Messrs TRANSGLOBE SHIPPING SERVICE vs WAPDA and another
This matter concerns the legality of a trial court's order dismissing a suit for non-prosecution after the case had been referred to mediation. The petitioner's suit was referred to the Karachi Centre for Dispute Resolution (KCDR) under Section 89-A and Order X Rule 1A of the Code of Civil Procedure 1908. While the matter was pending before the KCDR, the trial court dismissed the suit for non-prosecution due to the parties' absence. The Supreme Court held that the dismissal was void ab initio because the court had directed the parties to appear before the KCDR for proceedings, effectively suspending the court's own hearing schedule. The Court ruled that the trial court failed to apply its mind and acted mechanically by dismissing the suit without notice or report from the mediator. Consequently, the Court determined that the limitation period for the restoration application was governed by the residuary Article 181 of the Limitation Act 1908 (three years) rather than Article 163 (30 days), rendering the restoration application timely.
- Can a trial court dismiss a suit for non-prosecution while the matter is pending before a mediator to whom it was referred?
- Does the limitation period for an application to restore a suit dismissed for non-prosecution fall under Article 163 or Article 181 of the Limitation Act 1908?
- Is a dismissal order void ab initio if the court fails to apply its mind to the fact that the case was referred to mediation?
- Section 89-A, Code of Civil Procedure 1908
- Order X Rule 1A, Code of Civil Procedure 1908
- Article 163, Limitation Act 1908
- Article 181, Limitation Act 1908
ORDER
' GULZAR AHMED, J.---This is a very unfortunate matter and has been lingering on for considerable time. The petitioner had filed suit, which was being contested by the respondents. On 08.10.2007 the trial court passed the following order:- "On a review of this case, the Courts finds the above suit is appropriate for seeking resolution through mediation. Since the parties in this case have shown their willingness to try mediation and also shown their readiness towards payment of required fees.
' Pursuant to the provision of Section 89-A read with order X rule 1A CPC, this case is, therefore, hereby referred for mediation to Karachi Centre for Dispute Resolution (KCDR) D 9/5, Park lane, Block 5, Clifton, Karachi (Telephone # 0214214749).
' The parties are required to contact KCDR on or before 08.11.2007 along with the relevant record with regard to their claims, for further proceedings."
2. It seems that while suit was referred for mediation to KCDR and parties were directed to approach the KCDR for further proceedings but the suit continued to be fixed in Court and ultimately in absence of the parties it was dismissed for non-prosecution on 02.3.2009. The petitioner then filed an application for restoration of the Suit, which was dismissed vide order date 13.5.2010 as time barred. The petitioner then filed Civil Misc. Appeal, which was allowed vide order dated 10.02.2012 and suit of the petitioner was restored. The respondent filed Civil Revision Application in the High Court and by the impugned order dated 25.10.2013 same was .Allowed and the order restoring the suit was set aside.
3. We have heard the learned counsel appearing for the parties and have also gone through the record.
4. It is an admitted fact that dispute between the parties was referred for mediation to KCDR with directions to the parties to approach the KCDR for further proceedings. Such order of the court remained in field until suit came to be dismissed for non-prosecution. The very fact that parties were directed to appear before the KCDR for further proceedings apparently show that no proceedings in the suit was to take place rather it was to be done at KCDR. Once the suit was referred to the KCDR and there was no report of KCDR as to what had transpired in the proceedings before it, the Court in our view was not justified in dismissing the suit for non-prosecution as for doing so in the first place the court was required to have applied its conscious mind to the facts and circumstances of the case and not just to pass a mechanical order. It is apparent that suit was dismissed for non-prosecution when none of parties appeared before the Court. Respondent also did not inform the court of the proceedings before the KCDR nor anything in writing seems to be available before the Court. There was no intimation A by the Court fixing the case for hearing and requiring the petitioner to appear before it along with its evidence. Thus, while matter remained pending before the KCDR for further proceedings in terms of order itself, it cannot be said that on 02.3.2009 when suit w2s dismissed for non-prosecution, it was fixed for hearing before the Court and therefore, such an order of the Court, in our view, is altogether without jurisdiction and void ab initio. In this regard Article 163 of imitation Act providing 30 days for filing of application for restoration will not apply rather the residuary Article 181 of the Limitation Act will apply providing three years' time for filing the application for restoration. Thus, the application filed by petitioner was in time.
5. For the forgoing reasons we allow this appeal, set aside the impugned order and restore the order of appellate court that of restoring the suit. As the suit is of year 2002, we direct the trial court to expedite its hearing and dispose of the same preferably within a period of three months.Office is directed to communicate this order to the trial court within one week's time and trial court shall communicate next date of hearing to parties, which shall be within a period of fifteen days.
Cited by 3 cases
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