PESHAWAR, May 5: A Peshawar High Court bench on Thursday adjourned hearing in an appeal filed by the Habib Bank challenging an order of the Peshawar Banking Court in favour of former National Assembly speaker Gohar Ayub Khan. The Banking Court had ordered the bank to refund Rs5 million to Mr Khan, which he had deposited with the principal amount of Rs4.5 million in 1993 to qualify for contesting general election.

The PHC bench comprising Chief Justice Tariq Pervez and Justice Ijazul Hassan observed that the appeal would be referred to another bench as one of its members had extended legal opinion to Mr Khan as a counsel. Justice Pervez observed that when his opinion was sought at the time by Mr Khan, he had advised the former speaker to deposit the amount. He observed that he could not hear the appeal in the situation.

The bank’s lawyer Abdur Rauf contended that the order of the banking judge was against the law. He said Mr Khan was not forced to pay the money and he paid it only to contest the election.

An industry of Mr Khan, the Rehana Woollen Mills at Haripur, had acquired a loan from the Habib Bank, Haripur. Before the 1993 election amendments were made to the Representation of Peoples Act, following which a defaulter who owed more than Rs1 million rupees to any institution was barred from contesting the polls.

A list issued by the Pakistan Banking Council in this regard carried the name of Mr Khan. To qualify for contesting the polls, Mr Khan approached the bank for voluntary repayment of the loan and requested redemption of his mortgaged properties. The documents of the properties were handed over to him and he paid Rs9.544 million to the bank on Sept 5, 1993. He contested the polls and returned as an MNA.

Later, Mr Khan filed a suit before the Banking Court, seeking refund of the amount. He stated that he had paid the money under coercion and pressure by the bank. The Banking Court ruled that the bank was only entitled to receive Rs4.5 million. It ruled that Mr Khan was entitled to refund of Rs5 million. The HBL approached the high court, stating that Mr Khan had paid the amount voluntarily and not under coercion.—Bureau