| Case ID |
5c7d01fb-585c-4f81-b65f-dc69018692c8 |
| Body |
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| Case Number |
Regular First Appeal No.362 of 2002 |
| Decision Date |
Nov 27, 2002 |
| Hearing Date |
|
| Decision |
The Lahore High Court allowed the application for leave to defend filed by the appellants, subject to the condition that they deposit the principal amount of all bank guarantees within three months. The court set aside the earlier judgment and decree passed by the Banking Court, which had dismissed the application for leave to defend, and remanded the case for a fresh decision. The court emphasized that all questions raised by the guarantors needed determination and consideration, particularly regarding the bank's right to encash guarantees after the validity period had expired. |
| Summary |
In the case of Regular First Appeal No.362 of 2002 at the Lahore High Court, the appellants challenged the Banking Court's decision which dismissed their application for leave to defend a suit for recovery of Rs.82,59,547.20 filed by Union Bank Limited. The court addressed key issues regarding the encashment of bank guarantees after their validity period had expired. The appellants argued that the guarantees were contested in a civil suit, and the encashment was mala fide. The High Court allowed the appeal, setting aside the previous judgment and remanding the case for a fresh hearing, highlighting the necessity for a thorough examination of all raised questions. This case underscores the complexities involved in banking law and the legal rights of guarantors in the context of financial disputes. |
| Court |
Lahore High Court
|
| Entities Involved |
Union Bank Limited,
Communication and Works Department, Government of Punjab
|
| Judges |
MIAN HAMID FAROOQ,
PARVEZ AHMAD
|
| Lawyers |
Asghar Hameed Bhutta,
Kh. Aamer Farooq
|
| Petitioners |
,
Messrs Mian Fakhar & Co.
|
| Respondents |
,
UNION BANK LTD.
|
| Citations |
2003 SLD 2918,
2003 CLD 848
|
| Other Citations |
Not available
|
| Laws Involved |
Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act
|
| Sections |
10
|