| Case ID |
de6b885e-cd6c-429b-8c71-bdcbbf835891 |
| Body |
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| Case Number |
W.P. No. 7916 of 2005 |
| Decision Date |
May 15, 2006 |
| Hearing Date |
|
| Decision |
The Lahore High Court ruled that the action of the respondent regarding placement of the petitioners on the Credit Information Bureau (CIB) list without notice and without ascertaining the genuineness of the information is violative of Articles 4, 18, and 25 of the Constitution of Pakistan. The Court declared the impugned placement of the petitioners on the CIB list without lawful authority and with no legal effect, thus allowing the constitutional petition. The Court emphasized that proper notice and verification are required before listing any entity on the defaulter's list, especially considering the significant implications of such actions on the reputation and business operations of the petitioners. The Court also highlighted that the petitioners had fulfilled their liabilities as per the arbitrator's award, which further necessitated their removal from the CIB list. |
| Summary |
This case revolves around the actions of Trust Leasing Corporation Ltd in placing Yousaf Sugar Mills on the Credit Information Bureau (CIB) list without adequate notice or verification. The Lahore High Court examined the implications of such actions under the Banking Companies Ordinance and the Constitution of Pakistan. The Court found that the lack of notice and due process violated the rights of the petitioners, who had already settled their liabilities as per an arbitrator's decision. The judgment underscores the importance of fair trial principles and the necessity for financial institutions to adhere to legal standards when communicating default statuses. The ruling is significant for businesses facing potential blacklisting, as it establishes a precedent for ensuring due process in financial dealings. This case is crucial for understanding the intersection of corporate law, banking regulations, and constitutional rights in Pakistan, making it relevant for legal practitioners and businesses alike. |
| Court |
Lahore High Court
|
| Entities Involved |
Yousaf Sugar Mills,
Trust Leasing Corporation Ltd,
Haseeb Waqas Group of Companies
|
| Judges |
SYED HAMID ALI SHAH, J.
|
| Lawyers |
Mr. Shahid Karim, Advocate for Petitioner.,
Mr. Rissal Hassan Syed, Advocate for Respondent No. 1.,
Mr. Rehan Nawaz, Advocate for Respondents No. 2 & 3.
|
| Petitioners |
YOUSAF SUGAR MILLS
|
| Respondents |
TRUST LEASING etc.
|
| Citations |
2007 SLD 3170,
2007 PLJ 891
|
| Other Citations |
2005 CLD 1830,
2003 SCMR 629,
PLD 1999 SC 1126,
2003 SCMR 1547,
2006 CLD 55
|
| Laws Involved |
Banking Companies Ordinance, 1962,
Constitution of Pakistan, 1973
|
| Sections |
25-A,
4,
18,
25,
199
|