| Case ID |
192ee98e-3d8d-4be9-b78b-e7923a0d3ae6 |
| Body |
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| Case Number |
R.F.A. No.242 of 1997 |
| Decision Date |
Jun 24, 2003 |
| Hearing Date |
Jun 24, 2003 |
| Decision |
The Lahore High Court set aside the order and decree dated 9-8-1997 passed by the Banking Court No.II, Lahore, thereby accepting the appeal filed by the Industrial Development Bank of Pakistan. The High Court found that the Banking Court had erroneously taken the date of service of the notice as 8-5-1997, which incorrectly barred the application to defend within the limitation period. The court emphasized the importance of affording proper opportunity to defend and ensuring that decisions are made based on accurate dates and effective parties. Consequently, the matter was remitted to the Banking Court for fresh consideration of the application for leave to appear and defend in accordance with the law. |
| Summary |
In the landmark case Industrial Development Bank of Pakistan and 2 Others vs. Messrs Muhammad Shafiq Tanneries (Pvt.) Limited and 6 Others, the Lahore High Court addressed critical issues surrounding the application of the Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997. Heard on June 24, 2003, this case delved into the procedural intricacies of loan recovery and the timely submission of defense applications. The appellants, represented by Rashdeen Nawaz, contested the Banking Court's decision which had deemed their defense application out of time based on an erroneous notice date. Imran Nazir, acting for the respondents, argued the limitation period should commence from an earlier service date to which several officials had been notified. The High Court meticulously reviewed the timeline, highlighting discrepancies in the Banking Court's calculations and underscoring the necessity for accurate service dates to uphold the rights of the parties involved. By overturning the initial decree, the court reinforced the principles of fair opportunity and due process in financial litigation. This decision not only rectified the immediate issue but also set a precedent for future cases involving loan recovery and the interpretation of limitation periods under the relevant banking laws. Additionally, the court referenced pivotal cases such as Haji Ali Khan & Company, Abbottabad and 8 others v. Messrs Allied Bank of Pakistan Limited, Abbottabad PLD 1995 SC 362 and Messrs Qureshi Salt & Spices Industries, Khushab and another v. Muslim Commercial Bank Limited, Karachi through President and 3 others 1999 SCMR 2353, emphasizing the judiciary's role in ensuring lawful and equitable resolutions. This case is a cornerstone in understanding the application of banking recovery laws in Pakistan, highlighting the balance between financial institutions' rights to recover dues and the legal safeguards afforded to debtors. |
| Court |
Lahore High Court
|
| Entities Involved |
Industrial Development Bank of Pakistan,
Messrs Muhammad Shafiq Tanneries (Pvt.) Limited
|
| Judges |
SYED ZAHID HUSSAIN, JUSTICE,
MAULVI ANWARUL HAQ, JUSTICE
|
| Lawyers |
Rashdeen Nawaz,
Imran Nazir
|
| Petitioners |
2 others,
INDUSTRIAL DEVELOPMENT BANK OF PAKISTAN
|
| Respondents |
6 others,
MESSRS MUHAMMAD SHAFIQ TANNERIES (PVT.) LIMITED
|
| Citations |
2004 SLD 664,
2004 CLD 1157
|
| Other Citations |
Haji Ali Khan & Company, Abbottabad and 8 others v. Messrs Allied Bank of Pakistan Limited, Abbottabad PLD 1995 SC 362,
Messrs Qureshi Salt & Spices Industries, Khushab and another v. Muslim Commercial Bank Limited, Karachi through President and 3 others 1999 SCMR 2353
|
| Laws Involved |
Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997,
Financial Institutions (Recovery of Finances) Ordinance, (XLVI of 2001)
|
| Sections |
10,
10,
22
|