Pakistan Case Law
1985 P Cr. L J 2871

Khanzada HADAYAT ALI KHAN vs MAZHAR ALI KHAN and others

⭐ Prefer in Google
Citation1985 P Cr. L J 2871
CourtLahore High Court
Case No.Petitions for Special Leave to Appeal Nos. 40 to 48 of 1984
Date1985-02-09
Judge(s)Rustam S. Sidhwa
ResultPetitions dismissed in limine.
AI Summary — generated from this judgment; read the full text below and verify before relying on it.

This matter comprises nine petitions for special leave to appeal against the consolidated order of the Senior Special Judge, Anti-Corruption, Lahore, acquitting the respondents under section 249-A of the Code of Criminal Procedure, 1898 in private complaints filed under sections 409, 420, 468, 166, 167, and 109 of the Pakistan Penal Code and section 5(2) of the Prevention of Corruption Act, 1947. The core legal question was whether disputes touching the internal management and business of a co-operative society, remediable under section 54 of the Co-operative Societies Act, 1925, preclude criminal prosecution or require resolution through the mechanisms provided under the Co-operative Societies Act. The court held that although the trial court erred in failing to record preliminary evidence before entertaining applications for acquittal, remand was unnecessary as the dispute inherently touched upon the internal management of the society, which falls within the statutory framework of the Co-operative Societies Act, 1925. The court laid down that where disputes regarding embezzlement and cheating relate to the business of a co-operative society, the statutory mechanism under the Co-operative Societies Act must be invoked, and technical irregularities in procedure do not warrant interference if the ultimate conclusion is correct.

Questions settled in this judgment
  • Whether disputes touching the business and internal management of a co-operative society must be resolved through the Co-operative Societies Act, 1925?
  • Can an appellate court decline to remand a case for recording preliminary evidence if the ultimate legal result would remain unchanged?
  • Does the Registrar of Co-operative Societies have the power to initiate criminal prosecution under the Co-operative Societies Act, 1925?
Laws & provisions referred
  • Section 249-A, Code of Criminal Procedure 1898
  • Section 409, Pakistan Penal Code 1860
  • Section 420, Pakistan Penal Code 1860
  • Section 468, Pakistan Penal Code 1860
  • Section 166, Pakistan Penal Code 1860
  • Section 167, Pakistan Penal Code 1860
  • Section 109, Pakistan Penal Code 1860
  • Section 5, Prevention of Corruption Act 1947
  • Section 54, Co-operative Societies Act 1925
  • Section 43, Co-operative Societies Act 1925
  • Section 44-B, Co-operative Societies Act 1925
  • Section 50-A, Co-operative Societies Act 1925
acquittal under section 249-Aco-operative society disputecriminal breach of trustanti-corruptionspecial leave to appealinternal managementpreliminary evidence

ORDER

1. ' This order will dispose of the under-noted nine petitions namely P.S.L.As. Nos. 40 to 48 of 1984 filed by Khanzada Hadayat Ali Khan, petitioner, against Mazhar Ali Khan and others, respondents, seeking leave to appeal against the consolidated order of the learned Senior Special Judge, Anti- Corruption, Lahore, dated 30-5-1984 acquitting all the respondents in the cases filed before him under section 249-A, Cr. P C 2 The petitioner's case in brief is that he filed nine private complaints before the Benior Special Judge, Anti-Corruption, against Mazhar Ali Khan and others, respondents, in respect of offences under section 409/420/468/166/167/109, P.P.C. And section 5(2) of the Prevention of Corruption Act in respect of cheating, forgery and embezzlement committed by the respondents in the course of their duties as members of the Management Committee and or as the Secretary of the Model Town Co-operative Society. After writing to appropriate Government to grant sanction and after waiting for the sixty days period to expire, the respondents were issued summons to attend Court.

2. Before the preliminary evidence could be recorded, the respondents submitted an application under section 249-A, Cr.P.C. In each of the nine cases, submitting that no criminal offences stood made out against them and that the allegations levelled against them related to the internal management and business of the Model Town Co-operative Society for which the petitioner had a remedy under section 54 of the Co-operative Societies Act, 1925. After hearing arguments of the parties the learned Senior Special Judge accepted the applications and acquitted the respondents in all the nine cases before him. Being aggrieved by the said orders, the petitioner has filed nine petitions seeking special leave to appeal against the same, which are now before me for disposal.

3. 3 On behalf of the petitioner it is submitted that the matters covered by section 54 of the Co- operative Societies Act, 1925, are civil matters and do not relate to the offences mentioned in the Prevention of Corruption Act, 1947, or the Pakistan Criminal Law Amendment Act, 1958,which offences are exclusively triable by the Special Judge, A nti-Corruption , Punjab.

4. 4 On behalf of the respondents it is submitted, for reasons already given by the learned Senior Special Judge in each of the nine orders of acquittal, that the matters before him are purely relatable to the business or internal management of the Co-operative Society.

5. I have heard the arguments of the learned counsel for the petitioner and the respondents. I have also gone through the consolidated order passed by the learned Senior Special Judge in the nine cases that were before him. From the facts of the nine cases, as recorded therein, it appears that prima facie in each case the dispute touches the business and internal management of the Model Town Co-operative Society. Under section 54 of the Co-operative Societies Act, 1925, any dispute touching the business of a Society which arises between the Society or its Committee, on the one hand, arid any past or present member of the Society, on the other, can only be referred to the Registrar of Co-operative Societies for decision by him of his nominee, or, if either of the parties so desires, to arbitration of three arbitrators. Where such dispute is referred to the Registrar and he finds that certain members of the Managing Committee or the office-bearers of the Society have cheated the Society or committed forgery or embezzled or misappropriated its funds, he can initiate an inquiry under section 43 and under section 44-B of the Co-operative Societies Act can exercise any of the powers given to him under section 50-A, including the power to initiate criminal prosecution under section 50-A(2) of the Act. I think in the instant case, the learned Senior Special Judge should have recorded the preliminary evidence of the petitioner in all the nine cases, before dealing with the arguments of the respondents in the said connection, but considering the fact that inherently the learned Senior Special Judge is correct in his assessment, I do not think I should grant leave merely for the purposes of remanding these cases back on a technical ground, when ultimately the result will be the same. I, therefore, dismiss these nine petitions in limine. ' in limine.

Cited by 13 cases

For educational and research use only — not legal advice. Verify against the official report before relying on it. See our Disclaimer.