| Case ID |
1581dded-4468-431c-aaa8-d855ecf71c1f |
| Body |
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| Case Number |
F.A.O. No.133 of 2010 |
| Decision Date |
Mar 05, 2013 |
| Hearing Date |
Mar 05, 2013 |
| Decision |
The appeal was dismissed as the appellants failed to prove that they were bona fide purchasers. The court emphasized that the principle of lis pendens applied, which defeated the appellants' claims. The appellants had purchased the mortgaged property three months after the decree was passed, and the price they paid was significantly lower than that of the previous purchaser, indicating a lack of bona fide intention. The court reiterated that under Section 23 of the Financial Institutions (Recovery of Finances) Ordinance, 2001, the suit converted into an execution application automatically, negating the need for a formal application by the bank. Therefore, the appeal was found to have no merits and was dismissed. |
| Summary |
In this case, the Lahore High Court addressed the issue of bona fide purchasers in the context of a mortgage and subsequent decree. The appellants, who claimed to be bona fide purchasers of a property, were unable to substantiate their claims as they purchased the property after a decree had been made against it. The court highlighted the importance of the principle of lis pendens, which maintains that pending litigation must be disclosed and can affect subsequent transactions. The appellants argued that they were unaware of the decree and had taken precautions in their purchase, but the court found their claim unconvincing given the timing of their purchase and the price paid, which was significantly lower than that of the prior owner. The decision reinforces the legal standing that purchasers must perform due diligence and be aware of any existing legal encumbrances on a property. This case serves as a critical reminder for potential property buyers to investigate any legal claims against properties before completing transactions to avoid similar disputes. |
| Court |
Lahore High Court
|
| Entities Involved |
Not available
|
| Judges |
IJAZ AHMAD,
AMIN-UD-DIN KHAN
|
| Lawyers |
Muhammad Saleem Iqbal,
Muhammad Waseem Shahab,
Ahmad Nadeem Khan
|
| Petitioners |
another,
MUHAMMAD HUSSAIN
|
| Respondents |
3 others,
JUDGE BANKING COURT NO.1 MULTAN
|
| Citations |
2013 SLD 2139,
2013 CLD 1684
|
| Other Citations |
Khalid Adeeb Khanam v. Messrs Prudential Investment Bank Ltd. and others 2002 CLD 451,
Risaldar Ghazi Khan and another v. Abdur Rehman and another 1984 CLC 1615
|
| Laws Involved |
Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001),
Transfer of Property Act (IV of 1882)
|
| Sections |
15,
23,
52
|