Supreme Court Rules Banks Cannot Claim Unclaimed Markup
The Supreme Court has ruled that a banking court cannot award markup that was not specifically claimed in the original … Read More The post Supreme Court Rules Banks Cannot Claim Unclaimed Markup appeared first on ProPakistani .
In a landmark decision, the Supreme Court has ruled that banks are not entitled to claim unclaimed markup that was not explicitly requested in the original legal document, overturning a prior ruling by the Lahore High Court. The three-judge bench, led by Justice Muhammad Ali Mazhar, emphasized that Section 152 of the Civil Procedure Code, which could be used to add unclaimed relief or alter the core rights of the parties, is inapplicable.
The case, which originated in the 1990s, involved Crescent Spinning Mills borrowing money from Citibank but failing to repay the debt. Citibank filed a claim for the principal amount, along with liquidated damages at an annual rate of 19 percent, but the trial court dismissed the liquidated damages claim. Citibank subsequently sought to include the markup in the decree after recovery, an attempt the Supreme Court rejected, stating that a court cannot grant relief not initially claimed in the original plaint.
The court emphasized that a request for "any other relief" does not automatically grant an unclaimed remedy. The Supreme Court transformed the initial petition into an appeal, thereby nullifying the Lahore High Court's and banking court's orders that permitted the additional markup through the amended decree.
Written by urgent.news from ProPakistani's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
