| Case ID |
2e17927e-d107-434e-95bf-46cc74d8d8ec |
| Body |
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| Case Number |
R.F.A. No. 1207 of 2013 |
| Decision Date |
Mar 05, 2015 |
| Hearing Date |
Mar 05, 2015 |
| Decision |
The Lahore High Court upheld the ruling of the Banking Court, affirming the decision that the appellants had defaulted on their obligations under the Diminishing Musharika Agreement with Askari Bank. The court found that the Diminishing Musharika, as defined under the Financial Institutions (Recovery of Finances) Ordinance, constituted a valid form of finance, and thus the Banking Court had jurisdiction to hear the case. Despite the appellants' claims of a lack of jurisdiction and denial of liability, the court emphasized the appellants' admission of availing the finance facility and their subsequent default. The court dismissed the appeal, reiterating that the terms of the Musharika Agreement were binding and enforceable under the law. |
| Summary |
In the case of R.F.A. No. 1207 of 2013, heard by the Lahore High Court, the court addressed the complexities surrounding the Diminishing Musharika Agreement under the Financial Institutions (Recovery of Finances) Ordinance, 2001. The appellants, represented by Mr. Muhammad Umar Riaz and others, challenged the Banking Court's decision, which ruled in favor of Askari Bank Limited, claiming default on financial obligations totaling over Rs. 7.6 million. The core issues revolved around the legal definition of 'finance' as per Section 2(d) of the Ordinance and the jurisdiction of the Banking Court. The court confirmed that the Diminishing Musharika Agreement falls within the ambit of finance and that the Banking Court rightly heard the case. The appellants' arguments regarding the lack of jurisdiction and their denial of the finance facility were found insufficient. The court's decision emphasized the importance of adhering to the contractual obligations under the Musharika Agreement, thereby reinforcing legal precedents in financial recovery cases. This ruling highlights the intersection of Islamic finance principles with contemporary legal frameworks, making it a significant case for both legal practitioners and financial institutions operating under similar agreements. |
| Court |
Lahore High Court
|
| Entities Involved |
Askari Bank Limited
|
| Judges |
AMIN-UD-DIN KHAN,
M. SOHAIL IQBAL BHATTI
|
| Lawyers |
Mr. Muhammad Umar Riaz,
Mr. Barristers Kashif Rajwana,
Mr. Saeed Nasir
|
| Petitioners |
DR. FAIZ RASOOL ETC.
|
| Respondents |
ASKARI BANK LIMITED
|
| Citations |
2015 SLD 1136,
2015 PLJ 500
|
| Other Citations |
Not available
|
| Laws Involved |
Financial Institutions (Recovery of Finances) Ordinance, 2001
|
| Sections |
2(d),
9,
10(4)
|