| Case ID |
03ed07de-4af8-45b8-8984-47554fa551a9 |
| Body |
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| Case Number |
Civil Appeal No. 61 of 1976 |
| Decision Date |
Apr 29, 1984 |
| Hearing Date |
Apr 28, 1984 |
| Decision |
The appeal was dismissed with costs. The court upheld the findings of the lower courts regarding the enforceability of the promissory note and the liability of the defendants for the shortfall resulting from the devaluation of currency. It was determined that the defendants had executed the promissory note willingly, with full awareness of their obligations arising from the transaction. The court affirmed that the bank was entitled to recover the difference due to the currency devaluation, as the defendants had granted full authority to the bank regarding the financial arrangements. |
| Summary |
In the landmark case of Civil Appeal No. 61 of 1976, the Supreme Court of Pakistan addressed critical issues related to the enforcement of a promissory note and the implications of currency devaluation on financial transactions. The case stemmed from a dispute between the appellants, MUHAMMAD IQBAL AND others, and THE AUSTRALASIA BANK LTD. The court examined the validity of financial documents executed under the Negotiable Instruments Act, 1881. It was determined that the appellants had willingly engaged in financial agreements with the bank, and their claims of duress were dismissed. The judgment emphasized the importance of adhering to the terms of letters of credit and the responsibilities of parties in international trade. The decision highlighted the legal framework surrounding letters of credit, confirming that banks have the right to recover amounts due under the terms agreed upon by the parties. This case serves as a significant reference for future disputes involving financial instruments and currency fluctuations. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Australasia Bank Limited
|
| Judges |
MUHAMMAD HALEEM, C.J.,
SHAFIUR RAHMAN,
M. S. H. QURAISHI, J.
|
| Lawyers |
M. Anwar Buttar, Senior Advocate Supreme Court,
M. Mohsin, Advocate Supreme Court
|
| Petitioners |
MUHAMMAD IQBAL AND others
|
| Respondents |
THE AUSTRALASIA BANK LTD.
|
| Citations |
1984 SLD 703,
1984 SCMR 919
|
| Other Citations |
Not available
|
| Laws Involved |
Negotiable Instruments Act, 1881
|
| Sections |
5
|