| Case ID |
382b47d8-63ff-4b0e-aa8e-37fb1e3d6fc3 |
| Body |
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| Case Number |
Suit No.B-25 and C.M.A. No.4138 of 2006 |
| Decision Date |
Aug 31, 2006 |
| Hearing Date |
|
| Decision |
The Sindh High Court dismissed the application for an injunction against K.A.S.B. Bank Ltd. seeking to prevent the sale of mortgaged properties. The court found that the plaintiffs failed to establish that the notices served by the bank were illegal or void. The court emphasized the provisions of the Financial Institutions (Recovery of Finances) Ordinance, 2001, particularly section 15, which mandates that courts cannot grant injunctions to restrain the sale of mortgaged properties unless specific conditions are met. The court noted that the plaintiffs had acknowledged their outstanding dues and the bank's right to recover the amounts. The court suggested that the interests of justice would be served if the bank were to sell one of the mortgaged properties first and only proceed to the second if necessary. |
| Summary |
This case revolves around a dispute between the plaintiffs, who are mortgagors, and K.A.S.B. Bank Ltd., the financial institution. The plaintiffs filed for an injunction to prevent the bank from selling their mortgaged properties, claiming that the bank charged them excessive mark-up rates contrary to their agreement. The court analyzed the relevant laws, particularly the Financial Institutions (Recovery of Finances) Ordinance, which sets strict guidelines for such disputes. The court concluded that the plaintiffs did not meet the criteria required for an injunction, as they failed to demonstrate that the mortgage was invalid or that all dues had been paid. The court highlighted the importance of adhering to statutory provisions in financial matters, ensuring that banks can recover debts while balancing the rights of borrowers. The ruling emphasizes the mandatory nature of legal provisions governing financial institutions, reinforcing the need for borrowers to fulfill their obligations. |
| Court |
Sindh High Court
|
| Entities Involved |
K.A.S.B. BANK LTD.
|
| Judges |
KHILJI ARIF HUSSAIN, J
|
| Lawyers |
Abdul Latif A. Shakoor,
Nadeem Ahmed
|
| Petitioners |
MUHAMMAD KHALID,
Plaintiff 2,
Plaintiff 3
|
| Respondents |
K.A.S.B. BANK LTD.
|
| Citations |
2007 SLD 2790,
2007 CLD 232
|
| Other Citations |
Muhammad Azwar Siddiqui v. Chief Executive Union Leasing Ltd. 2006 CLD 946,
Sh. Abdul Sattar Lasi v. Federation of Pakistan and another 2004 CLD 252,
Sheikh Abdul Sattar v. Federation of Pakistan 2006 CLD 18,
Muhammad Hussain v. SME Bank Ltd. and another 2005 CLD 323
|
| Laws Involved |
Financial Institutions (Recovery of Finances) Ordinance, 2001,
Civil Procedure Code, 1908,
Arbitration Act, 1940
|
| Sections |
9,
15,
XXXIX, Rr.1 & 2,
151,
10,
34
|