HAMID MEHMOOD SHAH KHAGGA vs BANK AL-FALAH LIMITED S — 2023 CLD 1464 LAHORE-HIGH-COURT-LAHORE

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HAMID MEHMOOD SHAH KHAGGA VS BANK AL-FALAH LIMITED S. 9---Civil Procedure Code (V of 1908), O. VII, R. 10---Suit for damages against the Bank---Civil Court, jurisdiction of---Relationship between the Bank and customer, question of---Suit for damages against the bank was filed before the Civil Court---Civil Court returned the plaint holding that the claim of the plaintiff fell within the jurisdiction of the Banking Court constituted under Financial Institutions (Recovery of Finances) Ordinance, 2001 ('the Ordinance 2001')---Contention of the appellant/plaintiff was that suit filed by him did not fall within the jurisdiction of the Banking Court constituted under the Ordinance 2001, since no finance was extended by the respondent/bank and as such, the appellant/plaintiff did not fall in the definition of 'customer' as stipulated in the Ordinance, 2001---Validity---Admittedly, the Finance Facility requested to the respondent/Bank by the appellant/plaintiff did not culminate into contractual relationship through execution of Agreement of Financing and no amount was disbursed to the appellant/plaintiff by the respondent/Bank; and there was only an approval letter---Appellant/plaintiff had pleaded in the plaint that in compliance of the said approval letter, he had to take certain steps which resulted in financial loss to him---Contents of the plaint/prayer clause primarily focused on non-disbursement of the Financial facility, and on account of losses suffered by the appellant/plaintiff, he sought damages from the respondent/Bank---Suit was competently filed by the appellant before the Civil Court of ordinary jurisdiction as the relationship of 'customer' with the Bank with reference to 'finance' would have been/was established only when the Agreement of financing had been duly executed between the parties and the Finance Facility had been duly disbursed, whereas the said elements were lacking in the present case---Hence, the Civil Court fell in error to hold that it did not have jurisdiction to entertain and adjudicate upon the suit on its own merits---High Court set-aside impugned order of returning of plaint to the appellant and directed the parties to appear before the Civil Court---First Appeal against Order filed by the plaintiff was allowed, in circumstances.

HAMID MEHMOOD SHAH KHAGGA vs BANK AL-FALAH LIMITED S — 2023 CLD 1464 LAHORE-HIGH-COURT-LAHORE

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