| Case ID |
0bec3e9b-ba61-4719-b256-3b277c56e1c0 |
| Body |
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| Case Number |
Regular First Appeal Case No.451 of 1998 |
| Decision Date |
Jul 15, 2003 |
| Hearing Date |
Jul 15, 2003 |
| Decision |
The appeal was against the Banking Court's decree for the recovery of US$ 11,375 with mark-up and liquidated damages. The Banking Court had ruled in favor of the respondent-Bank, stating that the appellant had withdrawn amounts in excess of his entitlement due to a clerical error. The Court held that the appellant was deemed to have requested a loan for the excess amount withdrawn, based on the provisions of the Banking Companies (Recovery of Loans) Act. However, the Court found that the Bank was not entitled to claim mark-up since there was no agreement for it. The decree was modified to exclude the mark-up claim while affirming the principal amount owed. |
| Summary |
This case revolves around the Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997, addressing issues of clerical errors in banking transactions and the liabilities that arise from them. The Lahore High Court examined the case where the appellant, Muhammad Anwar, had withdrawn funds exceeding his account balance due to a clerical error by Union Bank Limited. The court ruled that such transactions, even if erroneous, create a legal obligation for repayment. The decision emphasized the importance of justice and equity in financial dealings, particularly when clerical errors lead to unintentional withdrawals. The court clarified that while the appellant was liable for the principal amount, the claim for mark-up was not justified due to the absence of a prior agreement, thereby modifying the Banking Court's decree. This case highlights critical aspects of banking regulations and the responsibilities of both banks and their clients in financial transactions. |
| Court |
Lahore High Court
|
| Entities Involved |
UNION BANK LIMITED
|
| Judges |
SYED ZAHID HUSSAIN,
MUHAMMAD AKHTAR SHABBIR
|
| Lawyers |
Kh. Saeed-uz-Zafar,
Muhammad Khalid Mahmood Khan
|
| Petitioners |
MUHAMMAD ANWAR
|
| Respondents |
UNION BANK LIMITED
|
| Citations |
2004 SLD 666 = 2004 CLD 1159
|
| Other Citations |
National Bank of Pakistan v. Muhammad Ashraf Sanik and another PLD 1987 Lah. 17,
Habib Bank Limited v. Farooq Compost Fertilizer Corporation Ltd. and 4 others 1993 MLD 1571,
National Bank of Pakistan v. Punjab Buildings Products Ltd. PLD 1998 Karachi 302,
Habib Bank v. Messrs Qayyum Spinning Ltd. 2001 MLD 1351
|
| Laws Involved |
Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997
|
| Sections |
2,
7,
15
|