Law: Code Of Civil Procedure, 1908.

Section: 50

Law: Negotiable Instruments Act, 1881

Section: 29 & 29-A

 Summary: The appellants, legal heirs of the deceased drawer Khadim Hussain, challenged a summary suit decree under Order XXXVII CPC for recovery of Rs. 3,400,000 on a dishonoured cheque. They contended that the decree was not executable against them under Section 50 CPC, as they had not inherited any estate. The Court held that the suit was validly instituted during the drawer’s lifetime, the appellants voluntarily adopted his defense, and no maintainability objection was raised earlier. Liability of legal representatives is limited to the deceased’s estate; executability is to be determined by the Executing Court. The appeal was dismissed. Tagline: Summary suit maintainable after drawer’s death; liability of heirs limited to inherited estate under Section 50 CPC. ORDER; Anwaar Hussain, J. This Regular First Appeal is directed against the judgment and decree dated 01.03.2013 passed by the learned Additional District Judge, Multan, in a suit, instituted by the respondent against the predecessor-in-interest of the appellants, namely, Khadim Hussain (“the drawer/defendant”), under Order XXXVII of the Code of Civil Procedure, 1908 (“CPC”) for recovery of Rs.3,400,000/- on the basis of a cheque allegedly issued by the drawer/defendant. The suit was decreed after framing of issues and recording of evidence. Having tendered appearance, the drawer/defendant sought leave to defend, inter alia, contending that no business relationship existed between the parties. It was asserted that a dispute had arisen between him and one Sh. Ikram-ud-Din, and that for settlement thereof it was agreed that the matter would be referred to arbitration, pursuant to which two agreements of even date, i.e., 08.02.2007, were executed for appointment of arbitrators. The drawer/defendant appointed Rana Javed Iqbal Nazim as arbitrator, whereas Sh. Ikram-ud-Din appointed the respondent as arbitrator. It was further pleaded that the cheque in question had been handed over as security to the arbitrator nominated by the drawer/defendant, namely Rana Javed Iqbal Nazim, who subsequently delivered the…