| Case ID |
ec0ed0b4-3975-477d-9f53-346ecd6fb1ef |
| Body |
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| Case Number |
C.O.S. No.21 of 2006 |
| Decision Date |
Jan 20, 2009 |
| Hearing Date |
|
| Decision |
The Lahore High Court decreed the suit in favor of Habib Bank Limited, asserting that the claims made by the bank regarding the restructuring of the finance were substantiated by the executed documents. The court found that the allegations of fraud and misrepresentation made by the defendants were baseless and not supported by substantial evidence. The restructuring agreement and the guarantees executed were valid, and the bank was not required to present the original disbursement documents as the case pertained to restructuring rather than new financing. The suit was decreed for the recovery of the claimed amount, reinforcing the legal standards set by the Financial Institutions (Recovery of Finances) Ordinance, 2001. |
| Summary |
The case revolves around the financial recovery actions taken by Habib Bank Limited against Taj Textile Mills Limited and associated defendants due to defaults on financial agreements. The Lahore High Court's decision emphasized the legitimacy of the bank's claims based on the executed restructuring agreements and relevant documentation. The court dismissed the defendants' allegations of fraud and misrepresentation, highlighting that such claims lacked substantial backing and were not adequate to deny the bank's lawful recovery rights. This case serves as a critical point of reference for financial institutions in understanding the nuances of restructuring finance agreements under the Financial Institutions (Recovery of Finances) Ordinance, 2001. Keywords include 'financial recovery', 'restructuring agreements', 'legal precedent', 'fraud allegations', and 'banking law'. |
| Court |
Lahore High Court
|
| Entities Involved |
HABIB BANK LTD.,
TAJ TEXTILE MILLS LTD.
|
| Judges |
MIAN SAQIB NISAR, J
|
| Lawyers |
Munawar-us-Salam,
Shams Mehmood Mirza
|
| Petitioners |
HABIB BANK LTD.
|
| Respondents |
5 others,
Chief Executive,
TAJ TEXTILE MILLS LTD.
|
| Citations |
2009 SLD 1897,
2009 CLD 1143
|
| Other Citations |
2003 CLD 931,
2004 CLD 587,
2006 CLD 217
|
| Laws Involved |
Financial Institutions (Recovery of Finances) Ordinance, 2001
|
| Sections |
9,
10,
15
|