| Case ID |
47d62a31-8af4-4eef-8bf1-3bad46a110e0 |
| Body |
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| Case Number |
R. F. A. No. 145 of 1997 |
| Decision Date |
Sep 09, 2003 |
| Hearing Date |
Sep 09, 2003 |
| Decision |
The Lahore High Court dismissed the appeal of the Agricultural Development Bank of Pakistan regarding the recovery of liquidated damages and future markup due to the principles laid out in prior case law. The court upheld the Banking Tribunal's decision that the bank was not entitled to recover liquidated damages or future markup, as the Banking Tribunals Ordinance did not empower such claims. The appeal was deemed devoid of merit and was dismissed without any order as to costs, affirming the Banking Tribunal's judgment that partially decreed the bank's suit. |
| Summary |
In the case of R. F. A. No. 145 of 1997, the Lahore High Court addressed the appeal of the Agricultural Development Bank of Pakistan concerning a recovery suit against Abdul Waheed and others. The primary issue revolved around the bank's claim for liquidated damages and future markup, which the Banking Tribunal had denied. The court emphasized that under the Banking Tribunals Ordinance and the Financial Institutions (Recovery of Finances) Ordinance, the bank did not have the authority to claim such amounts. The decision referenced previous case law, notably Allied Bank of Pakistan Ltd. Faisalabad v. Messrs Aisha Garments, establishing that banks are not entitled to recover liquidated damages in Islamic finance contexts. The appeal was ultimately dismissed, reinforcing the importance of adhering to established legal principles in financial recovery cases. |
| Court |
Lahore High Court
|
| Entities Involved |
AGRICULTURAL DEVELOPMENT BANK OF PAKISTAN,
ABDUL WAHEED
|
| Judges |
MUHAMMAD SAYEED AKHTAR,
MIAN HAMID FAROOQ
|
| Lawyers |
Mian Nasir Mehood,
|
| Petitioners |
AGRICULTURAL DEVELOPMENT BANK OF PAKISTAN through Manager
|
| Respondents |
2 others,
ABDUL WAHEED
|
| Citations |
2004 SLD 2102 = 2004 CLD 953
|
| Other Citations |
2001 MLD 1955
|
| Laws Involved |
Banking Tribunals Ordinance (LVIII of 1984),
Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)
|
| Sections |
5,
7
|