LHC rules civil courts have no jurisdiction over companies law: report


LAHORE: The Lahore High Court’s Justice Shahid Bilal Hassan in a verdict released on a petition moved by the Lahore Polo Club, has ruled that civil courts have no jurisdiction to hear cases against entities incorporated under the companies law, according to a report by a private media outlet.

The club had challenged the proceedings before a civil court initiated on a suit filed by its terminated member. The judge allowed the petition of the club and set aside the impugned proceedings laying down some guidelines for the civil courts.

Justice Hassan further ruled that the jurisdiction of the court in such cases is limited within a very narrow compass and if managing committee of a club or an association has acted bona fide and honestly, followed the principles of natural justice, the civil courts have no jurisdiction to interfere in a matter where disciplinary action is taken against its members.

The club’s counsel, Taffazul Haider Rizvi, had argued that the Lahore Polo Club was a registered company and the respondent namely Naveed Sheikh was one of its members.

The counsel stated that as the club was a company registered in 1934, therefore, under the Companies Act, 2017 all disputes between members and the company fell under the exclusive jurisdiction of company judge of the Lahore High Court and the civil court had no jurisdiction in this regard.