| Case ID |
0fbed9d0-04e3-4b78-a10e-f03e7b7b7523 |
| Body |
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| Case Number |
F.A.O. No. 155 of 2005 |
| Decision Date |
Jun 28, 2006 |
| Hearing Date |
Jun 28, 2006 |
| Decision |
The Lahore High Court allowed the appeal against the order of the Banking Court, which had dismissed the application for setting aside an ex parte decree. The court found that the ex parte decree was invalid as it was passed without complying with the mandatory service requirements stipulated in section 9(5) of the Financial Institutions (Recovery of Finances) Ordinance, 2001. The court emphasized that proper service must be made through all prescribed modes, including summons, registered post, and newspaper publication. Since the defendants were not properly served, the decree was declared void and set aside, allowing the defendants to defend their case. |
| Summary |
This case involves a dispute between Hussan Ara and others against the Bank of Punjab regarding a loan recovery suit. The Banking Court had issued an ex parte decree due to the defendants' failure to appear. However, the Lahore High Court found that the service of summons was not properly executed according to the Financial Institutions (Recovery of Finances) Ordinance, 2001, which necessitates multiple modes of service. The court ruled that the lack of adequate service violated the principles of natural justice, making the ex parte decree void. The High Court directed that all future summons must be issued in accordance with the prescribed legal standards to ensure fairness in judicial proceedings. |
| Court |
Lahore High Court
|
| Entities Involved |
Not available
|
| Judges |
MAULVI ANWARUL HAQ,
MUHAMMAD JEHANGIR ARSHAD
|
| Lawyers |
Ch. Manzoor-ul-Haq,
Muhammad Shakil Chaudhry
|
| Petitioners |
8 others,
HUSSAN ARA
|
| Respondents |
BANK OF PUNJAB through Manager
|
| Citations |
2006 SLD 2956,
2006 CLD 1502
|
| Other Citations |
PLD 2002 SC 101,
PLJ 2005 SC 709
|
| Laws Involved |
Financial Institutions (Recovery of Finances) Ordinance, 2001,
Civil Procedure Code, 1908
|
| Sections |
9(5)
|