| Case ID |
210f33f6-30c3-4e8d-8837-0052a7540b03 |
| Body |
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| Case Number |
R.F.A. No.200 of 2009 |
| Decision Date |
Sep 25, 2013 |
| Hearing Date |
Sep 25, 2013 |
| Decision |
The Lahore High Court modified the decree amount by disallowing the markup charged beyond the date of expiry of the finance facility. The High Court concluded that the financial institution could not charge markup after the expiry of the finance facility. The appeal was partly allowed, modifying the original decree in favor of the respondent bank for an amount of Rs.57,27,834 with costs from the date of default/expiry until the full realization of the decretal amount. This decision underscores the legal principle that financial institutions cannot impose charges beyond the agreed-upon terms of a financing agreement. |
| Summary |
In the case of R.F.A. No.200 of 2009, the Lahore High Court addressed a dispute between Messrs PACE PESTICIDES (PVT.) LIMITED and SAUDI PAK COMMERCIAL BANK LIMITED regarding the recovery of finances under the Financial Institutions (Recovery of Finances) Ordinance, 2001. The case revolved around the legality of markup charges imposed by the bank beyond the expiry date of the finance facility. The court found that the bank's actions were not legally sustainable as they charged markup after the facility's expiration date of June 30, 2005. This judgment emphasizes the importance of adhering to the terms set forth in financing agreements, providing clarity on the rights of borrowers and the limitations on financial institutions. The decision serves as a precedent for future cases involving financial recoveries and the enforcement of contractual obligations, making it a significant point of reference in financial law. Keywords such as 'financial recovery', 'markup legality', and 'banking disputes' are crucial for SEO optimization in legal contexts. |
| Court |
Lahore High Court
|
| Entities Involved |
Messrs PACE PESTICIDES (PVT.) LIMITED,
SAUDI PAK COMMERCIAL BANK LIMITED
|
| Judges |
Amin-ud-Din Khan,
Abid Aziz Sheikh
|
| Lawyers |
Sardar Riaz Karim,
Mughees Aslam Malik,
Muhammad Suleman Bhatti
|
| Petitioners |
Messrs PACE PESTICIDES (PVT.) LIMITED
|
| Respondents |
SAUDI PAK COMMERCIAL BANK LIMITED
|
| Citations |
2014 SLD 2182,
2014 CLD 1436
|
| Other Citations |
Muhammad Tariq v. Bank of Punjab and another 2004 CLD 162
|
| Laws Involved |
Financial Institutions (Recovery of Finances) Ordinance, 2001
|
| Sections |
9,
10,
11
|