Tuesday, 13 August 2013

Agent without Power of Attorney is not an Agent


PLJ 2011 Peshawar 97
Present: Syed Sajjad Hassan Shah, J.
TAHIR MEHMOOD AFRIDI--Petitioner
versus
MUHAMMAD DAYAR--Respondent
C.R. No. 659 of 2010 with C.M. No. 704 of 2010, decided on 27.9.2010.
Civil Procedure Code, 1908 (V of 1908)--
----O. V, Rr. 9, 10, 10-A, 12, 16 & 18--Mode of service--Ex-parte decree--Setting aside of--Counsel attending the Court without power of attorney--Neither correct address of the defendant/petitioner was filed nor expenses deposited for issuance of proclamation as was directed by trial Court--Proceedings procuring the service of petitioner conducted in mode and manner not provided under the law--Counsel attended the Court in the proceedings on behalf of the defendant was without any power of attorney--Proceedings were unlawful and without jurisdiction--Validity--Although before setting in service the process of proclamation in newspaper had been directed to be made of service was the personal service of the defendant as required under Order V, Rules, 9, 10, 10-A, 12, 16 & 18 of CPC to be procured not adhered to the service through the means found impossible then the Court shall invoke the provisions of Rules, 17 & 20 of CPC.    [Pp. 101 & 102] A
Civil Procedure Code, 1908 (V of 1908)--
----O. V, R. 17--Ex-parte decree--Setting aside of service of summons--Reasonable diligence--After the serving official cannot find the defendant and when there is no agent to accept the service of summons on his behalf the serving official then shall affix the copy of summons on the outer door and some other conspicuous part of the house in which the defendant ordinarily residence or carries on business--No notice through registered post was directed to be sent to the defendant, however, there was no report of process serving agency that in ordinary way, the service of the defendant was impossible--Process of service declared unlawful and ex-parte decree was set aside.      [Pp. 102 & 103] B & D
Civil Procedure Code, 1908 (V of 1908)--
----O. IX, R. 20--Ex-parte--Purpose of avoiding service or summons could not be served in ordinary way--Modes of service--Plaintiff had failed to comply with the direction of the Court and the Court had under misconception and without adhering to provision of law passed the direction for publication in press under Rule 20 of Order IX of CPC, thus violated the mandate directed at law by trial Court.     [P. 102] C
1985 SCMR 1228, ref.
Civil Procedure Code, 1908 (V of 1908)--
----O. V, R. 25--Mode of service--Service where defendant resides out of Pakistan, and has no agent--Suit for recovery of outstanding amount--Ex-parte, decree--Setting aside of--Counsel attended the proceedings on behalf of defendant was without any power of attorney--Proceedings carried out by counsel were unlawful and without jurisdiction--Validity--No service of defendant had been proved by testimony of the concerned official, no witness was cited on summon produced on the record, thus process of service conducted against the law, the ex-parte decree was passed--Even, if the son had been informed about the pendency of the suit it does not amount due service in the eyes of law, because no efforts were made to locate and find out the defendant in person, in absence, thereof, service on the number of the family was not a proper and valid service as required under the law--Mere knowledge of defendant that plaintiff had instituted suit against them would not by itself constitute as service on them unless they themselves waive service of summon on them which fact must be borne out from record of case--Ex-parte decree was set aside and it was held that same was without due service of notice on defendant--Ex-parte decree was set aside and case was remanded.          [Pp. 103 & 104] E & F
1992 CLC 1553, NLR 1996 (Civil) 166 & NLR 1992 CLJ 40, ref.
Mr. Hassan Afridi, Advocate for Petitioner.
Mr. Khalil Ullah, Advocate for Respondent.
Date of hearing: 10.8.2010.
Judgment
Tahir Mehmood Afridi, the petitioner by way of instant revision petition challenged the judgment and order passed by the learned District Judge Kohat dated 8.3.2010, whereby, the judgment and order dated 9.1.2010 passed by the learned Civil Judge-XI, Kohat, whereby the application made for setting aside the ex-parte decree was dismissed.
1.  Brief facts leading to the instant litigation are that:--
Muhammad Dayar, the plaintiff/respondent filed a suit against Tahir Mehmood Afridi, the defendant/petitioner seeking decree for recovery of outstanding amount of Rs. 7,45,000/- against the defendant/petitioner as the defendant/petitioner has failed to return the same within a stipulated time. The matter was decided by Jirga on 17.2.2005 to the effect that the defendant/petitioner acknowledged the payment of Rs. 4,90,000/- but rest of the amount was objected to, as without any justification, not payable by the defendant/petitioner, the defendant/petitioner was summoned by learned trial Court vide summons dated 27.6.2005, bailiff reported that the defendant/petitioner has proceeded to abroad (Sri Lanka) in connection with his employment. On 2.7.2002 learned trial Court directed the plaintiff/respondent to file the correct address and the postal envelope alongwith A.D. Card, but the plaintiff/respondent did not comply with the direction of the Court, made an application for issuing proclamation in the newspaper. The learned trial Court accepted the application, directed the proclamation be made in the "Daily News", but the order dated 18.11.2005, reveals that plaintiff/respondent in his application stated that the defendant/petitioner residing within the territorial jurisdiction of this Court and willfully avoiding the service of summons, therefore, the publication be made in the Daily Mashriq, the application accepted and order as per request of the plaintiff/respondent passed for publication in the daily news paper. In pursuance to publication, ex-parte proceedings were initiated against the defendant/petitioner on 7.12.2005, however, on 19.12.2005 ex-parte evidence was recorded. One Sardar Ali Khan, Advocate submitted his memo of appearance on behalf of defendant/petitioner and made an application for setting aside the ex-parte proceedings and was directed to file wakalatnama on behalf of defendant/petitioner on 1.2.2006. The said counsel again appeared on 16.2.2006, filed an application for setting aside the ex-parte decree, which was accepted at payment of cost as Rs. 3000/-, thereafter, the same counsel was directed to file duly signed wakalatnama alongwith the written statement otherwise, ex-parte proceedings would be initiated as directed by the Court.
On 15.3.2006 Sardar Ali, Advocate again attended the Court but without written authority in his name, thus no written statement was filed, therefore, the defendant/petitioner was proceeded ex-parte, whereof the ex-parte evidence was recorded and the case was fixed for arguments on 7.4.2006, the ex-parte decree was passed on 18.4.2006.
The defendant/petitioner made an application for setting aside the ex-parte decree dated 27.7.2006, on the second day of his arrival from abroad, enclosed the copy of his passport, wherefrom it is evident that the arrival of defendant/petitioner in Pakistan was recorded as 26.7.2006, the same is Ex.PW-1/1 to Ex.PW-1/3, in his application he has totally denied the knowledge of pendency of the suit or receipt of any summons. He further contended that for the last three years, he in connection with his employment is out of the country i.e. Dubai, Malaysia, Bangkok, he also asserted that he neither appointed attorney nor engaged any advocate to conduct his case nor he was informed about the pendency of the suit, by anyone else, on his arrival in Pakistan, he came to know by his son about the ex-parte decree.
The application was contested by the plaintiff/respondent by filing his replication. In support of application, the defendant/petitioner was examined as PW-1, the statement made on Oath about the facts recorded in the application. RW-1 Mir Bacha was examined as attorney of the plaintiff/respondent, Sardar Ali was examined as CW-1, eventually, the application filed by the defendant/petitioner was dismissed vide order dated 3.1.2010, an appeal was filed to assail the judgment and order of learned trial Court, same was also dismissed, hence the present revision petition.
2.  The learned counsel appearing on behalf of defendant/petitioner argued that the plaintiff/respondent has filed a false and baseless claim against the defendant/petitioner and put all efforts to procure the ex-parte decree in his favour. He further argued that the plaintiff/respondent made misstatement, whereof, learned trial Court has also on account of misconception, created by the plaintiff/respondent, proceeded with the case and has not adhered to the provisions contained in Order 5 of the C.P.C. The learned counsel further argued that the ex-parte decree haphazardly passed by the learned trial Court, without its satisfaction and recording reasons for proceedings ex-parte against the defendant/petitioner, however, the proceedings procuring the service of dependant/petitioner conducted in the mode and manner not provided under the law. According to learned counsel, Mr. Sardar Ali, Advocate was attending the Court in the proceedings of the case, on behalf of the defendant/petitioner was without any power of attorney, therefore the proceedings carried out by Sardar Ali were unlawful and without jurisdiction and the result of the collusion of the plaintiff/respondent. The learned counsel also pressed into service the provisions of Section 13 of the Limitation Act, as admittedly the defendant/petitioner was not present in his house and was out of country, therefore, he is entitled, for the benefit available under the law. He placed reliance on 1985 SCMR 1228, 1992 CLC 1553, NLR 1986 (Civil) 106.
3.  The learned counsel for plaintiff/respondent strenuously controverted the arguments of learned counsel for the defendant/ petitioner, he argued that Sardar Ali, Advocate filed memo of appearance as per direction of the defendant/petitioner, although filing of the memo of appearance is permissible under Order III, Rule 5 of the C.P.C., he made an application for setting aside the ex-parte decree, which was accepted but has failed to file the written statement, therefore, again ex-parte decree was passed against the defendant/petitioner. He further contended that the defendant/petitioner was fully aware of the suit proceedings, his son was duly informed by the bailiff of the Court. According to learned counsel the service of the son is considered to be the service of his father. He further contended that the application is hopelessly time barred, no application under Section 5 of the Limitation Act made for condonation of delay and no affidavit appended with the application. Moreso, the memo of appearance was not challenged by the defendant/petitioner and no proceedings were initiated against Sardar Ali, Advocate. While concluding his arguments learned counsel placed reliance on 2005 SCMR 609.
4.  Arguments of learned counsel for the parties considered, record carefully perused.
5.  The summons were issued to procure the attendance of defendant/petitioner, but as per report of bailiff of the Court, the defendant/petitioner was not present in his house, as he proceeded out of the country in connection with his employment. The alleged report dated 22.06.2005 made as per information furnished by Kinan Shah son of defendant/petitioner, but the same was not signed by the son of the defendant/petitioner, no body stood witness to said report, moreso, the report made on summons not proved by examination of the author, but the learned trial Court believed the alleged report of the bailiff, pursuance thereto, on 2.7.2005, passed an order for furnishing correct address of the defendant/petitioner alongwith postal envelope and AD Card. But the order has not been complied with, however, on the application made by the plaintiff/respondent, directed the proclamation in the "The Daily News". On 18.11.2005 the date fixed for attendance of the defendant/petitioner but neither the correct address of the defendant/petitioner filed nor the expenses deposited for issuing proclamation, as was directed by the learned trial Court. It is evident from perusal of said order sheet that application was made by the plaintiff/respondent, wherein, he has stated that "the defendant/petitioner is residing within the jurisdiction of this Court and willfully avoiding the process of service directed by the Court, so the publication be made in the "Daily Mashriq".
6.  In view of the above statement of plaintiff/respondent, it can be alluded that he was in the knowledge of address of the defendant/ petitioner, thus willfully avoided to furnish the same, this is the obvious violation of Order V, Rules 9, 10 and 10A of the C.P.C. because the plaintiff/respondent was bound to furnish the correct address alongwith AD Card for service by post of the defendant/petitioner, this mode of service is required for the reason that if the defendant/petitioner is residing at his house, he can be informed by means of service by post. But at the very outset, on the misstatement of the plaintiff/respondent, the proclamation has been directed to be made in the Daily Mashriq, although before setting in service the process of proclamation in News Paper,  the  requirement  of  law that first mode of service is the personal service of the defendant/petitioner as required under Order V, Rules 9, 10, 10A, 12, 16 and 18 of the C.P.C. to be procured not adhered to the service through said means found impossible, then the Court shall invoke the provisions of Rules 17 & 20 of the C.P.C.
7.  In this case the statement was made by the plaintiff/respondent that the defendant/petitioner is willfully avoiding service although he is present at his house. After using due and reasonable diligence, if the serving official cannot find the defendant/petitioner and when there is no agent to accept the service of the summons on his behalf, the serving official then shall affix the copy of summons on the outer door and some other conspicuous part of the house in which the defendant ordinarily resides or carries on business. The record demonstrates that the direction passed to procure the service of defendant/petitioner in terms of Rule 17 of Order V of the C.P.C. not after having been satisfied that there were sufficient reasons existed to believe that the defendant was keeping out of the way for the purpose of avoiding service or summons could not be served in the ordinary way then the Court to have passed an order for service of summons by substituted service. That also includes the publication in press, besides other modes of service. In this case, the plaintiff/respondent has failed to comply with the direction of the Court and the Court has also under misconception and without adhering to the above said provisions of law passed the direction for publication in press under Rule 20 of Order IX of the C.P.C., thus violated the mandate directed at law by the learned trial Court. In this aspect of the matter, a reference can be made to a case titled Syed Muhammad Anwar, Advocate versus Sheikh Abdul Haq reported as 1985 SCMR 1228, wherein, it is held that:--
Civil Procedure Code (V of 1908)--
--O. V, Rr. 17, 20 & O. IX, R. 13, Proviso--Ex-Parte decree--Setting aside of--Service of summons--Application for setting aside ex-parte decree filed after period of limitation--Court ordering substituted service on defendant having formed opinion that it was not possible to have defendant served in ordinary way--Opinion not supported on basis of record--Failure to record finding about defendant's keeping out of way for purposes of avoiding service--Ordinary ways of service of summons not resorted to--Irregular service of summons not to be treated as "due service" for purposes of Limitation Act, 1908--Proviso to O.IX, R. 13, C.P.C. not to cover illegality in service of summons--Defendant having no knowledge of Date of hearing when ex-parte decree was passed against him, belated application for setting aside ex-parte decree, held, not time barred--Supreme Court allowing defendant's appeal, setting aside High Court's order passed in revision petition, and restoring order of trial Court by which ex-parte decree was set-aside--Parties directed to appear before trial Court.
In the cited case twice, it was reported by the bailiff of the Court that the defendant has gone out of Lahore, moreso, no notice through registered post was directed to be sent to the defendant, however, two reports have not been considered as sufficient compliance of the rules ibid and there was no report of process serving agency that in ordinary way, the service of the defendant was impossible. Moreover, in the cited case, the trial Court had failed to record findings about the defendant's keeping out of way for the purpose of avoiding service, therefore, the process of service declared unlawful and the ex-parte decree was set-aside.
8.  Since no due service has been effected in the instant case in the manner prescribed under the law, as the proclamation made in violation of law and that too in the "Daily Mashriq" for procuring the service of a person residing in Sri Lanka, not adopted the proper mode of service. Notwithstanding, no service of the defendant/petitioner has been proved by the testimony of the concerned official, no witness was cited on the summon produced on the record, thus the process of service conducted against the law, the ex-parte decree was passed. Even, if the son has been informed about the pendency of the suit it does not amount due service in the eye of law, because no efforts were made to locate and find out the defendant/petitioner in person, in absence thereof, service on the member of the family was not a proper and valid service, as required under the law. Reference can be made of a case titled "Dharam Chand Gain versus Kanak Sarkar, reported as AIR 1921 Calcutta 63, relevant citation reproduced as under:
"The statute does not require that the enquiry should be confined to the son of the defendant or to a person related to him. An attempt could easily have been made to find, out the defendant by an enquiry from his neighbors or other person. The District Judge has not also found whether the son was an adult male member of the family residing with him. The findings are thus insufficient to justify the decree, for it is essential that the requirements of the Statute in these matters should be strictly carried out".
9.  When the defendant/petitioner is reported to have gone out of the country then the service is to be effected in terms of Order V, Rule 25 of the C.P.C, for convenience sake, reproduced as under:
O.V, R. 25--Service where defendant resides out of Pakistan, and has no agent.--Where the defendant resides out of [Pakistan] and has no agent in [Pakistan] empowered to accept service, the summons shall [except in the cases mentioned in Rule 26-A] be addressed to the defendant at the place where he is residing and sent to him by post, if there is postal communication between such place and the place where the Court is situate.
10.  Moreso, in a case titled NBP versus Bawani Industries and another reported as 1992 CLC 1553 in similar circumstances, it was head that:--
(b)        Civil Procedure Code (V of 1908)--
--O. V, R. 20--Substituted Service--Defendant being out of Pakistan, substituted service on him through publication in a local newspaper could not be treated as sufficient service-Defendant would be taken to have not been duly served as per provision of O.V, R.20, Civil Procedure Code, 1908.
11.  While discussing the provisions contained in Order V, Rule 20 of the C.P.C. it was held in Haji Kiramat Hussain versus Naik Khan Muhammad, reported as NLR 1996 (Civil) 106, head note `a & b' reproduced as under:--
(a)        Civil Procedure Code (V of 1908)--
--Order V, Rule 20--Notice to defendant residing in England once issued but not served--Nothing on record to suggest that defendant was avoiding service--Held: Substituted service could not be ordered in such a situation and it being demonstrably false was void.
(b)        Substituted service--
--Compliance with rules contained in O.V, CPC is essential before resorting to substituted service--Knowledge of institution of suit derived aliunde by defendant--Does not warrant order for substituted service after dispensing with proper service of summons-All available steps to effect proper service must be made before resort is made to substituted service through publication.
12.  In similar circumstances, the decree was set-aside, on the ground that mere knowledge of defendant that plaintiff had instituted suit against them would not by itself constitute as service on them unless they themselves waive service of summon on them which fact must be borne out from record of case, therefore, the ex-parte decree was set-aside and it was held that same was without due service of notice on defendants. In this regard, reference can be made to the case titled "Javed Raza versus Razi Ahmed, etc", reported as NLR 1992 CLJ 40, head note `a' reproduced as under:--
 (a)       Civil Procedure Code (V of 1908)--
--Order V, Rule 20, substituted service of defendants would not be warranted in a case where there is nothing in plaintiff's application u/R. 20 that he does not know any other address of defendants. Substituted service can be resorted to only when conditions warranting it exist and strict compliance is made of Rule 20.
13.  In view of above-referred legal and factual plane of the instant matter, it is crystal clear that no due service of defendant/petitioner was procured, thus, ex-parte proceedings, whereof, the judgment and decree passed by the learned trial Court and maintained by the learned appellate Court, being unlawful, without jurisdiction, hereby, set-aside, the suit is remanded back to the learned trial Court and deemed to be pending. The learned trial Court is directed to proceed in the matter in accordance with law, providing opportunity of hearing to both the parties, and then to decide the suit within a period of not later than six months positively, alter receipt of the record.
(R.A.)  Case remanded.