Law:

Section:

Banking Tribunals Ordinance (LVIII of 1984)--- ----Ss. 6 & 9---Mark up---Entitlement to---Bank filed suit against borrowers for recovery of amount and other dues---Suit filed by Bank was not resisted by borrowers, but by an application they only requested for extension of time for payment of amount as claimed by Bank in suit and further requested that mark-up on amount be charged according to rules---Tribunal though decreed Bank's suit, but declined to allow Bank's claim for mark-up---Nothing could be spelt out from of Tribunal to indicate that claim for mark-up put forth by Bank was not in accordance with circular of State Bank---Claim of Bank with regard to mark-up having not been denied by borrowers, no clog was in the way of Tribunal to allow such claim in full---Observation of Tribunal that when payment was not forthcoming Bank should have instituted recovery proceedings against borrowers without wasting time, did not justify rejection of part of claim in respect of mark-up. JUDGMENT MAMOON KAZI, J: --The appellant has called in question the judgment of the learned Banking Tribunal for Sindh and Balochistan, dated 12-12-1988 whereby, although the suit filed by the appellant was decreed, but the claim of mark-up for Rs.1,309,006.60, was disallowed and instead mark-up for only 210 days was allowed. 2. The facts of the case, briefly stated, are that on 4-11-1982, an irrevocable confirmed letter of credit for DM 100,500.50 (equivalent to Pak. Rs.5,000,000) was established and advised in favour of M/s. Depaimex C.M.B.H. West. Germany, for import of three hydraulic pressers with essential parts and accessories. The letter of credit was to be on mark-up basis. Subsequently, in terms of the respondent's letter the appellant advised their foreign correspondents, Commerce Bank A.G. Frankfurt to amend and enhance the amount of credit from D.M. 100,500 to D.M. 201,392, with added specification of machinery. 3. On presentation of documents in terms of letter of credit the appellant paid the amount alongwith the relevant charges to their foreign correspondents, at the same time, intimating the respondents to retire the documents forthwith. 4. Thereafter, in spite of…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492