September 30, 2008	Tuesday	Ramazan 29, 2008

PESHAWAR, Sept 29: The Peshawar High Court on Monday declared as legal the payment of Rs9.3 million by former National Assembly speaker Gohar Ayub Khan to a bank to qualify for contesting the 1993 general elections.

A two-member bench comprising Justice Jehanzeb Raheem and Justice Syed Yahya Zahid Gillani accepted an appeal filed by Habib Bank Limited Haripur Branch and set aside a decree of the Peshawar banking court through which the bank was ordered to refund an amount of Rs5 million to Mr Khan, which he had deposited along with the principal amount of Rs4.5 million as mark-up.

Advocate Abdur Rauf Rohaila appeared for the bank and contended that the order of the banking judge was against the law. He added that Mr Khan was not forced to pay the money and he paid it only to contest the polls.

Mr Rohaila argued that the amount outstanding against Mr Khan could only be challenged prior to payment of the said dues whereas Mr Khan challenged it after payment of amount. He added that on the basis of the said payment Mr Khan was allowed to contest polls.

According to facts of the case, the industry of Mr Khan, Rehana Woollen Mills at Haripur, had acquired a loan facility from the Habib Bank Limited, Haripur. At the time of general elections in 1993 amendments were made in the Representation of Peoples Act following which a defaulter who owed more than one million rupees to any of the financial institution was barred from contesting polls.

The list issued by the Pakistan Banking Council also carried the name of Mr Khan. To qualify for contesting polls, Mr Khan approached the bank for voluntary return and requested for redemption of his properties mortgaged with the bank after which the properties documents were handed over to him.

On Sept 5, 1993, Mr Khan paid an amount of Rs9.544 million to the bank and thus contested the polls and returned as an MNA.

Later on, Mr Khan filed a suit before the banking court seeking refund of the said amount.

He stated that he had paid the money under coercion and under pressure by the bank.

After hearing the parties, the banking court in 2005 ruled that the bank was only entitled to receive the amount of Rs4.5 million. It was ruled that Mr Khan was entitled to the refund of Rs5 million by the bank.

Aggrieved with that order of the court the HBL approached the high court, stating that Mr Khan had paid the said amount voluntarily and was not under coercion.