Tuesday, 13 August 2013

An agent do not become co-owner on the bases of Power of Attorney


PLJ 2011 SC (AJ&K) 17
[Review Jurisdiction]
Present: Syed Manzoor Hussain Gilani, A.C.J. and Ch. Muhammad Ibrahim Zia, JJ.
Haji NAZEER AHMED--Petitioner
versus
Raja MUHAMMAD SAEED KHAN and 11 others--Respondents
Civil Review Petition No. 4 of 2007, decided on 1.2.2007.
(In the matter of review from the judgment of this Court dated 9.1.2007 in Civil Appeal No. 92 of 2005)
Supreme Court (Power of Review) Act, 1980--
----S. 2--AJ&K Interim Constitution Act, 1974--Scope of review--Jurisdiction--Supreme Court (Power of Review) Act, empowers the Supreme Court to review its judgment within the scope prescribed by rules.            [P. 21] A
Civil Procedure Code, 1908 (V of 1908)--
----O. XLVII, R. 1--Supreme Court (Power of Review) Act, 1980, S. 2--Scope of review--In criminal cases review can only be made if an error is apparent on the face of record, but in cases the scope of review is broader--A judgment can be reviewed in civil proceedings on the grounds similar to those mentioned in Order XLVII, Rule 1 of CPC.      [P. 21] B
Review--
----Scope of review--Civil cases--For enunciation of principle of law--Review is justified--In civil case the scope of review is justified--In civil case the scope of review is wider than the criminal cases--In a civil case if a mistake or error apparent on the face of record or any other sufficient reason is discovered which calls for review, then review jurisdiction may be exercised for avoiding injustice, but such depends upon the facts and circumstances of each case.          [P. 21 & 22] C
Power of Attorney--
----Not co-owners or co-sharers in property--Validity--Although he was attorney of these co-owners, but an attorney cannot become owner of the property on the basis of power of attorney. [P. 22] D
Transfer of Property Act, 1882 (IV of 1882)--
----S. 118--Gift-deed--Ownership of the plot was not transferred to co-owner of land--Execution of exchange-deed on or before filing of suit--Exchange-deed properties were never exchanged--No exchange was effected--Validity--To make a transaction exchange, the mandatory legal requirement is to mutually transfer ownership of one thing for ownership of another thing and if it is proved that the ownership of a thing is not transferred to other person, then it cannot be called exchange.    [P. 23] E
Words and Phrases--
----Apparent--For appreciation of term apparent on the face of record, it will be useful to reproduce definition of words "apparent and appear on face" as given in Blacks Law Dictionary, Sixth Edition.   [P. 23] F
Appreciation of Documentary Evidence--
----Cogent documentary evidence was not discussed in the judgment--Rather the judgment was totally silent in this regard which clearly proves that this cogent evidence remained unattended by the Court. [P. 24] G
Exchange-deed--
----Appreciation of documentary evidence--Properties mentioned in alleged exchange-deed were not exchanged between the parties, therefore, the alleged exchange-deed was not exchanged according to law.           [P. 25] H
Quantum of proof in civil cases--
----Principle of law--Question of--Whether cumulative effect of such material creates preponderance of probability--Validity--Quantum of proof in civil cases is different as compared to criminal cases--Held: In civil cases only preponderance of probability is to be seen to record findings in favour of parties as compared to criminal cases where offence is to be established beyond reasonable doubt--In a civil case the Courts have to see cumulative effect of all the material placed on record and if such material creates preponderance of probability in favour of party that party must win the case.            [P. 25] I & J
PLJ 1982 SC (AJK) 116, fol.
Transfer of Property Act, 1882 (IV of 1882)--
----S. 119--Valid exchange must be mutual transfer of "ownership" of property by two persons--Where a deed shows transfer of property by one of the parties only and not by the other, the transaction cannot be regarded as exchange--Requirements for valid exchange as per S. 119 of Transfer of Property Act, are registration of document and transfer of the possession.       [P. 27] K
Exchange-deed--
----Failed to prove of delivery of possession--Document was executed with mala-fide design--Direct evidence was neither available nor was possible--Validity--Supreme Court had no hesitation in concluding that exchange deed executed was not bona fide and the same was in fact a sale, therefore, findings were hereby reversed and it was declared that exchange deed was sale deed.    [P. 28] L
Preferential Right--
----Findings recorded by First Appellate Court were correct, therefore, it was held that appellant had preferential right of prior purchase.          [P. 28] M
Petitioner in person.
Mr. M. Tabassum Aftab Alvi, Advocate for Respondent No.1.
Date of hearing: 20.4.2010.
Order
Ch. Muhammad Ibrahim Zia, J.--This review petition is filed against the judgment of this Court dated 9.1.2007.
2.  The brief facts, which led to the filing of present review petition, are that proforma-Respondents No. 2 to 12 (hereinafter to be referred as Party No. 1) were owners of land comprising Khewat No. 25, Khasra Nos. 24 and 27, measuring 4 Kanals, 2 Marlas, situate in village Arja, Tehsil Dhirkot, District Bagh. Raja Muhammad Saeed Khan, Respondent No. 1 (hereinafter to be referred as Party No. 2), was owner of land comprising Khasra No. 754, measuring 7 marlas, situate in village Ratta-Amral, Tehsil and District Rawalpindi. Both Parties No. 1 and 2 through alleged exchange-deed registered on 25.6.1999 exchanged with each other the above mentioned properties. The present petitioner filed a suit for declaration against the respondents in the Court of Sub-Judge Dhirkot on 23.10.1999, stating therein that the exchange-deed executed between Parties No. 1 and 2 is not exchange rather it is a sale and he is entitled to a decree for possession on the basis of right of prior purchase. The suit ultimately failed and the first appeal before the District Judge also met the same fate. However, the petitioner succeeded in second appeal before the High Court. Respondent No. 1 with the leave of the Court filed an appeal which was ultimately decided in his favour, thus the judgment and decree of the trial Court was upheld vide judgment under review dated 9.1.2007, which is the subject-matter of instant review petition.
3.  The petitioner appeared before the Court in person and stated that his counsel, Mr. Mujahid Hussain Naqvi, is avoiding to argue the case, whereas this review petition is pending before this Court since February 2007. It is regrettable that an advocate of Supreme Court is not adhering to the canons of profession after being engaged as counsel for a party. It is also very unbecoming on the part of advocate Supreme Court to avoid arguing of case which amounts to professional misconduct. As this review petition is pending since 2007, so any further delay is not justified because justice delayed is justice denied. Therefore we ourselves undertook to make minute perusal of record and make deep appreciation of all the points so that the party should not suffer for the negligence of his counsel.
4.  Mr. M. Tabassum Aftab Alvi, the learned counsel for Respondent No. 1, forcefully argued that the instant review petition is not maintainable because all the points raised in this review petition have been resolved by this Court in the judgment under review. He further argued that the petitioner has failed to make out any case for review because the scope of review is very limited. According to him review can only be accepted when there is some error apparent on the face of record, otherwise review petition is not maintainable. He vehemently argued that in the present case no such error apparent on the face of record is pointed out, therefore, this review petition is liable to be dismissed. He placed reliance on the cases reported as Zafar Iqbal vs. Allotment Committee of Municipal Committee Mirpur and others [1994 SCR 157], Rashida Awan vs. District Education Officer and 8 others [2007 SCR 406] and Abdul Qadir and 2 others vs. Abdur Rehman and 5 others [1999 SCR 323].
5.  In the light of averments of the petition as well as the arguments of learned counsel for Respondent No. 1, first of all we would like to consider, appreciate and resolve the scope of review. This Court has got review jurisdiction under Section 42-D of the AJ&K Interim Constitution Act, 1974, which speaks as under:
"Review of judgment or order by the Supreme Court.--The Supreme Court shall have power, subject to the provisions of an Act of the Assembly or the Council and of any rules made by the Supreme Court, to review any judgment pronounced or any order made by it."
In furtherance of this constitutional provision, The Supreme Court (Power of Review) Act, 1980 was made by the Assembly and Section 2 of the said Act speaks as under:
"The Supreme Court of AJ&K shall have power, subject to provisions of any law and of any rules made by the Supreme Court, to review any judgment pronounced or any order made by it."
This Act empowers the Supreme Court to review its judgment within the scope prescribed by rules. The Supreme Court of Azad Jammu and Kashmir framed rules called the Supreme Court Rules, 1978. Rule 1 of Order XLVI of Supreme Court Rules, 1978 lays down as under:
"Subject to the law and the practice of the Court, the Court may review its judgment or order in a civil proceeding on grounds similar to those mentioned in Order XLVII, Rule 1 of the Code, and in a criminal proceeding on the ground of an error apparent on the face of the record."
The aforesaid rule clearly speaks that in criminal cases review can only be made if an error is apparent on the face of record, but in civil cases the scope of review is broader. The Supreme Court Rules clearly lay down that a judgment can be reviewed in civil proceedings on the grounds similar to those mentioned in Order XLVII, Rule 1 of C.P.C., which is as follows:--
"Application for review of judgment.--(1) Any person considering himself aggrieved--
(a)        xxx xxx xxx xxx xxx xxx xxx
(b)        xxx xxx xxx xxx xxx xxx xxx
(c)        by a decision on a reference from a Court of Small Causes and who, from the discovery of new and important matter or evidence which, after the exercise of due diligence, was not within his knowledge or could not be produced by him at the time when the decree was passed or order made, or on account of some mistake or error apparent on the face of the record, or for any other sufficient reason, desires to obtain a review of the decree passed or order made against him, may apply for a review of judgment to the Court which passed the decree or made the order.
(2) xxx xxx xxx xxx xxx xxx xxx xxx."
The aforesaid provision of law empowers the Court to review its judgment if there is some mistake or error apparent on the face of record or for any other sufficient reason. The words "any other sufficient reason" empower the Court to review its judgment without any hesitation if the Court is satisfied that the conclusion drawn in the judgment or order under review was not legal or just one and the same may cause injustice to the legal rights of any party. In such a case, for doing complete justice and being the apex Court, for enunciation of principle of law to be followed by other Courts, review is justified. Therefore we hold that in civil cases the scope of review is wider than the  criminal  cases.  In  a  civil case if a mistake or error apparent on the face of record or any other sufficient reason is discovered which calls for review, then review jurisdiction may be exercised for avoiding injustice, but this depends upon the facts and circumstances of each case. We find support from a case titled Ghulam Akram and 5 others vs. Syed Shabbir Hussain Shah and 10 others [PLD 1986 SC(AJK) 56] wherein it was held as under:
"The second part of Rule 1 of Order XLVII of the Code of Civil Procedure contemplates the existence of a mistake or error apparent on the face of the record. Review, however, under this provision, can also be granted on any other sufficient ground."
6.  In the case in hand an exchange-deed, Ex."PA" was registered by Sub-Registrar Dhirkot on 25.6.1999 and the gift-deed, Ex. "DA" was registered by Sub-Registrar Rawalpindi on 18.5.2001. According to exchange-deed the co-owners of the property, comprising Khewat No. 25, Survey Nos. 24 and 27, total measuring 4 Kanals, 2 Marlas, situate in village Arja, Tehsil Dhirkot, are Sardar Khani Zaman, Muhammad Riaz Khan, Ghulam Sarwar Khan, Muhammad Nawaz Khan, Razia Begum, Khurshid Khan, Ejaz Khan, Arshad Mehmood Khan, Mst. Rehana Bilqees, Farzana Bilqees and Rukhsana Bilqees, whereas Basharat Abbasi and his son, Kashif Abbasi (the doner and the donee as mentioned in Ex."DA"), are not co-owners or co-sharers in this property. Although Basharat Abbasi is attorney of these co-owners, but an attorney cannot become owner of the property on the basis of power-of-attorney. According to the contents of exchange-deed the alleged exchange took place between the parties on 25.6.1999. The above named 11 co-owners allegedly exchanged their 4 Kanals, 2 Marlas of land, situate in village Arja, with 7 Marlas of land in the sole ownership of Raja Muhammad Saeed s/o Raja Muhammad Akbar Khan, situated in Ratta-Amral, Rawalpindi. The exchange was challenged by the petitioner/plaintiff in a suit filed on 23.10.1999. The important question to be resolved is whether before the filing of suit the ownership of properties allegedly exchanged has been transferred among the parties or not. There is some oral evidence produced by the parties, but according to celebrated principle of law the documentary evidence excludes oral evidence. The documentary evidence in the shape of registered deeds, Ex."PA" and "DA", has been brought on record by the parties. These documents are not only relevant, but are also cogent evidence on the subject-matter of the case.
7.  The gift-deed, Ex."DA" discloses that it was executed on 18.5.2001 and till that time the ownership/title of alleged exchanged property, 7 Marlas plot, remained with Raja Muhammad Saeed Khan s/o Raja Muhammad Akbar Khan, the second party of exchange-deed, which proves that the ownership of this plot was not transferred to co-owners of land (the first party in exchange-deed), situate in Arja, on the date of execution of exchange-deed or even on or before the filing of suit. The other reality unfolded by aforesaid document is that through this document the alleged exchanged plot was not transferred to co-owners (Party No. 1) or to any one of them, rather this plot is gifted by Basharat Iqbal Abbasi (attorney of Party No. 2), to his son, Kashif Basharat and that also not as exchange, but for consideration of love and affection for his real son. This deed also has determined the price of plot Rs. 2,80,000/- Both Basharat Iqbal Abbasi or Kashif Abbasi are not legally co-owners or co-sharers of the alleged exchanged property situated in village Arja, therefore, it is abundantly clear that through the alleged exchange-deed properties were never exchanged, therefore, no exchange was practically effected. Exchange is defined under Section 118 of the Transfer of Property Act in the following words:
"When two persons mutually transfer the ownership of one thing for ownership of another, neither thing or both things being money only, the transaction is called an `exchange'.
A transfer of property in completion of an exchange can be made only in manner provided for the transfer of such property by sale."
This statutory provision clearly lays down that to make a transaction exchange, the mandatory legal requirement is to mutually transfer ownership of one thing for ownership of another thing and if it is proved that the ownership of a thing is not transferred to other person, then it cannot be called exchange.
8.  The important aspect of this case is whether according to alleged exchange-deed the properties mentioned have practically and legally been exchanged or not? This moot point of the case escaped the attention of the Court and is not properly appreciated in the judgment under review which resulted into drawing of a conclusion contrary to the evidence. The combined reading and appreciation of documentary evidence, Ex."PA" and "DA", reveals that the mistake in the judgment under review is apparent on the face of the record. For appreciation of term "apparent on the face of the record" it will be useful to reproduce definition of words "apparent" and "appear on face", as given in Blacks Law Dictionary, Sixth Edition, which is as under:--
"Apparent. That which is obvious, evident, or manifest; what appears, or has been made manifest. That which appears to the eye or mind; open to view; plain; patent. In respect to facts, involved in an appeal or writ, of error, that which is stated in the record. See also Appear on face.
Appear on face. That which is clear and apparent from a reading of the document. A defect in process or venue which can be gleaned from examining the pleadings and which does not require going outside the record."
9.  It is amazing that the appreciation of important cogent documentary evidence is not discussed in the judgment under review; rather the judgment is totally silent in this regard which clearly proves that this cogent evidence remained unattended by the Court. It depicts that the material evidence was not considered and appreciated while delivering the judgment under review, therefore, we are of the opinion that this is another sufficient reason for acceptance of instant review petition. We are fortified by the following case law.
In Managing Director Sui Soutern Gas Company Ltd. Karachi vs. Ghulam Abbas and others [PLD 2003 SC 724] it was observed as under:
"Accordingly it is held that due to non-consideration of the documents referred to hereinabove, a case for the review of the judgment to the extent of petitioners' case has been made out. We are fortified in this behalf by the judgment in the case of Suba through legal heirs v. Fatima Bibi through legal heirs [1996 SCMR 158], wherein it has been held that "review petition would also be competent if something which is obvious in the judgment had been overlooked and that if it would have been considered by the Court, the final result of the case would have been otherwise."
In M/s. M. Y. Malik & Co. and 2 others vs. M/s. Spendlours International [1995 SCMR 922] the apex Court of Pakistan has held as under:--
"The above assertions appear to be correct and this Court in agreeing with the High Court to disallow the claim for Rs. 2,00,000 has done so by overlooking the some important pieces of evidence which were present on the record. The finding in this respect too, therefore, requires review.
Accordingly we would review our judgment dated 12.1.1991. to the extent that the amount of Rs.50,000 paid by the petitioners to Mrs. Azra Shaikh and the amount of Rs. 2,00,000 paid by them to Azam Qureshi are upheld with the result that the decree passed by the High Court in favour of the respondents to the extent of Rs. 9,97,672.30 is reduced to Rs. 7,47,672.30."
In Commerce and Industries Corporation Pakistan (Private) Limited vs. China National Machinery and Equipment Import and Export Corporation (Beijing) [2000 CLC 962] it was held as under:
"It follows from the above that there has been misreading and non-consideration of material evidence and the judgment under review suffers from errors floating on the surface of the record."
10.  Now we would like to advert to the authorities cited by the learned counsel for the respondents which are not helpful for him due to peculiar legal and factual points involved in them.
In Zafar Iqbal vs. Allotment Committee of Municipal Committee Mirpur and others [1994 SCR 157] it was held that finding of Court given in the appeal after considering the relevant material cannot be reviewed. The above referred case is not applicable to the case in hand because in this case the material evidence was not considered.
In Rashida Awan vs. District Education Officer and 8 others [2007 SCR 406] it was observed that the Court is open to consider the point in a review in the light of law or rule which has been ignored or not followed. This case is also distinguished from the case in hand.
In Abdul Qadir and 2 others vs. Abdur Rehman and 5 others [1999 SCR 323] having peculiar facts and law points, is also not applicable to the case in hand.
11.  As we have discussed the documentary evidence in detail and the deliberation and appreciation of a documentary evidence clearly proves that the properties mentioned in alleged exchange-deed were not exchanged between the parties, therefore, the alleged exchange-deed is not exchange according to law.
12.  The other important question is whether cumulative effect of this material creates preponderance of probability in favour of petitioner/plaintiff to win the case or what is the required standard of proof in civil cases. The quantum of proof in civil cases is different as compared to criminal cases. It is celebrated principle of law that in civil cases only preponderance of probability is to be seen to record findings in favour of parties as compared to criminal cases where offence is to be established beyond reasonable doubt. It therefore follows that in a civil case the Courts have to see cumulative effect of all the material placed on record and if such material creates preponderance of probability in favour of party, that party must win the case. Our this view is fortified from the following cases.
In Aksar Ali and 2 others vs. Fazal Karim and 11 others [PLJ 1982 SC (AJ&K) 116] it was observed as under:
"The ordinary classical requirement of adverse possession is that it must be adequate in continuity and in extent to show that it is a possession adverse to the competitors. A wrong notion, it appears, is entertained by the subordinate Courts that the quantum of proof in the civil cases is as much strict as is required in criminal cases. In fact it is not so. In civil cases only preponderance of probability is sufficient to record a finding in favour of the parties, while in criminal cases the offence must be established beyond reasonable doubts. It, therefore, follows that in civil cases the Courts have to see cumulative effect of all the material placed on record and if such material creates the preponderance of probability in favour of a party, that party must win the case." (Underlining is our)
In Ghulam Muhammad and another vs. Muhammad Ashraf and 2 others [PLD 1981 SC (AJK) 118] it was observed as under:--
"In the first instance it seems proper to know the standard of proof in criminal and civil cases. The rules of evidence for civil and criminal cases are, in general, identical, but some provisions in the Evidence Act are peculiar to criminal cases and others peculiar to civil cases. Thus, whereas in a civil case a mere preponderance of probability is a sufficient basis of decision, in a criminal case persuasion of guilt must amount to "such a moral certainty as convinces the minds of the Tribunal beyond all reasonable doubts". In a criminal case before a person can be convicted the Court has to satisfy itself that there is no possibility of his innocence. Where, therefore, there is no such moral certainty, and there is reasonable doubt as to the guilt of the accused, the benefit of doubt is to go to the accused. This means that the greatest possible care should be taken by the Court in convicting an accused. Unlike criminal cases, in a civil case all that is necessary to insist upon, is that the proof adduced in support of a fact is such that should make a prudent man to act upon the supposition that it exists and it cannot be said that the benefit to every reasonable doubt must necessarily be given to the defendant."
13.  When the above stated principle is applied to facts of the case in hand, consequently we reach the conclusion that the cumulative effect of the evidence produced by parties particularly the alleged exchange-deed registered on 25.6.1999 and the gift-deed registered on 18.5.2001 creates preponderance of probability in favour of plaintiff/ petitioner's assertion. The learned Judge of the High Court has exhaustively dealt with the matter in hand and rightly passed a decree in favour of petitioner. The observations of the learned Judge of the High Court are recorded on strong footings and are well reasoned. It will be useful to reproduce the same which read as under:--
"I have considered the arguments of the learned Advocates representing the parties and have given my anxious thought to the record of the case as well as the case law referred to and relied upon by them in support of their respective stand.
Before adverting to the evidence brought on the record and the arguments advanced on behalf of the parties, it is necessary to refer Section 118 of the Transfer of Property Act, which defines and deals with the "exchange" in the following words:--
`118. Exchange defined.--When two persons mutually transfer the ownership of one thing for ownership of another, neither thing or both things being money only, the transaction is called an `exchange'.
A transfer of property in completion of an exchange, can be made only in manner provided for the transfer of such property by sale.'
A perusal of the above reproduced section reveals that for a valid exchange there must be mutual transfer of "ownership" of property by two persons. Where a deed shows transfer of property by one of the parties only and not by the other, the transaction cannot be regarded as "exchange". The other requirements for valid exchange, as per Section 119 of the Transfer of Property Act, are registration of the document and transfer of the possession.
Judging the present controversy in light of the afore-reproduced provision of law and conditions, I am of the view that the conclusion reached by the Courts below is not sustainable. It is an admitted position that an exchange was executed between Respondent No. 1 and other respondents on 25.6.1999. The transfer of possession of the plot situated in Rata-Amral could not be proved by the respondents as the onus of proof was on them to prove that a valid exchange deed has been executed. The plot which was given in exchange to respondents No. 2 to 12 was gifted to Kashif Basharat by Basharat Iqbal who was attorney of Respondents No. 2 to 12, by gift-deed, executed and registered on 18.5.2001, by the Sub-Registrar Rawalpindi, thus it is proved that the property given in exchange was never transferred to Respondents No. 2 to 12 rather the same was gifted to Kashif Basharat after the execution of the exchange-deed. The plaintiff has repeatedly applied to the Court on 2.4.2001 and 15.1.2001 to direct the respondents to produce any mutation on the basis of exchange deed or any other proof of delivery of possession but they failed, thus, it was amply proved that the document was executed with mala-fide design. The direct evidence in such cases is neither available nor is possible. A reference can be made to Mst. Miraj Bibi's case [1997 SCMR 1892] and Syed Shehbaz Hussain's case [1977 SCMR 197].
In view of the guidelines and law declared in the dictum of the apex Court of Pakistan in the cases referred to hereinabove, I have no hesitation in concluding that the exchange deed executed on 25.6.1999 is not bona fide and the same is in fact a sale, therefore, findings on Issue No. 1 are, hereby reversed and it is declared that the exchange deed executed on 25.6.1999 is a sale-deed. After deciding Issue No. 1, in favour of the appellant the next important issue is with regard to the preferential right of the appellant. This issue has been decided in favour of the appellant by the First Appellate Court and there is no cross appeal. The learned Advocate for the respondents even has not made oral submission for reversal of the findings. A perusal of the record reveals that findings on this issue recorded by the first appellate Court are correct, therefore, it is held that the appellant has preferential right of prior purchase. Now the question emerges what would be the sale price of the land. A perusal of the file reveals that the plaintiff claims that the land has been sold in consideration of Rs. 2,00,000/- and the same is the market value of the land. The other side has not admitted this fact, however, in the gift-deed the value of the land situated in Rata-Amral has been entered as Rs. 2,80,000/-. A perusal of the issues reveals that there is no specific issue for determination of the sale price but the second part of Issue No. 2 is as to whether the land was sold for Rs. 2,00,000/-. The parties were alive on this issue. Therefore, framing of separate issue in this regard is not essential and remand for this purpose in my estimation would be wastage of time, specially so when the parties have already consumed a lot of time in litigation. The value of the plot given in the exchange deed has been entered as Rs. 2,80,000/-. This is very significant and it is therefore, concluded that the land has been sold for Rs. 2,80,000/-."
14.  For the reasons stated above we are constrained to review the judgment and decree passed by this Court on 9.1.2007. Consequently the appeal filed by the respondent before this Court is dismissed and judgment and decree of the High Court dated 23.5.2005 passed in Civil Appeal No. 26/2004 are restored without any order as to costs.
(R.A.)  Appeal dismissed.