DEFENCE HOUSING AUTHORITY, LAHORE vs MUHAMMAD NAEEM-UL-KAREEM
This matter concerns a petition for leave to appeal filed by the Defence Housing Authority, Lahore, challenging the maintainability of a suit instituted by the respondents. The core legal question is whether the respondents were required to serve a prior notice under Section 70 of the Cooperative Societies Act, 1925, before initiating the suit, given the subsequent dissolution of the Lahore Cantonment Cooperative Housing Society Limited and the establishment of the Defence Housing Authority. The petitioner argued that the suit was barred for lack of such notice. Conversely, the respondents contended that the Defence Housing Authority, Lahore, is no longer a cooperative society following the enactment of the Defence Housing Authority Lahore Ordinance, 1999, and the Defence Housing Authority Order, 2002, rendering the provisions of the Cooperative Societies Act, 1925, inapplicable to the proceedings. The Supreme Court granted leave to appeal to examine these legal questions regarding the applicability of the statutory notice requirement in light of the entity's changed legal status. The Court stayed the trial court proceedings pending the final adjudication of the appeal.
- Does the requirement of prior notice under Section 70 of the Cooperative Societies Act, 1925, apply to a suit filed against the Defence Housing Authority, Lahore?
- Did the dissolution of the Lahore Cantonment Cooperative Housing Society Limited under the Defence Housing Authority Lahore Ordinance, 1999, render the Cooperative Societies Act, 1925, inapplicable to the entity?
- Does the Defence Housing Authority Order, 2002, exempt the Defence Housing Authority from the notice requirements previously applicable to the Lahore Cantonment Cooperative Housing Society Limited?
- Section 70, Cooperative Societies Act 1925
- Section 18, Defence Housing Authority Lahore Ordinance 1999
- Defence Housing Authority Order 2002
ORDER
' FAQIR MUHAMMAD KHOKHAR, J.--- The learned counsel for the petitioner submitted, inter alia, that from its very inception the suit by the respondents could not have been instituted without a prior notice in terms of section 70 of Cooperative Societies Act, 1925. Reliance was placed on the case of Lahore Cantt. Cooperative Housing Society Limited v. Messrs Builders and Developers (Pvt.) Ltd. And others PLD 2002 SC 660 in which leave was granted to consider a similar question.
2. On the other hand, the learned counsel for the respondent No,1 argued that the Additional District Judge had rejected the plaint for want of notice under section 70 (ibid) on 5-3-2002, without considering the effect of section 18 of the Defence Housing Authority Lahore Ordinance, 1999 (Ordinance No,L-1/1999) where under the Lahore Cantonment Cooperative Housing Society Limited, Lahore was dissolved. It was further submitted that, subsequently, Chief Executive's Order No,26/2002 called the Defence Housing Authority Order, 2002 was also promulgated on 19-9-2002.
The Defence Housing Authority, Lahore was no longer a Cooperative Society. Therefore, the provisions of the Act, 1925, had ceased to apply during the pendency of the suit. Moreover, section 70 of the Act was not attracted to the facts of the suit filed by the respondents.
3. Leave to appeal is granted to consider the above and the other submissions. Since short questions of law are involved, office is directed to fix the main appeal, on its present record, for hearing along with the appeal arising out of C.P. No,707-L of 1999, within a period of six months.
Meanwhile, the proceedings in the main suit before the trial Court shall remain stayed.