ISLAMABAD, Oct 21: A division bench of Islamabad High Court on Tuesday observed that some 80 per cent people have been suffering after obtaining loans from banks, whereas the remaining 20 per cent either get loans written off or rescheduled.

The bench comprising Chief Justice Sardar Mohammad Aslam and Justice Raja Saeed Akram was hearing the petition of Haris Steel Mills challenging the legality of a corruption reference against it by the National Accountability Bureau (NAB).

The court would take up the case on October 29.

The firm has been charged with defaulting on Rs9 billions to the Bank of Punjab. NAB has alleged that the company took loans from the bank showing fake assets and using corrupt practices. According to NAB, the land against which the HSM took loans was worth only Rs4.5 million contrary to the claim that its value was Rs20 billions.

Counsel for the company, Babar Awan argued before the court that his client did not default on the loan but had been paying the debt through installments that were settled under an agreement with the bank. It has already paid back Rs45 millions through 18 installments and is ready to pay the remaining amount.

He said section 31-D of NAB ordinance did not apply to the case, as this section can only become functional if the governor of the State Bank forwards a reference to NAB against someone.

He said the Securities and Exchange Commission of Pakistan has also not conducted any inquiry into the matter. The counsel prayed to the court to quash the proceeding against the company.

In another case, the chief justice of the court put off hearing in the petition of a resident of Mingora regarding the prevailing law and order situation in Sawat, observing the matter could not be taken up on an urgent basis as pleaded by the petitioner.