Mirza SHAHID BAIG vs NATIONAL BANK OF PAKISTAN and 8 others
This execution first appeal was filed against the order of the Banking Court No. 5, Lahore, which directed the arrest of the appellant judgment-debtor to satisfy a decree obtained by the respondent National Bank of Pakistan. The core legal question was whether a banking court can order the arrest of a judgment-debtor before attempting to satisfy the decree through the sale of mortgaged or attached properties. The Lahore High Court partially allowed the appeal and modified the impugned order, holding that there was no justification for issuing warrants of arrest at this stage. The Court laid down the principle that a decree-holder bank must first attempt to satisfy the decree through the sale of the properties mentioned in the Farad Taleeqa; personal execution against the judgment-debtor, such as arrest, should only be pursued if the sale proceeds are insufficient, or if the judgment-debtor actively impedes the sale or commits other prejudicial acts.
- Can a banking court order the arrest of a judgment-debtor before attempting to satisfy the decree through the sale of the attached properties?
- Under what circumstances is it proper for an executing court to proceed against a judgment-debtor personally through arrest?
- Does the failure to exhaust the remedy of selling mortgaged or attached properties invalidate an immediate warrant of arrest against a judgment-debtor?
ORDER
' This execution first appeal impugns the order. Dated 31-10-2001, passed by the learned Banking Court No,5, at Lahore. Through an execution petition, filed by the respondent decree-holder, it was prayed that the appellant Mirza Shahid Baig be arrested with the object of satisfying the decree obtained by the respondent-Bank. The learned Banking Court has, by means of a very cursory order, dated 31-10-2001, directed, among other things, that the appellant Mirza Shahid Baig be arrested.
2. We have heard both the learned counsel and, in particular, the learned counsel of the Judgment-debtor Bank. It is evident that the decree obtained by the respondent-Bank is to be satisfied through sale of the properties mentioned in the Farad Taleeqa. The Banking Court should, in the first instance, attempt to sell the said properties and only in the event the sale proceeds are not sufficient to satisfy the decree, or the judgment-debtor impedes the sale or commits other prejudicial acts that it would be proper to proceed against the judgment-debtors personally. In this view of the matter, we would modify the impugned order and hold that there was no justification on 31-10-2001, for issuing warrants of arrest against the appellant Mirza Shahid Baig.
' This appeal is partially allowed in the above terms. revisions by the competent authorities. Therefore, it is advisable to consult the official sources or legal professionals for the most up-to-date and accurate information.
Cited by 7 cases
- Ghulam Shabbir vs Mst. Tanzeela Nusrat etc. 2023 LHC 4866, 2024 PLJ Lahore 82, 2023 CLC 2169
- Atta Muhammad vs Zarai Taraqiati Bank LTD. through Manager 2023 CLD 1468
- Atta Muhammad vs Zarai Taraqiati Bank Ltd 2023 LHC 3392
- Muhammad Shahbaz Sharif vs Meezan Bank Limited and others 2019 CLD
- MUHAMMAD SHAHBAZ SHARIF Versus MEEZAN BANK LIMITED 2019 CLD 729
- AL-KARAM TEXTILE MILLS LTD. through Duly Authorized officer vs MEHTAB 2007 CLD 1044
- BASHIR AHMAD vs JUDGE BANKING COURT-I, GUJRANWALA DIVISION 2005 CLD 1728