| Case ID |
2e004522-6399-4001-84d5-e32cffbf1b8f |
| Body |
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| Case Number |
Suit No.1338 and Civil Miscellaneous Application N |
| Decision Date |
Dec 09, 1999 |
| Hearing Date |
|
| Decision |
The Sindh High Court dismissed the application for interim injunction filed by the plaintiff, Messrs Huffaz Seamless Pipe Industries Ltd., against the defendant, Allied Bank of Pakistan Limited. The court held that the plaintiff failed to prove a good prima facie case or that the balance of convenience favored granting the interim injunction. The court emphasized that the plaintiff's apprehensions regarding the calculation of mark-up and penalties could not be ruled out but noted that the amount claimed by the defendant had not been finally determined by a competent Banking Court. The court also stated that before adopting coercive measures to recover statutory dues, there should be a well-ascertained amount owed. The ruling highlighted the need for banks to consider the circumstances of non-wilful defaulters before labeling them as such. |
| Summary |
This case revolves around a dispute between Messrs Huffaz Seamless Pipe Industries Ltd. and Allied Bank of Pakistan Limited regarding the recovery of loans and the bank's actions to label the plaintiff as a defaulter. The plaintiff sought an interim injunction to prevent the bank from declaring them as defaulters to the State Bank of Pakistan, arguing that the amounts claimed were incorrect and not yet adjudicated by a competent authority. The court emphasized the importance of protecting genuine businesses from undue harassment by financial institutions while reiterating that the determination of liabilities must precede any punitive actions. This case highlights crucial aspects of banking law, the rights of borrowers, and the obligations of banks in managing default claims. The decision serves as a reminder of the legal protections available to businesses facing financial distress and the need for due process in loan recovery actions. |
| Court |
Sindh High Court
|
| Entities Involved |
Allied Bank of Pakistan Limited,
Messrs Huffaz Seamless Pipe Industries Ltd.
|
| Judges |
RASHEED AHMED RAZVI, J
|
| Lawyers |
Mansoorul Arfin,
A.I. Chundrighar
|
| Petitioners |
Messrs HUFFAZ SEAMLESS PIPE INDUSTRIES LTD., KARACHI
|
| Respondents |
ALLIED BANK OF PAKISTAN LIMITED, KARACHI
|
| Citations |
2001 SLD 2427 = 2001 CLC 713
|
| Other Citations |
Shahzad Muhammad Umar Beg v. Sultan Mahmood Khan and another PLD 1970 SC 139,
Deputy Custodian of Enemy Property v. K.E.S.C. Ltd. 1986 CLC 2808,
Ali Khan Junejo and 7 others v. I.D.B.P. and 2 others C.M.A. No.9657 of 1999 in Suit No.1560,
Agricultural Development Bank of Pakistan v. Sanaullah Khan and others PLD 1986 SC 67,
Abdul Latif v. Government of West Pakistan and others PLD 1962 SC 384,
Raj Kumar and 3 others v. National Bank of Pakistan and another 1994 CLC 206
|
| Laws Involved |
Civil Procedure Code (V of 1908),
Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997),
Specific Relief Act (I of 1877)
|
| Sections |
O. XXXIX, Rr.1 & 2,
S. 9,
Ss. 10, 42 & 55
|