2009 PLP 209 (CLD)

Mr. Izhar Muhammad, Advocate has filed his Vakalatnamas on behalf of the Standard Chartered Bank (Pakistan) Limited/Respondent In C.Ps. Nos. D-1347, D-1349, D-1350, D-1351, D-1352, D-1353 and D-1354 of 2008, which are taken on record. This order governs above captioned nine constitutional petitions hearing identical facts and laws. The petitioners being aggrieved of the unlawful acts of recovery staff of the Bank visited the houses of the petitioners in utter disregard to the existing structure of the banking system for recovery of consumers' loan as well as credit card loans advanced under the prevalent system. Learned counsel for the petitioner has pointed out that the recovery staff of the Banks in collusion with the police and with the help of private individuals have been raiding the houses of the consumers/loanee in order to realize the amount due, payable under the facilities advanced through Credit Card System by way of adopting illegal modes and means, causing harassment in front of houses of the petitioners, created law and order situation with the aid and assistance of the local police. In the identical Petition bearing No.D-781 of 2008 Anwar Mehmood v. Federation of Pakistan and others the Presidents of the Banks were summoned and subsequently directed to set-up a policy for recovery of consumers' loan in collaboration with the State Bank of Pakistan vide order dated 9-5-2008. The relevant portion of the order id herein} below:-- "As a consequence of order dated 30 April, 2008 Presidents of the Banks summoned have appeared in person. Controversy pertains to a delicate issue pertaining to the recovery of un-liquidated loan from the borrowers. Grievance of the petitioner is limited to the effect that those appointed by the authorities have resorted to illegal activities used all possible coercive measures for clearance of outstanding loan from the defaulters although persistently this Court is of the view as ordered in similar petitions that the mode and course provided under the law should be adopted for the recovery of the outstanding loan from the borrowers. It seems that the object of law as provided under Ordinance, 2001 as well as under the repealed Banking Laws have not been followed in letter and spirit. On the contrary, it seems that the law has been flouted with the sole object of putting the borrowers, their lives and liberty at stake so much so that some of the borrowers in this Mega City were left over to commit suicide. We are of the view that the Presidents of the Banks present in Court should formulate a unilateral policy which should not cross the limits putting citizens at stake under the guidance of State of Pakistan which should be adopted in all the Provinces of the country to ensure that the criminal activities adopted by those appointed by the Banks for recovery must come to an end. Such report preferably be furnished by next date of hearing.' Learned counsel appearing for Banks have candidly agreed that such policy would be formulated and would be implemented to secure the lives and liberties of the borrowers which may not in any way effect their status as guaranteed in the Constitution of Pakistan. However, role of the police cannot be over-looked as they were also directed to take action against those at faults. Unfortunately, no substantive investigation has been conducted by the responsible in authority as they being the custodian of law are also entitled to play their role so that mischievous actives of the miscreants working for the Bank must be put to an end." Therefore, such guidelines have been set out, presented and published for the information of general public as well as to consumers and credit card holders by the State Bank of Pakistan had issued instructions to all Commercial Banks. On behalf of the Respondents/Banks, it has been apprised that in future guidelines provided by the State Bank of Pakistan would be followed in letter and spirit. It is stated at the bar that the Banks had not employed any private party to harass the petitioners for the purposes of recovery of outstanding loans against the consumers and that the Banks A will proceed to take action against the petitioners in accordance with law before Competent Forum provided under the Financial Institutions (Recovery of Finance) Ordinance, 2001.; The learned counsel for the petitioners appears to be satisfied by the statement made by the learned counsel for the Banks. Be that as it may, at this stage, it is specifically stated by the learned counsel for the petitioners that after filing of the petitions, no harassment has been extended by the employees of the Banks and/or any private person for recovery of outstanding loans. The disputed question in relation to the disbursement of loans cannot be adjudicated in extraordinary constitutional jurisdiction of this Court. However on the basis of the statement of learned counsel for the respondents, the respondents are restrained from harassing and/or creating disturbance in the way of the petitioners or their family members except to approach the Competent Forum for realization of loans in accordance with law. In view of the above facts and circumstances, the above petitions stand disposed of along with listed applications. S.A.K./Z-31/K Order accordingly.