| Case ID |
0966e091-baef-4ca6-b27f-b9e6589b271b |
| Body |
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| Case Number |
F.A.O. No. 40322 of 2020 |
| Decision Date |
Oct 26, 2021 |
| Hearing Date |
Oct 26, 2021 |
| Decision |
The Lahore High Court allowed the appeal filed under section 22 of the Financial Institutions (Recovery of Finances) Ordinance, 2001, setting aside the impugned judgment dated 25.08.2020 of the Banking Court. The court determined that the Banking Court had erred in returning the plaint based on a lack of pecuniary jurisdiction without first addressing the application for leave to defend. The ruling emphasized that the valuation of the suit should be determined according to the plaintiff's assessment and that the Banking Court was obligated to decide the leave application prior to any further action on the plaint. The court directed the Banking Court to resolve the leave application and, if granted, to subsequently address the jurisdictional issues raised by the respondent. |
| Summary |
In the case of F.A.O. No. 40322 of 2020, heard by the Lahore High Court, the appellants challenged a Banking Court's decision that returned their plaint due to alleged lack of pecuniary jurisdiction. The key legal issue revolved around the proper assessment of the suit's valuation, which the appellants had set at Rs. 15,000/- for court fee and jurisdiction purposes. The court underscored the principle that the Banking Court must initially decide on any leave to defend before taking further actions on the plaint. The ruling clarified procedural requirements under the Financial Institutions (Recovery of Finances) Ordinance, emphasizing the need for a proper inquiry and evidence collection if there was disagreement over the valuation. The court's decision reinstated the appellants' right to proceed with their suit, reinforcing the procedural safeguards for litigants in financial disputes. |
| Court |
Lahore High Court
|
| Entities Involved |
Bank of Punjab,
Muslim Commercial Bank Ltd.,
M/S. SUI Northern Gas Pipelines Ltd.
|
| Judges |
ABID AZIZ SHEIKH, JUSTICE,
MUHAMMAD SAJID MEHMOOD SETHI, JUSTICE
|
| Lawyers |
Muhammad Imran Malik,
Kamran Bashir Mughal,
Asad Javed,
Sikandar Abbas,
Barrister Ameer Abbas Ali Khan,
A.A.G.
|
| Petitioners |
3 OTHERS,
MUHAMMAD SALEEM
|
| Respondents |
PAK BRUNEI INVESTMENT COMPANY LTD. THROUGH CHIEF MANAGER/PRESIDENT
|
| Citations |
2022 SLD 275,
2022 CLD 84
|
| Other Citations |
2006 CLD 816,
2021 CLD 1037,
1995 SCMR 584,
1982 CLC 9,
1993 CLC 1391,
PLD 2002 Kar. 511,
2006 CLD 1147,
2009 YLR 1797,
2013 YLR 942,
2016 CLC 1425,
2016 YLR 1233,
2018 CLD 1351,
2021 CLD 536,
PLD 2016 SC 409,
2017 YLR 179,
2019 CLC 79,
2003 CLD 245,
2004 CLD 1645,
2005 CLD 1201,
2006 CLD 946,
2007 CLD 492,
2014 CLD 1181,
2019 CLD 1031,
2020 CLD 1379
|
| Laws Involved |
Financial Institutions (Recovery of Finances) Ordinance, 2001,
Court Fees Act, 1870,
Suits Valuation Act, 1887,
Civil Procedure Code, 1908
|
| Sections |
9,
10,
7,
22,
7,
8,
Order VII, Rule 11
|