| Case ID |
09495197-a5e2-45fd-8154-cc02585285dd |
| Body |
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| Case Number |
Civil Original Suit No.4 of 2001 |
| Decision Date |
Jan 03, 2002 |
| Hearing Date |
Jan 03, 2002 |
| Decision |
The Lahore High Court decided in favor of the plaintiff, Messrs Union Bank Limited, in a suit for recovery of Rs.85,246,891 along with accruing mark-up and costs. The court found that the defendants had obtained financial facilities from the bank and were under a legal obligation to repay their debts as per the agreements made. The court ruled that the defendants' denial of liability was insufficient as they failed to provide evidence that would substantiate their claims. Consequently, the court granted leave to appear and defend the suit subject to the defendants providing cash security or a bank guarantee equivalent to the disputed amount. The case emphasized the importance of fulfilling financial obligations and the legal repercussions of failing to do so. |
| Summary |
This case revolves around the recovery of a significant bank loan amounting to Rs.85,246,891 under the Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act. The plaintiff, Union Bank Limited, sought recovery from the defendants, including Silver Oil Mills and several guarantors. The legal proceedings highlighted the obligations of borrowers and guarantors in financial agreements, particularly regarding the necessity of active participation in legal actions and the implications of failing to discharge financial liabilities. The court's decision underscored the necessity of providing adequate security when contesting claims, which is crucial for both lenders and borrowers in the banking sector. The ruling serves as a precedent for similar banking recovery cases, emphasizing the legal frameworks governing financial transactions and the responsibilities of all parties involved. Keywords: bank loan recovery, financial obligations, legal liabilities, Lahore High Court, Banking Companies Act. |
| Court |
Lahore High Court
|
| Entities Involved |
Messrs UNION BANK LIMITED,
SILVER OIL MILLS (PVT.) LIMITED
|
| Judges |
MUHAMMAD NAWAZ ABBASI
|
| Lawyers |
Syed Iqbal Haider,
Muhammad Afzal Siddiqui,
Abdur Raheem Bhatti,
Miss Alia Naeem
|
| Petitioners |
Messrs UNION BANK LIMITED
|
| Respondents |
17 others,
SILVER OIL MILLS (PVT.) LIMITED
|
| Citations |
2002 SLD 2180,
2002 CLD 741
|
| Other Citations |
Not available
|
| Laws Involved |
Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act No. XV of 1997
|
| Sections |
9,
10
|