Messrs SILK BANK LIMITED vs Qazi EHTISHAMUL HAQ and others
This civil appeal arose from a controversy regarding the appropriate forum for challenging a judgment and decree that had been varied on appeal. The petitioner challenged the judgment of the High Court in First Appeal No. 42 of 2009, which had upheld a Banking Court's order reversing its own judgment and decree, despite the fact that the original decree had already been varied and enhanced by the High Court in First Appeal No. D-39 of 2007. The Supreme Court of Pakistan held that under Section 12(2) of the Code of Civil Procedure 1908, as well as under general law, a judgment and decree can only be assailed before the court that passed or last varied it. Once the High Court varied the Banking Court's decree, the lower court's decree merged into the High Court's decree. Consequently, the proper forum for seeking to set aside the decree on grounds of non-service, misrepresentation, or fraud was the High Court, not the Banking Court. The Supreme Court allowed the appeal, set aside the impugned judgment, and permitted the respondents to approach the High Court.
- Which court has the jurisdiction to set aside a judgment and decree under Section 12(2) of the Code of Civil Procedure 1908 when the lower court's decree has been varied on appeal?
- Does a lower court's decree merge into the appellate court's decree once the appellate court varies or modifies it?
- Can a Banking Court entertain an application to set aside a decree that has already been modified and enhanced by the High Court in an appeal?
- Section 12(2), Code of Civil Procedure 1908
' SARMAD JALAL OSMANY, J.---We have heard both the learned Advocates Supreme Court. The controversy in the matter is of a technical nature i,e,, whether in order to have the judgment and decree dated 20-2-2008 passed by the learned High Court in First Appeal No,D-39 of 2007 set aside, the respondents should have approached that court itself or the learned Banking Court.
2. Mr. Nafis Ahmad Siddiqui. Learned Counsel for the petitioner has stated that per settled law where a party seeks to set aside a judgment and decree passed by any Court, only that particular Court can be approached and not any other Court. Consequently, the impugned judgment passed by the Learned High Court in First Appeal No,42 of 2009 upholding the order passed by the Learned Banking Court reversing its own judgment and decree which was varied vide judgment passed in First Appeal No, D-39 of 2007, is had in law and is liable to be set aside.
3. Mr. Khalique Ahmad, learned Counsel for respondent No,2, when confronted with this proposition, has stated very fairly that in the facts and circumstances of the case, the respondents would now approach the Learned High Court for their remedy in H.C. Appeal No,39 of 2007.
4. The law is well settled i,e,, that under section 12(2) of the A C.P.C. Or for that matter under the general law, the judgment and decree of a Court can only be assailed before that Court when the aggrieved party seeks to have it set aside on the ground that either it was not served or .That the same was obtained through mis-representation, fraud, etc. It would be seen that the judgment and decree passed by the learned Banking Court on 8-6-2007 was assailed by the petitioner in First Appeal No,D-39 of 2007. As observed above, vide order dated 20-2-2008, the first appeal was allowed and judgment and decree passed by the learned Banking Court was varied by enhancing the claim of the petitioner to Rs,8.272 million along with cost of funds by way of sale of the mortgaged properties of the respondents. Hence, in our opinion, thereafter, this judgment and decree attained finality and the judgment and decree of the lower Court merged therein.
Consequently, the proper forum for assailing such decree was the High Court and not the Banking Court.
5. In view of the foregoing discussion, this petition is converted into an appeal and is allowed by consent, to the extent that the judgment dated 15-4-2010 of the learned High Court passed in First Appeal No,42 of 2009 is set aside. The respondents may, if they so like, approach the High Court for setting aside of the judgment and decree passed in First Appeal No, D-39 of 2007 by filing of an application and if such is filed, execution proceedings would be suspended till the disposal of the said application.
6. This petition stands disposed of in the above terms.