| Citation(s) |
|---|
| 2025 SLG 1442 2025 SLD 1442 = 2025 SCP 206 = 2026 SCMR 533 |
Civil Appeal No.164 of 2025 (On appeal against the judgment dated 13.01.2025 of the Lahore High Court, Lahore passed in RFA No.116017 of 2017)
Justice Naeem Akhter Afghan Justice Muhammad Shafi Siddiqui Justice Shakeel Ahmad
For the Appellant : Mr. Salman Aslam Butt, Sr. ASC Syed Rifaqat Hussain Shah, AOR For the
Respondent Nos. 1 to 4 : Mr. Muhammad Imran Malik, ASC For the
Respondent Nos. 5 & 6 : Nemo Date of Hearing : 23.04.2025
MCB Bank Limited .... Appellant
VERSUS
Uzma Tehreem & others .... Respondents
Law: Financial Institutions (Recovery of Finances) Ordinance, 2001
Section: 9,10,22(1), 3
Law: Contract Act (IX of 1872)
Section: 133
Summary
This judgment concerns a financial dispute involving Tanveer Weavings (Private) Limited and its directors (Respondents 1–4) and the successor bank, MCB Limited (formerly NIB Bank, which had merged with PICIC Commercial Bank). The case centers on a series of running finance (RF) facilities initially granted by PICIC Commercial Bank, their subsequent renewals, defaults in repayment, and the restructuring of the outstanding liability into a term loan (TL). After persistent defaults, the bank filed a recovery suit under the Financial Institutions (Recovery of Finances) Ordinance, 2001. The Lahore High Court (LHC) decreed the suit in the bank’s favor; the respondents appealed, and the appellate court granted leave to defend only to Respondent No. 1, leading to the current appeal by MCB Limited.
Core Points
Finance Facility and Default:
Tanveer Weavings (Pvt) Ltd. received multiple RF facilities from PICIC Commercial Bank (later NIB Bank, now MCB Limited), which were repeatedly renewed and enhanced. The company and its directors furnished various securities and guarantees. Despite these, they defaulted on repayments.
Restructuring and Continued Default:
The outstanding liability was restructured into a term loan in 2009, but the respondents continued to default, prompting the bank to file a recovery suit in 2013 for over Rs. 108 million.