IN THE HIGH COURT OF SINDH AT KARACHI

Spl. H.C.A. No.166 OF 2007

[Muslim Commercial Bank Ltd., v. Haji Abdul Razzak & others]

PRESENT:

            Mr. Justice Arshad Hussain Khan

Mr. Justice Amjad Ali Sahito        .

Appellants                 :           Mr. Muhammad Shoaib Rashid, Advocate

alongwith Mr. Pervaiz Siddiqui, Law Officer.  

Respondents             :           Mr. Zeeshan Bashir Khan, Advocate.

Date of hg & order   :           15.04.2026

O R D E R

ARSHAD HUSSAIN KHAN J;                 Through this Spl. High Court Appeal the appellant has assailed the order dated 15.06.2007 and 24.05.2006 passed by the learned Single Judge of this Court in Suit No.1674 of 1997. Through the impugned orders, the learned Single Judge had directed the liquidation/sale of certain pledged shares of the appellant held in the name of the respondent to satisfy the outstanding liabilities claimed in the recovery suit.

Learned counsel for the Appellant refers to the statement dated 25.02.2026 alongwith documents specially order dated 25.09.2012 passed in Suit No.1674 of 1997 wherein a statement of the appellant attached alongwith CMA No.10087/2012 has been denoted wherein final settlement was reflected. Counsel further contends that since the shares have been/are being dealt with in terms of a settlement agreement, which has been approved by Court by order dated 25.09.2012 the grievances raised in the original memo of appeal no longer subsist. Consequently, he requests that the appeal be dismissed as infructuous.

Learned counsel for the respondent does not oppose the Statement filed by the Appellant. He confirms that a compromise has been reached and that the Bank is proceeding with the recovery process in light of the settlement. He maintains that the challenge to the interlocutory orders of 2006 and 2007 has lost its relevance and supports the prayer for the disposal of the appeal.

We have heard learned counsel for the parties and carefully examined the record especially the Statement filed by the appellant. It is a settled principle of law that when the parties to a dispute reach a compromise or the Appellant voluntarily withdraws the grievance that formed the basis of the appeal, the "lis" (dispute) ceases to exist.

By filing the Statement, the Appellant has effectively waived the grounds of appeal regarding the validity of the consent order and the applicability of the 1984 Ordinance. As the parties have moved toward the execution of a settlement, any adjudication on the merits of the impugned orders at this stage would be an exercise in futility. The appeal has, by the conduct of the parties and the subsequent settlement, lost its purpose.

In view of the above facts and the statement filed by the learned counsel for the Appellant, referred to above, this High Court Appeal is hereby dismissed as having become infructuous alongwith all pending applications.

JUDGE

JUDGE

Naveed PA