minister in the matters where the Chancellor has been conferred
powers as discussed.
42.
From the aforesaid discussion, we are clear in our minds that
the principles enunciated in the judgments rendered by this Court in the
cases of University of Punjab vs. Sardar Ali (1992 SCMR 1093) and
Federation of Pakistan vs. Muhammad Tariq Pirzada (1999 SCMR 2189),
are in consonance with the spirit of the provisions of the Act and the
conflicting view in the case of Rana Aamer Raza Ashfaq vs. Dr. Minhaj
Ahmad Khan (2012 SCMR 6) is not the good law. Section 11-A or the other
provisions of the Statute of 1975 under which Chancellor exercises
revisional or appellate powers, are independent and do not make it
obligatory on him to seek and or act on the advice of the Chief Minister in
terms of Section 11(8) of the Act.
43.
We have also perused the additional note of one of the
Honourable Judge of this Court in the case of Rana Aamer Raza Ashfaq,
who while concurring with the findings of the bench has concluded that by
the 18th Amendment, the concurrent list was abolished and the ‘subject of
C.A.No.359 of 2013
27
Education’ went within the exclusive legislative domain of the Province.
The Honourable Judge, while interpreting different provisions of the
Constitution has held that after the 18th Amendment, if the power of the
Governor (Chancellor) is not curtailed in terms of Section 11(8), it may lead
to conflict of interest between the Federation and the Province. The Hon’ble
Judge was persuaded to reach such a conclusion on the ground that under the
scheme of the Constitution, the Governor is the nominee of the President and
is also bound by the advice of the Chief Minister. According to the Hon’ble
Judge that after abolition of the concurrent list, the President may ask the
Governor (Chancellor) to act contrary to the advice of the Chief Minister on
the subject of Education. We, with profound respects, differ with the view of
the Honourable Judge. Under the scheme of the Constitution, the Governor
has to perform certain functions provided therein. The Article 105 of the
Constitution opens with the prefix “subject to Constitution” and specifies the
functions of the Governor performed by him on the advice of the Chief
Minister but the scheme of the Constitution also includes the President who
may make such provision as he thinks fit for discharge of functions of the
Governor “in any contingency not provided for in this part”. Therefore, the
functions of Governor in terms of Article 105(1) would be distinct from the
functions of the Governor, which he has to discharge in terms of Article
101(5) of the Constitution. Both these provisions of the Constitution are
independent of each other and mutually exclusive. There are other
provisions of the Constitution which confer powers on the Governor to
exercise his discretion without seeking advice of the Chief Minister/ or act
on the directives of the President. Since 1975 till date, the Provincial
Governments have been legislating laws on Education and the Federation
C.A.No.359 of 2013
28
has never intervened. This approach of the Hon’ble Judge perhaps is not in
conformity with the scheme of the Constitution. We, for the aforesaid
reasons, do not endorse the view of the Hon’ble Judge.
44.
Before parting with the judgment, we acknowledge the able
assistance extended by both the learned Amicus Curiae, Additional Attorney
General for Pakistan and Advocate Generals of the Provinces and the
Counsels representing the parties.
45.
For the aforesaid reasons, this appeal is allowed and the
judgment of the Lahore High Court allowing the Writ Petition of the
Respondent is set aside. The matter is remanded to the High Court for
hearing the Writ Petition on merits to be decided within three months from
the date of communication of the orders.
Chief Justice
Judge
Judge
Judge
Judge
Announced in open Court on _____________________.
(Approved for Reporting)
Judge
Sohail/**
Civil Appeal No.359 of 2013
MIAN SAQIB NISAR, J:- I have had the benefit of going
through the judgment rendered by my learned brother, Justice Amir Hani
Muslim, however I beg to differ with the opinion expressed therein, and
therefore take the liberty to present my dissenting view.
2.
The key question involved in the matter is whether the
Chancellor of the University of Punjab (University), is bound by the advice of
the Chief Minister of Punjab in terms of Section 11(8) of the University of
Punjab Act, 1973 (the Act), while exercising his (Chancellor’s) powers under
Section 11-A of the Act.
3.
The facts of the case and the arguments put forth by the
learned counsel for the appellant, the learned amici curiae, learned law
officers for the Federation and the respective Provinces, and the learned
counsel for the respondents have been succinctly expressed in my
brother’s opinion, and thus for the sake of brevity the same are not
reproduced here.
4.
Heard. In order to resolve the proposition at hand, the
relevant provisions of law are reproduced below:-
University of Punjab Act, 1973
“11.
Chancellor.– (1) The Governor of the Punjab shall
be the Chancellor of the University.
(2)
The Chancellor or his nominee shall preside at the
convocation of the University and the meetings of the
Senate.
(3)
If the Chancellor is satisfied that the proceedings of
any Authority are not in accordance with the provisions of
this Act, the Statutes, the Regulations, or the Rules, he may,
after calling upon such Authority to show cause why such
Civil Appeal No.359 of 2013
2
proceedings should not be annulled, by order in writing,
annul the proceedings.
(4)
Every proposal to confer an honorary degree shall
be subject to confirmation by the Chancellor.
(5)
The Chancellor shall have the power to assent to
such Statutes as are required to be submitted to him by the
Senate or withhold assent or refer them back to the Senate
for re-consideration.
(6)
The Chancellor may remove any person from the
membership of any Authority if such person:-
(i)
has become of unsound mind; or
(ii)
has been incapacitated to function as member of
such Authority; or
(iii)
has proceeded outside Punjab for a period
exceeding six months; or
(iv)
has ceased to hold the position, office or
qualification which was pre-requisite for his
election/appointment as member of such Authority;
or
(v)
has been convicted by a court of law for an offence
involving moral turpitude;
(vi)
has failed to attend three consecutive meetings of
the authority; or
(vii)
has accepted any assignment which involves his
absence from the University for a continuous period of
six months or more.
Provided that no order under this subsection
shall be passed unless the person to be affected
thereby is afforded an opportunity of being heard;
(7)
[Repealed]
Civil Appeal No.359 of 2013
3
(8)
In the performance of his functions under the Act
the Chancellor shall act and be bound in the same manner
as the Governor of a Province acts and is bound under
Article 105 of the Constitution of the Islamic Republic of
Pakistan.
11-A. Revisional powers of the Chancellor.– The
Chancellor may, of his own motion or otherwise, call for
and examine the record of any proceedings in which an
order has been passed by any authority for the purpose of
satisfying himself as to the correctness, legality or propriety
of any finding or order and may pass such orders as he may
deem fit.
Provided that no order under this section shall be
passed unless the person to be affected thereby is afforded
an opportunity of being heard.”
* * * * * * *
Constitution of the Islamic Republic of Pakistan, 1973
“105. Governor to act on advice, etc.
(1) Subject to the Constitution, in the performance of his
functions, the Governor shall act on and in accordance
with the advice of the Cabinet, or the Chief Minister
Provided that within fifteen days the Governor may
require the Cabinet or, as the case may be, the Chief
Minister to reconsider such advice, whether generally
or otherwise, and the Governor shall, within ten days,
act in accordance with the advice tendered after such
reconsideration.
(5) The provisions of clause (2) of Article 48 shall have
effect in relation to a Governor as if reference therein
to “President” were reference to “Governor”.
Civil Appeal No.359 of 2013
4
48. President to act on advice, etc.
(1) ………………………………………………………………
(2) Notwithstanding anything contained in clause (1), the
President shall act in his discretion in respect of any
matter in respect of which he is empowered by the
Constitution to do so and the validity of anything done
by the President in his discretion shall not be called in
question on any ground whatsoever.”
An analysis of the proposition at hand requires an examination of the role
and functions of the Chancellor of the University. The Chancellor, as
envisaged by Section 10 of the Act, is the highest ranking officer of the
University, and exercises numerous functions and/or powers as
prescribed by the Act (see, inter alia, Section 11(3) to 11(6) specially). His functions
and powers include, inter alia, the power to nominate members of the
Senate, Syndicate, etc., to remove any person from the membership of the
Senate, Syndicate, Academic Council, etc., and to review orders of the
Syndicate. Section 11(8) of the Act, in which reference has been made to
Article 105 of the Constitution of the Islamic Republic of Pakistan, 1973
(Constitution), binds the Chancellor, in the performance of his functions
under the Act, by the advice of the Chief Minister, as the Governor of a
Province is bound under Article 105 ibid.
5.
This allows us to segue into a discussion about the interplay
between the offices of Governor and Chancellor. The office of the Governor
is a constitutional one and therefore his functions are constitutional. The
office of the Chancellor is a statutory one created by the Act and therefore
his functions are statutory. Hence, functions conferred upon the
Governor, or more accurately the person who acts as the Governor, by
any law other than the Constitution, would be in the nature of functions
Civil Appeal No.359 of 2013
5
conferred upon a persona designata. The persona designata doctrine, is
that non-judicial functions can be conferred on judges in their personal
capacity. The Latin phrase means that a person is considered as an
individual rather than as a member of a class. Originally the idea was that
a judge, in his personal capacity, could be appointed to an office involving
the performance of administrative or executive functions including
functions which were quasi-judicial in their nature. In this case the
Governor, a member of the executive, as persona designata, would be
exercising administrative powers of a Chancellor, when deciding matters
under the provisions of Section 11-A of the Act. The duties and powers of
the Chancellor are not conferred upon the Governor, but upon the person
who happens to occupy the office of Governor. The Chancellor does not
perform his functions or act in exercise of powers available to him as
Governor under the Constitution and is not bound by the advice of the
Chief Minister as per Article 105 of the Constitution, rather since the
appointment of the Chancellor is statutory, the functions and powers
would be controlled by the statute, and the Chancellor would be bound by
the advice of the Chief Minister as per Section 11(8) of the Act. This is
manifest from a plain reading of Section 11(8) which draws a parallel with
Article 105 by using the words “in the same manner as…” This fine distinction
which may appear illusory is in fact very real and important and thus
needs to be appreciated. This reasoning is bolstered by the fact that the
statutory position of Chancellor under the Act could just as easily have
been conferred upon anyone else, such as a Provincial Minister, a
Provincial Secretary, or a retired Judge of the Supreme Court or a High
Court, and the statute could have placed a limitation that he (Chancellor)
would be bound by the advice of the Chief Minister. To this extent, the
judgment reported as University of the Punjab, Lahore and 2 others Vs.
Civil Appeal No.359 of 2013
6
Ch. Sardar Ali (1992 SCMR 1093) in which a judgment from across the
border reported as Dr. S. C. Barat and another Vs. Hari Vinayak
Pataskar and others (AIR 1962 Madhya Pradesh 73) was relied upon
and cited with approval, is the correct enunciation of law.
6.
Going further, under Article 105(1) of the Constitution, the
Governor is to act on and in accordance with the advice of the Cabinet or
the Chief Minister. According to Article 105(5) read with Article 48(2) of the
Constitution, the Governor, in respect of matters in which he is
empowered by the Constitution to exercise his discretion, is not bound by
the advice of the Cabinet or the Chief Minister. At this juncture it may be
pertinent to mention that the Constitution itself draws a distinction
between those functions of the Governor in which he has no discretion
and is bound by the advice of the Chief Minister, in other words the
Governor’s constitutional duties and powers, and those functions in which
the Governor is empowered to exercise his discretion and is therefore not
bound by the advice of the Chief Minister. The articles of the Constitution
which spell out discretionary powers of the Governor where he is not
bound by the advice of the Chief Minister can be identified thus: either the
article itself contains the word “discretion” or the exercise of discretion is
spelt out from the wording/language of the article, or the structure of the
function conferred upon the Governor in the article is such that it
demands that the Governor exercise his discretion without the advice of
the Chief Minister, or the particular article explicitly excludes the
application of Article 105. The interpretation of the said article unfolds the
constitutional rule that the Governor is bound by the advice of the Chief
Minister and the constitutional exception is that the former is not
bound by the advice of the latter in certain matters which have been
placed solely within the former’s domain. When Article 105 of the
Civil Appeal No.359 of 2013
7
Constitution is referred to in Section 11(8) ibid it embodies both, the
constitutional rule and the constitutional exception. But for this purpose
it is not the constitutional provisions which require exposition rather the
Act simpliciter.
7.
A bare reading of Section 11(8) of the Act clearly provides
that the Chancellor would be bound by the advice of the Chief Minister in
the performance of the former’s functions “under the Act”. This
unequivocally stipulates the constitutional rule (embodied in the Act) and
means that any functions undertaken or carried out by the Chancellor
under the Act would be subject to the advice of the Chief Minister. What is
now required to be ascertained is whether there are any exceptions to the
said rule. All the learned counsel who argued the matter before us have
not relied upon any other provision of the Act to indicate the same except
Section 11-A. The submission of the counsel for the appellant is that this
section confers a revisional power upon the Chancellor which is a quasi-
judicial function therefore it should be interpreted to mean an
independent power of the Chancellor. Mr. Makdoom Ali Khan, learned
amicus, has argued that it is one of the functions of the Chancellor under
the Act and that it is not his discretionary power so as to fall within the
exception. Mr. Khawaja Haris Ahmed, the other learned amicus, has
submitted that the very nature of the revisional power makes it a
discretionary power of the Chancellor. In view of the above, the entire
controversy revolves around the interpretation of Section 11-A.
8.
Section 11-A does not provide that the revisional power so
exercised by the Chancellor shall be in his “discretion”; it also does not
provide a specific exclusion that whilst exercising the revisional power the
Governor shall not be bound by the advice of the Chief Minister. Should
the exercise of discretion be spelt out from the words of the section or
Civil Appeal No.359 of 2013
8
discretion should be read into it? Does the structure, purpose and object
of the function exercised by the Chancellor require that he not be bound
by the advice of the Chief Minister? In this context, it is salutary to recall
that the power of revision is a supervisory power, jurisdiction, or function
of an authority, be it executive or judicial/quasi-judicial. In the exercise of
executive supervisory power a superior executive officer/authority may,
either suo moto or when approached by someone affected by any
action/order of a subordinate authority, in appropriate proceedings
available under the law (note: if revisional powers are provided under the law) correct
the action or order. Correspondingly a superior judicial forum may
exercise its supervisory power/function in aid of a person aggrieved by the
order of a subordinate judicial forum. But these two revisional
jurisdictions, one on the executive side and the other on the judicial side,
occupy different spheres and the two do not overlap. The exercise of the
revisional power on the executive side remains purely administrative in its
own hierarchy, whilst the exercise of the judicial power retains its judicial
character. Only for the reason that the power of the Chancellor as per
Section 11-A has been described to be a revisional power does not make
him a judicial/quasi-judicial authority. It may be pertinent to mention
here that according to Section 11(3) ibid the Chancellor, if satisfied that
the proceedings of any authority are not in accordance with the provisions
of the Act etc. may, after calling upon such authority to show cause why
such proceedings should not be annulled, annul such proceedings by
order in writing. It is nobody’s case that this is a discretionary power of
the Chancellor and that while exercising this power/function he is not
bound by the advice of the Chief Minister. When we compare the
revisional power envisaged by Section 11-A and the one referred to above
[Section 11(3)], these are akin and both are administrative in nature. I beg to
Civil Appeal No.359 of 2013
9
differ with the distinction drawn by my brother in his opinion between
Section 11 which provides for “functions” and Section 11-A which provides
a “power” and on the basis whereof my learned brother restricts the
applicability of Section 11(8) to the former and does not extend it to the
latter. With profound respect, I am not persuaded that the applicability or
otherwise of Section 11(8) rests upon the distinction between “function”
and “power”. The argument that while exercising his functions under
Section 11 the Chancellor is bound by the advice of the Chief Minister but
while exercising power under Section 11-A the Chancellor is not bound by
such advice on account of an element of discretion involved in the exercise
thereof, overlooks the fact that the word “power” has been used in Section
11(5) itself. How can the word “Chief Minister” be read instead of the word
“Chancellor” for purposes of all provisions in Section 11, but not Section
11-A, especially when Section 11(5) also stipulates a power of the
Governor? To my mind the bifurcation between “functions” and “powers”
of the Chancellor is ephemeral and cannot be used to determine the
applicability of Section 11(8).
9.
I find myself unable to agree that Section 11-A is a quasi-
judicial function and therefore it would be absurd that though the
Chancellor has discretion, he would still be bound by the advice of the
Chief Minister. In my considered view, the power of revision under Section
11-A is not of a quasi-judicial nature but an executive supervisory power,
conferred upon the highest ranking officer in the University hierarchy, i.e.
the Chancellor, in order to serve as a check and balance mechanism to
ensure that the Senate, Syndicate, Academic Council, etc. pass orders in
accordance with law and propriety. In this respect, the illustration quoted
by Mr. Makhdoom Ali Khan has much force, in that Article 45 of the
Constitution, whereby the President is empowered to grant pardon, is not
Civil Appeal No.359 of 2013
10
a judicial/quasi-judicial function, rather it is the exercise of a prerogative
conferred upon the Head of State by the Constitution, on the advice of the
Government, to pardon a person or commute a sentence etc., and so
ultimately it is an executive function. Likewise, on the statutory plane, the
office of the Ombudsman is essentially an executive function, which
(Ombudsman) serves as a statutory check on the Government to so as to curb
instances of maladministration. In this regard the enunciation of law in
the judgment reported as Federation of Pakistan through Secretary,
Establishment Division, Government of Pakistan, Islamabad Vs.
Muhammad Tariq Pirzada and others (1999 SCMR 2189) to the extent
that the President exercised quasi-judicial powers while deciding
representations under the Ombudsman law, does not seem to be the
correct exposition of law for the reason that the very functions of the
Ombudsman are not of a judicial nature, since the Ombudsman simply
holds a probe into maladministration by a Government agency and makes
recommendations which is very different from the orders a judicial officer
passes, and from those recommendation(s), a representation lies to the
President. Further there is no power of enforcement of the Ombudsman’s
recommendations, and neither is there any mechanism for enforcement of
the President’s decision. I do not find that it would negate the spirit and
purpose of the power of revision or lead to any manifest absurdity to make
the Chancellor bound by the advice of the Chief Minister in respect of the
exercise of power under Section 11-A. The argument that it would render
the Governor’s power redundant is in fact quite contrary to our
constitutional scheme and democratic structure, wherein the executive
functions are primarily exercised by the Prime Minister or the Chief
Minister as the case may be. The Governor is a representative of the
Federation. On the touchstone of separation/trichotomy of powers it is
Civil Appeal No.359 of 2013
11
incomprehensible as to how the Governor can be given the discretion to
interfere in the executive functions of the Province.
10.
Coming back to the reasons as to why I am of the view that
Section 11(8) controls Section 11-A of the Act, Section 11(8) specifically
provides for the exercise of certain functions by the Governor and refers to
Article 105 of the Constitution which is to be followed in letter and spirit.
The provisions of Act do not provide for any exception that allows the
Governor to act otherwise than in accordance with the advice of the Chief
Minister. If there was meant to be an exception to this general rule of
being bound by the advice of the Chief Minister, then such an exception
would/should have been expressly mentioned in the statute or else fall
into one of the categories outlined above. The interpretation that whilst
exercising his powers of revision under Section 11-A the Governor is to act
on his own without the advice of the Chief Minster would defeat the
mandate of the clear provisions of Section 11(8). Furthermore, Section 11-
A was inserted by the University of the Punjab (Amendment) Ordinance,
1982, approximately nine years after the promulgation of the Act; had the
Legislature so wanted, it could have framed the section ibid as a non-
obstante clause, but this was not done, making it patently clear that the
intention of the Legislature was to render Section 11-A subject to the
already existing Section 11(8).
11.
The argument that the office of the Chancellor was created to
keep such matters away from political expediencies and considerations in
order to forestall the Government of the day from interfering in the affairs
of the University and further that the Chancellor has to apply his
independent mind; suffice it to say that the very fact that the Governor is
to act as the Chancellor as persona designata negates this argument,
which (argument) assumes that the Chancellor, who is the Governor, will not
Civil Appeal No.359 of 2013
12
be influenced by political considerations and conversely that the
Government (Chief Minister) will act whilst keeping political concerns at the
forefront. We cannot assume that making the Chancellor bound by the
advice of the Chief Minister would necessarily lead to the powers under
Section 11-A being exercised in favour of the University. The University is
a statutory body and the Chancellor a statutory functionary. Section 11-A
does not provide for a quasi-judicial function but an administrative or
executive supervisory function, therefore even the principle of separation
of powers is not violated.
12.
Moreover, by interpreting Sections 11(8) and 11-A of the Act
in such a way so as to empower the Chancellor with the sole discretion
whilst exercising revisional powers would essentially result in the
Federation interfering with Provincial autonomy as mentioned above. The
Governor is for all constitutional intents and purposes, a Federal
appointee and a representative of the Federation in the respective
Province. Since the Eighteenth Amendment, education has become a
Provincial subject, thus no interpretation can be placed upon the Act
which does violence to the Constitutional scheme and the Federation
cannot be allowed to interfere and impinge upon the autonomy of the
Province, as has been highlighted by my learned brother, Justice Asif
Saeed Khan Khosa, in his note in the judgment reported as Rana Aamer
Raza Ashfaq Vs. Dr. Minhaj Ahmad Khan (2012 SCMR 6), which I
believe is the correct exposition of law.
13.
In light of the above, the crux of this opinion is that the
Chancellor is bound by the advice of the Chief Minister in view of Section
11(8) of the Act, and that the said section governs the powers exercised by
the Chancellor under Section 11-A of the Act. Therefore, while deciding
the revision petition of the appellant under Section 11-A ibid, the
Civil Appeal No.359 of 2013
13
Chancellor ought to have sought the advice of the Chief Minister on the
matter and would have been bound by the same. The Chancellor whilst
deciding the revision himself has not acted in accordance with law, thus
the view taken by the learned High Court in this regard in the impugned
judgment is correct and does not warrant interference by this Court, in
the light whereof, this appeal is dismissed.
JUDGE
| {
"id": "C.A.359_2013.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT: MR. JUSTICE MIAN SAQIB NISAR
MR. JUSTICE SH. AZMAT SAEED
MR. JUSTICE MANZOOR AHMAD MALIK
CIVIL APPEAL NO.363-L OF 2015
(Against the judgment dated 13.9.2011 of the
Lahore High Court, Lahore passed in RFA
No.279/2009)
Ch. Nazir Ahmed
…Appellant(s)
VERSUS
Ali Ahmed and another
…Respondent(s)
For the Appellant(s):
Mr. Muhammad Farooq Qureshi Chishti, ASC
For the Respondent(s):
Mr. Alamgir, ASC
Mr. Mehmood-ul-Islam, AOR
On Court’s call:
Ms. Ayesha Hamid, Advocate
Amicus Curiae (with the permission of the Court)
Date of Hearing:
04.12.2015
…
JUDGMENT
MIAN SAQIB NISAR, J.- Vide order dated 27.11.2015 leave in
the matter was granted to consider:-
(i)
whether a suit for dissolution and rendition of accounts of a
partnership firm, which is not registered would be barred in terms
of section 69 of the Partnership Act, 1932 and that the plaint
should be rejected on that account under Order VII Rule 11 CPC
and/or
(ii)
if the suit is not for dissolution of partnership or rendition of
accounts of an unregistered firm whether such suit is barred by
law and thus the plaint could be rejected.
2.
This appeal arises from the following facts:- that the appellant
filed a suit for declaration that respondent No.1 be bound to act as per the
partnership deed, specific performance (of the partnership deed), rendition of
Civil Appeal No.363-L/2015
-: 2 :-
accounts,
cancellation
of
document
(Waqaf-ul-Aulad)
and
permanent
injunction (hereinafter the “suit”) on the basis of an unregistered partnership
deed dated 22.02.1986 executed by and between the appellant and the
respondent no.1 (real brothers) for the purpose of establishing and running a
school. Upon the refusal of the respondent no.1 to pay profits after 2006
and upon learning that the school property of the partnership had been
transferred by the respondent no.1 to the respondent no.2 (his real son)
through a Waqaf-ul-Aulad in 2004, the appellant was constrained to file the
suit. Vide order dated 28.04.2009 the Civil Court at Lahore accepted the
respondents’ application under Order VII, Rule 11 CPC and rejected the
plaint on the basis that the suit is barred under section 69 of the
Partnership Act, 1932 (the Act) as the noted firm is not registered with the
concerned authority. This order has been upheld by the learned High Court
through the impugned judgment dated 13.09.2011 when challenged by the
appellant in RFA 279/2009.
3.
The learned counsel for the appellant argued that the
impugned judgments are against the law and facts. He submitted that the
firm did not exist at the time of institution of the suit and therefore the
appellant could sue for rendition of accounts under sub-section (3) of
section 69 of the Act. He stated that the bar of section 69 ibid was not
attracted. Whereas, the learned counsel for the respondents supported the
impugned judgments. He argued that the bar of section 69 was absolute
and the same was attracted to the suit. He submitted that the partnership
deed was for a period of 30 years and this time period was set to expire in
February 2016 at which time the plaintiff would be free to file a suit for
accounts but that such a suit for accounts was barred till such time as the
partnership was not dissolved. The appellant, rather than seeking
dissolution had contrarily sought specific performance of the partnership.
He relied on The Australasia Bank Ltd. Vs. Messrs A. Ismail Ji & Sons
Civil Appeal No.363-L/2015
-: 3 :-
and others (PLD 1952 Lah 314), Lakhani Textile International through
Partner Vs. Messrs Southern Agencies (Pvt.) Ltd. (2008 CLC 444),
Province of Sindh through Secretary, Public Work Department,
Government of Sindh, Karachi and 6 others Vs. M/s Royal Contractors
(1996 CLC 1205), Syed Nazir Hussain Vs. Ahtisham Muhammad Ali and
2 others (1989 MLD 88) and Abdul Rehman Vs. Parvez Ahmed Butt and
2 others (1983 CLC 1740).
4.
The amicus curiae submitted that the bar contained in Section
69(1) and (2) of the Act is absolute and during the subsistence of the
partnership (which is not dissolved), no suit of the nature mentioned therein can
be filed, however from the language of sub-section (3)(a), three (3)
exceptions have been drawn where the disability under this section will not
operate i.e.:-
(a)
the enforcement of any right to sue for the dissolution
of a firm;
(b)
for accounts of a dissolved firm; and
(c)
any right or power to realize the property of a dissolved firm.
These exceptions are carved out to meet such types of exigencies
where a partner of an unregistered firm files certain proceedings for
enforcement of any right to sue for the dissolution of the firm or any
proceedings to seek accounts or realize the property of a dissolved firm. She
in the above context has relied on Usman vs. Haji Omer (PLD 1966 SC
328), Kantilal Jethalal Gandhi Vs. Ghanshyam Ratilal Vyas (AIR 1994
Guj 56), Mahan Traders Vs
Civil Appeal No.363-L/2015
-: 4 :-
309 (Del)] and Prem Lata and another Vs. Ishar Dass Chaman Lal and
others (AIR 1995 SC 714). Furthermore in order to highlight the true
import, she has elucidated the scope and object of Section 69 ibid (which as
pleaded by her shall reflect in the succeeding part of this opinion). However she submitted
that as many as five (5) reliefs have been sought by the appellant in the suit
and the Court(s) has to determine the nature of the suit, in pith and
substance and if the bar of section 69 is attracted to one or more of such
claim/relief the Court may apply the rule of severance and save the plaint
from rejection to the extent of that relief qua which the bar is not attracted.
This according to her can be done by implying the dissolution of the firm.
5.
Heard. Section 69 of the Partnership Act is as under:-
“69. Effect of non-registration:
(1)
No suit to enforce a right arising from a contract or
conferred by this Act shall be instituted in any Court by
or on behalf of any person suing as a partner in a firm
against the firm or any person alleged to be or to have
been a partner in the firm unless the firm is registered
and the person suing is or has been shown in the
Register of Firms as a partner in the firm.
(2)
No suit to enforce a right arising from a contract shall
be instituted in any Court by or on behalf of a firm
against any third party unless the firm is registered and
the persons suing are or have been shown in the
Register of Firms as partners in the firm.
(3)
The provisions of sub-sections (1) and (2) shall apply
also to a claim of set-off or other proceeding to enforce
a right arising from a contract, but shall not affect-
(a)
the enforcement of any right to sue for the
dissolution of a firm or for accounts of a
dissolved firm, or any right or power to release
the property of a dissolved firm, or
Civil Appeal No.363-L/2015
-: 5 :-
(b)
the powers of an official assignee, receiver or
Court under the insolvency Federal Territory of
Karachi
Act,
1909],
or
the
Provincial
Insolvency Act, 1920, to realise the property of
an insolvent partner.
(4)
This section shall not apply –
(a)
to firms or to partners in firms which have no
place of business in Pakistan, or whose places
of business in Pakistan are situated in areas to
which, by notification under section 56, this
Chapter does not apply, or
(b)
IX of 1887: to any suit or claim of set-off not
exceeding one hundred rupees in value which, is
not of a kind specified in the Second Schedule to
the Provincial Small Cause Courts Act, 1887, or
to any proceeding in execution or other
proceeding incidental to or arising from any
such suit or claim.”
[emphasis supplied]
From the unambiguous language of the section the intent and purpose of
the legislature is loud and clear, that is to make the adverse effects of non-
registration so broad-based and comprehensive so as to make the
provisions virtually compulsive. This seems to have been mandated with an
unmistaken object to exert pressure which is to be brought to bear on the
partners to have the firm and themselves registered. The section provides
for the effect of non-registration of firms, in that sub-section (1) relates to
suits by partners against firms or the partners and sub-section (2) relates
to suits by firms against third person, as fatal, while sub-sections (3) and
(4) lay down exceptions to the (lethal) effects of the non-registration of
firms[1]. On account of the penal consequences provided by sub-sections (1)
[1] Partnership Law by P. N. Chada
Civil Appeal No.363-L/2015
-: 6 :-
and (2) of Section 69 there cannot be two opinions that the registration of
the firm, though has been left optional for the partners and that the facility
of registration has been provided without compulsion (see Section 58 of the Act),
for the purposes of suits falling within its purview the provisions of Section
69 are absolutely mandatory[2]. In this regard the outline of the provisions
may be broadly captured as below:
(i)
A partner of an unregistered firm cannot sue the firm or any of
its partners, past or present, for enforcing a right conferred by
the Act or arising out of the contract of partnership.
(ii)
An unregistered firm cannot file a suit against any third person
for enforcing a right arising out of a contract.
(iii)
The above two disabilities also apply to a claim of set off or any
other proceeding to enforce a right arising out of contract. But
they do not apply to –
(a)
the right to sue for dissolution or for accounts of a
dissolved firm, or to realize the property of a dissolved
firm; or
(b)
the power to realize the property of an insolvent partner.
(iv)
The section does not affect, –
(a)
firms located in areas to which the Act does not extend or
which are exempt from the operation of the Act;
(b)
proceeding, etc. not exceeding Rs.100 in value.
In other words sub-sections (1) and (2) of Section 69 place a complete bar
on every proceeding initiated vide a suit by an unregistered firm and its
partners. However, as expressly provided by sub-sections (3) and (4), the
aforesaid rules causing disabilities are not applicable to, and registration of
a firm is not necessary in, the following cases:-
[2] Law of Partnership by Avtar Singh
Civil Appeal No.363-L/2015
-: 7 :-
(1)
where the suit is for the dissolution of a firm;
(2)
where the suit is for rendition of accounts of a dissolved firm;
(3)
where the suit is for realization of the property of a dissolved
firm.
6.
In view of the above, it may be pointed out (reiterated) that
though the Act places no prohibition upon an unregistered partnership
making contracts either inter se the partners or with some third party, nor
forbids an unregistered partnership acquiring property or assets, all
Section 69 does is to make a suit instituted by an unregistered partnership
to recover property or enforce rights, unenforceable and precluded. This
undoubtedly is a penal provision, therefore on this account it must be
construed strictly. In other words the registration of a firm is a condition
precedent and sine qua non to the right to institute a suit by or on behalf of
the firm or its partner(s) as the case may be and any suit instituted against
the mandate of law shall be barred, with the obvious consequences of
rejection of the plaint by the Court as per Order VII Rule 11(c), CPC which
provides “where the suit appears from the statement in the plaint to be barred by any
law”. The purpose of section 69 would appear to be that in the event of a
dispute the aggrieved party should be able to easily identify the name and
details of persons who would eventually be liable for discharging the
obligations of the firm and enforcing their rights against the firm and its
partners, because unlike a company, a partnership firm is not a distinct
legal entity and its partners remain personally liable for all the liabilities
and debts of the firm subject to their inter se contract and proportions
under thereto. Sub-section (2) of Section 69 in particular seems to have
been enacted in the interest of strangers dealing with the partners
representing a firm to ensure the responsibility of the firm and the
respective partner(s) and in this context and for that purpose the
Civil Appeal No.363-L/2015
-: 8 :-
registration of the firm has been made compulsory (note:- only for the legal
proceedings) but it is further required that the persons suing on behalf of the
firm should be shown in the “Register of the Firms” as partners in the firm.
This section as mentioned above is mandatory in character and its effect is
to render a suit by a plaintiff (the firm or partners) barred in respect of a right
available to it/him under the contract(s) or the law.
Our above view is fortified by the law already laid down in a judgment
of this Court reported as Usman vs. Haji Omer (PLD 1966 SC 328),
wherein it has been held:-
“……….Non-registration of the firm under section 69 of
the Partnership Act does not affect the validity of the
partnership or prevent any of the partners from suing for
the dissolution of the firm or for accounts or the realization
of the property of a dissolved firm. This section only bars a
suit for enforcing a right arising out of a contract against
either the firm or any past or present member of it or
against any third party.……….”
We also find force in the judgment reported as The Australasia Bank Ltd.
Vs. Messrs A. Ismail Ji & Sons and others (PLD 1952 Lah 314) holding:
“……….It has been consistently held that subsection (2) of
section 69 of the Partnership Act, is mandatory and makes a
suit instituted by an unregistered firm entirely invalid and
that subsequent registration of the firm is of no
avail……….Courts are not makers but only interpreters of
law and cannot water down the effect of a provision of a
statute, because the interpretation based on well established
principles is likely to work hardship in some cases falling
within the plain meaning of that provision……….The
language of subsection (2) of section 69 leaves no room for
doubt that if a suit falling within subsection (2) of section 69
of the Partnership Act is instituted by a firm which is not
registered at the time of the institution of the suit, the plaint
Civil Appeal No.363-L/2015
-: 9 :-
must be rejected and the subsequent registration of the firm
cannot validate the proceedings which were invalid in their
inception”.
To the same effect are some other judgments from foreign
jurisdictions cited by the learned amicus (note:- Section 69 of Indian Partnership Act is
pari materia to our provision) and we feel inclined to quote a portion from Prem
Lata vs. Ishar Das Chaman Lal (AIR 1995 SC 714) which reads as:
“……………Sub-section (3)(a) carves out three exceptions
to sub-sections (1) and (2) of section 69 and also to the
main part of sub-section (3) of section 69, namely, (1) the
enforcement of any right to sue for the dissolution of firm;
(2) for accounts of the dissolved firm; and (3) any right or
power to realise the property of the dissolved firm. Having
excluded from the embargo created by the main part of
sub-section (3) or sub-section (1) and (2) of S.69, the right
to sue would not again to be construed to engulf the
exceptions carved out by sub-section (3) or sub-section (4)
of S.69 of the Act. Any construction otherwise would render
the exceptions, legislature advisedly has carved out in sub-
sections (3) and (4) of S.69, otiose. The object appears to
be that the partnership having been dissolved or has come
to a terminus, the rights of the parties are to be worked out
in terms of the contract of the partnership entered by and
between the partners and the rights engrafted therein. The
exceptions carved out by sub-section (3) are to enforce
those rights including the rights to dissolution of the
partnership despite the fact that the partnership firm was
an unregistered one……….”
7.
Be that as it may, having laid down the law that section 69 ibid
is mandatory and penal in nature, the bar to the suit(s) falling within the
ambit thereof is absolute and unequivocal and that the three (3) exceptions
are prescribed to such absolute rule (bar); we may mention that these
Civil Appeal No.363-L/2015
-: 10 :-
exceptions, are akin to a proviso to a provision, thus per the law meant for
the purposes of interpretation thereof the exceptions should be strictly
construed and applied. However, before examining whether the statement
of plaint in the present case is hit by the said bar (section 69), or qualifies the
test of exceptions, it must be prescribed that the partners of a firm,
whether registered or not, stand in a fiduciary relationship to each other
and Section 9 of the Act imposes a statutory duty upon them “to render true
accounts”. Section 12(d) of the Act provides “every partner has a right to have
access and to inspect and copy any of the books of the firm”. In terms of section 18 of
the Act a partner is an agent of the firm. Further, in terms of section 46 of
the Act, on dissolution of a firm every partner is entitled to have the firm’s
property applied towards payment of debts and to have the surplus
distributed. These noted provisions are sufficient to establish the rights
which a partner(s) possesses and the duties which the other owes (vice versa)
especially for seeking and rendering the accounts of the firm. It may also be
mentioned that regardless of the above the relationship between partners is
fiduciary in nature making them liable to provide accounts to each other, in
the same manner as a bank is obliged to render true and faithful accounts
to its customer for the amounts deposited by the latter with the bank, or for
the financial facilities availed by the borrower (customer) and the amounts
which are repaid by him for the discharge of his obligation towards the
bank for the repayment of the debt/financial facility and/or seeking
justification(s) for any questionable, unjustified or unauthorized claim or
entry made/reflected in the statement of accounts and/or accounts/ledger
books maintained by the bank/financial institution.
8.
A suit for accounts shall thus be competent by the partner(s)
against the other, however with the clear limitation and qualifier that the
firm should have already been dissolved and if not so, be first sought to be
dissolved, because an exclusive and simple suit for the rendition of
Civil Appeal No.363-L/2015
-: 11 :-
accounts while the partnership/firm is in existence shall not be competent
in view of the absolute bar contained in section 69 ibid. As shall be
explained in the succeeding part of this opinion, such suit (rendition of accounts
simpliciter) on the principle of strict interpretation and application of the
exceptions shall not fall within the stringent connotation of any one of the
three exceptions mentioned above.
9.
Be that as it may, before proceeding to examine if the instant
case on the basis of its own facts falls within the exceptions, it seems
relevant to mention here, that there are basically three means (mediums) as to
how a firm (even unregistered) stands dissolved, first if it was constituted and
meant for a specific purpose which is accordingly achieved/accomplished
and that was so mentioned in the partnership instrument, or the purpose
is frustrated, secondly if it was for a fixed period of time upon the expiry of
such period and lastly if not covered by the above two aspects and
eventualities it was a “partnership at will” (see Section 7 of the Act) and was so
dissolved.
10.
Attending now to the aspect as to whether the present case
qualifies the strict test of the exceptions laid down above, we have
examined the pith and substance of the appellant’s suit (whether it falls within
the three exceptions highlighted above) and for this purpose, at the cost of repetition,
are resorting to the exceptions contemplated by sub-section (3)(a) of Section
69 of the Act one by one. The interpretation of the first exception, “the
enforcement of any right to sue for the dissolution of a firm”, seems quite simple in
that where the firm has not been dissolved prior to the institution of the
suit as per any of the three noted modes, the partner(s) may sue for the
dissolution of the firm simpliciter and may not ask for any other relief such
as the rendition of accounts, but it does not mean that the relief of
rendition etc. as ancillary, incidental or consequential relief flowing on
account of dissolution cannot be sought for. Therefore a composite suit in
Civil Appeal No.363-L/2015
-: 12 :-
this behalf can always be filed. But where the accounts are being sought for
an existing firm which is not yet dissolved the suit shall be barred because
of the clear expression of the statute i.e. “for accounts of a dissolved firm” which
is preceded by the word OR meaning that the words “dissolved firm” can
neither be held to be superfluous, redundant nor can be read down or
watered down or ignored or expunged to stultify the effect thereof; rather
the expression (dissolved firm) has to be given its due meaning, which
obviously is that the firm for which the accounts are being sought must be
one which is “dissolved”. Thus, the condition precedent for seeking the
accounts of the firm is the dissolution of the firm itself prior to the
institution of the suit. If however the firm was not dissolved, in such an
eventuality a composite suit can be filed by any of the partner(s) to seek the
dissolution of the firm and at the same time ask for the rendition of
accounts. As regards the third exception seeking enforcement of “any right or
power to release the property of a dissolved firm”, again in view of the clear
language of the exemption the condition is the same i.e. the “dissolved
firm”, postulating that the firm should have been dissolved as a
prerequisite for the enforcement of the right of realizing the property etc. or
a composite suit should be filed. It may be pertinent to state here that in
case of a dispute between the parties as to whether a firm has been
dissolved or not, where the dissolution is not being sought by the plaintiff
rather the other reliefs falling within the exceptions are sought, the court
shall primarily consider and determine this aspect of the matter (i.e. the
dissolution of the firm) and depending upon the positive outcome in favour of the
plaintiff shall consider and grant the second (or ancillary) relief(s) of rendition
of accounts, or realization of property etc. as the case may be. It may be
noted that in order to cross the bar of section 69 when it is set out as a
defence by the other side the plaintiff can always seek amendment of the
plaint and ask for dissolution at the appropriate stage of the proceeding;
Civil Appeal No.363-L/2015
-: 13 :-
but this has not been so done in the present case. It may be candidly
specified that this second relief(s) in all the cases falling within exception is
subservient and is circumscribed by the dissolution of the firm in the first
instance and is not an independent and separate relief(s) by itself. In case
the firm is not dissolved, such relief(s) being hermetically insulated thereto
cannot be granted and the plaint is liable to be rejected as the suit shall be
barred by law (section 69 ibid).
11.
In the instant case when we look at the contents of the plaint,
not only from the title of the suit but also from the averments made therein
it is unmistakably clear that the appellant is seeking a declaration to the
effect about the existence of the firm which means the firm is existent; for
the specific enforcement of his rights under the partnership deed and
performance of respondents duties on that basis, as also in relation to the
business of the firm, again with the clear assertion that the firm is intact,
and then for the rendition of accounts and the cancellation of the document
vide which the respondents has created a Waqaf-ul-Aulad of the firm
property(ies) to his son which the appellant claims to be violative of his
rights under the deed and for permanent injunction. All those statements
and the relief(s) are not in consonance with and do not fall strictly within
the exceptions created by law. In this context it shall be quite relevant to
reproduce the prayer clause of the plaint, which reads as below:-
“1.
It be declared that the defendants are bound to act
upon the partnership deed dated 22-02-1986
executed between the plaintiff and the defendant
No.1 in its true letter and spirit.
2.
It be declared that defendant No.2 has got nothing
to do with the suit property and defendant No.1 is
bound to perform his part of the partnership deed
supra and to act upon and perform his obligations
towards the plaintiff. That the defendants be
Civil Appeal No.363-L/2015
-: 14 :-
ordered to pay the due profits to the plaintiff till the
expiry of partnership deed and also to pay the net
price of the construction building according to new
construction this time, 30% of the goodwill of the
school thereon the plot/land according to terms and
conditions of partnership deed dated 22-02-1986.
3.
That alleged document of waqaf Ali-ul-ulad dated
20-01-2004 executed by the defendant No.1 in the
favour of defendant No.2 is liable to be cancelled
qua the rights of the plaintiff and to pay the
requisite profits qua the school by way of rendition
of account. It also be declared that document
waqaf-ul-ulad dated 20-01-2004 executed by the
defendant No.1 in the favour of the defendant No.2
is totally based on malafides, ulterior motives just
to grab the rights of the plaintiff qua the school
concern and to avoid the partnership deed.
4.
That defendants be ordered not to violate and to
infringe the terms and conditions qua the rights of
the plaintiff by any way.
5.
That the defendants be restrained by way of
permanent injunction not to alter, change the
structure and status of the school by any way or to
cause any sought of lien qua the school in
question.”
Obviously, on account of the nature of the suit, the statement(s)
contained therein, and the prayer made or the reliefs claimed in the plaint,
the plaint falls within the purview of the clear bar contemplated by Section
69(1) and (2) and as per the law declared in Usman vs. Haji Omer (PLD
1966 SC 328) and the law being expressed vide this opinion. Such bar
being absolute, unequivocal and categorical, and as the case of the
appellant does not fall within the strict exceptions of the law, explained
above, which we have already held should be construed on the standards
Civil Appeal No.363-L/2015
-: 15 :-
meant and are akin to the rules of interpretation of a proviso attached to a
provision (section); and it is settled law that such exception or proviso should
be strictly construed and applied. Applying this principle to the case in
hand from the clear wording of the exceptions (reproduced above) the case of
the appellant does not fall within those. As regards the submission of the
learned amicus that the rule of severance may be applied and that the
partial rejection of plaint is not permissible, suffice it to say that though the
pleas may be worthy of consideration and resolution in some other case but
in view of the ratio of this opinion the same can be skipped. In light thereof,
we do not find any force in this appeal which is liable to be dismissed. It
may however be observed that we agree with the submission of the learned
counsel for the respondents that the appellant may either file a fresh suit
first seeking dissolution of the firm or wait for the dissolution thereof till
February next year, which in any case shall give him a fresh cause of action
and the bar of section 69 and for that matter the period of limitation shall
obviously not come in his way. Before parting we may express our
appreciation for the valuable and able assistance provided by the learned
amicus. The appeal is dismissed.
JUDGE
JUDGE
JUDGE
Announced in open Court
on 23.12.2015 at Lahore
Approved For Reporting
Waqas Naseer/*
| {
"id": "C.A.363-L_2015.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE IJAZ UL AHSAN
MR. JUSTICE JAMAL KHAN MANDOKHAIL
MRS. JUSTICE AYESHA A. MALIK
CIVIL APPEALS NOS. 364-P,365-P/19, 368-P to 391-P, 393-P to 403-P, 405-P,
407-P/2019 & C.P.590-P/2019 AND CAs.409-P to 412-P/2019 AND CA.Nos. 04-P,
11-P,12-P,17-P,20-P,21-P/2020
(Against the judgments dated 17.06.2019, 26.7.2019, 18.11.2019, 10.2.2020 passed by the
Peshawar High Court, Peshawar in R.F.A.267-P/2018, R.F.A.294-P/2017, R.F.A.167-P/2018,
R.F.A.186-P/2017, R.F.A.18-P/2018, R.F.A.172-P/2018, R.F.A.173-P/2018, R.F.A.175-P/2018,
R.F.A.176-P/2019, R.F.A.177-P/2018, R.F.A.178-P/2018, R.F.A.180-P/2018, R.F.A.20-P/2019,
R.F.A.30-P/2019,
R.F.A.31-P/2019,
R.F.A.96-P/2019,
R.F.A.168-P/2018,
R.F.A.169-P/2018,
R.F.A.170-P/2018, R.F.A.171-P/2018, R.F.A.179-P/2018, R.F.A.174-P/2018, R.F.A.93-P/2019,
R.F.A.94-P/2019,
R.F.A.95-P/2019,
R.F.A.97-P/2019,
R.F.A.180-P/2013,
R.F.A.142-P/2017,
R.F.A.249-P/2017,
R.F.A.49-P/2019,
R.F.A.59-P/2019,
R.F.A.60-P/2019,
R.F.A.61-P/2019,
R.F.A.62-P/2019,
R.F.A.72-P/2019,
R.F.A.50-P/2019,
R.F.A.131-P/2014,
R.F.A.67-P/2014,
R.F.A.72-P/2019, 12(2).P.24-P/2019 in R.F.A.36-P/2018, R.F.A.59-P/2019, R.F.A.71-P/2019,
R.F.A.83-P/2019, R.F.A.63-P/2019, R.F.A.03-P/2018, R.F.A.98-P/2019, R.F.A.03-P/2018, RFA-92-
P/2019, RFA-142-P/2013, RFA-143P/2013).
1. C.A.364-P/2019
Nawabzada Abdul Qadir Khan v. Land Acquisition Collector
Mardan& others
2. C.A.365-P/2019
Mst.
Parwar
Sultana
v.
District
Land
Acquisition
Collector/District Collector Mardan& others
3. C.A.368-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v.
Shams ul Qamar & others
4. C.A.369-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v.
Faqir Khan & others
5. C.A.370-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v. Mst.
Parwar Sultana & others
CIVIL APPEALS NO.364-P, 368-P, 393-P, 405-P, 590-P, 409-P, 412-P OF 2019 A/W 4-P, 11-P, 12-P, 17-P, 20-P, 21-P OF 2020
2
6. C.A.371-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v.
Saifullah Khan & others
7. C.A.372-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v.
Muhammad Yousaf & others
8. C.A.373-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v.
Abdul Ghani & others
9. C.A.374-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v.
Bakht Zamin Shah & others
10.
C.A.375-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v.
Muhammad Maqsood & others
11.
C.A.376-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v.
Ghulam Muhammad & others
12.
C.A.377-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v.
Waqar Ali & others
13.
C.A.378-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v.
Syed Afzal & others
14.
C.A.379-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v.
HazratWali& others
15.
C.A.380-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v.
Nasir Khan & others
16.
C.A.381-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v.
Hazrat Khan & others
CIVIL APPEALS NO.364-P, 368-P, 393-P, 405-P, 590-P, 409-P, 412-P OF 2019 A/W 4-P, 11-P, 12-P, 17-P, 20-P, 21-P OF 2020
3
17.
C.A.382-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v.
Ihsanullah& others
18.
C.A.383-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v.
Aminullah& others
19.
C.A.384-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v.
Zahir Shah & others
20.
C.A.385-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v.
Syed Amjid Ali & others
21.
C.A.386-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v.
Shah Hussain Afridi & others
22.
C.A.387-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v.
Ahmad Ali & others
23.
C.A.388-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v.
Hizbullah& others
24.
C.A.389-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v. Mst.
Nazuk Badan & others
25.
C.A.390-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v.
Muhammad Naeem Khan & others
26.
C.A.391-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v.
Sher Bakhta& others
27.
C.A.393-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v. Mst.
Haleema& others
CIVIL APPEALS NO.364-P, 368-P, 393-P, 405-P, 590-P, 409-P, 412-P OF 2019 A/W 4-P, 11-P, 12-P, 17-P, 20-P, 21-P OF 2020
4
28.
C.A.394-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v.
Faqir Khan & others
29.
C.A.395-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v. Mst.
Parwar Sultana & others
30.
C.A.396-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v.
Syed Masood ur Rehman & others
31.
C.A.397-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v. Ali
Akbar & others
32.
C.A.398-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v.
Naeem Shah & others
33.
C.A.399-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v.
Sher Zada & others
34.
C.A.400-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v. Wali
Khan & others
35.
C.A.401-P/2019
Vice Chancellor Abdul Wali Khan University Mardan v.
Hashim Khan & others
36.
C.A.402-P/2019
Vice Chancellor Abdul Wali KhanUniversity, Mardan v.
Ayub Khan & others
37.
C.A.403-P/2019
Vice Chancellor Abdul Wali KhanUniversity, Mardan v.
Ayub Khan & others
38.
C.A.405-P/2019
Abdul Wali KhanUniversity, Mardan through Chairman v.
Mst. Qadarmana& others
CIVIL APPEALS NO.364-P, 368-P, 393-P, 405-P, 590-P, 409-P, 412-P OF 2019 A/W 4-P, 11-P, 12-P, 17-P, 20-P, 21-P OF 2020
5
39.
C.A.407-P/2019
Land Acquisition Collector/District Collector, Mardan (now)
Deputy Commissioner, Mardan& others v. Hashim Khan &
others
40.
C.P.590-P/2019
Vice Chancellor Abdul Wali Khan University Mardan&
another v. Mst. Haleema& others
41.
C.A.409-P/2019
Provincial Govt through DOR, mardan (Now) Deputy
Commissioner Mardan& others v. Ali Akbar & others
42.
C.A.410-P/2019
Secretary to Govt of KP, Higher Education Archives &
Libraries Peshawar& others v. Abdul Sattar & another
43.
C.A.411-P/2019
Govt. of K.P. through CosllectorMardan (Now) Deputy
Commissioner Mardan& others v. Redi Gul & others
44.
C.A.412-P/2019
Land
Acquisition
Collector,
Mardan
(now)
Deputy
Commissioner, Mardan& others v. Nawabzada Abdul Qadar
Khan & others
45.
C.A.4-P/2020
Mst.
Parwar
Sultana
v.
District
Land
Acquisition
Collector/District Collector, Mardan and others
46.
C.A.11-P/2020
Vice Chancellor Abdul Wali KhanUniversity, Mardan v.
Arshaf Khan and others
47.
C.A.12-P/2020
Vice Chancellor Abdul Wali KhanUniversity, Mardan v. Mst.
Parwar Sultana and others
48.
C.A.17-P/2020
Vice Chancellor Abdul Wali KhanUniversity, Mardan v. Mst.
Muhammadia and others
49.
C.A.20-P/2020
Vice Chancellor Abdul Wali khan University, Mardan v.
Mst. Sher Bakhta, Widow and others
CIVIL APPEALS NO.364-P, 368-P, 393-P, 405-P, 590-P, 409-P, 412-P OF 2019 A/W 4-P, 11-P, 12-P, 17-P, 20-P, 21-P OF 2020
6
50.
C.A.21-P/2020
Vice Chancellor Abdul Wali Khan University, Mardan v.
Hasham Khan and others
…Appellant(s)/Petitioner(s)/Respondent(s)
For the Appellant(s)/
Petitioner(s):
Syed Haziq Ali Shah, ASC
Mr. Tariq Aziz, AOR
(In C.A.364-P/19 AND Res: in CA.412-P/19)
Mr. Muhammad Ajmal Khan, AOR
(In C.A.365-P/19, CA.04-P/20
AND Res: in CA.12-P/20)
(Via V/L, Peshawar)
Mr. Khalid Khan, AOR/ASC
(In C.As.368-P to 391-P, 393-P to 403-P, 405-P/19,
CAs.11-P, 12-P/20 & CP.590-P/19)
(Via V/L, Peshawar)
Mr. Zahid Yousaf Qureshi, Addl. AG, KPK
Malik Akhtar Hussain, Addl. AG, KPK
Qazi Ayaz, Litigation Officer
(In C.As.407–P,409-P to 412-P/19)
Mr. Ghulam Mohyuddin Malik, ASC
(In C.As.17-P, 20-P,21-P/2020) - Via V/L, Peshawar
For the Respondent(s):
Mr. Abdul Ahad Khan, ASC
(In C.As.371-P, 372-P/19, 375-P, 386-P, 390-P,
398-P, 411-P/2019 & CA.17-P/2020) –
(Via V/L, Peshawar)
Other Respondent(s):
Nemo
Date of Hearing:
05.09.2022.
JUDGMENT
IJAZ UL AHSAN, J-. Through instant Appeals, the
Appellants have challenged a judgment of the Peshawar High
Court, Peshawar dated 17.06.2019 (hereinafter referred to as
the “Impugned Judgment”) whereby Regular First Appeals
No.180-P/2013, 67 & 131-P/2014 and 142 & 249-P/2017
were allowed and the judgements and decrees of the
Additional District Judge-VIII/Judge Referee Court Mardan
CIVIL APPEALS NO.364-P, 368-P, 393-P, 405-P, 590-P, 409-P, 412-P OF 2019 A/W 4-P, 11-P, 12-P, 17-P, 20-P, 21-P OF 2020
7
(the “Referee Court”) were modified to the extent that the
quantum of compensation for all the land acquired under
notification dated 16.09.2008 was set at Rs.125,000/- per
marla.
2.
The necessary facts giving rise to this lis are that
the Government of Khyber Pukhtunkhwa (the “Government
of KP”) through the District Officer (Revenue), Mardan issued
a notification under Section 4 of the Land Acquisition Act,
1894 (the “LAA 1894”) on 16.09.2008. Through the said
notification, the Government of KP preliminarily notified the
acquisition of all land situated in Mauza Palatoo, Tehsil and
District Mardan for the establishment of Abdul Wali Khan
University,
Mardan
(the
“Contesting
University”).
A
corrigendum with regard to notification dated 16.09.2008 was
issued
on
25.10.2008
when
the
NWFP
Agricultural
University, Peshawar intimated their desire to establish a
sub-campus in Mardan to the Government of KP. To that
extent, the notification dated 16.09.2008 was modified to
include both the establishment of Abdul Wali Khan University
as well as the establishment of a sub-campus of the NWFP
Agricultural University in Mardan. Afterwards, the District
Officer (Revenue) Mardan, vide award under Section 11 of the
LAA 1894 dated 20.07.2010, set the price for compensation at
the rate of Rs.2800/- per marla along with 15% compulsory
acquisition charges. Aggrieved of the said valuation of their
land, several landowners filed references under Sections 18,
30 & 31 of the LAA 1894 before the Referee Court. The
CIVIL APPEALS NO.364-P, 368-P, 393-P, 405-P, 590-P, 409-P, 412-P OF 2019 A/W 4-P, 11-P, 12-P, 17-P, 20-P, 21-P OF 2020
8
Contesting University and other acquiring departments
objected to the references and after pro and contra evidence
was led, the Referee Court set the quantum of compensation
at Rs.20,000/- per marla. The said valuation was challenged
by both the land owners as well the Contesting University
before the High Court which, vide judgement dated
01.12.2016, remanded all the reference petitions to the
Referee Court for decision afresh. After the matter was
remanded to the Referee Court, the Referee Court appointed
local commissioners in each reference petition to conduct
spot examinations and accordingly submit their reports. After
the local commissioners submitted their respective reports,
the Referee Court set the quantum of compensation at the
rate of 45,000/-, 75,000/- & Rs.125,000/- per marla as
compensation in the respective reference petitions along with
15-percent compulsory acquisition charges and 6-percent
interest from the date of acquiring of possession till final
payment. The judgements and decrees of the Referee Court in
the various reference petitions were assailed before the High
Court. The High Court, vide the impugned judgement, allowed
the appeals of the landowners and dismissed the appeals filed
by the Contesting University as well as the Government of KP.
In allowing the appeals of the landowners, the High Court set
the quantum of compensation at the rate of Rs.125,000/-
across the board for all land acquired under notification dated
16.09.2008. The impugned judgment is now being assailed by
the
landowners,
the
Contesting
University
and
the
Government of KP before this Court.
CIVIL APPEALS NO.364-P, 368-P, 393-P, 405-P, 590-P, 409-P, 412-P OF 2019 A/W 4-P, 11-P, 12-P, 17-P, 20-P, 21-P OF 2020
9
3.
At the very outset, the Learned ASCs for the land
owners as well as the Agricultural University, Mardan and
Bacha Khan Medical University, Mardan in their various
Appeals before this Court have, on instructions, submitted
hat the amount of compensation set by the High Court is
reasonable and that they no longer have any grievances
insofar as their relevant appeals are concerned.
4.
The Learned counsel for the Contesting University
on the other hand has argued that the impugned judgement
is liable to be set aside on the ground that the acquired land
at the time when it was acquired by the Government of KP for
the Contesting University was barren and had no potentiality
whatsoever. It was only after the land had been acquired for
the University that the value of the land increased. He prays
that the judgements of both the High Court as well as the
Referee Court may be set aside, the reference petitions of the
Respondents be dismissed and that the original award
compensation of Rs.2,800/- per marla be restored.
5.
The Additional Advocate Generals for KP have
contended that the only grievance of the Government of KP
insofar as the present appeals are concerned is the imposition
of six-percent interest from the date of acquisition till the date
of final payment. Further contend that in light of a judgement
passed by the Federal Shariat Court declaring usury/riba
forbidden and repugnant to the injunctions of Islam, interest
was not payable. He therefore submits that the Referee Court
CIVIL APPEALS NO.364-P, 368-P, 393-P, 405-P, 590-P, 409-P, 412-P OF 2019 A/W 4-P, 11-P, 12-P, 17-P, 20-P, 21-P OF 2020
10
had no power to impose six-percent interest on the amount of
compensation payable to the landowners when the same had
been declared against the injunctions of Islam. They pray that
the impugned judgement may be modified to the extent of
removal of six-percent interest.
6.
We have heard the learned counsels for the parties
at length and gone through the case record.
7.
Before we touch the merits of the arguments
submitted in the instant Appeals, it is prudent to first go over
all the relevant provisions of the LAA 1894 that are necessary
for the purposes of these instant Appeals. Section 23 of the
LAA 1894(as amended in the KP in 2018) lays down a criteria
for how a Referee Court is to determine compensation. It is
reproduced below for ease of reference:-
“23
MATTERS
TO
BE
CONSIDERED
IN
DETERMINING COMPENSATION.
(1) In determining the amount of compensation to be
awarded for land acquired under this Act the Court
shall take into consider consideration:
firstly, the market-value of the land at the date of
taking possession of the land.
EXPLANATION - For the purpose of determining the
market value, the Court shall take into account
transfer of land similarly situated and in similar use.
The potential-value of the land to be acquired if put to
a different use shall only be taken into consideration if
it is proved that land similarly situated and previously
CIVIL APPEALS NO.364-P, 368-P, 393-P, 405-P, 590-P, 409-P, 412-P OF 2019 A/W 4-P, 11-P, 12-P, 17-P, 20-P, 21-P OF 2020
11
in similar use has, before the date of the notification
under subsection (1) of section 4, been transferred
with a view to being put to the use relied upon as
affecting the potential value of the land to be acquired:
Provided that –
(i) if the market-value has been increased
inconsequence of the land being put to a use
which is unlawful or contrary to public policy that
use shall be disregarded and the market-value
shall be deemed to be the market-value of the
land if it were put to ordinary use; and
(ii) if the market-value of any building has been
increased in consequence of the building being so
overcrowded as to be dangerous to the health of
the
inmates
such
overcrowding
shall
be
disregarded and the market-value shall be
deemed to be the market-value of the building if
occupied by such number of persons only as can
be accommodated in it without risk of danger to
health from overcrowding.
secondly, the damage sustained by the person
interested by reason of the taking of any standing
crops or trees which may be on the land at the time of
the Collector's taking possession thereof;
thirdly, the damage (if any) sustained by the person
interested, at the time of the Collector's taking
possession of the land, by reason of severing such
land from his other land:
fourthly, the damage (if any) sustained by the person
interested at the time of the Collector's taking
possession of the land, by reason of the acquisition
CIVIL APPEALS NO.364-P, 368-P, 393-P, 405-P, 590-P, 409-P, 412-P OF 2019 A/W 4-P, 11-P, 12-P, 17-P, 20-P, 21-P OF 2020
12
injuriously affecting his other property, movable or
immovable in any other manner, or his earnings;
fifthly, if, in consequence of the acquisition of the
land by the Collector, the person interested is
compelled to change his residence or place of
business, the reasonable expenses (if any) incidental
to such change; and
sixthly, the damage (if any) bona fide resulting from
diminution of the profits of the land between the time
of the publication of the declaration under section 6
and the time of the Collector's taking possession of the
land.
(2) In addition to the market-value of the land as
above provided, the Court shall award a sum of
fifteen
per
centum
on
such
market-value,
in
consideration of the compulsory nature of the
acquisition, if the acquisition has been made for a
public purpose and a sum of twenty-five per centum
on such market-value if the acquisition has been made
for a Company.”
A bare perusal of Section 23 shows that according to the LAA
1894, there are six matters that need to be taken into
consideration
by
a
Referee
Court
in
determining
compensation for land acquired under the LAA 1894.While
the market value of the land acquired at the time of
possession may be the first matter a Court must take into
consideration, it is not the only matter. The Court is bound to
consider when a determination has to be made under Section
23 of the LAA 1894. Instead, the other five considerations,
from their very text, imply that whenever a Court is to
CIVIL APPEALS NO.364-P, 368-P, 393-P, 405-P, 590-P, 409-P, 412-P OF 2019 A/W 4-P, 11-P, 12-P, 17-P, 20-P, 21-P OF 2020
13
consider the quantum of compensation, it must be duly
aware and cognisant of the loss being caused to the
landowners due to the Federal or Provincial Government’s
exercise of eminent domain under the LAA 1894.In essence,
landowners are deprived of their constitutionally-guaranteed
proprietary rights under Article 24 of the Constitution of
Pakistan, 1973 whenever a government, be it Federal or
Provincial, exercises eminent domain under the LAA 1894. It
is therefore only fair and just that the persons who are
affected by the exercise of eminent domain are at the centre of
consideration when it comes to determining the quantum of
compensation.
6.
Coming to the merits of the arguments raised by
the Contesting University, perusal of the record reveals that
the Contesting University had been a party before both the
Referee Court as well as the High Court. The Contesting
University has been heard by all the Courts below. Both the
courts below have held that the compensation award for
Rs.2,800/- per marla was on the basis of a one-year average
(Aust Yaksala) of the acquired land. The argument of the
Contesting University that the initial rate of Rs.2,800/- was
the correct valuation is unsustainable for the reason that
basing compensation on a one-year average of the land
acquired would go against the criteria laid down in Section 23
of the LAA 1894. The rate of Rs.2,800/-per marla in the
present case was based solely on the one-year average of the
acquired land. As noted above, the intention of the legislature
CIVIL APPEALS NO.364-P, 368-P, 393-P, 405-P, 590-P, 409-P, 412-P OF 2019 A/W 4-P, 11-P, 12-P, 17-P, 20-P, 21-P OF 2020
14
behind Section 23 is one where a Court, when determining
compensation under the said Section, needs to be considerate
and sympathetic to those who have been subjected to
eminent domain by the government. Section 23 allows the
Court to bring landowners, who have been subjected to
eminent domain, back to their positions before the eminent
domain was exercised. To base compensation on a one-year
average of the acquired land would defeat the intent of the
legislature behind Section 23.Even otherwise, in a judgement
passed by this Court in Pakistan Brumah Shell Ltd. vs.
Province of NWFP (1993 SCMR 1700), this Court held that:-
“6. We are not persuaded to strike off the award on
the rectitude of these submissions. Section 23 makes
mention of various matters to be considered in
determining the compensation. One of such factors
enumerated therein is that the date relevant for
determination of market value is the date of the
notification under section 4. Not unoften the market
value has been described as what a willing purchaser
would pay to the willing seller. It may be observed
that in assessing the market value of the land, its
location, potentiality and the price evidenced by the
transaction of similar land at the time of notification
are the factors to be kept in view. One year's average
of the sales taking place before the publication of the
notification under section 4 of similar land is merely
one of the modes for ascertaining the market value
and is not an absolute yardstick for assessment. From
the perusal of the record we find that there are two
"Makhloot Ausat Punjsala" on the land acquisition file;
one for village Bhabi for the period from 21-7-1985 to
21-7-1986 comprising 5 transactions yielding an
CIVIL APPEALS NO.364-P, 368-P, 393-P, 405-P, 590-P, 409-P, 412-P OF 2019 A/W 4-P, 11-P, 12-P, 17-P, 20-P, 21-P OF 2020
15
average sale price of Rs. 9,000 per Kanal only; and
the other is for village Taru covering the period from
9-7-1984 to 9-7-1985, but only one transaction is
mentioned in it; of which the sale price comes to Rs.
24,280 per Kanal. It is significant to point out that
there is nothing on the land acquisition file to give any
indication regarding the location, potentiality and
other characteristics of the different pieces of land
included in these "Aust Yaksala". Neither their
distance from the land in question is ascertainable nor
it is known as to whether or not these are possessed
of similar advantages and capable of prospective use
as
the
land
acquired
by
the
appellant.
The
"AksShajra" of the land of the appellant amply
demonstrates that it is a well shaped, one rectangular
compact block having a fairly wide frontage and on
one side, it abuts on the railway line. The Land
Acquisition Collector's observation in the award that
this land is of highest value and situate near the
National Highway, for the purposes of assessment of
its market value is of paramount importance. We have
glanced through the MEO's letter dated 1-11-1986
referred to in the award under which an area
measuring 6.065 acres situate in village Taru-Bhabi
was sold to Pakistan State Oil Company for a
consideration of Rs. 48,00,000. It is pertinent to point
out that all the Oil Companies were directed by the
Provincial Government to shift their storage depots
from Peshawar City and it was in this connection that
the Pakistan State Oil Company purchased a piece
land in village Taru-Bhabi. It seems to us that the
locality being lucrative the appellant also chose to
acquire land therein. In these circumstances, the
reliance of the Land Acquisition Collector on the said
sale transaction for determination of the market value
of the land is not open to exception.”
(Underlining is ours)
CIVIL APPEALS NO.364-P, 368-P, 393-P, 405-P, 590-P, 409-P, 412-P OF 2019 A/W 4-P, 11-P, 12-P, 17-P, 20-P, 21-P OF 2020
16
The Learned Counsel for the Contesting University could not
point out any ground which could persuade us come to the
conclusion that the High Court had committed an error in law
or otherwise when it determined the rate of compensation at
the rate of Rs.125,000/- per marla. No mis-reading or non-
reading of evidence could also be pointed out by the Learned
Counsel for the Contesting University.
7.
Coming to the points raised by the Additional
Advocate Generals for KP, we note that Section 34 of the LAA
1894 has never been repealed by the KP Provincial Assembly,
and therefore have no qualms in arriving at the conclusion
that the imposition of six-percent interest imposed by both
the Courts had been done in accordance with law. To that
extent, the Additional Advocate Generals, KP have not been
able to point out any illegality in the imposition of the six-
percent interest by both the Courts below. Section 34 of the
LAA 1894 still holds the field and continues to do so. It is,
however, important to clarify that unlike riba/interest that
accrues out of a financial obligation between the parties, the
word “interest” in Section 34 of the LAA 1894 is not interest
stricto sensu. The interest awarded to landowners under
Section 34 is compensatory in nature that allows the Court to
compensate the landowners for the financial loss landowners
would suffer from the date of acquisition till payment of
compensation by the acquiring authority. Unlike a financial
transaction, where parties are often assumed to be equal in
CIVIL APPEALS NO.364-P, 368-P, 393-P, 405-P, 590-P, 409-P, 412-P OF 2019 A/W 4-P, 11-P, 12-P, 17-P, 20-P, 21-P OF 2020
17
bargaining power and are deemed to be consenting to a
transaction, an exercise of eminent domain cannot in any
sense be construed as either a consenting transaction
between the parties involved (i.e. the State and the
landowners) nor can it be assumed by any stretch of
imagination that the state and the landowners are equal in
terms of bargaining power. Eminent domain is, after all, a
unilateral power of the government and no consent from the
affected landowners is required under the law before the state
can exercise eminent domain under the LAA 1894. Even
otherwise, as held by this Court in the case of Sheikh
Muhammad Ilyas Ahmed vs. Pakistan thr. Secretary, Ministry
of Defence (PLD 2016 SC 64), the benefit of Section 34 is
statutory in nature and such benefit cannot be withheld from
the landowners on the ground that interest has been declared
against the injunctions of Islam. Whilst riba/usury may be
predatory in nature, the interest under Section 34 of the LAA
1894 is beneficial in nature since it allows landowners to be
compensated after the Federal or Provincial Government’s
unilateral exercise of eminent domain and to cover the
financial loss that the landowners would invariably suffer on
account of loss of use of their land/property till the time they
recover compensation for the same.
8.
In light of what has been discussed above, we find
that the judgement of the High Court is well-reasoned, takes
note of all material aspects of the case and has elaborately
noted all the reasons why it enhanced the quantum of
CIVIL APPEALS NO.364-P, 368-P, 393-P, 405-P, 590-P, 409-P, 412-P OF 2019 A/W 4-P, 11-P, 12-P, 17-P, 20-P, 21-P OF 2020
18
compensation at the rate of Rs.125,000/- per marla for all the
land acquired in Mauza Palatoo, Tehsil and District Mardan.
No ground has been raised which could lead us to a
conclusion different than the one taken by the High Court. No
perversity or illegality could also be pointed out in the
impugned judgment when the High Court set the rate of
compensation at the rate of Rs.125000/- per marla for all the
land acquired in Mauza Palatoo, Tehsil and District Mardan
by virtue of notification dated 16.09.2008. The impugned
judgement passed by the Peshawar High Court, Peshawar is
accordingly upheld. All these matters are accordingly
dismissed.
Judge
Judge
Judge
ISLAMABAD, THE
5th of September, 2022
Khalil Sahibzada 1926, LC*/-
NOT APPROVED FOR REPORTING*
| {
"id": "C.A.364-P_2019.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
Present:
Mr. Justice Jawwad S. Khawaja
Mr. Justice Amir Hani Muslim
Civil Appeals Nos. 368 to 370 of 2011.
(Against the judgment dated 28.10.2010 passed by the Lahore High
Court, Lahore in WPs Nos. 10398/08, 17812/09 & 20670/2010
respectively).
Pakistan Sports Board and another.
…
Appellants (In all cases)
VERSUS
Pakistan Volleyball Federation etc.
…
Respondents (CA 368/11)
Athletics Federation of Pakistan & another.
…
Respondents (CA 369/11)
Abdul Rashid Khan etc.
…
Respondents (CA 370/11)
For the appellant (s):
Mr. M. Munir Piracha, ASC in all cases.
For the respondent (s):
Mr. M. Akram Sheikh, Sr. ASC (for respdts.1-4 in CA 368/11)
For the respondent (s):
Mr. Ali Raza, ASC
(for respdts.5 in CA 368/11, No. 1-2 in CA 369/11 & for No.2 in CA 370/11)
For the respondent (s):
N.R. (for respdts.3-4 in CA 370/11)
For the respondent (s):
Ex-parte (for respdts.1 & 5 in CA 370/11)
Date of hearing:
8.5.2012
Judgment
Jawwad S. Khawaja, J.- The appellants namely, Pakistan Sports Board
(appellant No.1) and the Federation through the Secretary, Ministry of Culture, Sports
and Youth Affairs (appellant No.2) impugn the judgment of the High Court dated
28.10.2010 whereby writ petition No. 20670/10 filed by respondents Nos.1 to 4, was
allowed.
2.
The said respondents Nos. 1 to 4 are respectively the Pakistan Volleyball
Federation, the Pakistan Handball Federation, the Pakistan Cycling Federation and the
Pakistan Gymnastic Federation. These are sports bodies created by private individuals
for the promotion of the sports which are part of their respective names. In the High
Court the respondents had agitated a grievance against certain portions of the Revised
National Sports Policy which had been notified by the Federal Government vide SRO
No. 1249 (1)/2005, dated 5.12.2005 (the Sports Policy). The Sports Policy was made
pursuant to a decision taken by the Federal Cabinet. Paragraphs 5 and 6 of the writ
petition filed by the respondents set out with clarity the grievance of the respondents.
To understand the same, paragraphs Nos.5 and 6 ibid are reproduced as under:-
CAs 368 to 370 of 2011
2
“5.
That the subject matter of controversy in this case is the following provision made in
para 10 (5) of this Policy, the relevant portion of which reads as follows:-
‘National Federations should be re-structured on the following lines within one year
upto December, 2006 namely,
10 (5) Tenure restriction of Office Bearers.
(a) One tenure of any member of Federation or Association will be of four years
only.
(b) President, Honorary Secretary and the Treasurer will be allowed a
maximum of two tenures, in any office of the Federation or Association after
which they will become ineligible for holding the same posts of that particular
Federation or Association. However, they will be allowed to context for next
higher Post/Association at any time.
(c) Tenure restrictions will not be applicable on the office bearers of the
Federations holding posts of President or Secretary of World/Asian Federation”.
. . . . . .
6.
That para 11 of this policy deals with the office bearers of the National and Federal
Olympic Committee. This para also contains similar provisions in places (b) and (c) of
para 11, which reads as follows:-
(b) One tenure of any office bearer of these Committees will be of four years.
(c) President, Secretary and Treasurer will be allowed two tenures only. They
will become ineligible for any office after two tenures and must vacate their
position for new incumbents. However, an individual will be allowed to contest
for next higher Association at many times”.
3.
It is clear from the above that the grievance of the respondents relates to
restrictions which were sought to be imposed on the office bearers of various sports
bodies affiliated with the PSB. The respondents Nos. 1 to 4 are sports bodies established
on All-Pakistan basis, which claim affiliation with the Pakistan Sports Board. At this
point, it is relevant to note that the Pakistan Sports Board (PSB) was constituted in
exercise of powers conferred by Sections 3 and 4 of the Sports (Development and
Control) Ordinance, 1962 (the Ordinance) vide Notification No. S.R.O.222(1)/81, dated
16.3.1981. Rules were also framed by virtue of the said notification for determining inter
alia, the powers and functions of PSB. These rules are called the PSB Rules, 1981. The
respondents Nos.1 to 4 were never compelled by PSB to become affiliated with PSB, but
they chose to do so on their own.
4.
Learned counsel for the appellants contended that the Ordinance empowered
the Federal Government to establish the PSB and to make the PSB Rules. This has been
done, as noted above. The PSB Rules as originally framed have been amended to allow
the PSB inter alia, “to approve, amend and repeal constitution of National Sports Federations
CAs 368 to 370 of 2011
3
and Associations”. According to learned counsel, the Sports Policy, including the
provisions thereof reproduced above could be implemented by the PSB through
exercise of powers vested in it under the PSB Rules as amended. The High Court, by
means of the impugned judgment proceeded on the basis of considerations which, we
say with respect, were neither germane nor relevant to the controversy raised by the
respondents in their writ petition. It was observed by the High Court that the above
referred provisions of the Sports Policy “might be the result of Chief Executive’s Order No.
19 of 2002 whereby the qualification to hold certain public offices was settled” and it was
stipulated that “a person who has, at any time, held the office of the Prime Minister or that of a
Chief Minister of a Province or a combination of such offices for two terms, . . . shall not be
qualified to hold the office of the Prime Minister or that of a Chief Minister”. It is evident that
these remarks are based on mere conjecture as there is no lawful basis for connecting the
Sports Policy with the Chief Executive’s Order or for observing that the Order ‘might’
have been the cause of the Sports Policy.
5.
The High Court then noted that the aforesaid provisions which were part of the
Constitution had been removed therefrom through the 18th amendment. The inclusion
or subsequent exclusion of these provisions from the Constitution have no relevance
with the Sports Policy which was framed pursuant to a decision of the Federal Cabinet.
The High Court also observed (without adverting to the Ordinance or the
Constitutionally recognized functions of the Cabinet) that the provisions of the Sports
Policy “are not recognized by any law of the land”. The learned Judge-in-Chambers in the
High Court then remarked that the only power vested in the Federal Government was
to constitute a Board and to specify its powers and functions under section 4 of the
Ordinance. This is not correct as a statement of law because policy making constitutes
an important element in the exercise of the executive authority of the government. The
restrictive provisions of the Sports Policy which were impugned by the respondents
were within the domain and competence of the Federal Government. It is an important
function of the Government to frame policies. It is important to note as rightly
emphasized by learned counsel representing the appellants that the PSB does not and
cannot compel the respondents or any other national sports body to seek affiliation with
CAs 368 to 370 of 2011
4
the PSB. If, however, a sports body does seek and obtain such affiliation, it would be
obliged to abide by the rules of the PSB including rule 4 which authorizes the Board to
require a sports body affiliated with it to incorporate the terms of the Sports Policy in its
constitution.
6.
In the foregoing circumstances, Article 17 of the Constitution has no application
whatsoever. The right of the respondents or their members to join an association is
nowhere under challenge and nor has it been infringed in any manner. The members of
the respondents are free to enter into any association or union, and to adopt any
constitution of their own choosing including one which allows for life tenures for office
bearers. If, however, they seek and become affiliated with the PSB, it follows naturally
that they will have to subordinate their constitution to the directives which may be
issued by the PSB under the PSB Rules. The learned Judge-in-Chambers in the High
Court, therefore, fell in error because he proceeded on the premise as if the PSB was
interfering in the freedom of association guaranteed to the members of the respondents
under Article 17 ibid. This premise quite clearly is not tenable because the PSB cannot
regulate or control an association which does not seek affiliation with it. We are,
therefore not in any doubt that the members of the respondent associations would have
the right to form their associations without interference from the PSB but this can only
happen if the respondents donot voluntarily, and on their own initiative, seek PSB
affiliation. But if they want to be affiliated with the PSB and to reap the benefits which
accrue with such affiliation, they cannot claim any exemptions from following the
directives which may be given by the PSB in accordance with the PSB Rules.
7.
Learned counsel for the respondents Nos. 1 to 4 premised his argument on a
challenge to the vires and constitutionality of the Ordinance. This, however, is not a
ground either taken or urged in the writ petition before the High Court. In fact, as noted
above, the controversy is restricted to para 10 (5) and para 11 of the Sports Policy which
have been reproduced above. In the entire writ petition, the validity of the Ordinance
has been acknowledged. Furthermore, we fail to see how the respondents can challenge
the Ordinance while at the same time claiming affiliation with the PSB which has been
constituted in accordance with and under the Ordinance. We should also add that a
CAs 368 to 370 of 2011
5
grievance that the right of a citizen granted by Article 17 has been infringed in
circumstances such as the present raises multiple factual and legal issues. These had to
be specifically pleaded in the writ petition. However, as noted above, this was not done
and cannot be allowed at this stage in the absence of relevant averments in the writ
petition. In any event, in view of our finding that the fundamental right guaranteed to
the respondents has not been infringed, the deficiency in the pleadings or its correction
at this stage has no relevance.
8.
For completeness, we may add that learned counsel for the respondents referred
to the cases tiled Ghulam Rasul v. Chief Administrator of Auqaf (PLD 1966 (W.P) Lahore
978), Abul A’la Maudoodi v. Govt.of West Pakistan (PLD 1964 SC 673), Federation of Pakistan
v. Ghulam Mustafa Khar (PLD 1989 SC 26) & I.A. Sharwani v. Government of Pakistan (1991
SCMR 1041). We have gone through the cited precedents and observe that none of these
have any application or relevance to the facts and circumstances of the case before us.
9.
In view of the foregoing discussion, we agree with the submissions of learned
counsel for the appellants that the learned Judge-in-Chambers in the High Court
proceeded on erroneous grounds while allowing the writ petition filed by the
respondents Nos. 1 to 4. In this view of the matter, the appeals are allowed.
Consequently, the impugned judgment is set-aside and as a result, the writ petition,
filed by the respondents, is dismissed.
10.
Before parting with this judgment, we may note that the matter before us was
confined to a controversy between the appellants on the one hand and respondents Nos.
1 to 4 on the other. Respondent No. 5 namely, the Pakistan Olympic Association was not
affected by the impugned judgment and remains unaffected by our present decision.
Judge
Judge
Islamabad.
A. Rehman.
8th May, 2012
Approved for reporting.
| {
"id": "C.A.368_2011.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
Present:
Mr. Justice Gulzar Ahmed, HCJ
Mr. Justice Ijaz ul Ahsan
Civil Appeal No.370 of 2020
(Against the judgment dated
3.3.2017,
passed
by
the
Punjab
Service
Tribunal,
Lahore, in Appeal No.377 of
2014)
Commissioner Faisalabad Division, Faisalabad
and another
... Appellant (s)
Versus
Allah Bakhsh son of Mian Muhammad, Patwari
Halqa, Chak No.490/JB, Tehsil Shorkot, District
Jhang
… Respondent (s)
For the Appellant (s)
: Ch. Faisal Fareed,
Addl. Advocate General, Punjab
Mr. Babar Hayat Tarar,
Sr. Member, Board of Revenue
Mr. Ishrat Ali,
Commissioner, Faisalabad
Mr. Faizan Ahmad,
A.C., Shorkot
For Respondent (s)
: Mr. Shahid Azeem, ASC
Mr. Ahmad Nawaz Ch., AOR with
Respondent
Date of Hearing
: 01.07.2020
JUDGMENT
GULZAR AHMED, CJ.- The Senior Member, Board of
Revenue, Punjab (SMBR) has appeared before the Court and filed a
Report showing that as many as four persons were involved in making
the present matter time-barred (at petition stage). Out of those four
persons, one has expired and against remaining three, disciplinary
proceedings have already been initiated. The matter is at the stage of
passing of the final order by the Competent Authority. Such Report of
Civil Appeal No.370 of 2020
2
SMBR is kept on the record. As explained in the said Report and for
the reasons assigned in the application for condonation of delay, the
delay is condoned and in such terms, the application is disposed of.
2.
On the merits of the case, the learned Additional Advocate
General, Punjab has contended that the respondent had admitted the
fact of signing the mutation of Government land in favour of one Iqbal.
Despite such admission of the respondent, the Punjab Service
Tribunal (the Tribunal) found such commission on the part of
respondent to be not misconduct, and the penalty of dismissal from
service, imposed upon him, was found to be not commensurate with
the gravity of the offence. The penalty thus imposed on the respondent
by departmental authorities was converted into forfeiture of two years’
approved service.
3.
We note that such manner of dealing of the appeal filed by
the respondent before the Tribunal is totally not in accordance with
the law. Where the respondent himself has admitted the commission
of the offence that he has transferred Government land measuring 270
Kanals, situated in Chak No.492/JB, District Jhang, causing loss of
millions of rupees to the Government exchequer, such conduct of the
respondent could not be considered as mere negligence, rather it
constitutes misconduct and maximum penalty under the law has to be
imposed upon him.
4.
We also note that the Tribunal has for a considerable time
been taking a lenient view of misconduct by government servants even
where an employee of the Department has admitted the commission of
an offence constituting serious misconduct or the offence has been
proved through inquiry. Despite this, the Tribunal reduced the penalty
imposed upon such an employee by the Authority/Department,
Civil Appeal No.370 of 2020
3
considering the same to be harsh and not commensurate with the
gravity of the offence, without assigning any legally sustainable
reasoning by stating that the Tribunal enjoys “vast powers” under
Section 5 of the Service Tribunals Act, 1973 to confirm, set aside, vary
or modify orders passed by the departmental authorities. The question
is how “vast” are the powers of the Tribunal and whether these powers
are discretionary, at the whims of the Tribunal and totally
unstructured and unlimited.
5.
It is important to note that the Government properties and
the Government funds are not to be doled out by the Government
officials, either to private persons or to themselves, and such conduct
amounts to fraud upon the Government and person(s) committing
fraud or embezzlement of the Government property or money could, in
no circumstances be treated leniently in disciplinary proceedings and
in appropriate cases, be allowed to continue in the service.
6.
The respondent was proceeded against departmentally by
issuing of a Show Cause Notice and the Statement of Allegations
against him. An inquiry was conducted and the requirements of
natural justice were duly complied with. We note that the judgment of
the Tribunal holding that the respondent had been given harsh
punishment and the punishment was not commensurate with the
gravity of the offence, is altogether misplaced; more particularly, when
looked at from the point of view that the respondent has
transferred/mutated Government land in favour of private parties,
causing huge loss to the Government exchequer.
7.
The submission of the learned counsel for the respondent
that no loss has been caused to the Government because the land in
question was later taken back by the Government is of non-
Civil Appeal No.370 of 2020
4
consequence in the facts and circumstances of the present case, even
if true. When the conduct of the respondent came to light, the
Government machinery took steps to rectify such transfer of the
Government land to the private persons. The mere fact that despite
commission of the offence no loss was caused to the Government
exchequer or the loss caused was recovered cannot be a mitigating
factor in punishing a government servant whose misconduct stands
established. If he gets off scot free or with a minor penalty what is
there to prevent him from repeating the same offence and the next
time loss may actually be caused and not recovered. This is the
inherent flaw in the argument of the learned counsel for the
respondent.
8.
The contention of the learned counsel for the respondent
is that even if he has committed some misconduct, the appellants were
not justified in passing the order of dismissal against him, is
misconceived and without substance. Once misconduct is established,
it is the prerogative of the department to decide on the quantum of
punishment, out of the various penalties provided in law. Unless the
Tribunal finds exercise of such prerogative by the departmental
authority to be perverse and totally disproportionate to the gravity of
the offence/misconduct for which reasons have to be recorded penalty
imposed by the departmental authorities cannot be interfered with.
Such reasons must valid and meet the standards of logical and
judicial reasoning. The powers of the Tribunal under Section 5 of the
Punjab Service Tribunals Act, 1974 to confirm, set aside, vary or
modify orders appealed against are neither discretionary nor
unbridled. Such powers have to be exercised cautiously, carefully and
with circumspection where the order imposing the penalty is wholly
perverse or ex facie so demonstratably disproportionate and excessive
Civil Appeal No.370 of 2020
5
for the offence/misconduct, that to let it stand would be unfair, unjust
and inequitable. Further, where powers are exercised under Section 5
ibid, detailed reasons must be recorded justifying such exercise which
would withstand the test of judicial scrutiny by this Court. The
Tribunal has in this case reduced the penalty without much ado and
no reasoning although the respondent was found guilty of misconduct
by all fora in all departmental proceedings.
9.
In this view of the matter, we have found the order of the
Tribunal to be self contradictory in excess of jurisdiction and devoid of
any reasoning let alone cogent and legally acceptable. The impugned
judgment of the Tribunal can therefore not be sustained. The appeal is
accordingly allowed and the impugned judgment is set aside.
Consequently, the order passed against the respondent for his
dismissal from service is restored. Copy of this order be supplied to the
Chairman as well as the Members of the Federal Service Tribunal and
all the Provincial Service Tribunals.
Chief Justice
Islamabad, the,
1st July, 2020
Mahtab H. Sheikh/*
‘APPROVED FOR REPORTING’
Judge
| {
"id": "C.A.370_2020.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
PRESENT:
Mr. Justice Qazi Faez Isa
Mr. Justice Sajjad Ali Shah
Civil Appeal No. 383 of 2013.
(Against the order dated 10.6.2011 passed by the
Lahore High Court Rawalpindi Bench in WP 1436/2011)
Muhammad Miskeen
… Appellant(s)
Versus
District Judge Attock, etc.
… Respondent (s)
For the Appellant (s)
:
Mr. Mazhar Masood Khan, ASC
Mr. Mehmood A. Sheikh, AOR
For the Respondent-3
:
Sh. Ahsan ud Din, ASC
Ch. Akhtar Ali, AOR
For the Respondent-4
:
Sh. Azmat Ali Bukhari, ASC
Date of Hearing
:
26.11.2019
Judgment
Sajjad Ali Shah, J. Briefly, the respondent Firdos Khan on 1st
November, 1999 entered into an agreement to purchase six marlas of land
situated in Kamilpur Syedan Tehsil and District Attock from one Abdul
Rehman. The agreement neither provided the description of land by metes
and bounds nor identified it through specifying Khasra numbers, khewat
numbers etc. The agreement even did not mention the sale consideration
agreed between the parties but only narrated that an advance of Rs.50000/-
was paid to the said Abdul Rehman. It appears that this agreement could
not be materialized and consequently the respondent Firdos Khan, on
28.2.2000, filed a suit seeking specific performance of the stated agreement
but somehow the other he, on his own, described in the plaint Khewat No.
255, Khasra Nos. 853, 854 & 855. That on being summoned, Abdul Rehman
filed his written statement wherein he has categorically stated that since
CA 383 of 2013
2
Firdos Khan had failed to pay the balance sale consideration in terms of the
agreement, therefore, he has sold his land and confiscated the advance in
terms of the agreement.
2.
Firdos Khan adduced evidence in support of his claim his
witnesses were cross examined and it was suggested that the price was
orally agreed at Rs.50,000/- per marla and Abdul Rehman repeatedly asked
Firdos Khan to pay the balance sale consideration of Rs.250,000/- and get
the sale deed executed in his favour but Firdos Khan avoided as he had no
money. The defendant Abdul Rehman had no interest in the lis as he had
already sold the land, therefore, he choose not to appear in the witness box
and consequently the suit was decreed on 1.6.2001. It is very interesting
that neither the agreement nor the plaint stated the total sale price but the
Court on its own determined the total sale price as Rs.78,000/- i.e.
Rs.13000/- Per Marla.
3.
On the other hand, the record reflects that on 1.3.2000 the
present appellant Muhammad Miskeen purchased six marlas of land bearing
Khewat No. 198/326, Khasra Nos. 851 & 852 and Khewat No. 255, Khasra
Nos. 854 & 855 situated in the revenue estate of Kamilpur Syedan Tehsil
and District Attock through registered sale deed dated 1.3.2000 carrying
mutation No.3200 from Mst. Razia Begum and Mst. Shabana who happened
to be the real mother and sister of said Abdul Rehman. The possession of
land was handed over to the present appellant Muhammad Miskeen who on
9.7.2001 got the construction plan sanctioned from Municipal Corporation
Attock and excavated a well, raised boundary wall and installed gate
thereon.
4.
It appears that on 4.9.2001 respondent Firdos Khan, after
depositing Rs.28000/- (the balance sale price in terms of decree) in
government treasury, initiated execution proceedings, seeking execution of
the conveyance deed. This was the first time appellant Muhammad Miskeen
entered appearance in Court and on 8.10.2001 filed objections to the
CA 383 of 2013
3
execution proceedings in which he categorically disclosed that the subject
property was owned by Mst. Razia Sultana and Shabana Bibi from whom he
has purchased on 1.3.2000 through a registered conveyance deed. The trial
Court vide its order dated 12.4.2002 dismissed the objection on the ground
that the suit was filed on 28th February, 2000 and the conveyance deed was
executed in favour of objector on 1.3.2000, therefore, the transaction was hit
by principle of lis pendens.
5.
The appellant Muhammad Miskeen filed an appeal against the
said order and the learned Additional District Judge Attock vide its order
dated 11.7.2002 set-aside the said impugned order of Civil Judge by holding
that principle of lis pendens is inapplicable and directed to decide the
application after framing of issues and recording of evidence. The trial Court
after recording evidence of both the sides again vide its order dated
18.10.2006 dismissed the objection petition. The appellant again filed an
appeal and the learned Additional District Judge vide its order dated
30.1.2008 this time dismissed the appeal on the ground that the appropriate
remedy for the appellant was to file an application under section 12(2) CPC.
6.
Soon after dismissal of the appeal, the executing Court issued
a writ of possession in respect of the subject property in favour of Firdos
Khan and consequently the Bailiff, on 4th February, 2008, in presence of
Abdul Rehman handed over the peaceful vacant possession of the subject
plot to Firdos Khan.
7.
The appellant Muhammad Miskeen, in consequence to the
observations of the Additional District Judge, on 26.2.2008 moved an
application under Section 12(2) CPC. The Court framed issues on 26.7.2008
and thereafter two witnesses were examined one from Building Department
of TMA Attock who produced the plan which was got approved by
Muhammad Miskeen appellant for the construction of his house on the
subject property whereas the other witness Razia Begum stated that her
earlier statement recorded on the application resisting the execution may be
CA 383 of 2013
4
treated as her statement. It appears that thereafter on 27.1.2010 the
respondent Firdos Khan moved an application seeking rejection of
application under Section 12(2) CPC on the ground that it was barred by
time and the Court after hearing the parties vide its order dated 25.2.2010
rejected the application by holding the application to be barred by time. The
appellant thereafter filed a revision petition before the learned District Judge
who vide its order dated 3.5.2011 dismissed the same by affirming the view
of the Civil Judge. The appellant thereafter approached the Lahore High
Court by invoking its writ jurisdiction and the High Court too, vide its
impugned order, maintained the concurrent findings that the application
under Section 12(2) CPC was barred by time.
8.
Leave was granted by this Court on 9.10.2017 in terms of order
dated 7.9.2011 to examine that since the appellant, who had purchased the
subject property through registered sale deed, had been diligently pursuing
his remedy and thus as to whether his application under Section 12(2) CPC
could have been dismissed on the ground of limitation. We, while hearing
this appeal, on 20.11.2019 added the following additional points in the leave
granting order not only to put the counsel on notice of the points which
during their submission had come to our attention but to solicit their
assistance:-
i)
Whether the agreement of sale deed dated 11th April,
1999, which did not mention the particulars of the
property and consideration, is compliant with section
29 of the Contract Act, 1872;
ii)
Whether the plaint complied with the provisions of
Order VII Rule 3 of the Code of Civil Procedure; and
iii)
The consequences in respect of error or mistake
committed by a court”.
9.
Counsel for the appellant contended that since the sale
agreement neither provided the description of the property nor the sale
consideration, therefore, it was void and could not have been enforced
CA 383 of 2013
5
through a suit for specific performance. It was next contended that the
executing Court without determining the title/entitlement of Abdul Rehman
to sell and without giving finding on the registered conveyance deed in
favour of the appellant Muhammad Miskeen, could not have executed the
decree by issuance of writ of possession as Abdul Rehman was not the
owner of the property. It was further contended that the appellant has
suffered on account of the mistake committed by the Court by enforcing a
void agreement which needed to be corrected. It was lastly contended that
the plaint did not specify the subject property by metes and bounds in terms
of Order VII Rule 3 CPC, therefore, was in-executable in itself but the Court
without there being anything on record dispossessed the appellant and
handed over the possession of his property to respondent Firdos Khan.
10.
On the other hand, counsel for responded Firdos Khan fairly
and frankly conceded that the agreement of sale neither specifies khasra
numbers or khewat numbers etc. nor describe the property by metes and
bounds. He also admits that there was no sale consideration fixed but
contends that since this dispute has already been adjudicated rightly or
wrongly and this Court has only to consider as to whether the application
under Section 12(2) CPC was rightly dismissed on account of being barred
by time or not. However, he further states his no objection for condoning the
delay in filing application under Section 12(2) CPC and submits that the trial
Court may be directed to record the evidence on the appellant’s application
under section 12(2) CPC and then to pass appropriate orders in accordance
with law.
11.
We have heard the arguments of learned counsel for the
respective parties and have minutely perused the record.
12.
Section 22 of the Specific Relief Act clearly lays down that the
jurisdiction to decree a suit for specific performance is purely discretionary
and the Court is not bound to grant such relief merely because its lawful to
do so and further that such discretion of the Court is not arbitrary but is
CA 383 of 2013
6
based on sound and reasonable judicial principles. In our opinion the
Courts below have totally ignored the law on the subject while decreeing the
suit on the basis of an agreement which neither specified the property under
sale by metes and bounds nor provided for the sale consideration. The
agreement merely states that a sum of Rs.50,000/- was paid in advance
towards an unspecified sale price in respect of six marlas of land situated in
Kamilpur Syedan Tehsil and District Attock without specifying Khasra
numbers, khewat numbers etc. The plaint filed by the respondent Firdos
Khan though has prescribed the khasra numbers (without any supporting
documentary evidence showing the ownership of the seller in respect of land
claimed) but is totally silent regarding the agreed sale consideration. The
trial Court without framing any issue to find out the veracity of the plaintiff’s
claim regarding the claimed land or the title of the seller believed the
statement of plaintiff/respondent No.1 and decreed the suit. The other
failure on the part of the trial Court was to fix the total sale price of the plot
on its own ignoring the fact that neither the agreement nor the plaint
prescribed the sale price. The trial Court allowed the plaintiff/respondent
Firdos Khan to build a case which was even not pleaded in the plaint. The
Court even did not feel it necessary to frame an issue to find out the sale
price and placed reliance on totally extraneous documents. In these
circumstances, the trial Court ought to have given convincing reasons for
decreeing the suit by allowing specific performance and for ignoring all the
deficiencies in the agreement as well as in the plaint specially when the relief
was discretionary.
13.
The other important fact which was not taken care by the trial
Court or the respondent Firdos Khan was that Abdul Rehman in his written
statement had clearly mentioned that he had sold the subject property
despite no efforts were made to implead the purchaser before decreeing the
suit.
CA 383 of 2013
7
14.
The matter does not end here. It appears that when the
respondent Firdos Khan filed execution application on 4.9.2001, the
appellant Muhammad Miskeen filed objections which in the first round were
dismissed on the ground of lis pendens and on remand by the appellate
Court to decide the objection after framing issues. It appear that the Court
thereafter framed issues and allowed the parties to lead evidence and even
one of the issues was:-
“Whether decree has not passed by fraud and collusion”
15.
Thereafter the objection petition was dismissed and in appeal
the appellate Court without looking into this aspect that the trial Court has
already allowed the parties to adduce evidence and giving his finding on this
particular issue, rejected the appeal by making an observation that the
proper remedy was to file an application under section 12(2) ignoring the
fact that the trial as well as the executing Court were one and the same. The
appellant Muhammad Miskeen, thereafter filed another application under
Section 12(2) CPC which till the High Court was dismissed being barred by
time. Though Mr. Sheikh has conceded that the delay in filing of application
under section 12(2) could be condoned and the matter may be remanded to
the trial Court so that the parties could adduce evidence. However, we have
found that such plea of fraud and misrepresentation was taken in the first
application on which an issue was framed regarding fraud and
misrepresentation and thereafter parties were allowed to lead evidence.
Therefore, it would be totally unfair to again throw the parties at the mercy
of litigation for another 20 years as the present round of litigation has
almost consumed two decades.
16.
We have also found from the record that on first objection
petition, not only a challenge to decree on the ground of fraud was thrown
but as observed a specific issue, to this effect, was framed. Appellant
Muhammad Miskeen had appeared in the witness box, he was cross-
examined by the counsel for respondent Firdos Khan and thereafter
CA 383 of 2013
8
respondent Firdos Khan appeared, adduced his evidence and was cross-
examined by counsel of appellant Muhammad Miskeen. Firdos Khan further
produced Shabana Begum, Razia Begum and one Muhammad Safdar
Qureshi as his witnesses and were duly cross examined and interestingly
the trial as well as the executing Court were the same.
17.
We note with great concern that though both applications filed
by the appellant first before the executing Court objecting the execution of
decree against his property and second before the trial Court under section
12(2) CPC challenging the decree by pleading fraud, misrepresentation and
lack of jurisdiction, were competently filed and were wrongly dismissed. The
first application was competent for the reason that the appellant had placed
title documents before the executing Court in respect of Khewat No.198
(326), Khasra Nos. 851 and 852 which did not form part of the decree and,
therefore, could have been validly objected to under Order XXI Rule 58 or
under other provisions of Code of Civil Procedure whereas the second
application under Section 12(2) was also competent as the respondent
Miskeen had obtained a decree in respect of Khewat No.255, Khasra Nos.
854, 855 for which the appellant was holding registered conveyance deed
and unless such conveyance deed would have been cancelled, no fresh
decree regarding ownership of the said property could not have been
passed. We have noticed that the sole defendant namely, Abdul Rehman in
his written statement has disclosed the sale of the said property and it has
come in evidence subsequently in execution proceedings that the parties
were known to each other or there was a jirga, (the veracity whereas we
cannot vouch) reflects that the respondent Firdos Khan was aware of the
sale, therefore, he ought to have joined the appellant in the proceedings.
18.
Though it is a fit case where this Court could go beyond what
was appealed in order to do a complete justice between the parties, however,
while exercising restraint, we would set-aside all orders passed on
appellant’s application under Section 12(2) CPC as we have noticed that the
CA 383 of 2013
9
Courts below have not followed the rules or procedures provided in the Code
of Civil Procedure by accepting stances and documents which did not form
part of the pleadings and have conducted the proceedings as there are no
rules which regulate the proceedings before the trial Court while exercising
the civil original jurisdiction. The objection to the decree as well as to the
execution proceedings would be deemed to be pending before both the
Courts and the already recorded evidence as we have noticed in para 16
above would be valid for the purposes of both the proceedings as we have
found commonality in both the proceedings. None of the orders on record
would come in the way of trial as well as executing Court to adjudge the
dispute but strictly on the basis of pleadings. However, the parties would be
at liberty to adduce any fresh evidence in support of their pleadings and the
trial Court should ensure that the application under Section 12(2) CPC is
decided within 60 days and in case the judgment and decree could not be
sustained then restitution of property in terms of Section 144 should also be
considered. In case any of the Court is fell vacant, the District Judge would
ensure that the matter is transferred to the next nearest Court having the
jurisdiction to try the matter.
19.
The appeal is allowed in the above terms leaving the parties to
bear their own costs.
Judge
Islamabad, the
Announced on 15.01.2020.
A. Rehman
Judge
Approved for Reporting.
| {
"id": "C.A.383_2013.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
PRESENT:
MR. JUSTICE ANWAR ZAHEER JAMALI, CJ
MR. JUSTICE SH. AZMAT SAEED
MR. JUSTICE KHILJI ARIF HUSSAIN
CIVIL APPEAL NO.384 OF 2014
(On appeal from order dated 7.2.2014,
passed
by
the
Election
Tribunal,
Quetta-1, in E.P.No.01/2013)
Muhammad Khan
… Appellant (s)
Versus
Obaidullah Jan Babat and others
… Respondent (s)
For the Appellant (s)
: Mr. Muhammad Akram Sheikh, Sr. ASC a/w
Barrister Sajeel Sheryar, Advocate
Ch. Hasan Murtaza Mann, Advocate
Miss Sundas Hurain, Advocate
For the Respondent (s)
: Mr. Tariq Mehmood, Sr. ASC
Syed Rifaqat Hussain Shah, AOR
Date of Hearing
: 20 and 26.01.2016
JUDGMENT
SH. AZMAT SAEED, J.- This Civil Appeal under
Section 67(3) of the Representation of People Act, 1976 (ROPA)
is directed against the Order dated 07.02.2014, whereby an
Election Petition bearing No.1 of 2013, filed by the present
Appellant, was dismissed.
CA.384/2014.
2
2.
Brief facts necessary for adjudication of the lis at
hand are that the General Elections were scheduled for the 11th
of May, 2013, including for the Provisional Assembly of the
Province of Balochistan. The Appellant and the present
Respondents filed their respective Nomination Papers to
contest the Elections from Constituency PB-16 Loralai-II. It
appears from the record that the Appellant filed two separate
Nomination Papers to contest the said Elections, however, both
were rejected by the Returning Officer vide Order dated
07.04.2013, holding the Appellant disqualified to contest the
said Elections. Aggrieved, the Appellant filed two Appeals i.e.
Election Appeals No.21 and 25 of 2013 before the learned
Election Tribunal, which failed to find favour and were
dismissed vide Order dated 17.04.2013. The said Order dated
17.04.2013, was challenged through Constitutional Petitions
No.286 and 287 of 2013 before the learned High Court of
Balochistan, which too were dismissed vide Order dated
19.04.2013.
3.
The Appellant challenged the above-said Order
dated 19.04.2013 of the learned High Court of Balochistan by
invoking the appellate jurisdiction of this Court through two
CA.384/2014.
3
separate Civil Petitions for Leave to Appeal No.520 and 521 of
2013.
4.
The aforesaid two Civil Petitions for Leave to Appeal
came up for hearing before this Court on 25.04.2013 when
CPLA No.521 of 2013 was not pressed and was disposed of;
and leave to appeal was granted in CPLA No.520 of 2013. The
said CPLA No.520 was accompanied by a Civil Misc.
Application bearing No.2348 of 2013, seeking interim relief
thereupon, the following Order was passed:
“Notice for a date during next month. Meanwhile
operation of the impugned judgment shall remain
suspended.”
5.
In the above backdrop, the Appellant was permitted
to contest the elections along with the Respondents and after
the poll Respondent No.1 was declared and notified as a
Returned Candidate while the Appellant was runner up.
6.
The Civil Appeal No.444 of 2013 arising out of Civil
Petition for Leave to Appeal No.520 of 2013 wherein leave to
appeal has been granted vide Order dated 25.04.2013 referred
to above, came up for hearing before this Court on 06.11.2013.
7.
In the meanwhile, the Appellant had already
challenged the elections of Respondent No.1 through an
CA.384/2014.
4
Election Petition under Section 52 of the ROPA, which was
pending adjudication before the learned Election Tribunal. On
20.12.2013, Respondent No.1 filed an application seeking
dismissal of the Election Petition filed by the Appellant, inter
alia, contending that the said Election Petition was not
maintainable as the Appellant had no locus standi to maintain
such Election Petition as he (the Appellant) was not a “validly
nominated candidate” for the purposes of Section 52 of ROPA.
The said contentions found favour with the learned Election
Tribunal and the Election Petition filed by the Appellant was
dismissed vide Order impugned dated 07.02.2014.
8.
It is contended by Mr. Muhammad Akram Shaikh,
learned Sr. ASC that the Appellant was not disqualified from
contesting the elections as no Court of competent jurisdiction
had returned a finding against the Appellant, in this behalf,
hence his Nomination Papers could not have been legally
rejected. In the above backdrop, after the illegal rejection of the
two Nomination Papers filed by the Appellant, the matter was
agitated right up to this Court by filing Civil Petitions for Leave
to Appeal No.520 and 521 of 2013. The Appellant, it is
contended, had filed one Nomination Paper to contest the
CA.384/2014.
5
Elections as an Independent Candidate while the other
Nomination Paper had been filed as a Candidate of a Political
Party. Since the Appellant decided to contest the Elections on
the ticket of a Political Party, the Civil Petition for Leave to
Appeal arising from the Order rejecting the said Nomination
Paper was not pressed. However, leave was granted in the Civil
Petition pertaining to the matter of rejection of the Nomination
Paper of the Appellant filed as a Candidate of a Political Party.
Interim relief was granted by this Court to the Appellant to
contest the Elections. The afore-said is evident from the Order
of this Court dated 25.04.2013. Pursuant to the said Order, the
Appellant contested the Elections. After the Elections had been
held the Appellant withdrew the pending proceedings before
this Court without prejudice to his rights as is apparent from
the Order dated 06.11.2013, hence, by operation of law, the
Appellant was clothed with the locus standi to file an Election
Petition under Section 52 of ROPA, 1976 and such Election
Petition could not be summarily rejected by the learned
Election Tribunal vide Order impugned, which is, therefore, not
sustainable in law.
CA.384/2014.
6
9.
In the alternative, it is further contended by the
learned counsel for the Appellant that in Section 2 of ROPA,
1976, the various terms employed in the said Statute have been
defined. Such words and expressions defined in the said
provision include “candidate”, “validly nominated candidate”,
“contesting candidate” and “returned candidate”. Such
expressions
have
been
defined
in
the
Statutes
in
contradistinction to each other. In Section 52 of ROPA, 1976, a
“candidate” can file an Election Petition, and the expression
“candidate” has been defined in Section 2 sub section (iv) as
“means a person proposed as a candidate for, or seeking
election as a member”. The learned counsel also referred to
Section 2 sub section (xxvi) of ROPA, 1976, wherein “validly
nominated candidate” has been defined to “mean a candidate
whose nomination has been accepted”. Thus, even if it is
presumed that the Appellant was not a “validly nominated
candidate” in as much as his Nomination Papers were legally
rejected, he the Appellant, in law could file an Election Petition
in terms of Section 52 of ROPA, 1976, as it is a settled law that
the words and expressions used in a Statute or any provision
thereof must necessarily be interpreted inconformity with the
CA.384/2014.
7
definitions given in the Interpretation Clause of such Statute. It
is added, had the intention of the law been to limit the scope of
Section 52 of ROPA, 1976, to the Election Petitions being filed
only by validly nominated candidates or by the contesting
candidates, it is such expression, which would had been
employed in the said provision (Section 52 of ROPA, 1976).
Therefore, the learned Election Tribunal has misconstrued,
misinterpreted and misapplied the law by way of the
impugned judgment, which is consequently not tenable in law
and liable to be set aside.
10.
The learned counsel further contended that the
entire election process was tainted and both, the Appellant as
well as the Contesting Respondents had expressed their
dissatisfaction and separately sought verification of the thumb
impressions on the counterfoils of the Ballot Papers through
National Database and Registration Authority (NADRA). The
learned counsel also pointed out that the number of rejected
votes (900) exceeded the votes separating the Appellant from
the Contesting Respondents in terms of notified result thereby
denuding such result of credibility and authenticity. It was
urged that the impugned judgment be set aside and the
CA.384/2014.
8
Election Petition filed by the Appellant be decided on merits. In
support of his contentions, the learned counsel relied upon the
judgments, reported as (1) Raja Aftab Ahmad Khan v.
Muhammad Ajmal and another (PLD 2010 SC 1066), (2)
Muhammad Rizwan Gill v. Nadia Aziz and others (PLD 2010
SC 828), (3) Election Commission of Pakistan through its
Secretary v. Javaid Hashmi and others (PLD 1989 SC 396), (4)
Ghulam Mustafa Jatoi v. Additional District & Sessions
Judge/Returning Officer, N.A. 158, Naushero Feroze and
others (1994 SCMR 1299), (5) Raja Muhammad Afzal v. Ch.
Muhammad Altaf Hussain and others (1986 SCMR 1736) and
(6) Naeem Hussain Chattha v. Tawakkal Ullah and another
(1997 CLC 192).
11.
The learned Sr. ASC for the Contesting Respondents
controverted the contentions raised on behalf of the Appellant
by contending that pursuant to the General Elections held in
2008, it was discovered that the Appellant had utilized fake and
fraudulent
educational
testimonials
and
the
Election
Commission of Pakistan (ECP) concluded that the Appellant
was disqualified and directed the initiation of criminal
proceedings
against
him.
In
view
of
the
afore-said
CA.384/2014.
9
determination of the ECP, both the Nomination Papers filed by
the Appellant for the Elections of 2013 were rejected on the
ground that the Appellant was disqualified from contesting the
Elections. The Appellant invoked the jurisdiction of this Court
through two separate Civil Petitions for Leave to Appeal i.e.
CPLA No.520 and 521 of 2013. One of such Petition was
withdrawn as is evident from the Order of this Court dated
25.04.2013. Thus, the Order of the Returning Officer holding the
Appellant to be disqualified and rejecting his Nomination
Papers in this behalf attained finality. Therefore, it was
contended, both in fact and in law, the Appellant was
disqualified from contesting the Elections in question held on
the 11th of May, 2013. Furthermore, with reference to the Civil
Petition for Leave to Appeal which was not withdrawn by the
Appellant and interim Order was passed merely suspending
the operation of the judgment impugned therein i.e. the
judgment passed by the learned High Court, dismissing the
Constitutional Petition filed by the Appellant. The legal
consequence of such suspension would at best result in the
revival of the Order of the Returning Officer rejecting the
Nomination Papers of the Appellant. Thus, despite the Order of
CA.384/2014.
10
this Court dated 25.04.2013, purportedly granting interim relief,
the Appellant was not entitled to contest the Elections and the
ECP misconstrued the said Order by allowing the Appellant to
participate in the electoral process. Consequently, the very
candidature of the Appellant was non-est in the eye of law
who, therefore, had no locus standi to file an Election Petition in
terms of Section 52 of ROPA, 1976, as has been correctly held by
the learned Election Tribunal by way of the impugned
judgment. After the Elections were held and Respondent No.1
was declared and notified as a Returned Candidate, the
Appellant withdrew his Civil Petition for Leave to Appeal
without prejudice only to the matter pending before the ECP
pertaining to the Elections of 2008, as is apparent from the
Order dated 06.11.2013. As a consequence of such withdrawal,
there can be no manner of doubt that the question of
disqualification of the Appellant and rejection of his
Nomination Papers became a past and closed transaction.
Furthermore, had the Appellant wished to achieve the locus
standi to file an Election Petition under Section 52 of ROPA,
1976, he should have pressed the Civil Petition for Leave to
Appeal before this Court and sought its adjudication on merits.
CA.384/2014.
11
On account of the aforesaid withdrawal, the Appellant it was
contended lost not only the nascent status to file an Election
Petition under Section 52 of ROPA, 1976, but was also estopped
in law from doing so and such Election Petition filed by the
Appellant was not maintainable and rightly dismissed.
12.
The learned counsel for the Respondents drew the
attention of the Court to the various provisions of ROPA, 1976,
in an effort to establish that during the electoral process a
person seeking to contest the Elections attains various legal
status separately and distinctly referred to in the various
provisions of the law. A person who is proposed is referred to
as a “candidate”, if Nomination Papers filed are accepted he
attains the status of a “validly nominated candidate”, and if
such validly nominated candidate does not withdraw or retire
from elections, such person is referred to as a “contesting
candidate”. During the poll and thereafter, the only persons
recognized by law and available in the field are “Contesting
Candidates” while the others i.e. persons whose Nomination
Papers have been rejected or have been withdrawn or who have
retired from the Elections disappear from the scene and it is
only such Contesting Candidates who can challenge the
CA.384/2014.
12
Elections by filing an Election Petition under Section 52 of
ROPA, 1976, as has been held by way of the impugned
judgment. It was added that all expressions defined in Section 2
of ROPA, 1976, when employed in the succeeding provisions
can only be assigned the meaning given in Section 2 of ROPA,
1976, if there is nothing repugnant to the context in which such
expressions are used in the other provisions of ROPA, 1976.
Therefore, the expression “candidate” when used in Section 52
of ROPA, 1976, means a Contesting Candidate and not a
Candidate whose Nomination Papers have been rejected and as
a consequence thereof, has exited from the electoral process. To
interpret Section 52 of ROPA, 1976, as is being canvassed by the
learned counsel for the Appellant, it is contended, would
offend against the scheme of the law and may also result in
absurdity. The learned counsel further contended that each
provision of law must be given a purposive rather than a literal
interpretation as is the settled law and when examined
purposively Section 52 of ROPA, 1976, offers only one
interpretation i.e. that the Election Petition can only be filed by
a Contesting Candidate.
CA.384/2014.
13
13.
The learned counsel further contended that this
Court had already held that a person whose Nomination
Papers have been rejected, has no remedy before an Election
Tribunal, after the Elections. Furthermore, if the intention of
the law had been to permit persons other than the Contesting
Candidates to file Election Petitions after the Elections, express
words, in this behalf, would have been employed as has been
done in the Indian Representation of People Act, 1951.
Consequently, the judgment of the learned Election Tribunal is
in accordance with the law and should not be interfered with.
In support of his contentions, the learned counsel referred to
various treaties on Interpretation of Statutes and relied upon
the judgments, reported as (1) Jaffar Khan v. Chief Election
Commissioner, Pakistan and others [PLD 1965 (W.P.) Peshawar
245], (2) Ghulam Mustafa Jatoi v. Additional District & Sessions
Judge/Returning Officer, N.A. 158, Naushero Feroze and
others (1994 SCMR 1299), (3) Raja Abdul Qayyum v. Ch. Latif
Akbar, Advocate and 2 others (1994 CLC 2041), (4) Harbhajan
Singh v. Press Council of India and others (AIR 2002 SC 1351),
(5) Charan Lal Sahu v. Shri Fakruddin Ali Ahmed and others
(AIR 1975 SC 1288), (6) Amin Lal v. Hunna Mal (AIR 1965 SC
CA.384/2014.
14
1243) and (7) Kanai Lal Sur v. Paramnidhi Sadhukhan (AIR
1957 SC 907).
14.
Heard. Available record perused.
15.
The real matter in issue which goes to the heart of
the controversy involved in the instant case is regarding the
person who can file and maintain an Election Petition under
Section 52 (1) of ROPA, 1976, which reads as follows:
“No election shall be called in question except
by an election petition made by a candidate
for that election (hereinafter in this Chapter
referred to as the petitioner)
(emphasis supplied)
The expression “candidate” has been defined in Section 2 sub
section (iv) as follows:
“means a person proposed as a candidate for,
or seeking election as a member;”
The said Section 2 also defines the expression “contesting
candidate” in sub section (viii) in the following terms:
“means a validly nominated candidate who
has not withdrawn his candidature;”
A “validly nominated candidate” is defined in Section 2 sub
section (xxvi) as follows:
“means a candidate whose nomination has
been accepted;”
CA.384/2014.
15
A “returned candidate” has been defined in Section 2 sub
section (xxi) as follows:
“means a candidate who has been declared
elected as a member under this Act;”
16.
In pith and substance, it is the case of the Appellant
that in terms of Section 52 of ROPA, 1976, an Election can be
called into question by a candidate. The expression “candidate”
has been defined by Section 2 sub section (iv), reproduced
hereinabove and an expression defined in a statute must be
given only the said meaning. Had the intention of the
Legislature been to the contrary any of the other defined terms
i.e. “validly nominated candidate” or “contesting candidate”
would have been employed in Section 52 of ROPA, 1976.
17.
It may be noticed that the definitions enumerated in
the various clauses of Section 2 of ROPA, 1976, are prefaced
with the rider “In this Act unless there is anything repugnant in
the subject or context”.
18.
With regard to construing the true import and effect
of an Interpretation Clause in a Statutory Instrument, the Privy
Council in its judgment, reported as Indian Immigration Trust
Board of Natal v. Govindasamy (AIR 1920 Privy Council 114)
held as follows:
CA.384/2014.
16
“Now, when the interpretation clause in a
statute says that such and such an expression
shall include so and so, a Court in construing
a statute is bound to give effect to the
direction unless it can be shown that the
context of the particular passage where the
expression is used shows clearly that the
meaning is not in this place to be given effect
to, or unless there can be alleged some general
reasons of weight why the interpretation
clause is to be denied its application. …”
In the judgment of this Court, reported as The Bank of
Bahawalpur Ltd. through its Manager v. The Chief Settlement
& Rehabilitation Commissioner, Lahore and others (PLD 1977
SC 164), in the minority view of Muhammad Afzal Cheema, J.
by relying upon the aforesaid judgment of the Privy Council, it
was observed as follows:
“Although normally an expression if defined
in a Statute has to be given the same meanings
wherever it occurs therein, yet there is ample
authority for the principle of interpretation
that a definition of a term in a Statute is
merely declaratory in nature and should not
be unnecessarily inflicted where it does not fit
in with the subject and context and might lead
to anomalies and absurd results. Further
strength is lent to this justifiable invocation of
the
above
principle
by
the
express
qualification or exception with which section
2 was prefaced, namely, “unless there is
something repugnant in the subject or
context”. From this, it is abundantly clear that
the definition of "house" or of "possession"
like any other definitions contained in section
2 would apply only where it is in consonance
and fits in with the subject and the context
and not otherwise. The repugnancy is only
CA.384/2014.
17
too obvious and incapable of resolution on
any other reasonable hypothesis. …”
Subsequently, in a later judgment, the aforesaid minority view
was endorsed and followed by this Court in the case, reported
as Iftikhar Ahmad and others v. President, National Bank of
Pakistan and others (PLD 1988 SC 53) in the following terms:
“10. It is difficult to subscribe to the view
taken by the learned Judges in the High
Courts. No doubt, the award given by the
Wage Commission is not included in the
definition of the term 'award' as given in
section 2(ii) of the Ordinance, but then as the
governing clause of section 2 itself states the
definitions given therein are to be read subject
to anything repugnant in the context in which
the defined terms occur. Apart from that, as
held by this Court in Bank of Bahawalpur v.
Chief
Settlement
and
Rehabilitation
Commissioner PLD 1977 S C 164 that
although normally an expression if defined in
a Statute has to be given the same meaning
wherever it occurs therein, yet there is ample
authority for the principle of interpretation,
that a definition of a term in a Statute is
merely declaratory in nature and should not
be unnecessarily inflicted where it does not fit
in with the subject or context. …”
19.
The matter again came up for consideration before
this Court in the case reported as Syed Muhammad Haider
Zaidi and others v. Abdul Hafeez and others (1991 SCMR 1699),
wherein it was held as follows:
“18. We may observe that a definition clause
in a statute is of a declaratory nature though
CA.384/2014.
18
normally the definitions provided for in the
definition clauses are to be read into the
provisions of the Act while interpreting the
defined terms/words, but if the contents of
the provisions of the Act indicate otherwise,
the definition clause cannot override a main
provision of the statute. In the present case,
section 2 makes it explicit by providing that
“unless there is anything repugnant in the
subject or context”.”
In the aforesaid judgment, the following extracts from various
Treaties or Interpretation Statutes were quoted with approval:
“Craies on Statute Law Seventh Edition:
It is a sound rule of construction, said Cleasby
B. in Courtauld v. Legh, (1869) L.R. 4 Ex. 126,
130. Lewise v. Cattle (1938) 2 K.B. 454, 457. R.
v. Belfast JJ. (1947) N.I. 191) "to give the same
meaning to the same words occurring in
different parts of an Act of Parliament". The
presumption that the same words are used in
the same meaning is however very slight and
it is proper, "if sufficient reasons can be
assigned, to construe a word in one part of an
Act in a different sense from that which it
bears in another part of an Act. (Per Turner
L.J. in Re National Savings Bank (1866) L.R. 1
Ch. App. 547, 550). For instance, if, as Fry L.J.
said in Re Moody and Yates' Contract, (1885)
30 Ch. D. 344, 349) "a word is used
inaccurately in one section of a statute, it must
not
be
assumed
to
have
been
used
inaccurately when it occurs in another section
of the same statute". And, in fact, a word may
be used in two different senses in the same
section of an Act. (Maddox v. Storer (1963) 1
Q.B. 451). "It is obvious", said North J. in Re
Smith, Green v. Smith, (1883) 24 Ch. D. 672,
678) "that the word `property' is used in
section 54 of the repealed Bankruptcy Act,
1869 in two totally different senses". The
CA.384/2014.
19
Court said, in Doe d. Angell v. Angell (1846) 9
Q.B. 328). "Considerable difficulty arises in the
construction of the Real Property Limitation
Act, 1833 by reason of the word `rent' being
used in two different senses throughout viz.
in the sense of a rent charged upon land, and
of rent reserved under a lease". Similarly, in R.
v. Allen (1872) 1 C.C.R. 367, 374) the Court
held, as to the word "marry" in section 57 of
the Offences against the Person Act, 1861
(which enacts that "whosoever, being married,
shall marry any other person during the life of
the former husband or wife………shall be
guilty of felony") that "it is at once self-evident
that the proposition that the same effect must
be given to the term `marry' in both parts of
the sentence cannot possibly hold good.”
“Crawford on Interpretation of Laws 1940
Edition
Strictly
speaking,
construction
and
interpretation are not the same (U.S. v.
Wiltberger, 5 Wheat. (U.S.) 76, 5 L. Ed. 37),
although the two terms are often used
interchangeably (U.S. v. Keitzel, 211 U.S. 370,
53 L. Ed. 320, 29 S.Ct.123). Construction
however, to be technically correct, is the
drawing of conclusions with respect to
subjects that are beyond the direct expression
of the text, from elements known and given in
the text (U.S. v. Farenholt, 206 U.S. 226, 51
L.Ed. 1036, 27 S. Ct.123; People v. Comrs. of
Taxes, 95 N.Y. 554), while interpretation is the
process of discovering the true meaning of the
language used (Bloomer v. Todd, 3 Wash. T.
599, 19 Pac. 135, 1 L.R.A. 111). Thus, the Court
will resort to interpretation when it endeavors
to ascertain the meaning of a word found in a
statute, which when considered with the other
words in the statute, may reveal a meaning
different from that is apparent when the word
is considered abstractly or when given its
usual
meaning
(Anderson
v.
City
of
Hattiesburg, 131 Miss. Miss. 216, 94 So. 163).
CA.384/2014.
20
But when the Court goes beyond the language
of the statute and seeks the assistance of
extrinsic aids in order to determine whether a
given case falls within the statute, it resorts to
construction (Union Trust Co. v. McGinty, 212
Mass. 205, 98 N.E. 679). The process to be
used in any given case will depend upon the
nature of the problem presented. And, as is
apparent, both processes may be used in
seeking the legislative intent in a given
statute. If the legislative intent is not clear
after the completion of interpretation, then the
Court will proceed to subject the statute to
construction (2 Williston, contracts (1920)
1160-1161).”
“Maxwell On The Interpretation of Statutes
Twelfth Edition
The words of a statute, when there is doubt
about their meaning, are to be understood in
the sense in which they best harmonise with
the subject of the enactment (Towerfield
(Owners) v. Workington Harbour and Dock
Board (1949) P. 10. per Scott and Asquith L.
JJ., and Freed v. D.P.P. (1969) 2 W.L.R. 390).
Their meanings found not so much in a
strictly grammatical or etymological propriety
of language, nor even in its popular use, as in
the subject, or in the occasion on which they
are used, and the object to be attained (Per
cur., R. V. Hall (1822) 1 B. & C. 123).
Grammatically, words may cover a case but
whenever a statute or document is to be
construed it must be construed not according
to the mere ordinary general meaning of the
words, but according to the ordinary meaning
of the words as applied to the subject-matter
with regard to which they are used, unless
there is something which renders it necessary
to read them in a sense which is not their
ordinary sense in the English language as so
applied (Lion Mutual Marine Insurance
Association V. Tucker (1883) 12 Q.B.D. 176,
per Brett M.R.).”
CA.384/2014.
21
In the case, reported as Syed Mukhtar Hussain Shah v. Mst.
Saba Imtiaz and others (PLD 2011 SC 260), it was held as
follows:
“It is settled law that definition clause or
a section in a statute is meant generally to
declare what certain words or expressions
used in that statute shall mean, the obvious
object of such a clause is to avoid the necessity
of frequent repetition in describing all the
subject
matter
to
which
the
word
or
expression so defined is intended to apply.
…”
The Supreme Court of India in the judgment, reported as
Commissioner of Sales Tax, Gujarat v. M/s. Union Medical
Agency (AIR 1981 SC 1) expressed a similar view, which reads
as under:
“14. It is a well settled principle that when a
word or phrase has been defined in the
interpretation
clause,
prima
facie
that
definition governs whenever that word or
phrase is used in the body of the statute. But
where the context makes the definition clause
inapplicable, a defined word when used in the
body of the statute may have to be given a
meaning different from that contained in the
interpretation clause; all definitions given in
an
interpretation
clause
are,
therefore,
normally
enacted
subject
to
the
usual
qualification-'unless
there
is
anything
repugnant in the subject or context', or 'unless
the context otherwise requires'. Even in the
absence of an express qualification to that
effect such a qualification is always implied.”
CA.384/2014.
22
“18. There is no dispute with the proposition
that the meaning of a word or expression
defined may have to be departed from on
account of the subject or context in which the
word had been used and that will be giving
effect to the opening sentence in definition
section, namely 'unless the context otherwise
requires'. In view of this qualification, the
Court has not only to look at the words but
also to look at the context, the collocation and
the object of such words relating to such
matter and interpret the meaning intended to
be conveyed by the use of the words in a
particular section. But where there is no
obscurity in the language of the section, there
is no scope for the application of the rule ex
visceribus actus. …”
A perusal of the aforesaid reveals that the words and
expressions used in a Statute are ordinarily to be interpreted in
accordance with their normal dictionary meaning and the same
words used in different Sections of the same Statute usually
carry the same meaning. Words and expressions may be
defined in the Interpretation Clause of Statutes. Such
definitions are declaratory in nature and are incorporated to
avoid repetitiveness. Normally, such words and expressions
occurring in the main provisions of the Statute carry the same
meaning, as are available in the definition. However, both the
aforesaid general principles are subject to the overriding
condition that the said words and expressions must always be
construed with reference to the context they are used in the
CA.384/2014.
23
Statutes the subject of provisions wherein they are used and
examined with reference to the scheme of the Statute and the
intent and purpose to be achieved thereof. The possibility that
such words and expressions may have a different meaning in
individual Sections of the Statute cannot be entirely ruled out as
the meaning of such words and expressions must be construed
subject to the context in which they are employed in the specific
provision. Usually, definition clauses in the Statutory
Instruments are scribed subject to the rider that the words and
expressions so defined will carry the meaning ascribed to them
where the context and the subject so permit. Where the defined
meaning being employed results in an obvious anomaly or
absurdity, it is not permissible to mechanically and mindlessly
inflict such meaning regardless of repugnancy to the context or
the subject, to the words or expressions in the provision sought
to be interpreted.
20.
In the instant case, it is canvassed on behalf of the
Contesting Respondent that if the expression “candidate” as
used in Section 52 of ROPA, 1976, reproduced hereinabove, if
given the meaning as defined in Section 2 sub section (iv), it
would result in an anomaly and absurdity and also run
CA.384/2014.
24
contrary to the scheme of ROPA, 1976. It is the veracity of such
argument, which needs to be examined.
Section 12 of ROPA, 1976, deals with filing of the
Nomination Papers for election and confers a right on any
Elector of the Constituency to propose or second the name of
any duly qualified person in this behalf. The Nomination
Papers also require the signatures of such a person who is
referred to in the said provision as a “Candidate”. A person so
proposed is in fact a “candidate” as defined by Section 2 sub
section (iv) of ROPA, 1976. The Nomination Papers so filed are
subjected to scrutiny in terms of Section 14 of ROPA, 1976. A
candidate whose Nomination Papers are accepted is referred to
as a “validly nominated candidate” whose name is published in
a prescribed manner (Sections 15 and 26). Such validly
nominated candidate may subject to law withdraw from the
elections under Section 16 or retire therefrom under Section 17
of ROPA, 1976. Such validly nominated candidate who has
neither withdrawn nor retired from the Elections is the
Contesting Candidate as defined by Section 2 sub section (viii)
of ROPA, 1976. The names of such Contesting Candidates are
published in terms of Section 21 (b) of ROPA, 1976. It is the
CA.384/2014.
25
names and symbols of the Contesting Candidates alone which
are published on the Ballot Papers.
21.
When the electoral process reaches a stage where the
names of the Contesting Candidates are finalized and their
names and symbols published on the Ballot Papers, all
candidates whose Nomination Papers were rejected and such
order of rejection has attained finality as well as such validly
nominated candidates who have either withdrawn or retired in
accordance with law, for all intents and purposes cease to have
any further relevance in the subsequent process of the conduct
of the Elections. Yet, in the provisions that follow which pertain
to the electoral process, even prior to the stage of the resolution
of the electoral disputes there is repeated reference to the
expression “candidate”. If the said expression is interpreted in a
manner as canvassed by the learned counsel for the Appellant,
it would result in an obvious anomaly bordering on absurdity
rendering such provisions meaningless, as is obvious from the
following:
(a) In Section 22 (1) a “candidate” may appoint an
election agent and the name and details of such
appointment are to be transmitted to the Returning
Officer (Section 22 sub section 3). However, when
CA.384/2014.
26
the aforesaid provision is examined in juxtaposition
with Section 23 (1), it appears that a “contesting
candidate or his election agent” may appoint polling
agents for each polling station. Thus, if the definition
of the expression “candidate” as given in Section 2
sub section (iv) is pressed into service while
interpreting Section 22, it would result in an obvious
anomaly that while a candidate whose Nomination
Papers have been rejected may appoint an Election
Agent but cannot appoint any Polling Agent. Even
otherwise, the appointment of election agents by
such candidates would be an exercise in futility.
(b)
Similarly, in sub section 2 of Section 23, the
provision pertaining to revoking the authority of
polling
agent,
the
expression
“candidate”
is
employed. Such candidate cannot be anyone other
than a Contesting Candidate as only a contesting
candidate can appoint an election agent. Thus, by
interpreting
the
expression
“candidate”
with
reference to the context wherein it is employed the
only possible conclusion that can be drawn is that
such candidate is in fact the Contesting Candidate
and not the candidate as defined by Section 2 sub
section (iv) i.e. a candidate whose Nomination
Papers may have been rejected.
(c)
In Section 30 (4) (c), it is stated that the empty
Ballot Boxes would be shown to the “candidates or
CA.384/2014.
27
their election agents or polling agents” as may be
present. The expression “candidate” used in the said
provision obviously refers to a Contesting Candidate
as only such Contesting Candidate would have
polling agents in view of Section 23. Giving the term
“candidate” the meaning as set forth in Section 2 sub
section (iv) would render the said provision
meaningless.
(d)
Section 35 sub section (1) pertaining to
challenge of electors, it is provided that a “candidate
or his polling agent” can raise such objection. The
expression “candidate” in the said provision
obviously means a Contesting Candidate as only
such Contesting Candidate can appoint a polling
agent. The expression as defined in Section 2 sub
section (iv) if pressed into service would result in a
legal impossibility. Hence, in order to attribute any
meaning to the said provision, the term “candidate”
must be interpreted with reference to the context in
which it is employed.
(e)
In Section 38 sub section (11) the Presiding
Officer is required to provide a certified copy of the
statement of the count and a ballot paper account to
the “candidates, their election agents or polling
agents” as may be present. Here again the
expression
“candidate”
obviously
means
a
Contesting Candidate, as such Contesting Candidate
CA.384/2014.
28
alone can appoint polling agents. The aforesaid
becomes even more obvious in view of sub section
(13) of the said provision which provides that upon
each statement and packet prepared under sub
section (12), the signatures of the Contesting
Candidates or their election agents or polling agents
could be obtained. Yet again, the expression
“candidate” must necessarily be interpreted with
reference to the context and subject in accordance
with the scheme of the law rather than the meaning
enumerated in the Interpretation Clause i.e. Section 2
sub section (iv).
(f)
In Section 40, yet again reference is made to a
candidate and their election agents obviously it
refers to the Contesting Candidates only as they
alone can have election agents.
(g)
In Section 41, the term “candidate” is employed
while referring to drawing of lots in case of the
equality of votes. Obviously, such candidate means a
Contesting Candidate, as there is no question of
equality of votes between the Contesting Candidates
and a candidate whose Nomination Papers were
rejected and his name and symbol was not present
on the Ballot Paper. Thus, the definition of
“candidate” as given in Section 2 sub section (iv) of
the expression candidate is inapplicable to Section
41.
CA.384/2014.
29
(h)
In Chapter VI, which is pertaining to election
expenses, in Sections 48 and 49 (1), the expression
candidate is employed, yet in Section 49 (2) with
regard to the amount of election expenses, the term
“Contesting Candidate” is mentioned. Subsequently,
in sub section (3) yet again, the term “candidate” is
used with regard to receipts of election expenses.
However, by virtue of sub section (1) of Section 50,
the Contesting Candidates are required to file the
return of election expenses. It is evident that the
expression “candidate” in Sections 48 and 49 implies
a Contesting Candidate only. If the definition of the
term “candidate” as used in Section 2 sub section (iv)
is pressed into service an obvious anomaly would
result as a candidate whose Nomination Papers are
rejected would be required to maintain accounts of
election expenses and receipts thereof without any
legal necessity of filing the same.
An overview of the aforesaid provisions of law leaves little
room for doubt that the expression “candidate” does not in all
events and in each and every provision carry the meaning that
attributed to it in Section 2 sub section (iv) of ROPA, 1976 and
must necessarily be interpreted with reference to the context in
which it is employed in each and every provision so as to avoid
an anomaly or absurdity. The expression “candidate” must be
CA.384/2014.
30
construed after contextualizing the same with regard to the
subject of the provision, as is not only the settled rule of
construction but also the mandate of the opening lines of
Section 2 itself. The legal premises of the contentions of the
learned counsel for the Appellant to the contrary are not only in
conflict with the time honoured rules for interpretation but also
would result in obvious anomaly and render various provisions
meaningless, as is apparent from the examples cited above. It
also appears to be the scheme of the law that by and large in the
absence of clear and unequivocal statement to the contrary, in
the provisions pertaining to the electoral process subsequent to
the publication of the list of the Contesting Candidates and
printing of their names and symbols on the Ballot Papers, the
expression “candidate” occurring in any such provision would
tend to mean a Contesting Candidate and not a Candidate,
whose Nomination Papers have been rejected.
22.
The provisions of Section 52 of ROPA, 1976, which
pertain to the real matter in controversy involved in the instant
case, must necessarily be interpreted in the above backdrop.
23.
Section
52
(1)
of
ROPA,
1976,
reproduced
hereinabove, is couched in negative terms and enjoins that no
CA.384/2014.
31
election can be called into question except through an Election
Petition filed by a “candidate for the election” (referred to as
the Petitioner in Chapter VII). It needs to be ascertained
whether the expression “candidate” as occurring in Section
52(1) of ROPA, 1976, would include a candidate whose
Nomination Papers have been rejected or has otherwise
withdrawn or retired from the election. In this behalf, reference
may be made to Section 54 of ROPA, 1976, which reads as
follows:
“54. Parties to the petition.- The petitioner
shall join as respondents to his election
petition –
(a)
all contesting candidates; and
(b)
any other candidate against
whom any allegation of any corrupt
or illegal practice is made and shall
serve personally or by registered post
on each such respondent a copy of the
petition.”
A perusal of the aforesaid provision makes it clear and obvious
that only Contesting Candidates are per se necessary and proper
parties to an Election Petition. Other candidates can only be
impleaded, if there are allegations of corrupt or illegal practices
against them. It is difficult to accept that a candidate whose
Nomination Papers have been rejected and against whom there
CA.384/2014.
32
are no allegations of corrupt or illegal practices and who is
neither a necessary nor a proper party to the proceedings can
maintain an Election Petition. Section 66 of ROPA, 1976, in the
same Chapter i.e. Chapter VII, makes reference to the
expression “candidate”. The said provision for ease of reference
is reproduced herein-below:
“66. Recrimination where seat is claimed.-
(1) Where in an election petition a declaration
is claimed that a candidate other than the
returned candidate has been duly elected, the
returned candidate or any other party may
produce evidence to prove that the election of
such other candidate would have been
declared void had he been the returned
candidate and had a petition been presented
calling his election in question:
Provided that the returned candidate or
such other party as aforesaid shall not be
entitled to give such evidence unless he or it
has, within the fourteen days next following
the commencement of the trial, given notice to
the tribunal of his intention so to do and has
also deposited the security referred to in
section 52.
(2)
Every notice referred to in sub-section
(1) shall be accompanied by a statement of the
case, and all the provisions relating to the
contents, verification, trial and procedure of
an election petition, or to the security deposit
in respect of an election petition, shall apply
to such a statement as if it were an election
petition.”
24.
Yet again, the expression “candidate” would imply a
Contesting Candidate, as only such Contesting Candidate can
CA.384/2014.
33
be declared as a duly elected candidate, as it is a legal
impossibility for a candidate whose Nomination Papers have
been rejected to be declared an elected candidate by the learned
Election Tribunal.
25.
The orders that can possibly be passed by an
Election Tribunal are enumerated in Section 67 sub section (1)
(c) of ROPA, 1976, which reads as follows:
“67. Decision of the Tribunal.- (1) The
Tribunal may, upon the conclusion of the trial
of an election petition, make an order-
(a)
…………………………….……..
(b)
……………………………….…..
(c)
declaring the election of the
returned candidate to be void and
the petitioner or any other contesting
candidate to have been duly elected;”
Reference may also be made to Section 69 of ROPA, 1976, which
reads as under:
“69. Ground for declaring a person other
than a returned candidate elected.- The
Tribunal shall declare the election of the
returned candidate to be void and the
petitioner or any other contesting candidate to
have been duly elected, if it is so claimed by
the petitioner or any of the respondents and
the Tribunal is satisfied that the petitioner or
such other contesting candidate was entitled
to be declared elected.”
CA.384/2014.
34
In the aforesaid two provisions reproduced hereinabove, which
are part of Chapter VII of ROPA, 1976, the expression
“petitioner or any other contesting candidate” and the
expression “petitioner or such other contesting candidate” have
been employed. The expression “such” in legal parlance has a
peculiar and well settled connotation :
In West’s Legal Dictionary 2010 Edition
Such: Of that type, kindred, corresponding,
similar, of that sort, of that kind, comparable,
suchlike, analogous, twin, allied, matching.
In Words and Phrases Permanent Edition
Such: The word ‘such’ is defined as of the sort
or degree previously indicated or contextually
implied. People v. Heslen, Cal., 163 P.2d 21,
30.
Word ‘Such’ means of this or that kind,
character or measure: of the sort or degree
previously indicated or contextually implied.
Campbell v. Mueller, CCA Ohio, 159 F.2d 803,
806.
‘Such’ is defined by Webster as “having the
particular quality or character specified …”.
State v. Estep, 71 P. 857, 859, 66 Kan. 416.
Word ‘Such’ means … of the same kind or
class as something mentioned … People ex
rel. Miller v. Mobile & O. R. Co., 29 N.E.2d
604, 607, 374 I11. 376.
Black’s Law Dictionary Fifth Edition
Such: Of that kind, having particular quality
or character specified. Identical with, being
CA.384/2014.
35
the same as what has been mentioned. Alike,
similar, of the like kind.
(emphasis supplied)
26.
When examined in the above context, there can be
no manner of doubt that the expression “petitioner” as used in
Sections 66 and 69 of Chapter VII of ROPA, means a person
having identical attributes and characteristics of a contesting
candidate and therefore, means a validly nominated candidate,
who has neither withdrawn nor retired from the election
process. The said provisions pertaining to the relief, which may
be granted to a petitioner under Section 52 of ROPA, where
such expression “petitioner” has been defined to mean a
candidate. The intention of the Legislature appears to be clear
and unambiguous that the expressions “Candidate“ and
“Petitioner” are used in Chapter VII including Section 52
thereof is limited to “a contesting candidate” and does not
include a candidate whose Nomination Papers have been
rejected.
27.
If the expression “candidate” as used in Section 52 of
ROPA, 1976, is interpreted to include a person whose
Nomination Papers though filed were rejected and such person
is permitted or held entitled in law to maintain an Election
CA.384/2014.
36
Petition in terms thereof but to what end? It has been noticed
that the illegal rejection of the Nomination Papers is not a
ground available under Chapter VII of ROPA, 1976, for grant of
any relief. With reference to the aforesaid, this Court has
already held that the candidate whose Nomination Papers are
rejected, even illegally cannot seek any relief through an
Election Petition under Section 52 of ROPA, 1976, or other
provisions of Chapter VII thereof. Reference, in this behalf, may
be made to the judgment of Ghulam Mustafa Jatoi v. Additional
District & Sessions Judge/Returning Officer, N.A. 158,
Naushero Feroze and others (1994 SCMR 1299). The relevant
portion of the said judgment is reproduced hereunder:
“It may also be pertinent to mention
that subsection (1) of section 68 of the Act
gives the grounds on which the election of a
returned candidate can be declared as void.
The above subsection (1) of section 68 reads as
follows:--
“68. Ground for declaring election of
returned candidate void.—(1) The Tribunal
shall declare the election of the returned
candidate to be void if it is satisfied that—
(a)
the nomination of the returned
candidate was invalid; or
(b)
the returned candidate was
not, on the nomination day, qualified
for, or was disqualified from, being
elected as a member; or
CA.384/2014.
37
(c)
the election of the returned
candidate has been procured or
induced by any corrupt or illegal
practice; or
(d)
a corrupt or illegal practice has
been committed by the returned
candidate or his election agent or by
any
other
person
with
the
connivance of the candidate or his
election agent.”
20.
It may be noticed that the above
grounds do not admit the filing of a petition
by a candidate whose nomination papers
were illegally rejected and who could not
participate in the elections on that account.
…”
(emphasis supplied)
28.
It appears to have been held in clear and
unequivocal terms by this Court in the above quoted judgment
that a candidate whose Nomination Papers have been rejected
cannot maintain an Election Petition under Section 52 of ROPA,
1976.
29.
The
compulsion
to
interpret
the
expression
“candidate” in terms of Chapter VII with reference to the
context in which it has been employed and the subject to which
the provisions pertain is overwhelming. If the petitioner for
purposes of the said Chapter i.e. Chapter VII of ROPA, 1976,
were to include a candidate whose Nomination Papers have
been rejected, the result would be anomalous and lead to
CA.384/2014.
38
unexpected and unforeseen situations rendering the provisions
meaningless. There appears to be little doubt that only a validly
nominated candidate who has neither withdrawn nor retired
from the Elections i.e. a Contesting Candidate can file or
maintain an Election Petition under Section 52 of ROPA, 1976.
30.
Adverting now to the facts of the instant case, it
appears from the record that in the General Elections held in
2008, the Appellant was elected as a Member of the Provincial
Assembly of the Province of Balochistan. Subsequently, the
educational testimonials of the Appellant were scrutinized and
the ECP, in this behalf, came to a prima facie conclusion that the
Appellant had become a Member of the Provincial Assembly by
employing illegal and unfair means in as much as the
educational testimonials appended by the Appellant with his
Nomination Papers while contesting the Elections in 2008 were
fake and fictitious. Criminal proceedings, in this behalf, were
directed to be initiated against the Appellant. When the
Appellant submitted his Nomination Papers to contest the
General Elections held on 11th of May, 2013, his Nomination
Papers were rejected on the ground that he had filed fake and
fictitious educational testimonials while contesting the General
CA.384/2014.
39
Elections of 2008. Findings to this effect were returned by the
ECP after an inquiry, hence, the Appellant was held to be
disqualified in view of Article 63 of the Constitution of the
Islamic Republic of Pakistan, 1973. Such Order of rejection was
challenged unsuccessfully by the Appellant before the learned
Election Tribunal as well as the learned High Court of
Balochistan and eventually, the matter reached this Court
wherein some interim relief was granted with reference to one
of the rejected Nomination Papers filed by the Appellant. The
Appellant appears to have been permitted to contest the
Elections on the strength of the said interim Order. The Civil
Appeal No.444 of 2013 arising out of Civil Petition for Leave to
Appeal No.520 of 2013 wherein leave to appeal has been
granted vide Order dated 25.04.2013 referred to above, came up
for hearing before this Court on 06.11.2013, when the following
Order was passed:
“It has been informed by the learned
counsel for the appellant that the appellant
has
already
approached
the
Election
Commission for redressal of his grievance,
against the result of election held in the year
2008, therefore, in such view of the matter
instant appeal be disposed of with the
observation that no prejudice shall be caused
to the cases of either party pending before the
concerned forum.
CA.384/2014.
40
Dispose of accordingly.”
31.
A perusal of the afore-said Order reveals that the
withdrawal was without prejudice to the proceedings pending
before the ECP pertaining to the Elections of 2008 and not with
regard to the Elections of 2013. Even without examining and
adjudicating upon the contentions of the learned counsel of
Respondent No.1 with regard to the fact that Civil Petition for
Leave to Appeal No.521 of 2013 pertaining to the rejection of
one set of Nomination Papers had been withdrawn on
25.04.2013 and the interim relief granted did not permit the
Appellant to contest the Elections, there can be no manner of
doubt that on account of the withdrawal the aforesaid Order of
the Returning Officer, rejecting the Nomination Papers of the
Appellant for the General Elections of 2013, was not set aside
and attained finality. Consequently, the Appellant neither has
the status nor the locus standi of the Contesting Candidate,
hence, was not in law a “petitioner” entitled to challenge the
Elections in an Election Petition under Section 52 of ROPA,
1976, or seek any relief under any other provision of Chapter
VII of ROPA, 1976. The conclusions drawn by the learned
Election Tribunal, in this behalf, by way of the impugned
CA.384/2014.
41
judgment appear to be in accordance with law and no ground
warranting interference therewith is available to the Appellant.
32.
Consequently, this Civil Appeal, being without merit
is dismissed with no order as to cost.
Chief Justice
Judge
‘APPROVED FOR REPORTING’
Judge
Mahtab H. Sheikh/*
Announced on 02.03.2016 at Islamabad.
Judge
| {
"id": "C.A.384_2014.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE MIAN SAQIB NISAR
MR. JUSTICE GULZAR AHMED
MR. JUSTICE MAQBOOL BAQAR
Civil Appeal No.394 of 2014
(Against the judgment dated 4.2.2014 of the Election Tribunal,
Rawalpindi passed in E.P. No.187/2013/Rwp/04/0013)
Sardar Muhammad Naseem Khan
Appellant(s)
VERSUS
Returning Officer, PP-12, etc
Respondent(s)
For the Appellant(s)
: Mr. Muhammad Ilyas Sheikh, ASC
Syed Rifaqat Hussain Shah, AOR
For Respondent No.2
: Mr. Muhammad Aurangzeb Khan, ASC
Date of Hearing
: 22.04.2015
…
ORDER
MIAN SAQIB NISAR, J.- The appellant and respondent
No.2 (the respondent) contested the (General) election for PP-12, Rawalpindi.
Respondent is the returned candidate, whereas appellant is the runner
up, who filed an election petition challenging the election of the former.
An objection was raised by the respondent that such petition is not
duly verified and, therefore, is liable to be dismissed in terms of
provisions of Article 63 of the Representation of the People Act, 1976
(the Act). However, the objection was overruled by the learned Election
Tribunal holding that the petition is duly verified. Subsequently, in
furtherance to the above challenge the appellant moved an application
seeking amendment in the election petition so as to add two grounds
i.e. ‘h’ and ‘i’. The claim for seeking amendment(s) obviously was
founded on the plea that such grounds (amendments) are expedient and
Civil Appeal No.394 of 2014
- 2 -
imperative for the cause of the appellant. This request was allowed by
the Tribunal and two grounds, mentioned above, were added and an
amended petition was filed. The added grounds challenging the
election of the respondent read as under:-
“h.
That the respondent namely Mr Ejaz Khan Jazi has been declared
returned candidate on the basis of fake documents attached by him
while contesting the elections from PP-12 in the recent elections. It is
important to mention here that Mr. Ejaz Khan Jazi has not even
passed Intermediate. Prior to this, he contested elections in 2012
when the condition of BA was a pre-requisite. Thereafter he contested
zimni elections in 2008 and in 2009. Article 62 of the Constitution of
Islamic Republic of Pakistan 1973 fully applies/attracts to his case.
Likewise, Article 63 of the Constitution completely debars Mr. Ejaz
Khan Jazi to contest elections. He does not possess the qualification
required for a Member of Provincial Assembly, hence he was not
eligible at all to contest the elections but to my utter surprise, he has
been declared as a returned candidate. He is thus liable to be
disqualified. Detail of letters issued to the respondent for production
of Intermediate certificate, BA and others degrees is as under:-
(1)
Notification No.Admin/94-835 dated 6.7.1994 issued
to Mr. Ejaz Khan Jazi by the Assistant Registrar that
admission of the student was cancelled as he had
sought admission on the basis of a fake F.A. Marks
sheet in M.Sc Ist Semester Spring 1992.
(2)
Letter No.NIPS-D-391 dated 20.4.1994 to appear
before Dr. G.A. Murtaza, Professor, for inquiry.
(3)
Letter No.F.9-6/HSSC/SEC/93/9848 dated 13.3.1993
for verification of marks sheet of respondent.
(4)
Letter No.F.7-1/92 dated January 1992 issued to the
respondent for production of educational documents.
(2)
In the light of above narration of facts, respondent No.2 was
not eligible: at all to contest the elections from PP-12 but
even then he has been declared as a returned candidate.
Hence he is liable to be disqualified outrightly.
Civil Appeal No.394 of 2014
- 3 -
i.
That respondent No.2 has not fulfilled the correct and exact
statement of accounts about the expenses e.g. in the
gowshwara he has shown the expenses of only petrol and
load (sic) speaker. Likewise respondent No.2 has concealed
the expenses incurred on posters, stickers, banners and his
central office.
For getting voter list from the Election Commission for PP-
12, Rs.14,000/- or 15,000/- are to be paid as official fee but
respondent No.2 did not pay the said amount.
Respondent No.2 has also not shown the expenses incurred
on different polling stations, booths, distribution of voter list
and other expenses of stationary. This act of respondent No.2
is against the election laws and is in violation of Election
Rules.”
It is quite clear from the above that the amendments are material and
independent in nature and by themselves are a substantial challenge
to the election of the respondent, but the amended election petition
was neither duly verified by the appellant in terms of Order 6 Rule 15,
CPC read with Section 55(3) of the Act nor was got attested from the
Oath Commissioner. Therefore an objection was raised qua non-
verification of election petition by the respondent, who sought its
summary dismissal per Section 63 supra. This time the learned
Election Tribunal held that as the amended petition was not duly
verified, it came within the mischief of the law supra and accordingly
dismissed the petition vide the impugned judgment. Hence this
appeal.
2.
Learned counsel for the appellant has argued that the
amended election petition, in fact, was part and parcel of the original
election petition and was an addition thereto, thus in law it (the amended
petition) has merged in the original petition; and as the original petition
Civil Appeal No.394 of 2014
- 4 -
was verified and earlier held by the Tribunal to be so in accordance
with law, therefore regardless of whether the amended petition was
verified or not, the defect shall not fall within the purview of Section
55(3) ibid. It is also submitted, that an amended (election) petition
means that something is being added to a thing which is already in
existence and as election petition of the appellant was already in
existence and contained proper verification, non verification of the
amended petition shall not attract any penal consequences (of Section
55(3) and Section 63 ibid). Lastly, it is urged that at best the learned
Tribunal could strike out the grounds ‘h’ and ‘i’ which were brought by
way of amendment in the original election petition and the original
petition should have been tried and decided on its own merits.
3.
Heard. In election disputes, the petition (the election petition)
and the reply thereto are the foundational documents, which are of
utmost importance and significance. And undoubtedly for all intents
and purposes these are akin to the pleadings of the parties in a purely
civil litigation, which (pleadings) are structural in nature, whereupon the
edifice of the case is rested. The election petition lays down the
foundation of the claim of an election petitioner, whereas the written
reply thereto of the respondent (returned candidate) is the underpinning of
his defence. The importance of the pleadings and its legal value and
significance can be evaluated and gauged from the fact that it is
primarily on the basis thereupon that the issues are framed; though
the pleadings by themselves are not the evidence of the case, the
parties to a litigation have to lead the evidence strictly in line and in
consonance thereof to prove their respective pleas. In other words, a
party is bound by the averments made in its pleadings and is also
precluded from leading evidence except precisely in terms thereof. A
Civil Appeal No.394 of 2014
- 5 -
party cannot travel beyond the scope of its pleadings. It may be
pertinent to mention here, that even if some evidence has been led by
a party, which is beyond the scope of its pleadings, the Court shall
exclude and ignore such evidence from consideration. Thus, it is clear
that if any party to a lis wants to prove or disprove a case and some
material has to be brought on the record as part of the evidence, which
(evidence) otherwise is not covered by the pleadings, it shall be the duty
of such party to first seek amendment of its pleadings (note:- for the support
of the opinion, see judgments1).
4.
Attending to the question of whether the amended
pleading shall merge into the original pleading or otherwise, we have
not been able to lay our hands on any case law from our jurisdiction,
however
some
jurisprudence
has
been
developed
in
foreign
jurisdictions, such as in the English case of Warner Vs. Sampson and
another (1959) 2 WLR 109 wherein the Court of Appeal has
propounded:-“once pleadings are amended, that which stood before amendment is no
longer material before the Court”. Per a judgment of Allahbad High Court
reported as Brij Kishore Vs. Smt. Mushtari Khatoon (AIR 1976
Allahabad 399) it has been concluded:-“the amended pleading alone should
be considered and no reference ought to be made to the original pleadings while
deciding an issue”. Another judgment from the same jurisdiction is B.
Parbhu Narain Singh and others Vs. B. Jitendra Mohan Singh and
another (AIR (35) 1948 Oudh 307) in which it has been held:-“Court
must take the pleadings in the case as they stand and leave out of consideration the
pleadings as they stood before the amendment”.
5.
From the ratio of the above case law and from our own
understanding of law, we are of the considered view that principle of
1 Muhammad Akram and another Versus Mst. Farida Bibi and others (2007 SCMR 1719), Aurangzeb through L.Rs and
others Versus Muhammad Jaffar and another (2007 SCMR 236), Sh. Fateh Muhammad Versus Muhammad Adil and
others (PLD 2007 SC 460), Binyameen and 3 others Versus Chaudhry Hakim and another (1996 SCMR 336)
Civil Appeal No.394 of 2014
- 6 -
merger as put forth by the learned counsel is neither relevant nor shall
apply in this situation, rather it is the principle of substitution which
shall be attracted. For the determination and resolution of issues in
disputes before the Court, it is the amended pleading which shall be
taken into consideration and not the former pleadings. It is on the
basis of the amended pleadings that the issues shall be framed; and if
already so framed, shall be modified to either score off any existing
issue or to add the issues arising out of the amended pleadings (note:-
however in the cases where there is any unauthorized addition in the amended
pleadings for scoring it off or for the purposes of confronting someone within the
earlier pleadings as a previous statement, the earlier pleadings may have some
relevance). The amended petition in this case for all intents and
purposes shall be a final, independent and separate document (election
petition) which had to be verified per the mandate of law. It is conceded
by the learned counsel for the appellant, when confronted with the fact
that the amended election petition filed by the appellant has not been
verified in accordance with law, that if the original election petition is
ignored from consideration, the amended petition will be hit by the
provisions of Sections 55(3) and 63 of the Act. Obviously on account of
the above, the impugned decision of the Tribunal is unexceptionable.
As regards the other argument of the learned counsel that
grounds ‘h’ and ‘i’, which were part of the amended petition, should be
struck off or ignored from consideration and the Election Petition
should be tried per its original contents, suffice it to say that, as has
been opined above, once the original petition was replaced and
substituted by the amended petition, the earlier could not be resorted
to and it is not left to the choice of the appellant to fall back on the
original petition and have the two grounds deleted for the resolution of
Civil Appeal No.394 of 2014
- 7 -
the election dispute agitated by the appellant. Besides, the striking off
of the two grounds mentioned above was not the case of the appellant
before the Election Tribunal and such a prayer even does not fall
within the purview of Order 6 Rule 16 of the Code of Civil Procedure,
which stipulates the striking off the pleadings in the following terms:-
“Striking out pleadings.---The court may at any stage of the
proceedings order to be struck out or amended any matter
in any pleading which may be unnecessary or scandalous
or which may tend to prejudice, embarrass or delay the fair
trial of the suit.”
It may be pertinent to mention here, that per Section 64 of the Act,
Code of Civil Procedure is attracted and no case has been made out by
the appellant in terms of the provisions ibid (for striking off the pleadings). It
may further be added that even in the present appeal, the plea that
grounds ‘h’ and ‘i’ to the amended election petition must be scored out
has not been set out in particular, therefore such plea cannot be
allowed. In light of the above, no case for interference has been made
out. Dismissed accordingly.
JUDGE
JUDGE
Islamabad, the
JUDGE
22nd April, 2015
Approved For Reporting
Ghulam Raza/*
| {
"id": "C.A.394_2014.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
PRESENT:
Mr. Justice Mushir Alam
Mr. Justice Qazi Faez Isa
Mr. Justice Qazi Muhammad Amin Ahmed
Civil Appeal No. 396 of 2018
(Against the order dated 19.01.2017
passed by Lahore High Court Rawalpindi
Bench in C.R. No.199 of 2008)
Fazal Ellahi deceased through his legal heirs
…Appellant(s)
Versus
Mst. Zainab Bi
…Respondent(s)
For the Appellant(s):
Syed Moazam Ali Rizvi, ASC
Syed Rifaqat Hussain Shah, AOR
For the Respondent(s):
Syed Hamid Ali Shah Bokhari, ASC
Mr. Tariq Aziz, AOR
Date of hearing:
24.09.2019
JUDGMENT
Qazi Muhammad Amin Ahmed, J. Mst. Zainab Bi,
respondent herein, had been non-suited by a learned Civil Judge,
at Kahuta vide judgment and decree dated 17.5.2006; praying for a
declaration, she disputed vires of mutation No.596 dated
14.8.1970, purportedly entered in consequence of a sale effected
by her father, Alif, incapacitated by paralysis, in favour of
appellants’ predecessor-in-interest; alleging fraud, she prayed for
consequential reliefs. A learned Additional District Judge vide
judgment and decree dated 22.5.2008, reversed the findings
returned by the learned Trial Court and decreed the suit, a
decision subsequently affirmed by a learned Judge-in-Chambers of
Lahore High Court Rawalpindi Bench Rawalpindi, being assailed,
by leave of the Court, on a variety of grounds, ranging from a duly
Civil Appeal No. 396 of 2018
2
mutated valid transaction, expiry of period of limitation as well as
alleged knowledge of the sale, attributed to the respondent on the
basis of a suit filed by her for possession through preemption qua
the same chunk of land. Controverted by the respondent on the
ground that there was no occasion for the revenue staff to enter
the impugned mutation on a national holiday, that too in the
absence of the vendor as well as two respectable persons to
confirm his identity before completion of the process. The bottom
line is that a vulnerable lady in a rural neighborhood was
surreptitiously duped and that she recoursed the law at the first
available opportunity.
2.
Heard. Record Perused.
3.
Even if entry of mutation on 14th of August, a national
holiday, is unsuspectingly ignored, there are many other intriguing
aspects, surrounding the controversy that cannot be possibly
overlooked. It is admitted, at all hands, that Alif, respondent’s
predecessor-in-interest was a physically incapacitated person and
as such he neither attended the proceedings nor anyone was
deputed to confirm/verify his assent. There is no entry in the
Roznamcha as contemplated by Section 42 of the West Pakistan
Land Revenue Act, 1967 (XVII of 1967), inter alia, providing
identification
by
two
respectable
persons
to
confirm
the
transaction; non compliance with the procedure, though directory,
nonetheless, puts us on caution. With a suspect entry, entire
transaction is structured upon a self serving statement pointed
upon the legitimate proprietary rights of a hapless female in a rural
neighbourhood. It is by now well settled that a mutation by itself
does not create title unless demonstrated to be backed by a valid
transaction. A sale without a vendor or by his duly authorized
attorney/agent is a farce. Appellants’ emphatic stress on the period
of limitation is beside the mark inasmuch as their reference to the
institution of a suit for possession through preemption by no other
than
the
respondent
herself
is
a
far
cry
as
well,
as nothing has been placed on the record throughout the
proceedings before the Courts below to even obliquely suggest that
the respondent ever instituted any suit for the same piece of land.
Civil Appeal No. 396 of 2018
3
Documents placed, for the first time before this Court, are also
devoid of relevant details. Even otherwise having found the
impugned transaction with the strappings of deceit, we are not
impressed by the argument. Fraud vitiates most solemn
proceedings and thus period of limitation would not embargo a
justiciable claim directed against fraud. View taken by the
Appellate Court, affirmed by the High Court, being well within the
remit of law, calls for no interference. Appeal is dismissed.
Judge
Judge
Judge
Islamabad
24.09.2019
Not approved for reporting.
Ghulam Raza/-
| {
"id": "C.A.396_2018.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE TASSADUQ HUSSAIN JILLANI
MR. JUSTICE NASIR-UL-MULK
MR. JUSTICE ASIF SAEED KHAN KHOSA
MR. JUSTICE SARMAD JALAL OSMANY
MR. JUSTICE AMIR HANI MUSLIM
CIVIL APPEALS NO. 39/2010, 1150/2010, 1162/2010, 142-
K/2009, 177-K/2010, 178-K/2010, 228-K/2010, 57-K/2011,
63-K/2011, 65-K/2011, 66-K/2011, 83-K/2011, 91-K/2011,
135-K/2011, 136-K/2011, 137-K/2011, 188-K/2011, 232-
K/2011, 75-K/2012 AND 82-K/2012
CIVIL APPEAL NO. 39/2010
(On
appeal
from
the
judgment
dated
18.5.2009 passed by the High Court of
Sindh, Karachi in Constitution Petition D-
1933/2008)
Pakistan Defence Officer Housing Authority and others
… Appellants
VERSUS
Lt. Col. Syed Jawaid Ahmed
… Respondent
For the Appellants:
Mr. Khalid Javed, ASC
For the Respondent:
Mr. Shoaib Shaheen, ASC a/w respondent
in person
CIVIL APPEAL NO. 1150/2010
(On
appeal
from
the
judgment
dated
26.11.2010 passed by the High Court of
Sindh, Karachi in Constitution Petition No. D-
1713/2006)
Pakistan International Airline through its Chairman
… Appellant
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
2
VERSUS
S.M. Nawaz and others
… Respondents
For the Appellant:
Mr. Khalid Javed, ASC
Sardar Muhammad Aslam, ASC
Mr. Arshad Ali Ch, AOR
For the Respondents:
In person
CIVIL APPEAL NO. 1162/2012
(On
appeal
from
the
judgment
dated
24.9.2012 passed by the High Court of
Sindh, Karachi in Constitution Petition No.
D-141/2011)
M/s Pakistan through itst Chairman / CEO, Karachi
… Appellant
VERSUS
Muhammad Aslam Chaudhry and others
… Respondents
For the Appellant:
Mr. Sanaullah Noor Ghouri, ASC
Mr. Arshad Ali Chaudhry, AOR
For Respondent (1):
In person
CIVIL APPEAL NO. 142-K/2009
(On appeal from the judgment dated 17.4.2009
passed by the High Court of Sindh, Karachi in
C.P. No. D-1690/2007)
N.E.D. University of Engineering and Technology and others
… Appellants
VERSUS
Hafeezullah Khawaja
… Respondent
For the Appellants:
Mr. Nadeem Azhar Siddiqui, ASC
Mr. Khalid Javed, ASC
For the Respondent:
In person
CIVIL APPEAL NO. 177-K/2010
(On appeal from the judgment dated 3.6.2010
passed by the High Court of Sindh, Karachi in
CPs
D-2705/2009,
D-1768/2006,
D-
1771/2006, D-1871/2006, D-1872/2006, D-
1894/2006,
D-1895-,
D-1896/2006,
D-
1897/2006, D-2018/2006, D-2031/2006, D-
1918/2006,
D-405/2006,
D-563/2007,
D-
574/2007,
D-795/2007,
D-871/2007,
D-
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
3
1320/2007, D-1331/2007, D-1643/2007, D-
1648/2007, D-1951/2007 & D-2464/2007)
M/s House Building Finance Corporation and another
… Appellants
VERSUS
Shahid Mehmood Usmani
… Respondent
For the Appellants:
Mr. M.A. Rehman Qureshi, ASC
For the Respondent:
N.R.
CIVIL APPEAL NO. 178-K/2010
(On appeal from the judgment dated 3.6.2010 passed by
the High Court of Sindh, Karachi in CPs D-2705/2009,
D-1768/2006,
D-1771/2006,
D-1871/2006,
D-
1872/2006, D-1894/2006, D-1895-, D-1896/2006, D-
1897/2006,
D-2018/2006,
D-2031/2006,
D-
1918/2006, D-405/2006, D-563/2007, D-574/2007, D-
795/2007, D-871/2007, D-1320/2007, D-1331/2007,
D-1643/2007,
D-1648/2007,
D-1951/2007
&
D-
2464/2007)
Chairman Pakistan Steel Mills and others
… Appellants
VERSUS
Sirjauddin Ghori
… Respondent
For the Appellants:
Mr. M.G. Dastagir, ASC
For the Respondent:
N.R.
CIVIL APPEAL NO. 228-K/2010
(On appeal from the judgment dated 30.9.2010
passed by the High Court of Sindh, Karachi in
Constitution Petition No. 1549/2010)
Pakistan International Airline and another
… Appellants
VERSUS
Hamayun Raja
… Respondent
For the Appellants:
Mr. Munib Ahmed Khan, ASC
Mr. Arshad Ali Chaudhry, AOR
For the Respondent:
N.R.
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
4
CIVIL APPEAL NO. 57-K/2011
(On
appeal
from
the
judgment
dated
8.1.2010 passed by the High Court of Sindh,
Karachi in CP D-2122/2006)
Pakistan Steel Mill through its Chairman
… Appellant
VERSUS
Shakir Ali Khan and another
… Respondents
For the Appellant:
Mr. Nadeem Azhar Siddiqui, ASC
For the Respondents:
N.R.
CIVIL APPEAL NO. 63-K/2011
(On
appeal
from
the
judgment
dated
28.11.2010 passed by the High Court of
Sindh, Karachi in Constitution Petition No. D-
1489/2007)
Pakistan Steel Mills Corporation (Pvt) Ltd
… Appellant
VERSUS
Muhammad Rafiq Memon and others
… Respondents
For the Appellant:
Mr. Munir Ahmed Khan, ASC
For the Respondents:
In person
CIVIL APPEAL NO. 65-K/2011
(On
appeal
from
the
judgment
dated
20.12.2010 passed by the High Court of
Sindh, Karachi in Constitution Petition No. D-
1871/2006)
Pakistan Steel Mills Corporation (Pvt) Ltd
… Appellant
VERSUS
Noor Muhammad Awan and others
… Respondents
For the Appellant:
Mr. Munib Ahmed Khan, ASC
For the Respondents:
N.R.
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
5
CIVIL APPEAL NO. 66-K/2011
(On
appeal
from
the
judgment
dated
20.12.2010 passed by the High Court of
Sindh, Karachi in Constitution Petition No. D-
1872/2006)
Pakistan Steel Mills Corporation (Pvt) Ltd
… Appellant
VERSUS
Noor Muhammad Awan and others
… Respondents
For the Appellant:
Mr. Munib Ahmed Khan, ASC
For the Respondent (1): In person
CIVIL APPEAL NO. 83-K/2011
(On appeal from the judgment dated 5.3.2011
passed by the High Court of Sindh, Karachi in
Constitution Petition No. D-574/2007)
Port Bin Qasim Authority through its Chairman and another
… Appellants
VERSUS
Irshad Ahmed and another
… Respondents
For the Appellants:
Mr. M.G. Dastagir, ASC
For the Respondents:
Mr. Muhammad Aqil Awan, Sr. ASC
CIVIL APPEAL NO. 91-K/2011
(On
appeal
from
the
judgment
dated
8.10.2010 passed by the High Court of Sindh,
Karachi
in
Constitution
Petition
No.
871/2007)
Pakistan Steel Mills Corporation (Pvt) Ltd
… Appellant
VERSUS
Muhammad Sadiq and another
… Respondents
For the Appellant:
Mr. M.G. Dastagir, ASC
For the Respondent (1): In person
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
6
CIVIL APPEAL NO. 135-K/2011
(On appeal from the judgment dated 2.12.2010
passed by the High Court of Sindh, Karachi in
Constitution Petition No. D-1771/2006)
Pakistan Steel Mills Corporation (Pvt) Ltd
… Appellant
VERSUS
Arshad Nadeem
… Respondent
For the Appellant:
Mr. Shaukat Ali Sh, ASC
For the Respondent:
Syed Amjad Hussain, ASC
CIVIL APPEAL NO. 136-K/2011
(On appeal from the judgment dated 31.3.2011
passed by the High Court of Sindh, Karachi in
C.P. No. D-2498/2010)
Pakistan Steel Mills Corporation (Pvt) Ltd through its Chairman
… Appellant
VERSUS
Abid Hussain and another
… Respondents
For the Appellant:
Mr. Muhammad Ikram Siddiqui, ASC
For the Respondents:
N.R.
CIVIL APPEAL NO. 137-K/2011
(On appeal from the judgment dated 6.4.2011
passed by the High Court of Sindh, Karachi in
C.P. No. D-1770/2006)
Pakistan Steel Mills Corporation (Pvt) Ltd
… Appellant
VERSUS
Qazi Ghulam Rehmani and another
… Respondents
For the Appellant:
Mr. Muhammad Ikram Siddiqui, ASC
For the Respondents:
Syed Amjad Hussain, ASC
CIVIL APPEAL NO. 188-K/2011
(On
appeal
from
the
judgment
dated
10.5.2011 passed by the High Court of Sindh,
Karachi in CP 3316/2010)
M/s Pakistan State Oil Company Ltd and others
… Appellants
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
7
VERSUS
Imran Hassan Khan and another
… Respondents
For the Appellants:
Mr. Muhammad Humayun, ASC
For the Respondents:
Mr. Muhammad Aqil Awan, Sr. ASC
CIVIL APPEAL NO. 232-K/2011
(On appeal from the judgment dated 16.5.2011
passed by the High Court of Sindh, Karachi in
Constitution Petition No. D-1643/2007)
Pakistan Steel Mills Corporation (Pvt) Ltd
… Appellant
VERSUS
Mirza Hassan Ali
… Respondent
For the Appellant:
Mr. Shaukat Ali Sh, ASC
For the Respondent:
N.R.
CIVIL APPEAL NO. 75-K/2012
(On
appeal
from
the
judgment
dated
19.7.2012 passed by the High Court of Sindh,
Larkana in Constitution Petition No. D-
381/2012)
S.M.E. Bank Ltd
… Appellant
VERSUS
Akbar Ali Abbasi and another
… Respondents
For the Appellant:
Mr. Agha Faqeer Muhammad, ASC
For the Respondent (1): In person
CIVIL APPEAL NO. 82-K/2012
(On
appeal
from
the
judgment
dated
18.4.2012 passed by the High Court of Sindh,
Karachi in C.P. No. D-1667/2010)
Pakistan Steel Mills Corporation (Pvt) Ltd
… Appellant
VERSUS
Miss Shakeela Naz
… Respondent
For the Appellant:
Mr. Sanaullah Noor Ghori, ASC
For the Respondent:
N.R.
Date of Hearing:
02.05.2013
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
8
JUDGMENT
TASSADUQ HUSSAIN JILLANI, J.- This judgment
shall dispose of the above titled appeals as the questions of law
raised are common.
BRIEF FACTS IN APPEALS:
2.
In Civil Appeal No. 39/2010 the respondent was
serving as Vice Principal of Pakistan Defence Officers Housing
Authority, Karachi. He was proceeded against departmentally inter
alia on the ground that he violated service discipline by filing a
constitution petition (bearing No. 1276 of 2008) seeking a direction
that he may be ordered to be appointed as Principal. The enquiry
culminated in the award of major penalty of termination of service.
The High Court allowed the constitution petition on the ground
that the order passed was not sustainable as the procedure
prescribed in Removal from Service (Special Powers) Ordinance
2000 [hereinafter referred to as the ‘Ordinance 2000’] had not been
followed.
3.
In Civil Appeal Nos. 177-K/2010, 178-K/2010, 65-
K/2011, 66-K/2011, 83-K/2011, 91-K/2011, 135-K/2011 & 232-
K/2011 the respondents are employees of various organizations
which are admittedly under the control of Federal Government.
Those organizations included House Building Finance Corporation,
Port Qasim Authority, Pakistan Steel Mills Corporation (Pvt) Ltd,
S.M.E. Bank and Pakistan International Airlines Corporation.
Respondents were proceeded against under the Ordinance, 2000
and awarded major penalties. Some of them initially approached
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
9
the Federal Service Tribunal and their appeals before the Tribunal
were held to have abated on account of judgment of this Court in
Muhammad Mubeen-us-Salam Vs. Federation of Pakistan and
others (PLD 2006 SC 602). They filed Constitution petitions and
relying on a judgment of this Court in Civil Aviation Authority
through its Director General Vs. Javed Ahmed and another (2009
SCMR 956), the High Court of Sindh held that if an employee is
proceeded under the Ordinance, 2000, the High Court is
competent to consider as to whether the action taken was in
accordance with law or not. A Division Bench of the High Court
having
decided
the
question
of
jurisdiction
directed
the
Constitution petitions to be listed before the appropriate benches.
4.
In Civil Appeal No. 142-K/2009 the respondent was an
employee of the NED University of Engineering & Technology,
Karachi.
He
was
proceeded
against
departmentally
which
culminated in the award of major penalty of termination from
service. The court relied on Tanveer Hussain Vs. Divisional
Superintendent, Pakistan Railways etc (PLJ 2006 SC 1092) &
Federation of Pakistan through D.G. Military Lands and
Cantonment Rawalpindi and others Vs. Syed Ibrahim Shah and
others (2007 PLC (C.S) 1288) to hold that the Ordinance, 2000
being general law has overriding effect and the proceedings held
under the University Statute of 1990 could not be sustained. The
University, however, was given the option to proceed de novo
against the respondent under the Ordinance 2000.
5.
In Civil Appeal No. 1150/2010 respondent was
Manager Accounts in Pakistan International Airlines Corporation.
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
10
He was awarded major penalty of compulsory retirement. He
challenged the said order before the Service Tribunal which partly
allowed the appeal and altered the major penalty to minor penalty
of withholding of increment for three years without cumulative
effect. However, on account of the judgment in Mubeen ul Islam’s
case (PLD 2006 SC 602), appeal before the Service Tribunal stands
abated whereafter the respondent filed a constitution petition
which was allowed by the High Court and respondent was directed
to be reinstated but the Court observed that it would be open for
the competent authority to reconsider the matter on the basis of
the report of the Enquiry Committee after issuing respondent a
show cause notice.
6.
In Civil Appeal No. 228-K/2010 respondent was
employed as Baggage Attendant / Loader in the Pakistan
International Airlines, Karachi Airport. He was proceeded against
under section 3 of the Ordinance 2000 and was awarded major
penalty of dismissal from service. The High Court allowed the writ
petition and directed his reinstatement as it was of the view that
no eyewitness appeared during enquiry and the enquiry stood
vitiated on account of the enquiry officer’s bias.
7.
In Civil Appeal No. 57-K/2011 respondent was an
employee of the Pakistan Steel Mills. He was proceeded against on
charges of misconduct, which culminated in the award of major
penalty of removal from service. The learned High Court allowed
the Constitution petition and converted the penalty of removal
from service into compulsory retirement as it found that the
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
11
penalty awarded was not proportionate to the charge. He was also
held entitled to the beneifts of retirement.
8.
In Civil Appeals Nos. 63-K/2011, 136-K/2011, 137-
K/2011, and 82-K/2012, the respondents – writ petitioners were
employees of the Pakistan Steel Mills Corporation. They were
proceeded against departmentally and awarded various penalties.
The Constitution petitions were disposed of inter alia holding that
those Constitution petitions were maintainale as respondents had
been removed under the Ordinance, 2000; that the charges levelled
against them could not be proved and that the penalties awarded
were not sustainable.
9.
In Civil Appeal No. 188-K/2011 respondent was an
employee in the Pakistan State Oil. He was proceeded against
departmentally in terms of the Ordinance, 2000 and awarded
major penalty of dismissal from service. However, the learned High
Court allowed the Constitution petition inter alia on the ground
that the charges had not been established during inquiry and he
was directed to be reinstated with all the consequential back-
benefits.
10.
In Civil Appeal No. 1162/2012 respondent was an
employee of the Pakistan Steel Mills. He was proceeded against on
charges of misconduct. The Constitution petition was allowed
mainly on the ground that it was a case of no evidence and the
allegations levelled had not been established.
11.
In Civil Appeal No. 75-K/2012, respondent was an
employee of the S.M.E. Bank. He was proceeded against under the
Ordinance 2000 and awarded major penalty of termination of his
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
12
service vide order dated 1.12.2000. The said order was however
withdrawn by the competent authority; he was reinstated but later
onfresh enquiry was held which culminated in the award of the
same major penalty of dismissal from service vide order dated
12.12.2001. He challenged the order in appeal before the Service
Tribunal which was allowed vide order dated 19.3.2010. However
the said order was challenged before this Court which set aside the
order of the Service Tribunal vide judgment dated 11.6.2010.
Meanwhile, respondent filed a representation before the Secretary
Finance who vide order dated 2.12.2011 allowed the said
representation and finding that he had been condemned unheard,
reinstated him and left the question of payment of back benefits to
a Committee constituted by the President of the Bank. The said
Committee, however, did not grant him back benefits whereafter he
approached the High Court in constitution petition which was
allowed inter alia on the ground that there was no evidence on
record that he was gainfully employed and merely because he had
invested some money in defense certificates does not disentitle him
to back benefits.
Gist of the Arguments:
12.
In support of Civil Appeal No. 39/2010 learned
counsel for the appellants Mr. Khalid Javed, ASC submitted that
the learned High Court of Sindh has failed to appreciate that the
service of the respondent was neither regulated by any law nor
statutory rules of service and the petition under Article 199 of the
Constitution was not maintainable; that the learned High Court
has failed to consider that the termination order dated 9.9.2008 of
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
13
the respondent was a ‘termination simplicitor’ and there being no
stigma
attached
the
petition
for
reinstatement
was
not
maintainable; that the learned Court fell in error in not
appreciating that the Ordinance, 2000, did not provide substantive
rights to employees but only laid down procedure for taking action
against them for any act or omission which may fall within the
mischief of law and that the service of the respondent was being
regulated by regulations which were non-statutory and therefore,
the Constitution petition was not maintainable.
13.
In support of the submissions made, learned counsel
relied on Pakistan International Airline Corporation Vs. Tanweer-
ur-Rehman (PLD 2010 SC 676 (relevant paras 19, 23 25),
Pakistan Telecommunication Co. Ltd Vs. Iqbal Nasir (PLD 2011 SC
132), R.T.H. Janjua Vs. National Shipping Corporation (PLD 1974
SC 146), Secretary, East Pakistan Industrial Development
Corporation Vs. Md. Serajul Haque (1970 SCMR 398), Pakistan
International Airlines Corporation Vs. Shahabuddin and others
(1993 PLC (CS) 1), Raziuddin Vs. PIA Corporation (PLD 1992 SC
531), Muhammad Yusuf Shah Vs. Pakistan International Airlines
Corporation (PLD 1981 SC 224), Shafaullah Vs. Saif ur Rehman
(PLD 1991 SC 1106), Pakistan Red Crescent Society Vs. Nazir
Gillani (PLD 2005 SC 806).
14.
Learned counsel for the appellants in all the remaining
appeals adopted the arguments of learned counsel for the
appellant in Civil Appeal No. 39/2010.
15.
Learned counsel for the respondents in Civil Appeal
Nos. 188-K/2011 and 83-K/2011 M/s Muhammad Humayun, ASC
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
14
and Muhammad Aqil Awan, Sr. ASC defended the impugned
judgments of the learned High Court as according to them the
Constitution petitions were maintainable because the Ordinance,
2000 had an overriding effect and any violation thereof was
amenable to writ jurisdiction of the High Court. They added that
after promulgation of Ordinance 2000, there was a statutory
intervention and the respondents who were aggrieved of the
violation of the said statute could invoke the jurisdiction of the
High Court under Article 199 of the Constitution.
16.
In support of the submissions made, learned counsel
relied on I.G. HQ Frontier Corpos and others Vs. Ghulam Hussain
etc (2004 PLC (CS) 1187 at page 1199), Daud Shah and another
Vs. Pakistan Water and Power Development Authority and others
(2007 PLC (CS) 281 at page 284-F para), Federation of Pakistan Vs.
Syed Ibrahim Shah and others (2007 PLC (CS) 1288 at 1290(b)),
Tanveer Hussain Vs. Divisional Superintendent (PLJ 2006 SC 1092
at 1095-A para 5-6), Azizullah Memon Vs. Province of Sindh (2007
SCMR 229 at 231), Evacuee Trust Property Board Vs Muhammad
Nawaz (1993 SCMR 1275 at 1277), Muhammad Zubair Ikram Vs.
Aithison College, Lahore through its Principal (NLR 2000 Civil 519
at 530), Aitchison College Vs. Muhammad Zubair (PLD 2002 SC
326 at 341), Managing Director, Ittehad Chemical Vs. Musthaq
Ahmed (NLR 1997 Service 119), Pakistan International Airlines Vs.
Nasir Jamal Malik (2001 SCMR 934 at 943 and 944-F), Principal
Cadet College, Kohat Vs. Muhammad Shoab (PLD 1984 SC 170 at
176-B),
Muhammad
Ashraf
Vs.
Director
General,
Multan
Development Authority etc (2000 PLC (CS) 796 at 801-C),
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
15
Muhammd Dawood Vs. Federation of Pakistan and others (2007
PLC (CS) 1046), Civil Aviation Authority Vs. Javed Ahmed (2009
SCMR 956) and (2010 PLC (CS) 1360 at 1375).
17.
Leave was granted by this Court (In Civil Appeal No.
1162 of 2012) against the judgment of the High Court in following
terms:-
4. We have heard the learned Advocate Supreme
Court for the petitioner and learned Deputy
Attorney-General, the latter relied upon the
judgment in the case of Civil Aviation Authority v.
Javed Ahmad (2009 SCMR 956) and stated that
in such like cases when a person has been
dismissed under the Ordinance of 2000, he can
invoke the jurisdiction of the High Court as he
cannot be left without any remedy. He relied
upon following paragraph from the judgment in
the case of Javed Ahmed (supra):--
"8. Needless to mention here that FBR
through Circular No.7 dated l9th July,
2008
clarified
that
scheme
is
applicable
to
all
undisclosed
assets/income which somehow or the
other could not be disclosed and
remained unexplained and that cases
are
pending
in
appeal
or
raised/detected by the department
would be dealt under normal law and
not
under
specific
provisions
of
scheme. The second deviation took
place when the FBR issued Circular
No.8 of 2008 whereby the scheme was
restricted so as to exclude pending
cases before the department, appellate
authority or any Court, thus, the state
of law was changed. We are of the
view that amendment brought through
the referred circular is of substantive
nature thereby restricting the scope of
the original scheme and the state of
law stood changed from the said date
effecting the right and liabilities of
those who have acted upon the
scheme in good faith under its original
scope. Therefore, Circular No.8 of 2008
cannot
apply
retrospectively
and
show-cause notices stand vacated.
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
16
5. It is pertinent to mention here that besides the
above judgment, in another case i.e. Hyderabad
Electric Supply Company v. Mushtaq Ali Brohi
(2010 PSC 1392), this Court has held that as the
services of the respondent were not governed by
the statutory rules, therefore, the High Court had
no jurisdiction to entertain the petition under
Article 199 of the Constitution. It may not be out
of context to note that in another case reported as
Executive Council Allama Iqbal Open
University v. M. Tufail Hashmi (2010 SCMR
1484), this Court in its paragraph No.9 observed
as under:--
9. The principle perceived from the
above judgments is that the employees
of those organizations, which are
discharging functions in connection
with the affairs of Federation, can
approach the learned High Court
under Article 199 of the Constitution
but subject to the condition if their
services
are
protected
under
the
statutory rules."
6. As far as the jurisdiction of the Tribunal under
Article 212 of the Constitution is concerned, it
was opined that the Tribunal would have
jurisdiction under Article 212 of the Constitution
for redressal of grievance of those employees
whose terms and conditions are governed under
the statutory rules. Admittedly, terms and
conditions of the respondent in the present case
have not been settled under the Constitutional
provision referred to hereinbefore, therefore, inter
alia, the question for consideration would be as to
whether, if a person being employee of a
corporation like Steel Mills has been proceeded
against under the provisions of Ordinance of
2000, would he have no remedy to challenge
such order.
7. Leave to appeal is granted, inter alia, to
examine the above questions and to resolve the
divergent opinions in the judgments noted
hereinabove. Office is directed to put up a note for
the purpose of constituting larger Bench to set at
naught these discrepancies in the judgments
noted above.”
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
17
18.
Having considered the submissions made by learned
counsel for the parties and having gone through the precedent
case law cited at the bar as also the conflict of opinion reflected in
the leave granting order, the questions which crop up for
consideration broadly would be as follows:-
(i)
Whether the appellants are persons discharging
functions in connection with affairs of Federation or a
Province within the meaning of clause (5) of Article 199
of the Constitution and amenable to writ jurisdiction of
the High Court? and
(ii)
Whether the respondent-employees being ‘person in
corporation service’ within the meaning of section 2(c)
of
the
Removal
from
Service
(Special
Powers)
Ordinance, 2000 and having been deprived of their
right to appeal by a judgment of this Court in Mubeen
us Islam’s case (PLD 2006 SC 602), could invoke
Article 199 of the Constitution against the order of the
departmental authority in view of the law laid down by
this Court in Civil Aviation Authority through Director
General v. Javed Ahmad and another (2009 SCMR
956) or their remedy is a claim of damages as held in
Pakistan
International
Airline
Corporation
Vs.
Tanweer-ur-Rehman (PLD 2010 SC 676), Executive
Council, Allama Iqbal Open University, Islamabad
through Chairman and another v. M. Tufail Hashmi
(2010 SCMR 1484), Hyderabad
Electric Supply
Company v. Mushtaq Ali Brohi (2010 PSC 1392) and
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
18
Civil Aviation Authority through Director General v.
Javed Ahmad (2009 SCMR 956)?
Questions of Law and Opinion of the Court:
Question No.1:
Whether the appellants are persons discharging
functions in connection with affairs of Federation
or a Province within the meaning of clause (5) of
Article 199 of the Constitution and amenable to
writ jurisdiction of the High Court?
19.
To better appreciate the question mooted above, it
would be of relevance to give a brief overview of the law, structure
and functions of the statutory bodies/corporations/authorities
(appellants).
(i)
Pakistan Steel Mills
Pakistan Steel Mills is admittedly a public sector
project. It was established in July 1968 under the Companies Act,
1913 as a private limited company. It is not denied that the
Federal Government makes appointments in the top management
of the Mills and plays a pivotal role in its policy making. Though it
is not a statutory body, but its employees are “persons in
corporation service” within the scope of section 2(c) of the
Ordinance, 2000. Admittedly, their disciplinary matters were being
regulated by a statutory regime (the Ordinance 2000) and they had
sought enforcement of the said regime/statutory intervention when
the said regime was in the field by invoking Article 199(1)(a)(ii) of
the Constitution as they had been deprived of their right to appeal.
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
19
(ii)
Port Qasim Authority:
Port Qasim Authority is a statutory body created
under the Ports Qasim Authority Act, 1973. A bare reading of
various provisions of this Act would indicate that in its
management and functions the Federal Government has effective
control. The Government by notification in the Official Gazette
defines the limits of the Port Qasim Authority (Section 3); the
management of the Authority is carried out by the Board
comprising of at least three and not more than seven members
including the Chairman to be appointed by the Federal
Government (Section 6); the Board is guided on policy mattes by
directions issued by the Federal Government from time to time
[(Section 5(2)]; the remuneration and conditions of service of the
Chairman and Members of the Board are determined by the
Federal Government (section 7); all schemes under the Act are to
be prepared in such manner and form as the Federal Government
may specify (section 12); the Authority is mandated to frame scale
of tolls, dues, rates and charges, annual or other, to be paid by the
owners of vessels. Such scales are to be published in the Official
Gazette after approval by the Federal Government [Section 12 (3)
(4)]; the Federal Government has the power to exempt any goods or
class of goods from operation of the charging section (Section
20(3); the Authority has the power to acquire land within the
Board Area (Section 34); the Chairman, members, officers and
servants of the Authority when acting under the Act are deemed to
be public servants within the meaning of section 21 of the Pakistan
Penal Code (Section 52).
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
20
Thus the composition and functions as given in
various provisions of the Statute to which reference has been made
above indicate that: first the Federal Government has an overriding
role in the appointment of the Chairman and members of the
Board, in policy making and even in charging provisions and with
regard to powers of land acquisition. Second the functions and
powers it exercise have some elements of public authority. The
Authority therefore can be classified as a ‘person’ performing
functions in connection with the affairs of the Federation within
the meanings of Article 199(1)(a)(ii) read with Article 199(5) of the
Constitution of Islamic Republic of Pakistan.
iii)
S.M.E. Bank:
S.M.E. Bank is established under the Regional
Development Finance Corporation and Small Business Finance
Corporation (Amalgamation and Conversion) Ordinance, 2001
(Ordinance LVI of 2001). Its employees would come within the
purview of the Ordinance 2000, section 2(c) of which defines
‘person in corporation service’ as “every person in the employment
of a corporation, corporate body, authority, statutory body or other
organization or institutions set up, established, owned, managed or
controlled by the Federal Government, or by or under any law for the
time being in force or a body or organization in which the Federal
Government has a controlling share or interest and includes the
Chairman and the Managing Director, and the holder of any other
office therein.” It was on account of the above mandate of law that
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
21
admittedly its respondent-employees were proceeded against this
Ordinance.
iv)
Defence Housing Authority, Karachi:
The
Defence
Housing
Authority
Karachi
was
established under the Pakistan Defence Officers Housing Authority
Order,
1980
(promulgated
on
9th of
August
1980).
The
management and authority vests in the Governing Body which
comprises
of
the
Secretary-General,
Ministry
of
Defence,
Government of Pakistan, who would be its Chairman and the other
members/officers include (a) Vice Chiefs of Staff of the three
Services or one Principal Staff Officer from each of the three
Services to be nominated by the respective Chiefs of Staff; (b) the
President; (c) the Director, Military Lands and Cantonments; and
(d) the Administrator [(Section 5 (1)]. For day to day working, an
Executive Board of the Authority comprises of Corps Commander
who would be its President and other members include: (a) a
serving Naval Officer not below the rank of a Commodore posted at
Karachi, to be nominated by the Chief of the Naval Staff; (b) a
serving Air Force officer not below the rank of an Air Commodore
posted at Karachi, to be nominated by the Chief of the Air Staff; (c)
a serving Army Officer not below the rank of a Brigadier posted at
Karachi, to be nominated by the Chief of the Army Staff; (d) the
Administrator; and (e) co-opted members, to be appointed by the
Executive Board for a period not exceeding two years at a time,
provided that such co-opted members shall not have any right of
vote. [(Section 5(2)]. The Executive Board of the Authority has the
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
22
power to acquire land under the law, undertake any work in
pursuance of any scheme or project; no master plan, planning or
development scheme can be prepared by any local body or agency
for the specified area without prior consultation with, and approval
of, the Executive Board (Section 9). The Authority through the
Executive Board has the power to raise funds for the purpose of its
working capital in a manner the Board may think proper, through
loans or levy of any charges which may be prescribed by it under
the Rules (Section 10). The Administrator functions in accordance
with the policy laid down by the Governing Body (Section 11). All
schemes/projects/works carried out by the Authority are deemed
under the law to be schemes for public purposes (section 12). The
employees of the Authority are deemed to be public servants within
the meaning of section 21 of the Pakistan Penal Code (Section 16).
The Governing Body has the power to make Rules by notification in
the Official Gazette for carrying out the purposes of the
Order/Statute. (Section 22). The Executive Board has the power to
make Regulations not inconsistent with the provisions of the Order
and the rules as it may consider necessary or expedient for the
administration and management of the affairs of the Authority.
(Section 23).
In Civil Appeal Nos. 1150 and 228-K of 2010,
respondents were employees of Pakistan International Airlines
Corporation. In Civil Appeal No. 117-K of 2010, respondents were
employees of Housing Building Finance Corporation. In Civil
Appeal No. 142-K of 2009, respondents were employees of N.E.D.
University. In Civil Appeal No. 188-K of 2011, respondents were
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
23
employees of Pakistan State Oil. All these employees were
proceeded against under the Ordinance, 2000 and were awarded
various penalties. The learned High Court decided the question of
jurisdiction holding that writ was maintainable as the appellants
were “persons” within the meaning of Article 199(5) of the
Constitution and further that respondent-employees had no
alternate remedy as their right of appeal under section 10 of the
Ordinance had been declared to be ultra vires of the Constitution.
20.
While dilating on this question whether the appellants-
organizations are “persons” within the meanings of Article
199(1)(a)(ii) read with Article 199(5) of the Constitution, the
expanded
functions
of
the
Federation
or
a
Province
in
contemporary age have to be kept in view. An important dimension
of the modern welfare State is that the role of the State and its
various institutions has increased manifold. The government is
regulator and dispenser of special services. It has the power to
create jobs, issue licenses, fix quotas, grant mining rights or lease
of estate, sign contracts and provide variety of utility services to
the people. Such entrepreneurial activities at times are carried out
through companies created under the Statute or under the
Companies
Ordinance.
The
functions
these
companies
/
institutions perform have elements of public authority. A public
authority is a body which has public or statutory duties to perform
and which performs those duties and carries out its transactions
for the benefit of the public and not for private gain or profit. Such
an authority, however is not precluded from making a profit for the
public benefit. The Courts have generally applied what has been
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
24
classified as a “function test” to consider whether a statutory body
is a ‘person’ within the meaning of Article 199 of the Constitution.
In Salahuddin v. Frontier Sugar Mills & Distillery Ltd (PLD 1975
SC 244), the Court laid down similar test to assess whether a body
or authority is a person within the meaning of Article 199 of the
Constitution and observed:-
“The primary test must always be whether the
functions entrusted to the organization or person
concerned are indeed functions of the State
involving some exercise of sovereign or public
power; whether the control of the organization
vests in a substantial manner in the hands of
Government; and whether the bulk of the funds is
provided by the State. If these conditions are
fulfilled, then the person, including a body politic
or body corporate, may indeed be regarded as a
person performing functions in connection with
the affairs of the Federation or a Province;
otherwise not.”
21.
The afore-referred view was further affirmed in
Aitchison College, Lahore through Principal v. Muhammad Zubair
(PLD 2002 SC 326), and while not interfering with the judgment of
the Lahore High Court whereby the latter court had held that the
said college was amenable to the jurisdiction of the High Court
under Article 199 of the Constitution, this Court laid down as
follows:-
“Applying the above test on the facts of instant
cases, we feel no hesitation in drawing inference
that the Board of Governors, Aitchison College,
Lahore headed by the Governor of the Province as
its President along with other officers i.e.
Secretaries Education, Finance and General
Officer
Commanding
as
well
as
unofficial
Members are involved in providing education
which is one of the responsibility of the State and
by taking over its management and control the
Board, exercises sovereign powers as well as
public powers being a statutory functionary of
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
25
Government who in order to provide it full
legal/Constitutional protection had brought it into
the folds of its Education Department by
amending the Provincial Rules of Business as
back as in 1994 and even if for sake of
arguments if it is presumed that no financial aid
is being provided to the College from the
Provincial Public exchequer, even then, the
College remains in dominating control of the
Provincial
Government
through
Board
of
Governors. Therefore, the above test stands fully
satisfied and we are persuaded to hold that
organization of the Aitchison College, Lahore falls
within the definition of a person.”
22.
In Pakistan International Airlines v. Tanweer-ur-
Rehman (PLD 2010 SC 676), reiterating the earlier view, the Court
laid down a similar three pronged test:
(i)
whether
the
functions
entrusted
to
the
organization or person concerned are indeed
functions of the State involving some exercise
of sovereign or public power;
(ii)
whether the control of the organization vests in
a substantial manner in the hands of
Government; and
(iii)
whether the bulk of funds is provided by the
State.
23.
A comparative study of constitutional law on issues
under consideration would be instructive. In Sukh Dev Singh and
others v. Beghatram Sardar Singh Raghwamshi and another (AIR
1975 SC 1331), the questions mooted before the Court were inter
alia whether action of a statutory corporation in derogation to its
Rules could be annulled in writ jurisdiction and whether the Rules
framed by the corporation under the Statute were statutory. The
Court held as follows:-
"33. ……….A regulation framed under a statute
applies uniform treatment to every one or to all
members of same group or class.. The' Oil and
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
26
Natural Gas Commission, the Life Insurance
Corporation and Industrial Finance corporation
are all required by the statute to frame
regulations, inter alia, for the purpose of the
duties and conduct and conditions of service of
officers and other employees. These regulations
impose obligation on the statutory authorities.
The statutory authorities cannot deviate from the
conditions of service. Any deviation will be
enforced by legal sanction of declaration by
Courts to invalidate actions in violation of rules
and regulations under statute is to ensure regular
conduct with a distinctive attitude to that conduct
as a standard. The regulations in the cases under
consideration give the employees a statutory
status and impose restriction on the employer
and the employee with no option. to vary the
conditions. An ordinary individual in a case of
master and servant contractual relationship
enforces breach of contractual terms. The remedy
in such contractual .relationship of master and
servant is damages because personal service is
not capable of enforcement. In cases of statutory
bodies, there is no personal element whatsoever
because of the impersonal character of statutory
bodies. In the case of statutory bodies it has
been' said that the element of public employment
or service and the support of statute require
observance of rules and regulations. Failure to
observe requirements by statutory bodies is
enforced by Courts by declaring dismissal in
violation of rules and regulations to be valid. This
Court has repeatedly observed that whenever a
man's rights are affected by decision taken under
statutory powers, the Court would presume the
existence of a duty to observe the rules of natural
justice and compliance with rules and regulations
imposed by statute. "
24.
Somewhat similar view was taken by this Court in The
Evacuee Trust Property Board and another v. Muhammad Nawaz
(1983 SCMR 1275) and the judgment of this Court in C.P.S.L.A.
No. 645/74 titled as Chairman Evacuee Trust Property Board
Lahore, etc., v. Noor Elahi and C.P.L.S.A. No. 646/74, titled as
Chairman
Evacuee
Trust
Property
Board
Lahore,
etc
v.
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
27
Muhammad Ramzan, upholding the judgment of the High Court
was followed with approval. This Court held:-
"It appears from the order passed by the learned
Chief Justice of the High Court on the two
Constitution Petitions that the Board at its 6th
Meeting held in May 1969, passed the following
resolution :‑‑
"Agreed. Central Government Rules would apply
to the Board's employees for all intents and
purposes."
Under paragraph 43 of the scheme the Board is
authorized to make rules to carry out the;
purposes of the scheme framed under section
16‑A(i) of the Displaced Persons (Compensation
and Rehabilitation) Act 1958, and under section
14(2) of the Displaced Persons (Land Settlement)
Act 1958. Paragraph 16 of the Scheme provides
that no employee of the Board shall be dismissed
or otherwise punished except in accordance with
the rules framed by the Board and approved by
the Central Government. In our opinion the
aforesaid resolution amounted to making of the
rules by the Board.”
It was not disputed before the learned Chief
Justice that till such time the Board framed its
own rules, the employees were governed by the
Efficiency and Discipline Rules 1960, framed by
the Central Government.
Admittedly these rules were not followed in the
cases of the two respondents and, therefore, no
fault can be found with the impugned orders of
the learned Chief Justice. Both the petitions are
accordingly dismissed."
25.
The Court further candidly held, “Even otherwise it is
well‑settled that where statutory rules govern the service conditions
of an employee, then the pleasure of the master stands surrendered
to the extent the matter is covered by the relevant rules”.
26.
Whether a company or authority is an instrumentality
of the State has also been subject of debate in constitutional
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
28
jurisprudence of India. The Indian Supreme Court in Ramana v.
I.A. Authority of India (AIR 1979 SC 1628) adverting to the factors
which make a corporation or authority an instrumentality of the
State held:-
“It will thus be seen that there are several factors
which may have to be considered in determining
whether
a
corporation
is
an
agency
or
instrumentality of Government. We have referred
to some of these factors and they may be
summarized as under: Whether there is any
financial assistance given by the State, and if so,
what is the magnitude of such assistance
whether there is any other form of assistance,
given by the State, and if so, whether it is of the
usual kind or it is extraordinary, whether there is
any control of the management and policies of the
corporation by the State and what is the nature
and
extent
of
such
control,
whether
the
corporation enjoys State conferred or State
protected monopoly status and whether the
functions carried out by the corporation are public
functions
closely
related
to
Governmental
functions. This particularization relevant factors
is, however, not exhaustive and by its very
nature it cannot be because with increasing
assumption of new tasks, growing complexities of
management
and
administration
and
the
necessity of continuing adjustment in relations
between the corporation and Government calling
for flexibility, adaptability and innovative skills, it
is
not
possible
to
make
an
exhaustive
enumeration of the tests which would invariably
and in all cases provide an unfailing answer to
the question whether a corporation is Government
instrumentality
or
agency.
Moreover,
even
amongst these factors which we have described,
no one single factor will yield a satisfactory
answer to the question and the Court will have to
consider the cumulative effect of these various
factors and arrive at its decision on the basis of a
particularized
inquiry
into
the
facts
and
circumstances of each case. ‘The dispositive
question in any State action case’, as pointed out
by Dougles, J., in Jackson v. Matropolitan Edison
Co. (1974) 419 US 345 (supra) is not whether any
single fact or relationship presents a sufficient
degree of State involvement, but rather whether
the aggregate of all relevant factors compels a
finding of State responsibility. It is not enough to
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
29
examine seiatim each of the factors upon which a
corporation is claimed to be an instrumentality or
agency of Government and to dismiss each
individually as being insufficient to support a
finding to that effect. It is the aggregate or
cumulative effect of all the relevant factors that is
controlling.”
27.
Keeping in view the Statutes which established and
the functions of the appellants’ authorities, and having considered
in the light of “function test”, we hold and declare that these are
statutory bodies, performing some of the functions which are
functions of the Federation/State and through the exercise of
public power, these bodies create public employments. These
bodies are therefore “persons” within the meanings of Article
199(1)(a)(ii) read with Article 199(5) of the Constitution. If their
actions or orders passed are violative of the Statute creating those
bodies or of Rules/Regulations framed under the Statute, the same
could be interfered with by the High Court under Article 199 of the
Constitution.
Question No.2:
Whether the respondent-employees being ‘person
in corporation service’ within the meaning of
section 2(c) of the Removal from Service (Special
Powers) Ordinance, 2000 and having been
deprived of their right to appeal by a judgment of
this Court in Mubeen us Islam’s case (PLD 2006
SC 602), could invoke Article 199 of the
Constitution against the order of the departmental
authority in view of the law laid down by this
Court in Civil Aviation Authority through Director
General v. Javed Ahmad and another (2009
SCMR 956) or their remedy is a claim of damages
as
held
in
Pakistan
International
Airline
Corporation Vs. Tanweer-ur-Rehman (PLD 2010
SC 676), Executive Council, Allama Iqbal Open
University, Islamabad through Chairman and
another v. M. Tufail Hashmi (2010 SCMR 1484),
Hyderabad Electric Supply Company v. Mushtaq
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
30
Ali Brohi (2010 PSC 1392) and Civil Aviation
Authority through Director General v. Javed
Ahmad (2009 SCMR 956)?
28.
For a better appreciation of the question framed, it
would be pertinent to comprehend the ambit and scope of the
Ordinance 2000 and its various provisions. It has not been
disputed before this Court that the appellants are statutory bodies
within the meaning of section 2 of the Ordinance and that is why
all the respondent-employees were proceeded against under the
said law except those of NED University and regarding that the
High Court of Sindh vide the impugned judgment had observed
that those employees too ought to have been dealt with under the
said Ordinance. To discern that the Ordinance 2000 has an
overriding effect a reference to certain provisions at this stage
would be in order. Section 1(4) of the Ordinance 2000 stipulates
that “it shall apply to persons in Government service and corporation
service.” The expression “person in corporation service” has been
defined in section 2(c) which reads as under:-
“2. Definitions.---
----
(a)-----
(aa)
------
(b)------
(c)'person in corporation service' means
every person in the employment of a
corporation,
corporate
body,
authority,
statutory body or other organization or
institutions set up, established, owned,
managed or controlled by the Federal
Government, or by or under any law for the
time being in force or a body or organization
in which the Federal Government has a
controlling share or interest and includes
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
31
the Chairman and the Managing Director,
and the holder of any other office therein.
(d) ----- ”
29.
The right of appeal given under section 10 of the
Ordinance (before the Service Tribunal) was held to be ultra vires in
view of the law laid down in Mubeen-us-Salam’s case (PLD 2006 SC
602). To further buttress its overriding effect, Section 12 of the
Ordinance 2000 provided:-
“Proceedings
under
this
Ordinance.
-
All
proceedings initiated on the commencement of
this Ordinance in respect of matters and persons
in service provided for in this Ordinance shall be
governed by the provisions of this Ordinance and
rules made thereunder.
Provided that the Federal Government may, by
notification in the official Gazette, exempt any
class or classes of employees of a Corporation, a
corporate body, authority, statutory body or other
organization or institution set up, established,
owned, managed or controlling share or interest
from the provisions of this Ordinance and such
class
or
classes
of
employees
shall,
notwithstanding
anything
contained
in
this
Ordinance, be proceeded against and dealt with
under the laws and rules applicable to such
employees before the commencement of this
Ordinance.”
30.
This Ordinance was promulgated on 27th of May 2000
and remained in force till its repeal on 6th of March, 2010.
31.
The
expression
‘person
in
corporation
service’
appearing in section 2(c) of the Ordinance 2000 is fairly
comprehensive and indicates that the legislative intent was that
every person in the service of a corporation, a corporate body,
authority, statutory body or other organization or institution which
is established, owned and managed or controlled by the Federal
Government or under any law for the time being in force in which
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
32
the Federal Government has a controlling share shall be treated as
a “person in corporation service”. Section 12 mandates that
proceedings in service matters against the employees of such
statutory bodies/organizations shall be governed by the provisions
of the Ordinance 2000. However, it carries a rider i.e. unless, “the
Federal Government may, by notification in the official Gazette,
exempt any class or classes of employees of a Corporation, a
corporate body, authority” as defined in section 2(c) from the
provisions of this Ordinance and the said notification further
provides that those employees would, “be proceeded against and
dealt with under the laws and rules applicable to such employees
before the commencement of this Ordinance”. It has never been the
case of the appellant-organizations before this Court that the
Federal Government had in this regard issued any notification in
the Official Gazette exempting the respondent-employees from the
provisions of Ordinance 2000. Hence the matters of their service
discipline had to be dealt with under the said Ordinance.
32.
Before we proceed to discuss the issue raised, a brief
reference to the precedent case law in writ jurisdiction with regard
to the employees of statutory bodies generally would be relevant.
33.
The actions of statutory bodies in service matters have
been subject of judicial scrutiny in all jurisdictions. In some cases,
Courts have interfered in exercise of the power of judicial review on
a variety of grounds, while in others they have refrained invoking
the principle of Master and Servant. There is need to discern the
principles which have weighed with the Courts in varied situations.
In Maloch Vs. Aberdeen Corporation (1971) 1 W.L.R. 1578 Lord
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
33
Wilberforce, in speaking about the anomaly created by judicial
decision in the area of contractual and statutory employments
narrowed down the parameters of ‘pure master and servant cases’
in observing:-
“A comparative list of situations in which
persons have been held entitled or not entitled to
a hearing or to observation of rules of natural
justice, according to the master and servant test,
looks illogical and even bizarre. A specialist
surgeon was denied protection which is given to a
hospital doctor; a University professor, as a
servant has been denied the right to be heard, a
dock labourer and an undergraduate have been
granted it; examples can be multiplied. One may
accept that if there are relationships in which all
requirements of the observance of rules of natural
justice are excluded (and I do not wish to assume
that this is inevitably so), these must be confined
to what have been called “pure master and
servant cases”, which I take to mean cases in
which there is no element of public employment or
service, no support by statue, nothing in the
nature of an office or a status which is capable of
protection. If any of these elements exist, then, in
my opinion, whatever the terminology used, and
even though in some inter parties aspects the
relationship may be called that of master and
servant, there may be essential procedural
requirements to be observed, and failure to
observe them may result in a dismissal being
declared to be void. (Emphasis is supplied)
I think that employment under public
corporation of the nature under consideration
here is public employment and therefore the
employee should have the protection which
appertains to public employment.”
34.
In Viteralli v. Saton (359 US 535 Second Series 1012),
the American Supreme Court speaking through Judge Frankfurter
held that the authority is bound to follow the procedure prescribed
in law:
“An executive agency must be rigorously held to
the standards by which it professes its action to
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
34
be judged……Accordingly, if dismissal from
employment is based on a defined procedure,
even though generous beyond the requirements
that bind such agency, that procedure must be
scrupulously observed……This judicially evolved
rule
of
administrative
law
is
now
firmly
established and, if I may add, rightly so. He that
takes the procedural sword shall perish with the
sword.”
35.
In Sukhdev Singh, Oil & Natural Gas Commission,
Life Insurance Corporation,
Industrial Finance Corporation
Employees Associations Vs. Bhagat Ram, Association of Clause II
Officers, Shyam Lal, Industrial Finance Corporation (AIR 1975 SC
1331), the questions before the Indian Supreme Court were
whether an order for removal from service contrary to regulations
framed under the Oil and Natural Gas Commission Act, 1959; the
Industrial Finance Corporation Act, 1948; and the Life Insurance
Corporation Act, 1956 would enable the employees to a declaration
against the statutory corporation of continuance in service or
would only give rise to a claim for damages. Second whether an
employee of a statutory corporation is entitled to claim protection
of Articles 14 and 16 against the Corporation. The Court by
majority held as follows:-
“60. The Oil and Natural Gas Commission is
owned by the Government. It is a statutory body
and not a company. The Commission has the
exclusive privilege of extracting petroleum. The
management is by the Government. It can be
dissolved only by the Government.
……………………………………………..
67.
For the foregoing reasons, we hold that
rules and regulations framed by the Oil and
Natural
Gas
Commission,
Life
Insurance
Corporation
and
the
Industrial
Finance
Corporation have the force of law. The employees
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
35
of these statutory bodies have a statutory status
and they are entitled to declaration of being in
employment when their dismissal or removal is in
contravention of statutory provisions. By way of
abundant caution we state that these employees
are not servants of the Union or the State. These
statutory bodies are “authorities” within the
meaning of Article 12 of the Constitution.”
36.
In Lt. Col. Shujaddin Ahmad v. Oil & Gas Development
Corporation (1971 SCMR 566), the question mooted was whether
the Oil & Gas Development Corporation was a government
department and, if so, whether its employees could challenge the
order of departmental authority before the High Court under
Article 199 of the Constitution. The Court while reiterating that
relationship between the Corporation and its employees in the said
case was that of master and servant dismissed the petition and
held as follows:-
“The consistent view of this Court therefore has
been that the employees of such statutory
Corporations do not acquire the status of
Government servants nor are the guarantees
given by the Constitution applicable in their case.
The High Court was, therefore, in our view, right
in vacating the order of interim injunction, for
according to the law of Master and Servant, a
contract of service cannot be specifically enforced.
It follows, therefore, that no temporary injunction
can either be granted in such case. This petition
is, accordingly dismissed.”
This view was further affirmed in Raziuddin v. Chairman, Pakistan
International Airlines Corporation (PLD 1992 SC 531), and while
dismissing the appeal of the employees whose services had been
terminated by the respondent, this Court held as follows:-
“Even if we are to agree with Mr. Niaz Ahmad
Khan's above submission, we cannot hold that
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
36
section 10(2) of the Act is violative of any
fundamental
rights
guaranteed
by
the
Constitution, keeping in view the factum that to
the absence of statutory provisions for regulating
the relationship of a statutory Corporation and its
employees, the relationship is that of Master and
Servant. We may also observe that subsections
(2), (3) and (4) of section 10 of the Act have been
omitted by the Pakistan International Airlines
Corporation (Amendment) Act,. 1989 (Act No.V11
of 1989), gazetted on 2-11-1989, and therefore,
the above subsection (2) of section 10 is no longer
on the statute.”
37.
The above rule of master and servant, it may however,
be noted, was departed in situations where relationship between a
corporation and its employees was regulated by statutory
provisions and violation of such provisions was complained of.
Thus in Evacuee Trust Property Board v. Muhammad Nawaz (1983
SCMR 1275), the Court upheld the judgment of the High Court by
holding that, “Where statutory rules governed the service conditions
of an employee, then the pleasure of the master stands surrendered
to the extent the matter was covered by the relevant rules.”
38.
The afore-referred view was followed in Anwar Hussain
v. Agricultural Development Bank of Pakistan (PLD 1984 SC 194)
wherein this Court laid down as follows:-
“The test of the employer/employee relation is the
right of the employer to exercise control of the
details and method of performing the work. It
follows that if the relationship is the result of a
contract freely entered into by the contracting
parties then the principle of Master and Servant
will apply. The principle, however, will not apply
if some law or statutory rule intervenes and
places fetters upon the freedom of the parties in
the matter of the terms of the contract. It is on this
principle that a civil servant for whom there are
constitutional safeguards, is not governed by the
principle of Master and Servant; for he is
possessed
of
a
legal
character
for
the
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
37
enforcement of which he can bring an action.
Even where the employee is not a civil servant
but there are statutory safeguards governing his
relationship with the employer and placing
restrictions on the freedom of the parties to act,
the general law of Master and Servant will not
apply. In such cases the employer would be
bound to follow the procedure provided for in the
statute or the statutory rules before terminating
the service of the employee and in the absence of
conformity to such procedure, the termination of
service would not be clothed with validity and the
employee will be entitled to an action for his
reinstatement:" (Emphasis is supplied)
39.
In Principal, Cadet College, Kohat and another v.
Mohammad Shoab Qureshi (PLD 1984 SC 170), this Court
reiterated the above principle and held as follows:
“It is, therefore, evident that where the conditions
of service of an employee of a statutory body are
governed
by
statutory
rules,
any
action
prejudicial taken against him in derogation or in
violation of the said rules can be set aside by a
writ petition. However, where his terms and
conditions are not governed by statutory rules but
only by regulations, instructions or directions,
which the institution or body, in which he is
employed, has issued for its internal use, any
violation thereof will not, normally, be enforced
through a writ petition." .
40.
The above principle was reiterated in following cases:-
(1)
Nisar Ahmad v. The Director, Chiltan
Ghee Mills 1987 SCMR 1836.
(2)
National Bank of Pakistan v. Manzoorul
Hasan 1989 SCMR 832.
(3)
Sindh
Road
Transport
Corporation
through , its Chairman v. Muhammad Ali
G. Khokhar 1990 SCMR 1404.
(4)
Karachi
Development
Authority
and
another v Wali Ahmad Khan and others
1991 SCMR 2434.
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
38
41.
In Karachi Development Authority v. Wali Ahmed
Khan (1991 SCMR 2434), this Court did not interfere in the
judgment of the High Court under Article 199 of the Constitution
whereby the petitions were allowed because the action of the
authority was tainted with malice notwithstanding the non-
statutory nature of Regulations under which the employee was
being governed.
42.
In Mrs. Anisa Rehman v. PIAC and another (1994
SCMR 2232), the scope of judicial review was further enlarged
despite Regulations being non-statutory and violation of principles
of natural justice was held to be a valid ground to invoke writ
jurisdiction under Article 199 of the Constitution. In the said case,
the employee was aggrieved of an order of demotion passed without
hearing him and the said right of hearing was not being claimed by
him through statutory provision. This Court nevertheless held that
the principles of natural justice were part of law and the order of
the authority was struck down.
43.
In
Walayat
Ali
Mir
v.
Pakistan
Intl.
Airlines
Corporation through its Chairman (1995 SCMR 650), the Court
held that the Corporation was bound by its Regulations though
those may be non-statutory and struck down the order of the
authority which was violative of those Regulations. It also laid
down parameters of exercise of this discretionary jurisdiction.
44.
In Housing Building Finance Corporation through
Managing Director, Karachi and another v. Inayatullah Shaikh
(1999 SCMR 311), this Court while reiterating the earlier view that
the Corporation may terminate the service of an employee under
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
39
Regulation 11 simplicitor qualified it with a proviso; provided it acts
in good faith and in the interest of Corporation. Though the
principle of ‘Master and Servant’, was reaffirmed, yet the Court did
not interfere with the judgment of the High Court whereby the writ
petition had been allowed and the employee of the House Building
Finance Corporation was reinstated since the order of the
competent authority terminating the service of the employee had
not been placed before the High Court.
45.
In Pakistan International Airlines Corporation (PIAC) v.
Nasir Jamal Malik (2001 SCMR 934), the PIA had challenged the
judgment of the Service Tribunal wherein it had allowed
respondents-employees’ appeal and directed their reinstatement as
their services had been terminated without assigning any reason
but it was left to the organization to proceed against them in
accordance with law. This Court upheld the judgment of the
Service Tribunal and reiterated the law laid down in Mrs. Anisa
Rehman v. PIAC (1994 SCMR 2232) to the effect that the
employees of PIAC were governed by the principle of “Master and
Servant” but put a rider that “the employer who itself has framed
Rules as well as the Regulations for its domestic purposes is bound
to strictly follow/adhere them because deviation therefrom is bound
to violate settled principles of justice including the one enshrined in
the maxim Audi alteram partem i.e. no one is to be condemned
unheard.”
46.
The violation of principles of natural justice in
disciplinary proceedings has been found to be valid ground for
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
40
judicial review in U.K. as well. In a very instructive Article1 titled
‘Judicial Review of Dismissal from Employment: Coherence or
Confusion?’ by Bernadette A. Walsh, with reference to plethora of
case law, the author stated that:-
“In the context of dismissal from employment, the
major significance of the grounds of judicial
review is that they enable a dismissed employee
to challenge his dismissal on the grounds that the
decision to dismiss him was taken in disregard of
procedural requirements, including the rules of
natural justice, or that it was so unreasonable
that no reasonable body could have taken it2. By
contrast, in an ordinary action for wrongful
dismissal, the traditional view was that the
employee was confined to arguing that there had
been a breach of the terms of his contract
pertaining
to
notice3.
Ridge
v.
Baldwin4
established that an office-holder was entitled to
challenge his dismissal on the additional ground
that there had been a breach of the rules of
natural justice. Ridge itself concerned an action
begun by writ, but there was no argument in the
case as to the appropriate procedure for seeking
relief.”
47.
In Azizullah Memon v. Province of Sindh (2007 SCMR
229), this Court annulled the order of the departmental authority
because notwithstanding the overriding effect of the Removal from
Service (Special Powers) Ordinance (Sindh Ordinance IX) of 2004,
the said civil servant had not been dealt with under the said
Ordinance. The Court observed as follows:-
“In the presence of express and specific language
employed
in
the
Ordinance
neither
the
departmental
authorities
nor
the
Tribunal
1 Appeared in Public Law (1989) 131.
2 In C.S.S.U. v. Minister for the Civil Service [1985] A.C. 374, Lord Diplock
described the latter ground as “irrationality”. However, in R. v. Devon County
Council, ex parte G. [1988] 3 W.L.R. 49, Lord Donaldson M.R. stated that he
preferred the term “unreasonable” to that of “irrational”, because the latter term
is widely interpreted as casting doubt on mental capacity.
3 See, e.g. the discussion in Smith and Wood, Industrial Law (1986, 3rd ed.),
199-218.
4 [1964] A.C. 40.
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
41
bothered to notice that after the date of
promulgation of the Ordinance all disciplinary
proceedings should have been initiated under
Ordinance rather than the old Rules enforced in
1973. This Court has already ruled in a number
of judgments that this Ordinance has the
overriding effect over all other laws on the subject
except in case of proceedings, which were
already pending before promulgation of the
Ordinance. Since the impugned action was
initiated and taken to its logical conclusion under
a misconception of law and under a wrong law, it
has vitiated the entire proceedings including the
final order, which cannot be sustained under the
law. The proceedings as well as final order is,
therefore, liable to be set aside.”
48.
In Muhammad Dawood and others v. Federation of
Pakistan and others (2007 PLC (C.S.)1046), the High Court of
Sindh was seized of the cases of employees of statutory/corporate
bodies (including the Civil Aviation Authority, etc.) who had been
proceeded against under the Ordinance, 2000 and their appeals
before the Service Tribunal were abated which obliged them to
challenge the order of the departmental authority in writ
jurisdiction. The Court allowed those petitions and speaking
through its Chief Justice, Mr. Justice Sabihuddin Ahmed held as
follows:-
“From the above somewhat detailed discussion,
we have arrived at the following conclusions:-
(i)
Irrespective of an employee of a State
controlled corporation not being a civil
servant
the
corporation
themselves
continue
to
remain
amenable
to
the
jurisdiction of this Court under Article 199
of the Constitution.
(ii)
The
rule
of
master
and
servant
is
inapplicable to cases where there is
violation of statutory provisions or of any
other law.
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
42
The expression “violation of law” would not be
confined merely to violation of any specific
provision of a statute but the expression “law”, as
observed by Hamoodur Rehman, J., (as his
Lordship then was) in Government of West
Pakistan v. Begum Agha Abdul Karim Sorish
Kashmiri PLD 1969 SC 14 at page 31 and ought
to be considered in its generic sense as connoting
all that is treated as law in this country including
even the judicial principles laid down from time to
time by the superior Courts. It means according to
the
accepted norms of legal process and
postulates a strict performance of all the functions
and duties laid down by law. It may, for instance,
include the principles of natural justice, the public
duty to act fairly and honestly and absence of
mala fides in fact and law. In all such cases the
Court would be competent to grant relief of
reinstatement.”
49.
While affirming the afore-mentioned judgment of the
High Court of Sindh, this Court considered the effect of the
Ordinance 2000 qua the jurisdiction of the High Court under
Article 199 of the Constitution for the first time in Civil Aviation
Authority through Director General v. Javed Ahmad (2009 SCMR
956). The Court observed as under:-
““The
learned
High
Court
was
fully
empowered to consider whether the action
complained of is in accordance with the
Removal
from
Service
(Special
Powers)
Ordinance, 2000. Therefore, the violation of
law falls within the parameters of the
constitutional jurisdiction and the petition
was
properly
entertainable
regarding
punishment of compulsory retirement
to
Javed Ahmed. The right of individual by
change of law cannot be closed as past
transaction and the constitutional petition
remains alive to agitate the rights guaranteed
under the Constitution. The departmental
action
on
the
statement
of
allegations
contained
23
allegations
which
include
additional allegations, was passed on malice
and pre-determined desire to get rid of Javed
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
43
Ahmed. After abatement of his service appeal,
there was no remedy available under the law
in view of Mubeen-us-Salam's case and the
petition
before
the
High
Court
was
maintainable”
50.
The principles of law which can be deduced from the
foregoing survey of the precedent case law can be summarized as
under:-
(i)
Violation of Service Rules or Regulations framed
by the Statutory bodies under the powers
derived from Statutes in absence of any
adequate or efficacious remedy can be enforced
through writ jurisdiction.
(ii)
Where conditions of service of employees of a
statutory
body
are
not
regulated
by
Rules/Regulations framed under the Statute but
only Rules or Instructions issued for its internal
use, any violation thereof cannot normally be
enforced through writ jurisdiction and they
would be governed by the principle of ‘Master
and Servant’.
(iii)
In all the public employments created by the
Statutory bodies and governed by the Statutory
Rules/Regulations
and
unless
those
appointments
are
purely
contractual,
the
principles of natural justice cannot be dispensed
with in disciplinary proceedings.
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
44
(iv)
Where the action of a statutory authority in a
service matter is in disregard of the procedural
requirements and is violative of the principles of
natural justice, it can be interfered with in writ
jurisdiction.
(v)
That the Removal from Service (Special Powers)
Ordinance, 2000 has an overriding effect and
after its promulgation (27th of May, 2000), all the
disciplinary
proceedings
which
had
been
initiated under the said Ordinance and any
order passed or action taken in disregard to the
said law would be amenable to writ jurisdiction
of the High Court under Article 199 of the
Constitution.
51.
This brings us to the precedent case law of this Court
which reflects the conflict of opinion with regard to remedies
available to an employee of a statutory body. As we examine the
law, it may be kept in view that prior to Mubeen-us-Salam’s case
(PLD 2006 SC 602), there were two remedies available to the
employees of the statutory corporations: (i) section 2A of the
Service Tribunals Act; and (ii) under section 10 of the Ordinance,
2000. Section 2A of the Service Tribunals Act, was declared ultra
vires of the Constitution and the appeals pending before the
Tribunal abated. The effect of section 10 of the Ordinance 2000,
however, was not considered by the Court in the said judgment. As
discussed in para 49 above, the effect of deprivation of right to
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
45
appeal granted under section 10 of the Ordinance, 2000 with
reference to remedy under Article 199 of the Constitution was
considered for the first time in Civil Aviation Authority v. Javed
Ahmad supra. In the said case, the facts were that an employee
of Civil Aviation Authority was proceeded against under the
Ordinance 2000 and awarded major penalty of compulsory
retirement. He filed appeal before the Service Tribunal which was
directed to have abated by order of the Service Tribunal on account
of the judgment of this Court in Mubeen-us-Salam’s case (PLD
2006 SC 602). He along with several employees similarly placed
challenged the order of departmental authorities before the High
Court of Sindh. The petitions were allowed only on question of
jurisdiction by a Full Bench of which one of us (Sarmad Jalal
Osmany, J.) was a member and it was held that those petitions
under Article 199 of the Constitution were competent and were
directed to be listed before appropriate Benches of High Court of
Sindh for hearing on merit [Muhammad Dawood and others Supra
(2007 PLC (C.S.)1046)]. The Court allowed those petitions in terms
as referred to in para 48 above. The said judgment was upheld in
Civil Aviation Authority supra (2009 SCMR 956).
52.
In Executive Council, Allama Iqbal Open University,
Islamabad through Chairman and another v. M. Tufail Hashmi
(2010 SCMR 1484) wherein a contra opinion was rendered, this
Court was seized of several appeals filed by the employees of
statutory bodies against the judgment of the Federal Service
Tribunal. The question mooted in those appeals inter alia was
whether the Service Tribunal had jurisdiction to entertain and
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
46
decide appeals in view of the law laid down in Muhammad
Mubeen-us-Salam v. Federation of Pakistan (PLD 2006 SC 62) and
Muhammad Idrees v. Agricultural Development Bank of Pakistan
(PLD 2007 SC 681). The question of jurisdiction of the High Court
under Article 199 of the Constitution was not considered. The
Court
relying
on
these
two
judgments
and
Pakistan
Telecommunication Company Ltd. V. Muhammad Zahid (2010
SCMR 253) held as under:-
“10. Now coming towards the definition of a
person in 'corporation service' or a person in
'government service', as defined in section 2(c)
and (d) of the RSO, 2000. Such persons can
be subjected to the RSO, 2000 but keeping in
view the definition of the 'civil servant' under
the Civil Servant Act, 1973 as well as the
dictum laid down in Muhammad Mubeen-us-
Salam's case (ibid), only those employees can
approach the Service Tribunal, who fall within
the definition of civil servant', holding posts in
connection with the affairs of the Federation.
As far as
the remaining categories of
employees, including the contractual ones;
are concerned, if they are aggrieved of any
adverse action, the Service Tribunal is not the
appropriate forum for redressal of their
grievance, in view of above conclusion,
because it is a forum constituted under Article
212 of the Constitution for the redressal of
grievance of those employees, whose terms
and conditions are settled under Article
212(1)(a) of the Constitution. Similarly, any
action taken against such persons shall not
be questionable before the Service Tribunal as
it is not meant to provide a forum to the
employees, whose services are governed by
non-statutory rules or who do not fall within
the definition of a person in 'government
service' as defined in section 2(d) of the RSO,
2000. Admittedly, in the present case the
employees of AIOU, SME Bank and Pakistan
Steel Mill, who approached the Service
Tribunal for redressal of their grievance, were
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
47
not enjoying the protection of statutory rules,
therefore,
the
Service
Tribunal
had
no
jurisdiction to adjudicate upon such matters
and they will be governed by the principle of
Master and Servant.”
53.
In Pakistan International Airlines Corporation PLD 2010
SC 676 supra, (taking a contra view) the Court distinguished the
case of Anisa Rehman v. PIAC (1994 SCMR 2232) by relying on the
case of Justice Khurshid Anwar Bhinder (Supra). In the latter case,
the petitioners who were Judges of the High Court had filed review
applications against the judgment of this Court in Sindh High
Court Bar Association v. Federation of Pakistan (PLD 2009 SC 879)
wherein the appointment of the then Chief Justice of Pakistan and
the entire consultative process leading to their appointments had
been found to be unconstitutional and non est. The grievance of
the review petitioners was that they had been condemned unheard.
The Court while dismissing their review applications came to the
conclusion that there can be exceptions to the principle of natural
justice that no one should be condemned unheard. The Court
observed as follows:
“42.………Principle of audi alteram partem, at the
same time, could not be treated to be of universal
nature because before invoking/applying the said
principle one had to specify that the person
against whom action was contemplated to be
taken prima facie had a vested right to defend the
action and in those cases where the claimant had
no basis or entitlement in his favour he would not
be entitled to protection of the principles of
natural justice. "(Nazir Ahmad Panhwar v.
Government of Sindh through Chief Secretary
Sindh 2009 PLC (C.S.) 161, Abdul Haque Indhar
and others v. Province of Sindh through Secretary
Forest, Fisheries and Livestock Department,
Karachi and 3 others 2000 SCMR 907 and Abdul
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
48
Waheed and another v. Secretary, Ministry of
Culture, Sports, Tourism and Youth Affairs,
Islamabad and another 2002 SCMR 769). It has
been elucidated in the detailed reasoning of the
judgment of 31.7.2009 how the order passed by
a seven Member Bench of this Court has been
flagrantly violated. Besides that the applicants
had no vested right to be heard and furthermore
they have acted illegally and in violation of the
order of seven Member Bench for obtaining illegal
gains and benefits which cannot be ignored while
examining the principle of `audi alteram Partem'.
54.
The afore-referred justification for dispensing with the
principle of natural justice was understandable as there was
already in the field a conclusive finding by this Court (Sindh High
Court Bar Association’s case PLD 2009 SC 879 supra) qua the
nature of the consultative process which culminated in the
appointment of those Judges. But in the instant cases, there was
no prior conclusive finding by this Court qua the merits of
respondents’ cases in disciplinary proceedings and also with
regard to the effect of statutory intervention of the Ordinance,
2000. In Hyderabad Electric Supply Co. v. Mushtaq Ali Brohi (2010
PSC 1392), an employee of Hyderabad Electric Supply Co., had
challenged the award of major penalty of dismissal from service
under the Ordinance, 2000 in writ jurisdiction which was allowed.
This Court set aside the said judgment holding that since the
service regulations were non-statutory, writ was not competent. In
this case as well, it was not appreciated that though the
Rules/Regulations may be non-statutory but there was statutory
intervention in the shape of the Ordinance and the employees had
to be dealt with under the said law.
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
49
55.
In an attempt to resolve a conflict of judicial opinion,
this Court must keep in mind: first the purpose of law the Court is
called upon to interpret; second that law is a living organism which
adapts to societal change and sometimes change in law precedes
the former; third the ambit of court’s jurisdiction and its
limitations as defined in the Constitution; fourth the Court must
be consistent i.e. in similar situations/cases, the judicial opinion
will be similar; fifth though the Supreme Court is not bound by the
principle of stare decisis, but the departure from the precedent
should be well reasoned, proper and in accordance with the
established principles of law. A Judge’s role is to interpret the law
and to correct its mistakes. The twin role of a developer in law and
an earnest interpreter of legislation, though challenging, is in
accord with the role the Supreme Court has in the constitutional
scheme as also consistent with society’s perceptions of the role of
judiciary in a liberal democracy. In the context of the case in hand,
the mandate of two constitutional provisions should be kept in
mind i.e. Article 4 and Article 10A which read as follows:-
“4. (1) to enjoy the protection of law and to be
treated in accordance with law is the inalienable
right of every citizen wherever he may be, and of
every other person for the time being within
Pakistan.
(2) In particular---
(a)
no action detrimental to the life, liberty,
body, reputation or property of any person
shall be taken except in accordance with
law.
(b)
No person shall be prevented from or be
hindered in doing that which is not
prohibited by law; and
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
50
(c)
No person shall be compelled to do that
which the law does not require him to do.
10A. For the determination of his civil rights and
obligations or in any criminal charge against him
a person shall be entitled to a fair trial and due
process.”
56.
The legislative intent in the promulgation of Ordinance
2000, inter alia, was that “persons in corporation service” in their
service matters should be dealt with in accordance with the
provisions of the said law and to ensure a fair deal/trial it was inter
alia provided in the Ordinance that unless specifically so exempted
by a reasoned order, the competent authority shall hold a regular
enquiry against an employee accused of misconduct and that he
shall have a right of appeal (Section 10 of the Ordinance).
57.
The right of appeal is a substantive right. The
respondents were deprived of the said right not by any legislative
amendment but by a judicial opinion and that too on the analogy
of the law laid down in Mubeen us Islam’s case (PLD 2006 SC 602)
and Muhammad Idrees’s case (PLD 2007 SC 68). In both these
cases, the effect of the Ordinance 2000 and that it was a statutory
intervention was not a moot point. It is well established that an
appeal is continuation of trial. Would it be a fair trial if an accused
is shorn off his right of appeal? Would the deprivation of right of
appeal not amount to judicial sanctification of all the orders
passed by the departmental authorities awarding various penalties
to the employees and would it not be violative of the fundamental
right to a “fair trial and due process” as ordained in Article 10A of
the Constitution? Could the respondent-employees not invoke
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
51
Article 199 of the Constitution to seek due compliance of the
Ordinance 2000 for ensuring fair trial and due process? If the
constitutional scheme and the purpose of law are kept in view, the
answer to all these queries has to be in the affirmative and the
constitutional
petitions
filed
by
the
respondents
seeking
enforcement of their said right would be maintainable.
58.
The High Court in the exercise of its jurisdiction under
Article 199 of the Constitution can pass an appropriate order
“declaring that any act done or proceeding taken within the
territorial jurisdiction of the Court by a person performing functions
in connection with the affairs of the Federation, a Province or a local
authority has been done or taken without lawful authority and is of
no legal effect.” [(Article 199(1)(a)(ii)] The grievance of the
respondent-employees in most of the cases was that the order of
the departmental authority was violative of the Ordinance, 2000
and of no legal effect (as they were proceeded against under the
said law) while in other cases it was that they had not been dealt
with under the said law despite its overriding effect, the High Court
had jurisdiction to interfere and allow the petitions.
59.
For what has been discussed above, the cases of this
Court reported as (Pakistan International Airlines Corporation PLD
2010 SC 676, Executive Council Allama Iqbal Open University 2010
SCMR 1484 and Hyderabad Electric Supply Co. 2010 PSC 1392
Supra), we observe with respect, did not declare or enunciate any
principle of law but were rendered in their own peculiar facts and
circumstances and may not be treated as precedent on the issue
we are seized of, because:-
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
52
(i)
The issue before this Court in Executive Council
Allama Iqbal Open University supra was only
whether the Service Tribunal had jurisdiction to
hear the appeal in view of the law laid down in
Mubeen-us-Salam’s case supra and whether the
writ jurisdiction under Article 199 of the
Constitution could be invoked in the event of
violation of Ordinance, 2000.
(ii)
In all the above cases, the point that irrespective
of the Rules/Regulations being non-statutory
the promulgation of Ordinance 2000 was a
statutory intervention and any violation thereof
would be amenable to writ jurisdiction was not
considered. In Hyderabad Electric Supply Co.
2010 PSC 1392 Supra, there was no allegation
that there was any violation of any provision of
the Ordinance 2000 and enforcement of Service
Rules was sought which were found to be non-
statutory.
(iii)
Neither the mandate of Articles 4 and 10A of the
Constitution nor the law laid down in Civil
Aviation Authority through Director General v.
Javed Ahmad (2009 SCMR 956) and Azizullah
Memon v. Province of Sindh (2007 SCMR 229)
was considered in those cases.
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
53
60.
It was not disputed before this Court by appellants’
learned counsel that the respondent-employees were “persons in
corporation service” within the meaning of section 2(c) of the
Ordinance 2000 and except in the case of N.E.D. University, they
were proceeded against under the said law. This was a statutory
intervention and the employees had to be dealt with under the said
law. Their disciplinary matters were being regulated by something
higher than statutory rules i.e. the law i.e. Ordinance, 2000. Their
right of appeal (under section 10) had been held to be ultra vires of
the Constitution by this Court as they did not fall within the ambit
of the Civil Servants Act, 1973, [(in Mubeen us Islam’s case (PLD
2006 SC 602) and Muhammad Idrees’s case (PLD 2007 SC 68)].
They
could
in
these
circumstances
invoke
constitutional
jurisdiction under Article 199 of the Constitution to seek
enforcement of their right guaranteed under Article 4 of the
Constitution which inter alia mandates that every citizen shall be
dealt with in accordance with law. The judgment of this Court in
Civil Aviation Authority (2009 SCMR 956) supra is more in
consonance with the law laid down by this Court and the
principles deduced therefrom as given in Para 50 above.
61.
These are the detailed reasons for our short order
dated 2.5.2013 which is reproduced hereinbelow:-
“For the reasons to be recorded later in the
detailed judgment we are of the view that
Removal from Service (Special Powers) Ordinance,
2000 had overriding effect and any violation or
non-compliance of the said statute was amenable
to writ jurisdiction. The impugned judgments
CIVIL APPEAL NOs. 39/2010, 1150/2010, 1162/2010, 142-K/2009, 177-
K/2010, 178-K/2010, 228-K/2010, 57-K/2011, 63-K/2011, 65-K/2011, 66-
K/2011, 83-K/2011, 91-K/2011, 135-K/2011, 136-K/2011, 137-K/2011, 188-
K/2011, 232-K/2011, 75-K/2012 AND 82-K/2012
54
rendered by the High Court on that score are not
open
to
exception.
In
the
afore-referred
circumstances all these appeals are dismissed.”
JUDGE
JUDGE
JUDGE
JUDGE
JUDGE
Islamabad, the
2nd of May, 2013
APPROVED FOR REPORTING
Khurram Anees/-
| {
"id": "C.A.39_2010.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
Present:
Mr. Justice Gulzar Ahmed
Mr. Justice Umar Ata Bandial
Mr. Justice Maqbool Baqar
CIVIL APPEAL NO. 39 OF 2015
(On appeal from the judgment/order dated 28.05.2004 passed
by High Court of Sindh at Karachi in Const.P.D-794 of 1999)
The Administrator General Zakat,
Central Zakat Administration,
Islamabad & others
…
…
…
Appellants
Versus
Pakistan Insurance Corporation
thr. its Secretary, Karachi & others
…
…
…
Respondents.
For the appellants
:
Mr. Abdur Rasheed Awan, DAG.
Ch. Akhtar Ali, AOR.
For respondent No.1
:
Syed Asghar Hussain Sabzwari, ASC.
Date of hearing
:
15.02.2016
JUDGMENT
UMAR ATA BANDIAL, J. – The judgment under appeal dated
28.05.2004 passed by a learned Division Bench of the High Court of Sindh,
Karachi allows the Constitutional Petition filed by the respondent Pakistan
Insurance Corporation (“respondent Corporation”) and exempts it from the
charge and collection of Zakat under the Zakat & Ushr Ordinance, 1980 (“the
Ordinance”). It is held by the learned High Court that the respondent
Corporation does not fall within the definition of ‘Sahib-e-Nisab’ given in
Section 2(xxiii) of the Ordinance. Accordingly, the charging provision for
Zakat i.e. Section 3(1) of the Ordinance, which applies the levy to a ‘Sahib-e-
CA.39/2006.
2
Nisab’ as on a specified valuation date is not attracted to the investment in
NIT units made by the respondent Corporation.
2.
The learned Deputy Attorney General appearing on behalf of
the appellant has argued that admittedly the respondent Corporation is
created by statute but is not wholly owned by the Federal Government.
Therefore, the sole controversy in the case is whether the exclusion of a
“statutory corporation” that is wholly owned, directly or indirectly, by the
Federal Government saves the respondent Corporation from the scope of
‘Sahib-e-Nisab’. He has read from Section 2(xxiii) of the Ordinance to urge
that the respondent Corporation is not exempt from the category of
chargeable persons. For the sake of convenience clauses (a) & (b) of Section
2(xxiii) ibid are reproduced herein below:
“(xxiii) ‘sahib-e-nisab’ means a person who owns or possess assets not less than nasab, but
does not include---
(a)
The Federal Government, a Provincial Government or a local authority;
(b)
a statutory corporation, a company or other enterprise, owned wholly, directly or
indirectly, by the Federal Government, a Provincial Government, a local authority or a
corporation owned by the Federal Government or a Provincial Government, either singly or
jointly with one or more of the other three; …” (emphasis supplied).
3.
It is common ground that 51% of the issued equity of the
respondent Corporation is owned by the Federal Government. The learned
Deputy Attorney General contends that as the respondent Corporation is not
owned wholly by the Federal Government, therefore, it does not qualify the
exemption from ‘Sahib-e-Nisab’ given in clause (b) of the Section 2(xxiii) of the
Ordinance.
4.
On the other hand, learned counsel for the respondent-
Corporation has invited our attention to the provisions of Section 1(1) & (2)
of the Ordinance. These declare as follows:
“(1)
This Ordinance may be called the Zakat and Ushr Ordinance, 1980.
(2)
It extends to the whole of Pakistan, but as regards recovery of Zakat and Ushr,
applies only to Muslim citizens of Pakistan and a company, or other association of persons, or
CA.39/2006.
3
body of individuals, whether incorporated or not, majority of the shares of which is owned,
or the beneficial ownership of which is held, by such citizens.” (emphasis supplied)
5.
It is clear from sub-section (2) of Section 1 of the Ordinance that
a company or other association of persons or body of individuals, that has
the majority of its shares owned by or its beneficial ownership held by
Muslim citizens of Pakistan, is liable to the charge and collection of Zakat
under the provision of the Ordinance. Under Section 2(xxiii)(a) of the
Ordinance, the Federal Government is excluded from the status of ‘Sahib-e-
Nisab’. As already noted above, Section 3(1) of the Ordinance makes Zakat
chargeable upon a ‘Sahib-e-Nisab’ who is a person owning or possessing
assets not less than value equaling nisab [Section 2(xxiii) of the Ordinance].
However, the said definition specifies only one qualification of a ‘Sahib-e-
Nisab’ whereas Section 1(2) of the Ordinance enumerates certain other
attributes of a person that complete the definition of ‘Sahib-e-Nisab’. These are
that the person must be a Muslim citizen of Pakistan or in the case of an
artificial juristic person when it has its majority equity owned by Muslim
citizens of Pakistan.
6.
In the present case, the majority equity ownership of the
respondent Corporation lies with the Federal Government and not with
Muslim citizen of Pakistan. Now the Federal Government is excluded from
the status of ‘Sahib-e-Nisab’ under Section 2(xxiii)(a) of the Ordinance. Thus,
the majority ownership of the respondent Corporation neither rests with
Muslim citizens of Pakistan nor with a person qualifying as ‘Sahib-e-Nisab’.
Hence the respondent Corporation fails the test laid down in Section 1(2) of
the Ordinance. The learned High Court has relied on the judgment in Bank
of Punjab vs. Administrator General, Central Zakat (PLD 1994 Lahore
207) that holds the Bank of Punjab to be exempt from the recovery of Zakat
for reasons similar to those outlined above.
CA.39/2006.
4
7.
This appeal, accordingly, pursues a pedantic reading of the
exemption of a statutory corporation wholly owned by the Federal
Government from ‘Sahib-e-Nisab’ under Section 2(xxiii)(b) of the Ordinance.
On the other hand, we find that by a joint reading of Section 1(2) with
exemption of the Federal Government under clause (a) of section 2(xxiii) of
the Ordinance, the respondent Corporation stands exempted from the charge
and collection of Zakat as held by the impugned judgment.
For the foregoing reasons, this appeal being devoid of merit is
dismissed with no order as to costs.
J.
J.
J.
Islamabad,
15.02.2016.
Irshad Hussain /*
APPROVED FOR REPORTING.
| {
"id": "C.A.39_2015.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT: MR. JUSTICE MIAN SAQIB NISAR, HCJ
MR. JUSTICE MUSHIR ALAM
MR. JUSTICE SAJJAD ALI SHAH
CIVIL APPEALS NO.3 AND 4 OF 2018 AND
(on appeal from the judgment/order dated 07.12.2017
passed
by
the
Lahore
High
Court,
Lahore
in
I.C.A.98703/2017)
CIVIL PETITIONS NO. 3412 OF 2017 AND 45 OF 2018
(on appeal from the judgment/order dated 28.08.2017
passed by the Islamabad High Court, Islamabad in
W.P.2975/2016 and dated 07-12-2017 of the Lahore
High Court, Lahore passed in I.C.A.98703/2017)
AND
C.M.A. NOS. 203 TO 209 OF 2018 IN
CIVIL PETITIONS NO. NIL OF 2018
(on appeal from the judgment/order dated 07.12.2017
passed
by
the
Lahore
High
Court,
Lahore
in
I.C.A.98703/2017)
1.
Pakistan Medical and Dental Council
through its President
In C.As.3 & 4/2018
2.
Prof. Dr. Masood Hameed Khan
In C.P.3412/2017
3.
Pakistan Association of Private Medical
and Dental Institution through its D.G.
In C.P.45/2018
4.
Pakistan Medical and Dental Council
through its President
In CMA 203-209/18
…Appellant(s)/Petitioner(s)
VERSUS
1.
Muhammad Fahad Malik etc.
In C.A.3/2018
2.
Pakistan Association of Private Medical
and Dental Institution etc.
In C.A.4/2018
3.
Federation of Pakistan through Secretary
M/o National Health Services Regulation
and Coordination and another
In C.P.3412/2017
4.
Federation of Pakistan etc.
In C.P.45/2018
5.
Muhammad Osama & others
In CMA 203/18
6.
Taha Ahmed Train & others
In CMA 204/18
7.
Hubaid Haider & others
In CMA 205/18
8.
Shaniyaal Shahid & others
In CMA 206/18
9
Mahnoor Ahsan Bhoon & others
In CMA 207/18
10.
Ahmed Iqbal & others
In CMA 208/18
11.
Azeem Izhar & others
In CMA 209/18
… Respondent(s)
For the appellant(s)/
petitioner(s):
Mr. Muhammad Akram Sheikh, Sr. ASC
Syed Rifaqat Hussain Shah, AOR
(In C.As.3 & 4/2018 also in In CMA 203-209/18)
Sardar M. Latif Khan Khosa, Sr. ASC
Ch. Akhtar Ali, AOR
(In C.P.3412/2017)
Ch. Muhammad Ashfaq Bhullar, ASC
Mr. Mahmood A. Sheikh, AOR
Civil Appeal No.3 of 2018 etc.
-: 2 :-
(In C.P.45/2018)
For the respondent(s):
Respondent in person a/w father
(For respondent No.1 In C.A.3/2018)
Mr. Munawar-us-Salam, ASC
Barrister Tariq Saeed Rana, Legal Advisor,
Shalamar Medical College, Lhr.
(For respondent No.8 in C.A.3/2018)
Syed Ali Zafar, ASC
Mr. Munawar-us-Salam, ASC
Mr. Zahid Nawaz Cheema, ASC
(For respondent No.1 in C.A.4/2018)
Mr. Muhammad Akram Sheikh, Sr. ASC
Syed Rifaqat Hussain Shah, AOR
(For respondent No.2 in C.P.3412/2017)
Commander (R) Farasat Ali, Deputy
Registrar, NUMS
(For respondent No.6 in C.A.3/2018)
Mr. Ahsan Masood, Legal Advisor, CMH
Lahore Medical College
(For respondent No.7 in C.A.3/2018)
Dr. Arshad Ali Khan, AMS + Usman Rana,
Litigation Officer
Ch. Muhammad Attique, Legal Advisor, UHS
(For respondents No.3 & 4 in C.A.3/2018)
For Federation:
Mr. Ashtar Ausaf Ali,
Attorney General for Pakistan
Mr. Muhammad Waqar Rana, Addl.A.G.P.
Ch. Aamir Rehman, Addl.A.G.P.
On Court’s notice:
Dr. Asim Hussain
Date of Hearing:
12.01.2018
ORDER
MIAN SAQIB NISAR, CJ.— C.M.A. Nos. 203 to 209/2018
are allowed office is directed to number the civil petitions.
2.
For the reasons to be recorded later, Civil Appeals No. 3
and 4 of 2018, Civil Petitions No. 45 and 64 to 70 of 2018 are
dismissed; whereas Civil Petition No.3412/2017 is converted into an
appeal and allowed. The Pakistan Medical and Dental Council (PMDC)
constituted under the law and any Executive Committee constituted
by or under the law and presently working are dissolved and till the
Civil Appeal No.3 of 2018 etc.
-: 3 :-
appointment/election of the fresh Council and the Executive
Committees in accordance with law, we are constituting an ad-hoc
Council to perform the functions and run the affairs of PMDC in
accordance with the relevant law. The Council shall comprise of the
following:
1.
Mr. Justice Mian Shakirullah Jan, former Judge of this
Court (Chairman);
2.
The Attorney General for Pakistan (Member) or in case of
his non-availability, his nominee/representative;
3.
Federal Secretary Health, Islamabad (Member);
4.
Surgeon General of Pakistan Armed Forces (Member);
5.
Vice Chancellor of the National University of Medical
Sciences (NUMS) (Member);
6.
Vice Chancellor University of Health Sciences, Lahore
(Member);
7.
Executive Director, Jinnah Post Graduate Medical Centre,
Karachi (Member);
8.
Vice Chancellor Khyber Medical University, Peshawar
(Member); and
9.
Principal Bolan Medical College, Quetta (Member);
2.
The above Council will take over and run the affairs of the
PMDC immediately and its first meeting shall be convened on
18.01.2018. The present registrar of PMDC shall continue to work.
CHIEF JUSTICE
JUDGE
JUDGE
ISLAMABAD.
12th January 2018.
Mudassar/
| {
"id": "C.A.3_2018.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE IJAZ UL AHSAN
MR. JUSTICE YAHYA AFRIDI
MR. JUSTICE JAMAL KHAN MANDOKHAIL
FA)
CIVIL APPEAL NO.401 of 2015
(Against the judgment dated 12.12.2014 passed by
the Lahore High Court, Rawalpindi Bench, Rawalpindi
in Civil Revision Petition No.437-D of 2001).
Province of Punjab through Secretary
Housing and Physical Planning Department,
Government of the Punjab, Lahore and others
APPELLANTS
VERSUS
Syed Zia Ui Hassan Zaidi and others RESPONDENTS
For the Appellant(s):
Barrister Qasim Ali Chohan, Addl.AG, Pb.
Zaheer Ahmed, Dy. Director (PHATA)
Ismail Ch. Head Draftsman
For the Respondent(s):
Syed Moazarn Ali Rizvi, ASC
Syed Rafaqat Hussain Shah, AOR
Date of Hearing:
19.0 1.2022
JUDGMENT
IJAZ UL AHSAN, J-. Through this appeal, the
Appellants have challenged the judgment of the Lahore High
Court, Lahore dated 12.12.2014 passed in Civil Revision No.
437-D of 2001 (hereinafter referred to as "Impugned
Judgment"). The Respondents through their Civil Revision
Petition had challenged the judgment and decree dated
03.05.2001 whereby the Appellate Court set-aside the
judgment and decree dated 2 1.01.1998 passed by the learned
trial Court and decreed the suit for declaration and
consequential relief filed by the Respondents.
2. The brief facts giving rise to this its are that the
Respondents filed a suit for declaration challenging the
acquisition of land measuring 09 Kanals 16 Marlas failing in
Khasra No. 505/62 situated in Khawaspur, Jhelum
(hereinafter referred to as the "Disputed Land"). The
Respondents belonged to the Shia community and started
using the Disputed Land as "Karbala". It was claimed by the
Respondents that the Disputed Land was transferred to the
predecessor-in-interest of the Respondents. After the death of
the said predecessor-in-interest, Respondent No. 01 (Syed Zia
ill Hassan Zaidi) was appointed as the Administrator of the
Disputed Land. In 1973, the Appellants acquired the land for
the purpose of Area Development Scheme-I for low-income
housing at Jhelum (hereinafter referred to as the "Scheme").
This gave rise to protests by the Shia community of Jhelum.
Resultantly, a revised layout plan for the Scheme was placed
before the Director of Housing and Physical Planning,
Rawalpindi on 17.10.1973. The said Director approved the
revised layout plan on 09.01.1974. Ultimately, vide letter
dated 29.03.1982, it was recommended that the Disputed
Land should be kept as open space and not included in the
Scheme and, vide letter dated 03.09.1986, it was approved
that the Disputed Land would be excluded from the Scheme.
On the contrary, the Disputed Land was transferred to the
Education Department vide letter dated 15.09.1987 for the
construction of a school. The letter dated 15.09.1987 was
challenged by the Respondents by filing a suit for declaration
along with consequential relief. The trial Court after framing
a
issues and recording evidence, dismissed the suit of the
Respondents vide judgment and decree dated 21.01.1998.
Aggrieved, the Respondents filed an appeal before the learned
District Judge which was allowed vide judgment and decree
dated 03.05.2001. The Appellants filed a Civil Revision
Petition thereagainst which was dismissed vide the Impugned
Judgment. Aggrieved thereof, the Appellants have approached
this Court.
3.
Leave to appeal was granted by this Court vide
order dated 11.05.2015 in the following terms: -
"Learned Additional Advocate General has inter alia
contended that the land in dispute was acquired with other
land in the year 1973 for Area Development Scheme-I to
provide houses to low income citizens and subsequently its
possession was transferred to Education Department for
establishment of Elementary College on 3.2.1990; that the
claim of the respondents is that the land is being used by the
Shia sect for the purpose of 'Karbala' etc and could not be
transferred for establishment of College; that the land was
¶Banjar Qadeem' and was never shown or entered as
'Karbala' in the revenue record at the time of acquisition; that
in the present case the courts below have gone beyond the
pleading that Khasra No. 505-62 was never acquired in the
year 1973; that the learned Single Judge in Chambers of the
High Court has not discussed the case and has erroneously
reproduced the findings of the learned Appellate Court and
affirmed that the suit was rightly dismissed by the learned
trial Court."
4.
The learned Additional Advocate General, Punjab
has argued that the Disputed Land was acquired as part of
the Scheme in respect of which compensation was paid to the
Respondents and the possession of the land was
subsequently delivered to the Education Department on
03.02.1990 for construction of Elementary College, Jhelum.
He has further argued that the land was shown as 'Banjar
Qadeem' and not as 'Karbala' in the revenue record. He has
further argued that an amended notification was issued in
supersession of the Notification issued under Section 4(1) of
the Punjab Acquisition of Land (Housing) Ordinance, 1973
dated 27.03.1973 (hereinafter referred to as the
"Notification"). It has been argued that the purportedly,
through the amended notification, the Disputed Land was
acquired for the Scheme.
5. The learned ASC for the Respondents has argued
that the Disputed Land was mentioned as 'Karbala' in the
revenue record and that Moharram processions were taken to
the said land for the past many years. He has further argued
that the Director of Housing and Physical Planning
specifically excluded the Disputed Land from the Scheme. As
such, it could not have been transferred to the Education
Department because the Disputed Land belonged to the
Respondents and not to the Appellants. The learned ASC has
relied upon the notification dated 29.03.1982 whereby the
Disputed Land was declared as 'open space' by the A.0 (D)
acting on behalf of the Commissioner, Rawalpindi. He has
further relied upon the notification dated 03.09.1986 whereby
the Chief Minister Punjab excluded the Disputed Land from
the Scheme. The learned ASC has argued that the Disputed
Land was not mentioned in the Notification under Section 4 of
the Land Acquisition Act, 1894. He has argued that if the
Disputed Land was to be mentioned in the Notification, the
prescribed procedure starting from the notification, inviting
objections, providing a hearing and then issuing an award
ought to have been followed, which was not done in the case
at hand. The learned Counsel has further argued that the fact
that the Disputed Land was not mentioned in the Notification
is admitted by witnesses/ revenue officials.
6. We have heard the learned Counsel for the parties
and have perused the record. The issues which fall before this
Court for determination are as follows: -
(i)
Was the Disputed Land mentioned in the
Notification?
(ii)
Could an Award transferring the Disputed Land in
favour of the Education Department be made?
WAS THE DISPUTED LAND MENTIONED IN THE
NOTIFICATION?
7. We have on record the Notification issued by the
Office of the Deputy Commissioner, Jhelum which reads as
follows:-
"No. 3401 -G/DRA - Whereas it appears to the undersigned
that the land is needed by the Government for a housing
scheme known as Area Development Scheme for Low Income
Housing at Jhelum. It is hereby notified under Section 4(1) of
the Punjab Acquisition of Land (Housing) Ordinance, 1973 for
information of the public that the Land in the locality in the
schedule below is to be required for this purpose...."
The Notification was issued under Section 4(1) of
the Punjab Acquisition of Land (Housing) Ordinance, 1973
(since repealed) (hereinafter referred to as the "Act of 1973"),
which reads as under: -
Publication of preliminary notification and power of
officers thereupon. - (1) Whenever it appears to the Deputy
Commissioner that land in any locality is needed or is likely
to be needed for any housing scheme a notification to that
effect shall be publish in the Official Gazette and the collector
shall cause public notice of the substance of such notification
to be given at convenient places in the said locality."
It is mentioned in the Notification that the Land in
the locality mentioned in the schedule to the Notification was
being acquired for the development of the Scheme. We have
gone through the said schedule and are unable to agree with
the argument that the Disputed Land was mentioned therein.
The said schedule mentions various khasra numbers which
were acquired in the locality of Khawaspur. However, the
Disputed Land is not mentioned anywhere in the said
schedule. The entire acquisition for the Scheme was carried
out based on the Notification which has no mention of the
Disputed Land. When confronted with this, the learned AAG
submitted that an amended notification was issued in
supersession of the Notification whereby, the land in question
was acquired for the Scheme. We have repeatedly asked the
learned AAO to show us any such notification from the
record. He has been unable to do so.
8. On the contrary, there is a notification dated
21.05.1973 on the record issued by the Office of the Deputy
Commissioner, Jhelum which reads as follows: -
'No. 4696-41DRA - Whereas the land measuring about 100
acres which was required for housing scheme known as
Area Development Scheme for Low Income Housing at
Jhelum in the revenue estates of Rajipur, Khawaspur and
Shahpur is no longer required for the said purpose. Now
therefore, I, Mr. Muhammad Parvez Masood, C.S.P. Deputu
Commissioner, Jhelum herebu withdraw notification No.
3401-GIDRA issued under Section 4(1) of the Punjab
Acquisition of Land (Housing) Ordinance, 1973 in the
EXTRAORDINARY GAZETTE Punjab Gazette of 27th March
1973 at pages 533 to 538" (Underlining is ours)
The alorenoted notification establishes two facts;
that the land mentioned in the Notification was no longer
required for the purpose mentioned in the Notification, and,
that the Notification was withdrawn by the competent
authority i.e., the Deputy Commissioner, Jhelum as provided
in Section 4(1) of the Act of 1973. There is nothing on the
C
record to show that the aforenoted notification was ever
challenged by the Appellants or, that a subsequent
notification was issued in supersession of the ibid
notification. The learned High Court has correctly held that
since the Disputed Land was purportedly acquired by the
Appellants, it was for them to positively prove through cogent
evidence that it was included in the Notification. The learned
High Court has further held that the revised map of the
locality was issued without approval and notification of the
competent authority. The Notification was issued for a specific
purpose. The said purpose was that land was required by the
Government for a Scheme. The fact that the said Notification
has been withdrawn shows that the Government changed its
intention and decided that the land in question measuring
800 acres was no longer required.
9. The subsequent notification was issued by the
Deputy Commissioner who, as per Section 19 of the Act of
1973 was perfectly empowered to do so. Section 19 of the ibid
Act reads as under: -
"The Deputy Commissioner, shall be at liberty to withdraw
from the acquisition proceedings of any land, notified under
this Act, of which possession has not been taken:
Provided that Government or an Official Development
Agency, as the case may be, has informed the Deputy
Commissioner in this behalf in writing:
Provided further that in case of non-acceptance of the
award even as a result of the appeal made to the
Commissioner the right of withdrawal from the
acquisition may be exercised by the Government or an
Official Development Agency, as the case may be."
The first part of Section 19 of the Act of 1973
establishes that the Deputy Commissioner was at liberty to
withdraw from the acquisition proceedings. The fact that a
subsequent notification withdrawing the earlier Notification
was issued further shows that possession of the land sought
to be acquired was not taken by the Appellants. It is worth
mentioning that, in the absence of any material suggesting
that the subsequent notification was challenged, this Court
under Article 129(e) of the Qanun-e-Shahadat Order, 1984
may presume the existence of the fact that the Disputed Land
was not required by the Appellants. Article 129(e) of the ibid
Order reads as follows: -
"129. Court may presume existence of certain facts: The
Court may presume the existence of any fact which it thinks
likely to have happened, regard being had to the common
course of natural events, human conduct and public and
private business, in their relation to the facts of the particular
case."
The allegedly amended notification through which
the land was statedly acquired or transferred to the
Education Department has neither been brought on the
record nor has it been shown to us that the said purported
notification was published in the Official Gazette. Section 4(1)
of the Act of 1973 uses the word "shall" making it obligatory
upon the Appellants to publish any and all notifications in
respect of acquisition under Section 4(1) of the Act of 1973.
The requirement of publication of a notification under Section
4 is an essential requirement in acquisition proceedings
because it is likely that the rights and interests of landowners
will be adversely affected. Reliance in this respect is placed
on Saghir Ahmed through Legal Heirs p. Province of
Punjab through Secretary, Housing and Physical
Planning Lahore and others (PLD 2004 Supreme Court
261) wherein, this Court held as follows: -
"However, a notification under section 4 of the Act
specifically requires its publication in the official Gazette, if it
appears to the Deputy' Commissioner that a particular land
of a particular locality is needed or is likely to be needed for
any housing-scheme. This is followed by another legal
requirement of a public notice of the substance of such
notification to be given at convenient places in that locality.
The publication of notification under section 4 in the official
Gazette has been made necessary as the rights and interests
of the land owners are likely to be adversely affected by the
acquisition proceedings. According to definition of word
"notification" as given in section 2(41) of West Pakistan
General Clauses Act, 1956, "it shall mean a notification
published under the proper authority in the official Gazette"
in the absence of anything repugnant in the subject or
context."
The fact that no such notification has been shown
from the record leaves no doubt in our minds to hold that the
said subsequent notification, as per the record, was never
issued by the Appellants. In the absence of such documentary
evidence, this argument of the learned AAG fails and is
accordingly held to be unsustainable. On the contrary, we
have on record two other notifications, the effect of which is
that acquisition of the Disputed Land was withdrawn by the
Appellants.
COULD AN AWARD TRANSFERRING THE DISPUTED LAND
IN FAVOUR OF THE EDUCATION DEPARTMENT BE
MADE?
10. The learned Counsel for the Respondents has
argued that the Disputed Land was transferred to the
Education Department through the impugned Award
whereby, inter alia, the entire Khasra No. 62 was transferred
to the Education Department for the construction of a school.
It has been argued that the Award made in favour of the
Education Department , was illegal because there was no
notification published in the official gazette to support the
transfer as required by Section 4 of the Act of 1973. It has
further been argued that even if it is assumed that the land
was acquired, the Disputed Land could not have been used
for any other purpose other than the one which is mentioned
in the Notification. The learned High Court in this respect has
held that the Assistant Director of the Appellant-Department
appeared as DW-3 and admitted that the Disputed Land was
not mentioned in the Notification. The learned High Court has
held that this fact has been admitted by other DWs as well
and these admissions were not taken into consideration by
the trial Court. As such, the Respondents could not have
been compelled to receive compensation through notice
tendered in evidence as Exh.PW-9/1 1.
11. We have on the record various letters from the
revenue authorities and the Director of the Appellant-
Department, one of which is a letter issued by the A.0 (D) for
the Commissioner, Rawalpindi Division dated 29.03.1982
paragraph 2 of which reads as follows: -
"The proposal of the Deputy Commissioner, Jhelum, referred
to in your office memorandum No. SOD-1-7-4179 dated 8th
July 1979 to keep the area as an open space after excluding
the same from the Scheme is supported by this of with
the condition that it does not lead to the impression that any
community has got the license to make any construction on
it." (underlining is ours)
Another letter in this respect is dated 18. 10. 1973
undersigned by the Director of the Appellant-Department
which reads as follows: -
I tie siae PUITLt&U (JILL UL4 tiLe IJCLtLLUHW IL UCL(L4 L4'U. lAO
'Karbala' has been adjusted in the recentl y revised layout
plan. A copy of the layout plan had already been submitted
to you for approval vide this office memo No. 2332 dated
17/x/73." (Underlining is ours)
The aforenoted letters establish that the Disputed
Land was in possession of the Respondents and, that the
Appellant-Department itself excluded it from the Scheme.
This is further supported by the letter dated 06.11.1978
issued to the Deputy Director of the Appellant Department by
the Director-General of the Appellant Department wherein it
was stated that the Disputed Land may be kept as an open
space and, the viewpoint of the Deputy Commissioner,
Jhelum may be obtained as well. The fact that the Disputed
Area was excluded from the Scheme is also mentioned in the
letter of the Section Officer (D-II) dated 03.09.1986 stating
that the Chief Minister had excluded the Disputed Land from
the Scheme.
12.
The fact that the Disputed Land was included in
the Award despite the availability of various letters including
the letter of the Chief Minister stating that the Disputed Land
was excluded from the Scheme leaves us in no manner of
doubt that the inclusion of the Disputed Land in the Award
was illegal and could not have been done, especially without
issuing any notification under Section 4 of the Act of 1973.
13.
The Notification mentions that the Disputed Land
was being acquired for the Scheme. Subsequently, the
Disputed Land was transferred to the Education Department
for the construction of a school. The learned Counsel for the
Respondents has argued that the Appellant-Department, even
in a best-case scenario, could not have transferred/ used the
land for any other purpose except that which is mentioned in
C
the Notification. The intent and purpose of the Government
were unambiguous as seen from the Notification. There was
no room for the Appellant Department to read something into
the Notification, which was not there. Reliance in this regard
is placed on Province of HP through Chief Secretary,
Peshawar and others v. Farasatullah and others (2020
SCMR 1629).
14. The Notification is specific in its purpose and
object and any interpretation of the Notification which is not
in line with its terms would be violative of the law. The
purpose for which the land has been transferred to the
Education Department is entirely different from that which is
mentioned in the Notification. A notification issued by the
Government essentially reveals its intention. One of the
purposes of publishing a notification is so that those who may
be affected by it can know the intention of the Government as
mentioned in the notification itself. Essentially, a notification
is a means used by the Government to communicate with the
general public regarding inter alia, any projects et cetera that
it might prospectively undertake. The intent behind the
notification or, the purpose for issuing the same must be
mentioned because, as noted above, the rights of different
stakeholders are involved. This is one of the reasons that
there are various safeguards provided in the Act of 1973 such
as Section 6 which requires, by using the words "Shall", the
publication of a notice to make the intention of the
Government to possess a certain piece of land clear.
15. If the said intention of the Government or the area
sought to be acquired changes after the Notification under
Section 4 has been issued; a fresh notification or an
addendum to the earlier notification can be issued to enable
the parties affect by it to avail remedies provided by the law.
Further, the acquisition of the land does not ipso facto mean
that the Appellant-Department could use the acquired land
for any purpose that it considered appropriate. The acquiring
agency/ department/ entity is restricted in its use of the land
to the purpose mentioned in the notification and for no other
purpose. Further, no additional land can be included in the
award which was not mentioned in the Notification under
Section 4 or any addendum or fresh notification after fulfilling
all legal and procedural formalities required to be fulfilled in
this regard. That being so, and land comprised in Khasra No.
505/62 having not been included in the Notification under
Section 4 or any subsequent notification for addendum
issued thereto, the Award could not include Khasra No.
505/62. The Appellant-Authority exceeded its jurisdiction in
doing so and it is therefore held that the Award was, to the
extent of the inclusion of Khasra No. 505/62, illegal. There is
nothing in the Act of 1973 to the effect that the Deputy
Commissioner/ Collector had the authority to add a Khasra
number to either a notification or the Award of his own
volition without following proper rules and procedure. As
such, the Award could not have been issued without first
complying with the mandatory provisions of the law.
1
found to be without merit. It is accordingly
I16.
The Impugned Judgment of the learned High
Court dated 12.12.2014 is well reasoned, proceeds on the
correct factual and legal premises and has correctly applied
the relevant law, rules and regulations to the facts and
circumstances of the cases before us. No legal, or
jurisdictional defect, error or flaw in the Impugned Judgment
has been pointed out to us that may furnish a valid basis or
lawful justification to interfere in the same. The Learned AAG
has not been able to persuade us to take a view different from
the High Court in the facts and circumstances of the instant
Appeal. We accordingly affirm and uphold the Impugned
Judgment of the Learned High Court.
17.
For the reasons recorded above, this appeal is
Islamabad, the
191h January 2022
.Haris Ishtiaq LC/*
7Qt A pproved For Reporting
| {
"id": "C.A.401_2015.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
( Appellate Jurisdiction )
PRESENT:
MR. JUSTICE NASIR-UL-MULK, HCJ.
MR. JUSTICE AMIR HANI MUSLIM
MR. JUSTICE IJAZ AHMED CHAUDHRY
CIVIL APPEAL NO.404/2011
(On appeal against the judgment dated 2.4.2011 passed by the High
Court of Sindh, Karachi in CP.D-932/2009)
Ali Hassan Brohi
Vs. Province of Sindh thr. Chief
Secy. and others
CIVIL APPEAL NO.405/2011
(On appeal against the judgment dated 2.4.2011 passed by the High
Court of Sindh, Karachi in CP.D-932/2009)
Ali Azhar Baloch
Vs.
Province of Sindh and others
CIVIL APPEAL NO.407/2011
(On appeal against the judgment dated 2.4.2011 passed by the High
Court of Sindh, Karachi in CP.D-932/2009)
Abdul Ghani Jukhio
Vs.
Province of Sindh, thr. Chief
Secy. and others
CIVIL APPEAL NO.409/2011
(On appeal against the judgment dated 2.4.2011 passed by the High
Court of Sindh, Karachi in CP.D-932/2009)
Syed Abid Ali Shah
Vs.
Province of Sindh, thr. Chief
Secy. and others.
CIVIL APPEAL NO.411/2011 AND CMA. NO.4339/2013
(On appeal against the judgment dated 2.4.2011 passed by the High
Court of Sindh, Karachi in CP.D-932/2009)
Dr. Aftab Ahmed Mallah
Vs. Dr. Nasimul Ghani Sahito etc
CIVIL APPEAL NO.412/2011 AND CMA. NO.4340/2013
(On appeal against the judgment dated 2.4.2011 passed by the High
Court of Sindh, Karachi in CP.D-932/2009)
Dr. Muhammad Ali
Vs. Dr. Nasimul Ghani Sahito etc
CIVIL APPEAL NO.413/2011
(On appeal against the judgment dated 2.4.2011 passed by the High
Court of Sindh, Karachi in CP.D-932/2009)
Ahmed Hussain
Vs. Dr. Nasimul Ghani Sahito etc
CIVIL APPEAL NO.495/2011
(On appeal against the judgment dated 2.4.2011 passed by the High
Court of Sindh, Karachi in CP.D-932/2009)
Rasool Bux Phulphoto
Vs.
Province of Sindh thr. Chiefr
Secy. and others
2
ATTENDANCE
For the Appellant(s)
(in CA.404 & 405/11)
:
Syed Iftikhar Hussain Gillani, Sr. ASC
(in CA.407/11)
:
Mr. Adnan Iqbal Ch, ASC
(in CA.409/11)
:
Mr. Asim Mansoor Khan, ASC
(in CA.411 & 412/11)
:
Mr. Hamid Khan, Sr. ASC
(in CA.413/11)
:
Mr. Abdul Rahim Bhatti, ASC
(in CA.495/11)
:
Miangul Hassan Aurangzeb, ASC
For Respondent(s)
For Govt. of Sindh.
:
Sarwar Khan Add. A.G Sindh
Abdul Fateh Malik A.G. Sindh
Rafique Mustafa Shaikh,
Add. Secretary Services(S&GAD)
Ghulam Ali Bharmani,
Dy. Secretary Services(S&GAD)
CAs. 404, 405, 407, 409 &
411 TO 413/2011
3-13,15,16,18-25,27-41,43-49,
51 & 52:
CA.495/2011
3-12,14,15,17-24,26-31,33-
40,42-48, 50,51
:
Ch. Afrasiab Khan ASC
Date of hearings
:
5th, 6th, 10th June, 2014,
15th to 17th & 21st to 24th October, 2014.
JUDGMENT
AMIR HANI MUSLIM, J.-
C.A. No.413 of 2011
Ahmed Hussain vs. Dr. Naseem ul Ghani Sahito
by Mr. Adbul Rahim Bhatti, ASC
1.
Mr. Abdul Rahim Bhatti, learned ASC submitted that
on 24.10.1994, the Appellant was appointed as Protocol Officer in
BS-17 in CM Secretariat. The post of Protocol Officer falls outside
the purview of the Public Service Commission and in 2007 the post
was upgraded to BS-18. Thereafter, on 03.01.2009 he was
3
absorbed as Deputy Secretary in Provincial Secretariat Service
(PSS) with backdated seniority.
2.
The learned Counsel for the Appellant contended that
the writ filed by the Respondent was not in the nature of quo-
warranto. According to him, a writ of quo-warranto could not be
filed on opaque technicalities. He next contented was that the
subject matter of the writ relates to the terms and contention of
service, therefore, a writ in the nature of quo-warranto did not lie.
In support of his contention, he has relied upon the case of Khalid
Mahmud Advocate v. Muhammad Yaseen (1991 SCMR 1041). The
learned counsel has contended that the view in the case of Khalid
Mahmud (supra) has consistently been followed by this Court. He
submitted that if a Civil Servant is aggrieved by an order of the
Departmental Authority, he is required to file an Appeal before the
Service Tribunal. According to him, the jurisdiction of the Service
Tribunal cannot be bypassed by the Respondents claiming relief
from the High Court under the garb of fundamental rights. He
relied upon the case of Khalid Mahmood Wattoo v. Government of
Punjab (1998 SCMR 2280) by submitting that a distinction has
been drawn by this Court between the exercise of jurisdiction of
the High Court under Article 199 of the Constitution and the bar
placed on such an exercise by Article 212 of the Constitution. He
contended that the Respondent could not have filed a Petition,
which pertains to the term and condition of their service before the
High Court. The learned Counsel has relied upon the case of
Muhammad Liaquat Munir Rao vs Shams ud Din and others (2004
PLC (CS) 1328) and contended that a writ in the nature of quo-
warranto could only be filed before the Tribunal and contended
4
that the issue pertaining to the terms and conditions could not be
gone into by the High Court for want of jurisdiction, which falls
within the purview of the Services Tribunal. He also cited case Dr.
Azim-ur-Rehman Khan Meo vs Government of Sindh (2004 PLC (CS)
1142) in support of his contention.
3.
The learned Counsel submitted that the judgment
under review, should apply prospectively. He further contended
that the judgment is discriminatory, as in some cases, the question
of absorption has been saved by the High Court of Sindh under
Rule 9-A. The learned Counsel submitted that the Petitioner was
appointed under Rule 9(1) as he satisfied all the requirements of
qualification, experience and Grade.
4.
According to the learned Counsel, the appointment of
the Appellant was made by the Competent Authority on following
the codal formalities. He submitted that the Appellant could not
be penalized for the act of the Government functionaries. He
submitted that those officers, who have appointed the Appellant in
violation of the rules may be proceeded against. Counsel relied
upon the cases (1996 SCMR 1350), Iqbal Hussain Sheikh and 2
others v. Chairman FBR (2013 SCMR 281), Fahd Asadullah Khan v.
Federation of Pakistan (2009 SCMR 412) and (2006 SCMR 678) to
establish that if an order is passed by an authority erroneously or
in violation of rules, it should firstly be determined which authority
is responsible for the order. The learned Counsel has relied upon
the case of Dr. Nighat Bibi vs Secretary, Ministry of Health (2009
SCMR 775) in support of his contention, wherein absorption was
saved. He cited the case of Najam Abbas vs Superintendent of
5
Police (2006 SCMR 496) in support of his contention that no officer
should be penalized for the act of functionaries.
C.A. No.404, 405 of 2011
Ali Hassan Brohi
(CA404/2011)
Ali Azhar Baloch
(CA.405/2011) v. Province of Sindh etc
by Syed Iftikhar Hussain Gillani, Sr.ASC
5.
The learned Counsel contended that he is in complete
agreement with the judgment striking down the legislative
instruments, however, the Sindh Government has misled this
Court, and the Court believed the submissions made and passed
the order. The Counsel submitted that this petition challenges para
No.175 of the judgment under review.
6.
The learned Counsel contended that on 19.09.1989,
the Appellant Ali Hassan Brohi was appointed in BS-18 as Director
in Ministry of Sports and Tourism, Government of Pakistan. After 5
years, on 02.03.1994, the Government of Sindh requisitioned his
services on deputation in BS-18. On 07.11.1995, he was absorbed
as Deputy Secretary in Provincial Secretariat Service (PSS).
7.
The learned Counsel contended that the issue before
the Court relates to the legality of initial absorption of the
Appellant. He submitted that this Court assumed jurisdiction in
the matter under Article 184(3) of the Constitution, to examine the
vires of the legislative instruments, therefore, this Court could not
strike down the provisions which were not challenged before it. He
further
contended
that
the
judgment
should
be
applied
prospectively.
8.
The learned Counsel submitted that the instruments
struck down were enacted to protect absorptions, however, the job
6
of the Court is to strike down the instruments and not to deal with
the cases of absorptions that have already taken place. He next
contended that the date of 1994 was not in the mind of the author
judge and there is no proof as to how the AG Sindh arrived at this
cut off date. Counsel submitted that the constitutional duty of this
Court ends the moment the law is struck down and what happens
afterwards would not be the concern of this Court. The Counsel
placed reliance on the case of (PLD 2013 SC 829) in support of his
contention that the judgment has to be prospective.
9.
The learned Counsel next referred to the Sindh Civil
Servants (Regularization of Absorption) Act, Act 17 of 2011, and
submitted that the cut off date of 1994 is arbitrary, based on the
statement made by the learned AG Sindh. All illegal absorptions
should be declared invalid, and not only those made post-1994.
The Counsel contended that the Provincial Government has misled
the Court and out of 1161 employees who were absorbed, in the
similar manner, the action has only been taken against 278
Officers.
C.A. No.495 of 2013
Rasool Baksh Phulpoto v. Province of Sindh
by Mr. Miangul Hassan Aurangzeb, ASC
10.
The Counsel submitted that the Appellant has retired
five months ago but his pension has been stopped. He contended
that when the judgment under review was pronounced, the
Appellant was MD of Pakistan Housing Authority and had been
appointed in the Federal Government on deputation.
11.
The Counsel contended that, in 1973, he was
appointed as a teacher in the Directorate of Technical Education,
7
Government of Sindh in BS-16. In May 1988, he was transferred
and posted as Additional Private Secretary to CM Sindh in BS-16.
He next contended that on 26.06.1988, the Federal Government
requisitioned his services and he was sent on deputation as PS to
Federal Minister Housing. The Appellant applied for the position of
Deputy Director, Directorate of Special Education, a fresh
appointment on ad hoc basis in BS-18. Then, in 1990, he was
selected as Additional DG, Peoples Works Program and was
transferred to the Local Government in the same grade. The
Counsel contended that the department was devolved to the
provinces, thus he became surplus. Thereafter, the CM Sindh
wrote a letter to the Establishment Division stating that the
Appellant has been absorbed w.e.f 25.05.1991 in the Sindh
Government. The Counsel submitted that the Appellant was duly
regularized in Provincial Government but has been reverted to the
Federal Government under the impugned judgment and is not
receiving any pension.
C.A. No.407 of 2011
Abdul Ghani Jukhio v. Province of Sindh
by Mr. Adnan Iqbal Ch., ASC
12.
The learned Counsel submitted that on 22.11.1989,
the Appellant was appointed as PRO in Directorate of Sindh Kachi
Abadi Authority (SKAA) in BS-16. In 1995, he was appointed PRO
to Minister Population Welfare in SKAA and the post was upgraded
to BS-17 in May 1994. On 18.02.1996, he was appointed PS to
Minister for Excise on deputation. He subsequently came back to
his parent department from 1997 to 1999 as PRO. On 01.09.1997,
he was promoted to BS-18 and was then appointed as Deputy
8
Director Coordination in SKAA. On 16.12.2002, he was appointed
Town Municipal Officer in S&GAD and was reverted to his parent
department in 2003 as Deputy Director Administration. Thereafter,
in 2004, he was appointed Director, Field Office of SKAA in BS-19.
On 31.01.2007, the Appellant was promoted to BS-19 and on
30.04.2007, he was appointed EDO Jamshoro in Ex PCS cadre.
The Counsel contended that on 18.11.2008, the Appellant was
absorbed as Additional Secretary in Provincial Secretariat Service
(PSS) in BS-19 and his name was placed at the bottom of the
seniority list. On 07.03.2011, he was appointed Secretary Mines
and Minerals in BS-20.
13.
The Counsel submitted that the Appellant is not
posted anywhere and his lien with the SKAA has been terminated.
He contended that the Appellant is not a beneficiary of any
legislative instruments which protect absorptions. These statutes
were limited to protect the officers who were on deputation and
were
subsequently
absorbed
under
the
statutes
and
the
Appellant‟s absorption does not fall under it.
14.
The learned Counsel submitted that absorption of the
Petitioner is valid not only under Rule 9-A but under Rule 9(1) as
well and the appointment procedure provided in these Rules was
duly followed. He contended that the Appellant was a Civil Servant
since his first appointment and service Rules of SKAA were not
framed at that time. He contended that there are two parallel
structures: one is the Civil Services and the other posts in
connection with affairs of the Province. He contended that he
Sindh Kachi Abadi Act was meant for both these servants and if
those in Civil Services are allowed to move laterally to Government
9
departments, those holding posts in relation to affairs of the
province should also be allowed to do the same.
15.
He next contended that section 26 of the Composition
and Cadre Rules of 1954 allows for appointment by transfer of
private persons as well. He further contended that Section 7(2)(a)
of Public Service Commission Act, 1989, envisages movement from
Government Service to Civil Service and he relied on Hadi Buksh v.
Sindh (1994 PLC (CS) 924) to submit that such movement has
been endorsed by this Court. He lastly contended that in Nemat
Ullah Butt v. Government of Punjab (1988 SCMR 1453), this Court
held that there is nothing in the Act that prevents Government
from creating additional, separate cadres for Government servants
after absorption.
C.A. No.409 of 2011
Syed Abid Ali Shah vs. Province of Sindh
by Mr. Asim Mansoor Khan, ASC
16.
The Counsel submitted that in 1976, the Appellant
was appointed as Management Trainee in the Board of
Management,
Sindh
for
nationalized
Ghee
Industries.
On
16.8.1997, he was appointed as Managing Director at Maqbool Co.
Ltd. when the Sindh Government requisitioned his services. On
24.10.1997, the Appellant was sent on deputation for 3 years to
the Ministry of Industries and Production. On 15.11.1997, he was
appointed Cane Commissioner in BS-19. Then on 05.04.1998, he
was transferred as DG, Bureau of Supply and Prices, Sindh.
Subsequently, on 15.11.1998, he was repatriated to Ghee Corp.
and on 14.01.1999, his services were placed at the disposal of
Population Welfare department (PWD). On 18.01.1999, he was
10
appointed as Additional Secretary, PWD and on 09.08.1999, he
was absorbed in PWD in relaxation of rules. Then, on 30.09.1999,
Ghee Corp. relieved him but, on 18.12.1999, the Government sent
a notification for repatriation of the Appellant. However, on
21.12.1999, the Secretary, Sindh Government, submitted that the
Appellant has been absorbed therefore he cannot be repatriated.
17.
The Counsel submitted that under an amendment to
section 8 of the governing statute, the employees of PWD were
declared Civil Servants. At the time of the judgment, the Appellant
was appointed Secretary Livestock in BS-20. Counsel contended
that he was de-notified on 02.07.2013 and repatriated to Ghee
Corp. even though he had been merged in the Government of
Sindh in PSS and Ghee Corp. was declared defunct. The Appellant
retired one year after de-notification on 01.06.2014.
C.A. No.411 of 2011
Dr. Aftab Ahmad Malah v. Dr. Naseem ul Ghani
by Mr. Hamid Khan, Sr. ASC
18.
The learned Counsel contended that in the year 2000,
the Appellant Dr. Aftab was appointed Dental surgeon in BS-17 in
the Ministry of Health. On 05.09.2008, he was promoted as Senior
Dental Surgeon in BS-18 on the recommendations of committee
and with approval of the competent authority. On 07.10.2008, he
was transferred and posted as Deputy Secretary in BS-18 in the
Health Department, Government of Sind. Subsequently, on
18.11.2008, he was absorbed and inducted in PSS cadre in the
same grade and his name was placed at the bottom of the seniority
list.
11
19.
The Counsel contended that competitive examination
is not the only channel available for induction of officers, citing
Rule 9(1) as an example.
C.A. No.412 of 2011
Dr. Muhammad Ali v. Dr. Naseem ul Ghani
by Mr. Hamid Khan, Sr. ASC
20.
The Counsel contended that the Appellant holds a
degree of MSc Economics from Bradford University and in Sept.
2003, he received a Doctorate in Business Administration from
Florida. He attended National Management Course from NIPA,
Lahore and courses at Royal Institute of Public Administration,
London.
21.
The Counsel contended that on 18.06.1981, the
Appellant was appointed as Staff Officer in BS-17 in Agriculture
Development Bank of Pakistan (ADBP) and was prompted as
Assistant Director ADBP in BS-18. In 1993, he was promoted as
Joint Director in BS-19 and in 2001, the post was upgraded to
Director. In 2002, Governor of Sindh recommended the Appellant
for absorption in the Provincial Government as Secretary Food and
Cooperatives. On 12.07.2004, he was posted as Additional
Secretary in BS-19 in CM Secretariat on deputation. On
18.02.2005, he was appointed as Special Secretary (BS-20)
Implementation in CM Secretariat, w.e.f 17.7.2004 and on
14.03.2006, he was absorbed in PSS. The Counsel contended that
at the time of the judgment, the Appellant was on deputation to
the Federal Government as Joint Secretary, Drug Regulatory
Authority in BS-21. On 20.03.2013, he was promoted to BS-21 on
the recommendations of the Provincial Selection Board. The
12
learned Counsel contended that on 21.12.2006, he was relived by
ADBP due to his absorption in the Provincial Secretariat.
22.
The learned Counsel submitted that the subject matter
of the writ petition pertains to the terms and conditions of service,
therefore, the jurisdiction of the High Court is barred under Article
212 of Constitution, read with section 4 of Sindh Service Tribunal
Act. By filing a writ of quo-warranto, a question relating to terms
and conditions of service can only be determined by the Tribunal.
23.
The learned Counsel submitted that the Learned
Judges of High Court of Sindh ignored Rule 9(1). He contended
that the appointment of Dr. Aftab Malah was validly made under
Rule 9(1) and that of Dr. Muhammad Ali was also validly made
under section 24, as their services were requisitioned with the
approval of the competent authority. Counsel submitted that
appointment of Dr. Aftab Malah satisfied all three conditions laid
down under Rule 9(1) and that Rule 6A relates to promotion and
not appointment by transfer. Counsel submitted that lateral
movement is permitted but it is governed by certain rules, which
have been followed.
24.
The learned Counsel contended that their remedy lies
before the Service Tribunal, and not before the High Court; and
this judgment goes beyond the jurisdiction of the High Court.
While placing reliance on Superintendent Engineer Highways v.
Muhammad Khurshid (2003 SCMR 1241), Counsel submitted that
exclusive jurisdiction pertaining to terms and conditions of service
lies with the Tribunal. He next contended that in Managing
13
Director v. Ghulam Abbas (2003 PLC (CS) 796), it was held that
Service Tribunal could hear matters of absorption.
25.
The Counsel contended that a writ of quo warranto is
not available to one set of Civil Servants against another set of Civil
Servants. He submitted that if a colleague is allowed to challenge
another colleague‟s appointment, there would be no end to this;
there will be anarchy in the Civil Service structure. He placed
reliance on Dr. Azeem ur Rehman v. Government of Sindh (2004
SCMR 1299) and contended that if an appointment has been made
and there is something wrong with such appointment, the Tribunal
is the appropriate forum to challenge it.
26.
The learned Counsel submitted that when they filed a
writ of quo warranto, the Petitioners were bound to show as to how
they were aggrieved, which they have failed to do. The learned
Counsel contended that these writ petitions were hit by the
principle of laches. Dr. Aftaf Malah was transferred in 2008 and
Dr. M. Ali was appointed in 2006, while these petitions were filed
in May 2009. He placed reliance on the case reported as (2012
SCMR 280).
27.
The learned Counsel referred to section 24 of the Civil
Servants Act. The Counsel contended that the Appellant was highly
qualified and talented and there is always an exception available in
the Rules. The Counsel next contended that the principle of locus
poententiae is attracted as the appointment was validly made, he
was qualified and the appointment had taken effect, and he placed
reliance on Sarosh Haidar v. Muhammad Javaid (PLD 2014 SC
338). He further relied on the case reported as (PLD 1969 SC 407)
14
where it was held that the matter relating to salaries was against
law but since it had taken effect, it could not be taken back.
28.
The learned Counsel submitted that the High Court
could not consider Rule 9(1) since appointment could also be made
under it. The learned Counsel relied on Raunaq Ali’s case (PLD
1973 SC 236) in which a distinction was made between acts done
without jurisdiction and those done improperly or with some
irregularity. The Counsel contended that appointments have been
made and have taken effect. In such instances, jurisdiction should
be exercised very carefully. He also relied on Muhammad Hussain
Munir v. Sikandar (PLD 1974 SC 139). The Counsel lastly
submitted that legal principles laid down by this Court must
operate prospectively and he placed reliance on (2009 SCMR
1169).
29.
The learned Counsel, Ch. Afrasiab Khan, contended
that the cutoff date of 1994 was not determined in vacuum and
was based on data. The notification, dated 02.11.1994, at para. 6
of the Sindh High Court judgment, stated that 10% of
appointments shall be made by transfer from other departments.
This is why the learned AG Sindh submitted the date of 1994.
Furthermore, the appointments placed on record before the Court
were those made in 1994 and onwards, that is why the judgment
relates to the appointments made after 1994.
30.
The Counsel next contended that the judgment should
operate retrospectively as there are at least four conclusive
judgments of this Court in support of this point, including
Dr. Mobashir Hassan’s case. (supra).
15
31.
The Counsel lastly contended that the nomenclature of
the legislative instruments which were challenged manifestly admit
in their content that all absorptions were illegal, that is why it was
called “Regularization of Absorption”. Regularization is only done of
that which is wrong, illegal and void.
32.
Mr. Sarwar Khan, learned Addl. Advocate General
while referring to para. 2 of the judgment of the High Court, has
contended that there was no absorption in PSS group prior to
1994. He next submitted that his contentions are the same which
were made before the High Court, and are given in para. 25 of the
judgment.
33.
We have heard the learned Counsel for the Appellants
and have perused the record. The Appellants were absorbed on
different dates in Sindh Government. During the pendency of the
Appeals, the issue of absorption in service, post and cadre was
agitated in Constitution Petition No.71 of 2011 and other Petitions,
which were heard and decided by the judgment dated 12.6.2013,
whereby the „absorption‟ has been declared unconstitutional,
therefore, these Appeals will have no bearing which have been
preferred against the judgment of the High Court of Sindh dated
2.4.2011 in CP.D-932/2009 (Dr. Nasimul Ghani Sahito vs. Province
of Sindh etc) in which the learned High Court while examining the
scope of Section 24 of the Act has held that the authority was not
authorized, in law, to absorb the Appellants in different cadres,
service or posts. Since we have already decided the issues raised in
these Appeals in the aforesaid judgment, review of which has also
been dismissed, holding that absorption can neither be ordered
under Section 24 of the Sindh Civil Servants Act 1973, nor under
16
Rule 9(1) of the Sindh Civil Servants (Appointment, Promotion and
Transfer) Rules, 1974, and is violative of the fundamental rights of
the Civil Servants, consequently, these Appeals have lost their
significance and are accordingly dismissed.
Approved for reporting
Sohail/Saeed/**
Announced in open Court on 05.01.2015 at Karachi.
| {
"id": "C.A.404_2011.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
PRESENT:
Mr. Justice Anwar Zaheer Jamali
Mr. Justice Sarmad Jalal Osmany
Mr. Justice Dost Muhammad Khan
Civil Appeal No.407 of 2013
(On appeal from the judgment of Lahore High
Court, Lahore dated 26.11.2012 passed in
W.P.No.22454 of 2012)
Pakistan Telecommunication Company Ltd.
…Appellant
Versus
Member NIRC and others
…Respondents
For the Appellant:
Syed Naeem Bukhari, ASC
For respondents 1,3-6:
Sheikh Riaz ul Haq, ASC
For respondent No.2:
Syed Shahid Hussain, ASC
Respondents No.7 & 8:
Ex-parte
Date of hearing:
04.02.2014
JUDGEMENT
Dost Muhammad Khan, J.— In this appeal leave was
granted by this Court vide order dated 22.04.2013 against the
judgment of the Lahore High Court, Lahore dated 26.11.2012,
rendered in W.P.No.22454/2012, inter alia, on the following
grounds:-
“ORDER
Syed Naeem Bokhari, learned ASC for the
petitioner has strongly questioned the interpretation of the
Civil Petition No.407/2013
2
relevant provisions of the Industrial Relations Act, 2012,
(in short “the IRA”) recorded in the impugned judgment.
He contends that the view taken in the impugned
judgment is, inter alia, result of oversight and non-reading
of section 54(h) of the IRA. In support of his submissions
he has made reference to another judgment dated
10.1.2013, in writ petition No.25102/2011, passed by the
same honourable judge in the Lahore High Court, wherein,
according to him, on the same point, contrary view is
taken. He has further placed reliance upon a recent order
of this Court dated 13.02.2013, passed in Civil Appeal
No.1150/2012 and other connected appeals, to show that
the judgment impugned before this Court is contrary to the
ratio of judgment delivered by this Court on the same
point.
2.
Contention raised requires consideration. Leave to
appeal is, therefore, granted. Interim order passed earlier
shall remain operative till further orders.”
2.
Brief
but
relevant
facts,
giving
birth
to
this
controversy, are that respondents were employees of the
appellant [PTCL], whose services were terminated on 01.09.2010
and 16.09.2010. They filed grievance petition under section
33(8) of the Punjab Industrial Relations Act, 2010 [ the PIRA
2010] read with Standing Order No.12(3) of the Industrial and
Commercial Employment (Standing Orders) Ordinance VI of 1968
[the ICESO Ordinance 1968] before Labour Court No.4,
Faisalabad. The appellant filed written statement. The learned
Labour Court after recording evidence, allowed the grievance
petition on 22.08.2011. The appellant filed appeal against the
said order, which is pending disposal before the learned Punjab
Labour Appellate Tribunal, Lahore.
3.
In the meantime, the respondents filed contempt
petition before the learned Labour Court No.4, Faisalabad under
section 33(8) of PIRA 2010 read with sections 3 and 4 of the
Civil Petition No.407/2013
3
Contempt of Court Ordinance, 2003 to implement the Labour
Court’s order dated 22.08.2011. After receiving notice of
contempt petition, the appellant approached the Bench of NIRC
at Lahore for withdrawal of the contempt petition before the
Labour Court No.4, Faisalabad. The respondent No.1 therein
(NIRC) through order dated 26.01.2012 withdrew the contempt
proceedings before the Labour Court No.4 and assigned the same
to the Bench of NIRC at Lahore. The employees/respondents
impugned the said decision of the NIRC dated 26.01.2012
through W.P.No.22454/2012 before the Lahore High Court,
Lahore contending therein that NIRC was having no jurisdiction
to pass the order, referred to above, as the matter was already
decided and concluded by the competent Court, allowing the
grievance petition.
4.
Learned counsel for the appellant contends that the
learned Judge in Chamber held in paras 17/22 of the impugned
judgment that the provisions of the PIRA 2010 are applicable to
those establishments, which are working exclusively in the
Province of Punjab and are not maintaining trans-provincial
establishment. However, the learned Judge contrary to the above
view in para-3 of the impugned judgment held that the
jurisdiction of NIRC comes into play only, where there is
allegation of unfair labour practice as defined in section 32 of the
IRA 2012, on the part of employer or workers or trade union;
thus, the conclusion arrived at para 24 of the impugned
judgment, in view of the learned ASC, is clashing with and is
contrary to the view expressed by the learned Judge in Chamber
of the Lahore High Court given in Paras 17/22 and that the
provisions of sections 32, 33 and 34 have been misinterpreted.
5.
Learned ASC further contends that in trans-provincial
establishment like PTCL, all disputes including unfair practices,
whether on the part of employer or employees/workmen, the
Civil Petition No.407/2013
4
jurisdiction of the NIRC is overriding and exclusive in nature, not
only because it is created and empowered by Federal Law,
having super imposing effect over provincial law but also because
if trans-provincial establishments, companies or their employees
bring grievance petition with regard to the disputes, referred to
above, in different Labour Courts of the Provinces, the same
would create multiplicity and end result would be giving
conflicting judgments by different Labour Courts and Appellate
Tribunals and there will be no end to the litigation. The NIRC is a
single forum at national level, upon which such jurisdiction has
been expressly conferred by the provision of section 33 of the
IRA 2012, whether the dispute is individual one or of collective
nature and whether it is to be brought by the workers or through
shop-steward or collective bargaining agents.
6.
The learned ASC also contends that the learned Judge
in Chamber of the Lahore High Court, ignoring the above legal
position, misinterpreted and misconstrued the provision of
section 33(8) of the PIRA 2010 and Standing Order 12(3) of the
ICESO Ordinance, 1968, as in his view the power of contempt
given to the Appellate Tribunal itself or that of Labour Court is
confined and is only relevant if the Labour Court of a particular
Province has the jurisdiction to decide a grievance petition of a
local company/undertaking/enterprise, having no extra provincial
activities, establishments, industrial units or industrial activities.
7.
Learned ASC for the private respondents/employees,
however, was of the firm view that the plain reading of the
provision of sections 32 and 33 of the PIRA 2010 is a condition
Sine qua non for the assumption of the jurisdiction by the
local/provincial Labour Court and whenever unfair labour practice
element is involved, the Labour Court of a particular Province,
where a dispute arises, would have exclusive jurisdiction. Thus,
in his view, the impugned judgment of the Lahore High Court
Civil Petition No.407/2013
5
does not suffer from any jurisdictional effect nor it is a result of
misreading or misinterpreting the relevant provisions of law, both
Provincial and Federal, on the subject.
8.
We have fairly attended to the legal propositions and
have carefully read all the provisions of above law.
9.
There is no denial of fact that through Eighteenth
Constitutional Amendment, the Concurrent Legislative List was
done away with and some Federal Ministries including Labour
Ministry were devolved upon the Provinces. However, the Federal
Government confronted with the anomaly that there are certain
companies or groups of companies having trans-provincial
industrial activities, where many people have been employed as
workers or workmen, thus, if any industrial dispute including
unfair labour practice arises, a single forum was needed to be
provided for the settlement of such disputes so that class of
companies having trans-provincial industrial units and their
employers are not dragged into endless litigation on the question
of jurisdiction as to whether the grievance petition in that case
be taken cognizance by the Labour Court of the Province or by
one single forum like NIRC, which has been established and
constituted under the provision of section 53 of the Act X [ the
IRA 2012]. The phrase, “trans-provincial” has been defined in
clause (xxxiv) of section 2 of the Act X of 2012, which means,
“any establishment, group of establishments, industry having its
branches in more than one Provinces.”
10.
Under the provision of section 53, the NIRC has been
constituted by the Federal Government but its functions and
jurisdiction has been explained and elaborated in the provision of
section 54 of the IRA, 2012. According to clause (e), the NIRC
has the powers and jurisdiction to deal with the cases of unfair
labour practices specified in sections 31 and 32 of the Act on the
part of employers, workers, trade unions, either of them or
Civil Petition No.407/2013
6
persons acting on behalf of any of them, whether committed
individually or collectively, in the manner laid down under section
33 or sub-section (9) of section 33 or in such other way as may
be prescribed, and to take, in such manner as may be prescribed
by regulations under section 66, measures calculated to prevent
an employer or workman from committing an unfair labour
practice. In addition to above powers and jurisdiction, the NIRC
has been conferred upon additional powers under the provision of
section 57 of the Act (ibid), which includes the powers to punish
for contempt of court and may award simple imprisonment which
may extend to six months or with fine, which may extend to
Rs.50000/- or with both.
11.
In the same provision, vide clause (2)(b), the
Commission has been empowered to withdraw from a Labour
Court of a Province any applications, proceedings or appeals
relating to unfair labour practice, which fall within its jurisdiction;
and (c) grant such relief as it may deem fit including interim
injunction.
A proviso has been added to the above provision, to
following effect:-
“Provided that no Court, including Labour Court shall take
any action or entertain any application or proceedings in
respect of a case of unfair labour practice, which is being
dealt with by the Commission.
12.
After combined reading of the scheme of new labour
laws, both Provincial and Federal, it may be concluded without
any fear of rebuttal that two parallel forums have been created,
one on a provincial basis whereas latter is federal level forum,
called NIRC. Both these forums are having jurisdiction to deal
with industrial disputes and unfair labour practice and other allied
matters
either
attributable
to
the
employer
or
the
workers/workmen, however, the Federal Law has drawn a clear
Civil Petition No.407/2013
7
demarcation line of jurisdiction of these two different forums, i.e.
Labour Courts in the Provinces and the other NIRC at the Federal
Level. It is not the nature of dispute, particularly, unfair labour
practice, which confers jurisdiction on one or the other forum but
it is the status of the employer or the group of employers, which
would determine the jurisdiction of the Provincial Labour Court
and that of the NIRC. To be more clear on the point we have no
hesitation to hold that once it is established though any means
that the employer or group of employers has an establishment,
group of establishments, industry, having its branches in more
than one Provinces, then the jurisdiction of the NIRC would be
exclusive in nature and of overriding and super imposing effects
over the Provincial Labour Court for resolving industrial dispute
including unfair labour practice, etc. related to the employer,
having its establishment or branches or industrial units in more
than one Province and re-course has to be made by the
aggrieved party to the NIRC and not to the Provincial Labour
Court.
13.
Even otherwise under the provision of Article 143 of
the Constitution of Pakistan, 1973, laws enacted by the
Parliament have been given overriding and super imposing
effects over the laws enacted by a Provincial Assembly of any of
the Provinces and in case of any clash or repugnancy between
the two, the laws enacted by the Parliament shall prevail. Thus,
on the touchstone of the provision of Article 143 of the
Constitution, the Act of Parliament has been placed on the high
pedestal and any Provincial Law enacted by the Provincial
Assembly shall give way to the Federal Law, enacted by the
Parliament, if the former is inconsistent or repugnant to the
latter. Therefore, it is held that the provision of Act X of 2012
(the IRA 2012) has overriding effect on all Provincial Labour
Laws. Judged from this angle, we are of the firm view that in the
present case, the learned Judge in Chamber of the Lahore High
Civil Petition No.407/2013
8
Court, Lahore while drawing the impugned judgment dated
26.11.2012 could not properly comprehend the intents and
objects of the above provisions of law, rather misconstrued and
misinterpreted the same, resulting into miscarriage of justice, the
impugned judgment being not sustainable in the eye of law is
liable to be set at naught.
14.
During hearing of this appeal, a question arose, as to
whether the Parliament could enact any law relating to industrial
relations/disputes, regulating the conduct of employers and
workers or workmen and to establish an exclusive forum for such
disputes at Federal Level without the express consent or
requisition of the four Provincial Governments. After Eighteenth
Amendment, doing away with the Concurrent Legislative List, by
abolishing the same and when the Ministry of Labour and its all
affairs have devolved upon the Provinces, whether such express
consent of the Provincial Governments at any level or at the
forum of CCI was not essential to give validity to the Federal Law
on the subject, however, before us neither in the petition nor
during the course of arguments addressed at the bar, the vires of
the Federal Law, referred to above, was brought under challenge,
therefore, we would leave it open to determine this question of
law in some other appropriate case, where the vires of the
Federal Laws are expressly challenged.
15.
Accordingly, this appeal is allowed. The impugned
judgment dated 26.11.2012 passed by the learned Judge in
Chamber of the Lahore High Court, Lahore is set aside and the
order of NIRC dated 24.01.2012 withdrawing the contempt
petition from Labour Court No.4, Faisalabad to itself is hereby
upheld and further proceedings in the matter be taken up by the
NIRC and shall be decided positively within two months.
Civil Petition No.407/2013
9
16.
In view of the above judgment, allowing the appeal,
Civil Miscellaneous Applications No.2265/2013 and 35 of 2014
are also disposed of accordingly.
Judge
Judge
Judge
Announced in open Court on 17.02.2014 at Islamabad
Judge
| {
"id": "C.A.407_2013.pdf",
"url": ""
} |
SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
PRESENT:
Mr. Justice Gulzar Ahmed, CJ
Mr. Justice Mazhar Alam Khan Miankhel
Mr. Justice Sayyed Mazahar Ali Akbar Naqvi
Civil Appeal No.40 of 2021
[Against the judgments dated 12.09.2019, passed by the Khyber Pakhtunkhwa
Service Tribunal, Peshawar in Appeal No.625/2018]
Secretary
Agriculture,
Livestock
&
Cooperation Department, Peshawar & others.
… Appellant(s)
Versus
Anees Ahmad.
…Respondent(s)
For the Appellant(s)
: Mr. Zahid Yousaf Qureshi, Additional
Advocate General, KP
Asad
ud
Din,
Asif
Jan,
Superintendents
Javaid
Maqbool
Butt,
Incharge
Litigation, Agriculture Department, KP
For the Respondent(s)
: Mr. Fazal Shah Mohmand, ASC
Date of Hearing
: 08.06.2021
O R D E R
Gulzar Ahmed, CJ.— Facts of the matter are that the
respondent was promoted to the post of Office Assistant (BPS-14)
in the year 2004 and his post was up-graded to BPS-16 in the year
2014. The service rules were notified on 20.04.2012, providing
90% quota for promotion on seniority-cum-fitness basis among the
holders of the posts of Assistant/Accountant, who have completed
five years’ service. In the year 2013, post of Superintendent
became vacant. The working-paper for promotion of the respondent
was prepared where his name appeared at Serial No.2. The
C.A.No.40 of 2021
- 2 -
Departmental Promotion Committee (the DPC) was scheduled on
19.06.2017 but it was delayed to 19.10.2017. On 19.10.2017 the
case of the respondent for promotion was not considered by the
DPC for the reason that he had already retired on attaining the age
of superannuation on 21.06.2017. The respondent filed service
appeal in the Khyber Pakhtunkhwa Service Tribunal, Peshawar
(the Tribunal), by the impugned judgment dated 12.09.2019, the
service appeal of the respondent was allowed and the appellants
were directed to consider the case of the respondent for pro forma
promotion from the date of his retirement.
2.
We have heard the learned Additional Advocate
General, KP (AAG) and have also gone through the record of the
case.
3.
Learned counsel appearing for the respondent has
supported the impugned judgment.
4.
The Government of Khyber Pakhtunkhwa Agriculture,
Livestock
&
Cooperation
Department,
Peshawar
(AL&C
Department, KP) issued Notification dated 20.04.2012 containing
the rules of recruitment. Item No.36 of the rules is as follows: -
S.No.
Nomenclature
of post
Qualification for
appointment by
initial recruitment.
Age limit
Method of recruitment.
1
2
3
4
5
PART-II
MINISTERIAL STAFF
36.
Superintenden
ts (BPS-16).
a). Ninety percent by promotion,
on the basis of seniority-cum-
fitness, from amongst the holders
of
the
posts
of
Assistant/Accountants with five
years service as such; and
b). ten percent by promotion, on
the basis of seniority-cum-fitness,
from Senior Scale Stenographers
with five years service as such.
C.A.No.40 of 2021
- 3 -
5.
Working-paper was prepared and the same was sent to
the Secretary, AL&C Department, KP vide letter dated 26.05.2017.
Model Working Paper, which is at Page-29 of the record shows that
there were 08 posts of Superintendent (BPS-17) lying vacant in AE
Department. Ninety percent of these posts were to be filled by
promotion on the basis of seniority-cum-fitness from the post of
Assistant/Accountant having five years’ service. In para-5 of this
Model Working Paper appears a chart containing names of 14
Office Assistants. At Serial No.1 is the name of Muhammad Alam,
it is mentioned that he has opted to forgo his promotion. At Serial
No.2 appears the name of respondent. In the last but one para of
this very Model Working Paper, following has been certified by the
Director General, AE Department: -
“It is certified that all the officials included in the panel for
promotion:-
i.
Hold the lower post on regular basis and none of
them is holding the post on adhoc basis.
ii.
No
departmental
examination
has
been
prescribed
for
promotion
to
the
post
of
Superintendent.
iii.
No disciplinary /Departmental proceeding/anti-
corruption case /judicial inquiry are pending
nor has any penalty been imposed during the
last five years against any of the official of the
penal.
iv.
The seniority list of the Office Assistant is final
and un-disputed.
6.
The very perusal of the Model Working Paper shows
that the respondent has completed requisite five years’ service
provided by the rules and the Director General, AE Department,
has also certified that there is no impediment in grant of promotion
to the persons named in the Model Working Paper.
C.A.No.40 of 2021
- 4 -
7.
The DPC for considering the promotion was held on
19.06.2017 but was adjourned on the pretext that fresh option of
officials forgoing their promotion be obtained. This is mentioned in
the letter of the Director General, AE Department dated
28.11.2018 at page-31 of the record. After adjourning of this
meeting by DPC, the next DPC meeting took place on 19.10.2017
and in the meantime, the respondent retired from service on
21.06.2017.
8.
Learned Additional Advocate General has contended
that promotion to the post of Superintendent (BPS-17) was to be
made on seniority-cum-fitness basis and this very aspect was to be
determined by the DPC and as the DPC having not determined the
matter of seniority-cum-fitness, respondent, could not be granted
pro forma promotion after his retirement. He has further contended
that the case of promotion of Superintendent (BPS-17) was placed
before the DPC on 19.10.2017, but it was not considered as
respondent has retired on 21.06.2017 and no illegality was
committed. He was of the view that only the DPC is competent to
consider the grant of promotion and in case, it does not consider or
grant promotion, no other forum is competent to decide the
question of granting of promotion or pro forma promotion. As to the
last submission with due respect, we tend to disagree with the
learned AAG for the reason that no doubt it is a function of the
DPC to consider the case of promotion of the government servant
but where the DPC in violation of law and rules omits to consider
or omits to grant promotion, the remedies before statutory
Courts/Tribunals are provided by law and such remedies could be
C.A.No.40 of 2021
- 5 -
availed by the aggrieved government servant and it is for the
Courts/Tribunals to consider and decide whether the DPC has
validly omitted to consider or omitted to grant promotion in
accordance with law and rules.
9.
In the present case the DPC has not considered the
case for promotion of respondent and the reason assigned is that
he has retired. This reason given by the DPC, apparently, is no
reason in law, in that, once the Model Working Paper for promotion
of respondent was placed before the DPC, it was incumbent upon it
to have considered and decided the same, for that, though the law
does not confer any vested right to a government servant to grant
of promotion but the government servant surely has a right in law
to be considered for grant of promotion. It is because of the
department’s own non-vigilance and the DPC being insensitive to
the employees who were on the verge of retirement of which the
employees could not be made responsible, cannot simply brush
aside the case of an employee by merely saying that he has retired.
Once the case of respondent has matured for promotion while in
service and placed before the DPC before retirement, it was
incumbent upon the DPC to fairly, justly and honestly consider his
case and then pass an order of granting promotion and in case it
does not grant promotion, to give reasons for the same. This was
not done by the DPC and in our view such was a miscarriage of
justice to respondent.
10.
In view of the above, we find that the impugned
judgment of the Tribunal, directing the appellants to consider the
case of promotion of respondent, does not suffer from any illegality
C.A.No.40 of 2021
- 6 -
and is maintained. The appeal is, therefore, dismissed. As the
matter is quite old, we expect that the appellants will decide the
question of promotion of respondent expeditiously, preferably
within a period of three months from today.
CHIEF JUSTICE
JUDGE
Bench-I
Islamabad
08.06.2021
APPROVED FOR REPORTING
Rabbani*/
JUDGE
| {
"id": "C.A.40_2021.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE GULZAR AHMED, HCJ
MR. JUSTICE MAZHAR ALAM KHAN MIANKHEL
MR. JUSTICE SAYYED MAZAHAR ALI AKBAR NAQVI
CIVIL APPEAL NO. 410 OF 2020
(On
appeal
against
judgment
dated
16.10.2018 passed by the Peshawar High
Court, Peshawar in Writ Petition No. 1184-
R/2017)
The Government of Pakistan through Secretary Establishment Division,
Islamabad
… Appellant
VERSUS
Muhammad Ismail and another
… Respondents
For the Appellant:
Ch. Aamir Rehman, Addl. Attorney General
Mr. Sajid ul Hassan, S.O. Establishment
For the Respondent (1): In person
Date of Hearing:
02.06.2021
JUDGMENT
SAYYED MAZAHAR ALI AKBAR NAQVI, J.- Through this appeal by
leave of the Court under Article 185(3) of the Constitution of Islamic
Republic of Pakistan, 1973, the appellant has called in question the
judgment dated 16.10.2018 passed by the Peshawar High Court,
Peshawar, whereby the writ petition filed by the respondent No. 1 was
allowed. While handing down the judgment, the learned High Court
directed the appellant department to appoint the respondent No. 1 in
pursuance of ‘Prime Minister’s Assistance Package for Families of
Government Employees who die in service’ dated 13.06.2006 to be
effective from 01.07.2005, which was further amended on 20.10.2014,
04.12.2015 & 09.09.2016.
2.
Briefly stated the facts of the matter are that respondent’s
father while working as Senior Auditor in the office of Accountant
General KPK, Peshawar, died on 14.10.1995. On 13.06.2006 the
Government of Pakistan issued ‘Assistance Package for Families of
Government Employees who die in service’ according to which
son/daughter/widow/widower/family member, as the case may be, of
the deceased government servant was made eligible for employment for
Civil Appeal No. 410/2020
2
posts in BS-01 to BS-15 on two years contract without any
advertisement. This package was amended time and again and finally
an amendment was made vide Office Memorandum dated 09.09.2016
whereby the two years contract period was enhanced to 5 years and the
same was also made extendable till the age of superannuation or
regularization. The respondent No. 1 filed an application to the
Accountant General KPK, Peshawar, for appointment on the quota of
government employee, who died in service, on the basis of afore-referred
memorandum dated 09.09.2016 but the same was never responded.
The respondent then filed Writ Petition No. 1184-P/2017 before the
Peshawar High Court, Peshawar, which has been allowed vide
impugned judgment and it has been held that a statute or rule giving
right to the citizens always operates retrospectively. Hence, this appeal
by leave of the Court.
3.
The crux of the arguments advanced by learned Additional
Attorney General is that the father of the respondent died in the year
1995 when there was no policy in vogue for employment of deceased’s
family member, therefore, the respondent could not have been given
retrospective benefit of the policy, which was issued later on with
prospective effect. He added that the learned High Court has wrongly
interpreted that a statute or rule giving right to the citizens always
operates retrospectively and the impugned judgment being not
sustainable in the eyes of law may be set aside.
4.
On the other hand, the respondent No. 1, who appeared in
person,
mainly
stated
that
he
possessed
all
the
requirements/qualification but despite that he was not appointed on the
basis of afore-referred office memorandum dated 09.09.2016, which
amounts to depriving him from his legal right, which accrued to him in
pursuance of the aforesaid Assistance Package.
5.
We have heard learned Law Officer as also the respondent
No. 1 in person and have perused the record.
6.
It is an admitted fact that respondent’s father died in the
year 1995 while he was in regular service of Accountant General KPK
being Senior Auditor. At that time, there was no scheme/policy in field
for induction of family member of deceased civil servant in service. It
was on 13.06.2006 when the Government of Pakistan issued
‘Assistance Package for Families of Government Employees who die in
service’, to be made effective from 01.07.2005, wherein employment for
Civil Appeal No. 410/2020
3
posts in BS-01 to BS-15 on two years contract without advertisement for
the families of deceased servant was surfaced. Thereafter, this package
was amended thrice i.e. on 20.10.2014, 04.12.2015 and lastly on
09.09.2016 whereby the two years contract period was enhanced to 5
years and the same was also made extendable till the age of
superannuation or regularization. We have perused the Assistance
Package and the subsequent amendments but could not find any
provision therein which gives it retrospective effect especially when the
grievance of respondent was agitated with a lapse of almost 17 years. It
is an established principle of interpretation of statutes / notifications /
executive / administrative orders that they would operate prospectively
unless they expressly provide for retrospective operation. This Court in
the case of Hashwani Hotels Ltd. Vs Federation of Pakistan (PLD 1997
SC 315) has acknowledged this fact by observing that “it is a well-
settled principle of interpretation of a notification and/or an executive
order that the same can operate prospectively and not retrospectively.
This principle is equally applicable to a statute in the absence of any
express or implied intendment contrary to it.” In this view of the matter,
when it is clear that afore-referred Assistance Package for legal heirs of
deceased government employee was not available at the time when
deceased employee died and the same was issued later on with
prospective effect, the respondent was not deprived of any right accrued
to him at the relevant time by not appointing him. The learned High Court
has erroneously presumed that a statute or rule, which gives right to the
citizens, always operates retrospectively. If this is accepted, it would
tantamount to opening a floodgate for all other similarly placed persons.
7.
For what has been discussed above, this appeal is allowed
and the impugned judgment is set aside.
CHIEF JUSTICE
JUDGE
JUDGE
Islamabad, the
2nd of June, 2021
Approved For Reporting
Khurram
| {
"id": "C.A.410_2020.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
PRESENT:
MR. JUSTICE IFTIKHAR MUHAMMAD CHAUDHRY, CJ
MR. JUSTICE IJAZ AHMED CHAUDHRY
MR. JUSTICE GULZAR AHMED
CIVIL APPEALS NO. 411 TO 414 OF 2013
(On appeal from the judgment dated 18.4.2013
passed by the High Court of Balochistan, Quetta in
CPS No. 270 to 273 of 2013)
Abdul Ghaoor Lehri
…. Appellant
(in all cases)
Versus
The Returning Officer, PB-29, Naseerabad-II & others
…. Respondents
(in all cases)
For the Appellant
Mr. Kamran Murtaza, ASC
For the Respondents
Mr. Zahoor ul Haq Chishti, ASC
(in CA 411/2013)
Nemo (in CA 412/2013)
Raja Abdul Rehman, ASC
Mr. Arshad Ali Chaudhry, AOR
(in CA 413/2013)
Mian Abdul Rauf, ASC
(in CA 414/2013)
Date of hearing
24.05.2013
JUDGMENT
IJAZ AHMED CHAUDHRY, J.- Through this single
Judgment we intend to dispose of the civil appeals Nos. 411,
C.As. 411 to 414/2013
2
412, 413 and 414 of 2013 as common questions of law and
facts are involved in all of them and have arisen out of the
same proceedings.
2.
Abdul Ghafoor Lehri, appellant through the instant
appeals, by way of leave of this Court vide order dated
7.5.2013, calls in question the legality of the order dated
18.4.2013 passed by a Full Bench of the High Court of
Balochistan, Quetta in Constitution Petition No. 270 of 2013
whereby the same was dismissed against the order dated
17.4.2013 passed by the Election Tribunal, Balochistan
allowing the appeal against acceptance of nomination papers
of the appellant.
3.
Succinctly, the facts forming background of the
instant appeals are that the appellant filed his nomination
papers to contest general elections, 2013 scheduled to be
held on 11.5.2013 from PB-29-Naseerabad-II. The contesting
candidates, namely, Nazim-ud-Din Lehri, Ali Hassan Jamot,
Muhammad Amin Umrani and Ahmad Bukhsh filed objections
against the nomination of the appellant on the grounds that
the appellant while contesting the general elections held in
the year 2002 made different entries in his nomination papers
qua his qualification on the basis of his Sanad which differ
from the contents of nomination papers filed by him to
contest general election, 2013, as such, his act is in-violation
of Article 62 and 63 of the Constitution of Islamic Republic of
C.As. 411 to 414/2013
3
Pakistan as he was not righteous, sagacious and Ameen in
terms thereof. The other objection for not showing the
correct evaluation of his land was also enforced. The learned
Returning Officer on the day of scrutiny of nomination papers
by overruling the objections filed by the respondents accepted
the nomination papers of the appellant declared him eligible
to contest the elections, 2013.
4.
Feeling dissatisfied with the aforesaid orders of the
learned Returning Officer, the respondents filed election
appeals before the learned Election Tribunal which were
allowed. Consequently, the nomination papers of the
appellant were rejected and he was declared ineligible to
contest general elections of 2013 and the Returning Officer
was directed to exclude his name from the list of validly
nominated candidates.
5.
Feeling aggrieved by the aforesaid order, the
appellant called in question the legality of the said order by
filing constitutional petitions Nos. 270, 271, 272 and 273 of
2013 before the learned High Court of Balochistan, Quetta
which were dismissed by the said court through short order
dated 18.4.2013 and recorded reasons thereof on 6.5.2013.
The appellant still dissatisfied with the aforesaid judgment
filed civil petitions Nos. 505 to 508 of 2013 for leave to appeal
challenging the impugned judgment of the High Court of
Balochistan, Quetta in which leave to appeal was granted
C.As. 411 to 414/2013
4
inter-alia to consider the question as to whether validly,
issued degree/Sanad by a Deeni Madrassa which was not
found to be equivalent by the concerned University could
disqualify the appellant in terms of Article 62 (f)(i) of the
Constitution of the Islamic Republic of Pakistan 1973, to
contest the elections.
6.
Learned counsel for the appellant contends that
the order dated 18.4.2013 passed by the Full Bench of the
High Court of Balochistan is against law and facts of the case;
that the learned Full Bench has misread and mis-appreciated
the material available on record; that the Returning Officer
after completing all codal formalities had rightly accepted his
nomination papers but the learned Tribunal as well as the
learned High Court have illegally set aside order of the
Returning Officer; that the appellant was duly qualified to
contest elections of 2013 as no condition of being graduate
has been imposed to contest general elections the same
having been erased from the statute, as such, both the
learned Courts below have committed a patent illegality while
upsetting well-reasoned order of the learned Returning Officer
accepting the nomination papers of the appellant; that since
the appellant has neither committed any sinful act nor
cheated the Court while producing a Sanad from Madrassa,
as such, the conditions laid down by Article 62 of the
Constitution of Islamic Republic of Pakistan, 1973 cannot be
C.As. 411 to 414/2013
5
imposed upon the appellant to declare him that he is not
righteous, sagacious or Ameen whereas the position is
otherwise and that since the appellant has been declared as
returned candidate after contest of general elections, 2013
under the orders of this Court, therefore, if the order
impugned in these proceedings is not set-aside, the voters of
his
constituency
will
not
only
be
deprived
of
their
constitutional right to choose a representative of their choice
but the constituency will also be left unattended/un-
represented,
in
such
circumstances,
the
impugned
judgment/order is liable to be set aside.
7.
On the other hand learned counsel for the
respondents have vehemently opposed the contentions raised
by the learned counsel for the appellant by contending that
the appellant while contesting election for the seat of Nazim
held in the year 2001 shown himself to be a matriculate and
did not describe in the nomination papers that he was holding
Sanad ul Fragh equivalent to B.A.; that the appellant passed
Secondary School Examination (Matric) in the year 1983
whereas he is alleged to have obtained Sanad-ul-Fragh in the
year 1985, the question arises that when the appellant was
possessing Sanad-ul-Fragh at the time of filing of nomination
papers to contest Local Bodies election in the year 2001, why
he had not shown himself to be holder of Sanad-ul-Fragh.
Thus he cannot be said to be a righteous, sagacious and
C.As. 411 to 414/2013
6
Ameen within the meaning of Article 62 of the Constitution of
Islamic Republic of Pakistan, 1973 and was not eligible to
contest election; that the appellant after having been declared
as a returned candidate on the basis of Sanad produced by
him before the Returning Officer to contest election in the
year 2002 was declared fake and forged, therefore, on the
basis of the said findings the appellant was debarred from
contesting elections of 2013 his candidature being hit by
Article 62 (f)(i) of the Constitution of Islamic Republic of
Pakistan, 1973 as he, by his conduct, was not a righteous,
sagacious or Ameen.
8.
We have heard arguments of learned counsel for
the parties and also gone through the available record.
9.
Admittedly, the appellant at the time of filing of
nomination papers to contest Local Bodies election in the year
2001, declared his qualification as Matric only but in the
general elections held in the year 2002, he produced a Sanad
known as Sanad-ul-Fragh allegedly issued by Madrassa Al-
Quran-Ul-Arabia
Behrul
Uloom
Qadria
Abdullah
Dahan
Shikarpur which according to the appellant was equivalent to
graduation. But, since the appellant while filing his
nomination papers for contesting Local Bodies elections in the
year 2001 had disclosed his qualification as Matric and despite
holding the said Sanad-ul-Fragh, non-mentioning of the said
fact in his nomination papers to contest Local Bodies Election
C.As. 411 to 414/2013
7
in the year 2002 amounts to concealment of facts. Even
otherwise, the course for obtaining the said Sanad is normally
completed within six years but after passing the matriculation
examination in the year 1983 how could it be possible for the
appellant to pass the lengthy course within a short span of
two years. Thus, genuineness of Sanad-ul-Fragh produced by
him to contest the general elections in the year 2002 creates
doubt in ones mind, the same being obtained without
completing the educational course for the said Sanad.
10.
On the basis of the aforesaid Sanad his nomination
papers were accepted and he was declared returned
candidate. However, his election was challenged by one
Muhammad Sadiq Umrani by filing an election petition under
section 52 of the Representation of the People Act, 1976
before the Election Tribunal alleging therein that the appellant
was not qualified to contest election as he did not possess
educational qualification as provided by Article 8-A of the
Conduct of General Election Order, 2002 and the Sanad
produced by him alongwith his nomination papers was firstly
a bogus Sanad as he never studied in the Madrassa which
issued the Sanad and secondly it was not equivalent to
bachelor degree, the minimum qualification at the relevant
time provided for becoming member of the Provincial
Assembly. The said election petition was contested by the
appellant and the learned Election Tribunal on divergent
C.As. 411 to 414/2013
8
pleadings of the parties framed as many as four issues. After
recording of the evidence of both the parties the learned
Election Tribunal declared that the appellant was not qualified
to contest election, as such, his election as member of the
Balochistan Provincial Assembly from PB-29-Naseerabad-II
Balochistan was declared void as a whole vide judgment
dated 15.12.2003. The said findings of the learned Election
Tribunal were challenged by the appellant through an appeal
in this Court which alongwith other appeals came up for
hearing on 18.6.2009 when the same was disposed of having
become infructuous by efflux of time. The Sanad produced by
the appellant while filing his nomination papers in the year
2002 reveals that the same has been certified by the
University as an equivalent certificate to enable the persons
holding said Sanad to seek admission in M.A. Arabic/Islamic
Culture and was not at all equated with B.A. degree normally
issued by the University. Article 8-A of the Conduct of General
Election Order, 2002 permitted only those persons to contest
election of the Parliament or the Provincial Assembly who
were at least graduate or any degree equivalent to the
graduation
and
recognized
by
the
University
Grants
Commission. The appellant at that time was not admittedly a
graduate within the meaning of Article 8-A of the Conduct of
General Election Order, 2002. It is also evident from the
notification issued on 25th July, 2002, whereby the University
Grants Commission accorded the requisite recognition and
C.As. 411 to 414/2013
9
equivalence to those Sanads only which were issued by the
institutions mentioned in the said Notification, namely,
1.
Wafaq-ul-Madaris,
Markazi Office Gordon Town Sher ShahRoad,
Multan.
2.
Tanzeem,-ul-Madaris Ahle-Sunnat, Jamia Naeemia
Rizvia, Garhi Shaho, Lahore.
3.
Wafaq-ul-Madaris, Al-Salfia Hajiabad Post Code-
38600, Faisalabad.
4.
Wafaq-ul-Madaris
Shia,
Jamia-al-Muntazar,
H.
Block Model Town, Lahore.
5.
Rabita-ul-Madaris-Al-Islamia,
Manzoor
Road,
Lahore.
6.
Jamia Islamia Minhaj-ul-Quran, 368 Model Town,
Lahore.
7.
Jamia
Taleemat-e-Islamia,
Sargodha
Road,
Faisalabad.
8.
Jamia Ashrafia, Ferozepur Road, Lahore.
9.
Darul Uloom Mohammadia Ghousia Bhera, District
Sargodha,
10.
Darul Uloom, Korangi, Karachi.
11.
According to the aforesaid list of the Madaris, the
Madarassa which issued Sanad Fragh-ul-Uloom to the
appellant does not figure anywhere in the said Notification
and the University Grants Commission has restricted the
grant of requisite status and recognition to the Sanads
awarded by the institutions mentioned supra and had not
extended the same to the institutions affiliated therewith.
From the aforesaid Notifications, it is clear that the Sanad
C.As. 411 to 414/2013
10
Fragh-ul-Uloom issued by the aforesaid Madrissa was certified
by Shah Abdul Latif University, Khairpur as an equivalent
certificate enabling the candidate to seek admission in M.A.
Arabic/Islamic Culture and such equivalence certificate cannot
be equated with B.A. degree normally issued by the University
for other disciplines. The said decision has been circulated by
Shah Abdul Latif University, Khairpur through circular dated
23.8.2002. Since the University with which the Madrassa
which issued the Sanad in question is affiliated itself notified
that the equivalence certificate cannot be equated with B.A.
degree, therefore, the appellant could not have contested the
election on the basis of said Sanad. This fact has already
been taken note of by this Court in the case of Sanaullah
Khan and others vs. District Returning Officer Mianwali and
others (PLD 2005 S.C. 858) wherein it was held that UGC vide
Notification No. 8-418/Acad/82/128 dated November 17,
1982 declared that the Sanad of Shahadat-ul-Almiyya-fil-
Uloomil-Arabia-Wal-Islamia granted by a Deeni Madrassa
whose name finds mention therein shall be considered
equivalent to M.A. in Arabic/Islamic Studies for the purpose of
teaching
Arabic/Islamic
Studies
in
the
colleges
and
Universities and for pursuing higher studies in Arabic and
Islamic Studies. However, for employment other than
teaching, Sanad holders were required to qualify in two
additional subjects other than Arabic and Islamic studies at
B.A. level of a University. They have also to qualify in the
C.As. 411 to 414/2013
11
newly introduced subjects of Elective Pakistan Studies and
Islamic Studies at the B.A. level. In such circumstances, it is
crystal clear as light of the day that as held by this Court in
the case referred supra the Sanad produced by the appellant
while contesting election in the year 2002 was not at all equal
to B.A. degree, thus, he was not qualified to be elected or
chosen as a member of the Provincial Assembly.
12.
Since the Sanad produced by the appellant while
contesting election, 2002 has been declared not equivalent to
B.A. degree for the reasons mentioned in the preceding
paragraphs, therefore, appellant was not at all qualified to
contest election. Now the question arises as to whether the
appellant is disqualified to contest election, 2013 or not. In
this regard it is noticed that while producing aforesaid Sanad,
the appellant sworn an affidavit to the effect that the Sanad
produced by him was issued to him by a recognized institution
and equivalent to a bachelor degree made false statement
and submitted false or incorrect declaration in respect of his
educational
qualification,
thus,
he
was
not
righteous,
sagacious, non-profligate, honest and Ameen within the
meaning of Article 62(f) of the Constitution of Islamic
Republic of Pakistan, 1973, as such, was not qualified to be
elected or chosen as a member of Majlis-e-Shoora.
C.As. 411 to 414/2013
12
13.
Since as per conclusions drawn by this Court in
Sanaullah Khan’s case (supra) that the appellant knowingly
and deliberately submitted a degree for becoming a
parliamentarian which was not equivalent to B.A., therefore,
had not only committed an offence by doing so but also
defrauded the voters and the nation, as such, was disqualified
to contest the election for not fulfilling the conditions
contained in Article 62(1)(d) and (f) of the Constitution of
Islamic Republic of Pakistan, 1973. This Court in the case of
Malik Iqbal Ahmad Langrial vs. Jamshaid Alam and others
(PLD 2013 SC 179) has held that a person who indulges into
using unfair means in procuring his educational qualifications
does not deserve to claim to be an honest, righteous or
Ameen person so that he be assigned the high responsibilities
of performing national functions of running the affairs of the
country.
Relevant
paras
therefrom
are
reproduced
hereinblow:-
“10. ….It is to be noted that Article 62(1)(f), as
it stood prior to 18th Constitutional Amendment,
provides that a person shall not be qualified to
elected or chosen as a Member of Majlis-e-Shoora
(Parliament) unless he is sagacious, righteous, non-
profligate, honest and ameen. It is clear from the
plain reading of the said Article that there is no
restriction upon the Court/Tribunal to declare any
person to be not sagacious, righteous or ameen.
Admittedly the appellant used fake documents not
only in the year 2002 but also in the year 2008 and
also made false declaration making him liable to
C.As. 411 to 414/2013
13
criminal action under certain provisions of P.P.C. In
the case of Muddasar Qayyum Nahra v. Ch. Bilal
Ijaz (2011 SCMR 80) this Court had upheld the
findings of Election Tribunal, Punjab whereby it
was held that a person who indulges into using
unfair
means
in
procuring
his
educational
qualifications does not deserve to claim to be an
honest, righteous or Ameen person so that he be
assigned the high responsibilities of performing
national functions of running the affairs of the
country. The spirit with which the words sagacious,
righteous, non profligate, honest and Ameen have
been used by the Constitution of Islamic Republic
of Pakistan, 1973 for the eligibility of the
candidates contesting the elections of Members
National or Provincial Assembly cannot be allowed
to be frustrated if persons who secure their
educational documents through unfair means and
are found guilty of such a condemnable act by the
competent authority are allowed to be given entry
into the doors of National or Provincial Assemblies
of our country. The respondent (therein) is thus not
worthy of credence and cannot be allowed to be
entrusted with State responsibilities of Law Making;
to be in-charge of the National Exchequre or be
eligible to represent the people of Pakistan.”
“12. In a recent case tiled as Syed Mehmood
Akhtar
Naqvi,
v.
Federation
of
Pakistan
(Constitution Petition No.5 of 2012) this Court has
held that whoever makes false declaration at the
time of filing of nomination papers, makes himself
liable to be disqualified from being elected or
chosen
as
Member
of
the
Majlis-e-Shoora
(Parliament) or a Provincial Assembly for making
misstatement or concealment of fact, and also
exposes
himself
to
criminal
proceedings
contemplated under sections 193, 196, 198 and
199, P.P.C. “
C.As. 411 to 414/2013
14
14.
In the instant case, the appellant has failed to
meet the criteria set out for proposed candidates under Article
62(1) (d) & (f) of the Constitution and sub-sections (d), (e),
(f) and (g) of section 99 of the Representation of People Act,
1976. It may be noted that under Article 63 of the
Constitution of the Islamic Republic of Pakistan there are
certain disqualifications which are of temporary nature and a
person disqualified under Article 63 can become qualified after
lapse of certain period as mentioned therein, whereas, the
requirement of Article 62 are of permanent nature and a
person has to fulfill certain qualifications/conditions to become
eligible to be elected or chosen as a member of Majlis-e-
Shoora (Parliament), otherwise, he is not eligible to be a
Member of Majlis-e-Shoora (Parliament). For this reason
alone, Article 62 does not provide any period after which a
person, who was declared disqualified under the said Article,
can be eligible to contest the elections of the Parliament. In
such view of the matter we hold that a person who is not
qualified under Article 62(1)(f) cannot become qualified by
efflux of time. Reference in this regard may also be made to
the case of Imtiaz Ahmed Lali v. Ghulam Muhammad Lali (PLD
2007 SC 369). In such circumstances the appellant has
rightly been disqualified to be elected as member of the
Parliament by the learned Election Tribunal by allowing the
election appeal filed against acceptance of his nomination
papers by the Returning Officer which findings were upheld by
C.As. 411 to 414/2013
15
the High Court of Balochistan. In view of the facts and
circumstances of the case and the material available on
record we are of the view that the findings of the learned High
Court are based on correct appreciation of evidence on record
and the law on the subject.
15.
Even otherwise, the order, in the earlier round of
litigation, passed by the learned Election Tribunal accepting
the election petition filed by the contesting candidates qua
election 2002 and disqualifying the appellant to be the
member of the Parliament has attained finality for the reason
that although the appellant had challenged his disqualification
before this Court by filing a civil appeal, yet, it was not
decided on merits and was disposed of having become
infructuous on the statement of learned counsel for the
appellant. Since the appellant was not qualified to contest the
elections, therefore, his success in the general elections held
under the stay order granted by this Court while granting
leave to appeal, cannot be helpful to him as the question of
his disqualifications has to be decided by this Court in the
instant proceedings in continuation of rejection of his
nomination papers and no premium of his success in the
election could be given to him as he was not qualified to
contest the election being not sagacious, righteous, non-
profligate and honest and Ameen.
C.As. 411 to 414/2013
16
16.
For what has been discussed above, we find no
merit in these appeals which are hereby dismissed with costs.
As a sequel to the aforesaid findings, we set-aside the
election of PB-29-Naseerabad-II held on 11.5.2013 and direct
the Election Commission of Pakistan to hold fresh election in
the said constituency accordingly.
17.
These are the reasons of our short order of even
dated announced in open Court.
Chief Justice
Judge
Judge
Islamabad
24th May, 2013
(Zulfiqar)
NOT APPROVED FOR REPORTING
| {
"id": "C.A.411_2013.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE MIAN SAQIB NISAR
MR. JUSTICE MANZOOR AHMAD MALIK
CIVIL APPEAL NO.417-L OF 2009
(Against the judgment dated 16.3.2004 of
the Lahore High Court, Lahore passed in
C.R.No.368-D/1998)
Province of Punjab through Secretary to Government of the Punjab,
Communication & Works Department, Lahore and another
…Appellant(s)
VERSUS
M/s Muhammad Tufail & Co. through Muhammad Tufail (deceased)
through Legal Heirs
…Respondent(s)
For the appellant(s):
Mr. Subah Sadiq Wattoo, A.A.G. Punjab
For respondent No.1(ii):
In person
Amicus Curiae:
Mr. Rassal Hassan Syed, ASC
Ms. Ayesha Hamid, ASC
Date of hearing:
06.09.2016
…
JUDGMENT
MIAN SAQIB NISAR, J:- In this appeal, with leave of the
Court, the only legal point involved is, which Court shall have the
territorial jurisdiction in terms of Section 2(c) and Section 31(1) of the
Arbitration Act, 1940 (the Act) where an Arbitration Award could be filed
and the same could be made Rule of the Court.
2.
In the above context, the brief facts are that on 16.12.1982
the work of widening and strengthening of Jhang-Toba Tek Singh
Chichawatni Road in Toba Tek Singh District was awarded to the
respondent by appellant No.2 which
(work) was completed on
30.12.1984. Thereafter a dispute arose on account of the respondent
Civil Appeal No.417-L of 2009
-:2:-
challenging an amount deducted by the appellant no.2 from its final
bill. The respondent invoked the arbitration Clause 25-A of the
agreement inter se the parties. On 29.6.1993 the Chief Engineer (South)
of the Highways Department appointed Mr. Muzaffar Iqbal Sheikh
Director (Admin) of the Highways Department as the Sole Arbitrator.
The learned Arbitrator entered upon the reference and arbitral
proceedings were held at Lahore. Appellant No.2 filed an annotated
reply to the respondent’s claim and was represented by the Executive
Engineer in person at the arbitral proceedings. On 1.11.1993 the
Arbitrator passed an Award at Lahore in favour of the respondent and
directed appellant No.2 to pay a sum of Rs.57,534.73 to the respondent
within two months. The respondent filed an application under Sections
14 and 17 of the Act before the Civil Court at Lahore for the purposes of
making the Award the Rule of the Court which was resisted by the
appellant inter alia on the ground that the Courts at Lahore did not
have the territorial jurisdiction, however vide judgment and decree
dated 23.10.1995 the Civil Court, Lahore dismissed the said application
on merits. Civil Appeal No.8/1996 of the respondent against such
judgment and decree succeeded and vide order dated 5.5.1997 the
learned Additional District Judge, Lahore made the Award the Rule of
the Court. The present appellants challenged the decision ibid through
Civil Revision No.368-D/98 before the Lahore High Court, Lahore which
was dismissed vide the impugned order dated 16.3.2004. Vide order
dated 17.06.2009 leave was granted by this Court inter alia to consider
the question(s) mentioned in the opening portion of this opinion (the point
about the award not being properly stamped was not pressed by the appellants’ counsel).
3.
The learned AAG Punjab has argued that the
impugned judgment was illegal as it was based on Section 20 of the
Civil Appeal No.417-L of 2009
-:3:-
Code of Civil Procedure, 1908 (CPC) which (provision) is inapplicable to
arbitral proceedings as the jurisdiction of the Court in such a case is
exclusively governed by Section 2(c) and Section 31(1) of the Act (being
special law on the subject). He argued that the Courts at Lahore lacked
jurisdiction in the matter as the subject matter of the reference was
related to Toba Tek Singh because the contract was signed and
executed at Toba Tek Singh. He relied on Ravi Glass Mills Ltd., Lahore
Vs. I.C.I. Pakistan Power Gen Ltd. (2004 YLR 250 = PLJ 2004 Lah
1818), M/s Nalanda Ceramic & Industries Ltd. Vs. M/s N. S.
Choudhury and Co. (P) Ltd. (AIR 1977 SC 2142) and Hitachi Limited
and another Vs. Rupali Polyester and others (1998 SCMR 1618).
4.
The learned counsel for the respondent contended that the
courts at Lahore would have jurisdiction on account of the fact that the
award was made at Lahore and because the head office of the appellant
department was located at Lahore. He relied on Habib & Sons Ltd. &
another Vs. Chaudhry Chiragh Din (NLR 1984 UC 352), Faqir
Muhammad Vs. Pakistan through Secretary, Ministry of Interior
and Kashmir Affairs Division, Islamabad (2000 SCMR 1312), Messrs
Kadir Motors (Regd.), Rawalpindi Vs. Messrs National Motors Ltd.,
Karachi and 3 others (1992 SCMR 1174), Abdul Qayyum Khan Vs.
Government of Punjab, Local Government and Rural Development
Department through Secretary and another (PLD 2003 SC 536) and
Federation of Pakistan through Secretary-General, Ministry of
Defence and another Vs. Sqn. Ldr. (R) Muhstaq Ali Tahirkheli and
another (PLD 2003 SC 930).
5.
Mr. Rassal Hassan Syed, learned amicus contended that in
Section 31(1) of the Act the words “the matter” precede the word
“reference” and therefore the place of the arbitration proceedings is not
Civil Appeal No.417-L of 2009
-:4:-
relevant and what matters is that the cause of action occurred at Toba
Tek Singh and the “matter” which is the subject of the reference relates
to Toba Tek Singh, therefore it is the Courts there which will have
jurisdiction on the basis of the cause of action arising there but Section
31(1) of the Act requires that the application to make an Award the Rule
of the Court be filed where the suit in respect of the dispute or the
subject matter of the reference may have been filed and in this regard
the courts at Lahore do have jurisdiction as the principal office of the
appellant was located at Lahore. He relied on Province of the Punjab
through Secretary to the Government of Punjab, Communication
and Works Department and 2 others Vs. Messrs Unique Traders
through Najam Maqsood, Government Contractor (MLD 2007 Lah
531), Messrs Lilley International (Pvt) Ltd. Vs. Messrs National
Highway Authority (PLD 2012 Sindh 301), Messrs Bakhtawar Singh
Balkrishan Vs. Union of India and others (1989 MLD 1277) (Supreme
Court of India judgment), Madhao Deshpande Vs. Madhav Dharmadhikaree
(1989 MLD 2389) (Supreme Court of India judgment), Messrs Trade Masters
(Pvt.) Ltd. through Chief Executive Vs. Messrs Shel Pakistan Ltd.
through Chief Executive (2010 CLD 670) and Ghulam Abbas Vs.
Trustees of the Port of Karachi (PLD 1987 SC 393).
6.
Ms. Ayesha Hamid, learned amicus argued that Section
31(1) of the Act is subject to the provisions of the Act which means that
the definition of a Court given in Section 2(c) of the Act is to be read into
the substantive provisions of Section 31(1) which sets out which Court
is to exercise jurisdiction in respect of an application to file an award in
Court; the plain reading of Section 2(c) ibid requires an exercise of
imagination whereby it should be considered which Court would
exercise jurisdiction in the absence of an arbitration agreement.
Civil Appeal No.417-L of 2009
-:5:-
According to her the Courts at Lahore would have jurisdiction on
account of Section 20 CPC which is predicated on the residence or place
of work of the defendants and on the place of occurrence of the cause of
action. The Act is a special law governing arbitration and therefore it
carves away a portion of the original jurisdiction of the courts of plenary
jurisdiction with respect to arbitration/the subject matter of the Act.
Admittedly, the provisions of the special law will override and prevail
over those of the general law, but only where there is a conflict between
the provisions thereof. In case there is no conflict, then the provisions of
the CPC will be applicable to the proceedings under the Act in terms of
Section 41 thereof. She argued that when the government participates
in commercial activities it is to be treated at par with other private
commercial enterprises and Section 20(a) and (b) CPC will apply
thereto. She relied on Hitachi Limited (supra), Lilley International
(supra), Harbans Singh Vs. Union of India (AIR 1961 Calcutta 659), M.
A. Jalil Vs. Group Capt. (Retd.) Salah-ud-Din Khan (1983 CLC
1685), Mian Fazal Muhammad Nizam-ud-Din Baig & Co. Vs. The
Province of West Pakistan and others (PLD 1969 Lah 453),
Bakhtawar Singh (supra), Province of Sind through the Secretary,
Education Department, Karachi and 2 others Vs. Ghulam Rasul and
35 others (1976 SCMR 297).
7.
Heard. There are a plethora of judgments that the Act is an
exhaustive and complete codification of the law governing arbitration.
Three modes have been prescribed by the Act for resorting to
arbitration: (1) without the intervention of the Court (Chapter II of the Act)
(2) with the intervention of the Court where no suit is pending (see Section
20) (3) during the pendency of a suit (see Sections 21 to 24). In the first
category, the parties to a civil dispute are free to enter into an
Civil Appeal No.417-L of 2009
-:6:-
arbitration agreement and without any recourse to the Court may refer
the matter to the arbitrator. However the Court has certain powers
which are exercised under the provisions of the Act, e.g. Sections 5, 8,
11, 12 and 33 etc. These powers can be exercised by the Court in
certain circumstances even before a reference has been made to
arbitration or during the pendency thereof, while Sections 14 to 19
forming part of Chapter II deal with post arbitration i.e. when the award
has been passed by the Arbitrator. The Court in the context of the
above proceeding shall be the one which has been defined in Section
2(c) of the Act.
For the second mode of arbitration too, it shall be the same Court
as envisaged by Section 2(c) ibid. However, it may be mentioned here
that according to Sub-section (5) of Section 20, after reference has been
made to the Arbitrator by the Court, arbitration shall proceed in
accordance with and shall be governed by the other provisions of the
Act as far as they can be made applicable.
The third kind of arbitration is covered by Chapter IV (Sections 21 to
24) and from the clear language of these provisions reference to
arbitration can be made when a civil suit is pending before the Court.
Section 25 of the Act enables the application of other provisions of the
Act (like sub-Section (5) of Section 20) to this mode of arbitration and also
provides for the authority of the Court to supersede arbitration under
Section 19 of the Act and to proceed with the suit. In this category there
is no ambiguity that it is the Court where the suit is/was pending and
which has referred the matter to Arbitrator that shall have exclusive
jurisdiction to deal with and decide all the issues which arising between
the parties within the scope of the Act and no other Court.
Civil Appeal No.417-L of 2009
-:7:-
8.
In order to elucidate in which Court the proceedings under
Chapters II and III or the miscellaneous provisions of the Act should
initially be initiated, if for example the case falls within the purview of
Sections 11, 12, 13 and 33 and/or if a Court has already taken
cognizance and passed some order in these proceedings; where should
the subsequent proceeding be filed such as, an application for seeking
extension of time for pronouncing the Award or an application for an
Award being made Rule of the Court, etc.? In this context Sections 2(c)
and 31(1) of the Act and Section 20 CPC are relevant. Section 2(c) reads
as under:-
“2(c). “Court” means a Civil Court having jurisdiction to
decide the question forming the subject-matter of the
reference if the same had been the subject-matter of a suit,
but does not, except for the purpose of arbitration
proceedings under section 21, include a Small Cause
Court.”
The above definition implies the following:-
i)
It must be a Civil Court;
ii)
It must have the jurisdiction to entertain
a suit with respect to the subject matter
of the reference.
In other words it shall be the Court in which a civil suit could be
initiated by the plaintiff for the enforcement of any of his right(s) and/or
for the redressal of his grievance(s). Thus for the purposes of
determining the jurisdiction of the Court where a civil suit should lie
the provisions of Sections 16 to 20 CPC are relevant (note: the relevant section
shall be discussed in proceeding part of this opinion). The other relevant provision,
i.e. Section 31(1), prescribes as under:-
Civil Appeal No.417-L of 2009
-:8:-
“31. Jurisdiction.--(1) Subject to the provisions of this
Act, an award may be filed in any Court having
jurisdiction in the matter to which the reference relates.”
According to the predominant view of the superior Courts regarding the
nature and object of this section, it is not an enabling provision, rather
one which identifies and defines the jurisdiction of the Court in which
an Award should be filed. The object of this section is to clothe a single
Court with jurisdiction in the matter so as to avoid conflict of
jurisdiction which may arise between different Courts so that all the
matters pertaining to arbitration, once having been initiated and dealt
with by one Court, should subsequently continue to be determined by
the same Court. The third relevant provision is Section 20 CPC which
reads as follows:-
“20.
Other suits to be instituted where defendants reside
or cause of action arises.-- Subject to the limitations
aforesaid, every suit shall be instituted in a Court within the
local limits of whose jurisdiction--
(a)
the defendant, or each of the defendants where there
are more than one, at the time of the commencement of the
suit, actually and voluntarily resides, or carries on
business, or personally works for gain; or
(b)
any of the defendants, where there are more than
one, at the time of the commencement of the suit, actually
and voluntarily resides, or carries on business, or
personally works for gain, provided that in such case either
the leave of the Court is given, or the defendants who do not
reside, or carry on business, or personally work for gain, as
aforesaid, acquiesce in such institution; or
(c)
the cause of action, wholly or in part, arises.
Civil Appeal No.417-L of 2009
-:9:-
Explanation I.--- Where a person has a permanent dwelling
at one place and also a temporary residence at another
place, he shall be deemed to reside at both places in respect
of any cause of action arising at the place where he has
such temporary residence.
Explanation II.--- A corporation shall be deemed to carry on
business at its sole or principal office in Pakistan or, in
respect of any cause of action arising at any place where it
has also a subordinate office, at such place.”
9.
It is settled law that in the absence of an arbitration
agreement inter se the parties, the dispute regarding the rights and
obligations that arise out of the contract including payment(s) or
amount(s) due under the contract would have been liable to be
adjudicated at the first instance in a Civil Court competent to entertain
a suit and jurisdiction would in those circumstances be governed by the
provisions of Sections 15 to 20 CPC. The question which requires to be
settled is in which manner are Sections 2(c) and 31(1) of the Act to be
interpreted in order to determine which Court would take cognizance of
an application to make an arbitral Award a Rule of Court and whether
Section 20 CPC would be applicable in its entirety in the process of
such determination. The further related question which emerged during
the course of hearing of the appeal was whether the “government” is
exempted from the purview of Section 20(a) and (b) CPC.
Before we proceed to answer the above questions let us examine
the case law referred by the learned counsel and amici curiae.
10.
As regards the case law referred to by learned counsel for
the appellant, Ravi Glass Mills (supra) elaborates the doctrine of forum
non-conveniens which means the power of a Court to decline
Civil Appeal No.417-L of 2009
-:10:-
jurisdiction when the convenience of the parties and the ends of justice
would be better served if actions were brought and tried before another
forum. This doctrine is not applicable to the facts and circumstances of
the present case as it is not the case of either party that the Civil Courts
at Lahore amounted to a forum of non-conveniens. Reliance on Nalanda
Ceramic (supra) is misplaced for the reason that the facts in that
particular case were different and this is founded upon the question
where the cause of action has arisen and Section 20(a) and (b) CPC was
not a moot point. The case of Hitachi Limited (supra) does not advance
the case of the appellant for the reason that the judgment considers
whether and in what manner the provisions of private and public
international law may affect the jurisdiction of Courts in Pakistan where
either the arbitration proceedings take place outside Pakistan and/or
where one of the parties to the dispute referred to arbitration is not
resident in Pakistan.
11.
Adverting to the case law referred by learned counsel for
respondent, Muhstaq Ali Tahirkheli (supra) does not advance the
respondent’s case for the reason that the issue of jurisdiction was
decided on the basis of where the cause of action arose. Similarly, the
cases of Abdul Qayyum Khan (supra), Faqir Muhammad (supra), Kadir
Motors
(supra)
and
Habib
&
Sons
Ltd.
(supra)
are
patently
distinguishable on their own facts and the question of law herein
involved was not an issue in those matters therefore a detailed analysis
of these dicta is not required.
12.
Mr. Rassal Hassan Syed, amicus referred to Unique
Traders (supra) in which the point in issue was whether the Civil Courts
at Lahore or Jhelum would have jurisdiction with respect to an
application under Section 17 of the Act arising out of arbitration. The
Civil Appeal No.417-L of 2009
-:11:-
finding of the Court was that as the property which was the subject
matter of the dispute was located at Jhelum, the agreement was
executed at Jhelum, and the alleged breaches occurred at Jhelum
therefore the Courts at Jhelum would have jurisdiction. The argument
in favour of the exercise of jurisdiction by the Civil Courts at Lahore on
account of the fact that the part of the arbitration proceedings were
conducted at Lahore was rejected. This judgment is distinguishable for
the reason that a close reading of the same discloses that at no point
was jurisdiction for the Civil Courts at Lahore claimed on account of the
fact that it was either the place of residence or place of work of the
defendant(s).
In Trade Masters (supra), the point in issue was whether the
parties, through in agreement, could confer exclusive jurisdiction on
one Court in preference to another and it was held, inter alia, that the
parties can validly agree to confer territorial jurisdiction to one out of
two or more Courts which otherwise had/have jurisdiction and that
such an agreement would be valid and enforceable. The question of
electing to submit to the jurisdiction of one Court in preference to
another is not at issue in the instant appeal.
Ghulam Abbas’s case (supra) is not relevant to the facts and
circumstances of the present appeal.
In the case of Madhao Deshpande (supra) the point in issue was
which of two Courts within the territorial jurisdiction of which the
properties which formed the subject matter of the dispute referred to
arbitration were situated, would exercise jurisdiction for the purposes of
making an arbitral Award the Rule of the Court. This is not at issue in
the instant appeal.
Civil Appeal No.417-L of 2009
-:12:-
The cases of Lilley International (supra) and Bakhtawar Singh
(supra) were referred by both learned amicus and will be referred to later
in this opinion.
13.
The case law referred by the learned amicus Ms. Ayesha
Hamid shall be discussed and reflected in our opinion.
14.
It is to be noted that Section 20 CPC confers jurisdiction on
a Court in two ways. Firstly, on the basis of where a defendant(s)
resides, carries on business or works for gain within its local limits.
Secondly on the basis of where the cause of action wholly or in part
arose within its local limits. Jurisdiction means the authority to decide.
The concept of jurisdiction of a Court encompasses (i) territorial
jurisdiction, (ii) pecuniary jurisdiction and (iii) subject matter
jurisdiction. The concept of jurisdiction has its genesis in the physical
power of a Court to issue process to persons within the reach of the
Court. Shorn of all extraneous ‘frills’, this is the essence of jurisdiction.
A Court is to decide matters when persons relating thereto are within its
reach. This basic jurisdiction is then regulated by defining the limits of
that ‘reach’ by setting pecuniary limits, or by assigning different
‘subjects’ within one territory to different Courts, for example, by
assigning banking and environmental matters to different Courts within
one territory. In R. Viswanathan and others Vs. Rukn-ul-Mulk Syed
Abdul Wajid since deceased and others (AIR 1963 SC 1) it was inter
alia held “an action in personam lies normally where the defendant is personally
within the jurisdiction or submits to the jurisdiction or though outside the jurisdiction
may be reached by an order of the Court”1. This principle resonates in a
judgment of the U.S. Supreme Court, Dennis Burnham Vs. Superior
Court of California, Country of Marin [110 S. Ct. 2105 (1990)]
1 Hitachi Limited case (supra), p.1638.
Civil Appeal No.417-L of 2009
-:13:-
wherein it was held “Historically the jurisdiction of Courts to render judgment in
personam is grounded on their de facto power over the defendant’s person”.2 This
concept was further developed in the case of Lulu B. McGee Vs.
International Life Insurance Company (2 L ed 2nd 233) where the
U.S. Supreme Court initially accepted and then abandoned ‘consent’,
‘doing business’ and ‘presence’ as the standard for measuring extent of
said judicial power over corporations and instead the Court decided
that “due process requires only that in order to subject a defendant to a judgment in
personam, if he be not present within the territory of the forum, he have certain
minimum contacts with it such that the maintenance of the suit does not offend
‘traditional notions of fair play and substantial justice’”3.
15.
Section 41 of the Act provides as under:-
“Procedure and Powers of Court.--Subject to the
provisions of this Act and of rules made thereunder--
(a)
the provisions of the Code of Civil Procedure,
1908, shall apply to all proceedings before the Court, and
to all appeals under this Act, and
(b)
………………………………………………………….
Provided that…”
Section 41 ibid makes the provisions of the CPC applicable to the
proceedings in respect of arbitration before the Court.
16.
As the question arises on what basis are Courts to exercise
jurisdiction in terms of Sections 2(c) and 31(1) of the Act, it is
instructive to consider the case of M. A. Jalil (supra) wherein it was
held:-
2 Ibid, p.1639.
3 Ibid, p.1640.
Civil Appeal No.417-L of 2009
-:14:-
“…section 31 of the Act deals with the jurisdiction of the
Court. It provides that all matters relating to the
reference should be made before the same Court in which
the first application in connection with the arbitration
matter was made and that it will be the said Court which
alone be competent to decide all questions in relation to
that particular arbitration. It also provides for the Court
where an award is to be filed. By reading section 31 with
the definition of the term ‘Court’ given in section 2(c) of
the Act, it is plain that the award is to be filed in that
Court which will have jurisdiction to decide the question
forming the reference if the same had been the subject
matter of the suit. Thus, to determine the question whether
the Court before which the applications under the
provisions of Arbitration Act, 1940, for instance under
sections 31, 32 and 44, are filed, has jurisdiction to
entertain them or not, one should first of all ascertain
what the questions are which form the subject-matter of
the reference to arbitration. Then one is to ask,
supposing these questions had arisen in a suit which is
the Court which would have jurisdiction to entertain the
suit? That would be the Court having jurisdiction under
the Arbitration Act also.”
(Emphasis supplied)
Further:-
“Moreover, in view of the provisions of section 14 read
with section 31 of the Arbitration Act, it is reasonable to
construe that the award is to be filed in that Court which
will have the jurisdiction to decide the question forming
the subject-matter of the reference if the same had been
the subject-matter of a suit”.
Civil Appeal No.417-L of 2009
-:15:-
17.
The relevant facts of Lilley International’s case (supra) are
that a construction contract with respect to the Hyderabad-Hala
Highway was executed in Islamabad between NHA and a contractor,
where the NHA head office was situated. A dispute arose which was
referred to arbitration. The Arbitrator entered upon the reference in
Karachi, with the consent of the parties, and made the Award at
Karachi which he filed in the Sindh High Court, Karachi. Meanwhile
NHA filed objections in respect of the Award before the Civil Court at
Islamabad (which was subsequently transferred to the Islamabad High Court). The
judgment holds that for the purposes of determining which Court is to
assume jurisdiction with respect to the Award it needs to be determined
which Court, in the absence of an arbitration agreement, would have
jurisdiction over the subject matter of the reference if instead, a civil
suit was to be filed. Further, it held that the place where arbitration is
held or where the Award is made is irrelevant and the courts at such
place will not assume jurisdiction on account thereof.
18.
It is settled law that in terms of Section 20 CPC different
Courts may assume jurisdiction on the basis of the defendant’s place of
business or residence and/or where the cause of action wholly or partly
arises. Section 2(c) read with Section 31(1) of the Act requires that we
suspend the existence of the arbitration agreement to consider which
Court(s) may have jurisdiction with respect to the “subject matter of the
reference” if a civil suit were to be filed in respect thereof. The subject
matter of a reference cannot be limited to the physical construction of
the road at Toba Tek Singh as contended by the appellants. The subject
matter of the reference is an inclusive term which would cover the
physical road constructed at Toba Tek Singh, the contract executed at
Toba Tek Singh, the arising of all the disputes regarding the violation
Civil Appeal No.417-L of 2009
-:16:-
and enforcement of the terms and conditions of the contract, and the
rights emerging and based thereupon, including payment of/deduction
from the final bill of the respondent. In these circumstances, in the
absence of an arbitration agreement, the respondent could have filed a
civil suit at Toba Tek Singh on the basis that the cause of action
accrued therein. Could the respondent have filed a civil suit at the Civil
Courts at Lahore (on the basis that the head office of the Highways Department was
situated at Lahore)? In Union of India and another Vs. Sri Ladulal Jain
(AIR 1963 SC 1681) it was held that the provisions of Section 20 CPC
with respect to ‘carries on business’ or ‘personally work for gain’ do
apply to the Government. It was observed:-
“Running of railways is a business. That is not denied.
Private companies and individuals carried on the
business of running railways, prior to the State taking
them over. The only question then is whether the running
of railway ceases to be a business when they are run by
Government. There appears to be no good reason to hold
that it is so. It is the nature of the activity which defines its
character. Running of railways is such an activity which
comes within the expression ‘business’. That fact as to
who runs it and with what motive cannot affect it”.
It was further observed that the profit element was not necessary for
carrying on business.
19.
In the case of Fazal Muhammad (supra) it was held, inter alia,
that:-
“It is admitted before us that the words “actually and
voluntarily resides” or “personally works of gain.” In
(sic) this section are applicable to natural persons and
Civil Appeal No.417-L of 2009
-:17:-
not to legal entities like a Government. We have only to
see if it can be said in the case of the Government that it
“carries on businsess” (sic) at its principal office in
Pakistan for the purpose of this section”.
Fazal Muhammad (supra) cites from the judgment reported as R. J.
Wyllie and Co. Vs. Secy. of State (AIR 1930 Lah 818) and held in this
connection that the words ‘actually and voluntarily resides’ “refer only to
natural persons and not to legal entities such as limited companies and Governments
and that ‘business’ in this section meant the commercial business and not the business
of Government”. The following passage from Pratap Chandra Biswas Vs.
Union of India (AIR 1956 Assam 85) is reproduced in Fazal
Muhammad (supra):-
“It is difficult to hold that even commercial ventures of the
Government
assume
the
colour
of
its
ordinary
administrative
or
Governmental
functions.
In
its
commercial undertakings the Government is entering into
contracts with the citizen. These contracts are governed
by the ordinary law of the land and they are enforceable
between the parties. The Government has no privileged
position in regard to these contracts nor can it have any
privileged position for purposes of clause 12 of the Letters
Patent or section 20, C.P.C. unless the law lays down
expressly that these provisions or parts of these provisions
have no application to business undertakings of the
Government”.
(Emphasis supplied)
However, the case of Fazal Muhammad (supra) relies on an obiter dicta
from Pakistan Vs. Waliullah Sufyani (PLD 1965 SC 310), wherein
Civil Appeal No.417-L of 2009
-:18:-
Kaikaus J held that “…a Government neither resides anywhere nor carries on
business nor works for gain”, and concluded that:-
“These activities which may be truly commercial in the
hands of the private agencies may not necessarily partake
of the same character after they are undertaken by the
Government in persuit (sic) of its welfare policies. A
private person may run a hospital as a business venture.
But it may altogether cease to retain that character in the
hands of the State running the same for the welfare and
service of its people. In our opinion, the dominant, if not
the sole object in running a business is to make profits. In
contradistinction to this, the immediate and paramount
consideration before the Government in providing for
these facilities and services, is the welfare of its people.
“They have to be operated for use and not for profit,”
according to H. J. Laski, in his “Grammer (sic) of
Politic”, at p.436. This then is the essential difference in
the nature and character of these two activities…From
the above discussion it follows that those words in section
20 of the Code have been used in their primary business
and natural meanings and connote a business carried on
for pecuniary profits and gains by the business and
trading houses. These have no application to the case of
the Government engaged in commercial activities as a
part of its duties for the welfare of its people”.
20.
Fazal Muhammad’s case (supra) was challenged in due
course before this Court but through the judgment cited at Mian Fazal
Muhammad (deceased) through his legal heirs Vs. Province of West
Pakistan and others (1975 SCMR 312) this Court declined to decide
the questions raised in the leave granting order as, for reasons
recorded, the matter had become infructuous and there remained no
live issues to be decided. In this view of the matter, we find that there is
Civil Appeal No.417-L of 2009
-:19:-
no definitive finding by this Court as to whether the Government, when
it undertakes commercial activities, is to be treated as a creature apart
or at par with other commercial undertakings.
21.
In the case cited at Khawaja Ahmad Tariq Rahim Vs. The
Federation of Pakistan through Secretary, Ministry of Law and
Parliamentary Affairs, Islamabad and another (PLD 1992 SC 646) (12
member bench) it was held that Government means:-
“…“the whole class or body of office-holders or
functionaries considered in the aggregate upon whom
devolves,
the
executive,
judicial,
legislature
and
administrative business of the State”…
In Tariq Rahim’s case (supra) the following extract from Master Khusrow
Amir Khan Niazi Vs. Province of Punjab and 2 others (PLD 1975 Lah
819) was cited:-
“…the word “Government” includes in its ordinary
connotation, legislative, judicial and executive functions,
and the ordinary connotation should be adopted in the
absence of any indication to the contrary.”
22.
The commercial activities undertaken by a government are
not included in the “ordinary connotation” of the word “Government”.
Indeed we are not persuaded by the reasoning of the learned High Court
in Fazal Muhammad’s case (supra) to the effect that commercial
activities are undertaken by Government for welfare purposes and for
that reason they are to be treated as part of its functions. The
commercial activities do not form a part of the core functions of a
government which remain its executive, judicial, legislative and
administrative functions. When a government enters into the domain of
Civil Appeal No.417-L of 2009
-:20:-
business and commerce it cannot be given a premium of its position
and must be treated at par with its competitors or near competitors in
the private sector. It must be subject to the laws of the land. Its
commercial activities must be regulated in the same manner as those of
the private sector. It cannot be exempted therefrom simply by the dint
of being a “government”. Hence when a government is engaged in the
‘business’ of road building through the vehicle of construction contracts
with a private contractor then it cannot be allowed to claim privileges on
account of being the government. In these circumstances it would be
liable to be treated as a corporation in terms of Explanation II to Section
20 CPC. In the case of Bakhtawar Singh (supra) the Supreme Court of
India upheld the decision of the Delhi High Court dismissing an the
application of a contractor under Sections 14 and 17 of the Indian
Arbitration Act by holding that the phrase ‘actually and voluntarily’
resides, ‘carried on business’ or ‘personally works for gain’ do not apply
to legal entities like the Union of India and only to natural persons. But
this inapplicability is only in reference to the sovereign functions
of the State (as the contract pertained to maintaining armed forces therefore it was
considered to be a sovereign activity of the State). When the State carries on
commercial activities then Section 20 CPC would apply, as held in
Ladulal Jain’s case (supra). We find ourselves in agreement with this
subtle but important distinction. The Government in the exercise of its
core functions viz, its executive, legislative, judicial and quasi-judicial,
and administrative roles exercises sovereign powers. But when it
engages in commercial activities it is not exercising sovereign power,
rather it is engaging in business/commercial activities and merits no
undue advantage over ordinary litigants: it is subject to Section 20 CPC
in its entirety. Therefore, the Civil Courts at Toba Tek Singh and Lahore
Civil Appeal No.417-L of 2009
-:21:-
would have had concurrent jurisdiction with respect to the putative civil
suit. Having established the concurrent jurisdiction of the Civil Courts
at Toba Tek Singh and Lahore in case a civil suit were to be filed by the
respondent, we can now return to the circumstances as they existed
inter se the parties i.e. the arbitration agreement was a part of the
contract between the appellant and the respondent. A conjunctive
reading of Sections 2(c) and 31(1) of the Act would therefore confer
jurisdiction, for purposes of filing an application under Sections 14 and
17 of the Act for making an Award a Rule of the Court on both the Civil
Courts at Toba Tek Singh and Lahore. Therefore, the Award was
competently filed before the Civil Court at Lahore to be made a Rule of
Court.
23.
During the course of the hearing of the instant appeal we
asked the learned counsel for the appellant whether in the absence of
an arbitration agreement a civil suit in respect of the dispute inter se
the parties could have been filed in the Civil Court at Lahore. He agreed
that such a civil suit could indeed have been competently filed at
Lahore. In light of the above, this appeal has no merits and is hereby
dismissed.
In the case of Ghulam Rasul (supra) it was held:-
“As to the second ground, if we may say so with due
respect we are rather surprised at the objection taken on
behalf of the Government. Courts expect the Government
to be the noblest of litigants and would not engage in
litigation in vain much less against its own employees. In
the instant case the matter was covered by express
provision of the Constitution and the amount involved was
trivial. Any attempt to avoid justice being done on a
Civil Appeal No.417-L of 2009
-:22:-
technical plea, unless any high principle is involved,
should be avoided”.
We endorse the aforesaid view: Governments should litigate only where
necessary and the might of the State should not be employed to make
an ordinary litigant run from pillar to post. In the present and peculiar
circumstances of the instant case we are persuaded to direct the
appellants to make immediate payment of a sum of Rs.57,534.73/- to
the respondent as per the Award dated 1.11.1993. Before parting we
appreciate the valuable assistance provided by the learned amici curiae.
JUDGE
JUDGE
Lahore, the
6th September, 2016
Approved For Reporting
Waqas Naseer/*
| {
"id": "C.A.417-L_2009.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE MUSHIR ALAM
MR. JUSTICE FAISAL ARAB
MR. JUSTICE SAJJAD ALI SHAH
CIVIL APPEAL NO. 42-K OF 2016 &
H.R.C. NO. 36629-S OF 2018
(On appeal against the judgment dated 19.02.2016 passed
by the High Court of Sindh, Hyderabad in R.A. No.
272/2011)
Manzoor Hussain and another
(In CA 42-K/2016)
Application for early hearing filed by Mst. Azra
Shamim, respondent No. 2
(In HRC 36629-S/18)
… Appellants
VERSUS
Khalid Aziz and others
(In CA 42-K/2016)
… Respondents
For the Appellants:
Mr. Abid S. Zuberi, ASC
Mr. K.A. Wahab, AOR
For Respondents (1-2): Syed Abdul Waheed, ASC
Ms. Lubna Ali d/o Mst. Azra Shamim
On Court’s Notice:
Mr. Shoukat Bijoro, Mukhtiarkar, Tando Adam
Mr. Umer Farooq, Tapedar
(They appeared subsequently)
Date of Hearing:
07.09.2018
JUDGMENT
FAISAL ARAB, J.- The dispute in these proceedings
relates to 56 acres and 28 ghuntas of land situated in Deh and Taluqa
Tando Adam, District Sanghar. A big part of this land was an evacuee
land, which was granted to Shah Azizullah Abbasi and her wife Mst.
Tayyeba Khatoon against their claim. He died on 30.05.1992 and was
survived by his widow Mst. Tayyeba Khatoon, respondent No. 1 (son)
and respondent No. 2 (daughter). On 17.09.2002, Mst. Tayyeba
Khatoon also died. To seek transfer of the land in the revenue record in
their names respondents No. 1 & 2 approached the Mukhtiarkar but
were told that their parents had already sold the property to
respondents No. 3 and 4 who thereafter sold the property to the
appellants. This led respondents No. 1 and 2 to file a suit before the
CIVIL APPEAL NO. 42-K OF 2016 &
H.R.C. NO. 36629-S OF 2018
2
Senior Civil Judge, Tando Adam for declaration, permanent injunction,
cancellation of documents, possession and mesne profits. The suit was
decreed vide judgment dated 30.04.2010. It was held that the
appellants have failed to establish that the parents of the respondents
No. 1 & 2 have sold the land to respondent No. 3 & 4. The appellants
then filed an appeal before the Additional District Judge, Tando Adam,
which was allowed vide judgment dated 24.09.2011 and the judgment
of the Trial Court was reversed. Aggrieved by such decision, the
respondents No. 1 & 2 filed a Revision Application before the High
Court, which was allowed, the judgment of the Appellate Court was set
aside and that of the Trial Court restored. While allowing the revision
application, the learned High Court held that the appellants have failed
to prove that the land is question was sold to respondent No. 3 & 4 by
the deceased owners; that no document of sale transaction with the
deceased was placed on record; no witness of the sale transaction
appeared in Court and even the revenue officials, who allegedly
attested such entries, were not examined as witnesses. This decision
has been challenged in this appeal.
2.
Learned counsel for the appellants inter alia submitted
that the judgment of the High Court is entirely based on misreading
and non-reading of evidence as there was no material to hold that the
revenue record was tampered. It was also argued that the suit filed by
the respondents was barred by time.
3.
Learned counsel for respondent No. 1 & 2 in rebuttal
contended that it was for the appellants to prove that the sale
transactions had taken place between their parents and respondents
No. 3 & 4 but they failed as neither any document as to payment of
sale consideration was produced nor the witnesses of sale transactions
CIVIL APPEAL NO. 42-K OF 2016 &
H.R.C. NO. 36629-S OF 2018
3
or the officials before whom the alleged sale took place were examined
by the appellants and that the entire claim of the appellants was solely
based on the revenue entries, which are fraudulent.
4.
Apart from examining the record, we out of abandoned
caution summoned the revenue record and upon examining it found
that Shah Azizullah sold 3-39 acres of land bearing survey No. 483/3,
through registered sale deed dated 25.05.1987 to one Abdul Sattar
which is not subject matter of present proceedings and yet we are
surprised to note that the disputed sale transactions made in 1986 and
1987 are based merely on oral statements purportedly made by Shah
Azizullah and her wife before the revenue authorities and allegedly
witnessed by persons namely Furqan son of Gul Muhammad Mirani,
Noor Muhammad Sheikh son of Ladhu Khan Sheikh, Sher Muhammad
son of Babu Khan Bhatti and Muhammad Yaqoob son of Qaiser Junejo
none of whom are from the side of the parents of respondents No. 1 &
2. Additionally, the disputed statements neither contains their CNIC
numbers nor their addresses, only their purported thumb impressions,
which show that they were also illiterate. Although the CNIC numbers
would have helped in confirming that these witnesses actually affixed
their thumb impressions on the revenue record but due to the absence
of the CNIC numbers, it could not be verified from NADRA’s database.
In any case, as none of the witnesses of the disputed statements were
examined in Court, it is sufficient to hold that the transaction of sale
has not been proved. Additionally, from the examination of the register
of village Forms VII, the page that contains one of the two disputed
transfer entries is numbered as ‘58’. The font of the page number ‘58’ is
quite bigger than the page numbers on the remaining pages of the
same register; that the imprint of page number ‘58’ is also much darker
CIVIL APPEAL NO. 42-K OF 2016 &
H.R.C. NO. 36629-S OF 2018
4
than the imprint of the rest of the page numbers of the same register.
We may mention here that when pages of a register are numbered with
a numbering machine, it is not possible that the size of numbers on
pages would be different. Even the impression of ink on a particular
page of a register would be the same in comparison to previous and
subsequent pages. Either the impression would be light or darker but
in the present case the impression on page No. ‘58’ is much
pronounced i.e. it is darker than the impression of page numbers on
the earlier and subsequent pages. This page also appears to have been
subsequently inserted in the register as it is taped from the spine. All
this further leads us to draw inference that page number ‘58’ was not
part of the same register but has been subsequently inserted with the
intention to show a back dated transaction in order to defeat the plea
of limitation in case the matter is taken to Court.
5.
With regard to the disputed sale transaction of 20-34 acres
allegedly entered into with Mst. Tayyeba Khatoon, it was pleaded that
she being resident of Karachi came to Tando Adam with her relative to
record her oral statement for transferring the land. Interestingly,
relative was not made a witness in the purported statement. Then the
alleged witnesses of the disputed statement were also not examined in
court. Their CNIC numbers too have not been recorded nor have their
addresses been given. Even the CNIC number of Mst. Tayyeba Khatoon
is not mentioned in the statement. This second sale transaction also
could not be proved. Let a copy of this judgment be sent to the
Member, Board of Revenue so that appropriate disciplinary action shall
be taken against such officials of the revenue department who have
manipulated the relevant revenue record. In case any of them has
retired, criminal action may be initiated.
CIVIL APPEAL NO. 42-K OF 2016 &
H.R.C. NO. 36629-S OF 2018
5
6.
In view of what has been stated above, we find no
exception to the conclusions drawn by the learned Single Judge of the
High Court in its well reasoned judgment, therefore, we do not find any
merit in this appeal, which is accordingly dismissed with no order as to
costs.
H.R.C. NO. 36629-S OF 2018
7.
Since, judgment is being rendered on merits in this appeal
the above referred HRC for early hearing of the said appeal has become
infructuous and is disposed of accordingly.
JUDGE
JUDGE
JUDGE
Announced on 22.11.2018 in Islamabad.
Approved For Reporting
Khurram
| {
"id": "C.A.42-K_2016.pdf",
"url": ""
} |
SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
PRESENT:
Mr. Justice Guizar Ahmed, CJ
Mr. Justice Faisal Arab
Mr. Justice Ijaz ul Ahsan
J)
CIVIL PETITION NO.852 OF 2018, CMA NO.5668 OF 2020 IN C.A.
NO.421 OF 2018, CMA NO.5669 OF 2020 IN C.A. NO.421 OF 2018,
CMA NO.955 OF 2017 IN C.A. NO.421 OF 2018, CMA NO.956 OF
2017 IN C.A. NO.422 OF 2018 AND CMA NO.957 OF 2017 IN C.A.
NO.423 OF 2018
(Against the judgments dated 24.11.2016, 3.1.2018, passed by the Islamabad High
Court, Islamabad, High Court of Sindh, Karachi, in I.C.As. No.292 to 294 of 2016,
C.P. No.3134 of 2015 and C.P. No. 1837 of 2014, respectively)
CA. 421/2018
Privatization Commission through its Secretary
Vs. Aftab Hussain and others
CA. 422/2018
Privatization Commission through its Secretary
Vs. Ch. Siraj Abbas and others
CA.42312018
Privatization Commission through its Secretary
Vs. Ch. Siraj Abbas and others
CA. 1911/2019
Chairman and others (Officer & Non-officers)'
Pakistan Petroleum Limited Officers Association
and others Vs. Federation of Pakistan through
Ministry of Finance Revenue and others
CP.85212018 Muhammad At-if Akhtar and others Vs
Federation of Pakistan through Ministry of
Petroleum and Natural Resources, Islamabad
and others
CMA.566812020 in Privatization Commission through its Secretary
CA. 421/201 8
Vs. Aftab Hussain and others
CAM. 566912018 in Privatization Commission through its Secretary
CA.42112018
Vs. Aftab Hussain and others
CMA. 95512017 in Privatization Commission through its Secretary
CA.42112018
Vs. Aftab Hussain and others
CMA. 956/2017 in Privatization Commission through its Secretary
CA .422/2018
Vs. Cit. Siraj Abbas and others
CMA.95712017 in Privatization Commission through its Secretary
CA.42312018
Vs. Ch. Siraj Abbas and others
For the Appellant(s)
Mr. Sohail Mehmood,
(in CAs.421 to 423 of
Addl. Attorney General for
2018) and
Pakistan
LAs42I of 2018, etc.
For Respondents
(in CA. 19-K of 2019 as
Federation)
For Respondents No.1 to 239
,(in CA.421/2018, Respondents
No.1 to 32 (in CA.422/2018)
and
For Respondents No.1 to 17
(in CA.423/2018)
Ch. Akhtar Au, AOR along Mr.
Ikram-ul-Haque Qureshi,
Sr.Legal Counsel head of
Privatization Commission of
Pakistan.
Mr. Abdul Rahim Bhatti, ASC
Syed Rifaqat Hussain Shah, AOR
For OGDCL
Mr. Khurram Mumtaz Hashmi,
(in CAs.421 to 423/2018)
ASC
For Applicant (s)
(in CMAs.5668 & 5669/2018)
For the Appellant (s)
(in CA. 19-K/2019
Syed Asghar Hussain Sabzwari,
Sr. ASC
Mr. Mehmood A. Sheikh, AOR
Mr. Mazhar Ali B. Chohan,
AOR/ASC
(via video link from Karachi)
For the Petitioner (s)
Mr. Salahuddin Ahmed, ASC
(in CP.852/20 18
For Respondent(s)
:
N. R.
H
(in CP.852/2018)
H:
For Respondent (PPL)
Mr. Muhammad Akif Khan,
Sr. Legal Counsel
Date of Hearing
22.10.2020
ORDER
GULZAR ARMED, CJ.- In Civil Petitions No. 382 to 384 of
2017, leave to appeal was granted vide order dated 10.01.2018, which
is as follows: -
"In order to consider inter alia (1) whether the
Cabinet's decision dated 05.08.2009 while approving
the Benazir Employees Stock Option Scheme
(BESOS) is in violation of Article 154 of the
Constitution of Islamic Republic of Pakistan, 1973
(the constitution); (ii) whether the benefits given to
the employees under the BESOS were not part of the
Terms and Conditions of their employment and
therefore, the same could not be enforced under the
CAs.421 of 2018, etc.
-
E
law; (iii) what is the effect of the judgment dated
03.01.2018 passed in Constitution Petition
No.1837/2014 by the learned High Court of Sindh
whereby it declared the said decision of the Cabinet
to be violative of the Constitution. Leave is granted in
these petitions."
2. The respondents in Civil Appeals No.421-423 of 2018 filed
writ petitions in the Islamabad High Court, Islamabad (hereinafter
called 'the Islamabad High Court'), which were disposed of by a
learned Single Judge of that Court vide judgment dated 29.04.2016, in
the following terms:-
11. It has already been held that pursuant to
issuance of the "Unit Certificates" rights were accrued
in favour of the petitioner. Admittedly, their cases
have been processed and sent to the Privatization
Commission so that the funds could be released. This
Court has been informed that the implementation of
the Scheme is being considered by the Ministry of
Finance. There is no cavil to the proposition that
policies formulated and even implemented by the
Federal Government can be revamped, considered or
altered provided the rights which have come into
existence remain protected. It would, therefore, be
just and proper to direct as follows:
i)
The ministry of Finance while considering the
implementation of the Scheme shall take into
consideration the rights which have accrued in
favour of the petitioners.
ii)
The federal Government shall ensure that the rights
of the petitioners remain protected and to their
extent the benefits under the Scheme are not
denied in case it is decided to revamp, alter or wind
up the scheme.
iii)
The Federal Government shall take a decision to the
extent of the rights of the petitioners, preferably
within ninety days from the date of receipt of this
order."
This judgment of the learned Single Judge was challenged by
filing of three Intra Court Appeals (WAs) and a learned Division Bench
CAs.421 of 2018, etc.
- -
,of the Islamabad High Court, vide impugned judgment dated
24.11.2016, dismissed all the three ICAs. The appellants in Civil
Appeal No. 19-K of 2019 and the petitioners in Civil Petition No.852 of
2018 filed two constitution petitions in the High Court of Sindh,
Karachi (hereinafter called "the High Court of Sindh), which were
dismissed by a learned Division Bench of that Court vide impugned
judgment dated 03.01.2018.
3. The short facts of the matter are that the respondents in
'Civil Appeals No.421-223 of 2018 were employees of Oil and Gas
Development Corporation Limited (OGDCL), while the appellants in
Civil Appeal No. 19-K of 2019 and Petitioners in Civil Petition No.852 of
2018 were employees of Pakistan Petroleum Limited (PPL), Both
OGDCL and PPL are entities of the Federal Government of Pakistan.
The Federal Cabinet approved a policy in the name of Benazir
Employees Stock Option Scheme (hereinafter called 'the Scheme').!
The Scheme, inter alia, provides as under: -
"THAT THE SALIENT FEATURES OF BENAZIR
EMPLOYEES STOCK OPTION SCHEME (BESOS)
BESOS AS APPROVED
BY THE CABINET ON 5TH AUGUST 2009 ARE AS FOLLOWS:-
1.
Empowerment of Employees of SOEs/other GoP
shareholding through transfer of twelve percent
(12%) of the GoP shareholding and a seat on the
Board.
2.
All permanent employees and contractual
Employees (with minimum service of live years) are
eligible for the BESOS and can only exist on
retirement or otherwise easing to be Employee of
the SOE.
H
3.
Twelve percent (12%) of the GoP shareholding to be
transferred for free.
II
4.
SOEs to create a Trust for BESOS with token cash.
The board of Trustees to consist of Government
Nominees and Employees representatives.
CAs.421 of 2018, etc.
-5-
5
The Shares of respective SOE to be transferred to
the Trust.
Trust to assign units to Employees in proportion to
their entitlement on the basis of length of service
through Unit Certificate.
7
Unit Certificates are not saleable, however, these
can be pledged or hypothecated.
8, Employees to surrender the Unit Certificates to
Trust on retirement or otherwise ceasing to be an
Employee.
9.
Trust to make payment for surrendered Unit.
10. Surrendered Units to be returned by Trust to the
Federal Government.
11. The GoP will guarantee the buyback of the
!1
surrendered units on the following basis:-
a.
The market value of the listed companies.
b.
Break-up value at historical cost based on
the last audited financial statements
excluding re-valuation reserves for the
unlisted and private limited companies.
C. On net-worth based on the last audited
financial statements excluding re-valuation
reserves for SOEs established under Special
Acts and Ordinance till such time they are
corporatized.
12. Employees representative on the Board to be
nominated by GoP through Line Ministry/Holding
Corporation on the recommendation of Trust. Such
representative to be a Charted Accountant or a
Corporate Lawyer o, an eminent professional having
minimum professional having professional
experience of 15 years or a Senior Government
official not below the status of a Joint Secretary.
13.
Trusts are entitled to receive dividends, if any from
the date of applicability of the BESOS.
14
Funding armaments:-
50 % of the dividends to be transferred to central
' I
revolving fund for annual payout and 50% to be
distributed amongst the employees. This will result
into an annual payout of Rs.1,670/- billion which
will be funded by GoP.
15. A central revolving fund out of the future dividends
to be established in Privatization Commission for
payments against surrendered Unit Certificates.
If
C4s.421 02018. etc.
- 6-
16.
The BESOS to be implemented by the Privatization
Commission in coordination with the Line Ministry
/holding corporation/ respective SOEs.
17.
Corporation of the SOEs established under Special
Acct/Ordinance by the Privatization Commission
in-coordination with the Line Ministries."
4. Pursuant to this Scheme, the OGDCL Employees
Empowerment Trust (hereinafter called 'the Trust) as well as PPL
Employees Empowerment Trust were executed and 12% shares of
OGDCL and PPL in the shape of Unites Certificates were allocated and
distributed to their employees. It seems that as many as 130
retired/ deceased employees of OGDCL benefited from this scheme
while in PPL about 2693 employees benefited from this scheme. The
scheme having huge financial implications on the funds of the Federal
Government, could not be continued and its payment was stopped.
The respondents in Civil Appeal No.421-423/ 18 so also the appellants
in Civil Appeal No.19-K/2019 and the petitioners in Civil Petition
No.852 / 2018 had filed petitions for seeking direction for making
payment to them under the scheme.
S. We have heard the learned counsel for the parties at
(length and have also gone through the record of the case. Leave was•
granted to consider three questions, reproduced above, which shall be
taken up one by one. The first question reads as under: -
(i)
Whether the Cabinet decision dated
05.08.2009 while approving the Benazir
Employees Stock Option Scheme (BESOS) is in
violation of Article 154 of the Constitution of
Islamic Republic of Pakistan, 1973 (the
Constitution)
6. The main controversy is that whether the Scheme, which
was launched in furtherance of a cabinet's decision to transfer to the
CAs.421 of 2018, etc.
-7.-
employees, through the means of trust deeds, 12% shares of
Government of Pakistan in State Owned Enterprises ("SOEs") and
other Government of Pakistan Shareholdings, was lawfully prepared.
In this regard, learned counsel for the appellants, at the outset,
contended that the very issuance of the Scheme was illegal, in that, its
purpose was to benefit the selected number of employees of the SOEs
'and further that no consideration whatsoever was provided in the
Scheme for entitling the employees of the SOEs to the benefit of the
Scheme. Further, the Scheme itself was a political stunt at the State
expense with no benefit whatsoever to any of the SUEs, rather the
Scheme became a huge burden on the public exchequer and could not
be allowed to be continued being contrary to the Constitution and was
even against the Rules of Business, under which the Scheme is said to
have been made.
7. First of all we shall consider the Scheme of the
Constitution of the Islamic Republic of Pakistan ("the Constitution")
whereby it envisaged arrangement for the exercise of executive
authority in the Federation. Article 97 of the Constitution lays down I
that the executive authority of the Federation is coextensive with th&!
Parliament's power of making laws. However, there is a qualifying'
phrase 'subject to the Constitution' at the beginning of Article 97 ibid. I
It clearly provides that the extent of the executive authority of the
Federation is not absolute rather circumscribed by other
Constitutional provisions. The executive authority of the Federation, to
be exercised by the Federal Government/ Federal Cabinet, is
subordinated to the Constitutional division of powers among different
state organs. Reliance may be made to the case of Messrs Mustafd
Impex, Karachi and others vs. The Government of Pakistan through
CAs.421 of 2018. etc.
-8-
Secretarq Finance. Islamabad and others (PLD 2016 Supreme Court
1808), wherein it was held as under: -
"The use of the phrase "subject to the constitution" in
Article 97 indicates that the executive authority of the
Federation, as exercised by the Federal Government,
is subordinated to the constitutional scheme in
relation to the conferment of constitutional powers
and responsibility on the three great organs of the
State. It would be recollected that all executive
actions of the Federal Government are expressed to
be taken in the name of the President. It is not the
actions of the Secretary, or head of a Division, as
such, but the executive actions of the Federal
Government which are to be taken in the name of the
President."
8. In this background, it needs to be determined as to what
is the nature of the Scheme, and whether Federal Cabinet was
competent to independently take a decision about it. Apparently, the
emerged from a decision taken by the cabinet to empower the
employees of SOEs and other Government of Pakistan Shareholdings
through transfer of shares and representation on the Board. A
substantial portion of government holding in SOEs and other
Government of Pakistan Shareholdings i.e. 12% shares was to be
transferred for free. Thus, huge amount of public money was involved
in the matter. The scheme was not limited to one or two government
enterprises but was designed generally for all the SOEs and other
'Government of Pakistan Shareholdings. It is evident that the cabinet's
decision to launch the Scheme was not merely related to the internal
management or day to day working of an SOE or Government of
Pakistan Shareholding, rather, it was a major decision taken to
provide financial benefit to the employees of SUEs out of the
CAs.421 o(2018. etc.
ME
Government of Pakistan Shareholdings. In fact, it was an extensive
measure affecting dozens of SOEs/ Government of Pakistan
Shareholdings and entailing financial implications for the state, which
was done within the realm of policy formulation. It needs to be seen
whether the Federal Cabinet was competent to take a policy decision
about launching of the Scheme or whether, in view of the qualifying
phrase of Article 97 ibid, its authority was restricted in the matter.
9. The relations between the Federation and the Provinces
are managed in terms of Chapter 3 of Part V of the Constitution. One
of the modes provided therein is the Council of Common Interests
,("CC!"). Article 154 of the Constitution provides the functions and
rules of procedure of the CCI. Clause (1) thereof provides that CCI
"shall formulate and regulate policies in relation to matters in Part II of
the Federal Legislative List ("FLL") and shall exercise supervision and
control over related institutions." Entry No.3 of Part II of FLL, inter
alia, deals with the institutions, establishments, bodies and
corporations administered or managed by the Federal Government,
and undertakings, projects and schemes of such institutions,
' establishments, bodies and corporations, industries, projects and
undertakings owned wholly or partially by the Federation or by a
corporation set up by the Federation. The said entry reads as under: -
"3. Development of industries, where development
under Federal control is declared by Federal law to be
expedient in the public interest; institutions,
establishments, bodies and corporations
administered or managed by the Federal Government
immediately before the Commencing day, including
/
the Pakistan Water and Power Development Authority
and the Pakistan Industrial Development
Corporation; all undertakings, projects and schemes
of such institutions, establishments, bodies and
corporations, industries, projects and undertakings
L1s.421 of 2018, etc.
- 10-
owned wholly or partially by the Federation or by a
corporation set up by the Federation."
10. From the above, it is clear that in terms of Article 154(1) of
the Constitution read with Entry No.3 of Part II of FLL, CCI has
authority to formulate and regulate policies in relation to matters
regarding institutions, establishments, bodies and corporations
administered or managed by the Federal Government, and all
undertakings, projects and schemes of such institutions,
establishments, bodies and corporations, industries, projects and
undertakings owned wholly or partially by the Federation or by a
corporation set up by the Federation. However, under Clause (6) of
Article 154 of the Constitution Majlis-e-shoora (Parliament) in joint
may from time to time by resolution issue directions through
the Federal Government to the CCI, generally or in a particular matter,
to take action as Majlis-e-shoora (Parliament) may deem just and
proper and such directions shall be binding on the Council. Under Ht
Clause (7) thereof, if the Federal Government or a Provincial
Government is dissatisfied with a decision of CCI, it may refer the
matter to Majlis-e-,Shoora (Parliament) in a joint sitting, whose decision
in this behalf shall be final.
ii. It is to be noted that the word 'schemes' is used in Entry
No.3 of Part II of FLL. Thus, it appears that formulation and regulation
of policies in relation to all schemes of institutions, establishments,
bodies and corporations, industries, projects and undertakings owned
wholly or partially by the Federation or by a corporation set up by the
Federation falls in the domain of CCI. In view of the above-referred
Constitutional scheme, it follows that the decision of launching of the
Scheme needed to be discussed in CCI.
-- _
CAs42I 012018, etc.
-11
12.
CCI is a separate body apart from Federal Government.
The Constitution has curtailed the executive authority of Federal
Government in relation to matters in Part II of FLL and handed it over
to CCI. The matter of authority of Federal Government and CCI qua
Part II of FLL has come up before this Court in a number of cases. It
has been held by this Court in Federation of Pakistan throu gh the
Secretary. Ministry of Finance, Government of Pakistan, Islamabad etc.
vs. United Sugar Mills Ltd. Karachi (PLD 1977 Supreme Court 397) as
under: -
"Again in one significant respect the federal executive
authority has been abridged under the Constitution
and has been entrusted to a newly created institution
called "the Council of Common Interests". It is a body
quite apart from the Federal executive. (See Articles
153-156). The administration of matters falling in
/ Part II of the Federal Legislative List (Railways,
mineral oil, natural gas etc.) and item 34 of the
Concurrent List (electricity) are entrusted to the
Council of Common Interests."
The matters referred to in Part II of FLL are required to be placed
before CCI for formulating and regulating policies. It has
authoritatively been held by this Court in Messrs Gadoon Textile Mills
and 814 others vs. WAPDA and others 11997 SCMR 641) as under: -
/ "29 We are inclined to hold that the matters referred
to in Part II of the Federal Legislative List and Item 34
of the Concurrent Legislative List (electricity) are to be
brought before C.C.I. for formulating and regulating
policies.....
13.
The role of CCI was under consideration before this Court
in Wattan Partu through President vs. Federation of Pakistan through
Cabinet Committee of Privatization, Islamabad and others (PLD 2006
CAs.421 of 2018, etc.
- 12-
Supreme Court 697). The matter had arisen out of privatization of
'Pakistan Steel Mills Corporation. The impugned judgment of the High
Court of Sindh had held that "the provisions of Article 154 are
mandatory and the functions of the Cabinet under the Privatization
Ordinance, 2000 ought to be performed by the Council of Common
Interest". A 9-Member Bench of this Court upheld the view of the High
Court of Sindh and also approved the earlier view taken in Gadoon
Textile Mills' case (supra) with reference to functioning of CCI under
(Articles 153 & 154 of the Constitution, which is as follows: -
"35......Therefore the view taken by this Court in
the case of Messrs Gadoon Textile Mills ibid is
respectfully approved with reference to functioning of
C.C.I. under Articles 153 & 154 of the Constitution.
As a consequence whereof the view taken by the
Sindh High Court in the impugned judgment is
upheld."
14. In the case of Pakistan Medical and Dental Council through
, President and 3 others vs. Muhammad Fahad Malik and 10 others
(2018 SCMR 1956) while considering the role of CCI viz, power of
Parliament, this Court held as under: -
"9. ......In order to create inter-provincial
harmony, CCI has been created under Article 153 of
the Constitution which is appointed by the President
and includes, the Prime Minister who shall be the
Chairman of the Council, the Chief Ministers of the
Provinces and three members from the Federal
Government to be nominated by the Prime Minister
from time to time. According to Article 153(4) of the
Constitution, CCI is responsible to Parliament and is
required to submit an Annual Report to both Houses
(of Parliament). Article 154(6) of the Constitution
provides that Parliament may, from time to time, by
resolution, issue directions through the Federal
CAs.421 of 2018. etc.
- Li -
Government to CCI generally or in a particular matter
to take action as Parliament may deem just and
proper and such directions shall be binding on CCI.
Furthermore, as per Article 154(7) of the
/ Constitution, if the Federal or a Provincial
Government is dissatisfied with a decision of CCI, it
may refer the matter to Parliament in a joint sitting
whose decision in this regard shall be final. Thus, the
foregoing provision of the Constitution clearly
indicates that CCI is subservient, and not superior to
Parliament.
10. Parliament on the other hand, under Article 70
of the Constitution, has been given absolute authority
to make laws with respect to the matters enumerated
in the Federal Legislative List. From a plain reading of
the said Article, it is abundantly clear that no
constitutional restriction or constraint has been
imposed upon the power and authority of Parliament
to legislate with respect to the matters enumerated in
the Federal Legislative List. Article 70 ibid is an
independent Article and neither subject to nor
subservient to any other provision of the
Constitution. However, CCI does not have unfettered
power and is responsible to Parliament. As per Article
154(1) of the Constitution, CCI has been given power
to formulate and regulate policies in relation to
matters in Part II of the Federal Legislative List and to
exercise supervision and control over related
institutions. Therefore, it is clear from this provision
that CCI has no role in the legislative process with
respect to the matters enumerated in the Federal
Legislative List, rather it is restricted to formulation
and regulation of policies in relation to the said
matters, and that too contained only in Part II of such
List. Once policies are finalized, CCI cannot interfere
in the legislative process, nor can any legislation be
struck down for the reason that CCI was not involved
in the relevant legislative process. Additionally, CCI
U
CAs.421 of 2018, etc.
P1
can exercise supervision and control over the related
if
institutions but not over Parliament, which according
to the scheme of the Constitution is supreme and all
the other institutions have to function whilst
remaining within their constitutional domain.
15. It is, thus, apparent that CCI holds a significant position
in the Constitutional structure. Its role is not limited to deliberations
only. Rather, it is endowed with important functions of formulating
and regulating polices in relation to the matters detailed in Part II of
FLL of the Constitution, The Constitutional provisions relating to the
functions of CCI are mandatory in nature and, no other person, body
or authority can perform the functions of CCI. However, the
Parliament, in joint sitting, may by resolution issue directions through
,the Federal Government to the CCI, to take action as the Parliament
may deem just and proper and such directions shall be binding on
CCI. If the Federal Government or a Provincial Government is
dissatisfied with a decision of CCI, it may refer the matter
to Parliament, in a joint sitting, whose decision in this behalf shall be
final.
I
16 In view of the above, irrespective of the objective of the
Scheme, we are of the considered view that the matter of transfer of I
12% shares of Government of Pakistan in dozens of SOEs and
Government of Pakistan Shareholdings without any policy input by
1
CCI, definitely fell outside the ambit of the authority of the Federal $
Cabinet. We, therefore, hold that the Federal Cabinet was not
competent to take decision dated 05.08.2009 approving the Scheme
and the same is declared to be in violation of Article 154 of the
Constitution.
CAs.421 of 2018. etc.
-1
U
17. Now we shall consider the second question formulated in
the leave granting order, which reads as under:
(ii)
Whether the benefits given to the employees
under the BESOS were not part of the terms and
conditions of their employment and therefore,
the same could not be enforced under the law
The grievance of the employees relates to their claims emanating
'from unit certificates issued to them as a consequence of transfer of
12% shares of Government of Pakistan in OGDCL and PPL. Leave was
initially granted to consider whether the benefits given to the
employees under the Scheme were not part of the terms and
conditions of their employment and, therefore, the same could not be
enforced under the law. However, our determination on question No.(i),
that the Federal Cabinet was not competent to take a policy decision of
approving the Scheme relating to SOEs and other Government of IJ
Pakistan Shareholdings, decides the fate of the employees of OGDCL
and PPL. As a consequence, question No.(ii) becomes academic
because when the main Scheme has been declared to be ultra vires, ii
any benefit arising out of it would be illegal and not protected.
18,
The next question formulated in the leave granting order
reads as under:
(iii)
What is the effect of the judgment dated
03.01.2018 passed in Constitution Petition
No.183712014 by the learned High Court of Slndh
whereby it declared the said decision of the
Cabinet to be violative of the Constitution.
In this regard it is to be noted that leave was granted vide order
dated 10.01.2018 in Civil Petitions No. 382 to 384 of 2017 preferred by
the Privatization Commission against the judgment of learned
Islamabad High Court passed in ICAs No. 292 to 294 of 2016 when
Bench-I
Islamabad
22. 10.2020
APPROVED FOR REPORTING
abbani/
CAs.421 of 2018, etc.
-16-
judgment dated 03.01.2018 passed in Constitution Petition No. 1837
of 2014 by the learned High Court of Sindh had not been assailed
before this Court. A question was, therefore, framed to consider the
effect of judgment dated 03.01.2018 passed by the learned High Court
of Sindh. Subsequently, the judgment of the learned High Court of
Sindh was also impugned before this Court through Civil Petition No.
521-K of 2018 and leave was granted vide order dated 12.04.2019.
Another Civil Petition No. 852 of 2018 challenging the judgment dated
03.01.2018 of the learned High Court of Sindh was also preferred
before this Court. All these matters were clubbed and heard together.
19.
In view of our discussion above, where the very Scheme
has been found to be against Article 154 of the Constitution, we set
aside the judgment dated 24.11.2016 passed by the learned Islamabad
High Court in ICAs No. 292 to 294 of 2016 and uphold the judgment
'dated 03.01.2018 passed by the learned High Court of Sindh in
Constitution Petition No. 1837 of 2014.
20.
Above are the reasons of our short order dated
22.10.2020, which is as follows: -
"We have heard the learned counsel for the parties at
length and have also gone through the record of the
cases. For reasons to be recorded later, Civil Appeals
No.42 1 to 423 of 2018 are allowed and the impugned
judgment is set aside, while Civil Appeal No. 19-K of
/ 2019 and Civil Petition No.852 of 2018 are dismissed.
All the pending Civil Misc. Applications are disposed
of."
| {
"id": "C.A.421_2018.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
( Appellate Jurisdiction )
PRESENT:
MR. JUSTICE ANWAR ZAHEER JAMALI, CJ
MR. JUSTICE MIAN SAQIB NISAR
MR. JUSTICE AMIR HANI MUSLIM
MR. JUSTICE IQBAL HAMEEDUR RAHMAN
MR. JUSTICE KHILJI ARIF HUSSAIN
CRIMINAL APPEAL NO. 424 OF 2015
(on appeal from the judgment of the High
Court
of
Balochistan,
Quetta
dated
20.08.2015 passed in Crl. Misc. Quashment
No.42 of 2010)
Ali Muhammad & others
…Appellants
VERSUS
Syed Bibi and others
…Respondents
For the Appellant:
Mr. Zulfiqar Ahmed Bhutta, ASC.
For the State:
Mr. Ayaz Khan Swati, Addl. AG, Balochistan.
Date of Hearing:
22.02.2016.
JUDGMENT
Anwar Zaheer Jamali, CJ.— Through this appeal by leave
of the Court, the appellants have invoked jurisdiction of this Court
against the judgment dated 20.08.2015 in Criminal Miscellaneous
Quashment No.42 of 2010, passed by learned Division Bench of the
High Court of Balochistan, Quetta, whereby quashment petition of
Respondent No.1 under Section 561-A of the Code of Criminal
Procedure, 1898 (hereinafter referred to as “Cr.P.C.”) against the order
dated 15.07.2010 passed by Sessions Judge Pishin as Justice of Peace
on an application under Section 22-A Cr.P.C. was accepted;
consequently, order dated 15.07.2010 was set aside with direction to
Respondent No.2 to register the FIR against the appellants for causing
murder of Hafiz Muhammad Jan.
Cr.A 424/2015 -2-
2.
Briefly stated relevant facts of the case are that Respondent
No.1, Syed Bibi wife of Khatak, had moved an application under Section
22-A Cr.P.C. for registration of FIR against the appellants with the
averments that she was a widow, residing in Kuchlak with her son,
Hafiz Muhammad Jan, who was the only earning member of her family.
During an exchange of fire between levies and some unknown persons,
her son was hit by a bullet on his leg, whereupon people gathered on
the spot and began protesting. The levies started aerial firing due to
which the unknown persons fled away from the scene. Thereafter, the
levies took her injured son with them and she found out the next day
that her son had succumbed to the injuries and his dead body was
lying in the Civil Hospital Quetta.
3.
Regarding this incident, an FIR was earlier lodged with
misleading and incorrect statement of facts, therefore, she filed an
application under Section 22-A Cr.P.C. before the Justice of
Peace/Sessions Judge Pishin with the following assertions:-
“2.
That her deceased son Haifz Muhammad Jan
alongwith her nephew namely Abdul Wali have left the
house to go to their relatives living in Killi Nilli, Bostan
after offering Asar prayer at about 06:00 p.m., when on
Kuchlack road there was a cross firing between levies
personnel with some unknown persons, therefore,
number of people were gathered nearby, and his son
and nephew also parked their motorcycle and were
standing with other people, when from the levies side a
bullet came which hit Hafiz Muhammad Jan on his leg,
meanwhile other party has made their escape good and
her nephew Abdul Wali and their other tribes man
gather on the spot, have protested for injuring Hafiz
Muhammad Jan, while the assailants on quite opposite
site of the people, where the deceased was standing,
which turned into scuffle on the spot with levies and
other people, the levies personnel were provoked and
were shouting that their Risaldar has been injured and
assailants
who escaped
were relative of Hafiz
Muhammad Jan, therefore, they will not spare him on
saying so, they have started aerial firing to disburse the
public and took Hafiz Muhammad Jan in injured
condition and thrown him into their pickup on which
Abdul Wali rushed towards them and protested for
Cr.A 424/2015 -3-
cruel and inhuman attitude with an injured person
levies personnel already provoked have started beating
Abdul Wali and also took him and boarded him into
vehicle, while at that time levies personnel namely (1)Ali
Muhammad s/o Habibullah, Aaffadar levies Bostan
(2)Feroz
Jumadar
levies
Bostan,
(3)
Yousaf
(4)
Muhammad Mir (5) Mohd Amin s/o Sagzai Khasadar
levies (6) Mohd Sadiq s/o Dad Khan (7) Anwar (8) Abdul
Hameed s/o Abdul Rasheed, all levies personnel have
been identified on the spot.
3.
That on the fateful night the mother of deceased
went to levies police station, where she had been
informed that her injured son and nephew both have
been sent to Pishin, thus, on said night the widow of an
advanced age had thricely travel between Kuchlak
Bostan and Pishin, and finally she was told by levies
personnels in Civil Hospital Pishin that her son has
been succumbed to his injuries and his dead body is
transmitted to the Quetta Hospital, on next morning the
mother of deceased reached to Civil Hospital at 6:00
a.m. morning and on her quarries the staff in casualty
department told her that some dead body has been
brought but same could not been handed to her without
permission of levis Bostan, the whole day an old lady
was sitting in front of morgue causality, meanwhile her
few relatives have also reached to hospital and started
protesting and demanded the dead body, when police
personnel at the spot have informed the levies line
Queta at about 11:30 a.m. the Naib Tehsildar came, in
initially creating unnecessary hurdles under the garb of
interrogation, but after confirming from his high officials
had agreed to handover the dead body…”
4.
This application was, however, dismissed by the learned
Sessions Judge Pishin vide his order dated 15.07.2010. Respondent
No.1 then filed C.P. 513/2010 under Section 561-A Cr.P.C. before High
Court of Balochistan, which was heard, converted into Criminal Misc.
Quashment No.42 of 2010, and allowed vide impugned judgment dated
20.08.2015; thereby directing the concerned official (Naib Tehsildar
Bostan) to get the FIR of the incident registered, inter alia, for the
following reasons:
“14. Considering
the
facts
and
the
attending
circumstances of the instant case, two distinct and
opposite versions have come on record, wherein manner
of the occurrence, place of occurrence and other details
are not only different, but are also opposite to each
other. Therefore, interest of justice as well as fair
investigation demands that a separate FIR on the basis
Cr.A 424/2015 -4-
of application of the petitioner should be recorded and
investigated upon, so that both the versions may be
placed before the Court who will then be in a position to
determine and adjudicate upon as to which of the
version is wholly or partly correct and which of the
accused persons are guilty and liable to conviction.
15.
In the referred case of ‘Mohammad Azam’ it has
been held that where a different, opposite or a cross
version is put forth by the complainant which discloses
commission of cognizable offence, second FIR is not
barred
In the case of ‘Humayun Khan’ it has been held
that recording of second FIR depends upon the facts of
each case and the matter is to be seen in the context of
totality of the circumstances and allegations”
5.
We have heard arguments of the learned ASC for the
appellants. He contended that indeed there is no specific prohibition
under the provisions of Cr.P.C. which precludes registration of another
FIR with respect to the same incident; nevertheless, depending upon
the facts and circumstances of each case, such practice has been
deprecated particularly when the proceedings in a criminal case arising
out of earlier FIR have reached at an advanced stage; however, this
important legal aspect has not been duly taken into consideration by
the High Court in its impugned judgment. He, however, could not refer
to any case law in support of his argument that registration of another
FIR is unwarranted by any specific provision of law.
6.
The learned Additional Advocate General Balochistan in his
submissions did not oppose findings of the High Court of Balochistan in
the impugned judgment. He referred to before us the judgments in the
cases of Wajid Ali Khan Durani and others v. Government of Sindh and
others (2001 SCMR 1556) and Mst. Anwar Begum v. Station House
Officer, Police Station Kalri West, Karachi and 12 others (PLD 2005 SC
297), which lay down a general principle in this regard as under:
“no definite rule could be laid down barring the
registration of another F.I.R. when a different version of
the same occurrence is given by an aggrieved party.
Cr.A 424/2015 -5-
Moreover, any direction to the police to record another
F.I.R. would depend on the facts and circumstances of
each case, however, refusal to record/register a
genuine version of the same occurrence is unwarranted
in law.”
7.
In another earlier case Kaura v. The State and others (1983
SCMR 436) while dismissing the CPLA, the Court had suggested the
aggrieved party to move the High Court for review of its order regarding
registration of another FIR with the observation that the police was not
only competent but also duty bound to unearth the true facts and trace
the real culprits while conducting investigation of the crime. This
judgment was taken into notice in the case of Mst. Anwar Begum
(supra) but not commented upon, while in the other case of Wajid Ali
Khan Durani (supra) similar contention of the learned counsel was
repelled as being misconceived. It was further held that in the
circumstances discussed, the learned High Court correctly appreciated
the view expressed in several other cases of the superior Courts for
giving direction to register another FIR.
8.
We have considered submissions of the learned ASC for the
appellants on short controversy involved in the matter relating to
registration of another FIR. In the instant case, perusal of contents of
the earlier FIR lodged at the instance of Ali Muhammad Defedar Levies
on 09.06.2010 and the contents of other FIR lodged by Respondent
No.1 on 27.08.2015, in terms of the impugned judgment, reveals two
entirely different and conflicting stories about the actual occurrence. It
is, thus, obvious that in case prosecution leads its evidence on the basis
of contents of earlier FIR and the investigation made on that basis, then
from no stretch of imagination the grievance of Respondent No.1,
attributing criminal liability of whole occurrence to the complainant and
his party (“the appellants” herein), could be considered or adjudicated
Cr.A 424/2015 -6-
upon by the Court. In such circumstances, considering the allegations
of Respondent No.1 about mala fide of the complainant in the earlier
FIR so as to exonerate himself from the liability of Qatl-i-amd of her son,
followed by distorted and collusive investigation, the impugned
judgment of the High Court directing registration of another FIR seems
fully justified and in accordance with law, wherein no specific bar or
prohibition is provided in this regard. The two cases referred to by the
learned Additional Advocate General Balochistan in support of the
impugned judgment also fully support this view.
9.
The whole gambit of controversy in hand revolves around
the import and application of Section 154 of Cr.P.C. hence for ready
reference it will be useful to reproduce the same as under:
“154. Information in cognizable cases.—Every
information relating to the commission of a cognizable
offence if given orally to an officer-in-charge of a police
station, shall be reduced in writing by him or under his
direction and be read over to the informant; and every
such information, whether given in writing or reduced to
writing as aforesaid, shall be signed by the person
given it, and the substance thereof shall be entered in a
book to be kept by such officer in such form as the
Provincial Government may prescribe in this behalf.”
10.
As could be seen from the plain reading of above
reproduced provision of law, the requirement of Section 154 Cr.P.C. is
to enter every information of commission of a cognizable offence,
whether given orally or in writing to the officer-in-charge of the police
station, which shall then be reduced into writing and signed by the
person giving it and the substance thereof shall be entered in a book to
be kept by such officer in the form prescribed by the Provincial
Government in this behalf. Meaning thereby, that it is not a legal
requirement for provider of such information to canvass the whole
scene of occurrence of a cognizable offence giving description and
details of accused, details of weapons used by them, their specific role,
motive behind the occurrence, and the names of eye witnesses etc. But
it is a matter of common experience that usually the entries made in
Section 154 Cr.P.C. book, as per practice, contain invariably all such
details so much so that in the ordinary parlance/sense it is considered
as the gist of the prosecution case against the accused. In such state of
affairs, if a collusive, mala fide or concocted FIR, registered at the
instance of some individual with some ulterior motive, is taken as
sacrosanct, it is likely to divert the whole course of investigation in a
wrong direction and spoil the entire prosecution case on that premise.
The Court while considering the crucial point of registration of another
FIR cannot remain oblivious of these ground realities so as to non-suit
Cr.A 424/2015 -7-
the aggrieved party from agitating his grievance in an honest manner,
or ensure regulating proper investigation of a crime in the right
direction, or apprehend the real culprits and brought them before the
Court of law for justice.
11.
Though our criminal legal system proceeds on the
presumption of honest, God fearing and fair police officers, impartial
and honest investigation system, but this is far from reality in the
society we live in. In such circumstances when the Courts feel that due
to mala fide, dishonest, colourful and motivated acts or omissions,
entire investigation of the crime has been mislead or it is going to be
misled and on that account the case of the prosecution is likely to fail,
then they are not denuded of their powers to order recording of another
FIR disclosing a different version to check such nefarious design meant
to
save
the
real
culprits
vis-a-vis
misleading
the
investigation/prosecution, at any appropriate stage of the proceedings.
However, where need be, such powers are to be exercised with extreme
care and caution and not in a routine manner so as to merely fulfill the
wish of an individual who, as per his whims, is not satisfied either with
the contents of earlier FIR or the direction of investigation based
thereon or wants registration of another FIR with some ulterior motive.
It is more so important in the circumstances when the procedure of
direct complaint under Section 200 Cr.P.C. is also provided to meet
such eventualities. However, it may be clarified here that there may be
circumstances where registration of another FIR will be the only proper
course as adopting the alternate course provided in Section 200 Cr.P.C.
may not be equally efficacious and effective for the aggrieved person.
The case law on the subject, which has been referred to above, lend
support to the view that provisions of Section 154 Cr.P.C. are to be read
in a pragmatic, holistic and realistic manner in order to ensure that its
true spirit and object is achieved and it is not abused at the hands of
Cr.A 424/2015 -8-
individuals or police, who may be adamant to make mockery of this
system. It is for these reasons that no definite principle can be laid
down barring the registration of another FIR.
12.
It is unfortunate to note that in the instant case due to one-
sided version disclosed in earlier FIR No.17/2010, the investigating
agency never bothered to look into the crime from another angle as
narrated in the other FIR dated 27.08.2015, which means that as per
assertions of Respondent No.1, the alleged culprits could have
otherwise escaped from their criminal liability successfully at the very
initial stage without even being charged for the offence on the basis of
misleading contents of earlier FIR. The short and long of the above
discussion is that the impugned judgment of the Balochistan High
Court warrants no interference.
13.
In view of the above, this appeal was dismissed vide short
order of even date, which reads as under:
“We have heard arguments of the learned ASC as
well
as
learned
Additional
Advocate
General
Balochistan. For reasons to follow separately, this
appeal is dismissed.”
Chief Justice
Judge
Judge
Judge
Judge
ISLAMABAD.
22nd February, 2016.
Mudassar/
“Approved for reporting.”
| {
"id": "C.A.424_2015.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE MIAN SAQIB NISAR
MR. JUSTICE SH. AZMAT SAEED
MR. JUSTICE FAISAL ARAB
CIVIL APPEAL NOs. 427 & 428 OF 2009
(On appeal against the judgment dated 27.1.2009 passed by the
High Court of Sindh, Karachi in Special Customs Reference
Applications No.348 and 349 of 2007)
Collector of Customs
(In both cases)
… Appellant
VERSUS
M/s Best Way Cement
(In CA 427/2009)
M/s Maple Leaf Cement Factory
(In CA 428/2009)
…Respondents
For the Appellants:
Raja Muhammad Iqbal, ASC
(In both cases)
For the Respondents:
Mr. Salman Akram Raja, ASC
(In both cases)
Date of Hearing:
27.04.2016
JUDGMENT
FAISAL ARAB, J.- The respondent companies of both
the connected appeals are cement manufacturing enterprises. The
respondent company of Civil Appeal No.427 of 2009 imported sixteen
units of Volvo FM 400 Trucks. Seven of such trucks were imported
vide IGM No.1151/2006, Index No.20 and Goods Declaration
No.196467 dated 24.06.2006 and the remaining nine trucks were
imported vide IGM No.1151/2006, Index No.21 and Goods
Declaration No.196469 dated 24.06.2006. Similarly, the respondent
company of Civil Appeal No.428 of 2009 imported two Volvo FM 400
Trucks vide IGM No.1151/2006, Index No.19 and Goods Declaration
No.196468 dated 24.06.2006. All eighteen trucks were shipped to
CIVIL APPEAL NOs. 427/2009 & 428/2009
2
Karachi port on S.S. ‘Iron Butterfly’. Upon arrival of the ship both the
respondent companies claimed exemption from duty in excess of 5%
in terms of Serial No.21 of SRO 575(I)/2006 dated 5.6.2006 and 0%
sales tax in terms of SRO 530(I)/2005 dated 6.6.2005 by declaring
that the imported trucks fall within the ambit of plant as provided in
SRO 575(I)/2006 dated 5.6.2006. The entire basis for treating the
trucks to be part of the plant of their respective cement factories was
that the imported trucks were Off-Highway trucks imported for their
utilization in the industrial process of their respective cement
factories, hence they be regarded as part and parcel of their cement
manufacturing activity. Upon physical examination of the imported
trucks, the Custom Examination Staff found the imported vehicles to
be Volvo FM 400 trucks which were not Off-Highway dump trucks
but simply On-Highway trucks. After disagreeing with their claim all
eighteen trucks were classified under PCT Heading 8704.2290 which
attracted 30% Ad Volerum customs duty and 15% Sales Tax.
2.
Having been denied the claim of exemption under the
above referred two SROs, the respondent companies challenged the
decisions of the Appraisement Collectorate before the Collector
Appeals, who concurred with the decisions of the Appraisement
Collectorate and dismissed their respective appeals vide orders dated
14.11.2006. The respondent companies then challenged the appellate
orders before the Customs and Sales Tax Appellate Tribunal in
Customs Appeals No. K-01 and K-32/2007 which allowed their
appeals through a common judgment dated 12.04.2007 after
following the decision of Sindh High Court in the case of D.G. Khan
Cement Limited Vs. Deputy Collector of Customs (2003 PTD 986) and
CIVIL APPEAL NOs. 427/2009 & 428/2009
3
directed that excess duties and charges recovered from the
respondent companies be refunded. The Collectorate of Customs
Appraisement was not satisfied with the tribunal’s decisions and
challenged the same in the High Court of Sindh in two separate
appeals bearing Special Customs Appeals No. 348 and 349 of 2007.
The High Court dismissed both the appeals vide impugned judgments
dated 27.01.2009, also relying on the decision that was rendered in
the case of D.G. Khan Cement Limited supra. Dissatisfied with the
common judgments rendered in both the appeals, the appellants filed
petition for leave to appeal in CPLAs No. 289-K/2009 and 290-
K/2009 in this Court. Both the petitions after grant of leave were
converted into present appeals.
3.
In the cement industry, Off-Highway trucks are used at
the quarries where the predominant raw-material in the cement
production ‘limestone’ is won by either extraction or blasting and
then hauled on Off-Highway dump trucks to the place where the
second stage in the cement manufacturing activity i.e. crushing of
the raw-material takes place. In a decision of this Court rendered on
25.05.2016 in Civil Appeal No. 1291 of 2005 in the case of Collector of
Customs Vs. D.G. Khan Cement Company Limited heard by us
alongwith the present appeals, a question arose as to whether the
use of Off-Highway dump trucks in the cement industry makes it
part of the plant that is engaged in the industrial process of
producing cement inspite of the fact that the Off-Highway dump
trucks in their utilization remain mobile as against other machinery
and equipment of the plant which directly or indirectly remains
fastened to the earth. It was on account of the specific design and
CIVIL APPEAL NOs. 427/2009 & 428/2009
4
utility of Off-Highway Dump Trucks in the industrial process of
cement production that we broadened the meaning of the term ‘plant’
mentioned in SRO 484(I)/92 dated 14.05.1992 bringing the Off-
Highway dump trucks within its ambit and thus answered the
question in the affirmative. In deciding so, we did not approve the
judgment of the High Court of Sindh rendered in the case of D.G.
Khan Cement Limited Vs. Deputy Collector of Customs (2003 PTD
986) as it was based on an entirely different reasoning. The judgment
of this Court in the case of Collector of Customs Vs. D.G. Khan Cement
Company Limited rendered by us on 25.05.2016 in Civil Appeal No.
1291/2005 was based on following reasoning:-
8.
The layout plan of a cement factory determines what
equipment, engineering and construction is required to complete the
industrial process that is to be undertaken. Ordinarily, a cement
factory is located where the main raw-material to produce cement such
as limestone is found in abundance. So the industrial process of a
cement factory starts from quarrying of the limestone. Where the
layout of the cement factory is so designed that it starts its industrial
process from extracting its raw materials from quarry then the same
has to be hauled to the facility where the raw-materials are to be first
crushed. The entire set of machines used in conjunction with other
apparatus and electrical and mechanical equipments, required for
undertaking and completing the industrial process, starting right from
quarrying till the finished product that is produced is to be regarded as
part of the plant of the respondent company. Off-Highway dump
trucks, also called Off-Road dump trucks, are specifically designed for
use in difficult terrain where the activity of mining, quarrying and
construction of big buildings is carried out. These Off-Highway dump
trucks, on account of their specific utility, have low payload capacity
as well as low speed in comparison with the ordinary dump trucks
that we see every day on roads and highways. Other than such use,
the Off-Highway dump truck cannot be economically used as an
ordinary means of transportation of goods.
CIVIL APPEAL NOs. 427/2009 & 428/2009
5
9.
In cement industry Off-Highway trucks are used at the
quarries where the predominant raw-material in the cement production
‘limestone’ is won from the quarry by either extraction or blasting
following which it is hauled on Off-Highway dump trucks to the place
where the second stage in the cement manufacturing i.e. crushing of
the raw-material takes place. Thus there is direct nexus between the
use of Off-Highway dump truck at the quarry of a cement
manufacturing factory with its industrial process. This nexus brings
the Off-High way dump truck within the definition of ‘plant’. When the
industrial process of a cement factory starts with the quarrying activity
of a cement factory, we see no reason why Off-Highway dump trucks’
utilization cannot be treated as part of the industrial process of a
cement factory. Thus Off-Highway dump trucks cannot be excluded
from being treated as part of the plant of a cement factory, where their
utility forms an integral function in the manufacturing of the cement.
So irrespective of the fact that Off-Highway dump trucks required to be
operated at the very first stage in the cement manufacturing activity
i.e. quarrying of the raw materials, are mobile vehicles, nevertheless
these trucks are utilized to further the industrial process without which
the industrial process of a cement factory would get interrupted and
hindered at the very initial stage.
10.
It may not be out of place to mention here that extracting
limestone and clay from the quarry can itself be a complete industrial
process undertaken only to sell limestone in the market as its finished
product. The customer of such enterprise could be a cement factory
which is either not designed to start its industrial process from
extracting limestone or for some reason the quarrying facility of a
cement factory may have become dysfunctional and has to purchase
limestone from elsewhere and transport it to its crushing facility. In
such a situation the activity of transportation of raw-materials from the
place of procurement to the place of crushing facility of a cement
factory, would not make such activity part of cement factory’s
industrial process as mere transportation of a product from one facility
to another, where it is utilized as raw material, does not make the act
of transportation part of the industrial process of either of the two
enterprises. However this does not seem to be the case with the
respondent company as in the present case the quarrying of materials
is undertaken by one and the same enterprise which after completion
of the remaining stages involved in the manufacturing of cement
(crushing, blending, heating, cooling, clinkering and milling) ends with
CIVIL APPEAL NOs. 427/2009 & 428/2009
6
the portable cement being produced in bulk or bags for consumption.
The respondent company in the present case seems to be so designed
that its’ Off-Highway dump trucks involved in the industrial process
are to be regarded as part of the ‘plant’ of the cement factory. We are
therefore left with no other option other than to hold that the very use
of Off-Highway dump trucks at the quarries make them part and
parcel of the industrial process of a cement factory and thus such
trucks fall within the definition of the respondent company’s cement
plant.
4.
In the present case, however, all eighteen trucks
imported by the respondent companies are Volvo FM 400 trucks.
Volvo is a world renowned truck manufacturing company. It
manufactures many kinds of trucks, which include both Off-Highway
and On-Highway trucks. Volvo FM 400 trucks that were imported by
the respondent companies being On-Highway trucks are designed for
long distance highway transportation. These trucks can mount
container on its chassis for loading goods. As On-Highway truck is
meant for long hauls, it also has a bunk in its cabin for its use as
driver’s sleeping area. In contrast to such utility, the Off-Highway
dump truck, as decided by us in the case of Collector of Customs Vs.
D.G. Khan Cement Company Limited is specifically designed for use in
difficult terrains where the activities of mining, quarrying or
construction of big buildings are carried out. Purely on account of the
specific design and utility of Off-Highway dump trucks in the
industrial process of cement production that the same were brought
within the ambit of plant. On the other hand, Volvo FM 400 trucks
that were imported by the respondent companies, being On-Highway
trucks and not Off-Highway dump trucks, were rightly treated by the
Appraisement Collectorate of the Customs as not being a part of the
plant of a cement factory.
CIVIL APPEAL NOs. 427/2009 & 428/2009
7
5.
In view of the above discussion, we hold that the
respondent companies were not entitled to claim exemption under
SRO 575(I)/2006 dated 5.6.2006 and SRO 530(I)/2005 dated
6.6.2005 on Volvo FM 400 trucks that were imported by them as the
same were found to be On-Highway trucks and not Off-Highway
dump trucks. The customs authorities shall recover the customs
duties and Sales Tax on all eighteen Volvo FM 400 trucks imported
by both the respondent companies in terms of PCT Heading
8704.2290. These appeals are allowed in the above terms.
JUDGE
JUDGE
JUDGE
Islamabad, the
Announced on ______________ by Hon’ble Mr. Justice Faisal Arab
Approved For Reporting
Khurram
| {
"id": "C.A.427_2009.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
PRESENT:
MR. JUSTICE IFTIKHAR MUHAMMAD CHAUDHRY, C.J
MR. JUSTICE IJAZ AHMED CHAUDHRY
MR. JUSTICE GULZAR AHMED
CIVIL APPEAL NO. 427 OF 2013
Moulana Agha Muhammad
…. Appellant
Versus
Returning Officer, NA 261 Pishin cum Ziarat & others
…. Respondents
For the Appellant
Mr. Kamran Murtaza, ASC
For the Respondents
Nemo
For the Applicant
Mr. Muhammad Ikram Chaudhry, ASC
(in CMA No.3012/13)
Date of hearing
31.5.2013
O R D E R
In this case petitioner’s nomination papers were
rejected for the elections from NA 261 Pishin cum Ziarat vide
order dated 7.4.2013 and against the rejection of nomination
papers appeal filed by him also failed before the Election
Tribunal, Balochistan at Quetta on 17.4.2013. Against both
these orders petitioner preferred a Constitution Petition before
the High Court of Balochistan, Quetta, which was dismissed on
19.4.2013 through a short order followed by detailed reasons
dated 6.5.2013. Against the order of the learned High Court
Civil Petition for Leave to Appeal was filed in which leave to
CA 427/2013
2
appeal was granted on 23.4.2013. Simultaneously the
operation of all the three orders dated 7.4.2013, 17.4.2013 and
19.4.2013 operating against the appellant was suspended.
2.
Learned counsel for the appellant stated that
appellant has been declared successful and a notification has
also been issued. We have pointed out to him that the result of
the election shall be subject to the decision of the appeal
pending before this Court, therefore, in the interest of justice we
restrain the appellant from taking oath of the office of the
Member of National Assembly NA 261 Pishin cum Ziarat.
However, no sooner the appeal is decided the law shall take its
own course. At the request of the learned counsel hearing is
adjourned to 12th June, 2013.
3.
Mr. Muhammad Ikram Chaudhry, learned ASC has
submitted
an
application
(CMA
No.3012/2013)
for
impleadment. Notice of the same be issued to the appellant as
well as to the respondents. In the meanwhile notice to the
learned Attorney General for Pakistan and the Election
Commission be also issued.
Chief Justice
Judge
Judge
Islamabad
31.5.2013
(Zulfiqar)
| {
"id": "C.A.427_2013.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT:
MR. JUSTICE IJAZ UL AHSAN
MR. JUSTICE MUNIB AKHTAR
MR. JUSTICE SAYYED MAZAHAR ALI AKBAR NAQVI
CIVIL APPEAL NO. 441 OF 2021
(Against the judgment dated 22.09.2020
passed by the Peshawar High Court,
Abbottabad Bench in Writ Petition No. 830-
A/2019)
President National Bank of Pakistan and others
…Appellant(s)
Versus
Waqas Ahmed Khan
…Respondent(s)
For the Appellant(s):
Rai Mohammad Nawaz Kharal, ASC
Rafaqat Hussain Shah, AOR
For the Respondent(s):
Nemo
Date of Hearing:
16.01.2023
JUDGMENT
SAYYED MAZAHAR ALI AKBAR NAQVI, J.- Through this appeal by leave of the
Court, the appellants have called in question the vires of the judgment dated
22.09.2020 passed by the learned Peshawar High Court, Abbottabad Bench
whereby the Writ Petition filed by the respondent was allowed and the
appellants were directed to allow the respondent to join his duty in
pursuance of appointment order dated 24.06.2015.
2.
Briefly stated the facts of the matter are that father of the
respondent was Manager in the appellant National Bank of Pakistan and died
while he was in service of the Bank. The respondent filed Writ Petition No.
52-A/2013 before the Peshawar High Court for his appointment in the
National Bank under son-quota. The said Writ Petition was allowed vide
judgment dated 10.12.2013 and the appellants were directed to appoint the
CIVIL APPEAL NO.441 OF 2021
-: 2 :-
respondent on regular basis on any post commensurate to his qualification.
This judgment was also upheld by this Court vide order dated 23.02.2015
passed in Civil Petition No. 235/2014. Thereafter, the appellant Bank issued
appointment letter dated 24.06.2015 and directed the respondent to join the
duty as Cashier within a period of 30 days. However, on coming to know that
the respondent was involved in a criminal case registered vide FIR No.
1172/2013 dated 23.11.2013 under Section 302 PPC at Police Station
Hawalian, District Abbottabad for committing murder of his wife, he was not
allowed to join the duty. Later on, the respondent was acquitted by the
learned Trial Court vide judgment dated 02.05.2019 while exercising the
powers under Section 265-K Cr.P.C. After his acquittal, he filed Writ Petition
No. 830-A/2019 before the Peshawar High Court with a prayer that the
appellants may be directed to take charge from him as per appointment
order dated 24.06.2015. The learned High Court vide impugned order dated
22.09.2020 accepted the Writ Petition filed by the respondent and directed
the appellants to allow the respondent to join his duty in pursuance of the
appointment order dated 24.06.2015. Being aggrieved by the impugned
order, the appellants filed Civil Petition No. 3527/2020 before this Court
wherein leave was granted on 28.04.2021 and the present appeal has arisen
thereafter.
3.
At the very outset, learned counsel for the appellants
contended that at the time when the respondent was offered job in the
appellant Bank, he was involved in a criminal case but he concealed this fact.
Contends that the respondent had not approached the learned High Court
with clean hands and had misstated the facts, therefore, he could not have
been given the relief sought for. Contends that appointment of the
respondent under the son quota is a policy matter, as such, the writ petition
was not maintainable before the High Court especially keeping in view the
criminal background of the respondent. Lastly contends that acquittal under
Section 265-K Cr.P.C. is not an acquittal stricto sensu, as such, the impugned
judgment is based on wrong presumption of law, therefore, the same may be
set at naught.
CIVIL APPEAL NO.441 OF 2021
-: 3 :-
4.
Although notice has been served on the respondent and he is
represented by a counsel yet neither the respondent nor his counsel is in
attendance. In this view of the matter, we are inclined to proceed with the
matter on merits.
5.
We have heard learned counsel for the appellants and have
perused the record with his able assistance.
There is no denial to this fact that doctrine of legitimate
expectation connotes that a person may have a reasonable expectation of
being treated in a certain way by administrative authorities owing to some
uniform practice or an explicit promise made by the concerned authority. The
legitimate expectation ascends in consequence of a promise, assurance,
practice or policy made, adopted or announced by or on behalf of
government of a public authority. When such a legitimate expectation is
obliterated, it affords locus standi to challenge the administrative action
before the court of law. However, it is for the Court to decide as to whether
the expectation is legitimate or not. Said doctrine is applied as a tool to
watch over the action of administrative authorities and in essence imposes
on all authorities to act fair and square in all matters encompassing
legitimate expectation. Reliance is placed on Uzma Manzoor Vs. Vice
Chancellor Khushal Khan Khattak University, Karak (2022 SCMR 694). In the
present case, the respondent in the earlier round of litigation had
approached the learned High Court with a view to appoint him under the son
quota. However, he concealed the factum of his being involved in a criminal
case. No doubt, the Constitutional courts being guardians of the Constitution
have the power to judicially review the administrative/executive actions and
the conduct of the public authorities but the same shall be on the touchstone
of fairness, reasonableness and proportionality. We are not oblivious of the
fact that although the respondent was involved in a criminal case of murder
of his wife and was acquitted subsequently pursuant to proceedings carried
out under Section 265-K Cr.P.C. However, it is settled law that even if the
allegations leveled in the FIR are admitted to be false, even then without
recording of evidence, it cannot be said that there was no probability of
CIVIL APPEAL NO.441 OF 2021
-: 4 :-
conviction of the accused. In order to ascertain the genuineness of the
allegations, the Trial Court ought to have allowed the prosecution to lead
evidence. Even otherwise, this Court in Model Customs Collectorate,
islamabd Vs. Aamir Mumtaz Qureshi (2022 SCMR 1861) and State Vs. Raja
Abdul Rehman (2005 SCMR 1544) has categorically held that in appellate or
revisional proceedings, the same sanctity cannot be accorded to acquittal at
intermediately stage such as under Section 249-A or 265-K Cr.P.C. as
available for those recorded and based on full-fledged trial after recording of
evidence. The respondent was offered the job of cashier in the Bank but
when the Bank came to know that he has a criminal background, the Bank
did not allow him to join the duty. The post of cashier is considered to be
very important in a Bank. It is the cashier who collects and disburses cash. It
is for this reason that every Bank wants their cashier to be of such a person,
that no one can point a finger on his conduct. We are, therefore, of the view
that while not allowing the respondent to join the duty, the Bank was well
within its domain and acted naturally. The learned High Court ought to have
taken into consideration the above fact but it failed to do so.
6.
For what has been discussed above, this appeal is allowed, the
impugned judgment of the learned Peshawar High Court is set aside. The
above are the detailed reasons of our short order of even date.
JUDGE
JUDGE
JUDGE
Islamabad, the
16th of January, 2023
Approved For Reporting
Khurram
| {
"id": "C.A.441_2021.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
Present
Mr. Justice Umar Ata Bandial
Mr. Justice Manzoor Ahmad Malik
CIVIL APPEAL NO. 446 OF 2012
(On appeal from the judgment dated 16.03.2012 passed by
Lahore High Court, Rawalpindi Bench in C.R.324/2003)
Ghulam Abbas & others
…
…
Appellants.
Versus
Mohammad Shafi (decd) thr. LRs & others …
Respondents.
For the appellants
:
Mr. Gulzarin Kiani, Sr. ASC.
Ch. Akhtar Ali, AOR.
For the respondents
:
Mr. Muhammad Amir Butt, ASC.
Syed Rifaqat Hussain Shah, AOR.
Date of hearing
:
20.04.2016.
JUDGMENT
UMAR ATA BANDIAL, J. – The impugned judgment dated
16.03.2012 by the learned Lahore High Court, Rawalpindi Bench
reverses the Appellate judgment by the learned Additional District
Judge dated 17.03.2003 to uphold the judgment of the learned Trial
Court dated 17.05.2001. The appellants/plaintiffs’ suit was
dismissed by the learned Trial Court as being barred under Order
XXIII Rule 1 CPC and Section 3 of the Limitation Act, 1908. As such,
the learned High Court disapproved the learned Appellate Court’s
view to remand the case for allowing the parties to bring evidence
C.A.446 of 2012
2
about the terms of an oral compromise claimed between the
predecessors of the parties which led to the unconditional
withdrawal of an earlier suit filed by the appellants’ predecessor for
the same relief.
2.
The facts constituting the background of the present
case are that one Feroze owned property in village Bhoon, Tehsil
Kalar Kahar, District Chakwal. He had two wives; one named
Mst.Bibi and the other named Mst.Sardaran. Mst.Bibi had two sons,
namely, Muhammad Nawaz and Faqir Muhammad. Mst. Sardaran
had one son, Muhammad Shafi, and four daughters. When Feroze
died before partition, his property was distributed equally amongst
his three afore-named male heirs under customary law. Faqir
Muhammad died issueless in the year 1950 and was succeeded by
two heirs, his real brother Muhammad Nawaz and his mother
Mst.Bibi. However, his mutation of inheritance No.1147 dated
21.03.1951 was recorded in favour of the said two heirs and also his
consanguine brother and four sisters (“impugned mutation”).
3.
On 03.01.1957 both Muhammad Nawaz and his mother
Mst.Bibi filed a suit challenging the said mutation for being illegal.
Notices were issued to the defendants Muhammad Shafi and his
four sisters for 30.01.1957. The notices were not served on the
defendants who are predecessor of the present respondents, for
30.01.1957; none were in attendance. On that date, however,
Muhammad Nawaz got his statement recorded. He stated that a
C.A.446 of 2012
3
compromise had been arrived with the defendants. Therefore he
prayed for withdrawal of his suit without the permission of the
Court for filing a fresh suit. Accordingly, the learned Trial Court
passed an order on 30.01.1957 dismissing the said suit as withdrawn.
Thereafter, the impugned mutation No.1147 dated 21.03.1951 was
neither cancelled nor modified. Muhammad Nawaz did not
challenge that mutation until his death in the year 1987.
4.
The appellants are the heirs of Muhammad Nawaz.
They filed a suit on 12.06.2000 for annulment of the impugned
mutation; however, their plaint did not mention the earlier suit filed
by Muhammad Nawaz. The appellants’ suit claims the same relief of
cancellation of the impugned mutation as prayed in the earlier suit
because: in the presence of the real brother Muhammad Nawaz and
mother Mst. Bibi of Faqir Muhammad deceased his consanguine
siblings, Muhammad Shafi and his four sisters are excluded from
being his heirs. The respondents/defendants filed their written
statement objecting to the maintainability of the said suit under
Order XXIII Rule 1 CPC. The basis of that objection is the Court’s
order dated 30.01.1957 which unconditionally dismisses as
withdrawn the earlier suit for the same relief filed by the appellants’
predecessor, Muhammad Nawaz against the predecessors of the
respondents. In response to the objection, the appellants applied for
amendment of their pleadings which was allowed both by the
learned Trial Court and the learned Appellate Court.
C.A.446 of 2012
4
5.
A new paragraph 6A was accordingly incorporated by
the appellants in their plaint. This paragraph explains that the
predecessors of the respondents had conceded the claim of
Muhammad Nawaz, predecessor of the appellants, and had
renounced any entitlement in the legacy of Faqir Muhammad
deceased. Therefore, they handed over to Muhammad Nawaz
possession of the land taken by them from such legacy. The
possession of the returned land had thereafter remained with the
appellants/plaintiffs. The amended written statement filed by the
respondents denied paragraph 6A of the plaint and claimed that
Muhammad Nawaz predecessor of the appellants had withdrawn
his suit unilaterally after receipt of adequate compensation.
6.
In the background of the foregoing pleas of the parties,
a preliminary issue was framed by the learned Trial Court to the
effect:
“Whether the suit is hit by the provisions of Order XXIII Rule 1 CPC
and the suit is not maintainable?”
The learned Trial Court vide judgment dated 17.05.2001 concluded
that the bar under the said provision of law applied to the suit filed
by the appellant in the year 2000. This suit was also held to be time
barred for having been filed 43 years after the cause of action
admittedly accrued in favour of the appellants’ predecessor. Vide
judgment dated 17.03.2003, the learned Appellate Court remanded
the case to the learned Trial Court by observing that it was proper to
grant an opportunity to the parties for recording their evidence on
C.A.446 of 2012
5
the plea of compromise taken by the appellants. In exercise of
Revisional jurisdiction the learned High Court on 16.03.2012
reversed the appellate judgment and reaffirmed the view taken by
the learned Trial Court in its judgment dated 17.05.2001. Hence, this
appeal.
7.
The learned counsel for the appellants has submitted
that by mentioning compensation the amended written statement by
the respondents impliedly admits the compromise averred by the
plaintiffs in their plaint; that a compromise is also mentioned in the
statement of Muhammad Nawaz, predecessor of the appellants,
recorded by the learned trial Court on 30.01.1957 due to which his
suit was dismissed as withdrawn. The respective stands taken by the
parties showed a dispute between them about the terms of the
compromise. It is contended that the appellants had a right to lead
evidence for proving such terms, which has wrongly been denied by
the impugned judgment. In any event, the learned High Court ought
to have confined itself to whether recording of evidence was
necessary for deciding the preliminary issue about the effect of
Order XXIII Rule 1 CPC. It was wrong for the learned High Court to
decide the said preliminary objection and to dismiss the appellants’
suit. Reliance has been placed on Mir Alam Shah vs. Adam Khan
(2004 CLC 1100), Mohsin Khan vs. Ahmad Ali (PLD 2004 Lahore
1), Subha Jayan vs. Meenakshy Kumaran (AIR 2004 Kerala 39),
C.A.446 of 2012
6
Kaluvaroya vs. Ganesa (AIR 1969 Madras 248) and Muhammad
Shafique vs. Muhammad Rafique (2012 YLR 2801).
8.
The learned counsel appearing for the respondents
submits that the order dated 30.01.1957 passed by the learned Trial
Court shows unconditional withdrawal of the suit filed by the
appellants’ predecessor which tantamounts to abandonment of the
claim by the plaintiff/ predecessor of the appellants. Secondly, he
submits that even if the compromise claimed in paragraph 6A of the
amended plaint is presumed, it is an established fact that such
compromise
was
not
implemented
through
cancellation/
modification of the impugned mutation No.1147 dated 21.03.1951
and the transfer of title of the corresponding land in favour of
Muhammad Nawaz, the predecessor of the appellants. For 30 years
until his death the said Muhammad Nawaz was satisfied with the
impugned mutation remaining in the field. The compromise terms
alleged in paragraph 6A of the amended plaint cannot survive to the
extent that these conflict with the conduct of Muhammad Nawaz.
Accordingly, no right can vest in the appellants to now claim relief
conflicting with the impugned mutation. He also argued that, in any
case, the right available to Muhammad Nawaz was for enforcement
of the compromise terms. A suit for such a claim is time barred.
9.
After hearing the learned counsel for the parties and
having carefully perused the record, if seems useful to first read the
provisions of Order XXIII Rule 1 CPC:
“1.Withdrawal of suit or abandonment of part of claim.- (1) At
any time after the institution of a suit the plaintiff may, as against
C.A.446 of 2012
7
all or any of the defendants, withdraw his suit or abandon part of
his claim.
(2) Where the Court is satisfied—
(a)
that a suit must fail by reason of some formal
defect, or
(b)
that there are other sufficient grounds for allowing
the plaintiff to institute a fresh suit for the subject-
matter of a suit or part of a claim, it may, on such
terms as it thinks fit, grant the plaintiff permission
to withdraw from such suit or abandon such part
of a claim with liberty to institute a fresh suit in
respect of the subject matter of such suit or such
part of a claim.
(3) Where the plaintiff withdraws from a suit, or abandons part of
a claim, without the permission referred to in sub-rule (2), he
shall be liable for such costs as a Court may award and shall be
precluded from instituting any fresh suit in respect of such
subject-matter or such part of the claim.
(4)
Nothing in this rule shall be deemed to authorize the
Court to permit one of several plaintiffs to withdraw without the
consent of the others.”
10.
Keeping the foregoing legal provision in view, there are
some established factual points of the case that may be noted first.
By the order dated 30.01.1957 Muhammad Nawaz withdrew his suit
unconditionally without seeking permission to file a fresh suit. An
oral compromise between Muhammad Nawaz and the defendants
was cited by the former as the basis of the withdrawal of his suit but
neither the terms of the compromise were stated before or recorded
by the learned Trial Court nor was any defendant examined before
the Trial Court to state or admit the terms of any compromise. The
impugned mutation No.1147 dated 21.03.1951 remained in existence
notwithstanding the compromise. Muhammad Nawaz did not file
any proceedings to enforce the terms of his compromise. In other
words, the impugned mutation and the unconditional withdrawal of
C.A.446 of 2012
8
the suit satisfied the oral compromise and Muhammad Nawaz lived
with it till his death in the year 1987.
11.
The amended plaint filed by the appellants claimed that
in the oral compromise Muhammad Shafi and his four sisters
accepted the impropriety of the impugned mutation No.1147 dated
21.03.1951; that they also returned possession of the land inherited
by them from the legacy of Faqir Muhammad deceased to
Muhammad Nawaz. Even if those statements of fact are assumed to
be correct, it may be observed firstly, that merely holding the
possession of land cannot confer its title through prescription. [Ref:
Maqbool Ahmad vs. Hakoomat-e-Pakistan (1991 SCMR 2063)].
Secondly, the inaction and acquiescence of Muhammad Nawaz to
challenge the impugned mutation No.1147 dated 21.03.1951 for 30
years is evidence that it complied with his compromise. Thirdly, in
the year 2000, when the appellants’ suit was filed, neither of the
parties to the oral compromise survived to prove its terms. At best
the appellants could bring hearsay evidence and that too after a
delay of 43 years. In the said circumstances, it is a futile argument by
the learned counsel for the appellants to ask for grant of an
opportunity to the parties to lead evidence about the terms of the
oral compromise. These facts establish that the withdrawal of the
earlier suit by Muhammad Nawaz was unconditional or that the
impugned mutation did not infringe any terms of the compromise
claimed by him with the predecessor of the respondents. In the
C.A.446 of 2012
9
circumstances, the later suit filed by the appellants on the same
cause of action is barred under Order XXIII Rule 1(3) CPC. Reliance
is placed upon Ghulam Rasool vs. Nusrat Rasool (PLD 2008 SC
146), Shahid Mehmood vs. Afzal Mehmood (2011 SCMR 551) and
Muhammad Yar vs. Muhammad Amin (2013 SCMR 464).
12.
Be that as it may, there is another important principle of
law laid down by this Court which is applicable to the facts of the
present case. An heir, who is directly affected by a wrongfully
recorded mutation of inheritance, fails to challenge such mutation
for a considerable length of time until his death, thereby deprives his
heirs of locus standi to dispute such mutation on the ground of his
estoppel, abandonment of claim/cause of action. Reference in this
regard is made to Abdul Haq vs. Surraya Begum (2002 SCMR
1330), Kala Khan vs. Rab Nawaz (2004 SCMR 517) and
Muhammad Rustam vs. Makhan Jan (2013 SCMR 299). The
appellants’ suit is not maintainable under that principle as well.
13.
The argument of the learned counsel for the appellants
that the aforementioned case law on locus standi is distinguishable
on the facts of the present case because Muhammad Nawaz had not
acquiesced to the impugned mutation but had once challenged the
same does not carry weight. The forbearance by Muhammad Nawaz
to dispute the impugned mutation on the basis of his oral compromise
either constitutes the satisfaction of his claim or the abandonment to his
grievance and cause of action. In either case, the result deprives the
C.A.446 of 2012
10
appellants of their locus standi to assert and allege the forgone claim
or entitlement. Finally, the judgments of the learned Trial Court and
the learned Revisional Court were required to and have given their
findings on the preliminary issue framed in the case. The avoidance
by the learned Appellate Court to give its finding on that issue
without giving reasons misdirects the proceedings. A short question
of law is involved for which the requisite material was available on
record for the learned High Court to decide the same in order to nip
the appellants’ still born claim in the bud. Accordingly, we consider
that the impugned Revisional and Trial Court judgments have
arrived at the right conclusion that the suit filed by the appellants is
barred by law.
For the foregoing reasons, we do not find any merit in
this appeal; as such the same is dismissed. No order as to costs.
J.
J.
Islamabad,
20.04.2016.
Irshad Hussain /*
APPROVED FOR REPORTING.
| {
"id": "C.A.446_2012.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT: MR. JUSTICE MIAN SAQIB NISAR
MR. JUSTICE FAISAL ARAB
MR. JUSTICE TARIQ PERVEZ
CIVIL APPEAL NO.448 OF 2014
(Against the judgment dated 5.3.2014 of
the Election Tribunal, Sukkur passed in
E.P.No.342/2013)
Muhammad Ibrahim Jatoi
…Appellant(s)
VERSUS
Aftab Shaban Mirani etc.
…Respondent(s)
For the appellant(s):
Mr. Muhammad Akram Sheikh, Sr. ASC
For respondent No.1:
Sardar Muhammad Latif Khan Khosa, Sr. ASC
Mr. M. S. Khattak, AOR
For other respondents:
Ex-parte
Date of hearing:
04.01.2016
…
ORDER
MIAN SAQIB NISAR, J.- This appeal under Section 67(3) of
the Representation of People Act, 1976 (Act) assails the judgment dated
5.3.2014 passed by the learned Election Tribunal, Sukkur, whereby the
Tribunal had accepted the election petition of the respondent.
2.
The brief facts of the case are:- the appellant and
respondent No.1 (respondent) contested for the National Assembly seat
NA-202 Shikarpur-I in the general elections conducted on 11.5.2013.
The appellant, who was declared a returned candidate by the Election
Commission of Pakistan (ECP) vide notification dated 25.5.2013,
obtained 54,633 votes whereas the respondent (runner up) secured 53,381
votes, with the differential between the two being 1,252 votes. The
respondent challenged the election of the appellant primarily on the
Civil Appeal No.448 of 2014
-: 2 :-
grounds that the appellant secured his election by resorting to corrupt
and illegal practices, and that a large number of bogus votes were got
cast by him. In view of the divergent pleadings of the parties the
following issues were framed:-
“1.
Whether the petition is not maintainable in terms of
S. 54 and 55 of Representation of People Act, 1976?
2.
Whether Respondent No.1 Returned Candidate
committed illegal and corrupt practices in the
election process by way of coercive methods,
manipulating bogus votes, stuffing the ballot boxes
with bogus ballot papers?
3.
Whether the Returning Officer and other election
staff had acted in violation of provisions of the
Representation of Peoples Act, 1976?
4.
Whether the Respondent No.1 stuff the bogus votes
using all foul means and the ballot papers bears
bogus thumb impressions on counter-foils and such
report is called from NADRA authorities by
referring thumb impressions on the counter-foils,
Pictorial Electoral List?
5.
Whether free, fair and transparent election is not
held in the constituency NA-202 Shikarpur-I?
6.
What should the order be?”
The parties led their evidence and after conclusion of the trial the
learned Tribunal declared the result of 21 polling stations (it is not
necessary to give the number of each polling station) declaring the appellant as the
returned candidate as void and ordered re-polling of the said 21 polling
stations. It may be pertinent to mention here that during the course of
proceedings, the respondent moved an application seeking verification
of the counterfoils of the said 21 polling stations and the learned
Civil Appeal No.448 of 2014
-: 3 :-
Tribunal through order dated 20.8.2013 allowed such material to be
examined by NADRA. The NADRA team upon examination submitted a
report to the learned Tribunal (which shall be analyzed later), however it is on
the basis of such report that the election was directed to be re-
conducted in the said 21 polling stations. In this regard it may be
mentioned that as the appellant in his appeal against the impugned
judgment could not get the interim relief and the election to the 21
polling stations were held in the meantime per the learned Tribunal’s
judgment and now on account of the result emerging due to re-election
in these polling stations the respondent has been declared to be the
returned candidate by a margin of 233 votes. It may also be stated here
that the order dated 20.8.2013 through which the verification of the
counterfoils by NADRA was directed, was assailed by the appellant
through a constitution petition before the learned High Court of Sindh
which has been dismissed vide judgment dated 25.3.2015 and no
further challenge was made thereto, thus the order has attained
finality.
3.
As has been stated earlier the learned Tribunal founded its
entire decision on the report of NADRA and thus the true attack made
by the learned counsel for the appellant qua the said report is not only
about its merits but also vis-à-vis the jurisdiction of NADRA to carry out
such verification process under the Act and the National Database and
Registration Authority Ordinance, 2000 (NADRA Ordinance). The learned
counsel further submitted that the learned Tribunal also had no
jurisdiction under the law to seek verification of the material of the 21
polling stations.
4.
Be that as it may, as mentioned above this appeal came up
for hearing earlier and the appellant had asked for interim relief in the
Civil Appeal No.448 of 2014
-: 4 :-
form of suspension of the impugned judgment because thereunder the
re-election to 21 polling stations was directed to be held but this
temporary injunction was refused to the appellant vide order dated
8.4.2014 passed by this Court (we shall analyze the order and the effect thereof in
the course of this decision). Learned counsel for the appellant has argued that
the election petition filed by the respondent was not verified in
accordance with law and it was not supported by a full affidavit as is
mandated by the Sindh Chief Court Rules and therefore, such petition
was liable to be dismissed summarily as per Section 55 of the Act. It is
also submitted that the learned Tribunal has not taken into
consideration the oral evidence led by the respondent (election petitioner),
thus there was no positive evidence for the purposes of declaring the
election as null and void, rather the learned Tribunal has simply relied
upon the report of NADRA which according to the learned counsel for
the appellant is an invalid report for the following reasons:-
a)
The absence of the authority of NADRA to either get
involved in the process of verification or to provide any
expert opinion under the Act;
b)
There is no mandate under the NADRA Ordinance enabling
NADRA to carry out such kind of a function of verification
or opining about the validity or otherwise of the counterfoils
or to resolve election disputes;
c)
That NADRA did not have the capacity to render a reliable
piece of admissible evidence which is above suspicion and
beyond reproach on account of which it can be held that
such is an expert evidence so as to be made the basis for
annulling the election or resolving a dispute therein;
Civil Appeal No.448 of 2014
-: 5 :-
d)
That the obtaining of ridges and fingerprints on a piece of
paper is totally different from the global model of obtaining
fingerprints through a modern device such as live scan
fingerprinting.
Learned counsel also referred to the parliamentary proceedings and
submitted that the mere fact of non-verification of 60-65% of votes
would not result in the automatic conclusion that the said percentage of
votes is bogus.
5.
While dealing with the fundamental rights of citizens under
Article 17 which includes the right to seek election to Parliament and
Provincial Assembly, every effort has to be made to safeguard and
guarantee such rights and suspicious material should not be allowed to
be made the basis for disenfranchising an elected representative of the
people except on very strong and positive evidence. In this respect
learned counsel for the appellant submitted that the material on the
record in the shape of the NADRA report is not a replacement or
substitute for the positive evidence needed in this regard.
6.
It has also been submitted that according to the result
which has emerged after the by-elections, the position of the 21 polling
stations remained the same, in that, the appellant had obtained almost
the same number of votes which he acquired in the general elections,
whereas the respondent has an improved position but only for the
reason that 8000 votes, earlier cast in favour of a candidate of a
different party who did not contest the by-elections, came to his kitty.
On various propositions learned counsel for the appellant had relied
upon the judgments reported as Lala Shakeel-ur-Rehman Vs. Dr.
Muhammad Ashraf Chohan (2009 CLC 1302); Abdul Rahim Khoso
Civil Appeal No.448 of 2014
-: 6 :-
Vs. Mir Hazar Khan Bijrani (2004 CLC 77); Engineer Jameel Ahmad
Malik Vs. Ghulam Sarwar Khan and 6 others (2004 CLC 914);
Engineer Jameel Ahmad Malik Vs. Shaukat Aziz and 6 others (2007
CLC 1192); Bashir Ahmad Vs. Abdul Wahid (PLD 1995 Lah 98);
Muhammad Anwar and others Vs. Mst. Ilyas Begum and others
(PLD 2013 SC 255); In the matter of: Human Rights Cases Nos.4668
of 2006, 1111 of 2007 and 15283-G of 2010 (PLD 2010 SC 759);
Suo Motu Case No.13 of 2009 (PLD 2011 SC 619); A. C. Jose Vs.
Sivan Pillai and others (AIR 1984 SC 921); Tanvir Ashraf Vs. Ch.
Riasat Ali and 5 others (2004 YLR 659); Mian Ejaz Shafi Vs. Syed
Ali Ashraf Shah and 11 others (PLD 1995 SC 43); Ali Hasan @
Jamshaid Vs. The State (2012 SCMR 242); Muhammad Ayub Vs.
Iftikhar Ahmad Qureshi, Returning Officer, for Senate Elections
2006 FATA and 9 others (2007 CLC 1673); M. Budda Prasad Vs.
Simhadri Satyanarayana Rao and others (1994 SCMR 446); Hari
Ram Vs. Hira Singh and others (AIR 1984 SC 396); Chaitanya
Kumar Adatiya Vs. Smt. Sushila Dixit and others (AIR 1975 SC
1718); Ram Sewak Yadav Vs. Hussain Kamil Kidwai and others (AIR
1964 SC 1249); Dr. Akhtar Hussain Khan and others Vs. Federation
of Pakistan and others (2012 SCMR 455); The Federation of
Pakistan
through
the
Secretary,
Establishment
Division,
Government of Pakistan Rawalpindi Vs. Saeed Ahmad Khan and
others, and The Secretary, Department of Education, Government
of Punjab Vs. M. R. Toosy, Ex-Principal, Government College,
Sargodha and others (PLD 1974 SC 151); Hukmat Khan Vs. Sardar
Asghar Ali and another (PLD 1958 (W.P.) Lah 962); Asif Nawaz
Fatiana Vs. Walayat Shah and others (2007 CLC 610); Sardar Abdul
Hafeez Khan Vs. Sardar Muhammad Tahir Khan Loni (1999 SCMR
Civil Appeal No.448 of 2014
-: 7 :-
284); Ch. Muhammad Abdullah Vs. Ch. Abdul Wakil and others (PLD
1986 SC 487); Samant N. Balakrishna, etc. Vs. George Fernandez
and others etc. (AIR 1969 SC 1201); Maulvi Abdul Ghani and
another Vs. Election Tribunal, Balochistan and others (1999 SCMR
1); Mian Shah Jehan Vs. Abdus Subhan Khan and others (1988 CLC
750); Capt. Syed Muhammad Ali Vs. Salim Zia (1999 CLC 1026);
Capt. Syed Muhammad Ali Vs. The Returning Officer, P.S. 89,
District Courts, Karachi and 11 others (1999 CLC 2039); Col.
(Retd.) Syed Mukhtar Hussain Shah Vs. Wasim Sajjad and 30 others
(PLD 1986 SC 178); Khan Muhammad Yusuf Khan Khattak Vs. S. M.
Ayub and 2 others (PLD 1973 SC 160); Syed Saeed Hassan Vs. Pyar
Ali and 7 others (PLD 1976 SC 6); Muhammad Saeed and 4 others
Vs. (1) Election Petitions Tribunal, West Pakistan, (2) Mehr
Muhammad Arif Khan, (3) Ghulam Haider and (4) West Pakistan
Government and others (PLD 1957 SC (Pak.) 91); Syed Abdul Latif
Shah Vs. Ali Muhammad Khan and others (2004 MLD 36); Peter
John Sahotra Vs. Returning Officer and others (1995 CLC 394);
Abdul Raja Razzak Vs. Abdul Hakeem Baloch and 27 others (2014
CLC 574); Bahader Khan Vs. The State and another (2012 PCrLJ
24).
7.
On the contrary, learned counsel for the respondent has
made reference to an order passed by this Court on 8.4.2014 and has
argued that all the points which have been raised by the appellant’s
learned counsel have already been attended to and answered against
him in the said order. It is also argued that the appellant had himself
applied for the verification of votes at 16 polling stations by stating in
clear and unequivocal terms that verification from NADRA should be
obtained which is very reliable and this was consented to very candidly
Civil Appeal No.448 of 2014
-: 8 :-
by the respondent, however subsequently the appellant backed out and
retreated from this offer, therefore it does not lie with the appellant to
raise any objection to the competence and authority of NADRA for
verification of the election material. It is also submitted that earlier the
interim order through which the verification by NADRA was directed
was challenged by the appellant though a constitution petition before
the learned High Court which was decided against him and this order
had not been challenged further resultantly the appellant is now
precluded from challenging that said order by saying that it is against
the authority of NADRA (note:- it has been submitted that after the elections at 21
polling stations, the appellant only assailed before the Election Tribunal (perhaps) some
illegalities qua 7 polling stations which were found to be very minor but no further challenge
was put forth as the appellant did not file any election petition to challenge the outcome of the
election after re-polling at these 21 polling stations).
8.
Heard. As far as the verification of the petition is concerned,
suffice it to say that from the written statement filed by the appellant,
there is no serious objection about the verification of the election
petition, rather the objection raised was about the annexures to the
petition and this also is not one of the grounds set out by the appellant
in the present memo of appeal. As regards the argument now raised
that the election petition is not supported by a full affidavit as per the
requirement of the provisions of the Sindh Chief Court Rules, suffice it
to say that when one looks at Section 55 of the Act, the only
requirement of law is regarding verification as per the provisions of
Order VI Rule 15 of the Code of Civil Procedure, 1908 (CPC) and not vis-
à-vis any affidavit required to be given in support of the election
petition. Therefore, the argument about a full length affidavit has no
substance. As far as the verification of the election petition otherwise is
Civil Appeal No.448 of 2014
-: 9 :-
concerned, we have examined the document and find that a short
affidavit to that effect in support thereof has been given which duly
fulfills the requirements of Order VI Rule 15, CPC as has been held in
the judgments reported as Sardarzada Zafar Abbas and others Vs.
Syed Hassan, Murtaza and others (PLD 2005 SC 600) and Lt. Col.
(R) Ghazanfar Abbas Shah Vs. Mehr Khalid Mehmood Sargana etc.
(2015 SCMR 1585). As regards the other plea that there is no positive
evidence led by the respondent to prove corrupt and illegal practices or
other illegalities in the conduct of the election and whatever evidence
was led by the respondent was not believed by the learned Tribunal,
suffice it to say that regardless of the evidence led by the respondent,
the Tribunal for appropriate reasons had sought verification of the
election material from NADRA and this order when challenged by the
appellant in a constitution petition has been upheld by the learned
Sindh High Court and no further challenge was made before this Court.
Therefore for all intents and purposes the order has attained finality
and it cannot be called into question in an indirect manner as has been
now done by the learned counsel. Besides, it may be pointed out that
the appellant himself through an application dated 24.8.2013 had
sought the verification of the election material for 16 polling stations
(maybe for polling stations other than the said 21) and categorically stated that
“verification of thumb impressions and CNIC Nos. from NADRA, would bring the
credibility the result of election”. Obviously in the above situation the
appellant is estopped by his own conduct from saying now that the
election material could not be referred to NADRA for examination and
verification.
9.
As far as the plea that NADRA does not have the requisite
mandate under the provisions of the Act or the rules framed
Civil Appeal No.448 of 2014
-: 10 :-
thereunder, suffice it to say that this in no way takes away the
jurisdiction of the learned Tribunal where the laws of the CPC and
evidence are duly applicable to seek the assistance and expert opinion
from any organization (see Section 64 of the Act). It is an exercise of
appropriate authority by the learned Tribunal that verification was
sought for. As regards the argument that there is no mandate with
NADRA allowing for such verification, it may be mentioned that NADRA
is meant for the purpose of registration of citizens of the country and
maintaining a database for multiple uses in efficiently and effectively
running the affairs of the State and the general public in order to
achieve the goals of good governance, public service and minimizing
scope for corruption and inefficiency (as per the preamble to the NADRA
Ordinance). Furthermore, Section 7(1)(i) of the NADRA Ordinance allows
for NADRA to provide the requisite access into the National Data
Warehouse (i.e. the central data warehouse based on the data and information from the
Citizens Database) to all Government, semi-Government and private
institutions in such manner and for such fee as may be prescribed by
regulations. The above section can be read with Section 5(4)(h) which
allows NADRA to charge a prescribed fee for its services or for provision
of any information or report to any Governmental, private entity etc.
from its databases, and such services/information to our mind can
always be received and resorted to by the Courts and the Tribunals of
law and the skill and expertise of NADRA can be taken as an expert
opinion in terms of Article 59 of the Qanun-e-Shahadat Order, 1984.
Therefore, being the only body vested with the authority by statute to
issue NICs, the numbers of which are used as the primary method for
identification of voters for the purposes of issuance of ballot papers and
to cast their vote at an election, obviously where a question of any
Civil Appeal No.448 of 2014
-: 11 :-
voter’s identity is involved the process of verification and authentication
should be carried out by NADRA. The process adopted by NADRA (which
is enunciated by the NADRA report not only in this case, but by similar NADRA reports in
numerous cases before this Court) is as follows:- the election material (including the
statements of count, used counterfoils and photo electoral rolls) is received from the
Election Tribunal which is subsequently scanned and loaded onto a
database to preserve such material in electronic form. Such scanning
operation is performed using auto-feed high speed scanners at an image
quality of 400 dpi. Then the digitization operation takes place whereby
the NIC numbers and fingerprints are electronically extracted from the
scanned images. Before moving on to the actual verification of thumb
impression process, NADRA first sifts the used counterfoils as follows:-
(i) invalid CNIC on counterfoils, meaning thereby that such used
counterfoils had NIC numbers which were never issued by NADRA, and
also includes those counterfoils which contained no NIC number
whatsoever; (ii) ‘out of constituency’ votes (but only if NADRA has the
constituency mapping of the seat in question with their respective voter entries); (iii)
duplicate voters on counterfoils, i.e. one CNIC appeared on more than
one used counterfoil; and (iv) used counterfoils without fingerprints.
After excluding the aforementioned categories of counterfoils, the
remaining counterfoils’ fingerprints are run through the authentication
process which is done by an Automated Fingerprint Identification
System (AFIS), whereby fingerprints on used counterfoils are matched
against the NADRA database of fingerprints. This process entails three
results:- (i) fingerprints successfully authenticated, i.e. the fingerprint
affixed on a used counterfoil (which contains a valid NIC) matches the
fingerprint of the registered voter/citizen held with NADRA in its citizen
database; and (ii) fingerprints failing authentication, i.e. the fingerprint
Civil Appeal No.448 of 2014
-: 12 :-
affixed on the used counterfoil (which contains a valid NIC) did not match the
fingerprint of the registered voter/citizen held with NADRA in its citizen
database; (iii) cases where there are some residue used counterfoils, i.e.
where the fingerprints on used counterfoils (which contains a valid NIC) were
of poor quality (for e.g. the ink was smudged, etc.) and thus could not be
processed through the AFIS.
10.
Besides from the statement of CW-1, a representative of
NADRA, it is very much clear that NADRA has the requisite expertise in
this behalf. Moreover, NADRA has prepared Standard Operating
Procedures (SOPs) to which reference has been made in paragraph 6 of
the report upon which the process identified in the report was observed.
Obviously befalling such procedure the verification has been made and
from the cross-examination of CW-1 conducted by the appellant we are
of the considered view that a dent has hardly been made either qua the
authority, expertise, skill or even the verification on merits of the report
submitted by NADRA. It may also be added here that according to the
NADRA report, the following illegalities have been found in the votes:-
S.
NO
Description
Count of
Votes
1
Votes polled in polling stations whose
election material was received by
NADRA
16,469
2
Invalid NIC number mentioned on used
counterfoils, this also includes such
counterfoils that do not have CNIC
mentioned over it.
2,283
3
Duplicate voters on used counterfoils
1,098
4
Used counterfoils without fingerprints
35
5
Fingerprints successfully authenticated
on used counterfoils and ER
2,320
6
Fingerprints on used counterfoils and
ER failing authentication
1,133
7
Fingerprints of bad quality affixed on
used counterfoils
9,600
Civil Appeal No.448 of 2014
-: 13 :-
From the above, it is sure that excluding 4,549 votes (combined count of votes
at serial numbers 2, 3, 4, and 6) which is greater in number than the difference
between the total number of votes obtained by the appellant and the
respondent, i.e. 1,252 votes, would render the election result as being
materially affected, and this is the reason which prevailed with the
learned Tribunal for holding of fresh elections at 21 polling stations. We
are not impressed with the argument of the learned counsel for the
appellant that NADRA does not have any expertise in the matter or does
not have the capacity or the mandate or the Election Tribunal had no
authority to refer the election material to NADRA for the purposes of the
dispute.
11.
In view of the foregoing, we find that the learned Tribunal
was justified and correct in declaring the result of 21 polling stations
declaring the appellant as a returned candidate as void and ordering for
re-election in the said 21 polling stations.
12.
The above are the detailed reasons for the short order of
even date whereby the appellant’s civil appeal was dismissed, which
reads as:-
“For the reasons to be recorded later, this appeal has no
merit and is hereby dismissed.”
JUDGE
JUDGE
JUDGE
Islamabad, the
4th January, 2016
Approved For Reporting
Waqas Naseer/*
| {
"id": "C.A.448_2014.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
PRESENT:
MR. JUSTICE MUSHIR ALAM
MR. JUSTICE QAZI FAIZ ISA
MR. JUSTICE SAJJAD ALI SHAH
CIVIL APPEAL NO. 45—L OF 2018
(Against the Judgement dated 10.04.2018
passed by the Lahore High Court in Insurance
Appeal No. 18/2017
Rana Basit Rice Mills Private Limited…..…………………Appellant
VERSUS
Shaheen Insurance Company
and another ………………………………………..…………………….Respondents
For the Petitioner(s):
Mr. Liaqat Ali Butt, ASC
For the Respondent(s)
Date of Hearing:
Ch. Amjad Pervaiz, ASC
12.12.2019
JUDGEMENT
MUSHIR ALAM, J.— The Appellant a limited liability company has
assailed the judgment of Lahore High Court dated 10.04.2018.
2.
Facts in brief are that the appellant Rana Basit Rice Mills
Private Limited, through its Chief Executive, obtained from the
Respondent Insurance Company a fire general policy to the tune of Rs.
150,002,000/- covering its stock of rice, paddy Machinery and building
etc. as provided for in the Insurance Policy and detailed in paragraph 2
of the Insurance Petition against comprehensive insurable risk for a
period 09.09.2011 to 09.08.2012 against the premium of Rs. 370,000/-
3.
On fateful night between 13.06.12 and 14.06.12, a gust
thunder storm caused losses to the appellants insurable interest covered
under the insurance policy. Loss and damaged to the insurable interests
were fully covered by the Insurance Policy. Appellant as required under
the law and policy lodged the claim to the tune of Rupees 9,851,760/=.
4.
The Respondent-Insurer to assess and evaluate the loss,
appointed a surveyor who, after all requisite formalities, assessed and
verified the loss to the tune of Rs. 49,57,083/-. The assessed claim was
not paid within 90 days as mandated under section 118 of the Insurance
CA 45-l/18 -2-
Ordinance, 2000. Consequently, the Appellant invoked the jurisdiction of
the Insurance Tribunal Punjab, Lahore on 06.12.12 and claimed loss of
Rs. 98,51,760/- from the Responder-Insurer.
5.
Insurance claim was contested by the Respondent-Insurer. A
preliminary objection as to maintainability of Insurance Petition was
raised on the ground inter alia that the petition was not filed by the
authorized person as no resolution of the Board of Director was available
on record. Respondent filed an application under Order VII Rule 11 CPC1
seeking rejection of Insurance Petition.
6.
The Appellant, to meet the challenge posed by the
Respondent, filed an application under Order VI Rule 17 read with Order
VII Rule 18 and section 151 C.P.C, seeking amendment of the Petition
to incorporate such fact and permission to place on record copy of Board
Resolution authorizing the deponent of the Insurance Petition to file and
contest the Insurance Petition for and on behalf of the Appellant.
7.
Learned Insurance Tribunal adjudged both the applications
collectively. Application filed by the Respondent Insurance company for
the Rejection of the Insurance Petition did not found favour and the
application for the amendment of Insurance petition and to place the
Board Resolution on record, was allowed subject to cost, vide order
dated 10.02.2014 in the following terms:
“The perusal of the record reveals that the applicant is
one of the owners of the firm which is a private one. He
has brought on the record the resolution whereby the
other partners have authorized him to pursue and file
the case. Thus, it is an admitted fact that the case has
been filed by one of the owners of the applicant firm
and the error in question, is an irregularity. The
applicant is an entity, it can sue and can be sued,
therefore, the amendment sought for would neither
change the complexion of the suit nor shall prejudice
any party. The application for the insurance claim
cannot be out-rightly dismissed on this ground since
the applicant has filed this application to make the
necessary rectification in this regard through the
amendment sought for, in this application, therefore, in
the interest of justice, this application for the
amendment is accordingly accepted subject to payment
of cost of Rs. 4000/. This order be annexed with the
main file.
1 Page 59 of the Paper Book
CA 45-l/18 -3-
8.
No exception to the order passed by Insurance Tribunal as
reproduced above, was taken by the Respondent Insurance company.
The Petition progressed on its merits and the issues were framed on
11.09.14. Rana Abdul Basit, the Chief Executive of the Appellant
Company appeared as AW-1, he produced the Board Resolution Ex-
A1, beside claim documents, surveyor report assessing loss as exhibits
No. Ex A-2 to Ex A-4. Examined Rana Muhammad Saleem as AW-2 and
Malik Muhammad Saleem as AW-3.
9.
Respondent Insurer only examined Ahsan ul Haq, Assistant General
Manager Claims as RW-1. Repeated opportunities were availed to
produce further evidence, ultimately side was closed on 26.6.2016 but,
no other witness in rebuttal was examined. Instead of making final
arguments after availing more than five opportunities for final
arguments, the Respondents then filed another application under Order
XIV, Rule 5 CPC seeking to frame additional issue as to maintainability
of Insurance Petition. The learned Tribunal dismissed the application
vide order dated 2.11.2016 and fixed the case for final arguments.
10.
Learned Insurance Tribunal, on examination of evidence produced
allowed the petition filed by the current Applicant vide order dated
22.11.2016 and as against the claim of Rupees 9,851,760/= granted
the insurance claim only to the extent of Rs. 49,57,083/- as assessed
by the Insurance surveyor along with liquidated damages under s.118
of the Insurance Ordinance. The liquidated damages were to be paid for
the during the period for which the failure to make payment continues,
from the date of occurrence till the realization of the claim, and was to
be calculated at monthly rests at the rate of 5% higher than the
prevailing base rate. The Respondents were directed to bear the cost of
the case and to make the payment of the insurance claim and
liquidated damages within a period of 30 days.
11.
Respondent-Insurer filed an appeal before the Lahore High Court,
Lahore under S.124(2) of the Insurance Ordinance, 2000 essentially
on the grounds inter-alia that the current Appellant could not have
filed the insurance petition since a board resolution authorizing the
attorney was admittedly not present on the date of filing of the
CA 45-l/18 -4-
Insurance Petition. Learned Bench of the High Court swayed by the
fact that no board resolution was filed when the Insurance Petition
was filed by Rana Basit, the Chief Executive of the appellant Rice
Mills, accepted the appeal vide order dated 10.04.18. Therefore, the
current Appellants are before us under Article 185(2)(d) of the
Constitution of Pakistan, 1973.
12.
Arguments heard. Record perused with the assistance of learned
counsels.
13.
The pivotal issue before us that requires careful consideration is
legal repercussions of where no Board Resolution is presented
authorizing the deponent Rana Abdul Basit, the Chief Executive of the
Appellant Company to file and contest the Insurance Petition. First
case from our jurisdiction that considered identical issue, as is
Muhammad
Siddiq
Muhammad
Umar
and
another
v.
Australasia Bank Ltd.2 The issue before this Court was ‘whether the
principal special officer/general attorney of the bank was competent to
file the suit on behalf of the Plaintiff bank?’. This Court after taking
stock of the facts on record held that:
“It was apparent from the pleadings that the suit
was being instituted by a constituted attorney of
a public limited company. He could only do so if
he was duly authorized in that behalf and
occupied one or other of the offices mentioned in
Rule 1 of Order XXIX of the Civil Procedure Code.
A copy of the power of attorney had been
produced which showed that Muhammad Khan
had been empowered in that behalf but the
question still remained to be ascertained as to
whether those who gave him that power were
competent to do so, as the authority was on
behalf of a public limited company. For this
purpose, a reference to the Articles of Association
of the company was certainly necessary, see
whether
the
Directors
were
competent
to
delegate such power. It was not necessary to see
whether the Directors had in fact approved of the
giving of such power-of-attorney to the person
who presented the plaint. This was, however,
proved by the production of the resolution of the
Board of Directors as a matter of abundant
caution. The additional evidence was to that
extent,
therefore,
in
our
opinion,
rightly
2 PLD 1966 SC 685
CA 45-l/18 -5-
admitted. This was all that was required. It was
not necessary to call the Managing Director as
the Court calling for the additional evidence itself
realized subsequently. Even the production of the
resolution could have been dispensed with, as it
was not strictly necessary”
“Two points, of fundamental importance, require
attention. Firstly, the Supreme Court held that an
examination of the Articles of Association was
necessary in order to ascertain whether the
directors were empowered to delegate the power
of instituting legal proceedings to someone else.
Secondly, and perhaps even more importantly,
the Supreme Court observed that it was not
necessary to see whether, in fact, the board had
actually done so. The production of the resolution
passed in this regard was considered to have
been only ‘a matter of abundant caution’, and it
was expressly noted that it could have been
dispensed with ‘as it was not strictly necessary’.”3
(underlined
for
emphasis)
14. The issue of a power of attorney not validly constituted due to the
lack of board resolution was also considered by this Court in Central
Bank of India Ltd. v. Taj ud Din Abdur Rauf4 wherein it was ruled
that there is no specific requirement of law to prove a resolution
passed by the Board of Directors.
15. The rationale provided in Central Bank of India5 and Australasia
Bank Ltd6. was aptly summarized in the Sindh High Court decision
of Pak Turk v. Turkish Airlines Inc.7, which received the nod of
approval by this Court in the case of Rahat and Company,
through Syed Naveed Hussain Shah v. Trading Corporation of
Pakistan Statutory Corporation,8 as:
“Where articles of the Company confer power on a
particular person or director to institute legal action
and that person or director institutes the suit there can
be no additional requirement of a resolution of the
Board of directors for the simple reason that such
3 Ibid at 695
4 1992 SCMR 846
5 1992 SCMR 846
6 PLD1966 SC 685
7 2015 CLC 1
8 2020 CLD 872= PLD 2020 SC 366
CA 45-l/18 -6-
power is to be exercisable by a real person. However,
where the power to institute the suit is conferred upon
an artificial person or body e.g. the Board of Directors
or a Committee ... the requirement to produce and
prove the resolution passed by that artificial person or
body cannot be dispensed with since such a person can
only take a decision as a body through a resolution
passed in a duly convened meeting and not otherwise.
The above principles would also become applicable in
the case of delegation or sub-delegation of powers i.e.
in case the delegator is a real person (when articles
confer the powers to institute legal action on a real
person) all that would be required would be to
scrutinize the articles and then the power of attorney to
see whether it has been properly executed and confers
the power so claimed. There would be no requirement
to produce or prove the resolution from the Board of
Directors in this regard.”
16. Furthermore, such defect is not fatal to the institution to the suit by
the attorney as it can be cured with ease under the principle provided
by the English Court of Appeal decision in Presentaciones
Musicales SA v. Secunda and another9, and accepted by this
Court in Rahat and Company10 which stated that as:
“It is well recognized law that where a solicitor starts
proceedings in the name of a plaintiff - be it a company
or an individual - without authority, the plaintiff may
ratify the act of the solicitor and adopt the proceedings.
In that event, in accordance with the ordinary law of
principal and agent and the ordinary doctrine of
ratification the defect in the proceedings as originally
constituted is cured: see Danish Mercantile co Ltd. v
Beaumont,11 since approved by the House of Lords.
The reason is that by English law ratification relates
back to the unauthorised act of the agent which is
ratified: if the proceedings are English proceedings, the
ratification which cures the original defect, which was a
defect under English law, must be a ratification which is
valid under English law."
17. Another recent decision by this court in a Al-Noor Sugar Mills Ltd.
v. Federation of Pakistan and others12 has also upheld this rule
where the Respondent raised the objection that a board resolution
9 [1994] 2 All ER 737
10 PLD 2020 SC 366
11 [1951] 1All ER 925, [1951] Ch 680
12 2018 SCMR 1792
CA 45-l/18 -7-
was not as filed when the appeal was filed but presented at a
subsequent date. This Court dismissed the objection by reproducing
the decisions stated above.
18. In light of the aforementioned debate, the lack of a board resolution
authorizing the attorney does not invalidate the institution of the suit
so long as the Articles of Association confer upon the person/persons
to institute the suit in the company’s behalf. Even otherwise such a
defect can always be cured by placing on record a Board Resolution
issued even at a subsequent date, which would put the matter to
rest. Respondent did not challenge the finding of the Insurance
Tribunal before the High Court on merit of the Insurance claim as
determined by the learned Tribunal, nor before us. Respondent-
insurer throughout laid emphasis on maintainability of the Insurance
Petition filed without Board Resolution, which as noted above, was
allowed to be placed on record. Respondent was not able to show any
prejudice was caused to the Respondent. The claim allowed by the
Insurance Tribunal was based on the loss determined by the surveyor
of the Respondents. Under the given facts and circumstances of the
case, the appeal is allowed. Impugned judgement dated 11.04.2018
passed by the Lahore High Court is set aside and that of the learned
Insurance Tribunal dated 22.11.2016 is restored.
Judge
Judge
Judge
ANNOUNCED IN Chambers
At ISLAMABAD on_24.06.2021_______ Judge
“Approved for reporting”
| {
"id": "C.A.45-L_2018.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(APPELLATE JURISDICTION)
PRESENT: MR. JUSTICE MIAN SAQIB NISAR
MR. JUSTICE FAISAL ARAB
MR. JUSTICE IJAZ UL AHSAN
CIVIL APPEAL NO.450 OF 2010
(Against the order dated 18.3.2010 of
the High Court of Sindh at Karachi
passed in C.P.No.D-777/2008)
Collector of Customs Appraisement, Collectorate, Customs House, Karachi
…Appellant(s)
VERSUS
M/s Gul Rehman, Proprietor M/s G. Kin Enterprises, Ghazali Street, Nasir
Road, Sialkot
…Respondent(s)
For the appellant(s):
Raja Muhammad Iqbal, ASC
For the respondent(s):
Mr. Azhar Maqbool Shah, ASC
Mr. Ahsan Hameed Lilla, ASC
Date of hearing:
25.11.2016
…
ORDER
MIAN SAQIB NISAR, J.- This appeal with the leave of the
Court turns on whether the respondent is entitled to the refund of customs
duty paid (along with the penalty), when, as per the case of the appellant the
respondent was required to prove that the incidence of customs duty had
not been passed onto the consumer in terms of the provisions of Section
19A of the Customs Act, 1969 (the Act), which it failed to do.
2.
The facts are that the respondent is an importer of fabrics and
it made a declaration in the bill of entry that the imported goods were
covered by heading 5407.5200, attracting 14% customs duty. The
department controverted this declaration and claimed that instead the
correct PTC heading would be 5903.1000, on which 25% customs duty was
payable. Pursuant to a show-cause notice, an order-in-original dated
3.7.2006 was passed in which the latter heading was held to be applicable
Civil Appeal No.450 of 2010
-: 2 :-
and the imported consignments were confiscated, an additional penalty was
imposed and the respondent was given the option under Section 181 of the
Act to redeem the confiscated goods on payment of a fine. In order to get
the consignments released the respondent made the requisite payments but
simultaneously assailed the order-in-original before the Collector of
Customs, Sales Tax & Federal Excise (Appeal) [Collector (Appeals)] who, vide
order dated 8.12.2006, accepted the plea of the respondent and determined
that the appropriate heading was indeed 5407.5200 and there was no mis-
declaration by the respondent. The department has admitted before us
today that they did not challenge this order and thus for all intents and
purposes it attained finality. Be that as it may, on account of the favourable
order of the Collector (Appeals) the respondent sought refund of the amount
paid by it on the basis of the order-in-original dated 3.7.2006. The
department declined to refund the said amount. Instead, vide another
order-in-original dated 5.3.2008 the department held that as the incidence
of the duty had been passed onto the consumer by the respondent
therefore it was not entitled to any refund in terms of Section 33 and 19A of
the Act. This order was successfully assailed by the respondents through a
constitutional petition filed before the learned High Court of Sindh,
resulting in the impugned judgment. Leave in this case was granted vide
order dated 30.6.2010, however it is important to note that in the same
order an admission on behalf of the learned counsel for the appellant was
recorded in the following terms:-
“Raja Muhammad Iqbal, learned ASC for the petitioner
contends that the petitioner department has no cavil to the
classification of PTC heading made by appellate court of
Collector of Customs in its order dated 8.12.2006.”
Civil Appeal No.450 of 2010
-: 3 :-
The only plea taken at the time of granting leave and which prevailed with
this Court was whether the amount paid by the respondent could be
refunded according to the mandatory provisions of Section 19A of the Act
when the incidence of the duty had been passed onto the end consumer.
3.
Learned counsel for the appellant, referring to Section 33 of the
Act, argued that the proviso contained therein is clear, which states that,
“Provided that no refund shall be allowed under this section if the sanctioning authority is
satisfied that incidence of customs duty and other levies has been passed on to the buyer or
consumer”. In this context he stated that according to Section 19A of the Act,
it was for the importer to prove that the incidence of duty had not been
passed onto the consumer, thus, by virtue of this strict liability, the burden
was on the respondent to prove the same, in the absence of which it would
be presumed that the incidence of duty had been passed onto the
consumer. Hence refund was impermissible under the law.
4.
Heard. We find that Section 33 of the Act has to be read as a
whole in order to appreciate the letter and spirit of its proviso. The said
section reads as under:-
“33.
Refund to be claimed within one year.-(1) No refund
of any customs-duties or charges claimed to have been paid or
over-paid through inadvertence, error or misconstruction
shall be allowed, unless such claim is made within one year of
the date of payment:
Provided that no refund shall be allowed under this
section if the sanctioning authority is satisfied that incidence
of customs duty and other levies has been passed on to the
buyer or consumer.
Civil Appeal No.450 of 2010
-: 4 :-
(2)
In the case of provisional payments made under
section 81, the said period of one year shall be reckoned from
the date of the adjustment of duty after its final assessment.
(3)
In the case where the refund has become due in
consequence of any decision or judgment by any appropriate
officer of Customs of the Board or the Appellate Tribunal or
the Court, the said period of one year shall be reckoned from
the date of such decision or judgment, as the case may be.”
5.
Thus it is clear from the language of Section 33(1) that refund
in terms thereof is to be allowed only where/if customs duty has been paid
as a result of some inadvertence, error or misconstruction, which is not the
position in the present matter. Right from the beginning the respondent has
agitated that the declaration made by it under PTC heading 5407.5200 was
correct. There was no inadvertence, error or misconstruction involved in
such declaration whereas it has been the stance of the department that this
heading was incorrectly attributed to the goods. This issue was conclusively
resolved by the Collector (Appeals) vide its order dated 8.12.2006 in favour
of the respondent, which, as mentioned earlier, has attained finality.
6.
Before proceeding further, we find it pertinent to discuss the
purpose and scope of a proviso; in relation to the arguments submitted
before us in respect of the proviso to Section 33(1) of the Act. Generally a
proviso is an exception to or qualifies the main provision of law to which it
is attached.1 Its purpose is to qualify or modify the scope or ambit of the
matter dealt with in the main provision, and its effect is restricted to the
particular situation specified in the proviso itself.2 Further, it is a settled
1 Per Anwar Zaheer Jamali, J in Dr. Muhammad Anwar Kurd and 2 others Vs. The State through Regional
Accountability Bureau, Quetta (2011 SCMR 1560).
2 Interpretation of Statutes (11th Ed.), N. S. Bindra.
Civil Appeal No.450 of 2010
-: 5 :-
canon of interpretation that a proviso is to be strictly construed3 and that it
applies only to the particular provision to which it is appended4. Whilst
holding that a proviso is limited to the provision which immediately
precedes it, Shafiur Rahman, J, in a four member judgment of this Court
reported as K.E.S.C. Progressive Workers’ Union through its Chairman
and others Vs. K.E.S.C. Labour Union through its General Secretary
and others (1991 SCMR 888) cited with approval, inter alia, the following
principles:-
“(i)
Wilberforce on Statute Law, page 303:
"A proviso is of great importance when the Court has to
consider what cases come within the enacting part of a
section and it is always to be construed with reference to
the preceding parts of the clause to which it is appended."
(ii)
Maxwell on the Interpretation of Statutes. Twelfth
Edition by P. St. J. Langan, page 189:
"It will, however, generally be found that inconsistencies
can be avoided by applying the general rule that the words
of a proviso are not to be taken "absolutely in their strict
literal sense," but that a proviso is "of necessity ...limited
in its operation to the ambit of the section which it
qualifies".
(v)
The Construction of Statutes by Earl T. Crawford,
page 605:
"As a general rule, however, the operation of a proviso
should be confined to that clause or portion of the statute
which directly precedes it in the statute".”
(Emphasis supplied)
3 Sh. Liaquat Hussain and others Vs. Federation of Pakistan through Ministry of Law, Justice and
Parliamentary Affairs, Islamabad and others (PLD 1999 SC 504).
4 Per Hamoodur Rahman, J in Pramatha Nath Chowdhury and 17 others Vs. (1) Kamir Mondal, (2) Ismail
Mondal, (3) Baju Mondal alias Hagura Mondal and (4) Dukha Mondal (PLD 1965 SC 434).
Civil Appeal No.450 of 2010
-: 6 :-
Therefore the proviso to Section 33 has to be confined to the particular sub-
section to which it is attached, i.e. sub-section (1), and if the case does not
fall within the purview of such sub-section in that the customs duty was
not paid as a result of inadvertence, error or misconstruction then
obviously the proviso would not be relevant. Before a proviso can have any
application, the section itself must apply. A holistic reading of Section 33 of
the Act, particularly the provisions of sub-section (3), clarifies that where a
refund becomes due as a result of any decision or judgment passed by a
customs officer, Appellate Tribunal etc., the proviso to sub-section (1)
would not be applicable because no such proviso is attached to sub-section
(3), meaning thereby that the refund has to be made notwithstanding the
fact that the incidence of customs duty had been passed onto the customer
and therefore Section 19A of the Act would not be attracted. Resultantly we
do not find any merit in this appeal which is accordingly dismissed.
JUDGE
JUDGE
JUDGE
Bench-I
Islamabad, the
25th November, 2016
Approved For Reporting
Ghulam Raza/*
| {
"id": "C.A.450_2010.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
PRESENT:
MR. JUSTICE SH. AZMAT SAEED
MR. JUSTICE QAZI FAEZ ISA
MR. JUSTICE SAJJAD ALI SHAH
CIVIL APPEAL NO.467 OF 2015
(On appeal from judgment dated
18.2.2015, passed by the Election
Tribunal,
Rawalpindi
in
EP
No.242/2013/RWP/11/2013)
Malik Shakeel Awan
… Appellant
Versus
Sheikh Rasheed Ahmed and 21
others
… Respondents
For the Appellant
: Mr. Muhammad Ilyas Sheikh, ASC
Syed Rifaqat Hussain Shah, AOR
For Respondent No.1 : Mr. Abdur Rashid Awan, ASC with
Mr. M.S. Khattak, AOR
Date of Hearing
: 20.03.2018
JUDGMENT
SH. AZMAT SAEED, J.- This Civil Appeal
under Section 67(3) of the Representation of the People
Act, 1976 is directed against the judgment dated
18.02.2015 of the Election Tribunal, Rawalpindi, whereby
the Election Petition i.e. EP No.242/2013/RWP/11/2013
filed by the present Appellant challenging election of
Respondent No.1 has been dismissed.
CA.467/2015
2
2.
After having read the order authored by my
learned brother Qazi Faez Isa, J., I find myself unable to
append my signatures of concurrence thereto. It has been
suggested that the decision of the instant Appeal be
deferred till the questions as raised and enumerated by
him are finally adjudicated by the Full Court. Such
exercise, if undertaken, is unlikely to be completed before
the proposed General Election of 2018. Election disputes
both at the stage of scrutiny of the Nomination Papers
and subsequently agitated through proceedings before
the Election Tribunals, the learned High Courts and this
Court are an integral part of the election process both
legally and politically. If the course of action as suggested
by my learned brother Qazi Faez Isa, J., is followed then
all the election disputes which will inevitably crop up
before the Returning Officers, Tribunals and the High
Courts or this Court would also not be adjudicated upon
till the decision of this Appeal as such election disputes
too, more often than not revolve around the questions
raised. In such circumstances, the very validity of the
proposed General Elections of 2018 would become
questionable and the acceptance of its result by the
participants almost impossible. In fact, the entire
CA.467/2015
3
electoral process would be put at risk with repercussions
too grave even to be contemplated let alone articulated
herein.
3.
Even otherwise, the present lis pertains to the
validity of a judgment of the Election Tribunal challenged
through the instant Appeal under Section 67 (3) of the
Representation of the People Act, 1976 (RoPA) while
through the question raised a very wide net has been cast
encompassing also the jurisdiction of this Court under
Article 184(3) of the Constitution of the Islamic Republic
of Pakistan, 1973 as well as the impact of various
provisions relating to qualifications and disqualifications
of Members of the Parliament and the Provincial
Assemblies. Several of the questions raised obviously do
not arise at the lis at hand, while the others have been
answered definitively by this Court in its various
judgments.
4.
In our legal system, law evolves brick by brick
and from judgment to judgment. If the judgments
pertaining to electoral disputes rendered by this Court
are carefully read, objectively understood and the ratio
thereof correctly identified, it would be clear and obvious
CA.467/2015
4
that principles of law, in this behalf, appear to have been
settled and consistently applied to the facts of each
individual case. The difference in outcome, if any, is the
result of difference in the facts of each case. Such
principles of law do not require any further clarification
on hypothetical considerations. The confusion, if any, is
not in the judgments.
5.
This Court, for that matter any court, seized of
a lis is required to decide the same rather than to embark
upon an academic exercise. We cannot shy away from
adjudicating upon the lis that comes before the Court
without
attempting
to
ascertain
and
identify
the
principles of law as developed through the interpretative
process of the previous judgments of this Court and
apply the same to the facts of the case.
6.
Be that as it may, the primary and elemental
question pertaining to electoral disputes, the various
jurisdictions which can be invoked for the settlement
thereof and the matters relating to qualification and
disqualification of the Members of the Parliament and the
Provincial Assemblies came up before this Court in the
case of Sher Alam Khan v. Abdul Munim and others (Civil
Petition No.3131 of 2017) wherein this Court after
CA.467/2015
5
examining the law as laid down by this Court, inter alia,
in the judgments reported as (1) Muhammad Jibran
Nasir and others Vs. The State and others (PLD 2018 SC
351), (2) Muhammad Hanif Abbasi v. Jahangir Khan
Tareen and others (PLD 2018 SC 114), (3) Muhammad
Hanif Abbasi v. Imran Khan Niazi and others (PLD 2018
SC 189), (4) Imran Ahmad Khan Niazi v. Mian
Muhammad
Nawaz
Sharif,
Prime
Minister
of
Pakistan/Member National Assembly, Prime Minister’s
House, Islamabad and 9 others (PLD 2017 SC 265), (5)
Khawaja Muhammad Asif v. Federation of Pakistan and
others (PLD 2014 SC 206), (6) Mian Najeeb-ud-Din
Owaisi and another v. Amir Yar Waran and others (PLD
2013 SC 482), (7) Malik Iqbal Ahmad Langrial v.
Jamshed Alam and others (PLD 2013 SC 179), (8) Air
Marshal (Retd) Muhammad Asghar Khan v. General
(Retd) Mirza Aslam Baig, Former Chief of Army Staff and
others (PLD 2013 SC 1), (9) Syed Mehmood Akhtar Naqvi
v. Federation of Pakistan through Secretary Law and
others (PLD 2012 SC 1089), (10) Muhammad Azhar
Siddiqui v. Federation of Pakistan and others (PLD 2012
SC 774), (11) Muhammad Yasin v. Federation of Pakistan
through Secretary, Establishment Division, Islamabad
CA.467/2015
6
and others (PLD 2012 SC 132), (12) Shahid Orakzai v.
Pakistan through Secretary Law, Ministry of Law,
Islamabad (PLD 2011 SC 365), (13) Muhammad Rizwan
Gill v. Nadia Aziz and others (PLD 2010 SC 828), (14)
Nawabzada Iftikhar Ahmad Khan Bar v. Chief Election
Commissioner Islamabad and others (PLD 2010 SC 817),
(15) Syed Fakhar Imam v. Chief Election Commission of
Pakistan and others (PLD 2008 SC 730), (16) Mian
Muhammad Nawaz Sharif v. President of Pakistan and
others (PLD 1993 SC 473), (17) Miss Benazir Bhutto v.
Federation of Pakistan and others (PLD 1988 SC 416),
(18) Farzand Ali v. Province of West Pakistan (PLD 1970
SC 98), (19) Muhammad Akram v. DCO, Rahim Yar Khan
and others (2017 SCMR 56), (20) Ch. Muhammad Ashraf
Warraich and another v. Muhammad Nasir Cheema and
others (2016 SCMR 998), (21) Jamshoro Joint Venture
Ltd. and others v. Khawaja Muhammad Asif and others
(2014 SCMR 1858), (22) Allah Dino Khan Bhayo v.
Election Commission of Pakistan, Islamabad and others
(2013 SCMR 1655), (23) Muhammad Khan Junejo v.
Federation of Pakistan through Secretary, M/o Law
Justice and Parliamentary Affairs and others (2013
SCMR 1328), (24) Abdul Ghafoor Lehri v. Returning
CA.467/2015
7
Officer, PB-29, Naseerabad-II and others (2013 SCMR
1271), (25) Muddasar Qayyum Nahra v. Ch. Bilal Ijaz
(2011 SCMR 80), (26) Suo Motu Case No. 10 of 2009
(Complaint regarding establishment of Makro-Habib
Store on playground) (2010 SCMR 885), and (27) Bartha
Ram v. Lala Mehar Lal Bheel and another (1995 SCMR
684), held as under:
“27. An overview of the afore-quoted
provisions
of
the
Constitution,
as
interpreted by this Court through its
various
juridical
pronouncements
referred to and reproduced herein above
leads to an irresistible and irrefutable
conclusion
that
our
Constitutional
dispensation
is
erected
upon
the
democratic principle that the authority
vest with the people of Pakistan can only
be
exercised
through
their
chosen
representatives.
Such
authority,
including the power of law making and
control over the public exchequer is to be
conferred
upon
the
chosen
representatives by way of trust and the
trust can only be reposed upon those who
are worthy thereof.
28. In
the
above
context,
the
qualification
and
disqualification
of
persons, entitled to act as the chosen
representatives of the people and to act
on their behalf as Members of the Majlis-
e-Shoora and the Provincial Assemblies
are set forth in the Constitution itself,
more particularly, in Articles 62 and 63
thereof
as
well
as
other
sub-
Constitutional legislation. An elaborate
process
and
procedure
has
been
prescribed by law to filter out those who
are disqualified or not qualified to contest
the elections to the Majlis-e-Shoora and
the Provincial Assemblies as is apparent
CA.467/2015
8
primarily from the provisions of ROPA of
1976.
With
regard
to
pre-election
disqualification, such process includes
objections before the Returning Officer at
the time of filing of the Nomination
Papers, an application to the ECP under
Section 103-A of ROPA of 1976. And
subsequently, an Election Petition before
the Election Tribunal established under
Article 225 of the Constitution. If no
objection is raised or challenge thrown or
relevant proceedings initiated before the
appropriate forum at the appropriate
time, the disqualification of a candidate is
not cured nor an abscent qualification
acquired.
29. Consequently, where a disqualified
or unqualified person slips through the
cracks sneaks into the Majlis-e-Shoora or
the Provincial Assemblies, his presence in
the said House can always be challenged
through exercise of the Constitutional
jurisdiction of this Court under Article
184(3) of the Constitution and before the
learned High Court under Article 199 of
the Constitution by way of a Writ in the
nature of quo warranto. Even where a
matter comes before this Court regarding
the qualification or disqualification of a
Member of the Majlis-e-Shoora or the
Provincial Assemblies otherwise by way of
proceedings other than under Article
184(3) of the Constitution, this Court not
only has the jurisdiction to convert such
proceedings to proceedings under Article
184(3) of the Constitution but is bound
to do so, as to permit an unqualified or
disqualified person to continue to defile
and desecrate the Majlis-e-Shoora or the
Provincial Assemblies and masqulate as a
chosen representative of the people would
amount to frustrating the Constitutional
provisions. In such an eventuality, if this
Court looks other way, it would perhaps
constitute
a
failure
to
protect
and
preserve the Constitution.
CA.467/2015
9
Thus, we find ourselves unable to
decline the prayer of the Petitioner to
examine the merits of the case so as to
determine on the basis of the material
available on record whether Respondent
No.1 was qualified or disqualified from
being
a
Member
of
the
Provincial
Assembly, KPK. Any refusal on our part
to avoid or evade such an exercise would
constitutes a departure from the law as
laid down by this Court and perhaps
would even amount to a betrayal of the
Constitution. Hence, we convert these
proceedings into Suo Motu proceedings
under Article 184(3) of the Constitution.”
7.
The questions raised by and large have been
answered
in
the
aforesaid
judgment,
which
was
challenged in review through Civil Review Petition bearing
No.106-P of 2018, which was dismissed vide judgment
dated 05.06.2018 by a Bench of this Court of which my
learned brother Qazi Faez Isa, J., was also a Member.
Perhaps thereby endorsing the law as enunciated in the
judgment without the necessity of hearing by a Full
Court. In all fairness, it must be mentioned that the
review was dismissed after the order was scribed by my
learned brother.
8.
The observations of Asif Saeed Khan Khosa, J.,
with regard to the perceived lack of clarity in Article
62(1)(f) of the Constitution in the case reported as Ishaq
Khan Khakwani and others v. Mian Muhammad Nawaz
Shairf and others (PLD 2015 SC 275) have been quoted
CA.467/2015
10
as a foundation for some of the questions posed in the
order. Suffice it to say, much water has flowed under the
bridge and this aspect of the matter has been dealt with
by Asif Saeed Khan Khosa, J., himself in the judgment of
this Court reported as Imran Ahmad Khan Niazi v. Mian
Muhammad
Nawaz
Sharif,
Prime
Miniser
of
Pakistan/Member National Assembly, Prime Minister’s
House, Islamabad and 9 others (PLD 2017 SC 265). After
reproducing the same observations in his note at page
417, paragraph 116, it was laid down as follows:
“116.
It
may
be
true
that
the
provisions of Article 62(1)(f) and the likes
of them had been inserted in the
Constitution through an amendment by
an unrepresentative regime of a military
ruler but at the same time it is equally
true that all the subsequent democratic
regimes
and
popularly
elected
Parliaments did nothing either to delete
such
obscure
provisions
from
the
Constitution or to define them properly so
that any court or tribunal required to
apply them may be provided some
guidance as to how to interpret and apply
them. Be that as it may the fact remains
that the said provisions are still very
much a part of the Constitution and
when they are invoked in a given case the
courts and tribunals seized of the matter
have no other option but to make some
practical sense of them and to apply them
as
best
as
can
be
done.
Before
application of those provisions to real
cases it is imperative to understand as to
why such provisions were made a part of
the Constitution and where do they stand
in the larger design of the Constitution.”
CA.467/2015
11
9.
The issues pertaining to the interpretation of
Article 62(1)(f) of the Constitution has been adjudicated
upon in the aforesaid judgment primarily via the majority
view which was also reflected in the judgment passed in
Civil Petition No.3131 of 2017, where-against a Civil
Review Petition, as stated earlier has been dismissed by a
Bench of which my learned brother Qazi Faez Isa, J., was
a Member.
10.
With regard to the exercise of jurisdiction by
this Court under Article 184(3) of the Constitution, some
hesitation has been noticed due to the absence of
provision
of
appeal
against
a
judgment
passed
thereunder. A settled principle of interpretation of the
Constitution has been enunciated by my learned brother
(Qazi Faez Isa, J.) himself in his note in the case reported
as District Bar Association, Rawalpindi v. Federation of
Pakistan (PLD 2015 SC 401) wherein he held as follows:
“81.(3)(b) Effect should be given to every
word, paragraph, clause and article of the
Constitution and redundancy should not
be imported thereto.”
11.
Thus, we cannot read a right of appeal into the
Constitution against a judgment/order passed by this
Court under Article 184(3) by adding a provision to the
Constitution. We also cannot decline to exercise our
CA.467/2015
12
jurisdiction under the said Article i.e. 184(3) merely
because no appeal is provided for. Such interpretation
would
render
the
said
Article
redundant
and
a
surplusage which is not permitted while interpreting the
Constitution.
12.
The question pertaining to the length of time for
which a declaration or finding by a Court of Law that the
person is not qualified in terms of Section 62(1)(f) of the
Constitution shall ensure has also been answered in no
uncertain terms by a five member Bench of this Court
vide judgment dated 13.04.2018 passed in Civil Appeal
No.233 of 2015 titled Sami Ullah Baloch v. Abdul Karim
Nosherwani.
13.
Where a misstatement or an inaccuracy or
concealment is established, the candidate/member would
always have the opportunity to offer an explanation.
Such explanation may or may not be found acceptable.
Such is the ratio of the judgment of this Court rendered
in the case reported as Sheikh Muhammad Akram v.
Abdul Ghafoor and 19 others (2016 SCMR 733). In the
said case, an Election Petition filed before the Election
Tribunal. In the proceedings, it stood established that a
criminal case registered against the candidate was not
CA.467/2015
13
mentioned in his Nomination Papers as required. Such
candidate offered an explanation which was accepted by
this Court by way of the aforesaid judgment which is
incidentally authorized by my learned brother Qazi Faez
Isa, J., and I too was a Member of the said Bench. The
said view i.e. in case of concealment, discrepancy and
misstatement in the Nomination Papers an explanation
thereof may be given by the candidate/member, which
may or may not be accepted by the court. And only, if
such explanation is found tenable no penal consequences
would follow. The question of “strict liability” does not
arise with regard to misstatements in the Nomination
Papers. Such view was also followed in the judgments of
this Court reported as Muhammad Siddique Baloch v.
Jehangir Khan Tareen and others (PLD 2016 SC 97) and
Muhammad Hanif Abbasi v. Imran Khan Niazi and others
(PLD 2018 SC 189). No departure has been made by this
Court in the cases reported as Imran Ahmad Khan Niazi
v. Mian Muhammad Nawaz Sharif, Prime Minister of
Pakistan/Member National Assembly, Prime Minister’s
House, Islamabad and 9 others (PLD 2017 SC 265) and
(PLD 2017 SC 692). In the aforesaid case, the
concealment of assets in the Nomination Papers filed by
CA.467/2015
14
the Respondent in the said proceedings was established
through an admission. At no point of time any
explanation was offered, in this behalf. Therefore, the
question of accepting or rejecting such explanation did
not arise. Even in the Review Petition, no explanation was
offered. However, an oblique reference in hypothetical
term was only made. This aspect of the matter was dealt
with and adjudicated upon by this Court in the judgment
passed on such review reported as Mian Muhammad
Nawaz Sharif and others v. Imran Ahmed Khan Niazi and
others (PLD 2018 SC 1). Reference, in this behalf, may be
made to para 11 of the said judgment. The relevant
portion thereof is reproduced hereunder:
“11. The argument that the omission to
disclose
assets
could
possibly
be
unintentional in the circumstances of the
case would have been tenable had the
petitioner been a novice or a new entrant
in business and politics. But where he
has been neck deep in business and
politics ever since early 80s’ it is
unbelievable that he did not understand
the simple principle of accounting that
his accrued and accumulated salary of
six and a half years was his asset and
liability of the company he was an
employee
of.
Even
otherwise,
this
argument cannot be given much weight
when it has not been pleaded by the
petitioner that the omission to mention
the asset was accidental, inadvertent or
unintentional. …”
(emphasis supplied)
CA.467/2015
15
Why no explanation was given or attempted to be given
will always remain a mystery.
14.
The
distinction
between
an
offence
contemplated by Section 9 sub-section (v) of the NAB
Ordinance, 1999 for possession of assets beyond known
sources of income and the lack of qualification in terms
of Article 62(1)(f) of the Constitution arising from the
concealment of assets in the Nomination Papers is rather
obvious. The proceedings before the Accountability Court
under the NAB ordinance are criminal in nature unlike
the proceedings which may result in a declaration that a
person is not honest on account of concealing of assets in
his Nomination Papers. The fora in which the proceedings
are initiated are distinct. The former commence in the
Accountability Court while the latter would arise from a
Tribunal
established
under
Article
225
of
the
Constitution in the High Court or in this Court in its
Constitutional jurisdiction. The consequences are also
distinct and different. A person found guilty of an offence
under Section 9 of NAB Ordinance would be convicted for
a term of imprisonment and disqualified while in the
latter case a person, if elected, would be de-seated and
may also be held not to be qualified.
CA.467/2015
16
15.
However, more critical difference is that while
in proceedings under the NAB Ordinance, if it is proved
that a person owns property or assets it is for such
person to answer the question as from which lawful
pecuniary resources such assets were acquired. In the
eventuality, it is discovered that an asset or assets have
not been mentioned in the Nomination Papers and owned
by the candidate or his dependants, the question
required to be answered is totally different. He is
expected to explain why such assets were not mentioned
in the Nomination Papers (not how such assets were
acquired). The requirements of the two provisions should
not be intermingled. This distinction, in this behalf, was
kept in view by this Court while adjudicating upon in the
case reported as Imran Ahmad Khan Niazi v. Mian
Muhammad
Nawaz
Sharif,
Prime
Minister
of
Pakistan/Member National Assembly, Prime Minister’s
House, Islamabad and 9 others (PLD 2017 SC 265). It
was established, in fact, admitted, that the assets owned
were not mentioned in the Nomination Papers and no
explanation, in this behalf, was offered, hence, the
provisions of Article 62(1)(f) of the Constitution were held
to be attracted. As regard to the source of funds for the
CA.467/2015
17
acquisition of assets allegedly held by the Respondents
directly or indirectly that matter was referred to
proceedings under the NAB Ordinance.
16.
The law as laid down by this Court in this
behalf i.e. with reference to Article 62(1)(f) of the
Constitution
is
unequivocal
consistent
and
well
established. It is the said principles of law which would
require to be applied for a fair adjudication of the lis at
hand.
17.
Adverting now to the facts of the instant case,
the main thrust of the contentions of the learned counsel
for the Appellant was that Respondent No.1 had
deliberately concealed his immovable property i.e.
agricultural land in his Nomination Papers. It was his
case that Respondent No.1 had declared his holdings to
be 983 Kanals 17 Marlas while it has been established on
record through cogent evidence that the said Respondent
owned 1049 Kanals and 13 Marlas in Village Raman,
Tehsil Fateh Jang, District Attock as is evident from
Ex.P-1 Goshwara Malkiet pertaining to the ownership of
Respondent No.1 in the said Village. Reference, in this
behalf, was also made to Ex.P-2. The defence, in this
behalf, put forward by the said Respondent was that
CA.467/2015
18
there was only an inadvertent discrepancy in the
Nomination Papers regarding the land holding as a result
of a miscalculation.
18.
With the help of the learned counsel, we have
examined the evidence produced by the parties. The
Nomination Papers filed by Respondent No.1 was brought
on record as Ex.P-4. It was tendered into evidence on
behalf of the present Appellant and is an admitted
document. The said Nomination Papers Ex.P-4 consists
of 96 pages. At page 4 against item No.14, the said
Respondent has declared his land holding as 968 Kanals
and 13 Marlas for the year 2012 and 983 Kanals and 17
Marlas approximately for years 2010-2011. The details of
such agricultural land are given at page 79 of the
Nomination Papers. With regard to the land holding in
Village Raman, the date of purchase of each parcel of
land and the quantum thereof has been specified (There
is reference to agricultural land claimed to have bought
and sold in another village which is not the subject
matter of the dispute as raised by the Appellant). The
details of the land purchased and the date of such
purchase by Respondent No.1 given at page 79 of the
Nomination Papers are as follows:
CA.467/2015
19
Land Measuring
Date of purchase
Kanals
Marlas
71
05
29.5.1986
128
17
29.5.1986
199
18
03.5.1986
101
18
05.7.1986
427
16
28.02.1996
110
15
29.3.1997
08
04
18.6.1998
33
04
04.10.1999
Total
1081
17
19.
A simple mathematical exercise reveals that as
per the details provided by Respondent No.1 in his
Nomination Papers at page 79, he owns 1081 Kanals and
17 Marlas of land and in the grand total it has been
incorrectly mentioned as 983 Kanals and 17 Marlas. This
error appears to have crept into the printed Nomination
Papers.
The
miscalculation
between
the
area
of
agricultural land owned by Respondent No.1 scribed in
the printed form and as mentioned item wise in the
details at page 79 of the Nomination Papers is self-
evident. As per the details, Respondent No.1 has perhaps
declared a little more land than as alleged by the
CA.467/2015
20
Appellant, thus, it can hardly be accused of concealing
any asset especially as a portion of the land appears to be
undivided share in various Khasra Numbers as is evident
from the documents Ex.P-1 and P-2 produced by the
revenue staff who entered the witness box on behalf of
the Appellant. In the circumstances, the explanation
offered
appears
to
be
reasonable
and
logical.
Consequently, the conclusion drawn by the Election
Tribunal that there was no concealment of agricultural
land in the Nomination Papers filed by Respondent No.1
is based upon a correct and judicious appreciation of the
evidence available on the record and in accordance with
the law as laid down by this Court. Hence, no exception
can be taken to such finding.
20.
The Appellant also questioned the property i.e.
House No.40, Sector-A, Golf City, Expressway, which
respondent claimed to have acquired from Bahria Town.
The said property is mentioned the Nomination Papers.
The payments made for acquiring the same is also not
disputed. Only issue raised by the Appellant is that its
correct market value has not been disclosed in the
Nomination Papers. In support of such contentions, the
learned counsel for the Appellant referred to the
CA.467/2015
21
statement of PW-7 an employee of Bahria Town. As noted
above, the amount paid by the said Respondent for the
said property is not disputed by either the Appellant or
PW-7.
Such
consideration
finds
mention
in
the
Nomination Papers. PW-7 stated that the other allottees
paid a higher price for the similar properties but no
document in support of such contention was produced by
him. The payments by other purchasers would be a
matter of record but the same was concealed from the
Election Tribunal by PW-7. Furthermore, no document
public or private evidencing any contemporaneous
transaction of property in the vicinity disclosing the
consideration has been produced in evidence by the
Appellant. Nothing from the record of the Sub-Registrar
of documents, in this behalf, is available. No person who
entered into any such transaction of sale of property in
the same area entered the witness box to prove or
disprove the value of such property. In this view of the
matter, it cannot be held that Respondent No.1 made any
misstatement regarding the value of the said property,
the ownership of which has been mentioned in the
Nomination Papers along with the consideration paid
therefor. In the circumstances, the finding by the learned
CA.467/2015
22
Election Tribunal that there is no misstatement, in this
behalf, with regard to the aforesaid House in the
Nomination Papers is borne out from the record. No
ground for interference with such findings has been
made out by the learned counsel for the Appellant.
21.
A half-hearted attempt was made by the
learned counsel for the Appellant to dispute the income
and sources thereof as mentioned by Respondent No.1 in
his Nomination Papers. Such income is reflected in the
Income Tax Returns of the said Respondent which are
also available on the record and appended with the
Nomination Papers as well as for earlier financial years
produced by the Appellant himself wherein the source of
income is set fourth. The Appellant could not through
evidence
disprove
the
declaration
made
by
the
Respondent in this behalf. No moveable asset or bank
account or source of income other than as disclosed in
the Nomination Papers has been proved in evidence by
the Appellant. In this view of the matter the learned
Election
Tribunal
rightly
held
that
no
material
concealment or misstatement, in this behalf, in the
Nomination Papers has been proved.
CA.467/2015
23
22.
Some allegations with regard to the conduct of
the election on the day of the election and thereafter were
raised before the learned Election Tribunal but not
proved and not pressed before us during the course of
hearing of this Appeal.
23.
In view of the above, no exception can be taken
to the findings returned and judgment delivered by the
learned Election Tribunal while dismissing the Election
Petition filed by the Appellant. Consequently, this Appeal
must fail and is dismissed accordingly.
Judge
Judge
‘APPROVED FOR REPORTING’
Mahtab H. Sheikh/*
Announced on ______________ at _______________
Judge
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
Present:
MR. JUSTICE SH. AZMAT SAEED
MR. JUSTICE QAZI FAEZ ISA
MR. JUSTICE SAJJAD ALI SHAH
CIVIL APPEAL NO. 467 OF 2015
(On appeal from the judgment dated 18.02.2015 of
the Election Tribunal, Rawalpindi passed in EP
No.242/2013/RWP/11/2013)
Malik Shakeel Awan.
… Appellant
VERSUS
Sheikh Rasheed Ahmed and others.
… Respondents
For the Appellant
:
Mr. Muhammad Ilyas Sheikh, ASC.
Syed Rifaqat Hussain Shah, AOR.
For Respondent No. 1
:
Mr. Abdur Rashid Awan, ASC.
Mr. M. S. Khattak, AOR.
Date of Hearing
:
March 20, 2018.
JUDGMENT
Qazi Faez Isa, J. This appeal assails the judgment of the Election
Tribunal, Rawalpindi (“the Tribunal”) dated February 18, 2015
whereby the Election Petition filed by the appellant was dismissed.
2.
The appellant challenged the election of Sheikh Rasheed
Ahmed (respondent No. 1), who won the National Assembly seat from
NA-55, Rawalpindi-VI by getting 88,627 votes against the appellant’s
75,306 votes. The elections were held on May 11, 2013. The appellant
through his Election Petition assailed the candidature of Sheikh
Rasheed Ahmed on a number of grounds, including that he had on
solemn affirmation misdeclared his source of income and the bank
profit earned by him, suppressed his total agricultural land holding
Civil Appeal No. 467 of 2015
2
and misdeclared the value of his house. The other grounds taken in
the Election Petition and in this Appeal were not pressed before us.
3.
Mr. Muhammad Ilyas Sheikh, the learned counsel representing
the appellant, states that the Nomination Form filed by Sheikh
Rasheed Ahmed, on the basis of which he contested elections, is
dated March 28, 2013 and was submitted to the returning officer on
April 2, 2013. The disclosure as required to be made in serial 12, 14
and item 4 of the Nomination Form, the “Statement of Assets and
Liabilities” and the document attached thereto titled “Details of
Immovable Assets” is contrary to the facts. To understand the learned
counsel’s contentions it would be appropriate to reproduce the same:
“12.
The income tax paid by me during the last three years is given
hereunder:
Total Income
**Source of Income
Tax Year
Total Income Tax
Paid
3134761/-
PROFIT/PROPERTY
2010
Rs. 316341/-
3075048/-
“
2011
Rs. 307349/-
2248089/-
“
2012
Rs. 224883/-
Note I: Attach copies of income tax returns of the years mentioned above.
**If more than one sources of income, attach detail.”
“14.
The agricultural income tax paid by me during the last three years is
given below:
Tax Year
Land Holding
K M
Agricultural
Income
Total Agricultural
Income Tax Paid
2010
983-17 (APPROX)
-NIL-
-NIL-
2011
983-17 “
-NIL-
-NIL-
2012
968-13 “
-NIL-
-NIL-
Note II: Attach copies of agricultural tax returns of the last three years
mentioned above.”
STATEMENT OF ASSETS AND LIABILITIES
ASSETS
ASSETS
Cost of Assets
Remarks
4. IMMOVABLE PROPERTY
Open plots, houses,
apartments,
under
construction
properties,
agricultural property,
etc. (attach location,
description, built up
area
and
present
market value of the
house/apartment
in
which
you
are
presently living).
Rs.16,773,500/-
DETAILS ATTACHED
Civil Appeal No. 467 of 2015
3
DETAILS OF IMMOVABLE ASSETS
S.No.
ASSETS
VALUE
1
D-267, Al-Rashid Market, Sarafa Bazar,
Rawalpindi
1,655,500
2
House No. 40, Sector-A, Golf City, Bahria Town
10,200,000
3
Land Village Rama, Tehsil Fateh Jhang,
District Attock
3,768,000
4
House, Farm, Shed etc, Fateh Jhang, District
Attock
800,000
5
Tractor Trolly etc
350,000
TOTAL
16,773,500
According to the learned counsel, Sheikh Rasheed Ahmed in
his Nomination Form disclosed that he owned 968 kanals and 13
marlas of agricultural land in the year 2012, which was a false
declaration, as he owned 1081 kanals of land (“the agricultural
land”). He also made a false declaration of his House No. 40, situated
in Sector-A of Golf City, Bahria Town (“the said house”) by
mentioning its value to be ten million and two hundred thousand
rupees even though its value at the time of its sale was forty eight
million rupees.
4.
That with regard to the matter of the discrepancies in the
payment of income tax the learned counsel refers to documents,
however, from these documents it is difficult to establish the
allegation.
5.
To support his contention with regard to the agricultural land
the learned counsel refers to the Goshwarah Haqeeqat (Exhibit P-1)
and Jamabandi (Exhibit P-2) for the years 2008-09 which show the
respondent No.1’s agricultural land holding to be 1049 kanals and 13
marlas. These two documents were produced through the witness
(PW-8) Basharat Ali, Patwari of Halqa Rama, Tehsil Fateh Jhang,
District Attock. PW-8’s predecessor Babar Khan, Patwari, had earlier
come to give evidence before the Tribunal and had produced Exhibit
Civil Appeal No. 467 of 2015
4
R-1 showing the respondent No. 1’s land holding, but before he could
be cross-examined he was transferred. Exhibit R-1 shows respondent
No.1’s agricultural land holding in the said halqa to be 1038 kanals
and 8 marlas. He submits that even if Exhibit R-1 which respondent
No. 1 admits is accepted, then too the respondent No. 1 in his
Nomination Form had shown his agricultural land holding to be 968
kanals and 13 marlas whereas admittedly it was 1038 kanal and 19
marlas, therefore, he had not disclosed 70 kanals and 6 marlas of his
agricultural land. The learned counsel refers to the affidavit-in-
evidence (Exhibit P9) of the appellant, the relevant portion whereof is
reproduced hereunder:
“Respondent No. 1 owned agricultural land measuring 1049
Kannals 13 Marlas in Mouza Ramma Tehsil Fateh Jang
District
Attock
however
as
per
details
attached/appended/mentioned in his nomination papers he
declared land measuring 963 Kannals 13 Marlas. In this
way he concealed 81 Kannals of land situated in the said
Mouza. Respondent No. 1 himself declared his ownership,
in his Wealth Statement, in the said Mouza as 1068
Kannals 08 Marlas as on 30-06-12 and land measuring
1083 Kannals 12 Marlas as on 30-06-11 whereas in his
nomination papers he concealed his said ownership and
declared as 968 Kannals 13 Marlas as on 30-06-12 and 983
Kannals as on 30-06-11.”
The learned counsel submits that neither Basharat Ali (PW-1)
nor the appellant (PW-8) were cross-examined on their testimony of
the agricultural land holding of respondent No. 1 and thereby the fact
of nondisclosure of the said agricultural land was deemed to be
admitted by respondent No. 1. The learned counsel further states
that respondent No. 1 in paragraph 14 of his affidavit-in-evidence
(Exhibit R/3) stated that he owned 1081 kanals and 17 marlas of
land, therefore, admittedly respondent No. 1 did not disclose 113
kanals and 4 marlas of land. The relevant portion from the affidavit-
in-evidence of respondent No. 1 is reproduced hereunder:
Civil Appeal No. 467 of 2015
5
“14. The Deponent owned and possessed land measuring
1081 kanals 17 marlas located at Mozia Rama, Tehsil
Fateh Jang District Attock. The Deponent never
concealed the ownership of the said property either in
his returns filed before the tax department or in the
nomination papers. Due to miscalculation the area
has been shown as 968 kanals 13 marlas. If it is
calculated correctly it comes 1081 kanals 17 marlas.
The
election
Petitioner
failed
to
examine
the
nomination papers seriously and not only stated
wrongly in his election petition but also falsely
deposed through Exhibit P/9 regarding the said
land.”
The appellant’s counsel states that in his cross-examination
respondent No. 1 also admits that he had not mentioned his entire
agricultural land holding in his Nomination Form, the relevant
portion whereof is reproduced hereunder:
“It is correct that I did not mention my total owned land
measuring 1080/1090 Kanals in my nomination papers.
Volunteered, that during the counting of measurement of
land before the RO [Returning Officer] there was no
calculator and for the first time in the nomination papers,
the RO desired the exact measurement of land and there
might be some mistake occurred in the nomination papers,
however, the details of total land was attached. It is
incorrect to suggest that my volunteered portion is
incorrect, false and afterthought.”
That the appellant’s learned counsel submits that in view of the
referred to documents, the evidence and the admission of respondent
No. 1, it is incontrovertibly established that respondent No. 1
misdeclared his agricultural land holding in the Nomination Form.
The learned Presiding Officer of the Tribunal had also come to the
conclusion that respondent No. 1 had not disclosed his entire
agricultural land, but, according to the learned counsel, the learned
Presiding Officer had illegally discounted it by holding, that “the
difference in the measurement of agricultural land mentioned in the
Civil Appeal No. 467 of 2015
6
documents above by no stretch of imagination amounts to concealment
of assets”.
6.
That as regards the said house the learned counsel for the
appellant states that respondent No. 1 did not purchase the said
house for Rs.10,200,000/-, as shown in his Nomination Form, but
instead for Rs.48,000,000/-. He refers to the testimony of Sheikh
Amjid, General Manager (Operations) of Bahria Town, Rawalpindi
(PW-7) who produced the attested copy of “Allotment Certificate”
issued by Bahria Town (Pvt.) Limited which shows that Bahria Town
(Pvt.) Limited had allotted the said house to respondent No. 1. This
witness testified that, “the market value of the said house at the time
of booking was Rs.48,000,000/- and now the market value of this
house is more than Rs.60,000,000/-”. The learned counsel states that
respondent No. 1 however took the plea that he had paid only ten
million rupees and its balance price was adjusted by giving 15 kanals
and 4 marlas of his agricultural land to Bahria Town (Pvt.) Limited,
however, when he was asked whether a sale deed was registered with
regard to the said 15 kanals and 4 marlas of agricultural land or
whether its transfer was effected by the Revenue authorities by
mutation or otherwise, respondent No. 1 stated that, “this was his
[Bahria Town (Pvt.) Limited] responsibility to transfer this land and if I
am not going to transfer, the allotment of my house shall automatically
be cancelled”. But, respondent No. 1 did not produce any document
to support his contention that the allotment of his house would be
cancelled. In response to the question about the market value of his
agricultural
land,
respondent
No.
1
answered
that
it
was
Rs.3,768,000/-, and as mentioned in the Nomination Form,
therefore, the learned counsel states, that if this value is accepted it
Civil Appeal No. 467 of 2015
7
would mean that the said 15 kanals and 4 marlas was worth just a
few thousand rupees and shown to be two hundred thousand rupees
in his Nomination Form, however, such value was false as the price
of the said house was forty eight million rupees, and it is
unbelievable that it was purchased for about one fifth of its price.
With regard to the said house, the learned Presiding Officer of the
Tribunal had held that, “even if there is a difference of price, it cannot
be said to be a case of concealment of asset as respondent No. 1 had
declared ownership of the said house”. The learned counsel states
that the Nomination Form requires both the declaration of the asset
as well as its “value” and the learned Presiding Officer could not have
discarded one component thereof, and in doing so committed a
material illegality.
7.
Mr. Ilyas Sheikh, the appellant’s learned counsel, refers to
section 12(2)(a) and (f), section 78(3)(d), and section 99(1)(f) of the
Representation of the People Act, 1976 (“ROPA”) and Article 62(1)(f) of
the Constitution to support his case for the disqualification of
respondent No. 1. Reliance was also placed upon the following cases:
Muhammad Rizwan Gill v Nadia Aziz (PLD 2010 Supreme Court 828),
Shamuna Badshah Qaisarani v Muhammad Dawood (2016 SCMR
1420), Muhammad Ahmad Chatta v Iftikhar Ahmad Cheema (2016
SCMR 763), Muhammad Yousaf Kaselia v Peer Ghulam Mohy-ud-Din
Chishti (PLD 2016 Supreme Court 689), Imran Ahmed Khan Niazi v
Mian Muhammad Nawaz Sharif (PLD 2017 Supreme Court 265)
(“Panama Papers-I”), Imran Ahmed Khan v Muhammad Nawaz Sharif
(PLD
2017
Supreme
Court
692)
(“Panama
Papers-II”)
and
Muhammad Nawaz Sharif v Imran Ahmed Khan Niazi (PLD 2018
Supreme Court 1) (“Panama Papers-III”). The learned counsel states
Civil Appeal No. 467 of 2015
8
that the recent judgments of this Court and particularly those in the
Panama Papers’ cases hold that the court may look at any material
which comes before it and if the material suggests that a candidate
has not disclosed all his assets in the Nomination Form he be
disqualified and declared not to be honest/ameen in terms of section
99(1)(f) of ROPA and Article 62(1)(f) of the Constitution and thereby
attract permanent disqualification. And, the nondisclosure and
misdeclaration of assets was not excusable by respondent No. 1 who,
as per his own showing, was an old hand in politics having been a
member of the National Assembly, “for six times consecutively”. The
learned counsel states that the appellant’s case is better than the
facts of the Panama Papers’ cases wherein the elected person had
denied the receipt of salary, but which was deemed to have become
his asset. In the present case respondent No. 1 admits that he had
not disclosed all of his agricultural land, and had falsely declared
that he had given away 15 kanals and 4 marlas of land as part-
payment for the purchase of the said house. The learned counsel
concludes by stating that the respondent No. 1 himself was one of the
petitioners in the Panama Papers’ cases (Constitution Petition No. 30
of 2016) therefore he cannot expect to be judged by a different
standard himself.
8.
Mr. Abdur Rashid Awan, the learned counsel representing
respondent No. 1, relies upon the impugned judgment of the Tribunal
which, according to him, is based on a correct assessment of facts
and conforms with the legal principles enunciated by this Court. He
states that the Election Petition did not specifically mention the
agricultural land which was not disclosed nor the correct value of the
said house in paragraph 14 but simply alleged that properties had
Civil Appeal No. 467 of 2015
9
been concealed by respondent No. 1 in his statement of assets. The
appellant only made these specific allegations in his affidavit-in-
evidence, which, according to the learned counsel, was not a part of
the pleadings. As regards the agricultural land the learned counsel
took two fold pleas, firstly that the document titled “Details of
Agricultural Land” provides the complete particulars of the
agricultural land but a mistake in calculation was committed in
clause 14 of the Nomination Form, and, alternatively, that, if at all
nondisclosure is established it was a bona fide mistake and cannot
be equated with a misdeclaration entailing disqualification and/or
attracting the disqualification contemplated by section 99(1)(f) of the
ROPA and/or Article 62(1)(f) of the Constitution. He next states that
no advantage would accrue to respondent No. 1 in not disclosing all
his agricultural lands nor would he gain an advantage by not
showing the real value of the said house. The learned counsel states
that judgments in the Panama Papers’ cases are not applicable to
appeals filed under section 67(3) of the ROPA because the Panama
Papers’ cases arose out of a petition directly filed before this Court
under Article 184(3) of the Constitution.
9.
We have heard the learned counsel for the parties and with
their assistance examined the available record and the referred to
cases.
10.
The learned counsel for the appellant has not been able to
satisfy us with regard to the alleged discrepancies in the payment of
income tax and bank profit earned by respondent No. 1. Therefore, it
would not be appropriate for us to declare that respondent No. 1 had
provided incorrect information regarding his income tax on the basis
Civil Appeal No. 467 of 2015
10
of mere inference nor will it be appropriate to enable the appellant to
make out his case by recording additional evidence before this Court.
11.
That with regard to the agricultural land and the said house
Issue No. 9 was framed by the Tribunal: “Whether the respondent No.
1 concealed the facts of his properties in the declaration of assets
against the provisions of the Constitution of the Islamic Republic of
Pakistan”. As regards the matter of agricultural land there is un-
rebutted evidence that respondent No. 1 owned more land than
shown by him in his Nomination Form which respondent No. 1
admits to be 113 kanals and 4 marlas or 70 kanals and 6 marlas as
per Exhibit R-1 which land was not disclosed by him in his
Nomination Form. The document titled “Details of Agricultural Land”,
referred to by the learned counsel representing respondent No. 1,
also does not help him because therein respondent No. 1’s land
holding is shown to be 968 kanals and 13 marlas so the plea of
miscalculating is not sustainable. It is however entirely possible that
this nondisclosure was an oversight by respondent No. 1 particularly
when there appears to be no benefit or advantage accruing to him on
account of such nondisclosure.
12.
As regards the value of the said house, the General Manager
(Operations) of the Bahria Town (Pvt.) Limited had mentioned that at
the time of booking the price of the said house was forty eight million
rupees, however, admittedly Bahria Town (Pvt.) Limited received a
payment of only ten million rupees and, if the respondent No. 1 is to
be believed, 15 kanals and 4 marlas of land, as consideration thereof.
However, the said 15 kanals and 4 marlas of land admittedly still
stands in the name of respondent No. 1; there is no sale deed, sale
agreement, exchange deed or any other kind of agreement to support
Civil Appeal No. 467 of 2015
11
the story put forward by respondent No. 1. Moreover, neither
respondent No.1 nor Bahria Town (Pvt.) Limited informed the
Revenue authorities about the purported sale/transfer/exchange of
the 15 kanals and 4 marlas of agricultural land despite the fact that
respondent No. 1 had acquired the said house in the year 2011, well
before the evidence in the case was recorded by the Tribunal. The
said Allotment Certificate (Exhibit P-8) does not mention the price of
the said house nor that it was issued in part exchange for 15 kanals
and 4 marlas of agricultural land. Respondent No. 1’s Nomination
Form and Details of Immovable Assets also did not disclose this.
There is yet another aspect to consider, Bahria Town (Pvt.) Limited is
a corporate entity, and the accounts of every company are required to
be audited and submitted to the concerned authorities. If Bahria
Town (Pvt.) Limited had actually acquired 15 kanals and 4 marlas of
land it needed to be disclosed, but not a single document in this
regard was produced nor did the representatives of the company
testify that the company had disclosed such land in its official
records. However, the Sales Executive and Finance Manager referred
to Exhibit R-2 an undated letter written by them, but there is no
signature of respondent No. 1 on Exhibit R-2, despite there being a
place for the “Buyer: Sheikh Rasheed Ahmed” to sign it. In the
absence of respondent No. 1’s signature Bahria Town (Pvt.) Limited
would not be able to hold respondent No. 1 to this alleged sale. The
question also arises why would a limited liability company act in this
unconventional manner and contravene the laws governing it?
Whether respondent No. 1 did not have the requisite ‘white money’,
that is money duly declared to the income tax authorities, or he was
given the said house at almost one-fifth of its price as a political
favour, and the part-exchange of agricultural land was just a sham
Civil Appeal No. 467 of 2015
12
explanation to conceal the truth, would require us to delve in the
realm of conjecture, which we consciously do not want to. We are
however clear that there is sufficient evidence on record to establish
that respondent No. 1 misdeclared the value of the said house in his
Statement of Assets, the correct value of which was not less than
forty eight million rupees.
13.
That having determined that respondent No. 1, did not disclose
all his agricultural land and misdeclared the value of the said house
in his Nomination Form the consequences of such nondisclosure and
misdeclaration need consideration. If the principle or rule of strict
liability is applicable respondent No. 1 will have to be disqualified.
But, if the strict liability rule is not applicable then the consequences
of the said nondisclosure and misdeclaration need to be explored
further. However, in cases where the nondisclosure or misdeclaration
gives an illegal advantage to a candidate then such nondisclosure or
misdeclaration would terminate his candidature, and if he has been
elected to his disqualification and consequent removal. For example,
if a person was convicted of an offence under the National
Accountability Bureau Ordinance, 1999 (“the NAB Ordinance”) but
his Nomination Form did not disclose his conviction or give an earlier
date of his conviction to mislead that the ten year period of
disqualification (section 15 of the NAB Ordinance) had already
expired; such a misdeclaration or nondisclosure would violate the
NAB Ordinance as it would enable an unqualified person to
participate in the elections. Similarly, a person who isn’t yet 25 years
of age, which is the minimum age to contest National Assembly
elections (Article 62(1)(b) of the Constitution and section 99(1)(b) of
the ROPA), misdeclares his date of birth to falsely show himself to be
Civil Appeal No. 467 of 2015
13
25 years of age or older; such a person too merits removal because he
was not competent to contest. However, a misdeclaration where, for
instance, the candidate who is 26 years old mistakenly mentions his
age as 25 years, such misdeclaration did not overcome or disregard a
law which prohibited his participation in the elections and therefore
it could be categorized as inconsequential. In the case of Sheikh
Rasheed Ahmed the misdeclaration made by him apparently did not
offend any law, in that if he had disclosed his entire land holding and
had shown the value of the said house to be forty eight million rupees
he would still be able to contest the elections.
14.
There are judgments of this Court which apply the principle or
rule of strict liability and hold that any nondisclosure or misdeclaration
results in disqualification; Panama Papers-II and III evidently advocate
this principle or rule. A member of the National Assembly, who was
subsequently elected by a majority of the members of the National
Assembly to be the Prime Minister, was disqualified as a member of the
National Assembly and, consequently, as the Prime Minister, because he
did not disclose the income said to have been earned by him as he had a
work permit (Iqama) of Dubai, United Arab Emirates the issuance of
which was conditional on the iqama holder being paid a salary, therefore,
irrespective of whether he actually received a salary, it was sufficient to
constitute his “earnings” and then deemed to have become his asset, the
nondisclosure
whereof
was
held
by
this
Court
to
constitute
misdeclaration and, hence, as a consequence he was disqualified in
terms that, “he is not honest in terms of section 99(1)(f) of the ROPA
and Article 62(1)(f) of the Constitution”. Even though it was not held by
this
Court
that
the
candidate
suffered
from
any
inherent
disqualification and if he had disclosed his said salary/asset he
Civil Appeal No. 467 of 2015
14
would have been disqualified. Panama Paper-II and III, therefore,
clearly apply the strict liability principle, however, they did not follow
other judgments of this Court which held that misdeclaration or
nondisclosure
would
only
result
in
disqualification
if
the
nondisclosure or misdeclaration circumvented a legal disability or
disqualification: Muhammad Siddique Baloch v Jehangir Khan
Tareen (PLD 2016 Supreme Court 97) and Sheikh Muhammad
Akram v Abdul Ghafoor (2016 SCMR 733), which will be discussed in
paragraph 18 hereinbelow after discussing the Panama Papers’ cases.
15.
In Panama Papers-I the learned Ejaz Afzal Khan, J, had
discussed the scope of Article 62 of the Constitution and section 99
of the ROPA with regard to the disclosure and accounting of a
candidate’s assets, as under:
“A reading of Article 4 of the Constitution would reveal that
no person shall be compelled to do that which the law does
not require him to do. While a reading of Article 62 and 63
of the Constitution and Section 99 of the ROPA would
reveal that none of them requires any member of Parliament
to account for his assets or those of his dependents even if
they are disproportionate to his known means of income.
Section 12(2)(f) of the ROPA requires him to disclose his
assets and those of his spouse and dependents and not the
means whereby such assets are acquired. Where none of
the provisions of the Constitution or the Act dealing with
disqualification requires a member of Parliament to account
for his assets and those of his dependents, even if they are
disproportionate to his known means of income, how could
this Court on its own or on a petition of any person under
Article 184(3) of the Constitution require him to do that,
and declare that he is not honest and ameen if he does not
account for such assets.” (at pages 485-6)
“… disqualifications envisaged by Article 62(1)(f) and Article
63(2) of the Constitution in view of words used therein have
to be dealt with differently. In the former case the Returning
Officer or any other fora in the hierarchy would not reject
the nomination of a person from being elected as a member
of Parliament unless a court of law has given a declaration
that he is not sagacious, righteous, non-profligate, honest
and ameen. Even the Election Tribunal, unless it itself
proceeds to give the requisite declaration on the basis of the
material before it, would not disqualify the returned
Civil Appeal No. 467 of 2015
15
candidate where no declaration, as mentioned above, has
been given by a court of law. The expression “a court of law”
has not been defined in Article 62 or any other provision of
the Constitution but it essentially means a court of plenary
jurisdiction, which has the power to record evidence and
give a declaration on the basis of the evidence so recorded.”
(at page 490SS)
In the same case another learned member of the Bench Sh.
Azmat Saeed, J, had held that:
“25. In the above backdrop to hold that an MNA, who may
(or may not) own an undeclared property yet his
explanation for the source of the funds for acquiring such
property, though legally irrelevant, is not acceptable, hence,
such MNA is disqualified, is a legal absurdity under the
laws of the Islamic Republic of Pakistan.” (at page 524)
“30. Before the said provisions can be pressed into service,
there must be a declaration by Court of law. At the risk of
stating the obvious, it may be clarified that the Courts of
law are concerned with the matters of law not morality.
There can be no manner of doubt that the term “honest” as
employed in Article 62(1)(f) refers to legal honesty, an
objective concept and not mere moral or ethical honesty,
which is subjective. The Courts have never wandered into
the realm of morality, in this behalf.” (at page 525)
“36. In all the aforesaid cases, the applicability of Article
62(1)(f) of the Constitution was considered. In no case, any
person was disqualified under the said Article in the
absence of an established and proved breach of a legal
obligation or violation of a law. In no case, the question of
Article 62(1)(f) was even seriously considered in the absence
of at least specific allegations of breach of a legal obligation
or violation of law. No judgment of this Court has been cited
at the bar where a person has been disqualified under
Article 62(1)(f) for being dishonest where such alleged
dishonesty did not offend against the law or involve a
breach or non-fulfillment of a legal obligation.” (at page 527)
“37. Such is the true and obvious import of Article 62(1)(f)
of the Constitution, as has been consistently without any
exception interpreted and applied by this Court. Article
62(1)(f) of the Constitution cannot be permitted to be used
as a tool for political engineering by this Court nor should
this Court arrogation unto itself the power to vet candidates
on moral grounds, like a Council of Elders as is done in a
neighbouring
Country.
Under
our
Constitutional
dispensation,
Pakistan
is
to
be
governed
by
the
Representatives chosen by the people and not chosen by
any Institution or a few individuals.” (at page 528)
Civil Appeal No. 467 of 2015
16
Ijaz ul Ahsan, J, after elaborately and competently setting out
the applicable legal provisions stated that only “a Court or Tribunal of
competent jurisdiction” could determine whether a candidate had
submitted a “statement of assets and liabilities which is found to be
false in material particulars,” as under:
“In terms of Section 42-A(4) of the RoPA if a member
submits the statement of assets and liabilities which is
found to be false in material particulars, he may be
proceeded against under Section 82 of the RoPA for
committing an offence of corrupt practice. If found guilty by
a Sessions Judge under Section 94 of the RoPA, such
member is punishable with imprisonment for a term which
may extend to three years or with fine which may extend to
Five Thousand Rupees or with both. In case, it is
established in a Court or Tribunal of competent jurisdiction
that a candidate has concealed any of the assets required to
be disclosed under the statement of assets and liabilities in
his Nomination Papers or his Annual Statement of Assets
and Liabilities, the same may constitute basis for his
disqualification inter alia under the provisions of Articles 62
and/or 63 of the Constitution.” (at page 638)
16.
Panama Papers-I had set up a joint investigation team (JIT) to
investigate whether respondent No. 1 therein held properties and
companies abroad in his own name or through others (benami) and
the source of funds utilized for purchase of such properties. In
Panama Papers-II after considering the report submitted by the JIT
the learned Ejaz Afzal Khan, J, on behalf of the Court determined as
under:
“It has not been denied that respondent No. 1 being
Chairman of the Board of Capital FZE was entitled to
salary, therefore, the statement that he did not withdraw
the salary would not prevent the un-withdrawn salary from
being receivable, hence an asset. When the un-withdrawn
salary as being receivable is an asset it was required to be
disclosed by respondent No. 1 in his nomination papers for
the Elections of 2013 in terms of section 12(2)(f) of the
ROPA. Where respondent No. 1 did not disclose his
aforesaid assets, it would amount to furnishing a false
declaration on solemn affirmation in violation of the law
mentioned above, therefore, he is not honest in terms of
section 99(1)(f) of the ROPA and Article 62(1)(f) of the
Constitution of the Islamic Republic of Pakistan.” (at page
710)
Civil Appeal No. 467 of 2015
17
However the principles enunciated by his lordship in Panama
Papers-I were not discussed. Some may contend that the aforesaid
observations in Panama Papers-I are at variance with Panama
Papers-II and III.
17.
Panama Papers-III was a judgment on the review petition filed
against the judgment of Panama Papers-II. This judgment too was
only authored by the learned Ejaz Afzal Khan, J, who held that:
“…we could not have shut our eyes when an asset of the
petitioner arising out of IQAMA (work permit) having
surfaced during the investigation of the case and admitted
by him to be his in no uncertain terms, was not found to
have been disclosed in his nomination papers in terms of
Section 12(2)(f) of ROPA.” (at page 19)
The aforesaid conclusion was arrived at by referring to a
number of judgments: Hassan Nawaz v Haji Muhammad Ayub (PLD
2017 Supreme Court 70), Mehmood Akhtar Naqvi v Federation of
Pakistan (PLD 2012 Supreme Court 1089), Sadiq Ali Memon v
Returning Officer (2013 SCMR 1246). The learned Ejaz Afzal Khan, J,
stated that the judgments of this Court cited by the other side were
“distinguishable on facts and law”; the said cited judgments included
the judgments in Muhammad Siddique Baloch v Jehangir Khan
Tareen (PLD 2016 Supreme Court 97) and Sheikh Muhammad
Akram v Abdul Ghafoor (2016 SCMR 733). The judgments in the
cases Hassan Nawaz and Sadiq Ali Memon, which were relied upon in
Panama Papers-III, were cases in which candidates were suffering
from an inherent disqualification to contest elections because they
were holding the nationality of another country.
18.
The cases of Muhammad Siddique Baloch and Sheikh
Muhammad Akram were stated in Panama Papers-III to be
Civil Appeal No. 467 of 2015
18
“distinguishable” however it was not elaborated how they were
distinguishable and why the legal principle enunciated therein was
not applicable. The principle enunciated in the case of Muhammad
Siddique Baloch is reproduced below:
“29. At this juncture, it is important to emphasize that in
cases involving a finding of fact about the disqualification of
a returned candidate in election matters, such finding must
be based on affirmative evidence and not on presumptions,
inferences and surmises…For that reason and the and the
serious
consequences
that
follow
a
finding
of
disqualification under Article 62(1)(f) of the Constitution, an
additional evidentiary safeguard is adopted by the Court,
namely, that any reasonable hypothesis available in the
recorded evidence to avoid the disqualification of the
returned candidate ought to be adopted by the Court of
law.” (at page 119T and U)
Another three member Bench of this Court in the case of
Sheikh Muhammad Akram which involved a candidate who did not
disclose a pending criminal case against him was not disqualified
because this nondisclosure did not give the candidate any advantage.
The changes made to Article 62(1)(f) of the Constitution pursuant to
the Eighteenth Amendment to the Constitution, whereby the
declaration in respect of matters contained therein was required to be
made by a court of law, was also noted. The relevant portions from
the judgment are reproduced hereunder:
“…a candidate is not disqualified to contest elections merely
because a criminal case is pending against him. Non-
disclosure of a pending case can not be equated with the
non-disclosure of a criminal case in which a person has
been
convicted
and
one
which
may
entail
his
disqualification. Incidentally, no one objected to the
appellant’s candidature when he submitted his nomination
papers. If such an objection had been taken, the appellant
could have provided the requisite information of the said
pending criminal case, as required by paragraph 4 (above)
of the Nomination Form and resolved the matter, as the
Returning Officer is required to provide the candidate an
opportunity to, ‘allow any such defect to be remedied forthwith’ if
he deems that such defect is not of a ‘substantial nature’ as
per proviso (ii) to subsection (3) of section 14 of the Act.
Civil Appeal No. 467 of 2015
19
However, no objection was raised and this defect in the
nomination paper was not remedied and the appellant was
allowed to contest the elections. The people of the
constituency elected the appellant from a field of 21
candidates. Would the electorate, or sufficient number of
them to change the result, not have voted for him if they
knew about the pendency of the said case?” (at page 743)
“The appellant had also not lied to gain a benefit to which
he was not otherwise entitled to, i.e. to be able to contest
elections, therefore, the disqualification contained in
Section 99(1)(d),(e) and (f) of the Act, which were the same
as those contained in Article 62(1)(d),(e) and (f) of the
Constitution would not be attracted. It may also be
observed that the stipulation requiring a candidate to be
‘sagacious, righteous and non-profligate and honest and
ameen’ contained in Section 99(1)(f) of the Act was the same
as contained in Article 62(1)(f) of the Constitution prior to
the Eighteenth Amendment. However, (after the Eighteenth
Amendment) the said provision has been changed and to
now attract the disqualification there must be a declaration
by a court. Article 62(1)(f) now reads as follows:
“he is sagacious, righteous, non-profligate,
honest and ameen, there being no declaration
to the contrary by a court of law.”
(at page 745)
“16. The mandate given by the electorate must not be
interfered with on hyper-technical grounds. Unfortunately,
the Hon’ble Tribunal thought otherwise, as it not only set
aside the election of the most popular candidate chosen by
the people to represent them, but did so for factors wholly
extraneous to the law.” (at page 747)
Panama Papers-III also did not discuss the aforequoted
principles expounded in Panama Papers-I (paragraph 15 above).
19.
After the Panama Papers-II and III the case of Muhammad
Hanif Abbasi v Imran Khan Niazi (PLD 2018 Supreme Court 189) was
decided by another three member Bench of this Court where the
strict liability rule was also not followed:
“Arithmetical accuracy in reconciling amounts and events
is not required in such a case of misdeclaration of assets.
Only a coherent account of the sources of funds, their
application and movement should be shown by reference
to consistent and reliable evidence, even though it may
suffer from gaps…” (at page 284)
Civil Appeal No. 467 of 2015
20
20.
Once the facts of a case have been ascertained the applicable
law is applied to arrive at a decision. However, when the facts are
clear but different benches of this Court, comprising of the same
number of judges, have taken divergent views the matter needs
urgent resolution. Another question which requires determination is
whether the matter of nondisclosure or misdeclaration is to be
treated differently if the case is heard by the Supreme Court in its
appellate jurisdiction (section 67(3) of the ROPA) from a case heard
by this Court in its extraordinary original jurisdiction (Article 184(3)
of the Constitution). There is yet another matter which needs to
considered and conclusively settled.
21.
Article 184(3) of the Constitution states that only matters of
“public importance with reference to the enforcement of the
Fundamental Rights” can be attended to by this Court when
exercising powers thereunder. When a question of public importance
with reference to the enforcement of the Fundamental Rights arises,
this Court (under Article 184(3) of the Constitution) can pass an
order of the nature mentioned in Article 199 of the Constitution.
However, when a High Court passes an order under Article 199 of the
Constitution it can be appealed before this Court (under Article 185
of the Constitution), but when this Court exercises jurisdiction under
Article 184(3) of the Constitution the order can not be assailed in
appeal. Precedents of this Court have held that the right of appeal is
a substantive right and not one of mere procedure (see, Manzoor Ali v
United Bank Limited, 2005 SCMR 1785, Muhammad Azhar Siddiqui
v Federation of Pakistan, PLD 2012 Supreme Court 774 and Pakistan
Defence Officer’s Housing Authority v Jawaid Ahmed, 2013 SCMR
Civil Appeal No. 467 of 2015
21
1707). In the case of Pakistan Defence Officer’s Housing Authority a
five member Bench of this Court held, that:
“The right of appeal is a substantive right…Would it be a
fair trial if an accused is shorn off his right of appeal?
Would the deprivation of right of appeal not amount to
judicial sanctification of all the orders passed by the
departmental authorities awarding various penalties to the
employees and would it not be violative of the fundamental
right to a “fair trial and due process” as ordained in Article
10A of the Constitution?” (paragraph 57, pages 1746K and
1747L and M)
22.
When hearing the review petition in Panama Papers-III this
Court was cognizant that no appeal is provided for against an order
passed under Article 184(3) of the Constitution. This Court therefore
held that greater care and circumspection is required to be exercised:
“The argument that much greater care has to be exercised
in upholding the order disqualifying the petitioner in terms
of section 99(1)(f) of ROPA and Article 62(1)(f) of the
Constitution when no appeal lies against it is more of an
apprehension as we being conscious of our duties have
dealt with this case with much greater care and
circumspection in the judgment under review and while
hearing and deciding this petition for review.” (at page 23)
However, one can as of right file an appeal against a judgment
or order which can not be done in a review petition. Moreover, unlike
an appeal the parameters of a review petition are circumscribed. The
constraints imposed by Order XXVI of the Supreme Court Rules of
1980 govern a review petition and provide that a judgment or order
may be set aside only on very limited grounds, such as an error
apparent on the face of the record. An appeal however is not bound
by these constraints. A review petition is required to be heard by the
same
judges
(as
far
as
practicable)
who
had
passed
the
judgment/order under review, however, an appeal is never heard by
the same judges.
Civil Appeal No. 467 of 2015
22
23.
In Panama Papers-I Article 62(1)(f) of the Constitution, which
provides that an adverse declaration with regard to a person’s
sagacity, righteousness, profligacy, honesty and whether or not
he/she is ameen, must be declared by a court of law, which was
expounded to mean a court of “plenary” or “competent” jurisdiction
(paragraph 15 above) which suggests the exclusion of the Supreme
Court when exercising its extraordinary original jurisdiction under
Article 184(3) of the Constitution. The question therefore arises
whether a person can be disqualified under Article 62(1)(f) of the
Constitution by this Court in exercise of its jurisdiction under Article
184(3) of the Constitution? Another important matter which requires
consideration is whether disqualification under Article 62(1)(f) of the
Constitution is for the duration of the assembly, in respect whereof
elections are held, or is permanent? The scope of Article 225 of the
Constitution, which specifically deals with election disputes, also
needs to be considered and whether on the principle of the specific
excluding the general this Article excludes resort to Article 184(3) of
the constitution in respect of individual election disputes. And, to
what extent, if at all, can an election dispute be categorized as a
matter of “public importance” and which particular Fundamental
Right stands infringed, which needs “enforcement”? It would not be
fair to one or other of the contesting parties herein if we decide this
case at this stage because in doing so we would be preferring one set
of views to another and not on the basis of a clear declaration of law,
which is bound to give rise to misgivings. It is therefore all the more
necessary that the questions which have arisen be thoroughly
examined and answered.
Civil Appeal No. 467 of 2015
23
24.
When divergent views are expressed by different benches of the
same number of judges of this Court the matter needs early
resolution and all the more so when, “Any decision of the Supreme
Court shall, to the extent that it decides a question of law or is based
upon or enunciates a principle of law, be binding on all other courts of
Pakistan” (Article 189 of the Constitution). The applicable test with
regard to elections and the qualification-disqualification of candidates
is indeterminate and has serious repercussions, which assume
criticality in an election year. The terms of the National and the four
provincial assemblies will conclude in a few months and general
elections will be held. Confusion would result when returning officers
throughout the country apply different Supreme Court decisions in
accepting or rejecting candidates’ Nomination Forms. And confusion
will be further perpetuated when, after the elections have been held,
election petitions are filed before election tribunals designated to hear
and decide them in the absence of a clear legal pronouncement on
the subject. Matters would then come up before this Court in its
appellate jurisdiction and possibly too in its extraordinary original
jurisdiction
under
Article
184(3)
of
the
Constitution.
Legal
uncertainty may undermine the credibility of the electoral process,
embitter political adversaries, encourage political commentators and
the public to cast uncalled for aspersions on the returning officers,
the election tribunals and possibly on this Court as well if the
interpretation of the law favourable to a party is not applied. We must
make every effort to dispel any impression that different persons are
treated differently. Justice must not only be done but be seen to be
done too. Every endeavour therefore should be made to resolve the
prevailing legal uncertainty. The eligibility of members of Parliament
Civil Appeal No. 467 of 2015
24
should be “decided in accordance with one single and definite
measure”.
25.
We therefore request the Hon’ble Chief Justice to constitute a
bench, preferably the Full Court, since every judge of this Court has
heard election disputes and acquired invaluable knowledge which will
undoubtedly better help to decide the following questions of law,
which have arisen in this appeal, and which will also arise in other
cases:
Q.1. Does every nondisclosure or misdeclaration in the Nomination
Form result in the disqualification of a candidate or only those
whereby one has circumvented some inherent legal disability to
participate in an election?
Q.2. If a petition does not disclose the particular facts, on the basis
of which disqualification is sought, can these be considered
when subsequently disclosed in the affidavit-in-evidence of the
petitioner or which may otherwise be discovered during the
hearing before the tribunal/court?
Q.3. Does Article 225 of the Constitution exclude the application of
Article 184(3) of the Constitution to election disputes?
Q.4. If the answer to the foregoing question is in the negative, then
is an election dispute regarding an individual’s qualification or
disqualification a matter of “public importance” which requires
the “enforcement” of a Fundamental Right and if so can it be
determined under Article 184(3) of the Constitution?
Q.5. If the answer to the foregoing question is in the affirmative, are
the procedural and evidentiary rules governing election
petitions and appeals under the ROPA the same as those
governing petitions under Article 184(3) of the Constitution?
Civil Appeal No. 467 of 2015
25
Q.6. Does the “court of law” mentioned in Article 62(1)(f) of the
Constitution include the Supreme Court when exercising
jurisdiction under Article 184 (3)?
Q.7. If a candidate is disqualified on account of nondisclosure or
misdeclaration does such disqualification subsist only till the
next elections or is it permanent?
26.
Some of the aforesaid questions were also formulated by this
Court in the case of Ishaq Khan Khakwani v Mian Muhammad Nawaz
Sharif (PLD 2015 Supreme Court 275, at pages 283-4) however the
case was decided on facts, and the questions remained unanswered.
One of the seven learned members of the Bench observed, that:
“It is with this in view and in order to avoid controversy as
to the meaning of Article 62(1)(f) and 63(1)(g) of the
Constitution and the terms ‘honest’ and ‘ameen’ used
therein, that the foregoing questions must be adjudicated
to provide guidance through precedent. Such precedent
can ensure that constitutional questions and challenges as
to the qualifications/disqualifications and eligibility of
members of Parliament are decided in accordance with one
single and definite measure; otherwise there can be vastly
divergent and differing approaches which could be taken
by various returning officers or election tribunals as per
their reading and understanding of the Constitution. This
in turn has the potential of leading to and rendering any
election controversial bearing in mind that there are 1070
constituencies and if, based on past statistical data, there
are on average 10 candidates in each constituency, there
will be more than 10,000 aspirants for elected office in the
National and Provincial Assemblies who will require
scrutiny and evaluation on the touchstone of Articles 62
and 63 of the Constitution. In the last general elections
cases did come up where contradictory and inconsistent
Civil Appeal No. 467 of 2015
26
decisions were handed down by Returning Officers for
want of guidance through precedent.” (at page 291)
“4.
The question as to which Civil Court will have
jurisdiction
to
make
the
declaration
or
conviction
envisioned by Articles 62 and 63 will also need to be
decided… .”
Another distinguished member of the Bench repeated the
prescient warning he had issued decades earlier:
“…the vague, uncertain, obscure and conflicting terminology
used in different provisions of Articles 62 and 63 of the
Constitution…is bound to confuse the electorate at large,
hound the candidates and their voters, embarrass the
Returning Officers at the time of scrutiny of nomination papers,
confound the Election Tribunals and become a nightmare for
the lawyers and Courts in the years to come.”
27.
We are aware that most probably by the time the aforesaid
questions are answered the tenure of the present National Assembly
would be over. However, the determination of these questions is long
overdue and must not be delayed further and should be settled
finally.
28.
Since the aforesaid questions require interpretation of the
Constitution and the ROPA, notices be given to the Attorney-General
for Pakistan, the Advocate-Generals of the four provinces and the law
officer representing the Islamabad Capital Territory, all of whom
should submit in writing their respective answers to the questions
and support their answers with reasons. Notices be also issued to the
Chief Election Commissioner and the Election Commission of
Pakistan.
ORDER OF THE BENCH
This Civil Appeal i.e. CA No.467/2015 (Malik
Shakeel Awan v. Sheikh Rashid Ahmed etc.) is hereby
dismissed by a majority of two to one, with Qazi Faez Isa, J’s
holding that first the matter be referred to a Bench comprising
of the Full Court to decide the questions of law identified and
enumerated by him.
Judge
Judge
Judge
Announced on ______________
At _______________
Judge
| {
"id": "C.A.467_2015.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
PRESENT:
Mr. Justice Iftikhar Muhammad Chaudhry, CJ
Mr. Justice Tariq Parvez
Mr. Justice Ghulam Rabbani
CIVIL APPEALS NO.468, 471-474, 632-633, 852-859, 883-892, 899-
901, 950 & 974 OF 2010
(On appeal from the judgment dated 22.12.2009 passed
by the High Court of Sindh at Hyderabad in C.P. No.D-707
of 2009; judgment dated 29.10.2009 passed by the
Peshawar High Court, Peshawar in W.P. No. 2140 of 2006,
144 & 398 of 2007, 1938 of 2008 and 2190 of 2009;
judgment dated 16.03.2010 in C.P.No.D-297 & 299 of
2008; judgment dated 05.05.2010 passed by the Lahore
High Court, Multan Bench in W.P. No. 4811, 5325, 5425,
5728 & 5798 of 2006, 551 of 2007 and 6143, 6691 & 9257
of 2009; judgment dated 03.06.2010 passed by the High
Court of Sindh, Karachi in C.P. No.D-750 & 751 of 2006,
1695 & 1696 of 2008, 98, 298, 300, 682, 1950 & 1951 of
2009;
judgment
dated
15.06.2010
passed
by
the
Peshawar High Court in W.P. No. 339 of 2006; order dated
14.06.2010 passed by the Lahore High Court, Lahore in
W.P. No. 21202 of 2009; and judgment dated 17.06.2010
passed by the Lahore High Court, Multan Bench in ICA No.
219 of 2009)
CIVIL APPEALS NO. 468, 471-474, 632-633, 852-859, 899-901,
950 & 974 of 2010
Pakistan Telecommunication Co. Ltd. through its Chairman
… APPELLANT
VERSUS
Iqbal Nasir & 2 others
… RESPONDENTS
[CA 468/2010]
Fazal Karim & 17 others
… RESPONDENTS
[CA 471/2010]
Naseer Khan & 4 others
… RESPONDENTS
[CA 472/2010]
C.A. 468 of 2010 etc.
2
Muhammad Adnan Pasha & 3 others
… RESPONDENTS
[CA 473/2010]
Muhammad Idrees & another
… RESPONDENTS
[CA 474/2010]
Shakeel Ahmed & another
… RESPONDENTS
[CA 632/2010]
Syed Ahsan Ali & another
… RESPONDENTS
[CA 633/2010]
Hafiz Muhammad Hussain & 21 others
… RESPONDENTS
[CA 852/2010]
Hafiz Muhammad Hussain
… RESPONDENT
[CA 853/2010]
Muhammad Naveed Alam & another
… RESPONDENTS
[CA 854/2010]
Abdul Ghaffar & 5 others
… RESPONDENTS
[CA 855/2010]
Hafiz Muhammad Hussain
… RESPONDENTS
[CA 856/2010]
Muhammad Ikhlaq & 2 others
… RESPONDENTS
[CA 857/2010]
Iram Zahra & another
… RESPONDENTS
[CA 858/2010]
Iram Zahra & 3 others
… RESPONDENTS
[CA 859/2010]
Imtiaz Ali & 39 others
… RESPONDENTS
[CA 899/2010]
Qadeer Ahmed & 3 others
… RESPONDENTS
[CA 900/2010]
Abid Hussain & another
… RESPONDENTS
[CA 901/2010]
Murad Ali Khan & 4 others
… RESPONDENTS
[CA 950/2010]
Irfan Bashir & 23 others
… RESPONDENTS
[CA 974/2010]
C.A. No. 883 of 2010
Manzoor Ali & 25 others
… APPELLANTS
C.A. 468 of 2010 etc.
3
VERSUS
Federation of Pakistan through Secretary
Ministry of Information & Technology &
Telecommunication, Islamabad & 3 others
…
RESPONDENTS
C.A. No. 884 to 892 of 2010
Muhammad Arif Joya
…
APPELLANT
[CA 884/2010]
Allah Rakhio & another
…
APPELLANTS
[CA 885/2010]
Abdul Ghafoor & another
…
APPELLANTS
[CA 886/2010]
Ghulam Shabbir
…
APPELLANT
[CA 887/2010]
Shah Muhammad Rajpur
…
APPELLANT
[CA 888/2010]
Syed Muhammad Ally Raza & another
…
APPELLANTS
[CA 889/2010]
Mukhtiar Ahmed & 6 others
…
APPELLANTS
[CA 890/2010]
Naimat Ullah & 3 others
…
APPELLANTS
[CA 891/2010]
Muhammad Rafique & 4 others
…
APPELLANTS
[CA 892/2010]
VERSUS
General Manager & others
…
RESPONDENTS
For the appellants:
Mr. Muhammad Munir Piracha, ASC
(in CAs 468,471-474, 632,
Mr. Mehmood A. Sheikh, AOR,
633, 853-859, 899-901,
with Ms. Zahida Awan, GM (Legal)
950 & 974/2010)
Syed Yamin Shah, Manager (HR)
For the appellants:
Raja M. Ibrahim Satti, Sr. ASC
(in CA. 852/2010)
For the appellants:
Mr. Nazir Ahmed Bhutta, ASC
(in CAs 883-892/2010)
Mr. Mehmood A. Sheikh. AOR
For respondents :
Mr. Muhammad Rafique Rajwana, ASC
(in CAs.852-859/2010)
Mr. M.S. Khattak, AOR
C.A. 468 of 2010 etc.
4
For respondents :
Mr. Ejaz Faroze, ASC
(in CAs.882-892 /2010)
For respondents :
Mir Afzal Malik, ASC
(in CA.899/2010)
For respondents :
Mr. M.A. Ghani, ASC
(in CA.900 /2010)
For respondents :
Malik Qamar Afzal, ASC
(in CAs.471 & 950/2010)
For Telecom :
Mr. Ishtiaq Haider, ASC
Foundation
:
(in CAs.472-474 & 950/2010)
Respondents
:
M/s Iqbal Nazir, Naqi Butt, Izhar-ud-Din
(in-person)
Syed Ahsan Ali, Shakeel Ahmed,
M. Adnan Pasha
Dates of hearing:
4, 22, 24, 29 & 30.11.2010
.-.-.
J U D G M E N T
Iftikhar Muhammad Chaudhry, CJ –. These appeals, by
leave of this Court, are directed against the judgments passed on
different dates by the High Court of Sindh at Hyderabad & Karachi,
Peshawar High Court at Peshawar & D.I. Khan and Lahore High Court
at Multan & Lahore in Constitution/Writ Petitions filed by the
respondents/employees
of
the
appellant
company
“Pakistan
Telecommunication Co. Ltd.”, hereinafter referred to as the PTCL,
against the termination of their service, and/or denial of the benefit of
voluntary separation scheme introduced by the appellant.
2.
The facts in C.A. No. 468 of 2010, arising out of judgment
dated 22.12.2009 passed by the High Court of Sindh at Hyderabad in
C.P. No.D-707 of 2009 are that the PTCL introduced a scheme for its
employees known as “Voluntary Separation Scheme” (hereinafter
referred to as “VSS”), whereby, apart from other benefits which an
C.A. 468 of 2010 etc.
5
employee was entitled to get, he was also entitled to receive early
retirement benefits provided he had rendered a minimum of 20 years
of service. The petitioners in the said petition [respondents herein]
applied for the benefit of VSS, but were denied the same on the
ground that they did not possess the requisite qualifying length of
service. They wrote a letter to a learned Judge of the High Court of
Sindh, Circuit Bench, Hyderabad which was converted into a
Constitution Petition and notices were issued to the concerned
authorities. The claim of the said respondents was that they had
completed 20 years of service from the date of their appointment, but
they were wrongly denied the benefit of VSS. On the other hand, the
stance of the PTCL was that the respondents/petitioners were
appointed on 14.12.1981 & 24.03.1983 respectively, they passed their
recruitment examination on 03.08.1987 and completed their training
on 30.10.1988 & 02.04.1990 respectively, therefore, their service
could only be considered from the date of successful completion of
training, and not from the date of their initial appointment. In rebuttal,
the respondents referred to the case of one Mrs. Rubina Khadim,
Telephone Operator who was granted similar benefits on the basis of
date of her appointment and not with reference to the date of
completion of training, and submitted that the act of the PTCL was a
clear case of discrimination, which warranted interference by the High
Court in the exercise of its constitutional jurisdiction. The learned
Division Bench of the High Court allowed the Constitution Petition and
directed the PTCL to extend the benefit of VSS to the respondents as
well. Following the view thus taken, another learned Division Bench of
the said High Court at Hyderabad, vide a common judgment dated
16.03.2010 passed in Constitution Petitions No. D-297 & D-299 of
C.A. 468 of 2010 etc.
6
2008 granted relief to the petitioners therein and the PTCL was
directed to pay to them the balance amount and monthly pension as
claimed by them.
3.
Aggrieved
by
the
said
judgment/order,
the
PTCL
approached this Court by means of Civil Petitions No. 516, 1185 &
1186 of 2010 wherein leave was granted vide separate orders dated
08.07.2010 and 19.07.2010 to consider, inter alia, the contentions
that writ in the matter could not be issued to the PTCL as it was not
performing functions in connection with the affairs of the Government,
and even if it was assumed to be performing such functions, still the
subject matter of the impugned judgment was not connected with the
affairs of the Government, and further whether the rules framed by
the PTCL were statutory or not.
4.
Civil Appeal No. 901 of 2010 arises out of the judgment
dated 17.06.2010 passed by the Lahore High Court, Multan Bench in
ICA No. 219 of 2009, filed by the appellant-employee of the PTCL,
Multan Region, who had opted for VSS wherein the cut off date was
mentioned as 26.05.2008 but he could not be relieved from service
due to some unavoidable reasons and continued till 04.06.2008,
therefore, he claimed the pay and benefits up-till 04.06.2008, which
were declined by the PTCL authorities. He then approached the Lahore
High Court, Multan Bench through Writ Petition No. 4690 of 2008,
which was dismissed vide order dated 08.07.2009. Aggrieved by the
said order, the respondent challenged the same in ICA No. 219 of
2009, which was allowed by the Division Bench vide order dated
17.06.2010 and the remuneration for the period over and above the
cut off date was ordered to be paid to him.
C.A. 468 of 2010 etc.
7
5.
This Court, vide orders dated 21.09.2010 and 28.09.2010
passed in Civil Petitions No. 1569, 1622-1626, 1742 & 1780 of 2010,
and 1678, 1679 & 1694 of 2010 respectively, filed against the above
judgments, granted leave to appeal to the PTCL in terms of leave
granted in Civil Petitions No. 516 of 2010 and 1185 of 2010.
6.
Civil Appeals No. 899 & 900 of 2010 arise out of judgment
dated 15.06.2010 passed by a Division Bench of the Peshawar High
Court in Writ Petition No. 339 of 2006 and order dated 14.06.2010
passed by a learned Single Judge of the Lahore High Court, Lahore in
Writ Petition No. 21202 of 2009 respectively, filed by the petitioners-
employees of the PTCL, Peshawar and Lahore Regions seeking a
declaration that they were employees of the PTCL from the date of
appointment and entitled to the same wages as were being paid to
other regular employees of PTCL, and the termination orders made by
the PTCL or by the Foundation were void, as also a direction to the
PTCL to take them on its strength from the date of appointment and to
pay them salary. By the impugned judgment and order, the relief
prayed for was granted by the respective High Courts, against which
leave was granted by this Court vide order dated 28.09.2010 passed in
Civil Petitions No. 1678 & 1679 of 2010.
7.
Another set of appeals, namely, Civil Appeals No. 471,
472, 473, 474 & 950 of 2010 arises out of the consolidated judgment
dated 29.10.2010 passed by the Peshawar High Court in Writ Petitions
No. 2140 of 2006, 144 & 398 of 2007, 1934 of 2008 and 2190 of 2009
filed by the petitioners-employees of the PTCL, Peshawar Region
against the termination of their services due to the termination of
contract by the PTCL with the Telecom Foundation regarding hiring of
services of skilled, semi-skilled and unskilled manpower in that region.
C.A. 468 of 2010 etc.
8
It was pleaded that the impugned orders of termination of services
were patently mala fide as neither their jobs were abolished nor any
charge existed against them, which were also discriminatory and
deprived them of the equal treatment before, and equal protection of
law, inasmuch as various other similarly placed employees were made
permanent and were continuing in service. A learned Division Bench of
the Peshawar High Court, following the law laid down by this Court in
the judgment reported as PTCL v. Muhammad Zahid (2010 SCMR
253), on a parity of reasoning, allowed the writ petitions and declared
the impugned orders to be without jurisdiction, without lawful
authority and of no legal effect, besides being discriminatory and
ordered the petitioners to be restored on their respective posts with all
back benefits due to them under the contract agreement except the
monthly salary as they had not practically worked on their posts.
8.
This Court, vide order dated 05.07.2010 passed in Civil
Petitions No. 2581, 2582, 398 and 612 of 2010 filed against the above
judgment, granted leave to appeal to the PTCL to consider, inter alia,
the contention that there was no statutory right in favour of the
respondents-employees to continue in service despite retrenchment,
which aspect was not adverted to by the learned High Court.
9.
The next set of appeals, namely, Civil Appeals No. 852 to
859 & 974 of 2010 arises out of the consolidated judgment dated
05.05.2010 passed by the Lahore High Court, Multan Bench in Writ
Petitions No. 4811, 5325, 5425, 5728 & 5798 of 2006, 551 of 2007
and 6143, 6691 & 9257 of 2009, all filed by the petitioners-employees
of the PTCL, Multan Region against the termination of their services. It
was pleaded that in the light of the judgment of this Court reported as
Muhammad Zahid (supra), the petitioners were entitled to the same
C.A. 468 of 2010 etc.
9
relief, i.e. the regularization of their appointment and grant of same
wages as were being paid to the other regular employees of the PTCL.
In pursuance of the interim orders passed by the High Court, the
petitioners continued to perform their duties. A learned Single Judge of
the Lahore High Court, Multan Bench, in the light of the precedent
case of Muhammad Zahid (supra) allowed the writ petitions and
granted the relief prayed for.
10.
Yet another set of appeals, namely, Civil Appeals No. 883
to 892 of 2010 arises out of the consolidated judgment dated
03.06.2010 passed by the High Court of Sindh, Karachi, in Constitution
Petitions No. C.P. No.D-750 & 751 of 2006, 1695 & 1696 of 2008 and
98, 298, 300, 682, 1950 & 1951 of 2009, all filed by the petitioners-
employees of the PTCL, Karachi Region against the termination of their
services. A learned Division Bench, in the light of the law laid down by
this Court in the cases of Muhammad Zahid (supra) and PIAC v.
Tanweer-ur-Rehman (PLD 2010 SC 676) held that though PTCL was a
person amenable to the jurisdiction of the High Court under Article
199(5) of the Constitution, but since PTCL did not have statutory rules,
the writ petitions of the employees of PTCL were not maintainable,
therefore, the same were dismissed and the petitioners were allowed
to seek such remedies as were available to them under the law. Leave
against the aforesaid judgment was granted by this Court vide order
dated 28.09.2010 passed in Civil Petitions No. 1589 to 1598 of 2010.
11.
Mr. Muhammad Munir Piracha, ASC, learned counsel for
the appellant PTCL contended that the PTCL was not a person
performing functions in connection with the affairs of the Federation
within the meaning of Article 199(5) of the Constitution, inasmuch as
the Federal Government, on 12.04.2006, entered into an agreement
C.A. 468 of 2010 etc.
10
with Etisalat International Pakistan LLC, hereinafter referred to as “the
EIP” whereby 1,326,000,000 shares of the PTCL were transferred to
the EIP, therefore, the management of the company vested in the EIP.
He
argued
that
the
PTCL
had
succeeded
the
Pakistan
Telecommunication Corporation, hereinafter referred to as “the PTC”,
which was governed by section 6 of the Pakistan Telecommunication
Corporation Act, 1991 [hereinafter referred to as the Act of 1991],
therefore, only such functions of the Corporation, which were
performed in pursuance of section 6 ibid, could be said to be functions
in connection with the affairs of the Federation. The matters dealing
with the officers and servants of the PTCL, which vested in the EIP,
were not the functions in connection with the affairs of the Federation.
The learned counsel maintained that the law laid down in Muhammad
Zahid’s case, which was rendered at a time when the controlling share
of the concern vested, not with the EIP, but with the Federal
Government was required to be revisited/clarified in view of the fact
that the controlling shares had subsequently been vested with the EIP.
12.
Mr. Muhammad Ibrahim Satti, learned Sr. ASC, also
appeared on behalf of the PTCL and submitted that in absence of
statutory rules, the employees of the PTCL were governed by the
principle of “Master and Servant” and the writ petitions were not
competent and the learned High Courts wrongly assumed jurisdiction
under Article 199 of the Constitution. He contended that the terms and
conditions of service of employees of the PTCL were governed by the
contracts of service, according to which they were temporary
employees/daily wagers, therefore, they could not claim permanent
appointments against the provisions of the contracts, which provided,
inter alia, that the employees would not have any right of permanent
C.A. 468 of 2010 etc.
11
induction in service. The learned counsel submitted that Muhammad
Zahid’s case was wrongly relied upon by the learned High Courts in the
instant case, inasmuch as this Court has clarified/modified the
judgment in the said case in the subsequent judgment to the effect
that the employees who were not governed by statutory rules were
debarred to invoke the jurisdiction of the High Court under Article 199
of the Constitution. To substantiate his argument, he referred to
Executive Council Allama Iqbal Open University v. M. Tufail Hashmi
(2010 SCMR 1484), which laid down that the employees of only such
organizations were entitled to invoke constitutional jurisdiction of the
High Court, which were performing functions in connection with the
affairs of the Federation and whose services were governed by
statutory rules.
13.
Mr. M.A. Ghani, ASC for the respondents-employees in
C.A. No. 900/2010 argued that the respondents were workmen as
defined in section 2 (xxviii) of the Industrial Relations Ordinance,
1969, section 2 (xxx) of the Industrial Relations Ordinance, 2002 and
clause (g) of Order 1 of the Schedule to the W.P. (Standing Orders)
Ordinance, 1968, the role of Telecom Foundation was only of
employment exchange and they were the employees of the PTCL from
the date of appointment, regular after 183 days of service and entitled
to same wages as were being paid to regular employees of the PTCL as
held in Masood v. PIAC [2001 PLC (CS) 41], which formed the basis of
Muhammad Zahid’s case (supra). The learned counsel submitted that
Masood’s case (supra) was also relied upon in Ikram Bari v. National
Bank (2005 SCMR 100). In the latter case, the Bank had terminated
the services of daily wages employees on the ground that although the
employees were appointed by the Bank, yet their salaries were being
C.A. 468 of 2010 etc.
12
paid by the borrowers/loanees. However, the termination orders were
set aside by this Court, inter alia, holding as under: -
(1)
The fact that the wages of the employees were debited to
the borrower’s account would make no difference since for
all practical purposes and legal consequences they were
placed under the administrative control of the Bank;
(2)
Islamic welfare state is under an obligation to establish a
society, which is free from exploitation wherein social and
economic justice is guaranteed as envisaged by Article 2A
of the Constitution; and
(3)
Under Article 38 of the Constitution, State is obliged to
secure the well being of the people by raising their
standards of living and by ensuring equitable adjustment
of rights between employer and employees while Article 3
requires the State to ensure elimination of all forms of
exploitation, therefore, the approach of the Bank that
temporary Godown staff and daily wages employees
should be continued to be governed on disgraceful terms
and conditions of service for indefinite period could not be
countenanced.
According to the learned counsel, the other case, which lay at the
foundation of Muhammad Zahid’s case was Muhammad Asam v. PTCL
[1997 PLC (CS) 1131] wherein it was laid down that whoever
completed 183 days including artificial breaks shall be permanent
workman. The claim of the PTCL was that the Foundation was the
employer whereas the claim of the employees was that as they worked
for, at the premises, and under the administrative control, of the PTCL,
therefore, they were the employees of the PTCL. The question as to
who was the employer, whether PTCL or the Foundation could not be
agitated before the Labour Court where a worker could just file a
grievance petition against the employer, therefore, the claim and the
conduct of the PTCL being in violation of the definition of workman,
C.A. 468 of 2010 etc.
13
such a question could only be settled in writ jurisdiction of the High
Court. The impugned termination orders were void, therefore, the
same were rightly challenged before the High Court in its writ
jurisdiction. Reference was made to Nazir Ahmed Panhwar v. Govt. of
Sindh [2009 PLC (CS) 161] and Municipal Committee, Arifwala v.
Muhammad Ramzan (2005 SCMR 1721) for the proposition that in case
of violation of the principles of natural justice, writ petition was
competent even in a case involving contractual obligation, and to the
case of Sharifan Begum v. Abdul Aziz (PLD 1975 SC 475) for the
proposition that in case of violation of Article 25 of the Constitution,
resort could only be made to the remedy provided by the Constitution.
14.
The learned counsel also submitted that the liability
imposed upon the employer under the Industrial & Commercial
Employment Standing Order of confirming the employees after 183
days’ service including artificial breaks could not be defeated by
contract as held by this Court in Pakistan International Airlines v.
Sindh Labour Court No.5 (PLD 1980 SC 323) and Ikram Bari (supra).
15.
Mr. Nazir Ahmed Bhutta, ASC for the appellants in C.A. No.
883 to 892 of 2010 submitted that the appellants-employees were
actually appointed in Pakistan Telegraph and Telephone Department in
the year 1992, the predecessor of the PTC. They were imparted
prescribed departmental training/courses, which they successfully
completed. On promulgation of the Act of 1991, they were transferred
to the PTC on the same terms and conditions as they were entitled in
the T&T Department as its employees in the light of the provisions of
section 9 of the Act of 1991 and subsequently on promulgation of the
Pakistan Telecommunication (Re-organization) Act, 1996 [hereinafter
referred to as the Act of 1996], the terms and conditions of the
C.A. 468 of 2010 etc.
14
transferred employees were protected under section 35(2) and section
36(1) & (2) of the latter Act. However, suddenly the appellants and
their other colleagues were terminated from service. Such termination
orders were challenged by some of the employees before the Federal
Service Tribunal, which were set aside and the employees reinstated in
service with back benefits vide judgment reported as Ch. Muhammad
Ashraf v. State Life Insurance [2002 PLC (CS) 948]. The benefit of said
judgment was extended to another lot of employees who had not
challenged their termination at the initial stage in the light of the law
laid down in Hameed Akhtar Niazi v. Secretary, Establishment Division
Government of Pakistan (1996 SCMR 1185). Similarly, the High Court
of Sindh at Hyderabad vide order dated 28.04.2004 passed in
Constitution Petition No. D-283 of 2003 allowed the request of some
employees directing the respondents to give equal treatment to the
petitioners. The said order was upheld by the Supreme Court vide
order dated 26.09.2005 passed in CPLA No. 471-K of 2004. The
appellants-employees
were
denied
such
benefit
and
were
discriminated, therefore, they approached the High Court by means of
Constitution
Petition,
which
was
dismissed
by
the impugned
consolidated
judgment
dated
03.06.2010.
The
said
impugned
judgment was in conflict with the judgment dated 04.04.2003 passed
by the said High Court in C.P. D-2301 and 2410 of 2001, order dated
16.05.2005, which had already been implemented by the PTCL
Management, judgment of that High Court reported as 2007 PLC (CS)
174, reinstatement of employees by the PTCL vide orders dated
20.11.2001 and 06.08.2002, and judgment of the Lahore High Court
passed in W.P. No. 1444 of 2001 against which appeal was dismissed
by the Supreme Court in Muhammad Zahid’s case.
C.A. 468 of 2010 etc.
15
16.
The employees-respondents in C.A. No. 468 of 2010
submitted that six Teleprinter Operators of defunct Central Telegraph
Office, Hyderabad, Sindh, namely, Allah Bux, Muhammad Akram,
Ateequddin, Iqbal Nasir, Muhammad Naqi Butt and Izharuddin Alvi had
given their option under VSS and were retired, out of whom first three
were granted pensionary benefits whereas the latter three, i.e.,
respondents No. 1 to 3 in C.A. No. 468 of 2010, were deprived of the
pensionary benefits by ignoring the intervening period between
appointment and training, though they were appointed after qualifying
the recruitment examination, had been regularized by the competent
authority from the date of ad hoc appointment, had put in continuous
service of 26, 24 and 24 years respectively, were senior to their above
mentioned colleagues who were granted the similar benefit, and were
qualified to avail the pensionary benefits under the said scheme,
having served for more than 20 years. One Mrs. Rubina Khadim was
also extended the benefit of VSS counting her service from the date of
appointment as against the date of completion of training. They relied
upon Muhammad Zahid’s case and prayed for equal treatment.
17.
Malik M. Rafique Rajwana, ASC for the respondents No. 1
to 20 in C.A. No. 852 of 2010 raised a preliminary objection that the
appeal was not maintainable as the appellant had failed to avail the
remedy of intra-Court appeal before a Division Bench of the High Court
as provided in section 3(2) of the Law Reforms Ordinance, 1972 and
the judgment reported as PIAC v. Samina Masood (PLD 2005 SC 831).
He further submitted that the judgment dated 05.05.2010 was not
being implemented by the appellants, therefore, the respondents filed
contempt petitions in which General Manager PTCL, Islamabad
appeared and made a statement that in case no stay order had been
C.A. 468 of 2010 etc.
16
granted by the Supreme Court, they would be implementing the
judgment dated 23.09.2010. Consequently, they issued letters of
implementation/appointment in BPS and the respondents accordingly
had joined the PTCL and were posted in different units and were
performing their respective duties. Therefore, the appeal had become
infructuous.
18.
The learned counsel further submitted that W.P. No. 5122
of 2004 was disposed of by the Lahore High Court, Multan Bench after
the PTCL had given the assurance/undertaking in the following terms:-
“Learned counsel for the respondent, with reference to the
comments
filed
by
the
respondents,
states
that
apprehension expressed in the writ petition are rather
unfounded, inasmuch as the respondents are taking steps
to adjust all the daily wages employees, however, number
of employees is large and process initiated will take some
time. He, however, ensures that no steps will be taken
discriminatory regarding the petitioners.
2.
In view of the said statement of the learned counsel
for the respondents, grievances stand redressed at the
moment and the writ petition is accordingly disposed of.”
Subsequently, in W.P. No. 5325 filed before the same High Court, the
following order was passed: -
“Learned counsel contends that the petitioners are old
employees and their cases were being actively considered
for regularization and in fact an assurance had been given
to this Court as well earlier in W.P. No. 5122 of 2004. The
contention is that in the garb of the impugned letter
(Annex-M), in fact services of the petitioners were sought
to be terminated and they were not being allowed to work.
Subject to notice for an early date, no interference with
the performance of the duties of the petitioners.”
C.A. 468 of 2010 etc.
17
The learned counsel submitted that the PTCL having accepted the
version of the respondents could not be permitted to blow hot and cold
in the same breath and to violate their own undertaking, which had
also been implemented. He stated that the PTCL had framed
policy/criteria for adjustment/regularization of the daily wages
employees converted to Telecom Foundation, namely, age not more
than 50 years on 30.06.2005; minimum one month pay drawn as daily
wages employee before conversion to Telecom Foundation; and daily
wages employees who had entered PTCL up to 31.12.2001. The said
policy was duly pleaded by the PTCL in W.P. No. 5325 of 2006 and
W.P. No. 6143 of 2009 stating therein that the entire exercise
regarding regularization of the said employees was being done in good
faith to accommodate the left over daily wages employees.
19.
The
learned
counsel
vehemently
argued
that
the
respondents were being discriminated in violation of the provisions of
Articles 2A, 4 and 25 of the Constitution, as against the other
operators performing services permanently with the PTCL or having
been regularized in due course as operators etc., in the International
Gateway Exchange performing similar functions. The learned counsel
submitted that the respondents employed on daily wages were not
regularized despite having rendered service for a period of more than
two years as contract employees renewed from time to time while
various other daily wages employees who were junior to them
described in ground (b) of W.P. No. 6143 of 2009 allowed vide order
dated 05.05.2010, the subject-matter of C.A. No. 852 of 2010, were
regularized. He submitted that the contention of the appellants that
the respondents being the employees of the Telecom Foundation,
which is an industrial establishment were workmen as defined under
C.A. 468 of 2010 etc.
18
the IRO and the W.P. Industrial and Commercial Employment
(Standing Orders) Ordinance, 1968 was held not relevant in
Muhammad Zahid’s case for the purpose of redressal of grievance of
the respondent-employees pertaining to discrimination, which could
hardly be dealt with under the labour laws.
20.
The learned counsel further submitted that the question of
invoking of jurisdiction of High Court under Article 199 of the
Constitution by the employees of the PTCL was dealt with at great
length in Muhammad Zahid’s case wherein the entire legislative history
beginning with Telegraph Act, 1885 up to the Act of 1996 and the
relevant case law on the subject were minutely examined and the
controversy was set at rest once for all, by inter alia, holding as
under:-
(1)
The Telecommunication undisputedly is the subject which
pertains to one of the important affairs of the Federation
dischargeable now through the PTCL; hence such entity
involved in the same exercise of the sovereign powers,
essentially falls within the context of ‘person’ as defined in
clause (5) of the Article 199 of the Constitution, therefore,
for the above reasons the grievance of the private
respondents was amenable to the writ jurisdiction of the
High Court.
(2)
The claim of the appellants that the private respondents
are the employees of the Foundation which is an ‘industrial
establishment’ and are ‘workmen’ as defined in the
relevant provisions of the I.R.O., 2002 and as given in the
West Pakistan Industrial and Commercial Employment
(Standing Orders) Ordinance, 1968 in view of the above
discussion, relating to the issuance of the writ by the High
Court, seems to us not relevant to be dilated upon nor for
the redressal of their grievance made in the writ petition
which
substantially
pertains
to
the
contention
of
C.A. 468 of 2010 etc.
19
discrimination, can hardly be dealt with under the Labour
Laws. Undisputedly, the crux of the case of the private
respondents has been that they are being discriminated as
against
the
other
Operators
performing
service
permanently with the PTCL or having been regularized in
due course as Operators in the International Gateway
Exchange performing similar functions in the Exchange
apparently amounts to have been grossly violated as
against the guaranteed rights under Articles 2A, 4, and 25
of the Constitution by depriving them of their emoluments
besides all other service benefits etc., described in
paragraph No.2 of the writ petition being paid to other
Operators performing service in the said Exchange and
similarly placed and, therefore, discriminatory treatment
has been meted out to the writ petitioners employed on
daily wages and not regularized despite having rendered
service for a period of more than 2 years as contract
employees renewed from time to time mentioned in Para.
No.16 (supra), therefore, the impugned judgment is
unexceptionable irrespective of the status of the private
respondents be that of a ‘worker’ or a ‘civil servant’ or the
‘contact employee’ having no nexus to the maintainability
of the writ petition on the ground of discrimination meted
out to them.
21.
We have heard the learned counsel for the parties and
have gone through the impugned judgments as also the case-law cited
at the bar in support of the respective contentions.
22.
The question whether the PTCL was a ‘person’ performing
functions in connection with the affairs of the Federation within the
contemplation of Article 199(5) of the Constitution was first dilated
upon by this Court at great length in Muhammad Zahid’s case in which
the plethora of case law was gone into and it was held that the
employees of the erstwhile T&T Department transferred to the
Corporation [PTC] under the relevant provisions of the Act of 1991
C.A. 468 of 2010 etc.
20
and later on succeeded by the PTCL, discharging their functions and
duties in the International Gateway Exchange as Operators were
inducted permanently or regularized subsequently under the rules
necessarily related to one of the affairs of the Federation within the
purview of provisions of Article 199 of the Constitution; hence
similar duties and functions in the International Gateway Exchange
being discharged by the private respondents as Operators could not
be distinguished to say that the same did not relate to the affairs of
the Federation though conferred upon the Corporation [PTC], and
finally
upon
the
PTCL.
It
was
further
held
that
the
Telecommunication undisputedly was the subject which pertained to
one of the important affairs of the Federation dischargeable now
through the PTCL; hence such entity involved in the same exercise of
the sovereign powers, essentially fell within the connotations of the
word `person' as defined in clause (5) of the Article 199 of the
Constitution; accordingly, the grievance of the private respondents
was amenable to the writ jurisdiction of the High Court. However, it
was observed that the status of the private respondents, be that of a
‘worker’ or a ‘civil servant’ or a ‘contact employee’ had no nexus to the
maintainability of the writ petition on the ground of discrimination
meted out to them.
23.
It may also be added here that as rightly held by a learned
Division Bench of the High Court of Sindh in the judgment impugned in
C.A. No. 883 of 2010 that the Federal Government had first sold 12%
shares through public subscription and then it sold 26% [all of B class
shares] to the EIP and the remaining 62% shares of PTCL were still
owned by the Federal Government and as long as the Government
owned majority shares in said entity either in its own name, or
C.A. 468 of 2010 etc.
21
whether wholly or partially in the name of any other organization or
entity controlled by the Government, PTCL was and should continue to
be amenable to the jurisdiction of the High Court under Article 199 of
the Constitution. In this view of the matter, the argument that the
PTCL was not a person within the meaning of Article 199(5) of the
Constitution is not tenable.
24.
However, this Court, in the case of Principal Cadet Collage
Kohat v. Mohammad Shoaib Qureshi (PLD 1984 SC 170), while dealing
with the question, as to whether in absence of any breach of statutory
provision the employees of a corporation can maintain an action for
reinstatement, held that where the conditions of service of an
employee of a statutory body were governed by statutory rules, any
action prejudicial taken against him in derogation or in violation of the
said rules could be set aside by a writ petition; however, where his
terms and conditions were not governed by statutory rules but only by
regulations, instructions or directions, which the institution or body, in
which he was employed, had issued for its internal use, any violation
thereof would not, normally, be enforced through a writ petition.
Recently, this Court in Tanweer-ur-Rehman’s case (supra), while
dealing with the issue of invoking of jurisdiction of the High Court
under Article 199 of the Constitution by the employees of the PIAC,
held that although the appellant-Corporation was performing functions
in connection with the affairs of the Federation, but since the services
of the respondent-employees were governed by the contracts
executed by them with the employer, and not by the statutory rules
framed under section 30 of the Pakistan International Airlines
Corporation Act, 1956 with the prior approval of the Federal
Government, therefore, they would be governed by the principle of
C.A. 468 of 2010 etc.
22
‘Master and Servant’. On the question whether in absence of any
breach of statutory provision, the employees of appellant-Corporation
could maintain an action for reinstatement etc., it was observed that
the said question needed no further discussion in view of the fact that
this Court was not of the opinion that if a Corporation was performing
its functions in connection with the affairs of the Federation, the
aggrieved persons could approach the High Court by invoking its
constitutional jurisdiction. But as far as the cases of the employees
regarding their individual grievances were concerned, it was held that
they were to be decided on their own merits, namely, if any adverse
action was taken by the employer in violation of the statutory rules,
only then such action would be amenable to the writ jurisdiction.
Therefore, in absence of statutory rules, the principle of ‘Master and
Servant’ would be applicable and such employees would be entitled to
seek remedy permissible before the Court of competent jurisdiction.
Similarly, in M.Tufail Hashmi (supra), after discussing the aforesaid
two judgments in detail, it was held that the employees of those
organizations, which were performing functions in connection with the
affairs of Federation, were eligible to approach the High Court
under Article 199 of the Constitution if their services were governed
by statutory rules. It was further held that since the employees of
AIOU, SME Bank and Pakistan Steel Mills, who approached the Service
Tribunal for redressal of their grievances, were not enjoying the
protection of statutory rules, therefore, the Service Tribunal had no
jurisdiction to adjudicate upon such matters and they would be
governed by the principle of ‘Master and Servant’.
25.
The learned counsel for the respondents though placed on
record a copy of the Pakistan Telecommunication Corporation Service
C.A. 468 of 2010 etc.
23
Regulations, 1996 framed under section 20 of the Act of 1991, but
failed to show whether the said Regulations were duly notified in the
official gazette. However, even if such Regulations were duly made,
they were not holding the field after the repeal of the Act of 1991
under which the said Regulations were made. Further, as per
Regulation 1.02 thereof, the said Regulations would not apply to a
person employed on contract or on work-charged basis or who is paid
from contingencies. They would be governed by the principle of
‘Master and Servant’. Applying the principles of law enunciated in the
above cited judgments to the case in hand, in absence of statutory
rules, writ petitions filed by the employees of the PTCL were not
maintainable.
26.
The argument of the learned counsel that the respondents
were the employees of the PTCL from the date of appointment, regular
after 183 days of service and entitled to same wages as were being
paid to regular employees of the PTCL is untenable. It may be
observed that as provided in clause (g) of Order 1 of the Schedule to
the W.P. (Standing Orders) Ordinance, 1968, a contract worker is a
workman who works on contract basis for a specific period of
remuneration to be calculated on piece rate basis, while clause (b) of
Order 1 of the Schedule to the W.P. (Standing Orders) Ordinance,
1968, provides that a ‘permanent’ workman is a workman who has
been engaged on work of permanent basis likely to last more than
nine months and has satisfactorily completed a probationary period of
three months in the same or another occupation in the industrial or
commercial establishment, including breaks due to sickness, accident,
leave, lock-out, strike (not being an illegal lock-out or strike) or
involuntary closure of the establishment, and includes a badli who has
C.A. 468 of 2010 etc.
24
been employed for a continuous period of three months or for one
hundred and eighty-three days during any period of twelve
consecutive months. In this view of the matter, an aggrieved person
falling within the definition of workman would be well within his rights
to seek remedy at the appropriate forum as provided in Order 12 of
the Schedule referred to above. However, as held in PIAC v. Sindh
Labour Court No.5 (PLD 1980 SC 323), the respondents had been
employed, not on permanent basis, but on contract and would be
governed by the provisions of the contract of service. The nature of
employment of the respondents can be easily understood from a
perusal of a contract of service entered by Muhammad Idrees Khan,
respondent No. 1 in C.A. No. 474 of 2010 with the Telecom
Foundation, which, inter alia, provides as under: -
“TELECOM FOUNDATION
SHORT TERM CONTRACT
Mr. Muhammad Idrees Khan s/o Haji Chamnay Khan is hereby
contracted in Telecom Foundation as Cable Guard with effect from
_______ at the rate of Rs.153/- per day (Rs.4600/- per month). He is
directed to report to A.E. O.F.C. (PTCL) Peshawar for further
deployment as and where required by them on the following terms and
conditions: -
1.
PERIOD OF CONTRACT
Service shall be on contract for a period of Eighty Nine
(89) days.
………………………………………………………………………………………………………
9.
TERMINATION OF CONTRACT
This contract shall be liable to termination any time
without notice even on account of ______ political
activities, trade unions and due to misconduct and
unsatisfactory service.
Manager (M&T)
Telecom Foundation
I, Muhammad Idrees Khan s/o Chamnay Khan resident of
Village Bab-e-Jadeed P.O. Taru Jabba Tehsil & District Nowshera, have
C.A. 468 of 2010 etc.
25
carefully read the above instructions and agree to the terms and
conditions for the employment as Cable Guard on contract basis.”
All the employees having entered into contracts of service on the same
or similar terms and conditions have no vested right to seek
regularization of their employment, which is discretionary with the
master. The master is well within his rights to retain or dispense with
the services of an employee on the basis of satisfactory or otherwise
performance. The contract employees have no right to invoke writ
jurisdiction, particularly in the instant case where their services have
been terminated on completion of period of contract. Since they fall
within the definition of workman, they would be entitled to one
month’s notice or salary in lieu thereof, as permissible to them under
the rule of master and servant.
27.
As to the contention of Mr. Qamar Afzal, ASC that the
respondent-employees had been discriminated in terms of Article 25 of
the Constitution, suffice it to say that in the light of the law laid down
in I.A. Sharwani v. Government of Pakistan (1991 SCMR 1041),
reasonable classification is permissible. The private respondents in
Muhammad Zahid’s case were already in service whereas the private
respondents herein were working with the PTCL either on contract or
on daily wages basis, therefore, the rule of ‘Master and Servant’ would
be applicable. In this view of the matter, Article 25 is not attracted in
the present case.
28.
The cases of Engineer Naraindas v. Federation of Pakistan
(2002 SCMR 82) and Ikram Bari v. National Bank of Pakistan through
President (2005 SCMR 100) stand on a different factual matrix,
inasmuch as the services of temporary employees (godown staff, daily
wagers, etc.) were terminated whereas in the instant case the
C.A. 468 of 2010 etc.
26
employees were working with the PTCL under contracts of service.
Even otherwise, the said case had arisen out of a judgment of the
Federal Service Tribunal.
29.
As to the case of the employees seeking the benefit of
VSS, no relief could be granted to them by the High Court in view of
the non-maintainability of their writ petitions on the ground that their
services were not governed by any statutory rules and even the VSS
was not offered under, or in terms of, any statutory provisions.
30.
In the light of the above, the case of Muhammad Zahid in
which relief was granted on the ground of discrimination irrespective of
the status of the employees, be that of a worker, or a civil servant or a
contract employee could not be relied upon in the instant case.
31.
As regards the objection regarding non-filing of Intra-Court
Appeals before filing the petitions for leave to appeal in the instant
cases taken by the learned counsel for the respondents-employees,
suffice it to say that though a similar view was taken in some of the
cases, namely, Imtiaz Ali Malik v. Mst. Surrya Begun (1979 SCMR 22),
Pakistan International Airlines Corporation v. Samina Masood (PLD
2005 SC 831) and Accountant General for Pakistan (Revenue)
through Auditor-General v. Zia Mohy-ud-Din (PLD 2008 SC 164), but
in a number of cases, such as, Mst. Shohrat Bano v. Ismail Dada
Adam Soomar (1968 SCMR 574), Punjab Employees Social Security
Institution Lahore and others v. Manzoor Hussain Khan (1992 SCMR
441), Province of Punjab through Secretary Excise and Taxation,
Government of Punjab v. Sargodha Textile Mills Ltd., Sargodha (PLD
2005 SC 988) and Commissioner of Income Tax v. Messrs Media
Network (PLD 2006 SC 787), this Court has held that requiring of filing
ICA is a rule of practice for regulating the exercise of discretion which
C.A. 468 of 2010 etc.
27
does not oust or abridge the constitutional jurisdiction of this Court
and in certain exceptional circumstances this Court can entertain
petitions, or as the case may be, direct appeals even where the
remedy of ICA under section 3 of the Law Reforms Ordinance, 1973
has not been availed by a party. We may observe that in the first
instance no such objection was taken at any earlier stage of the
proceedings. Further, some of the appellants-employees have also
directly approached this Court against the impugned judgments
passed by a learned Single Judge of the High Court. Therefore, it
would not be appropriate to examine the question at this stage, in
view of the peculiar facts and circumstances of these cases.
32.
As far as the non-implementation of the order is
concerned, it may be observed that if an order is bad or cannot be
implemented, it would make no difference.
33.
Writ petitions, which are the subject matter of Civil
Appeals No. 883 to 892 of 2010 also suffered from laches, hence the
same were not maintainable on that score as well.
34.
As a result of the above discussion, the appeals filed by
the PTCL are allowed and the judgments/orders impugned therein are
set-aside while the appeals filed by the employees are dismissed.
CHIEF JUSTICE
JUDGE
JUDGE
Announced on ____ day of December, 2010
At Islamabad.
CHIEF JUSTICE
APPROVED FOR REPORTING
| {
"id": "C.A.468_2010.pdf",
"url": ""
} |
IN THE SUPREME COURT OF PAKISTAN
(Appellate Jurisdiction)
PRESENT:
Mr. Justice Jawwad S. Khawaja
Mr. Justice Mushir Alam
Mr. Justice Dost Muhammad Khan
Civil Appeal No.482/2014
(On appeal from the judgment dated 30.9.2013 passed
by the High Court of Balochistan, Quetta in C.P.No.265/2012).
1.
Mst. Shahista Bibi
2.
Abdul Qayyum
…Appellants
VERSUS
1.
The Supdt. Central Jail
2.
I.G. (Prisons) Balochistan, Quetta
3.
The Secretary, Home & Tribal Affairs Deptt.
Govt. of Balochistan, Quetta.
…Respondents
For the appellants:
Malik Asmatullah Kasi, ASC
For the respondents:
Mr. Iqbal Khattak, APG
Date of hearing:
19.9.2014
JUDGMENT
Dost Muhammad Khan, J. – Leave to appeal was
granted to the appellants namely (i) Mst. Shahista Bibi (widow) of
Allah Dad and (ii) Abdul Qayyum son of Allah Dad (Late), presently
confined in Central Jail Mach.
2.
The order, granting leave dated 24.03.2014, speaks
that keeping in view the principles laid down by this Court in the
cases of Shah Hussain vs. State (PLD 2009 SC 460) and Hassan v.
State (PLD 2013 SC 793), the case of the appellants needs
consideration.
3.
As the appellants have not questioned their conviction
and sentences awarded to them by the trial Court, affirmed by the
High Court of Balochistan, Quetta and confirmed by this Court by
dismissing their appeal on merits, but in this appeal the appellants
have sought the relief of section 35 read with S. 397 Cr.P.C.
4.
Relevant but brief facts sufficient for disposal of this
appeal are that appellant No.2 was booked in the following crimes,
by PS City Quetta:-
C.A. 482/14
2
(i)
In case FIR No. 16/1987 Quetta U/Ss 3, 4, 5 & 6
of
the Explosive Substances Act, 1908
R/W Ss. 120-
B/436/307/34 PPC;
(ii)
In case FIR No.17/1987, U/Ss 3, 4, 5, & 6 of the
Explosive Substances
Act, 1908 R/W Ss.
436,
302, 307/34 PPC,
(iii)
In case FIR No. 26/198, U/Ss 4 & 5 of the
Explosives Substances Act, and
(iv)
In case FIR No.27/1987 U/Ss 4 & 5 of the Explosive
Substances Act, 1908.
In each of the four cases, appellant No.2 was awarded death
sentence U/S 3/6 of the Explosive Substances Act, 1908 and U/S
302 PPC, while for the rest of the offences, he was awarded 25
years R.I with fine and 7 years R.I. with fine on four counts.
However, the learned Judge of the Special Court did not direct that
all the sentences of imprisonment shall run concurrently according
to the scheme provided in section 35 Cr.P.C. Now when the death
sentences have been commuted to life imprisonment, the same
definitely exceed the human life, the average of which is upto 70/75
years at the most in Pakistan. In the first round, this Court also
dismissed all the four appeals of appellant No.2, however, the death
sentence in case FIR No. 16/1987 and FIR No.17/1987 was altered
to life imprisonment by the Government of Pakistan.
5.
On December 22, 2005 a letter was addressed to the
Registrar of this Court by the Regional Director of Human Rights
Commission of Balochistan that the sentences of imprisonment
awarded, would never expire in his life time and the matter be
brought to the notice of the Hon’ble Chief Justice of Pakistan.
6.
After calculation of various sentences of imprisonment
per jail record, the release of the appellant was cited as
19.05.2273. However, after hearing the arguments this Court vide
order dated October 17, 2011 dismissed CMA No.28(Q) of 2006
along with Human Rights Case No.3078/2006 and Civil Petition
No.1393/2010.
7.
With considerable vehemence the learned counsel,
while relying on the principle laid down in the case of Shah Hussain
(ibid) and that of Hassan and others (aforementioned), urged that
after spending many years in Death-Cell, the sentence/sentences
given
to
the
appellant/appellants
were
commuted
by
the
C.A. 482/14
3
Government of Pakistan to life imprisonment, therefore, the
expectancy of life has become a strong phenomenon to attract the
beneficial and fair interpretation of this Court in the above two
reported judgments to their case.
It is by now well embedded and deeply entrenched universal
principle of law that while interpreting the provision of punitive law,
Courts are required to strive in search of an interpretation, which
prefer the liberty of a person instead of curtailing the same and that
too unreasonably and unfairly unless, the statutory law clearly
directs otherwise.
8.
Besides the provisions of section 35 Cr.P.C. the
provisions of section 397 Cr.P.C. altogether provide entirely a
different proposition widening the scope of discretion of the Court to
direct that sentences of imprisonment or that of life imprisonment
awarded at the same trial or at two different trials but successively,
shall run concurrently. Once the Legislation has conferred the above
discretion in the Court then in hardship cases, Courts are required
to seriously take into consideration the same to the benefit of the
accused so that to minimize and liquidate the hardship treatment,
the accused person is to get and to liquidate the same as far as
possible. In a situation like the present one, the Court of law cannot
fold up its hands to deny the benefit of the said beneficial provision
to an accused person because denial in such a case would amount
to a ruthless treatment to him/her and he/she would certainly die
while undergoing such long imprisonment in prison. Thus, the
benefit conferred upon the appellant/appellants through amnesty
given by the Government, if the benefit of directing the sentences
to run concurrently is denied to him/them, would brought at naught
and ultimately the object of the same would be squarely defeated
and that too, under the circumstances when the provision of S. 397
Cr.P.C. confers wide discretion on the Court and unfettered one to
extend such benefit to the accused in a case of peculiar nature like
the present one. Thus, construing the beneficial provision in favour
of the accused would clearly meet the ends of justice and
interpreting the same to the contrary would certainly defeat the
same.
C.A. 482/14
4
9.
It
is
also
hard
and
fast
principle
relating
to
interpretation of criminal law, which curtails the liberty of a person
that it should be construed very strictly and even if two equal
interpretations are possible then the favourable to the accused and
his liberty must be adopted and preferred upon the contrary one.
10.
In the cases of Khan Zaman v. The State (1987 SCMR
1382), Juma Khan v. The State (1986 SCMR 1573) and Muhammad
Ittafaq v. The State (1986 SCMR 1627) similar benefit was given to
the accused while construing the provision of section 35(2) Cr.P.C.
11.
The Peshawar High Court widened this scope on sound
reasons in the case of Altaf Hussain v. The State [PLJ 1987 Cr.C
(Peshawar)437] extending the same benefit to an accused, who
was already undergoing life imprisonment, awarded by the Special
Military Court and directed that subsequent sentence of 5 years R.I.
awarded by the Judge Special Court Anti-Corruption shall run
concurrently with the life imprisonment.
12.
In this case, the appellants have already undergone all
the sentences, so awarded and according to the calculation chart,
provided in the petition, the total period of imprisonment comes to
214 years and the total amount of fine imposed is Rs.17,20000/- or
in default thereof to undergo imprisonment for a further period of
11½ years R.I. It was argued at the bar that after getting benefit
of section 382-B Cr.P.C and various remissions, granted by the
Federal, Provincial Governments and the Jail Authorities, the
appellant/appellants have undergone sentence of 42 years 07
month and 21 days on the date, the petition for leave to appeal was
instituted and the unexpired portion of sentence yet to undergo by
the appellant/appellants comes to 171 years 04 months and 09
days. In our view, surely and without any fear of rebuttal, the
above facts make out the case of detestable hardship, which in no
circumstances, shall go unnoticed like in the past. Thus, a strong
case has been made out to extend the prayed concession to the
appellant/appellants.
13.
The plea of the learned counsel for the State that
previously the review petition of the appellant was dismissed,
therefore, it should be construed as a bar to entertain a second
review petition being barred by law, is misconceived one.
C.A. 482/14
5
We have attended to this plea but it is hardly entertainable
being bereft of legal grounds and is based on erroneous reasons of
the law and the rules on the subject because the previous review
petition was with regard to the commutation of sentence from
death to life. Even otherwise, for doing substantial justice in a true
sense in hardship cases like the present one, technicality of law and
rule shall not operate as an absolute bar in the way of the Court
because giving preference to the technicality of law would defeat
substantial justice and denial of justice to a person entitled to it,
would be worst kind of treatment to be meted out to him and that
too by the apex Court of the country.
14.
If the sentences are allowed to run consecutively, the
appellant/appellants, as earlier discussed, would meet natural death
during the imprisonment. This undeniable fact was even not
disputed by the learned counsel for the State. The very object, for
which the Government of Pakistan commuted the sentences of
death to life imprisonment and the benefit so accrued to the
accused would be denied to him/them in this way and that
concession, thus given, would stand nowhere and may evaporate
within no time like air bubbles vanish in the air within a twinkle of
an eye.
15.
Accordingly, this appeal is allowed and it is directed that
all the sentences awarded to the appellant/appellants shall run and
shall
be
deemed
to
have
run
concurrently,
besides
the
appellant/appellants shall have also to get the benefit of section
382-B Cr.P.C and all the remissions whether granted by the
Federal, Provincial Governments or the Jail Authorities, shall be
extended to them.
Appeal is allowed.
Judge
Judge
Judge
Islamabad, the
19th September, 2014
‘Nisar’
Approved For Reporting
| {
"id": "C.A.482_2014.pdf",
"url": ""
} |