NAZIMUDDIN vs Messrs THE BANK OF KHYBER and another
This matter involves two consolidated suits concerning disputed financial accounts between a private party and The Bank of Khyber. The core legal question before the Court was how to resolve the conflicting claims regarding excess payments and outstanding liabilities between the parties, given that both sides had initiated litigation. The Court, with the consent of both parties, decided to appoint an independent Chartered Accountant to conduct a comprehensive audit of the accounts and determine the actual financial liability of each party. The Court held that the scope of the prayers in both suits would be restricted to the accounting issue, while the prayer concerning mortgaged properties would remain subject to the findings of the forthcoming audit report. The key principle laid down is that where complex accounting disputes arise in banking litigation, the Court may, with the mutual consent of the parties, delegate the determination of liability to a neutral professional expert to streamline proceedings and ensure an accurate resolution of the financial claims before proceeding to final adjudication.
- Can a court appoint a Chartered Accountant to determine financial liability in banking suits with the consent of the parties?
- Is it permissible for parties to restrict the scope of their prayers in a suit to specific accounting issues?
- Can a court order the sharing of professional audit fees equally between opposing parties in a civil suit?
ORDER
1. ' In these proceedings the common issue in both suits is that of accounts. According to Mr. Saalim Salam Ansari, his clients have made excess payment to the Bank and in this regard the parties have led evidence in Suit No,B-20 of 2002, which suit is pending in this Court for arguments. On the other hand, Mr. Arshad Tayebaly, Advocate, who represents Plaintiff in Suit No,B-39 of 2003 states that the defendant (Plaintiff in Suit No,B-20 of 2002) has to pay certain amounts for which the Bank has filed suit for recovery of the amount before the Banking Court and on transfer the said suit is now being tagged with the Suit No,B-20 of 2002. Suit No,B-39 of 2003 filed by the Bank is at the stage of hearing of application for leave to defend filed by the defendant therein. Both the learned counsel suggest that a Chartered Accountant be appointed to take account of both the parties and determine the liability. Prayers in both the suits would now be confined to the account and rest of the prayers would not be pressed by both the parties except the prayer in regard to the properties mortgaged by the Bank and said prayer would be subject to the proposed report of the Chartered Accountant. By consent, Messrs Liaquat Zaman & Company, Chartered Accountants, having office in Progressive Plaza, Beaumont Road, behind PIDC, Karachi, are appointed Chartered Accountant to undertake exercise of determination of liability of the parties after taking accounts from both the parties. The Chartered Accountant shall submit their report within two months from the date of communication of the order. Fee of the Chartered Accountant is tentatively fixed at Rs.100,000 to be shared equally by both the parties. To come up after the report of the Chartered Accountant has been submitted in the above terms.
Cited by 3 cases
- Silk Bank Limited, Karachi vs M/S. Dewan Sugar Mills Limited, Karachi 2011 P.C.T.L.R. 1268
- SILKBANK LIMITED vs Messrs DEWAN SUGAR MILLS LIMITED 2011 CLD 436
- ABDUL KADIR JANGDA and 7 others vs MY BANK LTD. 2007 CLD 349