Interest-bearing loan
Interest-bearing loan legal meaning, translation and judicial precedents.
Meaning & Judicial Interpretation: (اردو مفہوم اور قانونی تشریح)
Bank filed appeal before High Court contending that as per agreement between parties compound interest was to be allowed
High Court allowed compound interest to the Bank
Contention that in view of BCD Circular No.13 dated 20-6-1984, and BCD Circular No.32 dated 26-11-1984, Bank could not charge compound interest on loans given by it after 1-1-1985, and that Bank had unlawfully amalgamated three loans into one and started charging compound interest
Validity
Powers and functions given to State Bank of Pakistan were entirely divorced from the laws enacted from time to time for recovery of outstanding loans by the Banks and other development financial institutions, hence it could not be said that after 1-1-1985 no loans previously given by any company/development financial institutions on the old interest bearing system could not be recovered as such
Section 15 of Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997 (since repealed) provided that both interest and mark-up could be recovered and the same was reflected in S.29 of Financial Institutions (Recovery of Finances) Ordinance, 2001
Parties had voluntarily agreed to amalgamation of loans through the agreement, which provided for 12% compounded interest
Appeal was dismissed in circumstances.
Bank filed appeal before High Court contending that as per agreement between parties compound interest was to be allowed
High Court allowed compound interest to the Bank
Contention that in view of BCD Circular No.13 dated 20-6-1984, and BCD Circular No.32 dated 26-11-1984, Bank could not charge compound interest on loans given by it after 1-1-1985, and that Bank had unlawfully amalgamated three loans into one and started charging compound interest
Validity
Powers and functions given to State Bank of Pakistan were entirely divorced from the laws enacted from time to time for recovery of outstanding loans by the Banks and other development financial institutions, hence it could not be said that after 1-1-1985 no loans previously given by any company/development financial institutions on the old interest bearing system could not be recovered as such
Section 15 of Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997 (since repealed) provided that both interest and mark-up could be recovered and the same was reflected in S.29 of Financial Institutions (Recovery of Finances) Ordinance, 2001
Parties had voluntarily agreed to amalgamation of loans through the agreement, which provided for 12% compounded interest
Appeal was dismissed in circumstances.
"Interest-bearing loan", Pakistan Law Portal, available at: https://paklawportal.com/words-terms-maxims/124940003
Precedents & Case Laws citing "Interest-bearing loan"
2013 C L D 974
AZAM WAZIR KHAN — Appellant Versus Messrs INDUSTRIAL DEVELOPMENT BANK OF PAKISTAN and others — Respondents
Court: Supreme Court of Pakistan2013 S C M R 678
AZAM WAZIR KHAN — Appellant Versus Messrs INDUSTRIAL DEVELOPMENT BANK OF PAKISTAN and others — Respondents
Court: Supreme Court of Pakistan1986 M L D 176
THE MUSLIM COMMERCIAL BANK Ltd. — Plaintiff Versus JUNEJO ZIAUDDIN AHMAD and another — Defendants
Court: Karachi2006 C L D 706
Mst. SHAHEEN NOON and another — Appellants Versus ALLIED BANK OF PAKISTAN through Manager and others — Respondents
Court: Lahore2002 C L D 94
AGRICULTURAL DEVELOPMENT BANK OF PAKISTAN‑‑‑Appellant Versus JASARAT HUSSAIN ‑‑‑Respondent
Court: Lahore2024 C L D 148
NATIONAL BANK OF PAKISTAN through Authorized Attorney — Appellant Versus Messrs BRITE CHEMICALS through Managing Partners and others — Respondents
Court: Lahore1988 C L C 849
Messrs SHIFA MEDICOS and others‑‑Appellants Versus NATIONAL BANK OF PAKISTAN‑‑Respondent
Court: Lahore2017 C L D 1176
ARIF OOSMAN — Appellant Versus HABIB BANK LIMITED through Recoveries and Litigation Department — Respondent
Court: Sindh2004 C L D 110
ALLIED BANK OF PAKISTAN LIMITED‑‑‑Plaintiff Versus Mrs. FAHMIDA and 2 others‑‑‑Defendants
Court: Karachi1997 P T D 1201
COMMISSIONER OF INCOME-TAX Versus SHIV PRAKASH JANAK RAJ & CO. (PVT.) LTD.
Court: 222 I T R 583