| Case ID |
3241732e-268e-4d81-9c83-819fa9baa5e7 |
| Body |
View case body. Login to View |
| Case Number |
Suit No.B-52 of 2006 |
| Decision Date |
Jan 15, 2014 |
| Hearing Date |
Nov 26, 2013 |
| Decision |
The Sindh High Court ultimately ruled that the plaint was rejected due to the absence of a cause of action. The plaintiff, National Bank of Pakistan, had instituted the suit for recovery of a significant amount claimed to be owed by the defendants, ARK Garments Industry (PVT.) LTD. The court found that the finance agreements under which the suit was filed had been superseded by a Voluntary Return Agreement executed on 29-11-2006. Since this agreement effectively novated the previous contracts, the plaintiff had no viable cause of action at the time the suit was instituted. The court emphasized the importance of critically examining the allegations in the plaint to ascertain whether they constituted a cause of action. In this case, the court determined that the plaint did not disclose any actionable claims against the defendants, leading to its rejection. |
| Summary |
This case revolves around the principles of financial recovery and the legal implications of contract novation. The central issue was whether the National Bank of Pakistan had a valid cause of action against ARK Garments Industry (PVT.) LTD. for the recovery of finances under the Financial Institutions (Recovery of Finances) Ordinance. The court examined the relationship between the original finance agreements and a subsequent Voluntary Return Agreement that altered the terms of the financial obligations. The ruling highlighted that a cause of action must exist not only during the transaction but also at the time of filing the suit. The court found that since the finance agreements were effectively replaced by the new agreement, the plaintiff could not maintain the suit. This decision reinforces the necessity for parties to honor their contractual obligations and emphasizes the importance of legal clarity in financial dealings. Keywords such as 'financial recovery', 'contract novation', and 'cause of action' are pivotal in understanding the legal landscape surrounding this case. |
| Court |
Sindh High Court
|
| Entities Involved |
Not available
|
| Judges |
NADEEM AKHTAR, J
|
| Lawyers |
Not available
|
| Petitioners |
NATIONAL BANK OF PAKISTAN
|
| Respondents |
Messrs ARK GARMENTS INDUSTRY (PVT.) LTD. through Managing Director and 2 others
|
| Citations |
2015 SLD 232,
2015 CLD 179
|
| Other Citations |
Muhammad Saleem Ullah and others v. Additional District Judge, Gujranwala and others PLD 2005 SC 511,
Bank of Khyber v. Messrs Spencer Distribution Ltd. and 14 others 2003 CLD 1406,
Pakistan Agricultural Storage and Services Corporation Ltd. v. Mian Abdul Latif and others PLD 2008 SC 371,
Banque Indosuez v. Banking Tribunal for Sindh and Balochistan and others 1994 CLC 2272,
Raja Ali Shan v. Messrs Essem Hotel Limited and others 2007 SCMR 741,
Abdul Rehman v. Sher Zaman and another 2004 CLC 1340,
United Bank Limited v. Progas Pakistan Limited 2010 CLD 828,
Allied Bank Limited v. Muslim Cotton Mills Private Limited and 3 others 2011 CLD 393,
UBL v. Messrs Aziz Tanneries (Pvt.) Ltd. 2004 CLD 1715,
Imran Ali Soomro v. Saudi Pak Leasing Company Limited 2011 CLD 269,
H.B.L. v. Crescent Softwear Products (Pvt.) Ltd. 2009 CLD 412,
Habib Bank Limited v. Messrs Sabcos (Pvt.) Ltd. 2006 CLD 244,
Faysal Bank Limited v. Genertech Pakistan Ltd. 2009 CLD 856,
Habib Bank Ltd. v. Paragon Industries (Pvt.) Ltd. 2009 CLD 1346,
NIB Bank Limited v. Taha Spinning Mills Limited 2010 CLD 635,
Silkbank Limited v. Messrs Dewan Sugar Mills Limited 2011 CLD 436,
KASB Bank Limited v. Mirza Ghulam Mujtaba and 2 others 2011 CLD 461,
Abdul Rehman v. Wahid Bakhsh and 9 others PLD 1977 Lah. 1243,
Gulistan Textile Mills Ltd. v. Askari Bank Ltd. and others 2013 CLD 2005,
Haji Ali Khan and Company, Abbottabad and 8 others v. Messrs Allied Bank of Pakistan Limited, Abbottabad PLD 1995 SC 362,
Messrs Qureshi Salt and Spices Industries, Khushab and another v. Muslim Commercial Bank Limited, Karachi through President and 3 others 1999 SCMR 2353,
Abdul Nasir and another v. Haji Saeed Akbar 2010 SCMR 1770,
Diamond Rubber Mills v. Pakistan Television Corporation Ltd. and 2 others 1989 CLC 1989,
Hyderabad Electronic Industries Ltd. v. Messrs Sony Corporation through Messrs Sony Gulf Company 1999 MLD 850,
Jewan and 7 others v. Federation of Pakistan 1994 SCMR 826,
S.M. Shafi Ahmed Zaidi through Legal Heirs v. Malik Hassan Ali Khan (Moin) through Legal Heirs 2002 SCMR 338
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| Laws Involved |
Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001),
Civil Procedure Code (V of 1908)
|
| Sections |
9,
10,
10(1),
O.VII,R.11
|