2020 LHC 695 Judgment Section 25A of Banking Companies Ordinance
M/s Talon Sports (Pvt.) Limited, Sialkot Versus The State Bank of Pakistan, Lahore & others
J U D G M E N T
MUHAMMAD SAJID MEHMOOD SETHI, J.: Through instant petition, petitioner has challenged the vires of actions of respondents taken under Section 25A of the Banking Companies Ordinance, 1962 (“the Ordinance of 1962”) and sought direction for
respondents to remove its name from the Electronic Credit Information Bureau (“eCIB”).
- Brief facts of the case are that respondent No.2 / Standard Chartered Bank instituted a suit i.e. C.O.S. No.16/2014 for recovery of amount against petitioner before this Court under the provisions of the Financial Institutions (Recovery of Finances) Ordinance, 2001 (“the Ordinance of 2001”). Meanwhile, petitioner and respondent No.2 reached an amicable settlement after negotiations,discussions and reconciliation of accounts and record, and Writ Petition No. 5517 of 2019
2 accordingly a Settlement Agreement dated 29.09.2016 was executed. In terms of said agreement, pending litigation also came
to an end. Subsequently, SCB reported the name of petitioner to SBP for its placement in eCIB, allegedly without determination of liability against petitioner. Petitioner applied for financial assistance from National Bank of Pakistan on 01.02.2017 and at that time no amount was reflecting on eCIB against Overdue and Write Off columns. However, subsequently on 08.08.2018, an amount of Rs.196.50 Million appeared on eCIB against Writes Off column, hence, petitioner could not get financial assistance from any bank. Petitioner repeatedly approached respondent No.2 to communicate with SBP but needful was not done. Hence, instant petition. Download Judgment