Law:

Section:

Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997) Ss. 15 & 21 Contract Act (IX of 1872), S. 73 Decree for recovery of loan amount with liquidated damages ¬Validity Neither there was any basis on record nor any justification had been given in the plaint to burden appellants with liability of liquidated damages Bank could not justify its claim for liquidated damages Banking Court had wrongly awarded such claim to Bank High Court partly allowed the appeal, modified the decree and reduced the amount of liquidated damages decreed by Banking Court. ORDER This appeal impugns the judgment and decree dated 6 7 2001 passed by the learned Banking Court IV, Lahore. The appellants were holders of credit cards issued by the respondent Bank. The first appellant was the primary card holder while the second appellant, who was husband of the first appellant, was the secondary card holder. 2. The appellants availed the credit card facility, but failed to make payment thereunder. As a consequence, the respondent Bank filed a suit for recovery of Rs.6,14,129.89. The appellants filed an application seeking leave to appear and defend. The said application, however, was dismissed and as a result the suit of the respondent Bank was decreed as prayed far. 3. Before us, learned counsel for the appellants has firstly argued that a sum of Rs.1,02,354 has been claimed by the respondent Bank by way of liquidated damages. According to learned counsel for the appellants there is no basis whatsoever on the record nor has any justification been given in the plaint to burden the appellants with liability for payment of the aforesaid amount of Rs.1,02,354 as liquidated damages. Learned counsel for the Bank was asked to explain the basis for demanding the aforesaid amount. He was unable to justify the claim for liquidated damages. In this view of the matter, we find that the aforesaid sum of Rs.1,02,354 was wrongly awarded to the respondent Bank by…

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