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HABIB BANK LTD versus ZAFAR ALI


Sections 6 (21 (a) and 2 (f) [as amended by the Banking Companies (Recovery of Loans) (Amendment Ordinance (11 of 1983)]) jurisdiction of courts before and after the 1983 Amendment Cases relating to money laundering Before the amendment of 1983, the District Judge's Court had a trial of more than one lakh rupees, however, cases related to loans up to Rs one lakh, forming federal government cases. There will be a trial by a special court which is more than Rs. However, the High Court will prosecute a million people in its original civil jurisdiction.

P L D 1986 Lahore 42

Before Khizar Hayat, J

HABIB BANK LTD.‑Petitioner

versus

ZAFAR ALI‑Respondent

Civil Miscellaneous Nos. 667/T and 668‑T of 1.985/BWP, decided on 6th November, 1985. .

(a) Banking Companies (Recovery of Loans) Ordinance (XIX of 1979)---

‑‑ Ss. 6(21 (a) & 2(f ) [as amended by Banking Companies (Recovery of Loans) (Amendment) Ordinance (11 of 1983)]‑Jurisdiction of Courts before and subsequent to amendment 11 of 1983‑Cases involving amount of loan not exceeding Rupees one lac were triable by Court of District Judge prior to amendment‑Subsequent to Amendment 11 of 1983, however, cases involving, loans up to Rupees one lac; held, would be tried by Special Court constituted by Federal Government‑Cases involving beyond Rupees one million would however, be tried by High Court in its original Civil jurisdiction.‑[Jurisdiction].

(d) Precedent‑‑

‑‑ High Court Judge while sitting singly, held, was bound to follow dictum laid down by Division Bench of his own High Court in preference to dictum laid down by another High Court Bench.

Mrs. Yasmeen Nighat v. National Bank of Pakistan P L D 1984 Pesh. 188 and National Bank of Pakistan v. Taj Muhammad P L D 1984 Lah. 417 ref.

(c) Banking Companies (Recovery of Irons) (Amendment) Ordinance (II of 1983)--

‑‑Preamble‑Amendment pertaining to change of forum‑Effect -Despite Amending Ordinance II of 1983, legal position with regard to pending cases. held, remained unchanged‑Request to transfer of case from Additional District Judge to Special Court Banking, declined.

Mrs. Yasmeen Nighat v. National Bank of Pakistan P L D 1984 Pesh. 188 ref.

National Bank of Pakistan v. Taj Muhammad P L D 1984 Lah. 417 fol.

Shamshir Iqbal Chaughtai for Petitioner.

Qazi Muhammad Nazir for Respondent.

ORDER

This order shall dispose of the two Transfer Applications (C: M. Nos. 668‑T‑85 and 667‑T‑85) moved by the petitioner banking company as common question of law is involved in these petitions.

2. On 6‑1‑1979 the petitioner banking company filed two separate suits, one against Muhammad Ali Khan (respondent in C. M. No. 668‑T‑85) for the recovery of Rs. 12,065 and the other against War Ali Khan (respondent in C. M. No. 667‑T‑85) for the recovery of Rs. 45,638 which are pending trial to the Court of Syed Muhammad Mumtaz Hussain Gilani, Additional District Judge, Rahimyar Khan as the amount of loan did not exceed Rupees one lac, hence jurisdiction to try these suits at the time of their institution vested in that Court as provided by section 6 (2)(a) of Banking Companies Recovery of Loans Ordinance XIX of 1979.

3. It so happened that Banking Companies (Recovery of Loans) (Amendment) Ordinance 11 of 1963 was promulgated on 30‑1‑1983 where under section 6 (2) (a) was omitted and section 2 (f ) was substituted so as to make cases involving loan up to rupees one lac, triable by the special Courts constituted by the Federal Government and beyond rupees one trillion by the High Court in its original civil jurisdiction. In view of this change in the statute, petitioner Banking Company requested the. Addi tional District Judge, Rahimyar Khan, to transfer aforesaid two suits to the Court of Special Judge, Banking. This request was not acceded to, there fore, these transfer applications have been moved.

4. I have heard learned counsel for the petitioner as well as for the respondents.

5. The question which falls for determination before me is that whether the amendment brought in through Ordinance II of 1983 pertain ing to the change of forum has retrospective effect and applies to the cases pending prior to coming into force of the amendment. Learned counsel appearing on behalf of the petitioner has relied on Mrs. Yasmeen Nighat v. National Bank of Pakistan (P L D 1984 Pesh. 188), wherein it has been held that since Ordi nance IL of 1983 has brought in procedural amendment therefore, it is retrospective in effect. On the other hand, learned counsel for the respon dents relying on a Division Bench authority of this Court reported as National Bank of Pakistan v. Taj Muhammad (P L.D 1984 Lah. 417) canvassed that the amendment in question has prospective effect because if retrospective effect is given to it then litigant public shall face inconvenience and frustration for the transferee Courts bring already over‑worked would not be able to dispose them of soon. He emphasized the observation made in the aforesaid judg ment at page 420 which reads :‑

"If the said amendment which has transferred jurisdiction over suits for recovery of bank loans for a sum of a lac or less than one lac of rupees is considered to be retrospective in effect, then all cases regarding recovery or loans up to one lac of rupees would have to be taken away from the civil Courts and sent either to Special Court so notified or in the absence of any notification, to the District Court of each District, If that happens the Special Court or District Courts would get flooded with spate of cases and already overworked as they are, they would not be able to effect speedy disposal of the said cases which would result in inconvenience and frustration to litigant public. In our opinion, therefore, if retroactive operation is given to the new forum and to the new remedy for recovery of old loans in respect of sums of one l ac of rupees or less than one lac of rupees,. it would cause great hardship to parties and witnesses of the said suits."

6. In the aforementioned two Division Bench authorities divergent view has been expressed but while sitting singly I am bound to follow the dictum laid down by the learned Division Bench of this Court in Taj Muhammad's case (.supra). Therefore, respectful) following the same I hold that despite amendment of 1983, the legal position with regard to pending cases remaining unchanged, learned Additional District Judge is competent to hear the cases in question and I, therefore, decline to transfer them to the Court of Special Judge, Banking, as prayed. In the result these petitions fail and are hereby dismissed. There is no order as to costs.

A.A Petition dismissed.

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