LAHORE: A banking customer has secured his right of declaration, rendition of accounts, recovery, damages and injunction against an auto-finance facility from banking court, which had refused to take his case on the plea that it lacks jurisdiction on matters related to tort.
According to details, the customer had filed a suit stating that an auto-finance facility had been obtained by him from the bank in respect of a motor vehicle.
On account of the said vehicle, he had made all repayments over the five years period of the finance but the bank failed to respond to his application for no objection certificate/letter of purpose of transfer of vehicle upon completion of the tenure.
Instead, he maintained that the bank had made an unlawful attempt to repossess the vehicle through its agents which was thwarted by him. But certain personal items and jewellery worth Rs500,000 were removed from the vehicle.
Accordingly, he filed a suit on account of damages for breach of contract as well as mental torture, and recovery of such items. He sought a declaration that the officials of the bank had failed to discharge their obligation to protect his life, liberty and property.
Another declaration was sought regarding repayment of complete rentals; therefore, the bank should issue NOC and perform other actions which are required for effectual discharge of contractual obligation in respect of the vehicle in dispute.
Furthermore, damages were also sought besides a restraining order for the future. The bank challenged the jurisdiction of the banking court to entertain the suit. The banking court responded in negative and maintained that no further discussion is required on the rest of the issues.
Being aggrieved, the customer challenged the banking court order at the higher appellate forum which remanded the case to the banking court with an order that such claims as were considered to fall outside the ambit and purview of the Financial Institutions (Recovery of Finances) Ordinance, 2001, could have been struck out, with the remaining claims then be proceeded for determination on merits.
LAHORE: A banking customer has secured his right of declaration, rendition of accounts, recovery, damages and injunction against an auto-finance facility from banking court, which had refused to take his case on the plea that it lacks jurisdiction on matters related to tort.
According to details, the customer had filed a suit stating that an auto-finance facility had been obtained by him from the bank in respect of a motor vehicle.
On account of the said vehicle, he had made all repayments over the five years period of the finance but the bank failed to respond to his application for no objection certificate/letter of purpose of transfer of vehicle upon completion of the tenure.
Instead, he maintained that the bank had made an unlawful attempt to repossess the vehicle through its agents which was thwarted by him. But certain personal items and jewellery worth Rs500,000 were removed from the vehicle.
Accordingly, he filed a suit on account of damages for breach of contract as well as mental torture, and recovery of such items. He sought a declaration that the officials of the bank had failed to discharge their obligation to protect his life, liberty and property.
Another declaration was sought regarding repayment of complete rentals; therefore, the bank should issue NOC and perform other actions which are required for effectual discharge of contractual obligation in respect of the vehicle in dispute.
Furthermore, damages were also sought besides a restraining order for the future. The bank challenged the jurisdiction of the banking court to entertain the suit. The banking court responded in negative and maintained that no further discussion is required on the rest of the issues.
Being aggrieved, the customer challenged the banking court order at the higher appellate forum which remanded the case to the banking court with an order that such claims as were considered to fall outside the ambit and purview of the Financial Institutions (Recovery of Finances) Ordinance, 2001, could have been struck out, with the remaining claims then be proceeded for determination on merits.
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