| Case ID |
0b8721a8-95be-4f9b-a789-742e01bec9a0 |
| Body |
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| Case Number |
Ist Civil Appeal No. D-09 of 2011 |
| Decision Date |
Mar 15, 2018 |
| Hearing Date |
Dec 13, 2017 |
| Decision |
The Sindh High Court modified the decree passed by the Banking Court in favor of the respondent bank, allowing the appeal and decreeing the suit in the sum of Rs. 17,668,548.03, which included the purchase price, penalty, and markup on the penalty. The court found that the appellants were liable for the principal amounts and certain penalties as per the agreements and undertakings they had executed. The court emphasized that the penalties were valid due to the provisions of the Financial Institutions (Recovery of Finances) Ordinance and the relevant circulars from the State Bank of Pakistan. |
| Summary |
In the case of Nand Lal and Another vs. Askari Commercial Bank Limited and Others, the Sindh High Court addressed issues concerning the recovery of finances under the Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001). The appellants had taken financing for export purposes but failed to meet the required export performance, leading to penalties imposed by the State Bank of Pakistan. The Banking Court initially decreed the suit in favor of the bank, which the appellants contested. The High Court ultimately upheld the Banking Court's decree but modified the amounts awarded. This case highlights the legal complexities surrounding financial agreements, penalties for non-compliance, and the enforcement of banking regulations. Keywords: financial recovery, banking law, penalties, export finance, Sindh High Court. |
| Court |
Sindh High Court
|
| Entities Involved |
Not available
|
| Judges |
NADEEM AKHTAR,
MUHAMMAD FAISAL KAMAL ALAM
|
| Lawyers |
Ashok Kumar K. Jamba,
Muhammad Shamim Khan
|
| Petitioners |
NAND LAL AND ANOTHER
|
| Respondents |
ASKARI COMMERCIAL BANK LIMITED AND OTHERS
|
| Citations |
2018 SLD 2192,
2018 CLD 1320
|
| Other Citations |
2002 CLC 166,
PLD 2002 SC 500,
2007 CLD 435,
2003 CLD 39
|
| Laws Involved |
Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)
|
| Sections |
3(2),
9,
10,
10(11),
22
|