Mumtaz Industries vs Industrial Development Bank of Pakistan

IN THE FEDERAL SHARIAT COURT

( O rig in a l J u ris d ic tio n )

PRESENT:

H O N .M R .JU STIC E DR.TANZIL-UR-RAHM AN - CHIEF JU STICE

H O N .M R .JU STIC E D R .FID A MUHAMMAD KHAN

H O N .M R .JU STIC E NAZIR AHMAD BHATTI

1. SHARIAT PETITIO N N O .104/L OF 1991

M /s. Mumtaz I n d u s tr ie s P e titio n e r th r o u g h its M an ag er

V e rsu s

I n d u s tr ia l D evelopm ent __ R e s p o n d e n ts B an k o f P a k is ta n e tc .

C ounsel fo r th e p e titio n e r M r.K hadim Nadeem Malik, A d v o cate D ate o f In s titu tio n 7-10-1991

2. SHARIAT PETITIO N N O .105/L OF 1991

M /s.M um taz I n d u s tr ie s ... P e titio n e r V e rsu s

A llied B a n k o f P a k is ta n ... R e s p o n d e n ts e tc .

C o u n sel fo r th e p e titio n e r ... M r.K hadim Nadeem M alik, A d v o cate D ate o f In s titu tio n ... 7-10-1991

D ate o f h e a rin g 2-2-1992

D ate o f d ecisio n 2-2-1992

-o -

S.P.NO.105/L/1991

JUDGMENT:

D R.TANZIL-UR-RAHM AN, CHIEF JU S T IC E . - T h is

P e titio n w as a d m itte d on 16-12-1991 to r e g u la r h e a r in g to exam ine p ro v is io n of s e c tio n 35 o f C ivil P ro c e d u re C o d e, 1908, w h e th e r o r n o t th e s a id p ro v is io n is r e p u g n a n t to th e In ju n c tio n s o f Islam .

A n o tice to th e r e s p o n d e n t G o v ern m en t was is s u e d on 24-12-1991 w hich a p p e a rs to h a v e b e e n re c e iv e d on 26-12-1991 b u t n e ith e r a n y w ritte n s ta te m e n t h a s b e e n file d n o r a n y o n e is p r e s e n t on b e h a lf o f th e r e s p o n d e n t G o v e rn m e n t. P e rh a p s in view o f o u r d e ta ile d ju d g m e n t d a te d 14-11-1991 in S h a ria t P e titio n N o .30/1 o f 1990 ( D r.M ehm oodur R ahm an F a isal V s. F e d e ra tio n o f P a k is ta n a n d o t h e r s ) , on v a rio u s law s in c lu d in g v a rio u s p ro v is io n s o f C ivil P ro c e d u re C od e, 1908, it a p p e a rs th a t th e co n cev n ed G o v ern m en t m ight n o t h a v e lik e d to c o n te s t th e m a tte r.

2.L e a rn e d c o u n se l fo r th e p e titio n e r h a s in v ite d o u r a tte n tio n to s e c tio n 35(3) o f C ivil P ro c e d u re C o d e, 1908, w hich e n v is a g e s th e a w a rd in g o f c o st w ith in te r e s t a t a r a te n o t e x c e e d in g 6% p e r an n u m . It seem s a d v a n ta g e o u s to re p ro d u c e th e said p ro v is io n o f law w hich re a d s as u n d e r :-

"3 5 (3 ) T h e C o u rt may give in te r e s t on c o s ts a t a n y r a te n o t e x c e e d in g six p e r c e n t, p e r an n u m , an d s u c h in te r e s t s h a ll b e a d d e d to th e c o sts a n d sh all b e re c o v e ra b le as s u c h " .

3.F o r th e d e ta ile d re a s o n s s ta te d in o u r a fo re sa id

6.P.NO.105/L/91 - 3 -

ju d g m e n t d a te d 14-11-1991, we d e c la re th a t th e ab o v e p ro v isio n o f s e c tio n 3 5 (3 ) o f C ivil P ro c e d u re C o d e, 1908, is r e p u g n a n t to th e In ju n c tio n s o f Islam as laid dow n in th e Holy Q u r'a n a n d S u n n a h o f th e Holy P ro p h e t (f-L -j ). T he P e titio n is a c c e p te d to th e e x te n t o f re p u g n a n c y o f in te r e s t on c o s ts .

4.T h e ab o v e ju d g m e n t will ta k e e ffe c t a f te r six m onths from to d a y a n d u n le s s th e p ro v is io n r e la tin g to in te r e s t is d e le te d , it will c ea se to b e e ffe c tiv e on th e e x p ir y o f th e a fo re sa id p e rio d o f six m o n th s.

(Dr. . . ___ __ , C h ief J u s tic e

( D r.F id a Muhammad K han ) ( N azir Ahmad B h a tti ) Ju d g e Ju d g e

A p p ro v e d fo r r e p o r tin g .

CHIEF JU STIC E

Isla m a b ad , th e 2nd F e b r u a r y , 1992.

N a se e r.