Law: Code Of Civil Procedure, 1908.

Section: 1, 2 & 14, 14 & 15

 Summary The Peshawar High Court dismissed the civil revision petition filed by Sui Northern Gas Pipelines Limited (SNGPL) and upheld the appellate court's judgment, which had dismissed SNGPL's appeal for non-compliance with Order XXIX Rule 1 CPC. The dispute arose from a civil suit challenging an inflated gas bill of Rs. 22,370,270/- and seeking protection against disconnection of gas supply. Although the trial court had decreed the suit in favour of the consumers, SNGPL's appeal was dismissed because the written statement and appeal had been filed by persons without lawful authorization from the company's Board of Directors. The High Court held that a corporation, being a juristic person, can only institute or defend legal proceedings through duly authorized officers or agents acting under a valid Board Resolution or authority recognized by law. In the present case, neither the written statement, the appeal, nor the revision petition had been signed or verified by a duly authorized officer. The Court further held that the subsequent Board Resolution and Power of Attorney executed years later could not retrospectively validate proceedings initiated by unauthorized persons. Distinguishing the Supreme Court judgment in Rana Basit Rice Mills (2021 SCMR 1413), the Court ruled that the benefit of retrospective ratification was unavailable because SNGPL failed to show any authority under its Articles of Association or any valid authorization existing when the proceedings were instituted. Consequently, the revision petition was dismissed. Tagline A corporation can institute or defend legal proceedings only through duly authorized officers; subsequent authorization cannot cure proceedings initiated by unauthorized persons where no prior authority exists. ORDER; MUHAMMAD IJAZ KHAN, J.-    Through this petition, petitioners have challenged the judgment and decree of the learned Additional District Judge-I, Takht Bhai Mardan dated 18.10.2022, whereby the appeal filed by the present petitioners was dismissed for non-compliance of provisions of Order XXIX Rule 1 CPC and thereby maintained the judgment and decree of the learned trial…

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