| Case ID |
1a11e6da-a7da-4de3-8524-2db0315a42e7 |
| Body |
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| Case Number |
R.F.A. No. 188 of 2017 |
| Decision Date |
Sep 20, 2022 |
| Hearing Date |
Sep 20, 2022 |
| Decision |
The appeal was dismissed with costs, affirming the decree passed by the Banking Court in favor of the Allied Bank Limited. The court found that the appellants did not fulfill the necessary legal requirements to defend against the suit for recovery of finances. The Banking Court's decision was deemed lawful, as the appellants failed to provide substantial legal arguments to warrant a different outcome. The court ruled that the original suit was competently filed, and the execution of finance and security documents was valid. The appellants' claims of irregularities and procedural errors were rejected, reinforcing the bank's right to recover the amount due from the appellants. |
| Summary |
This case revolves around a Regular First Appeal filed by S.G. POLYPROPYLENE (PRIVATE) LTD. against the Allied Bank Limited regarding a suit for recovery of finances. The Banking Court had previously decreed the suit in favor of the bank, ordering the appellants to pay a significant amount due to default on a Letter of Credit Facility. The appellants contended that various legal and factual questions warranted a leave to defend the suit, but the court found that they failed to substantiate their claims sufficiently. The decision highlighted the importance of compliance with the Financial Institutions (Recovery of Finances) Ordinance and the implications of failing to meet the legal requirements for a defense. The ruling emphasizes the bank's rights under financial recovery laws, reiterating that separate suits for different finance facilities can be valid under the law. The case serves as a critical reference for financial institutions and borrowers regarding the execution of financial agreements and the legal processes involved in recovery suits. |
| Court |
Banking Court-III, Multan
|
| Entities Involved |
ALLIED BANK LIMITED,
S.G. POLYPROPYLENE (PRIVATE) LTD.
|
| Judges |
ABID HUSSAIN CHATTHA,
ANWAAR HUSSAIN
|
| Lawyers |
Sardar Riaz Karim,
Muhammad Saleem Iqbal
|
| Petitioners |
Messrs S.G. POLYPROPYLENE (PRIVATE) LTD.
|
| Respondents |
ALLIED BANK LIMITED
|
| Citations |
2022 SLD 2436,
2022 CLD 1494
|
| Other Citations |
Not available
|
| Laws Involved |
Financial Institutions (Recovery of Finances) (Amendment) Act, 2016,
Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)
|
| Sections |
9,
10,
9
|