BASHIR AHMAD BHATTI vs ALBARAKA BANK PAKISTAN LTD — 2025 CLD 615 LAHORE-HIGH-COURT-LAHORE

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BASHIR AHMAD BHATTI VS ALBARAKA BANK PAKISTAN LTD. S. 15 [as amended through Financial Institutions (Recovery of Finances) Amendment Act (XXXVIII of 2016]---Auction proceedings---Objection raised, rejection of---Sale of mortgaged property, confirmation of---Single bid---Effect---Appeal was filed against dismissal of objection to auction and confirmation of auction sale of mortgaged property ('the auction sale in question')---Validity---Acceptance of single bid in an auction sale, without any competitive bid, is antithesis to the claim and concept of public auction(s)---High / Appellate Court set-aside the order of confirmation of auction sale in question ( dated 04.09.2013), being not sustainable, declaring the same as illegal ; the appellant was at liberty to initiate proceedings seeking restitution/reversal of the actions enforced and steps taken pursuant to the order of confirmation of auction sale---Appeal was allowed accordingly. Citation Name: 2025 CLD 615 LAHORE-HIGH-COURT-LAHOREBookmark this Case BASHIR AHMAD BHATTI VS ALBARAKA BANK PAKISTAN LTD. S. 15 [as amended through Financial Institutions (Recovery of Finances) Amendment Act (XXXVIII of 2016]---Financial Institutions (Recovery of Finances) Rules, 2018, R. 3(c) (iv)---Auction proceedings---Objection raised, rejection of---Sale of mortgaged property, confirmation of---Re-enactment of S. 15 of the Financial Institutions (Recovery of Finances) Ordinance, 2001---Effect---Appeal was filed against dismissal of objection to auction and confirmation of auction sale of mortgaged property ('the auction sale in question)---Whether the auction sale in question could claim protection in terms of S. 15 of the Ordinance, 2001---Held, that S. 15 of the Ordinance, 2001 was amended through Financial Institutions (Recovery of Finances) Amendment Act, 2016, which also promulgated Financial Institutions (Recovery of Finances) Rules, 2018 ('the Rules, 2018')---Rule 3(c) (iv) of the Rules, 2018, permits considering single bids, subject to certain conditions---However, R.3(c)(iv) of the Rules, 2018 extends no protection to auction sale in question, as R. 3(c)(iv) of the Rules, 2018 was declared ultra vires in terms of the majority decision in the case of Muhammad Shoaib Arshad and another v. Federation of Pakistan through Secretary and 4 others reported as 2020 CLD 638---High / Appellate Court set-aside the order of confirmation of auction sale in question (dated 04.09.2013), being not sustainable, declaring the same as illegal ; the appellant was at liberty to initiate proceedings seeking restitution/reversal of the actions enforced and steps taken pursuant to the order of confirmation of auction sale---Appeal was allowed accordingly. Citation Name: 2025 CLD 615 LAHORE-HIGH-COURT-LAHOREBookmark this Case BASHIR AHMAD BHATTI VS ALBARAKA BANK PAKISTAN LTD. S. 15 [as amended through Financial Institutions (Recovery of Finances) Amendment Act (XXXVIII of 2016)]---Auction proceedings---Objection raised, rejection of---Sale of mortgaged property, confirmation of---Doctrine of prospective overruling---Appeal was filed against dismissal of objection to auction and confirmation of auction sale of mortgaged property ('the auction sale in question')---Submission of the appellant was that auction sale in question was carried out in terms of originally framed S. 15 of the Financial Institutions (Recovery of Finances) Ordinance, 2001 ('the Ordinance, 2001') before said section was re-enacted pursuant to the decision of Supreme Court in the case of National Bank of Pakistan v. SAF Textile Mills Ltd. and another reported as PLD 2014 Supreme Court 283 ('the SAF Textile Mills Case'), which provision of law was held ultra vires in the Constitution; that auction sale the present case was not immune from the effect of the 'SAF Textile Mills' Case'---Validity---Auction sale in question was carried out under the originally framed S. 15 of the Ordinance, 2001, which was declared ultra vires vide decision of 'SAF Textile Mills Ltd.' case, in which, evidently, Supreme Court had neither invoked nor applied the doctrine of prospective overruling - protecting past and closed transactions [auctions conducted in terms of S. 15 of the Ordinance, 2001] while declaring the law unconstitutional---Even otherwise, auction conducted did not become a past and closed transaction in wake of pendency of present appeal (pending since 2013 ) , against the order of dismissal of objections and confirmation of sale---High Court set-aside the order of confirmation of auction sale in question (dated 04.09.2013), being not sustainable, declaring the same as illegal ; the appellant was at liberty to initiate proceedings seeking restitution/reversal of the actions enforced and steps taken pursuant to the order of confirmation of auction sale---Appeal was allowed accordingly.

BASHIR AHMAD BHATTI vs ALBARAKA BANK PAKISTAN LTD — 2025 CLD 615 LAHORE-HIGH-COURT-LAHORE

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