IHC accepts suit against former ZTBL chief

02 May, 2009

The Islamabad High Court (IHC) accepted a defamation suit of Rs 20 million against R. A. Chughtai, former president Zarai Taraqiati Bank Limited (ZTBL) for illegally removing a joint director from the office. Muhammad Islam Khan was removed from his office in 2002 without following the procedures laid down in the service rules. On his appeal in the appellate tribunal, the secretary finance held that the action taken by R. A. Chughtai was unlawful.
He filed a defamation suit against R. A. Chughtai, former president ZTBL and Muhammad Tareef Shah, ex-SVP (C&ID) for illegal action against him. At that Rasheed Akhter Chughtai former president ZTBL filed an application in the High Court under Order VII, Rule 11 of the CPC seeking rejection of the suit saying that the suit hit by Section 14-A of removal from service (special power ordinance) 2000.
The matter was taken up by Justice Raja Saeed Akram Khan. Advocate Muhammad Aurangzeb appeared before the court as counsel for Muhammad Islam Khan whereas the former president ZTBL was represented by Advocate Imtiaz Ahmed. Advocate Aurangzeb apprised the court that section 14-A hit the suit if action was taken in good faith but the secretary finance had categorically mentioned that it was unlawful, thus was not taken in good faith.
Jusitce Raja Saeed Akram Khan rejected the application of former ZTBL president saying that the plaint and the material annexed therewith clearly indicate that the plaintiff/respondent has a cause of action and the controversy requires deep thorough probe and evidence as it has specifically been claimed by the plaintiff that on account of illegal acts of the defendant, he suffered financial loss besides mental torture and loss to his reputation.
The judgement further said that in such state of affairs, it would be unjustified to reject the plaint at its inception without affording opportunity to the plaintiff/respondent to adduce evidence. Of course, the other side will have an opportunity to refute the same.

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