| Case ID |
2c3eae74-9c03-40df-a235-d2c2340c6de1 |
| Body |
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| Case Number |
Regular First Appeal No. 137 of 1998 |
| Decision Date |
Oct 20, 2003 |
| Hearing Date |
Oct 20, 2003 |
| Decision |
The Lahore High Court ruled on the appeal against a decree granted by the Banking Court for a recovery sum of Rs. 8,00,700. The court found that the Banking Court had jurisdiction over the case based on the lease agreement that stipulated exclusive jurisdiction to the courts at Lahore. The court noted that the agreement was executed in Lahore and the parties had consented to the jurisdiction of Lahore courts. However, it was determined that the amount decreed was inconsistent with the court's earlier findings regarding the claim of the respondent-Corporation, which was limited to lease rentals on machinery. An error in the earlier decree was identified where the sum included rental amounts for a car, which was not part of the claim. Consequently, the court modified the decree to Rs. 6,48,950, correcting the error and ensuring consistency with the court's findings. No order was made regarding costs. |
| Summary |
In the case of Zaib Cold Storage and Ice Factory vs. Pakistan Industrial Leasing Corporation, the Lahore High Court addressed an appeal regarding a financial recovery decree issued by the Banking Court. The appeal centered on the jurisdiction of the Lahore court, as the defendants were based in Sialkot, and the documents were executed there. However, the lease agreement explicitly stated that all disputes would fall under the jurisdiction of the Lahore courts, leading the court to affirm its jurisdiction. The appeal revealed inconsistencies in the decree amount, which included unauthorized rentals for a car in addition to the lease rentals for machinery. The court ultimately corrected this discrepancy, reducing the awarded amount to align with the established claims. This case emphasizes the importance of clear jurisdiction clauses in contracts and the necessity for courts to adhere strictly to the evidence presented in financial recovery cases. |
| Court |
Lahore High Court
|
| Entities Involved |
ZAIB COLD STORAGE AND ICE FACTORY,
PAKISTAN INDUSTRIAL LEASING CORPORATION LIMITED
|
| Judges |
SYED ZAHID HUSSAIN,
MUHAMMAD AKHTAR SHABBIR
|
| Lawyers |
Rana Nasar Ullah Khan for Appellants,
Sh. Naveed Masood for Respondent
|
| Petitioners |
ZAIB COLD STORAGE AND ICE FACTORY through Sole Proprietor and another
|
| Respondents |
Messrs PAKISTAN INDUSTRIAL LEASING CORPORATION LIMITED (PILCORP)
|
| Citations |
2006 SLD 2829,
2006 CLD 67
|
| Other Citations |
2001 YLR 846,
2001 CLC 169
|
| Laws Involved |
Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)
|
| Sections |
9,
22
|