| Case ID |
1ba24960-6a03-4e0e-a9f9-1ea544a1e2c0 |
| Body |
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| Case Number |
Ex.A. No. 10-B of 2015 |
| Decision Date |
Sep 03, 2015 |
| Hearing Date |
Jul 01, 2015 |
| Decision |
The Lahore High Court dismissed the application filed by the judgment debtor challenging the proclamation of sale. The court found that the objections regarding the forced sale value of the mortgaged property were without merit. It was established that the auctions conducted by courts are often termed distressed sales, and the price fetched in such sales is usually below market value. The court emphasized that the reserve price must reflect the minimum price the property may fetch at auction, and it reiterated that the role of the court is not to fix its own estimate of the property value but to rely on evaluations by approved evaluators. The court also noted that the objections raised by the judgment debtor were primarily aimed at delaying the auction process and that it was the responsibility of the debtor to bring forward a buyer if they believed the auction price was low. |
| Summary |
In the case Ex.A. No. 10-B of 2015, the Lahore High Court addressed the objections raised by the judgment debtor, Manzoor Textile Mills, against the forced sale value determined for its mortgaged property by NIB Bank Limited. The court found that the objections lacked a valid basis, as the court auctions are considered distressed sales where the property is often sold below market value. The ruling stated that the reserve price set for the auction must reflect a fair estimate of the property's value, and emphasized the importance of evaluations by approved evaluators. The judgment highlighted the courts' role in maintaining a balance between the interests of the debtor and the decree holder. It was concluded that the objections were intended to delay the auction process rather than address legitimate concerns, and the application was dismissed accordingly. This case reinforces the legal principles surrounding court auctions, reserve prices, and the evaluation of mortgaged properties, making it a significant reference for future cases involving similar issues. |
| Court |
Lahore High Court
|
| Entities Involved |
NIB BANK LIMITED,
MANZOOR TEXTILE MILLS
|
| Judges |
SHAMS MEHMOOD MIRZA
|
| Lawyers |
Mr. M. Ali Malik,
Mr. Talib Hussain,
Mr. Hafiz Chaudhry,
Muhammad Tahir,
Mian Subha Sadiq Watto
|
| Petitioners |
NIB BANK LIMITED
|
| Respondents |
MANZOOR TEXTILE MILLS
|
| Citations |
2016 SLD 2028,
2016 PLJ 156
|
| Other Citations |
Not available
|
| Laws Involved |
Civil Procedure Code (V of 1908)
|
| Sections |
66(2)(c),
83
|