| Case ID |
d7e0b1cb-10b0-4093-bba5-ca091fe55caa |
| Body |
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| Case Number |
Regular First Appeals Nos.668 and 675 of 2001 |
| Decision Date |
Jan 13, 2003 |
| Hearing Date |
Jan 13, 2003 |
| Decision |
In the case of Regular First Appeal No. 668 of 2001, the Lahore High Court allowed the appeal and modified the impugned decree. The amount due from the appellants was reduced to Rs.31,24,000.17 with costs, acknowledging that the appellant company had not adhered to the agreed terms for repayment of finance. The High Court found that the claim of the Industrial Development Bank of Pakistan was valid as the appellants failed to repay the finance according to the re-scheduled terms. The appeal of the Industrial Development Bank of Pakistan (Regular First Appeal No. 675 of 2001) was dismissed, confirming the validity of the modified decree. |
| Summary |
The Lahore High Court's decision in Regular First Appeals Nos.668 and 675 of 2001 centers around the recovery of a loan amount by the Industrial Development Bank of Pakistan from the appellants, Messrs Combined Oil Extraction (PVT.) LIMITED and others. The court examined the financing agreement dated September 3, 1985, and the subsequent defaults committed by the appellants. It was established that the appellants had not adhered to the repayment terms and had sought a rescheduling of their financial obligations due to technical faults in their machinery. The court found that the bank's claims were justified and that the appellants' arguments regarding unauthorized account creation and improper mark-up charges were unfounded. Ultimately, the court allowed the appeal in part, reducing the amount owed by the appellants while dismissing the bank's appeal, confirming the decisions made by the Banking Court. This case highlights the importance of adhering to financial agreements and the consequences of defaulting on loan repayments. |
| Court |
Lahore High Court
|
| Entities Involved |
INDUSTRIAL DEVELOPMENT BANK OF PAKISTAN,
Messrs Combined Oil Extraction (PVT.) LIMITED
|
| Judges |
MIAN SAQIB NISAR,
JAWWAD S. KHAWAJA
|
| Lawyers |
Haq Nawaz Chattha,
Sultan Mehmood
|
| Petitioners |
Ansar Mahmood,
Messrs Combined Oil Extraction (PVT.) LIMITED,
Muhammad Arshari
|
| Respondents |
INDUSTRIAL DEVELOPMENT BANK OF PAKISTAN,
Muhammad Amin,
Abdul Majeed Sheikh
|
| Citations |
2003 SLD 3064,
2003 CLD 1573
|
| Other Citations |
Habib Bank v. Messrs Qayyum Spinning Ltd. 2001 MLD 1351
|
| Laws Involved |
Industrial Development Bank of Pakistan Ordinance
|
| Sections |
39
|