RASHAD EHSAN and others vs BASHIR AHMAD and anothers
This civil appeal arose from execution proceedings initiated following money decrees obtained in 1957. In an auction sale conducted pursuant to execution proceedings transferred to the High Court under the Banking Companies Ordinance 1962, the first respondent was the successful auction-purchaser. Although 25% of the purchase price was paid immediately and the sale was confirmed by the High Court, the remaining balance was not deposited within fifteen days of confirmation as prescribed under Order XXI Rule 85 of the Code of Civil Procedure 1908. Instead, the balance was deposited immediately after the case file was received by the Collector's office. The legal heirs of the judgment-debtor challenged the sale as null and void for non-compliance with mandatory provisions. The Supreme Court affirmed the Division Bench's ruling, holding that the auction notice issued by the court functionary explicitly stated the balance was payable upon confirmation, thereby inducing the delay. Applying the maxim 'Actus Curiae Neminem Gravabit', the Court held that a party acting in reliance on an erroneous court direction cannot be penalized.
- Does the failure to deposit the balance of the purchase money within fifteen days under Order XXI Rule 85 of the Code of Civil Procedure 1908 invalidate an auction sale when the delay was caused by an erroneous court direction?
- Can the judicial maxim 'Actus Curiae Neminem Gravabit' protect an auction-purchaser who complies with an erroneous public notice issued by an officer of the court?
- Whether non-compliance with the mandatory time limit under Order XXI Rule 85 of the Code of Civil Procedure 1908 can be excused if a party acts pursuant to orders or notices issued by the court itself?
- Section 62, Banking Companies Ordinance 1962
- Order XXI Rule 85, Code of Civil Procedure 1908
- Order XXI Rule 90, Code of Civil Procedure 1908
1. ' NASIM HASAN SHAH, J.--The appellants are the legal heirs of one Mimi Ehsan Elahi against whom the Central Exchange Bank Ltd. Had obtained two money decrees on 12-12-1957. After obtaining the decrees, the Central Exchange Bank had commenced execution proceedings against Mian Ehsan Elahi in the Court of Civil Judge, Lahore, and attached the judgment-debtor's half share in two properties bearing Khasra 'Nos. 1143 and 1169. The judgment-debtor had filed objections to the attachment.
2. ' In the meanwhile, on 12-11-1962, the Central Exchange Bank Ltd., went into liquidation; therefore, the execution proceedings instituted by it were transferred under section 62 of the Banking Companies Ordinance, 1962, to the Lahore seat of the West Pakistan High Court and in due course notices were published for the auction of the judgment-debtor's share in the aforesaid Khasra numbers.
3. ' The notices, referred to above, were published in the Na wa-iWaqt of the 14th July, 1964, for the auction which was to be held on 18-7-1964. In the auction held, in pursuance thereof, the judgment-debtor's share in Khasra No,1143 was sold for Rs,18,000 whilst his share in the other khasra No, was sold for Rs,25,000. The successful auction-purchaser in both the cases was Bashir Ahmad (who is the first respondent in both these appeals) and in accordance with the terms of the auctions he paid 25% of the sale price immediately. The above-mentioned sales were confirmed by the High Court in his favour on 26-10-1964.
4. ' However, the balance of the sale price was not paid even within fifteen days of the confirmation of the auction.
5. ' Be that as it may nothing was done by the judgment-debtor for a long time. However, objections to the sale were filed sometimes in 1966 under Order XXI, Rule 90, C.P.C. But these were rejected as timebarred on 16-10-1967.
6. ' The judgment-debtor died on 18-6-1968 and his heirs filed objections under Order XXI, Rule 85 of the Civil Procedure Code for setting side the sales in favour of the first respondent on the short ground that the sales had become null and void in view of the first respondent's failure to comply with the mandatory provisions of Order XXI, Rule 85 of the Civil Procedure Code. These applications were contested by the first respondent but they were allowed by Muhammad Akram,' J. On 18-11- 1974. Therefore, the first respondent challenged the orders of Muhamamd Akram, J. In Letters Patent Appeals which came up for hearing before a Division Bench of the Lahore High Court which allowed the same by its judgment dated 2-10-1978. Hence these appeals by leave of this Court.
7. ' The contention of the appellants before the Division Bench was that non-compliance "with the provision of Order XXI, Rule 85 renders the sale a nullity and on that count plea of limitation or of waiver or res judicata cannot be availed of" and that this plea was accepted as correct by the learned Single Judge (M. Akram, J.). The learned Judges, who allowed the appeals against the order cf I. Akram, J. , accepted this submission observing in paragraph 10 of their judgment that they entirely agreed with the finding of M. Akram, J. "for it is based on a review of the case-law on the subject". But the learned Judges went on to say: "We, however, think proper to examine at some length a matter which has not been even noted in the judgment under appeal. It is whether in this matter the act of the Court itself has not substantially prejudiced the appellant and the decision under appeal has not the effect of altogether ignoring the applicability of the maxim "Actus Curiae Neminem Gravabit" (An act of the Court shall prejudice no man)."
8. ' Then after an elaborate examination of the case-law, the learned Judges took the view that the non-compliance of the provisions of Order XXI, Rule 85 by the first respondent had been due to the failure of the Court to specify in its auction notices the period within which the balance of the sale price had to be paid; therefore, on the principle that an ,act of the Court should not prejudice any one, they allowed the first respondent's appeals.
9. ' Learned counsel, in support of these appeals, has submitted that the failure of the first respondent to comply with the mandatory provisions of Order XXI, Rule 85 was not due to any act or default on the part of the Court; therefore, the learned Judges had erred in holding that the maxim "Actus Curiae Neminem Gravabit" was attracted to the facts of the case. Secondly, according to the learned counsel, this maxim was not applicable to the provisions of Order XXI, Rule 85 of the Civil Procedure Code and that the view taken by the learned Judges was contrary to the settled law.
10. ' Ch. Khalil-ur-Rehman has been heard in reply.
11. ' In my opinion, the view taken by the learned Judges of the Division Bench is not only tenable but a fair and equitable disposal of the matter.
12. ' The submission that the principle "Actus Curiae Neminem Gravabit" (an act of the Court shall prejudice no man)" has been found applicable while dealing with the cases falling under Order XXI, Rule 85 of the Civil Procedure Code by Courts in the Sub-Continent since decades (see for instance Bijoy Singh v. Raja Kirtyanand Singh (AIR 1932 Pat. 342) and Mst. Gomti v. Lachman Das Champa Ram (AIR 1934 All. 817) and Ambati Raghawalu v. Mova Venkamma and others (AIR 1962 Andhre Pardesh 334). Even Courts. In Pakistan have found that the mandatory provisions of the Code if not complied with on account of something done by the Court, would not prejudice a party which has been acting pursuant to the orders of the Court; see Ch. Abdur Rashid and others v. The New Bank of India Ltd. (PLD 1959 Lah. 224) and Painda Khan v . Tiw tna and another (PLD 1962 Lah. 92).
13. ' In our opinion, this maxim was rightly applied in the facts and circumstances of this case. It will be recalled that the notice of c sale appeared in the daily Nawa-i-Waqt on 14-7-1964 for the auction to be held on 18-7-1964. The notice was in the following terms:- {{URDU TEXT}} ' The sale'of the share of the judgment-debtor took place on 18-7-1964. The case was put up for confirmation of the auction price before the learned Judge of the High Court and the auction price was confirmed by him (Muhammad Akram, J.) on 26-10-1964. The file of., the proceedings, including the order of confirmation passed by the learned Judge of the High Court, was thereafter sent to the Collector. Which was received by him on 8-12-1964 and the balance of the sale price deposited on the very next day i.e, on 9-12-1964.
14. ' It is true that even after the confirmation of the sale, the balance was not deposited within 15 days thereof but the fact that it was deposited on the very next day of the receipt of the file in the Collector's office shows that the respondent was waiting for its receipt and the balance price could not be deposited before the file was actually received. Needless to say that all deposits have to be made after the preparation of the challan and the relevant challan could not obviously be prepared by the Collector until the file was received by him from the High Court.
15. ' I, therefore, agree with the view of the Division Bench that the notice issued by the Collector and published in the newspaper which explicitly mentioned that the balance of the price shall be payable on confirmation of the sale had contributed to the delay. This public notice was undoubtedly in violation of the provisions of Order XXI, Rule 85 of the Civil Procedure Code. But the error was committed by the officer authorised to conduct the sale and to penalize the auction-purchaser for complying with the directions, even though erroneous, of the functionary conducting the sale is neither fair nor equitable. Accordingly the maxim "Actus Curiae Neminem Gravabit" comes into play, with a view to obviate hardships and which may otherwise be the result of the errors of the Court itself. Thus, where a non-compliance with the mandatory provisions of a law occurs by complying with the direction of the Court, which is not in confirmity with the law, the party complying therewith is not to be penalized. Indeed, the law becomes flexible to absorb such abnormalities and treat the infractions as harmless. Where the directions issued while administering the law have been followed but it is found that the authority itself had acted in deviation of the law in some particulars, the party acting in accordance with such directions is not held to be blameworthy.
16. ' The litigation in these cases started sometime in 1957; 31 years have elapsed since the Courts were approached in these matters. To re-open the matter again after 31 years seems to be putting premium on technicalities. The law sometimes is called an ass but the Judge should, as far as it is possible, try not to become one.
17. ' I would dismiss these appeals, leaving the parties to bear their own costs.
Cited by 56 cases
- M/s Moin & Sons Electronics vs SME Bank Limited 2020 SHC 1206
- Muhammad Asif vs MCB Bank Limited & Others 2019 CLD 733, 2020 P C T L R 1171, 2019 SHC 104
- Muhammad Asif vs MCB Bank Limited & Others 2019 CLD 733, 2020 P C T L R 1171, 2019 SHC 104
- KHALIL AHMED vs ADDITIONAL DISTRICT JUDGE and others 2013 CLC 258
- Abdul Munaf vs Muhammad Ashfaq, etc 2012 CLC 748, 2012 C.L.R. 129
- ABDUL MUNAF vs MUHAMMAD ASHFAQUE and others 2012 CLC 748
- I.A. TEXTILES, FAISALABAD vs COLLECTOR OF SALES TAX, FAISALABAD. 2011 PTD (Trib.) 912
- SHAHID ALI vs MRS. AZIZ FATIMA AND OTHERS 2010 NLR Revenue 54
- Shahid All vs Aziz Fatima and others 2010 C.L.R. 494
- NABI AHMED and others vs MUHAMMAD ARSHAD and others 2008 SCMR 1685
- ZAHOOR AHMAD and 5 others vs THE STATE and 3 others 2007 PLD Lahore 231
- HABIB BANK LIMITED vs Messrs KIRAN SUGAR MILLS (PUBLIC) through Managing Director 2007 CLD 726
- MUHAMMAD IKHLAQ MEMON vs ZAKARIA GHANI and others 2005 CLD 1589
- MUHAMMAD KHLAQ MEMON vs ZAKARIA GHANI and others 2005 PLD Supreme Court 819
- MUHAMMAD IKHLAQ MEMON vs ZAKARIA GHANI and others 2006 PLJ SC 438
- KHYBER TRACTORS (PVT.) LTD. through Manager vs PAKISTAN through Ministry of Finance, Revenue and Economic Affairs. Islamabad 2005 PLD Supreme Court 842
- KHYBER TRACTORS (PVT.) LTD. through MANAGER vs PAKISTAN through M/O 2006 PLJ SC 112
- M/s. Chawla International vs Habib Bank Ltd. and others 2003 C.L.R. 1652
- Messrs CHAWLA INTERNATIONAL vs HABIB BANK LIMITED and others 2003 CLD 956
- GHULAM HASSAN vs JAMSHAID ALI And Other K.L.R. 2001 S.C. 196
- GHULAM HASSAN vs JAMSHAID ALI and others 2001 SCMR 1001
- Maj. (Rtd.) HAMID ALI KHAN vs Mian MUHAMMAD ANWAR 2000 CLC 1633
- MIAN MUHAMMAD LUTFI vs MIAN MUHAMMAD TALHA ADIL 2000 C.L.R. 853
- Messrs PAK SUZUKI MOTOR CO. LTD., KARACHI vs MUHAMMAD HUSSAIN and 24 others 1999 PLC 154
- MEHRAM ALI Alias YAWAR ALI vs FEDERATION OF PAKISTAN And Other K.L.R. 1998 Criminal Cases 506
- SECRETARY, GOVERNMENT OF SINDH vs ABDUL RAHIM and another 1998 PLC (C.S.) 415
- Mst. KHADIJA BAI And Other vs MUHAMMAD And Other 1994 PLD Karachi 233
- Mst. KHADIJA BAI and otherss vs MUHAMMAD and others 1994 PLD Karachi 233
- MUHAMMAD BOOTA And ANOTHER vs Sh. ABDUL WAHID 1994 CLC 1018
- Mufti AMAN ULLAH and 64 others vs SETTLEMENT COMMISSIONER 1989 PLD Peshawar 250
- Messrs ESSEM HOTELS (PVT.) LTD. through Director vs CAPITAL DEVELOPMENT 1998 CLC 1453
- Messrs ALI MATCH INDUSTRIES LTD through Managing Director and 3 others 1999 MLD 2127
- RIAZ AHMED vs FEDERATION OF PAKISTAN through Chairman, Railway Board 2002 YLR 1658
- SAJAWAL KHAN vs WALI MUHAMMAD and others 2002 SCMR 134
- SHAUKAT ALI MIAN vs TRUST LEASING CORPORATION LTD. through Chief 2002 CLD 1071
- Shaukat Ali Mian vs Trust Leasing Corporation Limited Through Its Chief 2003 P.C.T.L.R. 1195
- Farooq Ahmed vs Federation Of Pakistan Through Secretary Law And Parliamentary Affairs, Government Of Pakistan, Islamabad K.L.R. 2005 Civil Cases 21
- FAROOQ AHMED- vs FEDERATION OF PAKISTAN through Secretary Law and Parliamentary Affairs, Government of Pakistan, Islamabad - 2005 PLD Lahore 15
- FAROOQ ARMED vs FEDERATION OF PAKISTAN through SECRETARY LAW & PARLIAMENTARY AFFAIRS, GOVERNMENT OF PAKISTAN, ISLAMABAD 2005 PLJ Lahore 1
- Province of Punjab through Secretary to Government of Punjab, Communication and works Department vs Awan Engineering Enterprises 2005 C.L.R. 1602
- PROVINCE OF PUNJAB through Secretary to Government of Punjab, Communication and Works Department vs AWAN ENGINEERING ENTERPRISES 2006 YLR 881
- Messrs LANVIN TRADERS, KARACHI vs PRESIDING OFFICER, BANKING COURT 2013 SCMR 1419, 2013 CLD 1581
- M/s. Lanvin Traders, Karachi vs Presiding Officer, Banking Court No, 2, 2014 P.C.T.L.R. 368
- M/S. LANVIN TRADERS, KARACHI vs PRESIDING. OFFICER, BANKING COURT NO. 2014 NLR Civil 137
- Khushi Muhammad (deceased) through L.Rs. (in C.A.2564_2001) and 7 others vs Mst. Fazal Bibi etc. (in C.A.2564_2001)and 7 others 2016 SCP 61
- KHUSHI MUHAMMAD through L.Rs, and others vs Mst. FAZAL BIBI and others- 2016 SCP 61, 2016 PLD Supreme Court 872
- MOHAMMAD IJAZ and another vs MUHAMMAD SHAFI (decd.) through L.Rs, 2016 PLJ SC 361
- Muhammad Ijaz and another vs Muhammad Shafi (Deceased) through L.Rs 2016 P.S.C. 369
- MUHAMMAD IJAZ and another vs MUHAMMAD SHAFI through L.Rs. 2016 P.S.C. 369, 2016 SCMR 834, 2016 PLJ SC 361
- Muhammad ljaz and another vs Muhammad Shafi (Deceased) through L.Rs 2016 P.S.C. 369
…and 6 more citing cases