| Case ID |
08c22674-aad4-4b94-9b97-457e6563d845 |
| Body |
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| Case Number |
First Appeal No.68 of 2001 |
| Decision Date |
Mar 25, 2003 |
| Hearing Date |
|
| Decision |
The appeal was dismissed in limine. The court found that the appellants had failed to establish their claims regarding the properties and the liabilities associated with the loans taken by the principal borrower. The Banking Court had rightly decreed the suit against the appellants and respondent No. 2, as the appeal was deemed to be an attempt to prolong the proceedings and avoid payment of outstanding dues. The court emphasized that the burden of proof lay upon the appellants, which they failed to discharge. Therefore, the judgment of the Banking Court was upheld. |
| Summary |
This case revolves around the appeal filed by Messrs Supreme Trading Corporation against a decree issued by the Banking Court regarding the recovery of loans under the Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997. The appellants contested their liabilities as guarantors for the principal borrower, who had defaulted on payments. The Banking Court had found that the appellants executed personal guarantees and created an equitable mortgage by depositing original title deeds for properties, which were used as collateral for the loans. The court ruled that the appeal was merely a strategy to delay the enforcement of the Banking Court's judgment. It emphasized the importance of accountability in financial transactions and the obligations of guarantors in loan agreements. The decision underlines the legal principles surrounding banking recoveries, loan guarantees, and the responsibilities of all parties involved in financial agreements. |
| Court |
Sindh High Court
|
| Entities Involved |
HABIB BANK LTD.,
SUPREME TRADING CORPORATION,
HASEEB TRADERS,
ZIRCON TRADING CORPORATION
|
| Judges |
MUHAMMAD ROSHAN ESSANI,
KHILJI ARIF HUSSAIN
|
| Lawyers |
Miss Sofia Saeed,
R. F. Virjee,
Moin Azhar
|
| Petitioners |
MESSRS SUPREME TRADING CORPORATION AND OTHERS
|
| Respondents |
HABIB BANK LTD. AND ANOTHER
|
| Citations |
2004 SLD 507,
2004 CLD 104
|
| Other Citations |
Not available
|
| Laws Involved |
Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997
|
| Sections |
21
|