NATIONAL BANK OF PAKISTAN vs MUHAMMAD AKRAM KHAN and others
The petitioner, National Bank of Pakistan, challenged an interlocutory order of the Lahore High Court requiring it to deposit the balance of a decretal amount as a condition for the suspension of a money decree pending appeal. The petitioner argued that as a government entity established under the National Bank of Pakistan Ordinance 1949, it was exempt from depositing security under Order XXVII, Rule 8, Code of Civil Procedure 1908. The Supreme Court rejected this contention, noting that the relevant provision regarding the exemption of government entities from furnishing security had been repealed. The Court held that under Order XLI, Rule 8, Code of Civil Procedure 1908, the appellate court possesses the discretion to order the deposit of the decretal amount or the furnishing of security in money decrees. Finding no exceptional circumstances to warrant interference with the High Court's interlocutory order, the Supreme Court upheld the requirement to deposit the balance. To protect the petitioner's interests, the Court ordered that the deposited funds be invested in a profit-bearing scheme and that the respondents provide an undertaking to refund the amount if the appeal succeeds.
- Does the National Bank of Pakistan enjoy an exemption from depositing security for the stay of execution of a money decree?
- Is the appellate court empowered to order the deposit of a decretal amount as a condition for staying execution under the Code of Civil Procedure 1908?
- Does the Supreme Court interfere with interlocutory orders of the High Court regarding the deposit of decretal amounts absent exceptional circumstances?
- Order XXVII Rule 8, Code of Civil Procedure 1908
- Order XLI Rule 8, Code of Civil Procedure 1908
- National Bank of Pakistan Ordinance 1949
IRSHAD HASAN KHAN, J.---The petitioner/National Bank of Pakistan challenged the money decree dated 29-6-1998 for the recovery of Rs,1,38,869 passed against it and in favour of the respondents/decree-holders through Regular First Appeal (R.F.A. No, 337/98), before the Lahore High Court.
2. The learned Division Bench admitted the appeal to regular hearing vide order dated 22-9-1998.
Meanwhile, operation of the decree was suspended subject to the petitioners herein depositing the decretal amount as well as the balance amount in terms of the amended decree. It would be advantageous to reproduce the impugned order, which reads thus:- "Civil Miscellaneous 1-C and 20-C of 1998 "We have noted that in compliance with the order dated 22-9-1998, the appellant has deposited the original decretal amount before the Deputy Registrar (Judicial) of this Court but has not deposited the whole of the decretal amount as rectified by the amended decree.
2. The appellant is directed to deposit the balance of the decretal amount with the above said Officer of this Court within two weeks."
3.. No one has entered appearance on behalf of the petitioner-bank. Challenge has, however, been made to the impugned order in the Memorandum of Appeal, inter alia, on the following grounds:-
(1) The original decretal amount has already been deposited in Court. The decree had been amended during the pendency of the appeal in the High Court but notwithstanding pendency of appeal before the High Court the trial Court amended the judgment and decree without notice to the petitioner. In the circumstances, it was urged that the High Court had not exercised its discretion in accordance with-the law while ordering to deposit the differential amount.
(2) The National Bank of Pakistan was established under Ordinance XIX of 1949 under government of India Act, 1935 and as such is part of the Government, therefor; exempted to deposit the decretal amount in view of the dictum laid down by this Court in the case of Haji Banaras Khan v. Central Government through Secretary Defence and Military Estate Officer (1986 SCM R 1805).
(3) The impugned order affects the protection available to the Government against the requirement of any security in terms of Order XXVII, Rule 8, C.P.C., inasmuch as, the petitioner bank could always pay any amount at the call of the Court's order, therefore, the impugned order for depositing the decretal amount in cash was not reasonable, in the facts and circumstances of the case.
4. The case of Haji Banaras Khan (supra), relied upon by the petitioner, has no relevance to the facts and circumstances of the present case. Suffice it to say that Order XLI, rule 7, to the effect that," No security to be required from the Government or a public officer in certain cases", has been repealed. Furthermore, the petitioner having once deposited the original decretal amount in cash in terms of the order dated 22-9-1998, we fail to understand the difficulty in depositing the balance amount as contemplated by the amended decree. Under Order XLI, Rule 8, C.P.C. It is discretionary with the Court to pass orders, in case of a decree for the payment of money, to deposit the decretal amount or to furnish security for its payment; and, in the case of any other decree, to furnish security for the due performance of the decree. Here, having regard to the facts and circumstances of the case, the appellate Court passed orders for deposit of cash, to which no exception can be taken. Even otherwise, this Court ordinarily does no interfere with interlocutory orders of the High Court except in exceptional circumstances, which are lacking in the instant case.
However, with a view to protecting the rights of both the parties, we direct that the respondents shall give an undertaking to refund the amount to the petitioner in case the appeal is allowed by the High Court. We further direct that the decretal amount so deposited, shall be invested in some profit carrying scheme of the Government till the final disposal of the appeal.
5. With the above observation, the petition is disposed of