| Case ID |
eb41f139-f3ee-4bde-a4ff-b6c3d9e4fd4d |
| Body |
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| Case Number |
CIVIL APPEAL NO. 1447 OF 2016 |
| Decision Date |
Jan 02, 2018 |
| Hearing Date |
May 13, 2016 |
| Decision |
The Supreme Court of Pakistan ruled that the Banking Court does not have the authority to direct the sale of pledged goods before a final judgment in a suit for recovery. The court emphasized that the Financial Institutions (Recovery of Finances) Ordinance, 2001 specifically outlines the powers of the Banking Court, which do not include the power to sell pledged or hypothecated property before a decree is issued. The court found that the second application seeking the sale of goods was barred by the principle of res judicata, as the first application had been dismissed as premature. The appeal was allowed, and the impugned order was set aside, directing the Banking Court to expedite the matter pending for five years. |
| Summary |
In the case of CIVIL APPEAL NO. 1447 OF 2016, the Supreme Court of Pakistan addressed critical issues regarding the powers of Banking Courts under the Financial Institutions (Recovery of Finances) Ordinance, 2001. The case arose from a dispute between SONERI BANK LTD. and NASEER AHMED concerning the recovery of pledged goods. The court highlighted that the Banking Court's jurisdiction is limited to specific powers outlined in the ordinance, and it cannot authorize the sale of pledged goods prior to judgment. This decision reinforces the importance of adhering to legislative procedures in financial disputes, ensuring that the rights of both financial institutions and consumers are protected. The ruling also underscores the need for timely adjudication in banking matters, as delays can impact the resolution of financial disputes significantly. Keywords such as 'Banking Court', 'Financial Institutions Ordinance', 'recovery of finances', and 'legal proceedings' are essential for understanding the implications of this case and for optimizing search engine visibility. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
SONERI BANK LTD.
|
| Judges |
MR. JUSTICE MIAN SAQIB NISAR, CHIEF JUSTICE,
MR. JUSTICE FAISAL ARAB, JUSTICE,
MR. JUSTICE IJAZ UL AHSAN, JUSTICE
|
| Lawyers |
Mr. Salman Aslam
|
| Petitioners |
NASEER AHMED
|
| Respondents |
SONERI BANK LTD.
|
| Citations |
2018 SLD 2
|
| Other Citations |
2013 SCMR 1419,
1981 SCMR 1180
|
| Laws Involved |
Financial Institutions (Recovery of Finances) Ordinance, 2001,
Contract Act, 1872,
Civil Procedure Code, 1908
|
| Sections |
7,
7(4),
9,
9(1),
16,
19,
19(3),
23,
23(2),
176,
Order 39 Rule 5,
Order 39 Rule 6
|