Law: Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997

Section: 9

Law: Constitution of Pakistan, 1973

Section: 199,203G

(a) Islamic Law Financing in Islam Contractual obligation Charging of interest Legality Petitioner obtained loan from the respondent Bank and a suit for recovery of the loan was pending before the Banking Court Plea raised by the petitioner was that charging of interest was un Islamic and the same could not be recovered ¬Validity Where the petitioner executed some charge documents favouring Bank and he had entered into agreement with his free¬ will, he under the Islamic norms of justice, was bound to fulfil the contractual obligations and commitments undertaken by him through execution of those documents. Messrs Momin Motor Company v. The Regional Transport Authority, Dacca and others PLD 1962 SC 108 and Muhammad Mumtaz Masud and 2 others v. House Building Finance Corporation and 2 others 1994 SCMR 2287 ref. (b) Constitution of Pakistan (1973) Arts. 199 & 203 G Constitutional petition Constitutional jurisdiction of High Court Scope Charging of interest Declaring the same as un Islamic High Court, in view of Art. 203 G of the Constitution has no power or jurisdiction, to determine the charging of interest as un Islamic moreover, past and closed transaction cannot be re opened. Muhammad Ramzan v. Citibank 2001 CLC 158 and Dr. Muhammad Aslam Khaki v. Syed Muhammad Hashim and 2 others PLD 2000 SC 225 ref. (c) Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997)--S.9 Constitution of Pakistan (1973), Art. 199 Constitutional petition Maintainability Alternate remedy Grievance of the petitioner was regarding charging of interest on Bank loan Validity Petitioner had alternate remedy to file suit against the respondent-- Bank under S.9 of the Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997 High Court declined to exercise Constitutional jurisdiction in favour of the petitioner Constitutional petition was dismissed in circumstances. Dr. Mahmood ur Rahman Faisal and others v. Secretary, Ministry of Law, Justice and Parliamentary Affairs, Government of Pakistan, Islamabad, and others PLD 1992 FSC 1; Syed Anwar ul Hussain v. District Manager, Small Business Finance Corporation Branch, Vehari and 2 others…

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