| Case ID |
441c02b5-8ea4-49f7-8d9f-f3783c336f3c |
| Body |
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| Case Number |
F.A.O. No. 610 of 2013 |
| Decision Date |
Dec 10, 2014 |
| Hearing Date |
Dec 10, 2014 |
| Decision |
The Lahore High Court ruled that the application of the plaintiff Bank under Section 15 of the Financial Institutions (Recovery of Finances) Ordinance, 2001 seeking possession of the mortgaged property was allowed, but the order was challenged by the appellants. The court found that Section 15 was declared ultra vires the Constitution, meaning no order could be made under that section regarding the delivery of mortgaged property to the plaintiff Bank. The court emphasized that after a suit for recovery is filed, the mortgagor cannot transfer or deal with the mortgaged property pending the final decision of the suit. The court ultimately set aside the impugned order dated 2-12-2013 and directed the return of the amount deposited by the appellants with the bank. |
| Summary |
In the case of F.A.O. No. 610 of 2013, the Lahore High Court examined the application for the delivery of possession of mortgaged property under the Financial Institutions (Recovery of Finances) Ordinance, 2001. The appellants, having entered into an agreement to sell mortgaged property, contested the application filed by the plaintiff bank for possession. The court ruled that Section 15 of the Ordinance was unconstitutional, thus invalidating the bank's right to claim possession under it. The decision highlights critical aspects of financial recovery laws, including the limitations on banks' rights to property during litigation. The court's judgment reinforces the importance of adhering to constitutional principles in financial transactions and the protection of mortgagors' rights. The ruling underscores the necessity for clarity in legal provisions concerning property recovery and the rights of all parties involved. This case serves as a precedent for similar disputes involving financial institutions and mortgaged properties, emphasizing the need for compliance with legal standards and the protection of consumer rights in the financial sector. |
| Court |
Lahore High Court
|
| Entities Involved |
NATIONAL BANK OF PAKISTAN
|
| Judges |
AMIN-UD-DIN KHAN,
M. SOHAIL IQBAL BHATTI
|
| Lawyers |
Learned counsel for the appellants,
Learned counsel for respondent No.1/bank,
Learned counsel for respondents Nos.2 to 5
|
| Petitioners |
MUHAMMAD ASLAM,
2 others
|
| Respondents |
4 others,
NATIONAL BANK OF PAKISTAN through General Attorney
|
| Citations |
2015 SLD 2816,
2015 CLD 933
|
| Other Citations |
Muhammad Umer Rathore v. Federation of Pakistan 2009 CLD 257
|
| Laws Involved |
Financial Institutions (Recovery of Finances) Ordinance, 2001
|
| Sections |
15,
16,
9
|