| Case ID |
223da481-6dd4-408a-b446-6accd394a324 |
| Body |
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| Case Number |
C.O.S. No. 129 of 2010 |
| Decision Date |
Nov 21, 2014 |
| Hearing Date |
Nov 21, 2014 |
| Decision |
The Lahore High Court dismissed the application for leave to defend the suit filed by the defendants, concluding that the objections raised were not valid given the admissions by the defendants regarding the finance facilities availed. The court decreed the suit in favor of the plaintiff bank, Silk Bank Limited, for the recovery of Rs. 41,440,716, including mark-up. The court also determined that the plaintiff was entitled to recovery costs as specified under the Financial Institutions (Recovery of Finances) Ordinance, 2001. The ruling underscored the importance of documentation and adherence to legal obligations in financial transactions, stating that the objections regarding the change of name of the bank and the validity of mortgages were without merit. The court emphasized that the rights and obligations of the bank remain intact despite the name change, and the mortgage was valid as per the provisions of the Transfer of Property Act. |
| Summary |
In the case of C.O.S. No. 129 of 2010, the Lahore High Court addressed a suit filed by Silk Bank Limited against T&N Fixed Star (PVT.) LTD. and others under the Financial Institutions (Recovery of Finances) Ordinance, 2001. The plaintiff sought recovery of Rs. 78,719,271, stemming from multiple finance facilities extended to the defendant company in 2004 and renewed in 2005. The court found that the defendants had raised objections regarding the outstanding amounts and the validity of the mortgage but ruled that these objections were unfounded as the defendants had previously admitted to availing the financial facilities. The court highlighted the role of amicus curiae in determining the outstanding amounts and confirmed that the plaintiff's calculations were accurate and justified. Ultimately, the court decreed in favor of the plaintiff, reinforcing the necessity for financial institutions to adhere to legal protocols and the implications of non-compliance. This case serves as a critical reference point for future cases involving financial recoveries and the legal standings of financial institutions. |
| Court |
Lahore High Court
|
| Entities Involved |
Silk Bank Limited,
T&N Fixed Star (PVT.) LTD.
|
| Judges |
SHEZADA MAZHAR, J
|
| Lawyers |
Abdul Hameed Chohan,
Haq Nawaz Chatha
|
| Petitioners |
Messrs SILK BANK LIMITED
|
| Respondents |
Messrs T&N FIXED STAR (PVT.) LTD.,
Defendants Nos. 2 to 8
|
| Citations |
2016 SLD 812,
2016 CLD 888
|
| Other Citations |
Not available
|
| Laws Involved |
Financial Institutions (Recovery of Finances) Ordinance, 2001
|
| Sections |
9,
10
|