| Case ID |
09518783-5245-43ac-9ed5-973b649fdce3 |
| Body |
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| Case Number |
High Court Appeal No.274 |
| Decision Date |
Dec 12, 2008 |
| Hearing Date |
|
| Decision |
The Sindh High Court dismissed the appeal of the Industrial Development Bank of Pakistan, affirming the validity of the sale of mortgaged property despite the appellant's claims. The court highlighted that the purchaser acted in good faith and had paid the sale price, thus should not be prejudiced by the court's actions. The ruling emphasized the importance of adhering to procedural laws to protect the rights of all parties involved. The court found that the appellant failed to demonstrate gross negligence or misrepresentation by the respondent bank, which held a prior mortgage on the property. Therefore, the court ruled that the appellant's claim to the sale proceeds was inferior to that of the prior mortgagee. |
| Summary |
In the case of Industrial Development Bank of Pakistan vs. Muhammad Ayub and others, the Sindh High Court addressed issues surrounding the sale of mortgaged property and the rights of mortgagees. The case arose when the Industrial Development Bank sought to enforce its mortgage rights after the respondents defaulted on financial obligations. The court examined the validity of a sale conducted by the Official Assignee and the rights of various mortgage holders. It was determined that the sale was lawful, and the appellant's claims were dismissed due to procedural compliance and the bona fide nature of the purchaser's actions. This case underscores the significance of understanding mortgage law and the implications of equitable versus registered mortgage claims. Key legal principles from the Civil Procedure Code and the Transfer of Property Act were applied, providing a clear precedent for future cases involving similar issues. The decision reinforces the need for due diligence by mortgagees and highlights the protections afforded to bona fide purchasers in property transactions. |
| Court |
Sindh High Court
|
| Entities Involved |
National Bank of Pakistan,
Muhammad Ayub,
Industrial Development Bank of Pakistan
|
| Judges |
KHILJI ARIF HUSSAIN,
DR. QAMMARUDDIN BOHRA
|
| Lawyers |
Ain-ud-Din Khan,
Khaleeq Ahmed
|
| Petitioners |
INDUSTRIAL DEVELOPMENT BANK OF PAKISTAN
|
| Respondents |
4 others,
MUHAMMAD AYUB
|
| Citations |
2009 SLD 1847,
2009 CLD 346
|
| Other Citations |
Muhammad Saleem v. Manager, United Bank Limited, PLD 1990 (AJ & K) 29,
Hoechst Pakistan and others v. Maqbool Ahmad and another, 1998 CLC 134,
Messrs Industrial Development Bank of Pakistan v. Messrs Maida Limited and others, 1994 SCMR 2248,
United Bank Ltd. v. Messrs Shaikh Rayon Silk Mills Ltd. 2002 CLC 696,
Lloyds Bank, Ltd. v. P.E. Guzdar & Co. AIR 1930 Cal.22,
Kanigalla Prakasa Rao v. Nanduri Ramakrishna Rao and others, AIR 1982 Andhra Prad. 272
|
| Laws Involved |
Industrial Development Bank of Pakistan Ordinance,
Civil Procedure Code,
Transfer of Property Act
|
| Sections |
39,
O.XXI, Rr.89,
O.XXI, Rr.90,
O.XXI, Rr.91,
O.XXXIV, R.13,
S.78
|