| Case ID |
1eeb01e7-ac27-4770-8347-cab25a4ccf46 |
| Body |
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| Case Number |
Regular First Appeal No.321 of 1996 |
| Decision Date |
Mar 06, 2003 |
| Hearing Date |
Mar 06, 2003 |
| Decision |
The appeal was dismissed as the Banking Tribunal's decision was upheld. The Tribunal found that the appellant-Bank had not provided sufficient grounds to award liquidated damages. The court noted that the judgment of the Banking Tribunal did not suffer from any misreading of the record or was contrary to law. The suit was originally for recovery of a loan amounting to Rs. 1,56,790, where the respondent contended that the liability was cleared. The Banking Court acknowledged a payment of Rs. 1,05,000 against the initial loan of Rs. 99,475, leading to the dismissal of the appeal with no order as to costs. |
| Summary |
In the case of Regular First Appeal No.321 of 1996, the Lahore High Court examined a dispute between the Agricultural Development Bank of Pakistan and Ghulam Murtaza regarding the recovery of a loan amounting to Rs. 1,56,790. The Banking Court initially decreed the suit but did not award liquidated damages to the Bank, which led to the appeal. The Tribunal's discretion in declining the damages was upheld, as it was based on sound principles and did not misinterpret the facts or the law. The case references established precedents in financial recovery, emphasizing the importance of adhering to legal standards in financial transactions. The ruling reinforces the necessity for banks to substantiate claims for liquidated damages to succeed in appeals. The decision is significant for financial institutions and legal practitioners involved in recovery matters, highlighting the balance between creditor rights and borrower defenses in loan recovery disputes. |
| Court |
Lahore High Court
|
| Entities Involved |
AGRICULTURAL DEVELOPMENT BANK OF PAKISTAN,
Banking Court,
Banking Tribunal
|
| Judges |
SYED ZAHID HUSSAIN,
ABDUL SHAKOOR PARACHA
|
| Lawyers |
Mian Nasir Mehmood,
Rab Nawaz Niazi
|
| Petitioners |
AGRICULTURAL DEVELOPMENT BANK OF PAKISTAN through Manager
|
| Respondents |
another,
GHULAM MURTAZA
|
| Citations |
2005 SLD 1727,
2005 CLD 1543
|
| Other Citations |
Habib Bank Ltd. v. Messrs Farooq Compost Fertilizer Corporation Ltd. and 4 others 1993 MLD 1571,
Allied Bank of Pakistan Limited, Faisalabad v. Messrs Asisha Garments through Proprietor and 2 others 2001 MLD 1955,
Saudi-Pak Industrial and Agricultural Investment Company (Pvt.) Limited, Islamabad v. Mohib Textile Mills Limited Lahore and 3 others 2002 CLD 1170,
National Development Finance Corporation v. Messrs Millrock Quarring (Pvt.) Ltd. and 7 others 2002 CLD 1382
|
| Laws Involved |
Financial Institutions (Recovery of Finances) Ordinance
|
| Sections |
9,
22
|