| Case ID |
09c96825-3bc6-4b46-b086-ed6e48ea7f85 |
| Body |
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| Case Number |
Civil Original Suit No.155 of 1998 |
| Decision Date |
Jan 22, 2003 |
| Hearing Date |
|
| Decision |
The Lahore High Court determined that the plaintiff's suit against the United Bank Limited and its officials lacked jurisdiction. The plaintiff sought damages for malicious prosecution and defamation, claiming to have been wrongfully treated as a director of a company. However, the court ruled that the plaintiff's claims did not arise from a financial relationship as defined under the Banking Companies Act, leading to the conclusion that the court had no authority to hear the case. Consequently, the plaint was returned for presentation before a competent court. |
| Summary |
In the case of Haji Muhammad Nawaz Khokhar vs United Bank Limited, the Lahore High Court addressed significant issues concerning jurisdiction in banking litigation. The plaintiff, Haji Muhammad Nawaz Khokhar, filed a suit claiming damages of Rs. 500 million for malicious prosecution and defamation due to actions taken by the bank against him as a former director of N. Khokhar Textile Industry Limited. The court emphasized that the suit was improperly filed, as the claims did not pertain to any loan or financial obligation under the Banking Companies Act. The ruling underscored the necessity for legal clarity regarding the definition of 'customer' and 'borrower' within banking laws. The judgment illustrates the importance of establishing jurisdiction in financial disputes and the implications of personal grievances on corporate matters. This case serves as a critical reference point for future banking litigation, particularly in defining the limits of jurisdiction in relation to the Banking Companies Act and the Civil Procedure Code. |
| Court |
Lahore High Court
|
| Entities Involved |
UNITED BANK LIMITED,
N. Khokhar Textile Industry Limited,
Haji MUHAMMAD NAWAZ KHOKHAR
|
| Judges |
MUHAMMAD SAIR ALI, J
|
| Lawyers |
Mian Nisar Ahmad,
Raja Muhammad Akram
|
| Petitioners |
Haji MUHAMMAD NAWAZ KHOKHAR
|
| Respondents |
UNITED BANK LIMITED,
President and 3 others
|
| Citations |
2003 SLD 2951 = 2003 CLD 1165
|
| Other Citations |
Muhammad Khalid v. Civil Judge 2001 YLR 905,
Settlement and Rehabilitation Commissioner, Hyderabad and others v. Mannu Khan and others 1973 SCMR 62,
1993 SCMR 2101,
1990 SCMR 1630
|
| Laws Involved |
Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act,
Civil Procedure Code (V of 1908)
|
| Sections |
2(c),
2(d),
2(9),
O.VII, R.10,
O.VII, R.11
|