Messrs RAHEEM STEEL REROLLING MILLS and 4 others vs Messrs KARIM AZIZ
This matter came before the Supreme Court of Pakistan upon a petition for leave to appeal, where the parties informed the Court that they had reached an out-of-court settlement regarding the subject matter of the dispute. The parties submitted a compromise agreement requesting the disposal of the petition in accordance with its terms, which also resolved a pending First Appeal from Order (F.A.O. No. 49 of 1988) in the Lahore High Court. The Supreme Court converted the petition into an appeal and allowed it in terms of the compromise. The Court held that the decree dated 31-7-1986 shall not be executed by the respondents, provided the petitioners adhere to a specific payment schedule for the decretal amount ending on 31-12-1989. The Court further established the principle that in the event of default in any agreed installment, the respondents are entitled to recover the entire balance amount through execution proceedings against the assets of the petitioners.
- Can a petition for leave to appeal be converted into an appeal based on a compromise between parties?
- Does a court-sanctioned compromise agreement regarding a decree allow for execution proceedings upon default of installments?
ORDER
1. ' MUHAMMAD AFZAL ZULLAH, J.--Learned counsel state that the parties have settled the subject- matter of dispute out of the Court.
2. ' Accordingly, an application has been made for disposal of this petition in terms of the compromise stated therein. They also state that this settles the F.A.O. No,49 of 1988 pending in the Lahore High Court at Rawalpindi Bench and that the steps would be taken for disposal thereof accordingly.
3. This petition is, therefore, converted into appeal and allowed in terms of the compromise recorded hereunder:-- "1. Decree dated 31-7-1986 shall not be executed by the Respondents subject to the following undertaking of the Petitioners.
2. Petitioners undertake to pay the entire decretal amount upto 31-12-1989 as under:-- {{TABLE}} Rs, 5 lacs 15-2-1989 Rs, 5 lacs 30-4-1989 Rs, 5 lacs 30-7-1989 Rs, 5 lacs 30-11-1989 Balance as per decree 31-12-1989.
4. 3.In case of default in any instalment, the entire balance amount shall be recovered through Execution and from assets of the Petitioners."
5. ' There shall be no order as to costs.