Execution of Decree in Pakistan passed by Federal Court of Sharjah, UAE

Execution of Decree in Pakistan passed by Federal Court of Sharjah, UAE Case Laws Civil Law Execution Execution of Foreign Decree Knowledge - Civil Law Lahore High Court Litigation & Arbitration Solutions - Civil Law Mr. Justice Atir Mahmood in his judgment has decided the issue regarding execution of decree in Pakistan passed by Federal Court of Sharjah, UAE in First Appeal against Order No. 49 of 2015.

1. Through this appeal, the appellant has assailed the vires of order dated 04.02.2015 whereby application under Section 47, CPC filed by the respondents was accepted and execution petition filed by the appellant against the respondents was dismissed by learned Additional District Judge/Executing Court, Chakwal.

2. Succinctly stated facts of the case are that the appellant filed a recovery suit against the respondents in the Federal Court of Sharjah, UAE with the assertions that the respondents were employed in the appellant company as Sales Manager and Accountant where they allegedly committed embezzlements. Respondent No.1 was proceeded against ex parte whereas respondent No.2 contested the suit but after decree of the suit fled away to Pakistan. The suit was ultimately decreed against the respondents by Federal Court of Sharjah, UAE vide judgment dated 26.09.2013 with total amount of AED 14,33,297/- in addition to legal interest of 9% as from the claim date upto payment in full. Since the respondents were permanently residing in Pakistan, the executing court at UAE vide order dated 23.03.2014 allowed the appellant to follow up the execution of judgment against the respondents outside the state and also issued a certificate in this regard on 27.03.2014.

3. The appellant filed execution petition under Section 44-A, CPC which was entrusted to Additional District Judge, Chakwal. The respondents appeared before the court and filed petition under Section 47, CPC raising objection that the execution petition was not maintainable as the UAE was not a reciprocating state. Learned Additional District Judge, Chakwal after hearing both sides accepted the said application and dismissed the execution petition vide order dated 04.02.2015 which has been assailed in this appeal.

4. Learned counsel for the appellant contends that the Federal Court of Sharjah is a court of appeal as it hears the appeals against decisions of local courts, therefore, it being a court of appeal is a superior court; that since the Federal Court of Sharjah is a superior court, its decree is executable in Pakistan in light of notification No.SRO 208(I)/2007 dated 06.03.2007 read with Section 44-A of the CPC, therefore, this appeal be allowed, the impugned order be set aside and the objection petition of the respondents be dismissed.

5. On the other hand, learned counsel for the respondents has vehemently opposed this appeal mainly on the ground that the Federal Court of Sharjah has passed the judgment as a court of first instance, therefore, neither it can be considered as a court of appeal nor the superior court nor the decree can be executed in Pakistan. He accordingly prays for dismissal of this appeal.

6. Arguments heard. Record perused.

7. The controversy between the parties is as to whether the decree in question passed by the Federal Court of Sharjah, UAE as a Court of First Instance is executable or not in Pakistan.

8. The execution petition was filed by the appellant under Section 44-A of the CPC which provides that:

“44-A. Execution of decrees passed by Courts in the United Kingdom and other reciprocating territory. – (1) Where a certified copy of a decree of any of the superior Courts of the United Kingdom or any reciprocating territory has been filed in a District Court, the decree may be executed in Pakistan as if it had been passed by the District Court.

2. Together with the certified copy of the decree shall be filed a certificate from such superior Court stating the extent, if any, to which the decree has been satisfied or adjusted and such certificate, shall, for the purpose of proceedings under this section, be conclusive proof of the extent of such satisfaction or adjustment.

3. The provisions of Section 47 shall as from the filing of the certified copy of the decree apply to the proceedings of a District Court executing a decree under this section, and the District Court shall refuse execution of any such decree, if it is shown to the satisfaction of the Court that the decree falls within any of the exceptions specified in clauses (a) to (f) of Section 13.”

Bare perusal of Sub-Section (1) of Section 44-A of CPC reveals that the decrees passed by the Courts in the United Kingdom and other reciprocating territories can be executed in Pakistan in the same way as such decrees were passed by the Courts in Pakistan. Such execution petition will be filed in the District Court concerned and all the provisions pertaining to execution contained in the Civil Procedure Code will be applicable thereto. Initially, the name of United Arab Emirates was not included in the list of reciprocating territories, however, Government of Pakistan, Law, Justice and Human Rights Division vide its notification No.S.R.O. 208(I)/2007, dated 06.03.2007 included the UAE in the list of reciprocating territory and the Courts of Appeal of the UAE as Superior Courts for the purposes of Section 44-A of the CPC. Relevant portion from the said notification is reproduced below:

“S.R.O. 208(I)/2007 – In exercise of the powers conferred by Section 44A of the Code of Civil Procedure, 1908 (Act V of 1908), the Federal Government is pleased to declare the United Arab Emirates to be a reciprocating territory and the Court of Appeal of the United Arab Emirates to be Superior Courts for the purposes of the said Section.”

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