| Case ID |
1649ae76-9291-4221-a279-23a0a82f0bee |
| Body |
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| Case Number |
Suit No.B-78 of 2000 |
| Decision Date |
Nov 07, 2000 |
| Hearing Date |
|
| Decision |
The court decreed the suit in favor of the plaintiffs for a total amount of Rs.4,767,594.16 against the defendants jointly and/or severally. The decision emphasized that any increase in the actual debt payable would amount to Riba, which is against the Qur'anic Injunctions. The court disallowed various claims made by the plaintiffs, including rebates and commitment charges, on the grounds that they did not comply with the agreements and were not justified. The court also held that the penalties for non-utilization of the facility could not be imposed on the defendants, and any liquidated damages claimed were not proven. The ruling reinforced the importance of adhering to the original contractual terms and conditions without unilateral alterations. |
| Summary |
This case revolves around the recovery of loans under the Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997). The Sindh High Court addressed the legal implications of Riba in financial transactions, emphasizing the prohibition of interest under Islamic law. The court examined the agreements between the parties, particularly focusing on the terms regarding the purchase price, rebates, and penalties for non-utilization of loans. It was determined that any increase in the debt would be considered Riba, which is against Islamic principles. The court's decision highlighted the necessity for clarity and adherence to the terms outlined in financial agreements, ensuring that any claims made were substantiated by evidence. This ruling is significant for financial institutions and borrowers alike, as it sets a precedent regarding the enforceability of loan agreements and the interpretation of Riba in banking practices. |
| Court |
Sindh High Court
|
| Entities Involved |
Ultra Engineering Industries (Pvt.) Ltd.,
Development Financial Institution/Banking Company
|
| Judges |
ANWAR MANSOOR KHAN, J
|
| Lawyers |
Miss Sofia Saeed
|
| Petitioners |
SULTAN AHMAD and 3 others
|
| Respondents |
|
| Citations |
2001 SLD 2577 = 2001 CLC 1551
|
| Other Citations |
PLD 2000 SC 225
|
| Laws Involved |
Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997)
|
| Sections |
9
|