Case Details

Citation(s)
2006 SLG 2893 2006 SLD 2893 2006 CLD 836
Lahore High Court
First Appeal from Order No. 241 of 2005, decision dated: 6-04-2006.
MUHAMMAD MUZAMMAL KHAN AND SYED SAJJAD HUSSAIN SHAH, JJ
Ch. Muhammad Amin Javaid for the Appellants. Mumtaz Bharwana for the
Respondent.

MONAZAM BIBI and 2 others

VS

. ZARI TARAQIATI BANK LTD. Through Branch Manager

Law:

Section:

(a) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--------S.9(5)---Substituted service---Press publication---Selection of newspapers---Failure to dispatch newspapers under postal cover---Banking Court after publication of citation in two newspapers, one English and the other Urdu proceeded ex parte against defendants and decreed the suit in favour of bank---Plea raised by defendants was that the newspapers in which publications were printed, did not have circulation in their area and no copy of newspapers was dispatched to them under postal cover---Validity---Defendants were not educated as one of them had thumb-marked his power of attorney in favour of their counsel and others had signed it in broken Urdu---High Court, in circumstances, assumed that the English newspaper was not being read and had no circulation in the area where they resided---Urdu newspaper was a local newspaper and had no circulation in any other district, especially in the rural area of the district of residence of defendants---High Court declined to accept that the service of defendants was effected in accordance with law, especially when newspapers in which citations against defendants were published were not dispatched through post at their addresses---Defendants were thus not served with the process properly in circumstances. (b) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)---- ----S.12---Ex parte decree, setting aside of---Improper service of summons---Banking Court, after publication in press proceeded ex parte against defendants and decreed the suit in favour of bank---Defendants filed application for setting aside ex parte decree but the same was dismissed by Banking Court---Plea raised by defendants was that they were not properly served with the process of Court---Validity---Defendants were not real loanees, guarantors or mortgagors but were heirs/legal representatives of the loanee, thus they were to be substituted/ impleaded in the suit with all clarity and their service should have been effected lawfully through any of the modes known to law---Defendants were not personally served and their service through substituted means was…
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