| Case ID |
1a3ea601-79e8-4697-8e7e-8fc7168457b2 |
| Body |
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| Case Number |
F.A.O. No.140 of 2006 |
| Decision Date |
Oct 07, 2008 |
| Hearing Date |
Oct 07, 2008 |
| Decision |
The appeal was directed against the Banking Court's order which accepted an objection petition by Respondent No. 6, claiming to be a bona fide purchaser of the property in dispute. The Lahore High Court noted that the Banking Court had relied solely on the revenue record which did not reflect the mortgage, contradicting established legal principles. The High Court emphasized that a bona fide purchaser must exercise due diligence, including searching the Sub Registrar's office for any registered mortgage. The appeal concluded that the Banking Court's decision was erroneous as it overlooked the existence of a registered mortgage deed in favor of the Bank and failed to consider the original documents of title held by the Bank. As a result, the High Court set aside the Banking Court's order with costs. |
| Summary |
In the case of Habib Bank Ltd. vs. Syed Muhammad Haroon and others, the Lahore High Court addressed significant legal principles regarding the rights of bona fide purchasers in the context of mortgage transactions. The case highlighted the importance of due diligence when acquiring property, particularly the necessity of verifying the title through appropriate channels, such as the Sub Registrar's office. The court underscored that reliance solely on revenue records is insufficient to establish bona fide purchaser status. This case reaffirms the legal doctrine that a mortgage follows the property, unless a bona fide purchaser without notice can be established. It serves as a crucial precedent for financial institutions and property buyers, emphasizing the importance of thorough title searches in property transactions. The ruling also reiterates established case law, including references to previous judgments that support the principles discussed. Keywords: bona fide purchaser, mortgage, property law, title search, Lahore High Court, financial institutions, legal precedent. |
| Court |
Lahore High Court
|
| Entities Involved |
HABIB BANK LTD.
|
| Judges |
SH. AZMAT SAEED,
SYED ASGHAR HAIDER
|
| Lawyers |
Shamas Mehmood Mirza,
Nasir Mehmood,
Tariq Mehmood Randhawa
|
| Petitioners |
HABIB BANK LTD.
|
| Respondents |
Respondent No. 3,
Respondent No. 2,
Respondent No. 4,
Respondent No. 5,
Respondent No. 6,
Syed MUHAMMAD HAROON
|
| Citations |
2009 SLD 1833,
2009 CLD 140
|
| Other Citations |
Maulana Riaz-ul-Hasan v. Muhammad Ayyub Khan and another 1991 SCMR 2513,
Citi Bank N.A. through Branch Manager v. Munir Ahmad Gill and 2 others 2000 YLR 2938,
Mst. Nasiban Bibi v. The Australasia Bank Lahore and others 1970 SCMR 657,
Muhammad Anwar Khan v. Habib Bank Ltd. and 4 others 2005 CLD 165,
Major Muhammad Tariq v. Citi Bank Housing Finance Company Ltd. through Manager 2002 CLD 1090
|
| Laws Involved |
Financial Institutions (Recovery of Finances) Ordinance, 2001,
Transfer of Property Act, 1882
|
| Sections |
9,
15,
41
|