Messrs NAZIM POLYSACK LTD. and anothers vs Messrs ATLAS LEASE LTD.
The appellants challenged the dismissal of their application under section 151 of the Code of Civil Procedure 1908, which sought the restoration of an earlier application dismissed for non-prosecution for setting aside an ex parte decree passed by the Banking Court. The Banking Court had dismissed the restoration application as time-barred by applying Article 108 of the Limitation Act 1908. The core legal question was whether Article 108 or the residuary Article 181 of the Limitation Act 1908 governs an application under section 151, C.P.C. for restoring an application to set aside an ex parte decree. The Lahore High Court held that no specific article of the Limitation Act applies to such an application under section 151, C.P.C., making the residuary Article 181 applicable, which prescribes a three-year period. Consequently, the High Court set aside the impugned order, allowed the appeal, and remanded the matter to the Banking Court for a decision on merits.
- Which article of the Limitation Act applies to an application under section 151 of the Code of Civil Procedure 1908 seeking the restoration of an application for setting aside an ex parte decree?
- Does Article 108 of the Limitation Act 1908 govern an application for the restoration of an application dismissed for non-prosecution?
- What is the limitation period prescribed under the residuary Article 181 of the Limitation Act 1908 for an application under section 151 of the Code of Civil Procedure 1908?
- Section 151, Code of Civil Procedure 1908
- Article 108, Limitation Act 1908
- Article 181, Limitation Act 1908
- Section 12, Financial Institutions (Recovery of Finances) Ordinance 2001
' MIAN SAQIB NISAR, J.---The application under section 151, C.P.C., filed -by the appellants, seeking restoration of an application, dismissed for non-prosecution, earlier moved by them for the setting aside of the ex parte decree passed by the Banking Court against the appellants, has been dismissed by the Court, being barred by time, by applying the provisions of Article 108 of the Limitation Act.
2. It is argued that for such an application, no period of limitation has been prescribed by the Limitation Act, therefore, the residuary Article 181, shall be attracted, which provides three years' time, and undoubtedly the application was well within the said period. Confronted with the above, learned counsel for the respondents concedes the legal position, however, states that due to their conduct, the appellants are not entitled to the relief for the reason that they are trying to delay the matter; they were proceeded ex parte after following all the modes for their service, yet they did not turn up; the application under section 12 of the Financial Institutions (Recovery of Finances)
Ordinance, 2001, moved by the appellants was thus without merits, which again was not seriously pursued and was dismissed due to the sheer negligence on the part of the appellants.
3. Heard. As far as the law is concerned, it is settled till to date, that for an application under section 151, C.P.C., seeking the relief as in the present case, no specific Article of the Limitation Act is attracted, resultantly the residuary Article 181 shall be applicable and thus, the view taken by the Court below in this behalf is absolutely erroneous and unfounded.
4. As regards the plea about the conduct of the appellants is concerned, suffice it to say that such objection, if having any relevance to the matter, shall be available to the respondents to be raised before the forum below. However, we are not inclined, in exercise of our appellate jurisdiction, to entertain such plea at this stage.
' In the light of whatever has been stated above, this appeal is allowed; the impugned order is set aside and the matter is remanded to the Banking Court, where the application under section 151, C.P.C. Filed by the appellants shall be deemed pending and decided on merits. The parties are directed to appear before the Court below on 15-2-2006, and the Court is directed to decide the matter, without fail, within a period of three months from the above said date.