2005 PLP 1676 (CLD)
Messrs GREEN OIL MILLS through Managing Partner and 4 others — Appellants Versus NATIONAL BANK OF PAKISTAN and another — Respondents
| Citation | 2005 PLP 1676 (CLD) |
| Forum / Court | Lahore |
| Bench Members | N/A |
| Parties | Messrs GREEN OIL MILLS through Managing Partner and 4 others — Appellants Versus NATIONAL BANK OF PAKISTAN and another — Respondents |
| Primary Law | Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001) |
Q1: What are the key laws and sections cited in 2005 PLP 1676 (CLD)?
This judgment primarily cites: Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001) as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 2005 PLP 1676 (CLD)?
The case was heard and decided by the Lahore bench comprising: N/A.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 2005 PLP 1676 (CLD) (Messrs GREEN OIL MILLS through Managing Partner and 4 others — Appellants Versus NATIONAL BANK OF PAKISTAN and another — Respondents). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Representation
- Rana Imtinan Saeed for Respondents.
Headnotes / Summary
Ss. 3, 9, 19 & 22
Grant of mark up
According to Financial Institutions (Recovery of Finances) Ordinance, 2001, mark-up could not have been granted by Court, rather it could grant only cost of funds determined under S.3 of Financial Institutions (Recovery of Finances) Ordinance, 2001
Lower Court having committed error in that behalf, High Court modified judgment and decree of Banking Court to the effect that instead of grant of mark-up, Bank was entitled to the cost of funds as per S.3 of Financial Institutions (Recovery of Finances) Ordinance, 2001
Executing Court, at time of execution of decree, would calculate exact amount of cost of fund awarded.
Judgment & Decree
MIAN SAQIB NISAR, J.
The respondent-Bank brought a suit for recovery against the appellant to the tune of Rs. 1.506 million on the premise that through a financing agreement dated 6-1-1999 the limit of 1.500 million was sanctioned and granted to the appellant firm, the appellant though has repaid some amounts, yet the total liability has not been discharged till the expiry of the agreement, i.e. 31-12-1999. Resultantly, a further financing agreement dated 1-1-2000 was duly executed, but the liability has not been discharged, therefore, the aforesaid amount is due from the appellant firm and its partners. The appellants moved an application for grant of leave in which they have not specifically denied the execution of the agreements but vaguely claimed that the agreements and the guarantees are forged for the reasons those documents contain the signatures of deceased Muhammad Sadiq, who had died in the year, 1995.
2. Learned Court below has dismissed the leave application and decreed the suit to the tune of Rs. 1,351984.70 plus mark-up till the realization of the amount.
3. Learned counsel for the appellant has reiterated his argument that Muhammad Sadiq had died in 1995 thus his signature on the two agreements and guarantees subsequently executed indicates that those are forged and fabricated documents. We are afraid that there are no signatures of Muhammad Sadiq, on the said agreements or guarantees, resultantly the plea raised is absolutely misconceived and against the record.
4. According to the Financial Institutions (Recovery of Finances) Ordinance, 2001 the mark-up however, could not been granted by the Court below, rather only cost of funds, which are determinable under section 3 of the Ordinance. Suffice it to say that obviously the learned Court below has committed error in this behalf, therefore, by dismissing this appeal, we modify the judgment and decree of the Court below, that instead of grant of mark-up, the respondent-Bank is entitled to the cost of funds as per section 3 of the Ordinance. The Executing Court, at the time of execution of the decree, shall calculate the exact amount of the cost of fund awarded. Dismissed. H.B.T./G-295/L Order accordingly.