Suit by borrower against financial institution

2013 CLD 1867 KARACHI-HIGH-COURT-SINDH Judicial Precedent

S. 10Suit by borrower against financial institutionLeave to appear and defend the suitSubstantial question of fact and lawScope

Plaintiff availed finance facility from House Building Finance Corporation and matter was finally settled in Supreme Court in terms of calculating liability

Official Assignee was appointed to calculate liability

Plaintiff filed the suit disputing markup/interest and also claimed recovery of excess amount paid to House Building Finance Corporation and also claimed liquidated damages and general damages which could not be adjudicated through a snap decision

Validity

Was necessary to see whether Official Assignee rightly calculated outstanding liability in terms of settlement reached before Supreme Court and to be adjudicated whether plaintiff was liable to pay markup/profit up to the date of taking over the possession by the Corporation or it was continuing right to claim markup/profit on last calculation made by Official Assignee up to 1-12-2006

Even defendant in leave to defend showed calculation up to 30-4-2009, payable by plaintiff which was on and on

In order to resolve such controversy including the claim of damages and excess amount an opportunity needed to be provided to parties for leading evidence so that bone of contention might be decided

Defendant in its leave to defend application had raised substantial question of law and fact hence, deserved unconditional leave to defend

High Court directed Official Assignee to submit latest report in court with up to date calculation of dues if any

Application was allowed accordingly.