TELENOR MICROFINANCE BANK LIMITED vs SHAMIM BANO S — 2023 CLD 1148 SUPREME-COURT

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

TELENOR MICROFINANCE BANK LIMITED VS SHAMIM BANO S. 6(1)---Civil Procedure Code (V of 1908), O. XXXVII, Rr.1 & 2---Negotiable Instruments Act (XXVI of 1881), Ss. 4 & 13---Microfinance institution/bank---Default in payment of loan---Promissory note integral part of finance agreement---Summary suits filed by the Bank before Trial Court on basis of promissory notes---Maintainability---High Court directed the petitioner-Bank to file civil suits for recovery in the plenary jurisdiction of the civil court instead of summary suits under Order XXXVII, C.P.C.---Validity---Trial Court and the Appellate Court both ignored the fact that the promissory note was an integral part of the finance agreement and a specific condition was incorporated in the finance agreement which expounded that the borrowers of the loan, being the customers and guarantors, solemnly declared that their signatures and thumb impression shall be deemed as the whole agreement or acceptance for all documents including but not limited to the finance agreement, promissory note, hypothecated goods, letter of pledge, MODT, authority of encashment, marking of lien and all relevant affidavits with regard to loan and authorized the bank to use each of them as part of the agreement under their relationship---Petitioner-bank rightly invoked the jurisdiction of the Court under the summary chapter on the strength of the promissory note which was printed in the finance agreement in a separate head---Concurrent finding recorded by the Courts below that the suits for recovery should have been filed in the plenary jurisdiction of the civil court rather than summary jurisdiction was misconceived and erroneous---Courts below only relied upon the finance agreement without adverting to its terms and conditions and the integral documents appended thereto and returned the plaint in a slipshod and injudicious manner---All the prerequisites required to be followed were fulfilled at the time of issuing the promissory notes and the summary suits were rightly filed under the summary chapter---Petitions for leave to appeal were converted into appeals and allowed.

TELENOR MICROFINANCE BANK LIMITED vs SHAMIM BANO S — 2023 CLD 1148 SUPREME-COURT

Case information

Judgment text as reported

Other judgments reported in 2023 CLD