Legal Case Summary

Case Details
Case ID 26a37176-a826-4a50-a593-778661d2049d
Body View case body.
Case Number F.A.O. No.97 of 2000
Decision Date May 31, 2004
Hearing Date May 31, 2004
Decision The Lahore High Court set aside the ex parte decree granted by the Banking Court No.1, Lahore, and directed the case to be remanded for a fresh hearing. The court emphasized the necessity of recording evidence before granting such a significant decree and highlighted the importance of adhering to judicial principles to prevent perpetuating injustice.
Summary In the landmark case of Punjab Small Industries Corporation and 2 others versus Haji Cold Storage and another, the Lahore High Court meticulously examined the application under F.A.O. No.97 of 2000. Heard on May 31, 2004, the case delved into the intricacies of the Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997, specifically Section 9, and the Punjab Small Industries Corporation Act, 1973. The petitioners challenged the ex parte decree issued by the Banking Court No.1, Lahore, which had granted a substantial amount of Rs.50,00,000 without recorded evidence. The High Court, presided over by Justices CH. Ijaz Ahmad and Mian Hamid Farooq, highlighted the importance of due process and the necessity for courts to base their decisions on documented evidence to uphold justice. The judgment underscored that banking companies must fall within the defined legal framework and that procedural lapses could lead to miscarriages of justice. By setting aside the initial decree and remanding the case for a fresh hearing, the court reinforced the legal standards required for financial adjudications, ensuring that entities like Punjab Small Industries Corporation operate within the ambit of established banking laws. This case serves as a pivotal reference for financial institutions and legal practitioners, emphasizing adherence to procedural integrity and the safeguarding of equitable judicial outcomes in financial disputes.
Court Lahore High Court
Entities Involved Punjab Small Industries Corporation, Haji Cold Storage
Judges CH. IJAZ AHMAD, MIAN HAMID FAROOQ
Lawyers Ijaz Ahmad Awan for Appellants, Mirza Aziz-ur-Rehman for Respondents
Petitioners 2 OTHERS, PUNJAB SMALL INDUSTRIES CORPORATION
Respondents ANOTHER, HAJI COLD STORAGE
Citations 2004 SLD 682 = 2004 CLD 1424
Other Citations Ghulam Sarwar v. S.H.O. 1999 Law Notes 560 rel., Messrs Qureshi Salt and Species Industries Khushab v. M.C.B. 1999 SCMR 2353, Haji Ali Khan & Company, Abbotabad and 8 others v. Messrs Allied Bank of Pakistan Limited, Abbotabad PLD 1995 SC 362, Mst. Zubaida A. Sattar and others v. Karachi Building Control Authority and others 1999 SCMR 243, Muhammad Baran and others v. Member (Settlement and Rehabilitation), Board of Revenue, Punjab and others PLD 1991 SC 691 rel., BISC v. Salma Afroze PLD 1992 SC 263 rel., Obyar and another's case PLJ 1984 Lah. 167, Shireen and others v. Fazal Muhammad and others 1995 SCMR 584, C.B.R. v. Raja Industries 1998 SCMR 307, Abdul Majeed v. Ghulam Haider 2001 SCMR 1254, Safiullah Siddiqui v. KEPCO 1997 SCMR 926, Rafiq Ahmad Khawaja v. Abdul Haleem 1982 SCMR 1229, Zulifqar Ali v. Lall Din 1974 SCMR 162, Sher Muhammad v. Said Muhammad Shah 1981 SCMR 212, Naseem-ud-Din Siddiqui v. U.B.L. 1998 CLC 1718
Laws Involved Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997, Punjab Small Industries Corporation Act, 1973, Civil Procedure Code (V of 1908)
Sections 9, 3, 18, O. VII, R.10