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2017 CLD 1247

ABDUL SATTAR vs The BANK OF PUNJAB through Branch Manager

Citation2017 CLD 1247
CourtLahore High Court
Case No.F.A.O. No. 66 of 2011
Date2017-01-23
Judge(s)Shahid Karim, Muzamil Akhtar Shabir
ResultAppeal dismissed
AI Summary — generated from this judgment; read the full text below and verify before relying on it.

This is an appeal filed under section 22 of the Financial Institutions (Recovery of Finances) Ordinance, 2001 against an order of the Banking Court which dismissed an application to set aside an ex parte judgment and decree. The core legal question addressed is whether the appellant was validly served and whether an appeal directed solely against the dismissal of an application to set aside an ex parte order—while omitting to challenge the underlying judgment and decree—is maintainable. The Lahore High Court held that the appeal is without merit as the appellant was properly served through a bailiff and subsequent fixation at his residence, which constitutes valid service under the banking dispensation. Furthermore, the Court held that omitting to challenge the actual judgment and decree, which had attained finality, creates a fatal contradiction. The key principle laid down is that service through any one of the recognized modes under the law is sufficient, and a failure to challenge the final judgment and decree renders an appeal against collateral procedural orders ineffective.

Questions settled in this judgment
  • Whether an appeal directed solely against the dismissal of an application to set aside an ex parte order is maintainable when the underlying judgment and decree are not challenged?
  • What constitutes valid and sufficient service of summons in a banking dispensation under the law?
  • Is it necessary to prove service through all modes simultaneously or is any one mode sufficient?
Laws & provisions referred
  • Section 22 of the Financial Institutions (Recovery of Finances) Ordinance, 2001
financial institutionsex parte judgmentbanking courtservice of summonsrecovery of financesappeal

' This is an appeal under section 22 of the Financial Institutions (Recovery of Finances) Ordinance, 2001 against the order dated 9.3.2011 passed by the Banking Court-I, Multan. By the impugned order, the Banking Court dismissed the application filed by the appellant for setting aside the ex parte judgment dated 21.4.2010.

2. It is pertinent to note that the appellant has chosen to challenge the order dated 9.3.2012 by which the application filed by the appellant for setting aside the ex parte order was dismissed.

However, the appellant has omitted to lay a challenge to the judgment and decree which was passed against the appellant which has attained finality against the appellant. This is contradiction in terms and even if the instant appeal is allowed; that will not have the effect of setting aside the judgment and decree passed by the Banking Court by a separate judgment.

' However, having heard the learned counsel for the appellant, we do not find any infirmity to have crept in the impugned order passed by the Banking Court. The service on the appellant was validly effected and the appellant was served through bailiff and upon his refusal to receive the summons, he was served through a fixation at the door of his residence. This is sufficient and proper service and conform to the requirements of law. Further, in the banking dispensation, service by either of the three modes is considered as good service sufficient to draw an inference that a person has been served in due course of law. A publication which is one of the modes of service is also considered as a valid service and it is not necessary to prove service through all three modes simultaneously and any one of them should be sufficient in this regard. The Banking Court rightly held that the affidavit of the bank manager from whom the appellant obtained knowledge regarding A pendency of the suit has not been filed nor relied upon by the appellant.

Moreover, the other judgment debtors were also served through bailiff and they received the summons but did not choose to appear before the Banking Court.

4. In view of the above, the instant appeal is without merit and is, therefore, dismissed.

Cited by 4 cases

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