Malik MUHAMMAD ARIF vs THE NATIONAL BANK OF PAKISTAN
This petition for special leave to appeal challenged a judgment of the Lahore High Court, which had affirmed an ex parte decree passed by a Special Judge, Banking Court, against the petitioner for the recovery of loan amounts. The petitioner, a former employee of the National Bank of Pakistan, contended that he was abroad when the suit was filed, that he was not properly served with summons, and that the suit was time-barred. The core legal question was whether the petitioner had sufficient grounds to set aside the ex parte decree given his failure to file an application for leave to appear and defend the suit within the prescribed time. The Supreme Court observed that the petitioner’s counsel had appeared on his behalf earlier without raising the issue of non-service or absence from the country. Furthermore, the petitioner failed to seek condonation of delay before the trial court despite having returned to the country prior to the filing of his application. Consequently, the Court held that the petitioner failed to establish valid justification for the delay, and the petition was dismissed.
- Can a defendant challenge an ex parte decree on the grounds of non-service if their counsel previously appeared in court without raising such an objection?
- Is a party entitled to the setting aside of an ex parte decree if they failed to seek condonation of delay for filing an application for leave to appear and defend?
SAAD SAOOD JAN, J.--This is a petition for special leave to appeal from the judgment dated 28-10- 1986 of the Lahore High Court which affirmed the judgment and decree dated 4-8-1986 of the Special Judge, Banking Court, Lahore.
2. The petitioner was an employee of the National Bank of Pakistan. During the course of his employment he obtained three loans from the bank. Later he was dismissed from service. On 2-3- 1985 the bank filed a suit against him for the recovery of Rs.23,123.82 on account of the said loans.
The suit was decreed ex parte by the Banking Court as the petitioner failed to apply for leave to appear and defend within time. The petitioner preferred an appeal before the High Court. After holding that no valid justification had been made out for not moving the Court within time, the High Court dismissed the appeal.
3. In support of this petition it is contended that at the time when the suit was filed he was out of the country and as such no service of summons was effected upon him; further, the suit of the bank was barred by time.
4. The petitioner does not dispute that he had in fact obtained the loans in question from the bank although he alleges that he had paid off the entire amount. The suit was filed on 2-3-1985. On 7-5- 1985 a counsel appeared on his behalf before the Court, filed a memorandum of appearance and sought an adjournment to file an application for leave to appear and defend the suit. The case was then taken up on 15-7-1985. On this day his counsel informed the Court that the petitioner was in Saudi Arabia and that it was on the instructions of his wife that he had appeared in the Court on the last date of hearing. He sought an adjournment to file a Vakalatnama and the application for leave to appear and defend the suit. The Court adjourned the proceedings to 10-9-1985. On this date the petitioner did file the requisite application.
5. It is to be noticed that on 7-5-1985 when a counsel appeared on his behalf in Court he did not take up the position on that day that the petitioner was out of the country or that it was not the petitioner, but his wife who had received the summons. The petitioner states that he left the country on 11-3-1985 and returned for a short period on 22-8-1985. The application for leave to appear and defend the suit was filed on 10-9-1985, that is more than 10 days after his return to Pakistan. During the proceedings before the Special Judge the petitioner did not seek condonation of delay. Had any such prayer been made the question of non-service would have been no doubt examined by the learned Judge. In the circumstances we do not think that this is a fit case where leave to appeal should be granted. Dismissed.