| Case ID |
0a98dad4-09a6-4598-aeb2-b4fc51ad9d80 |
| Body |
View case body. Login to View |
| Case Number |
Civil Appeal No. 16 of 1988 |
| Decision Date |
Apr 29, 1991 |
| Hearing Date |
|
| Decision |
The Supreme Court dismissed the appeal filed by the appellants against the decision of the Lahore High Court. The appellants, who were the Amir Weaving Factory and others, had previously confessed judgment in favor of the United Bank Ltd. regarding a loan amount. The trial court had granted the appellants the right to pay the loan in installments but denied them post-decretal interest. The High Court later allowed the bank's appeal ex parte, granting interest on the decretal amount from the date of decree until realization. The Supreme Court found no merit in the appeal, concluding that the High Court's decision was valid and consistent with the mandatory provisions of the Banking Companies (Recovery of Loans) Ordinance, 1979, which required the grant of interest to the decree-holder. Therefore, the appeal was dismissed without any order as to costs. |
| Summary |
In the case of Civil Appeal No. 16 of 1988, the Supreme Court of Pakistan addressed significant issues regarding loan recovery and the implications of interest on decrees. The case arose when the United Bank Ltd. initiated proceedings against Amir Weaving Factory for the recovery of a loan amounting to Rs. 3,68,924. The appellants had initially confessed judgment and sought to repay the amount in installments, which the trial court permitted while denying any post-decretal interest. The High Court's later ruling, which granted ex parte interest from the date of the decree, was contested by the appellants. The Supreme Court upheld the High Court's decision, emphasizing the mandatory nature of interest provisions under the Banking Companies (Recovery of Loans) Ordinance, 1979. This case highlights the legal framework governing banking disputes and the importance of adhering to procedural rules in appeals. The court's decision reinforces the rights of decree-holders in recovering interest, making it a pivotal reference for future cases involving loan recovery and interest claims. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
United Bank Ltd.,
Amir Weaving Factory
|
| Judges |
MUHAMMAD AFZAL ZULLAH, C.J.,
SAAD SAOOD, JAN,
RUSTAM S. SIDHWA, J.
|
| Lawyers |
Not available
|
| Petitioners |
Messrs AMIR WEAVING FACTORY and others
|
| Respondents |
Messrs UNITED BANK LTD
|
| Citations |
1991 SLD 1336 = 1991 SCMR 1737
|
| Other Citations |
Not available
|
| Laws Involved |
Banking Companies (Recovery of Loans) Ordinance, 1979,
Civil Procedure Code, 1908,
Constitution of Pakistan, 1973
|
| Sections |
8(2),
O.XLI, R. 21,
S. 151,
Art. 185(2)
|