| Case ID |
ffd00fdc-9b9d-48b2-abb7-ce953223ca6e |
| Body |
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| Case Number |
Civil Original Suit No.12 of 2000 |
| Decision Date |
May 14, 2003 |
| Hearing Date |
|
| Decision |
The Lahore High Court concluded that the plaintiffs' claim for damages and compensation did not arise out of the finance agreement and no default under the Insurance Act was committed by Habib Bank Limited to indemnify the plaintiffs or to pay their insurance claim or any damages on that basis. The insurance claim was based upon the indemnity of the insurance companies to the plaintiffs and not to Habib Bank Limited. Consequently, the court ruled that it did not have jurisdiction to proceed with the present suit. The plaint was ordered to be returned for presenting to the court of competent jurisdiction. No costs were ordered. |
| Summary |
The case involved a suit filed by Messrs Grace Textile Mills (Pvt.) Ltd. and another against Habib Bank Limited and several insurance companies for the recovery of an insurance claim along with damages and compensation. The plaintiffs alleged that they had obtained insurance from the recommended companies based on the bank's suggestion, but the insurance companies failed to settle the claims following a fire at the plaintiffs' factory. The court found that the plaintiffs could not establish any contractual relationship or liability on the bank's part to pay the insurance claims. The court also noted that the insurance companies were not financial institutions under the Financial Institutions (Recovery of Finances) Ordinance, 2001. The High Court concluded that it lacked jurisdiction to hear the case and ordered the plaint to be returned for filing in a competent court. The decision highlights the importance of understanding contractual obligations and the limitations of court jurisdiction in financial disputes. |
| Court |
Lahore High Court
|
| Entities Involved |
Habib Bank Limited,
Messrs Grace Textile Mills (Pvt.) Ltd.,
Messrs Platinum Insurance Company Limited,
Messrs Silver Star Insurance Company,
Messrs National General Insurance Company,
Messrs Pakistan General Insurance Company Limited,
Messrs Cooperative Insurance Society of Pakistan Limited
|
| Judges |
MUHAMMAD SAIR ALI, J
|
| Lawyers |
Dr. Syed Shaukat Hussain for Plaintiffs.,
Shamas Mehmood Mirza for Defendant No. 1.,
Shah Muhammad Chaudhary for Defendant No. 2.,
M. Javed Iqbal for Defendant No. 5.
|
| Petitioners |
another,
Messrs Grace Textile Mills (Pvt.) Ltd.
|
| Respondents |
5 others,
Habib Bank Limited
|
| Citations |
2003 SLD 3082,
2003 CLD 1685
|
| Other Citations |
PLD 2001 Lahore 313,
1988 CLC 1660
|
| Laws Involved |
Financial Institutions (Recovery of Finances) Ordinance, 2001,
Civil Procedure Code, 1908
|
| Sections |
2(a),
2(c),
13,
O. VII, Rr.10 & 11
|