| Case ID |
1b9b2c01-03d2-43a3-bb86-4e8fbd4eb798 |
| Body |
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| Case Number |
Suit No.7 of 2001 |
| Decision Date |
Jun 10, 2004 |
| Hearing Date |
Jan 14, 2004 |
| Decision |
The Sindh High Court dismissed the suit against Defendant No. 4, asserting that the plaintiff failed to establish a nexus between the original loan agreement and the subsequent loan agreement. The court emphasized that the guarantee provided by Defendant No. 4 was based on the original agreement and could not be enforced as the plaintiff did not demonstrate that the claim arose from the original agreement. The court noted that the plaintiff's claims were not supported by the necessary documentation and that the guarantee was a continuing one, but it was not applicable to the subsequent loan without evidence linking the two agreements. Therefore, the decision underscored the importance of proper documentation and the establishment of a direct connection between the agreements in questions of guarantee enforcement. |
| Summary |
This case revolves around the enforcement of a guarantee provided by Defendant No. 4 in favor of the National Bank of Pakistan. The court analyzed whether the guarantee was still valid following the issuance of a new loan agreement. The plaintiff argued that the guarantee was continuing, thus making Defendant No. 4 liable for the amount due. However, the court found that the original guarantee was tied to a specific agreement that had not been adequately referenced in the suit. The ruling highlights the necessity for clear documentation in banking and finance cases to establish liability under guarantees. Keywords such as 'banking law', 'loan recovery', and 'guarantee enforcement' are central to understanding the legal implications of this case, making it relevant to current discussions in financial law. |
| Court |
Sindh High Court
|
| Entities Involved |
NATIONAL BANK OF PAKISTAN,
MESSRS MAHMOOD (PVT.) LIMITED
|
| Judges |
GULZAR AHMED
|
| Lawyers |
Asim Mansoor,
Abdul Rauf
|
| Petitioners |
NATIONAL BANK OF PAKISTAN
|
| Respondents |
Defendant No. 4,
MESSRS MAHMOOD (PVT.) LIMITED
|
| Citations |
2004 SLD 690,
2004 CLD 1472
|
| Other Citations |
Gulzar Ahmad v. Sindh-Punjab Goods Transport Co. PLD 1966 Kar. 253,
Abdul Ghani v. Mst. Zaheda Begum PLD 1982 Lah. 401,
National Commercial Bank Ltd. Karachi v. Muhammad Tufail PLD 1975 Kar. 671,
Muhammad Mushtaq v. Bashir Ahmad Chaudhry PLD 1991 Lah. 400,
Messrs Ruby Trading Company v. Mst. Zainab Khanum 1984 CLC 169,
Samar Gul v. Central Government PLD 1986 SC 35,
Muhammad Ayub v. Additional District Judge, Gujranwala 1985 CLC 1745,
Muhammad Amin v. Member (Colonies), Board of Revenue, Punjab, Lahore 1987 CLC 1216,
Mardan Ali v. Rab Nawaz 1991 CLC 82,
Ghulam Mustafa v. Mst. Rehmat Bibi 1983 CLC 356
|
| Laws Involved |
Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997,
Contract Act, 1872
|
| Sections |
9,
127,
133
|