1997 PLP 3006 (MLD)

The petitioner has filed the instant writ petition and has requested that this be considered as representative writ but he has not filed the relevant stamp for the list of twenty persons attached with the present writ petition. Grievance of the petitioners is that they are residents of Mauza Jahangirabad Tehsil and District, Multan where a branch of National Bank of Pakistan was working since twenty‑five years and had obtained gold medal for achieving a good target and there is thirty thousands population and they are paying utility bills in this branch and are obtaining the concession of agricultural loan from the same branch. That this branch is being closed and this tentamounts to interference in the fundamental rights of the petitioners.

2. The instant petition is deficient of stamp‑even if the grievance of the petitioner is looked into. Regional Chief Executive of the bank is present. alongwith his learned counsel on Court's call. He has placed on record the loss incurring branches and closure of. Through this letter the S.B.P. has constituted a committee of Chief Executives of all M.C.Bs. under the Chairmanship of President to review the issue of loss incurring branches in an overall perspective of M.C.Bs. The committee is also to make recommendations for closure/relocation in an orderly and systematic manner keeping in view with requirements of providing banking services to all segments of the society and reducing unnecessary expenditure and loss to the bank. They have shown the loss in the year 1992, Rs.4,94,122 1993, Rs.2,95,945 1994, Rs.6,44,704 1995, Rs.6,41,340 1996, Rs.4,89,476 and up to 31‑5‑1997 Rs.1,82,

481. They have supplied another document with the caption "loss incurring branches recommended for closure" from the Senior Vice‑President for closure of branch mentioned at serial No‑4 i.e. Jahangirabad, Khanewal Road branch. Learned counsel for the respondents has relied on a letter issued by the State Bank of Pakistan Central Directorate I.I. Chundrigar Road, Karachi to the President of National Bank of Pakistan Head Office, I.I. Chundrigar Road, Karachi whereby a copy of the revised Branch Licencing Policy for branches of domestic banks within Pakistan was intimated to have come into force with immediate effect. According to the Article 12 of the said policy instructions issued by the State Bank of Pakistan captioned as "Closure of Branches' are re‑produced as under:‑ "Banks will be free to close any of their existing branches operating at banked places provided such closure does not render the place as unbanked. The closure of the branch should be intimated to the State Bank within 15 days of the closure of the branch, simultaneously surrendering the licnece of the branch to tote State Bank."

3. Since the learned counsel for the petitioners has attracted the Court attention to the provision of getting permission from the State Bank for closure of branch of a Scheduled Bank of Pakistan but now the rules have been revised and according to the revised rules the authority is given to the bank from the State Bank to be free to close any of their existing branch operating at bank place. The only proviso is that such closure does not render the place as unbanked. Learned counsel for the respondents has submitted that at a distance of one kilo metre there is another branch of National Bank of Pakistan in the Fertilizer Factory and there is another branch opt side the Fertilizer Factory of United Bank of Limited. The petitioner can very well deposit all the utility bills over there if they have some difficulty to enter into the premises of Fertilizer Factory to pay their bills in the National Bank of Pakistan. It is the bank which is going in loss and the closure has become necessary.

4. I have heard the learned counsel for the parties and carefully perused the record. The State Bank has issued revised Branch Licencing Policy for branches of domestic banks within Pakistan. This is dated 5‑5‑1994. The documents placed on record by the respondent show that the shifting of the branch within the same village and also closure of the branches have been given within the domain of the bank itself which were previously kept within the prerogative of the State Bank. In the changed circumstances to meet the competitive world the banks have their own policies under the supervision of the State Bank and they have been given free hand by the State bank to close any branch which is going in loss. The only embargo which is put on a bank that it must intimate the State Bank within 15 days of the closure of the branch and it should not render the place as unbanked. The bank authorities present in Court states that on 1 kilo metre. there is another branch of United Bank Ltd. as well as National of Pakistan although within the premises of Fertilizer Factory which is a prohibited area but still the utility bills can be presented in the branch which is only at a distance of 1 kilo metre. .5. The petitioner does not come within the proviso of an aggrieved person because it is prerogative of the bank to see whether the branch is incurring loss or is successfully running and as now the revised rules have given an authority to the banks it is to be free to close any of the existing branch, therefore, finding no substance in the instant writ petition, the same is dismissed in limine. A.A./F‑32/L???????????????????????????????????????????????????????????????????????????? Petition dismissed.