IN THE HIGH COURT OF SINDH AT KARACHI

 

 

Suit No.971 of 2013

 

Plaintiffs:                              Muhammad Jameel (Late) through his legal heirs.

                                                through:Mr. Iftikhar Hussain Advocate.

 

Defendants:                         Syeda Sakina & others

through Mr. Faiz H. Shah & company Advocate for Defendant No.1 to 2.

 

Date of hearing.          29.08.2014

 

Date of order.               09.09.2014.

 

O  R  D   E   R

 

Salahuddin Panhwar J:-  Through instant application, Under Order 7 R 11 CPC defendants seek rejection of the plant on following grounds :-

i)                           being barred U/S 11 CPC as it has been filed against the Order & Decree, passed in Suit No.1812/1996 (Old No.591/1982) which was finally decided by the Honourable High Court of Sindh, Karachi (appellate jurisdiction) in R.A.No.147/2007 vide Order dated 8.10.2007;

 

ii)                        relief, claimed and subject matter involved, already stood decided in previous suit i.e Suit No.1812/1996 when plaintiff Muhammad Jameel himself filed compromise application bearing CMA No.1021/1991 and CMA No.1093/1991 and Honourable High Court allowed the same vide Order dated 05.6.1991 and subsequently the Plaintiff Muhammad Jameel again filed 2nd Compromise application and appeared as attorney for legal heirs. Hence legal heirs of plaintiff have estopped from challenging the said orders by way of separate suit and act amounts to perjury;

 

iii)                      Earlier suit No.24/2013 was filed by the plaintiff and withdrawn but concealed such facts in the suit;

iv)                      Earlier mother of attorney Saleha Zaheen (being legal heir of Baba Zaheen Shah Taji) filed suit No.Nil/2006 which was dismissed for Non-Prosecution. Another suit No.277/2011 before Civil Judge Central and subsequently withdrawn the same on same assertions as made in present suit. The Attorney Irshad Hussain is the son-in-law of plaintiff’

 

2.                     The case of the plaintiff as set out is that they are sons and daughters of the deceased Muhammad Jameel who died on 06.11.2011, leaving plaintiffs as legal heirs in number of properties. Original documents of properties and company’s original papers are in custody of defendant Nos.1 & 2 which they obtained through unfair means. M/s Jameel Enterprises (Pvt) Ltd was registered in May / June 1974 and it had three directors, each holding 1/3rd share. The Jameel Enterprises was claimed to be a separate entity and proprietorship was under ownership of deceased Muhammad Jameel. The plaintiffs claim that Muhammad Tahseen Shah Taji was one of the Director and died on 23.7.1979 leaving behind his sons and daughters, including Muhammad Jameel (father of plaintiffs). Muhammad Hashim s/o Muhammad Tahseen also died in year 2002, leaving his widow as only surviving legal heir. Suit No.591/82 (New No.1812/1996) filed by legal heirs of deceased grandfather in which several properties included by attorney, husband of plaintiff Mst. Alia to that suit and in such litigations misrepresentation was made by attorney and sometimes through other legal heirs of grandfather with ulterior motives but company was not party to such litigation. On 16.7.2010 plaintiffs acquired knowledge that Mst.Syeda Sakina and Shabbir Ahmed, posing them to be purchaser of both properties from legal heirs of Muhammad Tahseen Shah, through sale agreement dated 15.12.2003. On 16.7.2010 they claimed to be purchaser from legal heirs of Muhammad Tahseen Shah. Rent of Al-Jameel Square SD-26 Block-G North Nazimabad Karachi collected in court showing it to be property of M/s Jameel Enterprises (Pvt) ltd; on 12.8.2010 father of plaintiffs acquired knowledge about fabrication of sale agreement dated 21.11.2003 or 15.12.2003 and claim on such property for which defendant Nos.1 & 2 filed suit for Specific Performance and Declaration before VIth Senior Civil Judge, Karachi Central wherein Muhammad Jameel moved an application U/O 1 r 10 CPC seeking his joining as party in said suit i.e suit No.931/2005; application was allowed however in revision order was set-aside, which order is questioned through petition No.4099/2012 and same is pending. That the legal heirs of Muhammad Jameel (present plaintiffs) also filed an application U/s 12(2)CPC R/W section 151 CPC to court on 17.01.2003 in suit No.591/1982 (New No.1812/1996) which suit was dismissed in non-prosecution on 17.5.2011 , however, the trial court restored it and prepared the compromise decree  as per compromise, submitted by parties and application U/s 12 (2)CPC was fixed for final arguments.

 

3.                     Learned counsel for defendant No.1 and 2 argued that admittedly in suit No.591/82 (New 1812/1996) compromise was effected wherein plaintiff (Muhammad Jameel) was defendant No.3 hence instant suit is barred; Muhammad Jameel admittedly filed an application U/O 1 r 10 CPC which, though was allowed by trial court, but was declined by appellate court and even petition filed against such order stood dismissed on 09.12.2013. Instant suit is claimed to be ‘administrative suit’ but subject matter already stood decided in earlier round of litigation thus instant suit is not sustainable; property No.SD-26, Block-G North Nazimabad was sold through relinquishment deed dated 28.6.2005. Suit is barred U/s 11 CPC so also by Section 47 CPC.

4.                     Learned counsel for plaintiffs has argued that that suit is for Administration, rendition and cancellation of relinquishment deed;  since in earlier suits issues were not decided hence question of resjudicata is not involved. The property bearing No.SD-267 Block-G North Nazimabad is only subject matter which was not subject matter in earlier litigation although above property was mentioned in compromise but as it was not part of pleading, therefore, compromise is not binding to the parteis for such property. Plaintiff is claiming property from legal heirs mentioned in para-4 of plaint; relinquishment deed was in violation of Court order and property in instant suit is SD-G Block-C while in earlier litigation it was in Block-D; earlier litigations and compromise (s) were barred under Section 39 to 52 of Muhammadan Law (PLD 1991 SC 731). A compromise cannot cross limit of the pleadings (NLR-1995 UC 504, 2003 SCMR 604, 1990 SCMR 751, PLD 1983 SC 344, 2002 SCMR 300, 1991 SCMR 1725, 1990 SCMR 143, PLJ-2010 Lah. 96, 1992 MLD- 1879, 1997 CLC 636.

5.                     Heard learned counsel for respective parties and examined the material available on record.

6.                     What is not disputed from the pleading of the plaintiffs (plaint) that they have used the words ‘misrepresentation’ at number of occasions with reference to earlier litigation and outcome thereof i.e compromise order / decree. The plaintiffs have admitted to have been actively involved in earlier litigation (s) as one of the parties. The plaintiffs, even have admitted to have preferred an application Under Section 12 (2)CPC in the decided suit but at the same time have filed the instant separate suit with number of prayers.

7.                     The above position gives rise to a proposition that:

Whether in existence of an application U/s 12 (2) CPC a separate suit can sustain for setting aside of a decree on grounds , meant for Section 12(2)?.

 

8.                     To properly appreciate the above proposition, it would be just and proper to refer the Section 12 (2) of the Code which reads as under:-

“Section 12(2). Where a person challenges the validity of a judgment, decree or order on the plea of fraud, mis-representation or want of jurisdiction, he shall seek his remedy by making an application to the Court which passed the final judgment, decree or order and not by a separate suit”

 

                        The provision of Section 12 (2) of the Code is very much clear and specific in its language and wording. Through induction of this provision the legislature has placed a ‘full stop’ on filing of a separate suit where one challenges the judgment, decree or order of the Court on the grounds of :-

i)                  fraud;

ii)               mis-representation; or

iii)            want of jurisdiction

 

9.                     In this provision the word ‘shall’ has been used while confining the ‘remedy’ , available to the person on such grounds which further stood stamped by use of the phrase ‘not by a separate suit’. Thus the answer to the above proposition shall be nothing but a big ‘negation’.

10.                   Let’s examine the instant suit with reference to above proposition for which one of the prayer clause (s) of the plaintiffs is necessary and same is reproduced hereunder:-

"That, it is to be declared that 1st compromise application and order on it and 2nd compromise application in suit No.591/82 new No.1812/96 both applications are made by legal heirs of Muhammad Tahseen Shah Taji due to using fraud and misrepresentation and by concealing the real original facts and documents of title knowingly under malafide intention from the court, as property bearing No.SD-33 Block A North Nazimabad Karachi is own property of Muhammad Jameel i.e father of plaintiffs whereas the property bearing No.SD-26 block G Al-Jameel Square North Nazimabad Karachi is the property of M/s Jameel Enterprises and deceased father of plaintiffs was the proprietor of the firm so it is also declare that the property bearing no.SD-26 block G north Nazimabad Karachi is also the property of Muhammad Jameel and his legal heirs are entitled as per their share in said property and whatever the rent, arrears, benefits, profits availed, recovered, collected from tenants or by way of other mode in detail , tenant wise detail with name, date A/Cs from January 2010 to date or arising out of said properties.” (underlining is supplied for emphasis)

 

            The underlined and bold portion of the prayer clause of the plaintiff (s) make it quite obvious that the plaintiffs are seeking a declaration in respect of the compromise order, passed in earlier suit, on ground of mis-representation, fraud and concealment of facts. Once one seeks any declaration in respect of a ‘judgment, decree or order‘ of a competent Court on any of the grounds i.e ‘fraud, mis-representation or want of jurisdiction’ through a separate suit, the provision of Section 12(2) C.P.C shall come into play whereby insisting for rejection of the plaint under Rule-II(d) of the Order-VII of the Code. If not, it shall frustrate the very object of the provision of Section 12 (2) C.P.C which cannot be legally allowed to prevail.

11.                   Be that as it may, it is not the case of the plaintiffs that they were under the dark about the earlier proceedings but it is a matter of record that Mr. Jameel, the father of the plaintiffs remained a signatory to compromise, arrived in earlier suit, therefore, the present plaintiffs, being claiming under Mr. Jameel, are not legally justified to challenge such act(s) through separate suit on the ground that the property in question was not included as subject matter in such suit. Let me make it clear here that a compromise is always arrived between the parties on their own terms and conditions and shall be legal and competent if the consideration thereof is within competence of such parties. The parties, entering into compromise, can legally settle ‘consideration’ for such compromise which ‘consideration’ is not necessarily to be confined to pleadings but should be within competence of the parties because a compromise (agreement) can legally bind the signatories and their successors only and not to others. I am quite clear in my such view with the case of MESSRS COUNTRY PRODUCTS EXPORT LTD versus MESSRS BAWANY SUGAR MILLS LTD [PLD 1968 Karachi 115], wherein it is held:-

The words “that relates to suit” in Order XXIII rule -3 C.P.C. are sufficiently wide to embrace the terms and conditions which constitute consideration of the compromise, and in all such cases the Court cannot refuse to record the compromise merely on the ground that certain terms and conditions are not strictly within the scope of the suit. It is not the policy of the Code of Civil Procedure to discourage compromises of litigation. The Courts are under duty to record lawful compromises and a decree based on compromise, though it includes terms and conditions which are not initially within the scope of the suit but are considerations for compromise, would, nevertheless be the decree of the Court, and unless there is express legal prohibition, such a decree would be executable under Order XXI C.P.C.”

 

                        In the case of GHULAM MUHAMMAD versus ZUBAIDA BEGUM [1984 CLC 874], it is held that:

“Property or right  forming consideration for subject matter of litigation as per terms of compromise, held, would be considered as subject of litigation resulting in compromise for all intents and purposes, and such subject matter of consideration would not be treated as extraneous property for purpose of executing proceedings”.

 

                        In the case of NOORUDDDIN HUSSAIN versus DIAMOND VACUUM BOTTLE MANUFACTRURING CO. LTD. KARACHI [PLD 1981 K 720], it is held that:-

 

“Compromise relating to matter outside scope of suit being a part of consideration for agreement as to matter in suit, entire compromise, or an integral whole, held must be recorded and decreed as relating to suit whether or not otherwise relating to suit.”

 

12.                   The plaintiffs have also pleaded that since there has been difference of block number in respect of the property so mentioned in the compromise or that has been made a subject matter in this lis, therefore, instant suit is not barred under the law. This plea of the plaintiffs appear to be entirely misconceived for the simple reason that though there has been difference of Block number yet from reading of the plaint and relief(s), sought therein, it becomes quite clear and obvious that this is same property because admittedly the plaintiffs first attempted to protect such property by making an application Under Order 1 Rule 10 CPC and then through pending application U/s 12(2) CPC. Had it been so, as claimed by the plaintiffs this should have been mentioned / specified in the plaint or there would be no reason for them to challenge the compromise order or even seeking declaration of such compromise order in the instant suit. The Order 2 Rule 2 of the Code also stands in the way of the plaintiffs regarding their plea to have come for different plea but under same set of facts against same parties. A mere change in relief would not be sufficient to hold a subsequent suit maintainable because a relinquished right cannot be raised subsequently and since admittedly the plaintiffs have raised their instant claim on basis of same set of facts with addition to reference of earlier litigation would not be a fresh ground. I find support in my such view with the case law reported as ANJUMAN MASJID NEW TOWN vs. Muhammad Shahid Zaki and 12 others [PLD 2011 Karachi-550] wherein it was held:-

“……. To which it may be observed that clause 1 of Rule 2 of Order II, CPC provides that every suit shall include the whole of the claim which the plaintiff is entitled to make in respect of the cause of action; but may relinquish any portion of his claim in order to bring the suit within the jurisdiction of any Court. It is, therefore, left or the discretion of the plaintiff how he, “frame” his suit and choose jurisdiction, according to his suiting, if law permits. However, once the plaintiff has opted, then by virtue of clause 2 of Rule 2 of Order II, CPC he, “shall not”, afterwards sue in respect of the omitted or relinquished claim. Since the plaintiff omitted and/ or relinquished to raise the claim of damages in Suit No.913 of 2010 he could have not raised the prayer of damages in this suit. Therefore, by virtue of clause ‘d’ of Rule 11 of Order VII, C.P.C, this suit was barred by law and could have not been instituted and / or entertained at all.”

 Thus the plea of the plaintiffs that earlier suit were barred under certain provisions of Muhammadan Law. This plea also appears to be entirely misconceived for the reason that the parties, including the father of the present plaintiffs, never raised such plea and even competence of parties to enter into compromise was never claimed to be going beyond their rights, claims and title in properties so left by their predecessor interest namely Muhammad Tahseen Shah Taji. However, since application Under Section 12(2) CPC is pending decision before competent court hence any further discussion may cause prejudice to the merits, therefore, I refrain from going deep down into such plea.    

13.                   In the last, I would like to take the plea of the plaintiffs that since in earlier suit issues were not decided but it was compromised therefore, section 11 of the Code has no application. I find no substance in this plea for the simple reason that a lis stands finally decided when the parties to such lis agree for disposal of all their claims through course, provided by Order XXIII Rule 3 which is also evident from reading of the Rule-3 of the Order XXIII which, for convenience and understanding, is reproduced hereunder:-

“3. Compromise of suit. –Where it is proved to the satisfaction of the Court that a suit has been adjusted wholly or in part by any lawful agreement or compromise, or where the defendant satisfies the plaintiff in respect of the whole or any part of the subject-matter of the suit, the Court shall order such agreement , compromise or satisfaction to be recorded and shall pass  a decree in accordance therewith so far as it relates to the suit.”

 

The parties to such lis would not be legally entitled to re-agitate the adjusted claim through a separate suit till the time the compromise order / decree is holding the field. If there has been any question of ‘fraud, misrepresentation or want of jurisdiction’, the only available remedy with such person is not a separate suit but through the course of Section 12 ( 2) C.PC. Reference can be made to the case of JOHN PAUL vs. IRSHAD ALI and others [PLD 1997 Karachi 267], wherein it is held that:-

“After incorporation of section 12(2), C.P.C a decree obtained by making willful misrepresentation and / or passed on the basis of void agreement can validly be challenged before the Court which passed such decree.”

 

                        In the case of MUHAMMAD SHAFI and 3 others   vs. MUHAMMAD YOUSAF and another [1995 CLC 481], it is held that:-

“8. Even if that be so, this plea hardly advanced the case of the petitioners inasmuch as the real object of the petitioners is to have the order of the Civil court dated 09.9.1991 sanctifying the compromise between the parties, set aside on the ground of fraud and misrepresentation. No separate suit could be filed in this behalf and the remedy, if any, of the petitioners was by approaching the same Court through an application under section 12(2) CPC.”

14.                   In view of what has been discussed above , I am of the clear view that plaint of the plaintiffs is barred under the law hence same is rejected as such.

Imran/PA                                                                             J U D G E