Law: Banking Companies Ordinance, 1962

Section: 25

Law: Constitution of Pakistan, 1973

Section: 185(3) & 199

(a) Banking Companies Ordinance (LVH of 1962)------S. 25---Constitution of Pakistan (1973), Arts.185(3) & 199---State Bank o1 Pakistan Circular No.BCD 22 dated 5-9-1977---State Bank of Pakistan Circular No.BCD 15, dated 3-7-1978---State Bank of Pakistan Circular No.BCD 6, dated 15-2-1981---Government of Pakistan Finance Division's Letter No.F.2(1)/CCI/22, dated 28-11-1977---Government of Pakistan Finance Division's Letter No.F.2(1)-CCI/77-366,dated 26-2-1978---"Fixed Industrial Investment" -"Financing fixed investment in hotel industry "---Leave to appeal to Supreme Court was granted to consider question as to whether under the State Bank of Pakistan Circular No.BCD 22 dated 5-9-1977 and No.BCD 6 dated 15-2-1981 petitioners were entitled to the reduced rate of interest on the loans obtained for financing the construction of Four Stars Standard Hotels; whether High Court was justified in denying to the petitioners the benefits of the State Bank of Pakistan Circulars Nos. BCD 22, dated 5-9-1977 and BCD 15 of 3-7-1978 on account of the clarification issued by State Bank of Pakistan vide its Circular No.BCD 6 dated 15-2-1981, on the ground that in the meanwhile the two circulars had not been acted upon; whether the petitioners could be denied the benefits of the two circulars of State Bank of Pakistan for the reason that the consortium Bank had failed to act upon the same, notwithstanding the fact that the petitioners had been continuously pressing their claims for reduced rate of interest against the Banks; whether the High Court was in error in holding that for the purpose of availing the benefit of reduced rate of interest, the relevant date was not the date of the loan agreement but the date on which actual disbursements were made; whether the petitioners had failed to establish that the loans were obtained by them for fixed industrial investment and were not meant for financial additional industrial capacity as stated in the Government of Pakistan Finance Division's Letter No.2(1)-CCI/77, dated 28-11-1977 and what was the legal effect of that letter and whether writ was not maintainable on account of the failure of petitioners to implead as parties to the…