MUHAMMAD SIDDIQ MIRZA vs STANDARD CHARTERED BANK LIMITED Ss — 2025 CLD 1 KARACHI-HIGH-COURT-SINDH

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MUHAMMAD SIDDIQ MIRZA VS STANDARD CHARTERED BANK LIMITED Ss.2(d) & 9---Suit for declaration etc. along with damages filed by customer against the Bank---Damages arising out of alleged tortious acts, claim of---Banking Court, jurisdiction of---Scope---Plea of the appellant (plaintiff /customer) was that the Bank had made an unlawful attempt to repossess the vehicle (auto finance facility) which was thrwarted but certain items, including jewellery, were removed from the vehicle causing him mental torture---Customer filed appeal as the Banking Court disposed of the case (returned the plaint), recording a finding that it lacked jurisdiction in the matter as the substance of the claim of damages did not fall within the parameters of the Financial Institutions (Recovery of Finances) Ordinance, 2001---Validity---Claim for pecuniary compensation could either arise from a tortuous act i.e. not based on any contract or a breach of a contractual obligation not pertaining to an accommodation or facility of finance as defined under S.2(d) of the Financial Institutions (Recovery of Finances) Ordinance, 2001 and for these two categories of claims obviously the Banking Court was not an appropriate forum ---However, a claim for pecuniary compensation could also arise in account of the failure of a Financial Institution to fulfill its obligation in relation to any financial accommodation or facility; it is this category of claim which certainly comes within the scope of S.9 of the Financial Institutions (Recovery of Finances) Ordinance, 2001, and a suit relating thereto is always maintainable before a Banking Court---Such claim being outside the ambit and preview of the Financial Institutions (Recovery of Finances) Ordinance, 2001, could have been struck out; then, the remaining claims could be proceeded for determination on merits---High Court, while setting aside impugned judgment, remanded the matter to the Banking Court for reconsideration and decision afresh---Appeal was allowed accordingly.

MUHAMMAD SIDDIQ MIRZA vs STANDARD CHARTERED BANK LIMITED Ss — 2025 CLD 1 KARACHI-HIGH-COURT-SINDH

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