| Case ID |
42bb4780-4cde-41a2-ba16-57054be1f076 |
| Body |
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| Case Number |
F.A.O. No.280 of 2003 |
| Decision Date |
Nov 05, 2008 |
| Hearing Date |
Nov 05, 2008 |
| Decision |
The Lahore High Court ruled that civil claims against companies under liquidation must be established in a court of competent jurisdiction. The court found that the trial court's return of the plaint was based on an incorrect assumption that such claims must be heard by the Companies Bench. The court emphasized that claims for recovery of money against a company in liquidation should be filed and ranked by the official liquidator, and that the trial court was wrong to return the plaint. The appeal was accepted, and the suit was ordered to be registered for proper disposal according to law. |
| Summary |
This case involves the interpretation of the Companies Ordinance, 1984, particularly Section 316 concerning the jurisdiction of civil claims against companies undergoing liquidation. The Lahore High Court determined that a civil claim must be established before a competent court, and the assumption that such claims must exclusively be heard by the Companies Bench was incorrect. The judgment clarified the procedural requirements for filing claims against companies in liquidation, emphasizing the role of the official liquidator in managing these claims. The court's decision underscores the importance of proper jurisdiction and procedural adherence in corporate law cases, particularly in the context of liquidation proceedings. This case is significant for legal practitioners and stakeholders involved in corporate governance and insolvency matters, offering clarity on the judicial process for claims against liquidated entities. |
| Court |
Lahore High Court
|
| Entities Involved |
Joint Official Liquidators,
N. K. Rice Mills (PVT.) Ltd.
|
| Judges |
Umar Ata Bandial
|
| Lawyers |
Tariq Masood,
Rai Sajid Ali,
Ms. Sidra Fatima Sheikh,
Rana Waqas Latif
|
| Petitioners |
Muhammad Iqbal
|
| Respondents |
N. K. Rice Mills (PVT.) Ltd. Through Joint Official Liquidators,
Other Respondents
|
| Citations |
2009 SLD 170,
2009 CLD 609
|
| Other Citations |
Not available
|
| Laws Involved |
Companies Ordinance, 1984,
Civil Procedure Code (V of 1908)
|
| Sections |
316,
316(2),
O.XXXVII
|