| Case ID |
5cbf70a0-98ac-45bd-90e7-653a970a1bff |
| Body |
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| Case Number |
Regular First Appeal No.463 of 2002 |
| Decision Date |
Sep 29, 2003 |
| Hearing Date |
Sep 29, 2003 |
| Decision |
The appellant filed an appeal to reduce their liability towards the Islamic Investment Bank Limited, challenging the amount claimed by the bank. The appellant acknowledged their liability towards the principal amount and the markup, as stated in the account statement submitted with the leave application. The bank had only claimed the principal and the provided markup without adding any compound markup, thereby obliging the appellant to pay the specified amount. The appellant argued that they had made substantial payments amounting to Rs.9,00,000, which should reduce their outstanding liability to Rs.3,98,160. However, the court found no merit in this claim, noting that the final settlement included a remission of compound interest for the period from November 1996, reducing the liability to Rs.21,72,051. The appellant's contention regarding the calculation of the outstanding amount was dismissed, and the appeal for reduction of liability was denied. |
| Summary |
In the case of Regular First Appeal No.463 of 2002, heard by the Lahore High Court on September 29, 2003, the appellants, Messrs DELITE HOUSE (PVT.) LIMITED and two others, contested the liability imposed by Islamic Investment Bank Limited under the Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001), specifically Section 22. The appellants admitted their liability towards the principal and the markup but disputed the calculation of their outstanding debt, claiming substantial payments had been made that were not reflected in the bank's account statement. They argued that their actual liability was significantly lower after accounting for these payments. Despite these arguments, the court upheld the original amount claimed by the bank, noting that the appellant had previously admitted liability for the principal and agreed to the markup as stated. The court found no merit in the appellant's contention regarding the calculation discrepancies and the alleged overcharging of compound interest from May 1993, as remission was granted only from November 1996. Consequently, the appeal to reduce the liability was dismissed. This case underscores the importance of accurate account statements and adherence to agreed-upon financial terms in recovery of finances under banking laws. Legal experts emphasize the necessity for clear documentation and prompt dispute resolution mechanisms to prevent prolonged litigation. The decision highlights the court's role in enforcing financial regulations and ensuring that both parties uphold their contractual obligations. Additionally, the case illustrates the challenges faced by financial institutions in recovering debts and the judicial oversight involved in such processes. For businesses and legal professionals, this ruling serves as a precedent in cases involving financial liabilities and the interpretation of recovery ordinances. The emphasis on settled accounts and formal admissions of liability reinforces the legal framework governing financial disputes in Pakistan. Furthermore, the involvement of prominent lawyers like Ahmed Waheed Khan and Haq Nawaz Chatta showcases the significance of experienced legal representation in appellate cases. Stakeholders in the financial sector can derive valuable insights from this judgment regarding best practices in financial management and dispute resolution. Overall, this case contributes to the body of case law pertaining to financial recoveries, offering clarity on the application of specific ordinance sections and the judicial considerations in such matters. |
| Court |
Lahore High Court
|
| Entities Involved |
Islamic Investment Bank Limited,
Messrs DELITE HOUSE (PVT.) LIMITED
|
| Judges |
MIAN SAQIB NISAR,
SYED SAKHI HUSSAIN BOKHARI
|
| Lawyers |
Ahmed Waheed Khan,
Haq Nawaz Chatta
|
| Petitioners |
2 others,
Messrs DELITE HOUSE (PVT.) LIMITED
|
| Respondents |
Islamic Investment Bank Limited
|
| Citations |
2004 SLD 2148,
2004 CLD 1594
|
| Other Citations |
Not available
|
| Laws Involved |
Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)
|
| Sections |
S.22
|