Mehar Singh, J. - (1.) This is an appeal by the Punjab Medical Education and Relief Society, with registered office at Jullundur, appellant, from the judgment, dated 9-1-1956, of a learned Single Judge of this Court, under Clause 10 of the Letters Patent, by which judgment the learned Single Judge reversed the order, dated 1-12-1954, of the Tribunal under the provisions of the Displaced Persons (Debts Adjustment) Act, 1951, (Act No. LXX of 1951), dismissing the application of the Punjab National Bank Limited, the respondent, under S. 16 of the Act on the ground that no such application is competent under that provision on behalf of or by the respondent.
(2.) The appellant was a registered society at Lahore before the petition of the country. It had mortgaged its immovable property to the respondent for something like Rs. 2,41,000/-. The respondent sought by an application under S. 16 of the Act, determining of its mortgage debt due form the appellant and for it, after determination, being treated as a first charge upon the compensation payable to the appellant under the Act. The application was opposed by the appellant on the ground that no such application is competent on behalf of the respondent, it not being a displaced person with in the meaning and scope of the Act; and it is this position taken on behalf of the Appellant that was accepted by the Tribunal, but on appeal the learned Single Judge did not agree with the Tribunal and reversed its order.
(3.) It is admitted on both sides that within the meaning and scope of the expression 'displaced person' as defined in S. 2(10) of the Act, the respondent is not such a person. In Clause (8) of S. 2 of the Act the expression 'displaced creditor' is defined to mean a displaced person to whom a debt is due from any other person, whether a displaced person or not. In Clause (10) of the same section the definition of 'displaced person' is given and it is not denied by anybody that the appellant is such a person. It is further an accepted position that the respondent is not a displaced creditor. In Chapter II of the Act, S. 5 deals with an application by a displaced debtor for adjustment of his debts. The section contains details provisions about what are to be contents of such an application and one of the particulars required (S. 5(2)(e)(i)) is a schedule containing full particulars of all debts of the displaced debtor, whether owing jointly or individually, with the names and addresses of his creditors and joint debtors. Section 6 empowers the Tribunal to dismiss the application under S. 5 for non-compliance with the requirements of that section. Section 7 provides for the issue of notice of the application to the respondents and S. 8 concerns the objections of the respondents by filing their written statements. Sub-section (1) of S. 9 provides that "if there is a dispute as to whether the applicant is a displaced person or not or as to the existence or the amount of the debt due to any creditor or the assets of any displaced debtor, the Tribunal shall decide the matter after taking such evidence as may be adduced by all the parties concerned and shall pass such decree in relation thereto as it thinks fit". Sub-section (2) of this section merely deals with the situation if the respondent or respondents do not appear. Section 10 provide for a claim by a displaced persons against a displaced debtor, in other words it provides for a claim by a creditor, who is a displaced person, against a displaced debtor. Section 11 relates to procedure upon an application under the preceding S. 10, but sub-s. (1) of this section provides that, on service of notice of the application under S. 10 upon him the displaced debtor can make an application on his own behalf under S. 5, and when he does that, it will be treated as an application under S. 5, and all other provisions of the Act are made applicable to that application accordingly. So far the provisions are that an application may be moved by a displaced debtor (S. 5) or by displaced creditor (S. 10), but no reference is made to any application by any other creditor, though reference to the word 'creditor' finds place in Ss. 5 and 9(1). But no provision so far has been made for an independent application by a creditor, who is not a displaced person. Then sub-section (1) of S. 12 says: "Any creditor of a displaced debtor may make an application to the Tribunal stating that the displaced debtor, who has made an application under S. 5 or sub-section (2) of S. 11, has concealed any part of his assets, and the Tribunal shall, after giving due notice thereof to the displaced debtor, determine the matter." Sub-section (2) of this section concerns the decision to be made by the Tribunal in that connection. It is to be noted that even under sub-section (1) of S. 12 a creditor of a displaced debtor has no right to move an independent application, in other words an application on his own unconnected with any proceedings under the Act. He can only make an application under that provision if a displaced debtor's application under S. 5 or under sub-s. (2) of S. 11 is pending before the Tribunal, but not otherwise. He joins in, in the proceedings pending before the Tribunal, but he has no right to initiate proceedings under sub-section (1) of S. 12. Section 13 deals with the claim of a displaced creditor against a person who is not a displaced debtor. Section 14 deals with procedure concerning an application under the preceding S. 13. Section 15 provides for consequences of an application by a displaced debtor under S. 5 of sub-section (2) of S. 11. So far there is no provision in any of the sections from S. 5 to S. 15, in Chapter II, under the heading 'debt adjustment proceedings', which gives right to a creditor, other than a displaced creditor, to originate proceedings under any of those sections. Then comes S. 16 and sub-section (1) and (2) of that section are: "Section 16(1). Where a debt incurred by a displaced person is secured by a mortgage, charge or lien on the immovable property belonging to him in West Pakistan, the Tribunal may, for the purpose of any proceeding under this Act, require the creditor to elect to retain the security or to be treated as an unsecured creditor. (2) If the creditor elects to retain the security he may apply to the Tribunal, having jurisdiction in this behalf as provided in S. 10, for a declaration of the amount due under his debt." Sub-sections (3) and (4) of S. 16 deal with the rights of the creditor, who has made election to retain his security, in regard to property referred to in subsection (1), and provide in detail how his rights are to be adjusted and safeguarded. Sub-section (5) of the same says that "where a creditor elects to be treated as an unsecured creditor, in relation to the debt, the provisions of this Act shall apply accordingly". After referring to sub-section (1), (2) and (3) of S. 16 the learned Single Judge said that "in my judgment the Tribunal has erred in holding that the Bank has no locus standi to apply under Ss. 16 (2) and (3) of the Act", and no other reason is to be found in support of the conclusion arrived at by the learned Single Judge. This judgment of the learned Single Judge was followed by Gurnam Singh J. in Punjab National Bank Ltd. v. Sardari Lall Kochhar, F. A. F. O. No. 115 of 1955, D/- 27-3-1957, and in that case the learned Judge has gone into the matter in a little more detail. The consideration that prevailed with him to concur with the previous option of Harnam Singh J. was that the word 'creditor' as used in subsecs. (2) and (3) of S. 16 is unqualified and consequently any creditor can take advantage of the provisions of S. 16. This case has been relied upon by the learned counsel for the respondent to support the position that he has taken on behalf of the respondent.;