Borrowers vs State Bank of Pakistan and Others
This matter concerns the recovery of loans that have been written off, involving borrowers and the State Bank of Pakistan. The Supreme Court of Pakistan addressed the procedural status of these outstanding loan recovery cases, specifically regarding the options previously extended by the Court to the borrowers for settlement. The core legal question before the Court was the timeline for borrowers to accept the Court's proposed settlement option and the consequences of failing to do so. The Court held that borrowers must communicate their acceptance of the provided option by the specified deadline of 17.7.2018. The Court explicitly ruled that no options would be accepted after this date. Furthermore, the Court established the principle that upon the expiration of this deadline, it would proceed to issue formal orders regarding the recovery process and determine the specific legal mechanisms for addressing these outstanding matters. This order serves as a final opportunity for the borrowers to comply before the Court initiates coercive recovery proceedings or alternative legal processes to resolve the liabilities.
- Is there a deadline for borrowers to accept a court-offered settlement option regarding written-off loans?
- What are the consequences for borrowers who fail to accept the court's settlement option by the specified date?
1. Learned counsel for the borrowers (the ones whose loans have been written off) seek time to consult their clients about accepting the option given by this Court. Let the needful be done by 17.7.2 018 which acceptance shall be submitted in the office. No option shall be accepted after 17.7.2018. After such date, the Court will pass an order for the recovery of or initiation of the process as to how these matters have to be dealt with. Re-list thereafter