| Case ID |
f7cd7c6e-6a70-46d3-a59b-13942a1b8465 |
| Body |
View case body. Login to View |
| Case Number |
C.O.S. No. 13 of 2004 |
| Decision Date |
Dec 29, 2016 |
| Hearing Date |
|
| Decision |
The Lahore High Court ruled in favor of the petitioner, Allied Bank Limited, in a suit for recovery of Rs. 263.982 Million against Bankers Equity Ltd. The court noted the execution of a redemption guarantee by the respondent in favor of the petitioner and highlighted the failure of Bankers Equity Ltd. to meet its obligations under said guarantee. The court emphasized the binding nature of the guarantee and the legal implications of the default. The matter was further complicated by the involvement of the Official Liquidator due to the winding up of Bankers Equity Ltd. The court's decision reinforced the legal principles surrounding guarantees and defaults in financial obligations. |
| Summary |
This case revolves around a financial dispute between Allied Bank Limited (ABL) and Bankers Equity Ltd. (BEL) concerning a redemption guarantee executed by BEL to indemnify ABL against the liabilities of Zahur Textile Mills Ltd. The court examined the validity of the guarantee and the obligations it imposed on BEL, particularly after BEL defaulted on its payment obligations. The proceedings also involved the Official Liquidator due to BEL's winding up, complicating the recovery process for ABL. The case highlights critical aspects of financial guarantees and the responsibilities of corporate entities in fulfilling their obligations. The final ruling underscored the enforceability of financial guarantees and the legal recourse available to creditors in cases of default. Key legal terms include 'redemption guarantee', 'financial obligations', and 'corporate liability'. This case serves as a significant reference for similar financial disputes and the interpretation of corporate guarantees within the financial sector. |
| Court |
Lahore High Court
|
| Entities Involved |
Allied Bank Limited,
Bankers Equity Ltd.,
Zahur Textile Mills Ltd.
|
| Judges |
SHAHID KARIM
|
| Lawyers |
Not available
|
| Petitioners |
ALLIED BANK LIMITED THROUGH ATTORNEYS
|
| Respondents |
BANKERS EQUITY LTD. THROUGH OFFICIAL LIQUIDATOR AND OTHERS
|
| Citations |
2017 SLD 1423,
2017 CLD 663
|
| Other Citations |
Not available
|
| Laws Involved |
Not available
|
| Sections |
Not available
|