| Case ID |
322460b9-d0b4-42ae-8374-f5680992b3ba |
| Body |
View case body. Login to View |
| Case Number |
High Court Appeals Nos.284 and 295 of 2002 |
| Decision Date |
Nov 29, 2002 |
| Hearing Date |
|
| Decision |
The appeals were directed against the order of a learned Single Judge of this Court exercising Banking Court jurisdiction. The learned Single Judge accepted the bid of Rs.460 million for the purchase of assets of the sugar mill from the auction-purchaser and rejected a higher offer from the appellant in H.C.A. No.295 of 2002. The court found that the auction sale was valid despite the absence of a reserve price in the proclamation of sale. The court emphasized that the objective of the auction sale is to facilitate the payment of amounts due to decree-holders and that the decision of the learned Single Judge was unexceptionable. Consequently, both appeals were dismissed. |
| Summary |
In the case of Kiran Sugar Mills (Pvt.) Limited vs. Banker Equity Limited, the Sindh High Court addressed two appeals regarding the auction of assets of a sugar mill. The appeals were focused on the legality of the auction sale conducted by a Banking Court, where a bid of Rs.460 million was accepted over a higher offer that included staggered payments. The court clarified that the omission of a reserve price in the auction proclamation did not invalidate the sale. This ruling emphasizes the importance of ensuring that auction sales effectively serve to satisfy the debts of decree-holders, highlighting the court's commitment to the principles of fairness and financial accountability within the context of financial recoveries. The decision serves as a precedent in understanding the legal implications of auction sales and the responsibilities of involved parties under the Civil Procedure Code and the Financial Institutions Ordinance. |
| Court |
Sindh High Court
|
| Entities Involved |
Kiran Sugar Mills (Pvt.) Limited,
Banker Equity Limited,
Messrs Euro-Plus (Mons-Belgium)
|
| Judges |
SABIHUDDIN AHMED,
AMIR HANI MUSLIM
|
| Lawyers |
Khalid Javed Khan,
Arshad Tayabally,
Ali Bin Adam Jafri,
Rizwan Ahmed Siddiqui,
Jaffer Sial
|
| Petitioners |
KIRAN SUGAR MILLS (PVT.) LIMITED
|
| Respondents |
others,
BANKER EQUITY LIMITED
|
| Citations |
2003 SLD 2950,
2003 CLD 1159
|
| Other Citations |
Brig. (Retd.) Mazhar-ul-Haq and another v. Messrs Muslim Commercial Bank Limited PLD 1993 Lah. 706,
Shahida Saleem v. Habib Credit and Exchange Bank Limited 2001 CLC 126,
Ghulam Abbas v. Zuhra Bibi and another PLD 1972 SC 337
|
| Laws Involved |
Civil Procedure Code (V of 1908),
Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)
|
| Sections |
O.XXI, R.66,
O.XXI, R.89,
O.XXI, R.90,
O.XXI, R.92,
S.22
|