KARACHI: High Court stops disposal of mortgaged property
KARACHI, March 1: Justice Zahid Kurban Alavi of the Sindh High Court has directed the Allied Bank Ltd not to take any further action towards disposal of the mortgaged property of N. Y. Oil Mills (Pvt) Ltd, Karachi.
The judge gave the directive while adjourning the hearing to March 20 of a suit filed by N. Y. Oil Mills, seeking a stay of the proposed sale of the mortgaged property, pending disposal of the suit.
During the hearing, Bashir Ahmed Rana, law officer of the ABL, sought time to engage a lawyer on behalf of the bank, which the court allowed.
Nafees Siddiqui, counsel for N. Y. Oil Mills, submitted that the bank had failed to establish default in payment by his client. He contended that the amount claimed by the bank was undetermined and unadjudicated and as such its non-payment should not amount to default within the meaning of sub-section 2 of section 15 of the Financial Institutions (Recovery of Finances) Ordinance 2001.
He further submitted that the proposed sale of the mortgaged property was not in conformity with and within the parameters prescribed under section 15 (4) of the Financial Institutions (Recovery of Finances) Ordinance 2001. — PPI
