| Case ID |
eafc34c3-f33f-49d4-b5c0-276ae1e75ae1 |
| Body |
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| Case Number |
Regular First Appeal No. 52 of 2005 |
| Decision Date |
Apr 18, 2005 |
| Hearing Date |
Apr 18, 2005 |
| Decision |
The Lahore High Court upheld the judgment and decree of the Banking Court, which had rejected the plaint filed by the appellant, Bashir Ahmad Mughal. The court found that the appellant, as a guarantor, could not escape liability based on a compromise between the bank and the principal debtor. The court emphasized that under section 128 of the Contract Act, the liabilities of the borrower and the guarantor are co-extensive. The appeal was dismissed as it lacked merit, and the appellant was left to bear his costs. |
| Summary |
In the case of Regular First Appeal No. 52 of 2005, the Lahore High Court dealt with an appeal from Bashir Ahmad Mughal against a decision made by the Banking Court regarding the recovery of a bank loan. The appellant contended that he should be discharged from his liability as a guarantor due to a compromise made between the bank and the principal debtor. However, the court ruled that the liabilities of the borrower and the guarantor are co-extensive according to section 128 of the Contract Act, 1872. The court maintained that the appellant's claims were unfounded as he had previously acknowledged his liability in a constitutional petition. Therefore, the appeal was dismissed, affirming the Banking Court's decision and emphasizing the legal principles surrounding guarantor liability and bank loan recovery. |
| Court |
Lahore High Court
|
| Entities Involved |
Not available
|
| Judges |
MIAN HAMID FAROOQ,
SYED HAMID ALI SHAH
|
| Lawyers |
Mian Muhammad Nawaz Dhuddi
|
| Petitioners |
BASHIR AHMAD MUGHAL
|
| Respondents |
S.M.E. BANK LIMITED through General Manager,
Nemo for Respondent No. 2,
Sardar Muhammad Tariq Dreshak
|
| Citations |
2005 SLD 1762,
2005 CLD 1689
|
| Other Citations |
Federation of Pakistan v. National Bank of Pakistan, Karachi and another 1981 CLC 847
|
| Laws Involved |
Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001),
Contract Act (IX of 1872)
|
| Sections |
9,
128,
135
|