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1998 CLC 687

M. A. FAIZ BALUCH vs THE CHIEF COMMISSIONER (THE APPELLATE COURT),

Citation1998 CLC 687
CourtLahore High Court
Case No.Writ Petition No,2302 of 1997
Date1997-10-15
Judge(s)Raja Muhammad Khurshid
ResultPetition dismissed

ORDER

' This Constitutional petition is instituted under Article 199 of the Constitution of Islamic Republic of Pakistan, 1973, praying that the order, dated 14-7-1997 whereby the revision/application of the petitioner was dismissed and the order, dated 22-6-1993 be struck down and declared illegal and void ab initio.

2. It is contended that a Cooperative Society was brought into being through registration on 7-3- 1988 by one G.S. Khan with the name and style of Agricultural and Industrial Development Cooperative Society Limited (hereinafter referred to as the Society). The name of the petitioner was allegedly shown as Director fraudulently and on account of misrepresentation by the Promoters of the Society although the petitioner never opted to be its Director. The petitioner came to know about his Directorship in the company for which he raised the matter in the meeting of the Society held on 16-3-1988 and submitted his resignation which was allegedly accepted in the General Meeting held on 19.5-1988. Not only his resignation from the Directorship was accepted in the General Meeting but as a result of punishment his membership was also allegedly terminated.

3. In 1992 "Lone Commission" was set up to probe into the financial affairs of the Cooperative Societies/Financial Institutions. The management of the respondent Society was also summoned through notices by the Commission. However, the petitioner remained unconcern nor he was summoned by the Commission, as he was no more a member of the management.

4. On 12-5-1993, respondent No,4 submitted a report estimating the total loss of the Society to the tune of Rs,5,65,65,184 upon which a formal inquiry under section 43 of the Cooperative Societies Act, 1925, was ordered by respondent No,2. The petitioner was not associated with that inquiry nor any Reference was made to him in that respect. Although, the petitioner had allegedly resigned and ceased to be a member of the Society, yet he was proceeded in absentia with the result that he was neither communicated the result of inquiry under section 43 'ibid' nor was served with any notice whatsoever by any of the Inquiry Officers which was allegedly a clear violation of the law and the Rules. Consequently, the petitioner alongwith other Directors was proceeded against under section 50-A of the Cooperative Societies Act, 1925. Four of the Directors challenged the liability aforementioned in an appeal which was dismissed through a consolidated order, dated 13-10- 1994. Out of the aforesaid appellants, Mian Ghulam Abbas Qureshi filed Writ Petition No,629 of 1995 ,challenging therein the vires of the order passed by respondent No,1 and the same was decided in his favour vide order, dated 19-6-1996. However, it was specifically observed in the aforesaid judgment in the writ petition that it will not effect the liability of other Directors except that of Mian Ghulam Abbas Qureshi i,e,, the writ petitioner in that petition.

5. The petitioner allegedly received a notice under section 81 read with sections 80, 83, 172 and 181 of the Land Revenue Act, 1967, on 12-3-1996 whereby Assistant Commissioner (South), Karachi, was directed to effect the recovery of Rs,28,39,859 which was allegedly recoverable from the petitioner being a Director of the Society out of the total amount of Rs,5,65,65,184 which was held to be the liability of all the Directors severally and collectively.

6. The petitioner aggrieved of the aforesaid recovery proceedings, filed an appeal/revision on 29- 8-1996 challenging the validity of the impugned order, dated 22-6-1994 passed by respondent No,2 as a consequence of which notices for recovery were issued to him. The abovesaid appeal was allegedly dismissed vide an oral order, dated 14-7-1997 and that no certified copy of the same was provided to the petitioner. However, the petitioner assailed the aforesaid order before respondent No,1 in the first week of August, 1997; but the proceedings are yet pending and the next date of hearing is fixed for 29-11-1997, but no stay order has been granted to him as he had prayed that the operation of the order, dated 14-7-1997 be suspended.

7. Learned counsel for the petitioner has submitted that since the petitioner had resigned from the Directorship of the Society and his membership was also terminated, therefore, he had nothing to do with the affairs of the Society nor incurred any liability severally or collectively alongwith other Directors with whom he had no connection whatsoever after his resignation from the Directorship.

8. I would not like to touch the merits of the case at the moment because the petitioner has already challenged the order, dated 14-7-1997 allegedly passed verbally by respondent No,2 before respondent No,1 in proceedings instituted before him in the first week of August, 1997, and those proceedings are yet pending and are fixed for hearing on 29-11-1997. It is not disclosed in the petition itself regarding the nature of the proceedings pending before respondent A No,1 for the reasons best known to the petitioner. However, it is clear enough from the averments in paragraph 2.14 of the writ petition that those proceedings are fixed for hearing on 29-11-1997. As such, the petitioner is already pursuing efficacious and effective remedy before an appropriate forum chosen by him, therefore, the institution of the writ petition would be premature at this stage. The same is, therefore, dismissed in limine being premature with the observation that respondent No,1 shall proceed with the matter pending before him expeditiously and will decide the same within two months.

' Civil Miscellaneous Nos.6786 and 6787/97.

9. Disposed of with the disposal of the main petition. revisions by the competent authorities. Therefore, it is advisable to consult the official sources or legal professionals for the most up-to-date and accurate information.

Cited by 2 cases

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