2004 PLP 1571 (CLD)
HABIB BANK LIMITED through Attorneys‑‑‑Appellant Versus Messrs ALI INDUSTRIES (REGD.) and 3 others‑‑‑Respondents
| Citation | 2004 PLP 1571 (CLD) |
| Forum / Court | Lahore |
| Bench Members | Syed Zahid Hussain and Abdul Shakoor Paracha, JJ |
| Parties | HABIB BANK LIMITED through Attorneys‑‑‑Appellant Versus Messrs ALI INDUSTRIES (REGD.) and 3 others‑‑‑Respondents |
Q1: What are the key laws and sections cited in 2004 PLP 1571 (CLD)?
This judgment primarily cites: statutory provisions as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 2004 PLP 1571 (CLD)?
The case was heard and decided by the Lahore bench comprising: Syed Zahid Hussain and Abdul Shakoor Paracha, JJ.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 2004 PLP 1571 (CLD) (HABIB BANK LIMITED through Attorneys‑‑‑Appellant Versus Messrs ALI INDUSTRIES (REGD.) and 3 others‑‑‑Respondents). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Representation
- Ishraq Cheema for Appellant.
- Nemo for Respondent.
- Date of hearing: 4th March, 2003.
Headnotes / Summary
Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)‑‑‑ ‑‑‑‑‑Ss.7 & 17‑‑‑Liquidated damages‑‑‑Refusal by Court‑‑ Appellant‑Bank had failed to call upon the respondents to clear the outstanding liability before the institution of the suit Liquidated damages were thus refused ‑‑‑Validity‑‑‑Where the suit was decreed in favour of the bank after excluding the amount already deposited by the respondents in the Bank's account along with the liquidated damages being demanded by the bank against the respondents, the bank was not justified in claiming liquidated damages‑‑‑No illegality committed by Banking Tribunal in not granting liquidated damages td the bank. Habib Bank Ltd. v. Messrs Farooq Compost Fertilizer Corporation Ltd. and 4 others 1993 MLD 1571; Allied Bank of Pakistan Limited, Faisalabad v. Messrs Asisha Garments through Proprietor and 2 others 2001 MLD 1955; Saudi‑Pak Industrial and Agricultural Investment Company (Pvt.) Limited, Islamabad v. Mohib Textile Mills Limited Lahore and 3 others 2002 CLD 1170 and National Development Finance Corporation v. Messrs Millrock Quarring (Pvt.) Ltd. and 7 others 2002 CLD 1382 ref.
Judgment & Decree
SYED ZAHID HUSSAIN, J.‑A suit for recovery of Rs.8,26,951 instituted by the appellant‑Bank against the respondents/defendants was disposed of .by the learned Banking Tribunal, Faisalabad on 17‑10‑1995 decreeing the claim of the bank partially which judgment has been appealed against by the plaintiff‑Bank through this regular first appeal.
2. The material on the record has been perused and considered.
3. In reply to the show‑cause notice, though the availing of the financial facility of Rs.5 lacs was not denied yet it was pleaded that a sum of Rs.3,47,400 had already been deposited by the respondent/defendants towards the liquidation of liability and, that they were ready to pay the balance amount including accumulated contractual mark‑up. It was thus, that the learned Chairman Banking Tribunal on consideration of the material on the record declined to decree the suit as a whole and refused to grant liquidated damages taking the view that the appellant‑Bank had failed to call upon the defendants/ respondents to clear the outstanding liability before the institution of the suit. The suit was eventually decreed to the extent of Rs.3,64,888 after excluding the amount deposited by the defendants in their account and the liquidated damages included in the borrowers accounts, in favour of the plaintiff-Bank as against the defendants jointly and severally with costs." In the facts and circumstances of the case we do not find that the plaintiff‑Bank was justified in this case to claim liquidated damages from the respondents. Law as to the liquidated damages is well‑settled in the precedents i.e. Habib Bank Ltd. v. Messrs Farooq Compost Fertilizer Corporation Ltd. and 4 others 1993 MLD 1571; Allied Bank of Pakistan Limited, Faisalabad v. Messrs Asisha Garments through Proprietor and 2 others 2001 MLD 1955; Saudi‑Pak Industrial and Agricultural Investment Company (Pvt.) Limited, Islamabad v. Mohib Textile Mills Limited Lahore and 3 others 2002 CLD 1170 and National Development Finance Corporation v. Messrs Millrock Quarring (Pvt.) Ltd. and 7 others 2002 CLD 1382. In view of the above, we do not find that any illegality was committed by the learned Banking Tribunal in the case. The appeal, therefore, is bereft of any merit. It is dismissed. No order as to costs. M.A.W./H‑142/L Appeal dismissed.