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JS BANK LIMITED, KARACHI vs PROVINCE OF PUNJAB through Secretary Food, Lahore Creditors — 2021 SCMR 1617 SUPREME-COURT

Case information

Citation
2021 SCMR 1617 SUPREME-COURT
Court
Supreme Court of Pakistan
Year
2021
Reporter
SCMR
Parties
JS BANK LIMITED, KARACHI vs PROVINCE OF PUNJAB through Secretary Food, Lahore Creditors
Subject matter
Criminal

Fields are extracted from the reported citation and judgment text. Where a detail is not stated in the record, it is not shown.

Judgment text as reported

JS BANK LIMITED, KARACHI VS PROVINCE OF PUNJAB through Secretary Food, Lahore Creditors---Preference---Statutory First Charge, principle of---Scope---Statutory First Charge ('SFC') was created by the operation of a provision in a legislation that granted preference to the holder of the SFC over all other creditors, including secured creditors, holding any form of security---Such SFC's derived their authority through the statute which was the precise reason why the court could not interfere in granting secured creditors rights over parties holding SFC's---Furthermore it was inconsequential if the (statutory) first charge was created prior or subsequent to the mortgage or lien of the secured creditor; it was also immaterial if the nature in the goods were changed---Statutory First Charge persevered as it attached itself onto the goods, travelled with them, and remained enforceable in a preferential manner against other secured creditors irrespective of the manner in which the goods were processed, sold, or pledged---Therefore, the SFC remained unfazed by whatever processing the goods underwent; it took precedence over all contractual liens and mortgages that may be claimed and its creation remained independent from the requirement of registration.

Other judgments reported in 2021 SCMR

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