20 November 2004	Saturday	07 Shawwal 1425

PESHAWAR, Nov 19: The Peshawar High Court on Thursday admitted for hearing three writ petitions filed by the Bank of Khyber against decisions of State Bank committee in favour of three industrial firms belonging to political families.

The petitions were filed against the decisions taken by the committee, constituted for irrecoverable loans, in cases of the Imala Ghee Mills, the Afghan Ghee Mills and the Sunny Enterprises, a pharmaceutical firm.

The firms belong to the families of former National Assembly member Haji Naseemur Rehman, ex-federal minister Syed Qasim Shah and National Awami Party leader Sarwar Mohmand.

The bank stated that the committee had overstepped its powers while entertaining the cases which did not fall in the 'guidelines for writing offirrecoverable loans' given in circular No.29 of 2002.

The petitioner stated that the committee had waived the mark-up and even written off a portion of the principal amount in the cases. The amounts mentioned in the decisions of the committee for payment by the firms were much less than the amount acquired by those, the petitioner stated.

It contended that the amount outstanding against the firms could be easily recovered from the properties mortgaged and assets of the guarantors. A division bench comprising Justice Malik Hamid Saeed and Justice Ijazul Hassan observed that an appeal of almost identical nature against a judgment of the banking judge had been admitted for hearing, therefore the petitions were also admitted.

The bench also took up an appeal filed by the bank against a judgment of the banking judge delivered on March 29, in the case of the Sunny Enterprises. In the appeal, the bank has challenged the judgment given in the light of the decision taken by the committee.

Advocate Qaiser Rasheed is representing the bank in the main appeal and M. Sardar Khan and Aamir Jawed are representing it in the writ petitions. Advocate Hidayatullah, appearing for the Sunny Enterprises, sought time for preparing the case.

As Sardar Khan was also busy in the Supreme Court, the bench adjourned the hearing till Dec 1 of the appeal and the petitions. When the bench inquired from the counsel about the settlement of the issue out of court, Bank of Khyber Executive Vice-President Qazi Muneerul Haq said his bank was ready to settle the issue if the defaulting firms agreed to pay the principal amount.

He said the defaulters were not willing to pay the principal amount. He said the committee's decisions would inflict huge loss on the bank. Mr Rasheed contended that the firms belonged to influential figures.

He said the amount outstanding against the Sunny Enterprises was Rs59.192 million. He said the committee was informed in its maiden meeting on Aug 13, 2003, that the amount could be recovered through the sale of the mortgaged properties and by invoking the personal guarantees of Sarwar Mohmand and his wife Dr Sultana Sarwar. He said the committee wrote off Rs9.31 million in the principal amount and waived Rs18.889 million mark-up.