| Case ID |
fffdf1dc-c129-4120-9a40-88090608e48c |
| Body |
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| Case Number |
Regular First Appeal No.202 and C.M. No.2 of 2006 |
| Decision Date |
Sep 04, 2006 |
| Hearing Date |
|
| Decision |
The appeal was accepted with modifications in the judgment and decree of the trial court. The court granted an interim decree to the respondents for the unpaid overdue rental amount along with the cost of funds. The appellants were entitled to unconditional leave to defend the suit concerning the balance claim of the respondents. The judgment emphasized the need to prove the balance claims relating to penalty charges in evidence. |
| Summary |
This case involved a dispute between Crystal Seeds (Pvt.) Ltd. Lahore and Crescent Commercial Bank Limited over the recovery of bank loans. The appellants, Crystal Seeds and others, had entered into a lease finance agreement with the respondent bank, guaranteed by other parties. The appellants defaulted on the lease payments, leading the bank to file a suit for recovery. The trial court dismissed the appellants' application for leave to defend the suit, resulting in a decree in favor of the bank. On appeal, the Lahore High Court found that the trial court had misapplied subsections (3) and (4) of section 10 of the Financial Institutions (Recovery of Finances) Ordinance, 2001, as the appellants raised triable issues requiring evidence. The court modified the trial court's judgment, granting the respondents an interim decree for the unpaid overdue rental amount while allowing the appellants to defend the balance claims. This case highlights the importance of proving penalty charges in financial disputes and the court's role in ensuring fair proceedings. Keywords: lease finance dispute, bank loan recovery, Lahore High Court, Financial Institutions Ordinance, legal defense, penalty charges, interim decree. |
| Court |
Lahore High Court
|
| Entities Involved |
CRESCENT COMMERCIAL BANK LIMITED,
CRYSTAL SEEDS (PVT.) LTD. LAHORE
|
| Judges |
SH. AZMAT SAEED,
UMAR ATA BANDIAL
|
| Lawyers |
Muhammad Arshad-V for Appellants,
Mian Sultan Tanveer Ahmad for Respondent
|
| Petitioners |
2 others,
CRYSTAL SEEDS (PVT.) LTD. LAHORE through Chief Executive
|
| Respondents |
CRESCENT COMMERCIAL BANK LIMITED Lahore High Court through Branch Manager
|
| Citations |
2007 SLD 2789,
2007 CLD 229
|
| Other Citations |
Not available
|
| Laws Involved |
Financial Institutions (Recovery of Finances) Ordinance, 2001
|
| Sections |
10(3)(4),
22
|