Tuesday, 13 August 2013

A Juristic Person can file suit


PLJ 2010 Lahore 164
Present: Ijaz-ul-Ahsan, J.
UNILEVER PAKISTAN FOODS LIMITED, KARACHI through its Company Secretary--Petitioner
versus
CHAIRMAN, ENVIRONMENTAL TRIBUNAL, GOVERNMENT OF PAKISTAN, LAHORE--Respondent
W.P. No. 22311 of 2009, decided on 17.11.2009.
Civil Procedure Code, 1908 (V of 1908)--
----O. XXIX, R. 1--Constitution of Pakistan, 1973, Art. 199--Constitutional petition--Subscription and verification of pleading--Question of--Pleading in legal proceedings initiated by a juristic person are required by law to be signed by Chief Executive of such juristic person and his name and particulars must also be mentioned in title of such pleadings--Directions to amend the title of appeal provide the present address of the factory of the petitioners--Challenge to--Validity--Pleadings in legal proceedings initiated on behalf of juristic persons can be signed by any person, authorized to do so under association of the company or authorized by its board of directors through a resolution passed by a board or authorized to be so through a general power of attorney. [P. 167] A
Companies Ordinance, 1984--
----S. 48--Civil Procedure Code, (V of 1908)--O. XXIX, R. 1--Direction to provide the present address of the factory of the petitioner--Challenge to--Purpose of filing of the appeal, the address of the registered office of the company given in title of the appeal was ordinarily sufficient--Validity--If the address of the factory/works of the appellant was required, the same had been provided in paragraph of the appeal--Petition was accepted.     [P. 168] B
Syed Ijaz Ali Sabzwari, Advocate for Petitioner.
Mr. Aamer Rehman, Deputy Attorney General for Respondent.
Date of hearing: 17.11.2009.
Order
The petitioner assails an order dated 26.10.2009, passed by the Environmental Tribunal Lahore (Impugned Order). Through the impugned order the petitioner was directed to amend the title of the appeal by inserting the words "through its Chief Executive (with full name)". The petitioner was also directed to provide the present address of the factory of the petitioner in the title of the appeal.
2.  It appears that the order in question has been passed on the assumption that pleadings in legal proceedings initiated by a juristic person are required by law to be signed by the Chief Executive of such juristic person and his name and particulars must also be mentioned in the title of such pleadings.
3.  The learned Tribunal appears to have overlooked the provisions of the Companies Ordinance, 1984 as well as those of and Order XXIX, Rule 1 read with Order III CPC, which provide for initiation of proceedings through authorized representatives. Order XXIX Rule 1 CPC provides as follows:--
1.    Subscription and verification of pleading.--In suits by or against a corporation, any pleading may be signed and verified on behalf of the corporation by the secretary or by any director or other principal officer of the corporation who is able to depose to the facts of the case. [underlining is mine].
Order III, Rules 1, 2 and 3 of the Code of Civil Procedure, 1908 postulate as follows:--
1.    Appearances, etc., may be in person, by recognized agency or by pleader.--Any appearance, application or act in or to any Court, required or authorized by law to be made or done by a party in such Court may, except where otherwise expressly provided by any law for the time being in force, be made or done by the party in person, or by his recognized agent, or by a pleader [appearing, applying or acting, as the case may be,] on his behalf.
2.    Recognized agents.--The recognized agents of parties by whom such appearances, applications and acts may be made or done are--
(a)   persons holding powers-of-attorney, authorizing them to make and do such appearances, applications and acts on behalf of such parties; [underlining is mine]
(b)   persons carrying on trade or business for and in names of parties not resident within the local limits of the jurisdiction of the Court within which limits the appearance, application or act is made or done, in matters connected with such trade or business only, where no other agent is expressly authorized to make and do such appearances, applications and acts.
3.    Service of Process on recognized agent.--(1) Processes served on the recognized agent of a party shall be as effectual as it the same had been served on the party in person, unless the Court otherwise directs.
      (2) The provisions of the service of process on a party to a suit shall apply to the service of process on his recognized agent.
In the Companies Ordinance, 1984 the term "officer" of the company has been defined as follows:--
2 (24) "Officer" includes any director or chief executive, managing agent, secretary or other executive of the company ............... [underlining is mine]
Section 48 of the Companies Ordinance deals with service of documents on the company. It would be useful to reproduce the said section:
Section 48: Service of documents on Company. A document may be served on a company or an officer thereof by sending it to the Company or officer at the registered office of the Company by post under a certificate of posting or by registered post or by leaving it at the registered office of the Company, [underlining is mine].
4.  The petitioner is admittedly a juristic person being a company limited by shares. It is registered as a company with the Securities and Exchange Commission of Pakistan under the provisions of the Companies Ordinance, 1984. It has its registered office at Avari Towers Fatima Jinnah Road, Karachi. The said address has been provided by the Company to the Securities and Exchange Commission of Pakistan for service of notices process etc. Any process served at the said office shall be deemed in law to be duly served, notwithstanding the fact where the company runs its business.
5.  Pleadings in legal proceedings initiated on behalf of juristic persons can be signed by any person (i) authorized to do so under the Articles of Association of the Company or (ii) authorized by its board of directors through a resolution passed in a duly convened meeting of such board or (iii) authorized to do so through a general power of attorney issued under the authority of Board of Directors given in a duly convened meeting of the Board.
6.  Perusal of the record indicates that a resolution of the Board of Directors of the petitioner company was passed on 24.07.2003. It was resolved that a general power of attorney be issued in favour of Mr. Amar Naseer, Company Secretary of the petitioner. Such power of attorney was subsequently issued and registered with the Registrar of Assurances at Karachi. Vide Items No. 13, 14,15 and 16, the Company Secretary of the petitioner was authorized to:--
13.  To institute, commence, prosecute, enforce, defend, answer, compromise, or oppose all actions, suits, petitions, appeals, arbitration proceedings, and other legal proceedings, actions and demands touching any matter in which the Company is or may hereafter be party, interested or concerned; and also, if thought fit, to compromise, withdraw, settle, refer to arbitration, mediation or conciliation, submit to judgment or become non-suited in any such matters, and to file such appeals and applications for review, revision or otherwise as the Attorney shall think fit.
14.  To accept service of any writ of summons notice or other legal process and to appear and represent the Company in any Court, tribunal authority commission or committee and before all magistrates, judicial, municipal revenue or other officers whatsoever as the Attorney may think fit.
15.  To sign and verify all plaints, written statements, affidavits, applications, answers, submissions, petitions, claims, objections memoranda of appeal and petitions and applications of all kinds and  to  file  or  submit  them  in  or  before  any  Court,  tribunal  authority commission or committee or arbitrator. To give evidence before any Court, tribunal authority commission or committee or office or arbitrator.
16. To appoint any legal practitioner, solicitor, pleader, legal counsel or advocate to appear and act for the Company and to represent the Company in any matter, and to sign and deliver letters of authority and vakalatnamas in favour of such persons; and to revoke any such appointment at any time at his pleasure. To appear as Legal Counsel/Attorney before any Court for the Company or its affiliates and subsidiaries as and when required.
7.  For the purpose of filing of the appeal, the address of the registered office of the company given in the title of the appeal is ordinarily sufficient. However, if the address of the factory/works of the appellant was required, the learned counsel has pointed out that the same had been provided in Paragraph No. 2 of the appeal.
8.  In passing the impugned order dated 26.10.2009, the aforesaid documents and their contents appear to have escaped the notice of the learned Environmental Protection Tribunal.
9.  In view of the above, this petition is accepted. The order dated 26.10.2009 passed by the Environmental Tribunal, Lahore in the appeal titled "Unilever Pakistan Foods Limited Vs. Environmental Protection Agency" is set aside. The learned Environmental Tribunal shall now proceed to decide the appeal on its merits.
(R.A.)      Petition accepted.