| Case ID |
37117fa4-1c07-453d-85fe-052d23c54de8 |
| Body |
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| Case Number |
Civil Original Suit No. 123 of 1999 |
| Decision Date |
Jan 22, 2002 |
| Hearing Date |
|
| Decision |
The Lahore High Court ruled in favor of the plaintiff, Allied Bank of Pakistan Ltd., decreeing the suit with costs and confirming the correctness of the documents presented by the bank. The court noted that the defendants failed to raise substantial questions of law and fact, and thus the allegations made in the plaint were deemed to be admitted. The court also emphasized that the execution of documents was not denied, leading to the presumption of correctness attached to the bank's statements of account, certified under the Bankers' Books Evidence Act. Consequently, a decree for recovery of Rs.60,321,629 was passed against the defendants jointly and severally, along with costs of funds to be determined under section 3(2) of the Financial Institutions (Recovery of Finances) Ordinance, 2001. |
| Summary |
In the case of Civil Original Suit No. 123 of 1999, the Lahore High Court addressed a dispute involving the recovery of a loan amounting to Rs. 60,321,629 claimed by Allied Bank of Pakistan Ltd. against Mohib Fabric Industries Ltd. The court found that the defendants had failed to adequately respond to the plaintiff's claims, as their application for leave to defend was not properly signed or verified, and did not comply with the legal requirements set forth under the Financial Institutions (Recovery of Finances) Ordinance, 2001. The court emphasized the importance of compliance with statutory provisions, particularly when penal consequences were involved, establishing that non-compliance would lead to rejection of the application for leave to defend. The decision reinforced the principle that if the execution of documents is not contested, it is presumed to be correct, leading to the conclusion that the plaintiff was entitled to recover the claimed amount. This case highlights the critical nature of procedural compliance in financial litigation, particularly in matters of loan recovery, and serves as a precedent for future cases involving financial institutions and their rights to enforce loan agreements. |
| Court |
Lahore High Court
|
| Entities Involved |
ALLIED BANK OF PAKISTAN LTD.,
MOHIB FABRIC INDUSTRIES LTD.
|
| Judges |
MIAN HAMID FAROOQ
|
| Lawyers |
Muhammad Naeem Saghal,
Syed Haider Ali Shah
|
| Petitioners |
ALLIED BANK OF PAKISTAN LTD.
|
| Respondents |
MOHIB FABRIC INDUSTRIES LTD.
|
| Citations |
2004 SLD 588,
2004 CLD 716
|
| Other Citations |
2001 MLD 1955
|
| Laws Involved |
Financial Institutions (Recovery of Finances) Ordinance, 2001,
Bankers' Books Evidence Act, 1891
|
| Sections |
10,
3(2),
9,
4
|