| Case ID |
eb55a619-1162-4e0d-bee6-c8a07477f78e |
| Body |
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| Case Number |
Civil Appeal No. 552 of 2015 |
| Decision Date |
Jul 02, 2018 |
| Hearing Date |
Jul 02, 2018 |
| Decision |
The Supreme Court of Pakistan set aside the impugned judgment of the Lahore High Court, which had dismissed the appeal filed by Habib Bank Ltd. The decision clarified that the banking court has jurisdiction to hear cases involving financial institutions incorporated in Pakistan, regardless of where the transaction occurred. The court emphasized the importance of effective redress for citizens and upheld the notion that financial institutions should not be able to evade jurisdiction by operating abroad. The court directed the matter to be remanded to the Banking Court for fresh consideration, ensuring that all parties have the opportunity to present their case. |
| Summary |
In the landmark case of Habib Bank Ltd. v. WRSM Trading Company, the Supreme Court of Pakistan addressed critical issues related to jurisdiction and the applicability of financial laws. The court ruled that the Banking Courts in Pakistan have the authority to adjudicate cases involving financial institutions, even when transactions occur outside the country. This decision reinforces the legal framework governing financial transactions and ensures that Pakistani citizens can seek redress within their legal system. The case highlights the evolving nature of financial laws in Pakistan and the necessity for effective regulation of banking practices. The ruling also clarifies the definition of financial institutions under the Financial Institutions (Recovery of Finances) Ordinance, emphasizing the importance of jurisdiction in financial disputes. This case serves as a precedent for future banking litigation and strengthens the legal position of financial institutions operating in Pakistan. The decision is significant for maintaining the integrity of the banking system and ensuring that financial institutions are held accountable for their obligations, thereby fostering public confidence in the banking sector. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Habib Bank Ltd.,
WRSM Trading Company, LLC
|
| Judges |
Mian Saqib Nisar,
Umar Ata Bandial,
Ijaz ul Ahsan
|
| Lawyers |
Ms. Ayesha Hamid,
M. Shahzad Shaukat,
Syed Waqar Hussain Naqvi,
Abdul Hameed Chohan,
M.S. Khattak
|
| Petitioners |
Habib Bank Ltd.
|
| Respondents |
Respondent No. 3,
Respondent No. 2,
Respondent No. 4,
Respondent No. 5,
WRSM Trading Company, LLC
|
| Citations |
2018 SLD 2193,
2018 CLD 1282
|
| Other Citations |
Dr. Raja Aamer Zaman v. Omar Ayub Khan and others 2015 SCMR 1303,
Mian Mehmood Ahmad v. Hong Kong and Shanghai Banking Corporation Ltd. through Manager and 6 others 2010 CLD 293,
Spiliada Maritime Corporation v. Cansulex Ltd. (1986) 3 WLR 972
|
| Laws Involved |
Civil Procedure Code (V of 1908),
Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)
|
| Sections |
9,
2(a),
2(c)
|