| Case ID |
22b931b9-2754-4d19-80b4-8e2e7a5420d5 |
| Body |
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| Case Number |
Suit No. 151 of 1998 |
| Decision Date |
Feb 25, 2003 |
| Hearing Date |
|
| Decision |
The Sindh High Court ruled that the case brought by ARY Traders (Pvt.) Ltd. against Muslim Commercial Bank Ltd. was not maintainable under the jurisdiction of the Banking Court as it did not pertain to a loan or finance issue as defined by the relevant statutes. The court held that the plaintiff's claim related to the operation of a foreign currency account and the bank's failure to follow instructions regarding fund transfers, which did not constitute a dispute over a loan or finance. Consequently, the suit was directed to be treated as an ordinary civil suit, allowing the plaintiff to pursue their claims in the appropriate civil jurisdiction. |
| Summary |
This case revolves around a dispute between ARY Traders (Pvt.) Ltd. and Muslim Commercial Bank Ltd. regarding the operation of a foreign currency account. The plaintiff alleged that the bank failed to comply with instructions regarding the transfer of funds, leading to significant financial implications. The court examined the definitions of 'borrower', 'customer', and 'finance' as per the Banking Companies Act and the Financial Institutions Ordinance, ultimately determining that the matter did not fall within the banking jurisdiction. The ruling emphasized the importance of jurisdiction in banking cases, noting that the nature of the dispute was not related to a loan or financial obligation. This decision underscores the need for clarity in financial agreements and the proper classification of banking disputes for jurisdictional purposes. |
| Court |
Sindh High Court
|
| Entities Involved |
ARY TRADERS (PVT.) LTD.,
MULSIM COMMERCIAL BANK LTD.
|
| Judges |
ANWAR ZAHEER, JAMALI, J
|
| Lawyers |
Rasheed A Razvi,
Mansoorul Arfin
|
| Petitioners |
ARY TRADERS (PVT.) LTD.
|
| Respondents |
MULSIM COMMERCIAL BANK LTD.
|
| Citations |
2003 SLD 3070,
2003 CLD 1601
|
| Other Citations |
1992 MLD 225,
1994 SCMR 826,
1993 MLD 2419,
2000 CLC 1620,
2002 SCMR 338,
AIR 1993 All. 762,
1990 MLD 1764,
1973 SCMR 62,
PLD 1995 SC 362,
1999 SCMR 2353,
2001 CLC 1363,
2000 MLD 1850,
1998 CLC 1781,
2000 YLR 2407,
1999 CLC 1294,
2001 YLR 905,
PLD 2000 Lah. 168,
PLD 1970 SC 1,
1992 SCMR 1748,
2001 SCMR 103,
1998 CLC 1718,
1999 CLC 1953,
2002 CLC 658,
2002 CLC 1455
|
| Laws Involved |
Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act,
Civil Procedure Code,
Financial Institutions (Recovery of Finances) Ordinance
|
| Sections |
9,
10,
27,
O. VIII, R.11,
O. VII, R.11,
9,
27
|