| Case ID |
0a9c0a89-45d4-4d7b-95d7-18c85c39e1f9 |
| Body |
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| Case Number |
Execution Application No. 46 of 2003 |
| Decision Date |
Jan 15, 2007 |
| Hearing Date |
|
| Decision |
In this execution application, the decree-holder sought recovery of Rs. 21,925,002 along with Rs. 479,444.48 as mark-up accrued thereon until 30-04-2003. The court ruled that the decree-holder is entitled to the recovery of the outstanding amount along with the awarded mark-up at the rate of 20% per annum from 01-05-2003. The court emphasized the distinction between contractual and legal obligations regarding mark-up, asserting that the award of mark-up on the decretal amount was lawful under the provisions of the Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997. The judgment-debtor's objections regarding the legality of the mark-up clause were dismissed, and the court directed the judgment-debtor to deposit the final outstanding amount, failing which the Nazir would sell the mortgaged properties to effect recovery. |
| Summary |
The Sindh High Court addressed the execution application filed by the National Bank of Pakistan against Marhaba Textile Ltd. and others, concerning the recovery of a substantial outstanding amount along with accrued mark-up. The court clarified the legal framework governing the award of mark-up under the Financial Institutions (Recovery of Finances) Ordinance and the Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, emphasizing the legal obligations that arise from a decree. The ruling highlighted the importance of distinguishing between contractual and legal mark-up, affirming that the Banking Court has the authority to award legal mark-up independent of any contractual stipulations. The decision reinforced the enforceability of rights under the laws applicable at the time of filing the suit, ensuring that the decree-holder's claim for recovery was upheld. This case is significant for financial institutions and legal practitioners in understanding the nuances of financial recovery laws and the implications of decree enforcement. |
| Court |
Sindh High Court
|
| Entities Involved |
Not available
|
| Judges |
FAISAL ARAB, J
|
| Lawyers |
Adnan Chaudhry,
Kh. Shams-ul-Islam
|
| Petitioners |
Messrs NATIONAL BANK OF PAKISTAN
|
| Respondents |
6 others,
Messrs MARHABA TEXTILE LTD.
|
| Citations |
2007 SLD 2817,
2007 CLD 508
|
| Other Citations |
PLD 1961 SC 523,
AIR 1957 SC 540,
Habib Bank Limited v. Karachi Pipe Mills Limited 2006 CLD 842
|
| Laws Involved |
Financial Institutions (Recovery of Finances) Ordinance, 2001,
Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997,
Contract Act, 1872
|
| Sections |
19,
15,
74
|