Legal Case Summary

Case Details
Case ID 3084661d-e72a-4d42-881a-faf7f6a36ad3
Body View case body.
Case Number Civil Appeals Nos. 91 of 1977 and 25 to 27 of 1983
Decision Date Nov 18, 1985
Hearing Date
Decision The Supreme Court of Pakistan upheld the decision of the Lahore High Court, determining that the amounts deposited in fixed deposit accounts were the property of Ch. Khushi Muhammad and that the appellants were mere Benamidars. The court found no evidence of a valid gift to the appellants from their father, Ch. Khushi Muhammad, and ruled that the bank was entitled to adjust the loans against the deposits. The court highlighted the importance of proving the intention behind the creation of accounts and reiterated the principles of resulting trusts in the context of family law, particularly under Islamic and Indian law. The appeals filed by the respondents were dismissed, solidifying the position that without clear evidence of a gift, the presumption of ownership remained with the original depositor.
Summary This case revolves around the legal principles of ownership and the concept of Benami transactions under Pakistani law. The Supreme Court of Pakistan addressed the appeals of Ch. Habibullah and others against the decision of the Lahore High Court, which ruled that the fixed deposits in question were not owned by the appellants but rather by their father, Ch. Khushi Muhammad. The court meticulously analyzed the evidence surrounding the creation of the fixed deposit accounts and the intentions behind them. It highlighted that the mere opening of accounts in the names of the minors did not constitute a gift without explicit proof of intention. The court reinforced the doctrine of resulting trusts, emphasizing that unless a clear and unequivocal gift is established, the presumption of ownership rests with the person who deposited the funds. The decision is significant in understanding the legal frameworks governing family assets and financial transactions in Pakistan, particularly in cases involving minors and parental control over assets.
Court Supreme Court of Pakistan
Entities Involved Ch. Khushi Muhammad, Sheikhupura Central Cooperative Bank Ltd.
Judges MUHAMMAD HALEEM, C.J., SHAFIUR RAHMAN, J., ZAFFAR HUSSAIN MIRZA, J., MIAN BURHANUDDIN KHAN, J.
Lawyers Zaki-ud-Din Paul, Senior Advocate Supreme Court, Saleem Ahmad Malik, Advocate-on-Record
Petitioners Ch. HABIBULLAH
Respondents SHEIKHUPURA CENTRAL COOPERATIVE BANK LTD.
Citations 1987 SLD 838, 1987 PLD 53
Other Citations Guram Ditta and another v. T. Ram Ditta A I R 1928 P C 172, Mujtabai Begum v. Mahbub Rehman A I P. 1959 Madh. Pra. 359, 364
Laws Involved Constitution of Pakistan (1973), Contract Act (IX of 1872)
Sections Art. 185(2)(3), S. 171