| Case ID |
ffe8a3da-8d32-4c1c-ae10-9906d49065c7 |
| Body |
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| Case Number |
B.O.S. No.14 of 1998 |
| Decision Date |
Mar 17, 2014 |
| Hearing Date |
|
| Decision |
The case was dismissed as the court held that the suit filed by the National Bank of Pakistan for recovery of the outstanding amount was not maintainable. The court found that the defendants, Messrs Khyber Textile Mills Ltd., had complied with the Incentive Scheme issued by the State Bank of Pakistan, which was binding on the Banking Company. Therefore, the suit for recovery was dismissed, and the counter-claim of the defendants was also refused due to lack of proof. |
| Summary |
In a landmark decision, the Peshawar High Court dismissed the suit filed by the National Bank of Pakistan against Messrs Khyber Textile Mills Ltd. for the recovery of an outstanding amount of Rs. 437,882,577. The court ruled that the suit was not maintainable due to the binding nature of the Incentive Scheme issued by the State Bank of Pakistan under Circular No.19. This scheme provided a one-time opportunity for bank defaulters to settle their dues at a concessional amount. The court noted that the defendants had complied with this scheme, and the bank's failure to object within the stipulated timeframe meant the settlement was final. The judgment emphasized the importance of adhering to statutory directives and the obligations of banking institutions to honor such settlements. Keywords such as 'bank loan recovery', 'State Bank of Pakistan Circular', and 'Incentive Scheme compliance' are crucial for understanding the case's impact on banking law and financial recovery processes. |
| Court |
Peshawar High Court
|
| Entities Involved |
National Bank of Pakistan,
Khyber Textile Mills Ltd.
|
| Judges |
Malik Manzoor Hussain, J
|
| Lawyers |
Alamzeb Khan,
Zahid Idrees Mufti
|
| Petitioners |
National Bank of Pakistan
|
| Respondents |
and others,
Messrs Khyber Textile Mills Ltd.
|
| Citations |
2014 SLD 2147,
2014 CLD 1157
|
| Other Citations |
2009 CLD 361,
2005 CLD 1006,
2005 CLD 1683
|
| Laws Involved |
Financial Institutions (Recovery of Finances) Ordinance, 2001,
Banking Companies (Recovery of Loans, Advances, Credits and Advances) Act, 1997,
State Bank of Pakistan Circular No.19, dated 5-6-1997
|
| Sections |
9,
9,
|