Law:

Section:

Qanun-e-Shahadat (10 of 1984)------- --------Art. 129(g)------- Civil Procedure Code (V of 1908), O.XXIX, R.1-------Suit for declaration and injunction by company-------Valid institution of suit-------Absence of authority to file suit-------Presumption-------Plaintiff company filed suit against defendants, through the person who did not have any authority to file the same-------Validity-------Where there was any defect in institution of suit, such as it had been instituted un-authorizedly and incompetently, such defect was incurable-------Competency and authority to institute legal proceedings were to be determined strictly in accordance with Articles of plaintiff company, as for a suit to be validly instituted, it must have been instituted by a person authorized in such behalf, through a resolution passed in meeting of Board of Directors of the company and/or in accordance with Memorandum of Articles of Association thereof-------In order to determine as to whether a suit was instituted by a person competent to do so, reference was to be made to Articles of Association and/or resolution of Board of Directors of the company, on whose behalf the suit had been instituted-------Burden to establish that the suit was filed on behalf of plaintiff company by an authorized and competent person was upon plaintiff company-------In the present case, more than eleven years had elapsed but no document/authority was produced by plaintiff to establish that the person who filed the suit was Chairman of plaintiff company and he was an authorized person to institute the suit on behalf of plaintiff company, nor Memorandum and Articles of plaintiff company had been produced so as to adduce that suit was instituted on behalf of plaintiff company by a duly authorized and competent person-------Presumption about non-existence of alleged authority claimed by person who filed the suit and appeared as plaintiff's witness could legitimately be drawn against the plaintiff company in view of Art.129(g) of Qanun-e-Shahadat, 1984-------Suit was dismissed in circumstances. Messrs Muhammad Siddiq Muhammad Umar and another v. The Australasia Bank Ltd. PLD 1996 SC 684; Khan Iftikhar Hussain Khan…

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