1997 C L C 2034

[Lahore]

Before Munir A. Sheikh, Malik Muhammad Qayyum

and Rana Muhammad Arshad Khan, JJ

MUHAMMAD NAWAZ arid others Petitioners

---

versus

RAHIM BUX Respondent

---

Civil Revision No. 158 of 1983/BWP, decided on 25th

January, 1995

Suits Valuation Act (VII of 1887)

---

----S. 3---Court Fees Act (VII of 1870), 7(v)---Province

of West Pakistan (Dissolution) Order (1 of 1970), Arts. 4
& 19---Rules framed by Punjab Government under S.3,
Suits Valuation Act, 1887, for determining valuation of
suits for purpose of jurisdiction falling under S. 7(v),
Court Fees Act, 1870-- Applicability/non-applicability of
such rules to areas
forming part of former Bahawalpur State---Provision of
Art. 19, Province of West Pakistan (Dissolution) Order,
1970, postulated that all existing laws as defned in
explanation attached thereto, which had earlier been
applicable to territories, forming part of West Pakistan
Province, were to remain in force in territories of
Provinces created in consequence of dissolution of
West Pakistan Province, as they were applicable
before---Rules framed by Provincial Government of
Punjab under S.3, Suits Valuation Act, 1887, for
determining of value of suits for purpose of jurisdiction
for suits falling under S.7(v), Court.. Fees Act, 1870,
were thus, applicable to areas of former Bahawalpur
State now forming part of Province of Punjab. ---[Gullan
v. Muhammad Ramzan and others PLD 1962 (W.P.) BJ
33 overruled].
Gullan v. Muhammad Ramzan and others PLD 1962
(W.P), BJ 33 overruled.

Sh. Inayat Ali for Petitioners.

Mian Abdus Sattar Najam, A.-G., Punjab (on Court's

call)

Date of hearing: 25th January, 1995.

JUDGMENT

MUNIR A. SHEIKH, J.---The law point referred to us is

as to whether the rules framed by the Punjab
Government under section 3 of the Suits Valuation Act,
1887 for determining the valuation of suits for the
purpose of jurisdiction falling under para. (v) of section 7
of the Court Fees Act, 1870 are applicable to the areas
forming part of Former Bahawalpur State or not. The
reference was necessitated because in the case of
Gullan v. Muhammad Ramzan and others (PLD 1962
(W.P) Baghdad-ul-Jadid 33). A Division Bench of this
Court declared in the light of section 10 of the
Establishment of West Pakistan Act, 1955 that the said
rules had no application to the areas of Former
Bahawalpur State as they were not made applicable to
the said areas and Former Bahawalpur State also did
not frame any corresponding rules for the purposes.

2. In the view of learned Single Judge making the

reference the rule laid down in Gullan's case requires
re-examination in view of the provisions of Ordinance
XXI of 1960.

3. On the creation of Pakistan the ruler of Bahawalpur

State decided to accede to Pakistan. The territory of
Bahawalpur State, therefore, on the establishment of
Pakistan became part of the Province of the Punjab.
However, no fnal legal instrument was issued to extend
the application of the rules framed under section 3 of the
Suits Valuation Act to the areas of Former Bahawalpur
State. Establishment of West Pakistan Act of 1955 was
promulgated w.e.f. 3rd October, 1955 which
provided that as from the appointed day to be notifed in
the ofcial gazette the territories of the Punjab, the Chief
Commissioners, Province of Balochistan and the Capital
of the Federation, the State of Bahawalpur and Kahirpur
and the Balochistan States Union and the Tribal Areas
of Balochistan etc. would be incorporated into the
Province of West Pakistan. Pursuant to section 2 of this
Act, Governor-General through Notifcation declared
14th October to be the "appointed day", therefore, on
this date these territories stood incorporated into the
Province of West Pakistan as such, the territories of
Former State of Bahawalpur became part of the
Province of West Pakistan. Under section 10 of this Act
it was further provided that those laws which were in
force in West Pakistan immediately before the
appointed day would continue to apply to the areas and
the persons to whom they would have applied if the said
Act had not been passed. It appears that considering
these provisions of this section the Division Bench
which decided the Gullan's case came to the conclusion
that since before the establishment of Province of West
Pakistan the rules framed under section 3 of the Suits
Valuation Act, 1887 by the Punjab Province had not
been made applicable to the territories of State of
Bahawalpur, therefore, the same position would
continue even after the Establishment of the Province of
West Pakistan. A similar view had also been taken in
Regular First Appeal No. 147 of 1955 referred to by the
Division Bench in support of the said view.

4. The Laws (Statutes Reforms) Ordinance, 1960 was

promulgated on 9-6-1960 and as has been indicated in
its Preamble the purpose was to make certain changes
in the laws and to extend their application to territories
of the new Province of West Pakistan. Under section 3
of this Act w.e.f. 14-10-1955 (the appointed day) when
the Province of West Pakistan was established the
application of all Central Acts and Ordinances specifed
in the 2nd Schedule attached to the said Act was
extended to the whole of Pakistan after amendments in
the manner indicated in the 4th column thereof. Through
the
Central Laws (Statutes Reforms) (Amendment)
Ordinance, 1961, section 3 of the earlier Ordinance was
amended so as to make applicable also to all rules,
regulations, Notifcations and Orders made or issued
under the said laws to the territory of West Pakistan.
Suits Valuation Act, 1887 is one of such statutes which
is included in 2nd Schedule, therefore, it is
unambiguously clear that w.e.f. 14-10-1955 the Suits
Valuation Act, 1887 and the rules framed under section
3 thereof providing criteria for determination of the value
of the suits falling under para. (v) of section 7 of Court
Fees Act, 1887 for the purpose of jurisdiction became
applicable to the areas forming part of Former State of
Bahawalpur, being part of West Pakistan Province. It
appears that the provisions of Central Laws (Statutes
Reforms) Ordinance, 1960 as amended through Central
Laws (Statutes Reforms) (Amendment) Ordinance
(XXXVI of 1961) were not brought to the notice of the
Division Bench which decided Gullan's case.

5. Sheikh Inayat Ali, Advocate, learned counsel for one

of the appellants argued that the rules framed under
section 3 of the Suits Valuation Act, 1887 by the
Government of Punjab being the Provincial Law could
not be made applicable under Central Laws (Statutes
Reforms) Ordinance; 1960 which is a Central Statute. In
amplifcation of his argument he submitted that the
Federal Legislature could only make provisions for
application of Federal Laws and not the Provincial
Statutes. The argument in our view is devoid of any
force for the Suits Valuation Act, 1887 being Central
Statute as such the rules framed thereunder in
pursuance of the powers deriveable from the same by
the Provincial Government shall have the same legal
efcacy as the statute under which the same were
framed. The criteria for determining the applicability of
the rules is not the authority which had framed the same
but the source of power in pursuance of which the same
had been framed.

6. By virtue of President's Order No.1 of 1970 known as

Province of West Pakistan (Dissolution) Order,
1970 promulgated on 30th March, 1970, the Province of
West Pakistan was dissolved w.e.f. the appointed day to
be notifed under Article 4 thereof. After dissolution the
following four Provinces were created to be known as:--

(a) Balochistan;

(b) The North-West Frontier Province;

(c) The Punjab; and

(d) Sindh.

According to the arrangements under this order the

following Centrally Administered Areas were also
constituted:-

(a) Islamabad Capital Territory;

(b) The Centrally Administered Tribal Areas.

It has been provided under Article 19 of this Order that

except as expressly provided by or under this Order all
existing laws would continue in force, so far as
applicable and with the necessary adaptations, until
altered, repealed or amended by the appropriate
Legislature or other competent Authority. Explanation
attached to this Article is as under:--

Explanation

"In this Article, 'existing law' means any Act, Ordinance

Order, rule, regulation, bye-law, notifcation or other legal
instrument which, immediately before the appointed
day, had the force of law in the whole or any part of the
Province of West Pakistan whether or not it had been
brought into operation "'

7. It is manifest from this Article that all existing laws as

defned in the explanation attached to it had earlier been
applicable to the territories forming part of the West
Pakistan Province were to remain
in force in the territories of the Provinces created in
consequence of dissolution of West Pakistan Province
as they were applicable before. It is not necessary to
ascertain as to what was the appointed day notifed
under this Order being the effective date of the
dissolution of West Pakistan Province because Article
19 by virtue of Article 1(2) of the said Order came into
force w.e.f. the date of promulgation of the said Order
itself i.e. 30-3-1970.

8. Sheikh Inayat Ali, Advocate, learned counsel for the

appellant faintly argued that the legal position as to
applicability of laws in the areas forming part of State of
Bahawalpur which prevailed before their merger in the
West Pakistan Province stood restored after dissolution
of West Pakistan Province, therefore, the rules framed
under section 3 of the Suits Valuation Act since would
no longer be applicable, therefore, the rule laid down in
Gullan's case still retains full legal efcacy and can be
pressed into service.

9. The argument though appears to be ingenious but not

tenable on close scrutiny of the provision of Presidential
Order No.1 of 1970. After dissolution of West Pakistan
Province the position as regards applicability of laws to
all those territories which formed part of the said
Province as was obtaining on 30-3-1970 the date of
enforcement of the Presidential Order was maintained
and continued. Since Suits Valuation Act and the rules
framed thereunder were applicable to areas of Former
Bahawalpur State being part' of Province of West
Pakistan on the date of enforcement of Presidential
Order No. l of 1970 on 30-3-1970, they would continue
to be applicable to these areas even after dissolution of
Province of West Pakistan by virtue of Article 19 of the
Presidential Order therefore, it could not be maintained
that the position as it prevailed regarding applicability of
these rules to these areas before the establishment of
West Pakistan Province should be restored.

10. In view of what has been discussed above, we hold

that the rules framed by the Provincial
Government of Punjab under section 3 of the Suits
Valuation Act, 1887 for determination of value of the
suits for the purpose of jurisdiction for suits falling under
para (v) of section 7 of the Court Fees Act, 1870 are
applicable to the areas of Former Bahawalpur State now
being part of the Province of Punjab. The principle of
law decided in relation thereto in Gullan's case,
therefore, is no longer applicable.

11. The ofce is directed to place the matter before the

appropriate Bench for hearing.

A.A./M-430/L Order accordingly.