KARACHI: HBL asked not to release papers to mortgager
By Our Reporter
KARACHI, July 28: A division bench of the Sindh High Court has ordered Habib Bank to maintain status quo and directed it not to release the documents of mortgage property to mortgagor Dr Arshad Malik.
The bench comprised Justice Ataur Rahman and Justice Afzal Soomro.
The order was passed in an appeal filed by Chaudhry Mohammed Ashraf, a guarantor/judgment debtor of the HBL, and a partnership firm, M/s Dolphin Auto Industries, in which the appellants had challenged the encashment of a cheque for Rs3,339,765 which pertained to partnership firm Dolphin Auto Industries and its partners.
When the matter came up before Justice Rahman and Justice Soomro, Tasawwar Ali Hashmi and Sarwar Shahid, advocates, filed vakalat nama on behalf of the HBL.
The cheque was encashed against an HBL’s incentive scheme on the direction of the Banking Court No 1 at Karachi which dismissed the petition under Order 21 Rule 58 CPC filed by the partnership firm, M/s Dolphin Auto Industries.
Advocates Saalim Salam Ansari and Malik Nasir Mehmood, counsel for the appellants, contended that the Banking Court No 1 at Karachi, without holding an inquiry and any investigation, had dismissed the petition under Order 21, Rule 58 CPC, filed by the appellant No 2 and passed the order to release the cheque which did not pertain to the judgment debtor, Chaudhry Mohammed Ashraf, only.
It also pertained to others, who are a partnership firm and another partner, Ahmed Shuja Pasha, who are not the judgment debtors before the Banking Court No 1 at Karachi.
The counsel further contended that the partnership firm and its partners Chaudhry Mohammed Ashraf and Ahmed Shuja Pasha obtained the cheque in an execution proceeding from the Nazir of the Sindh High Court and the cheque’s amount pertained to a decree which was a result of a civil suit before the SHC filed by the partnership firm and its partners against some of the defendants.
The HBL had filed a suit and obtained a decree against one of the partners and another person as well as Dr Arshad Malik, the mortgagor. The petition, under Order 21 Rule 58 CPC, was filed by the appellant No 2, the partnership firm, which was dismissed by the Banking Court
No 1.
Status quo has been also granted as the appellant had applied to restrain the HBL from releasing the mortgaged property of Dr Malik as the Banking Court No 1 at Karachi had passed the mortgage decree in favour of the HBL against his mortgage property.
