| Case ID |
0a1a963f-3f9f-4279-9cfe-2e2777364f8d |
| Body |
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| Case Number |
Writ Petition No. 349 of 1993 |
| Decision Date |
Sep 05, 1993 |
| Hearing Date |
|
| Decision |
In this case, the Lahore High Court ruled in favor of the petitioner, M/s. Zasha Limited, determining that the Agricultural Development Bank, being a statutory body, had obligations to provide financial assistance as outlined in the Agricultural Development Bank Ordinance (IV of 1961). The court emphasized that the bank could not back out of its promises based on contractual obligations alone, as the financial assistance was a matter of public duty. The court found that the petitioner's claims were valid under constitutional jurisdiction, and thus directed the bank to extend credit facilities and disburse the remaining Foreign Currency Loan. The ruling clarified the nature of obligations under public law and the significance of statutory bodies in fulfilling their commitments to the public. |
| Summary |
This case involves a constitutional petition by M/s. Zasha Limited against the Agricultural Development Bank of Pakistan regarding the disbursement of a Foreign Currency Loan. The petitioner sought a mandamus directing the bank to release the loan amount, which was crucial for the establishment of a Solvent Oil Extraction-cum-Refining Plant. The court examined the legal framework under the Agricultural Development Bank Ordinance (IV of 1961) and the obligations of statutory bodies in providing financial assistance. The ruling emphasized the importance of adhering to commitments made by public institutions and clarified that contractual obligations cannot be used to deny statutory duties. This case is significant in understanding the intersection of public law and financial assistance mechanisms, particularly in the agricultural sector. The court's decision highlights the necessity for banks to uphold their promises in light of the resources provided by the state and the impact of such decisions on economic development. |
| Court |
Lahore High Court
|
| Entities Involved |
Agricultural Development Bank of Pakistan,
Zasha Limited
|
| Judges |
MUNIRA. SHAIKH, J
|
| Lawyers |
Mansoor Ahmad,
Ashtar Ausaf Ali,
Azmat Saeed,
Raja Muhammad Akram
|
| Petitioners |
M/s. ZASHA LIMITED (PUBLIC) LIMITED COMPANY, LAHORE
|
| Respondents |
Nemo,
AGRICULTURAL DEVELOPMENT BANK OF PAKISTAN, ISLAMABAD
|
| Citations |
1993 SLD 1234,
1993 PLD 914
|
| Other Citations |
Gujarat State Financial Corporation v. M/s. Lotus Hotels Pvt. Ltd AIR 1983 SC 848,
Pakistan through Secretary, Ministry of Commerce and 2 others v. Salah-ud-Din and 3 others PLD 1991 SC 546,
Federation of Pakistan and others v. Ch. Muhammad Aslam and others 1986 SCMR 916,
M/s. Sandal Fibres Limited v. Government of Pakistan and 7 others PLD 1992 Lah. 400
|
| Laws Involved |
Agricultural Development Bank Ordinance (IV of 1961),
Constitution of Pakistan (1973),
Protection of Economic Reforms Act (XII of 1992)
|
| Sections |
16,
24(c),
199,
10
|