| Case ID |
ff685f43-cc57-45e3-8bfb-3dff3d5c6aea |
| Body |
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| Case Number |
Suits Nos. 865 to 868 of 1999 |
| Decision Date |
Feb 28, 2000 |
| Hearing Date |
|
| Decision |
The Sindh High Court decreed the suits jointly and severally against the defendants. Askari Commercial Bank, Standard Chartered Bank, and Allied Bank Limited were awarded a total of Rs.70,287,671 each, along with liquidated damages of Rs.50,000. Soneri Bank Limited was awarded Rs.29,016,743 plus liquidated damages of Rs.20,000. The decision emphasized that the plaintiffs are entitled to recover the marked-up price and that any prompt payment bonuses claimed were not enforceable under Islamic finance principles. The court also ruled against the defendants' requests for rescheduling payments, citing a lack of legal grounds for such actions. |
| Summary |
This case revolves around the recovery of loans by a consortium of banks from Pakland Cement Limited. The plaintiffs claimed that Pakland defaulted on payments for a Term Finance Agreement executed on 20-7-1995. The banks sought to recover amounts due along with liquidated damages. The court ruled that the agreements were not Musharakah agreements but rather Murabahah agreements, emphasizing that the plaintiffs were entitled to the sums claimed. The court highlighted the importance of adhering to the terms of the agreements and the principles of Islamic finance, particularly regarding the prohibition of penalties for late payments. In the end, the court decreed the suits in favor of the banks, illustrating the legal obligations of borrowers under finance agreements and the enforceability of such contracts in the banking sector. |
| Court |
Sindh High Court
|
| Entities Involved |
Habib Bank Limited,
Allied Bank Limited,
Citibank N.A.,
Standard Chartered Bank,
Askari Commercial Bank Limited,
Soneri Bank Limited,
Pakland Cement Limited
|
| Judges |
S. AHMED SARWANA, J
|
| Lawyers |
Sajid Zahid,
Munawar Hussain,
Ashraf H. Rizvi
|
| Petitioners |
Allied Bank Limited,
ASKARI COMMERCIAL BANK LIMITED,
Standard Chartered Bank,
Soneri Bank Limited
|
| Respondents |
PAKLAND CEMENT
|
| Citations |
2000 SLD 2246,
2000 PLD 246
|
| Other Citations |
Not available
|
| Laws Involved |
Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997,
Contract Act, 1872
|
| Sections |
9,
15(2),
17(2),
74,
56
|