ENACTMENTAL COLLISION

By:
FAIZ JALBANI
Advocate

Sometimes, by tracing the history of a particular phrase back through earlier Acts, one can throw light on its meanings. If the language changes between one statute and another, inferences can be drawn from the fact; alternatively sometimes understanding of meaning can be based on the similarity of language in the present Act and some earlier statute when the historical position was different.

In cases of doubt, Courts lean to a construction that an enactment is not intended to impose a serious new obligation, but only to provide new or better means enforcing an existing obligation. An unequivocal enactment is also required for the purpose of either adding to or taking from the jurisdictional limits of the Court.

No doubt where the words of an Act are clear, the Courts must follow them but an attempt to seek the second meaning is justified in case of absurdity. Following principles have been laid down by Courts to avoid absurdity i.e.:--

(a)     The Courts have to presume that absurdity was not intended by the law-maker.

(b)     When the language used by the legislature admits of two constructions, the Courts should not adopt a construction which leads to an absurdity.

(c)     The secondary meaning is to be preferred in view of possible absurdity only when the absurdity is so gross as to shock the general moral and commonsense.

(d)     In case of possible absurdity the Courts can modify the meaning of the words and even the structure of the sentence, or rejecting some words altogether or by interpolating other words. Assuming that the legislature does not intend irrational or incoherent directives, Court will read or even rewrite statutes to avoid absurd results. The use of inapt or inarticulate language or words will not vitiate a statute if the legislative intention can be ascertained, the same is equally true with reference to awkward, slovenly or ungrammatical expression necessitating the departure from the literal meaning of the word used.

(e)     The Courts seek to avoid a construction of an enactment that produces an unworkable or impracticable results.

(f)      The Courts seek to avoid a construction that creates an anomaly normally or otherwise produces an irrational or illogical result.

(g)     The Courts consider a construction absurd if while curing the mischief for which the enactment was passed the construction results in a disproportionate counter-mischief.

Though the question of reasonableness or unreasonableness of the consequence of a particular interpretation is primary for the legislature to decide as it is in substance a question of legislative expediency, yet no meaning can be given to certain words of a statute without rejecting some of those used in it, or where a statute would reject some of those used in it, or where a statute would become a nullity where all the words retained, the Courts have power to read a section as though the words which make it meaningless or nullify it were not there.

There is rule (this is not rule of law but is rule of construction) "EXPRESSIO UNIS EST EXLUSIO ALTERIUS" (the express mention of one thing implies the exclusion of another). Of course it is a general principle of interpretation that the mention of one thing implies the exclusion of another. Thus a statute that directs a thing to be done in a particular manner, ordinarily implies that it shall not be done in another manner.

Though this principle is to be used only as a means of ascertaining the legislative intent where it is doubtful and not as means of defeating the apparent intent of the legislature, yet the very principle may be employed hereunder this situation because the mutually contradictory provisions of sub-section (2) and sub-section (4) of Section 18 of Financial Institutions (Recovery of Finances) Ordinance, 2001 damage the apparent legislative intent with an overlap of inimical reciprocity.

Section 18(2) and (4) of the FIO, 2001 and Some provisions of the Qanun-e-Shahdat Order, 1984 are reproduced as it mandates here so to be done.

Article 17 of the Qanun-e-Shahdat Order, 1984.

Competence and number of witness.--(1) The competence of a person to testify, and the number of witnesses required in any case shall be determined in accordance with the injunctions of Islam as laid down in the Holy Quran and Sunnah.

(2)     Unless otherwise provided in any law relating to the enforcement of Hudood or any other special law:--

(a)     In matters pertaining to financial or future obligations, if reduced to writing, the instrument shall be attested by two men, or one man and two women, so that one may remind the other, if necessary and evidence shall be led accordingly; and

(b)     In all other matters, the Court may accept, or act on, the testimony of one man or one woman or such other evidence as the circumstances of the case may warrant.

Section 18(2) and (4) of the FIO, 2001.

18.     Banking Documents. (2) Finance agreements executed by or on behalf of a financial institution and a customer shall be duly attested in the manner laid down in Article 17 of the Qanun-e-Shahadat Order, 1984, (P.O. 10 of 1984);

(4) Notwithstanding anything contained in this section or any other law, the Banking Court shall not refuse to accept in evidence any document creating or purporting to create or indicating the creation of a mortgage, charge, pledge or hypothecation in relation to any property or assumption of any obligation by a customer, guarantor, mortgagor or otherwise merely because it is not duly stamped or it not registered as required by any law or is not attested or witnessed as required by Article 17 of the Qanun-e-Shahadat Order, 1984 (P.O 10 of 1984) and no such document shall be impoundable by the Banking Court or any other Court or authority:

          Provided that nothing contained in this subsection shall operate to defeat the legal rights of a bonafide purchaser for value without notice of a document which ought to have been registered.

Article 79 of the Qaunoon-e-Shahdat Order, 1984.

79.     Proof of execution of document required by law to be attested.--If a document is require by law to be attested, it shall not be used as evidence until two attesting witnesses [at] least have been called for the purpose of proving its execution, if there be two attesting witnesses alive, and subject to the process of the Court and capable of giving evidence:

          Provided that it shall not be necessary to call an attesting witness in proof of the execution of any document, not being a will, which has been registered in accordance with the provision of the Registration Act, 1908, (XVI of 1908) unless its execution by the person by whom it purports to have been executed is specifically denied.

Correct, there is a strong presumption that parliament does not make mistakes but this presumption does not guarantee inerrancy on its part.

The provisions laid down under sub-sections (2) and (4) of Section 18 of the FIO, 2001 not only cause obfuscation but also lead to absurdity.

This may be conscious or this may be consequence of antics on the part of legislature.

Sometimes, it seems un-understandable as to why did the very mutually contradictory provisions require to be consecrated through legislative Act.

If Section 18 (4) of the FIO is supposed to be in continuance of Section 18(2) of FIO, 2001 it is self destructive provision.

The aforerelated provisions may be viewed upon from another angle i.e the FIO or the preceding legislation on the same subject is/was silent about the applicability of the Qanoon-e-Shahdat Order, 1984. This very silence, obviously, convinces to believe that the provisions of Qanun-e-Shahdat Order would be applicable upon the proceedings under FIO, 2001 with the exception which may be taken while keeping in mind the limitations, impliedly or expressly, demarcated by applicability of non-obstante clause. The enactment of Section 18 of the FIO, 2001 further clarifies that the Qanoon-e-Shahdat Order, 1984, particularly Article 17 would be applicable.

Here, at this junctures, a whim springs up from the depth of conscious that the Banker's Books Evidence Act, 1891 may be resorted to but this evidently would not be helpful in coming to the rescue of section 18 of the FIO, 2001 on two simple grounds i.e, the preamble and the definition of Banker's Books Evidence and the very Act is sans non-obstante clause.

In the Banking Companies (Recovery of Loans) Ordinance, 1979, the Banking Tribunal Ordinance 1984 and the Bank Companies (Recovery of Loans, Advances, Credits and Finances) Ordinance, 1997, no provision akin to or identical with section 18 (2) and (4) of the FIO, 2001 were enacted. These provisions, for the first time, had been introduced in the Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997 and thereafter the same provisions were borrowed to be made the part of FIO, 2001.

Now a perusal of the relevant provisions of Article 17 and Article 79 of the Qanun-e-Shahadat Order, 1984 gets to lay that the instruments pertaining to financial or future obligations, if reduced to writing, the same shall be attested by two men or one man and two women. Further a document required to be attested shall not be used in evidence until two attesting witnesses at least have been called for this purpose subject to the condition that the attesting witnesses are alive; they are subject to the process of Court; and they are capable of giving evidence.

A Division Bench of Hon'ble Lahore High Court, Lahore has also interpreted the abovementioned provisions of the Qanun-e-Shahadat Order, 1984 which is reported in PLD 1996 Lahore 367. I also venture to take support from the view of Hon'ble Judges in the said judgment. Admittedly the aforereferred judgment preceded the Enactment of Banking Companies (Recovery of Loans Advances Credits and Finances) Act of 1997 wherein the mutually contradictory provisions were introduced. After the enactment and introduction of Section 18(2) and (4) of the FIO, 2001 the same has never been discussed or interpreted by the superior Courts except in the case titled as Habib Bank Limited Vs. Orient Rice Mills & others i.e, 2004 CLD 1289. This judgment was authored by his lordship Mr. Justice Jawad S.Khawja. This judgment also does not make one get rid of the anxiety born out of a bare reading of Section 18(2) and (4) of the FIO, 2001. In the Para 38 of said judgment i.e., 2004 CLD 1289; it is held, “where the signatures on a document are admitted, as in the case of the guarantees executed by Defendants Nos. 2 to 8, there will be no need for proving execution of the instrument through attesting witnesses. There is nothing in Article 17 of the Qanun-e-Shahadat Order or in Section 17 of the Act to even remotely suggest that want of attestation on any document referred to in Article 17 of the Qanun-e-Shahadat Order or Section 17 of the Act, will render such document void or inadmissible in evidence. In this material particular, the provisions of Article 17 of the Qanun-e-Shahadat Order and those of Section 17 of the Act are significantly different from the provisions of Section 59 of the Transfer of Property Act. The latter provision, as noted, effects the mortgage-deed itself and results in the statutorily prescribed consequence that no rights in property stand transferred in the absence of proper attestation even where the executants of an instrument purporting to be a mortgage-deed, acknowledges execution of such instrument".

Now it is clear that the proposition dealt with in the aforereferred judgment is distinguishable because in the said case execution of documents was not denied. While I wonder, as my proposition is in this essay, as to what course would be adopted by a Court in case the execution of a document is barely denied. Either to follow the sub-section (2) or sub-section (4) of the Section 18 of the F1O, 2001?

No doubt, in Para 41 of the judgment reported in 2004 CLD 1289, it is laid down; "Based on the above discussion, I hold that the personal guarantees, which have been executed by the Defendants Nos. 2 to 8 and which form the basis of the plaintiff bank's claim against the said defendants, can not be excluded from consideration merely because the same are not attested in the manner required by Article 17 of the Qanun-e-Shahadat Order".

The abovequoted Para can not be supposed to serve the proposition I have taken up in this essay because the facts of the aforereferred judgment are distinguishable as the execution of documents was not specifically denied in the said case.

A resort to harmonious construction rule of interpretation may be helpful to extenuate the anxiety brought forth by the enactmental collision which is subject matter of this essay.

The principle of harmonious construction is always recommended in order to save the provision of law i.e, enactment. The Courts are to lean in favour of validation of the law and normally show resistance against rendering the law invalidated. The rule of unrestrictive interpretation may, at this juncture, come to the rescue both of the subsections (under-discussion) of Section 18 of the FIO, 2001.

Before suggesting forward some conciliatory measures, it seems expedient to make a reference to Article 2-A of the Constitution of Islamic Republic of Pakistan, 1973 which reads as under:--

"The principles and provisions set out in the Objectives Resolution reproduced in the Annex are hereby made substantive part of the Constitution and shall have effect accordingly."

In the preamble to the Constitution, it is also mentioned that the Muslims shall be enabled to order their lives in the individual and collective spheres in accordance with the teachings and requirements of Islam as set out in the Holy Quran & Sunnah. Upto the year 1984, the Evidence Act, 1872 remained in force. The said Act was repealed by the Order made by the President on 26th of Oct, 1984 when the Quanon-e-Shahdat Order, 1984 was promulgated. This exercise was done to revise, amend and consolidate the law of evidence so as to bring it in conformity with the Injunctions of Islam as laid down in the Holy Quran and Sunnah. This is now evident that the Qanun-e-Shahadat Order, 1984 was promulgated and stood in tone with the Objectives Resolution.

By no stretch of imagination the Article 17 of the Qanun-e-Shahdat Order may be supposed not to be in accordance with the Injunctions of Islam as laid down in the Holy Quran and Sunnah.

In view of the above it becomes easier to solve the issue. The sub-section (2) of the Section 18 of FIO, 2001 must be given way in case any inconsistent situation arises out of an attempt to take sides with the sub-section (4) of the Section 18 because a provision, howsoever clear and unambiguous, ought not to be interpreted in negation to the Objectives Resolution, Article 2-A of the Constitution and Injunctions of the Holy Quran and Sunnah.

I am, therefore, of the view that the sub-section 2 of Section 18 of the FIO, 2001 must be, in case of inconsistency, given precedence over the provisions laid down under sub-section (4) of the section 18 of the FIO, 2001.

The terminology employed in subsection 4 of the Section 18 of the FIO, 2001 i.e., "the Banking Court shall not refuse to accept in evidence any document ……………….." is clouded and needs clarification.

Under the spotlight of what is argued hereinbefore, the aforereferred terminology i.e. "the banking Court shall not refuse to accept in evidence any document ………………..,” merely refers to the authority of the Court to take any such document and to make it part of the documentary evidence produced by the Financial Institution. Obviously, the same can not be constructed to confer an openended power on the Court to take that document as gospel truth. The same still requires to be evaluated and given effect to on the touchstone of the Article 17 of the Quanoon-e-Shahdat Order 1984.

I do'nt know either I am successful in giving an honest interpretation to the aforereferred paradoxical provisions or not. However a verse by Dante Alighuieri remained haunting me throughout the time I set to write this essay; that reads:

"Midway this way of life we are bound,
I woke to find myself in a dark wood,
Where the right road was wholly lost and gone".

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