| Case ID |
420f0041-8154-46e2-826d-13a1533fbead |
| Body |
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| Case Number |
E.F.A. No. 4 of 2015 |
| Decision Date |
May 04, 2015 |
| Hearing Date |
May 04, 2015 |
| Decision |
The Lahore High Court dismissed the appeal filed by Messrs Montgomery Flour and General Mills against the execution order of the Banking Court. The court held that the appellant had failed to adhere to the terms of the consent decree, as they did not make the required payments in the stipulated installments. The court determined that the respondent bank had the legal right to recover the full amount due based on the settlement agreement. The appellant's arguments regarding novation of the consent decree due to extensions granted by the bank were rejected, emphasizing that the consent decree remained executable as there was no mutual agreement altering its terms. The court empowered the executing court to determine the date of default for calculating costs associated with the recovery of funds. |
| Summary |
This case revolves around the execution of a consent decree under the Financial Institutions (Recovery of Finances) Ordinance, 2001. The Lahore High Court analyzed the failure of the appellant, Messrs Montgomery Flour and General Mills, to comply with a settlement agreement with MCB Bank Limited. The bank had initially agreed to allow the appellant to pay a reduced settlement amount in twelve installments. However, after failing to meet these obligations, the bank sought execution of the full amount. The court reiterated the principles of contract law, particularly regarding novation and the enforceability of consent decrees. This case highlights critical issues in financial recovery processes, the implications of consent decrees, and the responsibilities of debtors under settlement agreements. Keywords such as 'Financial Institutions Ordinance', 'consent decree', 'banking court', 'debt recovery', and 'contract law' are essential for understanding the legal context and implications of this case. |
| Court |
Lahore High Court
|
| Entities Involved |
Not available
|
| Judges |
ABID AZIZ SHEIKH,
CH. MUHAMMAD IQBAL
|
| Lawyers |
Asim Hafeez,
Sardar Riaz Karim
|
| Petitioners |
Messrs MONTGOMERY FLOUR AND GENERAL MILLS, SAHIWAL
|
| Respondents |
MCB BANK LIMITED (Formerly MUSLIM COMMERCIAL BANK LIMITED), SAHIWAL
|
| Citations |
2015 SLD 2897,
2015 CLD 1590
|
| Other Citations |
Barkat Ullah v. Wali Muhammad 1994 SCMR 1737,
Musarrat Shaukat v. Sufia Khatoon 1994 SCMR 2189,
SAMBA Bank Ltd. v. Syed Bhais 2013 CLD 2080,
Messrs M. Amin M. Bashir Limited Karachi v. Messrs Star Oil and Ice Mills PLD 1973 Kar. 409,
Habib Bank Ltd. v. Pak Poly Products Pvt. Ltd. 2013 CLD 1661,
Peer Dil and others v. Dad Muhammad 2009 SCMR 1268,
Fakir Abdullah and others v. Government of Sindh through Secretary to Government of Sindh Revenue Department, Sindh Secretariat, Karachi and others PLD 2001 SC 131,
Asghar Ali v. Additional Sessions Judge, Kasur and others 2015 MLD 353,
Industrial Development Bank of Pakistan through Vice-President I.D.B.P. v. Messrs Crystal Chemicals Limited through Director/Guarantor Crystal Chemical Ltd. and 9 others PLD 2009 Lah. 176,
Water and Power Development Authority through Chairman, WAPDA, Lahore v. Mian Abdul Rauf PLD 2002 Lah. 268
|
| Laws Involved |
Financial Institutions (Recovery of Finances) Ordinance, 2001,
Civil Procedure Code, 1908,
Contract Act, 1872
|
| Sections |
19,
9,
47,
O. XXXIX, Rr. 1, 2,
62
|