| Case ID |
37ad4e03-3c5c-4f4d-ad20-e55737c3911d |
| Body |
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| Case Number |
Civil Appeal No.1214 of 2001 |
| Decision Date |
Mar 12, 2008 |
| Hearing Date |
Mar 12, 2008 |
| Decision |
The appeal was dismissed as the arguments presented by the appellant-Bank regarding the application of section 171 of the Contract Act, 1872 were found to be unconvincing. The court upheld the application of section 59, affirming that the bank was bound to follow the explicit instructions given by the respondents regarding the appropriation of the payment. The judgment emphasized the importance of adhering to clear customer instructions in financial transactions, reinforcing the legal obligation of banks to act in accordance with the depositor's directives. The case highlighted the legal principles governing the handling of customer deposits and the implications of deviating from those instructions. |
| Summary |
The case revolves around a dispute between the Agriculture Development Bank of Pakistan and Mubarak Dairies Limited concerning the appropriation of a payment. The bank received a payment of Rs. 29,20,000 with specific instructions from the respondents to adjust it against a particular loan account. However, the bank, exercising its discretion, adjusted the amount against other debts owed by the respondents, leading to a legal challenge. The Supreme Court of Pakistan ruled that the bank's actions violated the explicit instructions given by the respondents, thereby reinforcing the principles outlined in the Contract Act, 1872, particularly sections 59 and 171. This case underscores the necessity for banks to comply with customer directives and the legal repercussions of failing to do so in financial transactions. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
AGRICULTURE DEVELOPMENT BANK OF PAKISTAN,
MUBARAK DAIRIES LIMITED
|
| Judges |
MUHAMMAD QAIM,
JAN KHAN,
MUHAMMAD MUSA K. LEGHARI,
SYED SAKHI HUSSAIN BOKHARI,
SHEIKH HAKIM ALI
|
| Lawyers |
Iftikhar Malik,
Rai Muhammad Nawaz Kharal
|
| Petitioners |
AGRICULTURE DEVELOPMENT BANK OF PAKISTAN
|
| Respondents |
others,
MUBARAK DAIRIES LIMITED
|
| Citations |
2008 SLD 1964,
2008 PLD 442
|
| Other Citations |
Munshi Emamuddin Ahmed through Muhammad Abdur Rehman and others v. Province of East Bengal and others PLD 1952 Dacca 279
|
| Laws Involved |
Contract Act (IX of 1872)
|
| Sections |
171,
59
|