' This is an application under sections 5 and 56 of the Provincial Insolvency Act, 1920 for realizing the assets of Muhammad Khan who has been declared as bankrupt by the High Court in England.
2. The first question which arises is as regards the jurisdiction of this Court inasmuch as under section 3 of the Provincial Insolvency Act, 1920 it is provided that the District Court shall be the Court having jurisdiction under that Act. Learned counsel, when confronted with this provision, has attempted to argue that according to section 2(b) of the aforesaid Act read with section 2 of the Insolvency (Karachi Division and Dacca) Act, 1909 the District Court would mean the High Court in the exercise of its original Civil Jurisdiction.
3. This contention of the learned counsel is devoid of any force. Section 3 of the Provincial Insolvency Act 1920 in clear terms provides that the Court having jurisdiction under the Act would be the District Court. There is thus no warrant for the contention that the High Court can also entertain any proceedings under the Provincial Insolvency Act, 1920.
4. Learned counsel for the petitioner has however argued as section 2 (b) of .Act V of 1920 refers to Insolvency (Karachi Division and Dacca) Act, 1909 under which the Bench of Sindh and Balochistan High Courts has jurisdiction to entertain proceedings, the Lahore High Court can also entertain any application filed under the Provincial Insolvency Act, 1920. This argument, to say the least, is wholly misconceived and proceeds upon misinterpretation of the relevant provisions of two statutes.
Section 2(b) of the Provincial Insolvency Act, 1920 read as under:-- "'District Court' means the Principal Civil Court of original jurisdiction in any area (outside the limits of the ordinary original civil jurisdiction of the High Court of Sindh as defined in section 2 of the Insolvency (Karachi Division) Act".
' Section 3 of the Insolvency (Karachi Division and Dacca) Act, 1909 is in the following terms: "The Courts having jurisdiction under this Act shall be the Bench of the (Sindh and Balochistan High Courts)."
It is true that in the definition of District Court as contained in section 2 (b) of the Provincial Insolvency Act, 1920 reference has been made to section 2 of the Insolvency (Karachi Division and Dacca) Act, 1909 but that is only for the purposes of excluding from the purview of Act V of 1920 those areas which fall within the jurisdiction of the Sindh High Court. This provision can by no stretch of imagination be construed so as to vest such jurisdiction in this Court also. There cannot be any manner of doubt that the Principal Civil Court of original jurisdiction is the District Court and not this Court.
5. This conclusion is fortified by reference to various other provisions of the Act including section 75 of Act V of 1920 which vests appellate jurisdiction in this Court.
6. It will also be seen that though under section 3 of Act V of 1920, the Court which has the jurisdiction is the District Court but under proviso to the aforesaid section the Provincial Government is authorised to delegate this power to any Court subordinate to the District Court. In the exercise of this power, the Provincial Government by a notification vested the powers with all Civil Judges in the Province of Punjab. However, in Chapter IV of Volume II of the Rules and Orders framed by the Lahore High Court, it is provided that only those Civil Judges are - to take cognizance of the proceedings under the Provincial Insolvency Act, 1920 who are expressly permitted by the High Court to do so. This Court has been issuing notifications from time to time and the latest on the subject bears No, 316 JOB-II (1)/XV.A.13 dated 26-10-1995 wherein it is directed that with respect to District Lahore Mr. Muhammad Din Basra, Judge Small Causes Court, Lahore shall exercise the powers under the Provincial Insolvency Act, 1920.
7. It follows from the above discussion that the application has wrongly been presented to this Court and it should have been filed in the Court of Mr. Muhammad Din Basra, Judge Small Causes Court, Lahore. It shall be returned to the petitioner for presenting it to the appropriate Court.