ASKARI BANK LIMITED vs KHAWAJA FLAT GLASS INDUSTRIES (PRIVATE) LIMITED S

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ASKARI BANK LIMITED VS KHAWAJA FLAT GLASS INDUSTRIES (PRIVATE) LIMITED S. 19---Financial Institutions (Recovery of Finances) Rules, 2018, Rr. 3 & 4---Civil Procedure Code (V of 1908), O. XXI, R. 1---Execution proceedings---Commercial/Banking disputes---Long-standing recovery of debt liability and complex legal problems, resolving of---Revival/restructuring of the judgment-debtor (Company)---Legal heuristic approach, adopting of---Scope---The heuristic approach is a legal framework for solving legal problems that has been developed with the judicial anthology of the "Five R's" methodology i.e. (1) Recovery; (2) Restructure; (3) Renewal/Revival; (4) Resurrection; and (5) Resolution through mediation---Said methodology is based on practical experience, knowledge, and quick fixes to resolve debt recovery issues in a timely manner---Where the debt is substantially disputed, then to continue with the winding up proceedings would be an abuse of process of the court---Thus, in the present case, the approach of revival/restructuring of the Company was being adopted---Since the situation had been changed after the decree of the suit, the decree-holder/banks had shown their willingness to restructure the debts of the Company---In view of the scheme of arrangement, restructuring plan, joint statement and other documents submitted by the parties and the interest of the creditors, contributors and public, there appeared to be no other option but to revive/restructure the Company---High Court directed all parties to work together (by convening a meeting etc.) to discuss and finalize a mutually agreeable restructuring plan and they (parties) shall work towards finalizing the restructuring plan and scheme of arrangement in line with the intentions expressed before the High Court---High Court had adopted a heuristic legal approach to facilitate the restructuring of the judgment-debtor/ company, however, in the event of failure to achieve a resolution, the Court shall proceed with the auction of the mortgaged properties to ensure expeditious recovery of the outstanding liabilities, without any further delay---Order accordingly. Citation Name: 2025 CLD 1176 LAHORE-HIGH-COURT-LAHOREBookmark this Case ASKARI BANK LIMITED VS KHAWAJA FLAT GLASS INDUSTRIES (PRIVATE) LIMITED Ss.9 & 19---Commercial / Banking disputes---Legal heuristic approach---Scope---Long-standing recovery of debt liability and complex legal problems, resolving of---Revival/restructuring of the judgment-debtor (Company/Customer)---Exercise to resolve the issues of long-standing recovery of debt liability and complex legal problems to achieve purposive justice in execution petition(s) may be accomplished through a legal heuristic approach, which provides three general perspectives in law i.e. purposiveness, justice and legal certainty under the prevailing laws---In said approach, the Court acts as loco parentis taking on a protective and supervisory role to ensure the proper resolution of the commercial and banking debt disputes, while safeguarding the rights and interests of all the parties involved---The heuristic approach is a legal framework for solving legal problems that has been developed with the judicial anthology of the "Five R's" methodology i.e. (1) Recovery; (2) Restructure; (3) Renewal/Revival; (4) Resurrection; and (5) Resolution through mediation---In developing countries like Pakistan, the judicial forums should provide opportunities to the sick industries to revive and to restart their business at full pace and to pay off and settle their debts and other liabilities, especially when the banks are also willing to do so and have no objection to do so in this regard.

ASKARI BANK LIMITED vs KHAWAJA FLAT GLASS INDUSTRIES (PRIVATE) LIMITED S — 2025 CLD 1176 LAHORE-HIGH-COURT-LAHORE

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