| Case ID |
434dedac-e935-4fda-ae7f-6d1cfd104786 |
| Body |
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| Case Number |
Regular First Appeal No. 270 of 2005 |
| Decision Date |
Mar 29, 2006 |
| Hearing Date |
|
| Decision |
The Lahore High Court dismissed the appeal of the Industrial Development Bank of Pakistan against the decree for recovery of funds. The court found no legal justification for the bank’s claim for costs from the date of default, which it alleged was 9-9-1992. The bank had been inactive for ten years before filing the suit on 20-1-2003, and the respondent could not be penalized for the bank's inaction. The trial court had already granted costs from the date of the suit's institution, and the bank admitted that the decree had been satisfied. The High Court directed the bank to release the security documents of the respondent company within ten days from the order date. |
| Summary |
In the case of Industrial Development Bank of Pakistan vs. Pakistan Belting (PVT.) Limited, the Lahore High Court addressed the issues surrounding the recovery of finances under the Financial Institutions (Recovery of Finances) Ordinance, 2001. The case revolved around a finance agreement dated 16-9-1991, with the bank claiming a default on 9-9-1992. After a significant delay of ten years, the bank sought recovery, which raised questions about the validity of its claims. The court emphasized the importance of timely action in legal proceedings, ruling in favor of the respondent and highlighting the bank's failure to act within a reasonable timeframe. This case underscores the necessity for financial institutions to pursue claims promptly and the implications of inaction in legal contexts. The decision serves as a precedent in financial recovery cases, emphasizing adherence to legal timelines and the rights of debtors. |
| Court |
Lahore High Court
|
| Entities Involved |
INDUSTRIAL DEVELOPMENT BANK OF PAKISTAN,
PAKISTAN BELTING (PVT.) LIMITED
|
| Judges |
MUHAMMAD SAYEED AKHTAR,
MUHAMMAD ARSHAD, JEHANGIR
|
| Lawyers |
Rashdeen Nawaz Kasuri for Appellant,
Aftab Arshad Sheikh, Director, Pakistan Belting (Pvt.) Ltd. Lahore High Court for Respondents
|
| Petitioners |
INDUSTRIAL DEVELOPMENT BANK OF PAKISTAN
|
| Respondents |
PAKISTAN BELTING (PVT.) LIMITED through Chief Executive and 5 others
|
| Citations |
2006 SLD 2885 = 2006 CLD 808
|
| Other Citations |
Not available
|
| Laws Involved |
Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)
|
| Sections |
9,
3,
22
|