' MUNIR AHMED CHAUDHARY, J.--- This appeal has been filed against the judgment and decree passed by the learned District Judge Mirpur dated 26-4-2005, through which the suit filed by the present appellant was rejected under Order VII, Rule 11 of C.P.C.
2. Brief facts of the instant case are that appellant/plaintiff filed a suit for declaration against the respondents in the Court of learned District Judge Mirpur on 22-10-2004. It was stated in the suit that appellant purchased shares of Universal Insurance Company (respondent No,1) but the company did not extend physical shares in time. Respondent No,3 was an approved stock broker and running a branch office at Mirpur. The appellant prayed to issue a declaratory decree regarding the said shares of the company.
3. Respondents/defendants Nos.1 and 2 submitted an application to reject the suit and stated therein that respondent No,1/Company has been registered under Companies Ordinance 1984 and the learned District Judge Mirpur has got no jurisdiction regarding shares of the company. Special Courts have been established to hear the cases regarding Companies. The appellant purchased the said shares through respondent No,3 at Islamabad, The said shares were transferred and allotted at Lahore in the registered main office of the Company. The branch of the company functioning at Mirpur has no concern with the transaction of the shares. It was prayed to reject the suit.
4. The learned District Judge Mirpur rejected the suit under Order VII, Rule 11, C.P.0 and declared that the matter pertains to transfer of the shares and the same can be heard at, where registered main office of the company was established. Hence, the present appeal.
5. Arguments were advanced by the learned counsel for the parties. Mohammad Siddique Chaudhary, Advocate, the learned counsel for the appellant, argued that the said company is functioning at Mirpur and a branch has been established. The said Insurance Company has got many offices in the country including Mirpur branch. The said company carries on its business at the place wherever it has a branch, so, the concerned Court at Mirpur has got jurisdiction to try. ,the suit. The learned District Judge has rejected the suit by ignoring the facts and provisions of law. The learned Counsel requested to accept the appeal and referred a precedent PLD 2011 Karachi 416 in support of his arguments.
6. While controverting the learned Counsel for the appellant, Mian Sultan Mehmood and Mr. Kamran Tariq, Advocates, the learned Counsel for the respondents contended that the said company has established its main office at Lahore, so, special Courts at Lahore has got jurisdiction to try the matters regarding shares of the companies. The learned District Judge Mirpur has got no jurisdiction to try a case regarding the shares at Mirpur. The learned Counsel for the respondents requested. To dismiss the said appeal.
7. After hearing the learned Counsel for the parties, I have gone through the record, the relevant law and the precedent referred carefully and minutely. It is an admitted fact that Universal Insurance Company has established its main office at Lahore and branch offices at Islamabad and Mirpur. Respondent No,3 Anwaar-ul-Haq was an approved stock broker and functioning at Mirpur branch office. The appellant purchased the said shares through the said Broker at Mirpur.
So, the relevant Court at Mirpur has got jurisdiction to try the said suit. In a case titled "Normeen Shafi v. Amjad Shafi and others" PLD 2011 Karachi 416, the relevant principle has been laid down as under:- "It is therefore, clear that the corporation can be said to carry on business at the head office or at the place where it has a branch in respect of a cause of action which arises, wholly or in part, at the place where the branch office is situated. If no part of action arises at the place of the branch office, the corporation cannot be said to transact business at that place".
' The Universal Insurance Company is functioning at Mirpur through its branch office and the plaintiff purchased the shares of the company at Mirpur branch office through an approved stock broker who was also performing his functions at Mirpur, so, the learned District Judge Mirpur has got jurisdiction to try a case regarding shares of the said company. The findings recorded by the learned District Judge Mirpur are not in accordance with the facts and provisions of the law, so, they are not sustainable. The appeal is accepted and the judgment and decree passed by the learned District Judge Mirpur is set aside and the learned District Judge is hereby directed to dispose of the matter 'in accordance with the provisions of law. No order as to costs