AHMED vs REHMAT ALI Ss — 2024 PLD 305 KARACHI-HIGH-COURT-SINDH

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AHMED VS REHMAT ALI Ss. 42 & 55---Civil Procedure Code (V of 1908), S. 35-a & O.XLI, R.33---Suit for declaration and permanent injunction in respect of immoveable property---Compensatory cost, imposition of---appellate Court, powers of---Petitioners filed a suit for declaration and permanent injunction which was decreed by the Trial Court---First appellate Court dismissed the suit and imposed compensatory cost of Rs. 500,000---Validity---applicants alleged that the appellate Court lacked the authority under Ss. 35 & 35-a of the C.P.C. to impose compensatory costs of Rs. 500,000 on them---Language of the impugned judgment suggested that the appellate Court had acted under Ss. 35 & 35-a of the Code in imposing a compensatory cost on the applicants---However, according to subsection (2) of S. 35-a of the Code, the maximum compensatory cost limit was twenty-five thousand rupees---Earlier the maximum amount of the compensatory cost was Rs.5,000/- but it was substituted with twenty five thousand through an amendment introduced through Civil Laws (Reforms) act, 1994---In this case, the appellate Court had imposed a compensation of five lac rupees on the applicants, exceeding the maximum limit prescribed by law---Furthermore, as stipulated in S. 35-a read with O. XLI, R. 33 of the Code, the appellate Court was precluded from granting compensatory costs---In fact, such Section of the law empowered only the Trial Court to award compensatory costs to the successful party against the defeated party, provided the claim or defence was found to be false or vexatious, and the successful party had raised that plea at the earliest stage of the suit---Thus, the Court of appeal was not legally competent to award punitive or compensatory costs under S. 35-a read with O. XLI, R. 33 of the Code---Order of imposing compensatory cost was set-aside accordingly.

AHMED vs REHMAT ALI Ss — 2024 PLD 305 KARACHI-HIGH-COURT-SINDH

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