MUHAMMAD MUMTAZ MASUD Versus HOUSE BUILDING FINANCE CORPORATION

1. WALI MUHAMMAD KHAN, J.‑‑ ‑Muhammad Mumtaz Masud and others, petitioners herein, seek leave to appeal against the judgment of the Lahore High Court dated 27‑7‑1992 whereby their Intra‑Court Appeal No. 114/92 against the judgment of a learned Single Judge dated 15‑3‑1992 in Writ Petition No. 2835/86 challenging the recovery of interest from them by the House Building Finance Corporation, respondent herein, was dismissed.

2. We have heard Raja Abdul Ghafoor, Advocate, for the petitioners and have perused the record of the case.

3. The grievance of the petitioners before the lower forums as well as before this Court is that in view of the judgment of the Federal Shariat Court reported as Dr. Mahmood‑ur‑Rehman Faisal and others v. Secretary, Ministry of Law, Justice and Parliamentary Affairs, Government of Pakistan, Islamabad and others (PLD 1992 Federal Shariat Court page 1) declaring interest as prohibited, being repugnant to the Injunction of Islam, they are not required to pay interest on the loan secured by them from the respondent and muchless compound interest. The judgment of the Federal Shariat Court has not yet attained finality as appeal against it is pending disposal before the Shariat Appellate Bench of this Court. The petitioners secured the loan in question under a written agreement and are bound by the terms of the said agreement. There is no legal error in the discretion exercised by the lower forums in declining to issue the writ prayed for.

4. Leave to appeal is, accordingly, refused and the petition is dismissed.

5. A.A./M‑1984/S Leave refused.