Law: Prudential Regulations for Consumer Financing (State Bank of Pakistan)

Section: 6,14

Law: Constitution of Pakistan, 1973

Section: 199

Prudential Regulations for Consumer Financing (State Bank of Pakistan)--- ----Reglns. 6 & 14---Constitution of Pakistan, Art.199---Constitutional petition---Consumer financing---Auto-finance---Termination of loan---Consumer impugned actions of respondent Bank whereby his car finance loan was terminated a few months after the disbursement of the loan, and he was asked to pay an amount for delivery of the vehicle to the petitioner---Contention of the petitioner was that the action of the respondent (Bank) was in violation of the Prudential Regulations for Consumer finance issued by the State Bank of Pakistan---Validity---Termination of auto-lease was effected without notice and without the case of the petitioner incurring classification under Regln.14 of the said Prudential Regulations for Consumer Finance (State Bank of Pakistan)---Termination letter was not preceded by any notice in terms of Regln.6 of the Prudential Regulations for Consumer Finance (State Bank of Pakistan) and the specific default period of 90 days as per the said Regulations, was not attracted to the present case and the repossession of the vehicle was therefore contrary to the said Regulations---Conduct of the respondent bank also had an element of mala fide and coercion and there was a failure of the respondent Bank to confront the petitioner with his specific default and with the means to cure the same---High Court directed the State Bank of Pakistan to probe the transactions and dealing of the respondent Bank in order to determine a suitable compensation for the petitioner and to take appropriate action against the respondent Bank---Constitutional petition was disposed of accordingly. Ms. Safina Aslam and others v. Muslim Commercial Bank and another 2011 CLD 18 ref. ORDER UMAR ATA BANDIAL, C J.---Learned counsel for the petitioner has made submissions in aid of this petition and refers to the order of the .Court dated 21-1-2009. The contents of the said order relevant for the present purposes are reproduced below: "On 5-1-2006 the respondent bank issued a pay order in favour of the manufacturer of the vehicle in the amount of Rs.8,79,000/- out of which Rs.87,900/- was already taken as…

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