Legal Case Summary

Case Details
Case ID 0bf262b6-10d7-4f1d-a559-c8fc47159d7e
Body View case body.
Case Number First Appeal from Order No.312 of 2001
Decision Date Nov 21, 2001
Hearing Date
Decision The appeal was accepted, the impugned order was set aside and the case was remanded to the Executing Court for a fresh decision. The Executing Court was directed to conduct an inquiry to determine whether the agreement to sell was collusive and whether Sajid Mahmood was a bona fide purchaser for value without notice of any encumbrance on the property. The court emphasized the necessity of a proper inquiry to resolve the factual contentions raised by both parties regarding the agreement and the conveyance of title.
Summary In this significant case, the Lahore High Court dealt with a financial dispute involving a bank and a property purchaser. The core issue revolved around the execution of a decree where the respondent, Sajid Mahmood, claimed to be a bona fide purchaser of a property without notice of any encumbrance. The Executing Court initially accepted the agreement to sell at face value, leading to allegations of collusion from the bank, which was the decree holder. The High Court found that the Executing Court failed to adequately investigate these allegations. Consequently, the appeal was allowed, and the case was remanded for a thorough inquiry into the facts surrounding the sale agreement, ensuring that the principles of fair trial and justice were upheld. This case underscores the importance of due diligence in property transactions and the necessity for thorough judicial scrutiny in disputes involving financial institutions.
Court Lahore High Court
Entities Involved UNITED BANK LIMITED, SAJID MAHMOOD
Judges JAWWAD S. KHAWAJA, MUHAMMAD SAIR ALI
Lawyers Muhammad Afzal Sandhu, Zahid Malik
Petitioners UNITED BANK LIMITED
Respondents 5 others, SAJID MAHMOOD
Citations 2002 SLD 2102, 2002 CLD 313
Other Citations Not available
Laws Involved Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001), Civil Procedure Code (V of 1908)
Sections 7, O.XXI-Rr.58, O.XXI-Rr.59, O.XXI-Rr.62