UNITED BANK LTD. vs MUHAMMAD AMJAD HAYAT KHAN Ss — 2025 PLD 425 LAHORE-HIGH-COURT-LAHORE

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UNITED BANK LTD. VS MUHAMMAD AMJAD HAYAT KHAN Ss.3 (2), 19 & 22---Civil Procedure Code (V of 1908), S.47---Execution proceedings---Correction of decree---awarding of cost of funds---Executing Court, jurisdiction of---Suit for recovery was filed by respondent/plaintiff against appellant/bank on the ground that his amount was lying with appellant/bank and as the bank itself received mark-up of more than 13.50% therefore, he was also entitled to receive profit on that amount which was lying with the bank---Trial Court passed decree in favour of respondent/plaintiff to recover the amount along with cost of funds---appellant/bank filed application for revisiting judgment and decree to the extent of awarding Cost of funds, which application was dismissed by Trial Court---Validity---Cost of funds is basically the cost that a financial institution is entitled to recover from borrower on account of funds which as per terms of finance or the law ought to have been in the custody of a financial institution but happened to be in the custody of customer after default---Rationale of the same is that financial institution has been deprived from placing the funds somewhere else for its financial benefits which is the core business of financial institution---Questions relating to executability of an order or decree can be raised even in execution proceedings and it is open to the party against whom it is sought to be executed to show that it is null and void or had been made without jurisdiction or that it is incapable of execution---It is not for Executing Court to decide whether decree passed is legal or illegal or whether it is erroneous or not, but it is open to Executing Court to consider whether decree sought to be executed is void or not---any decree passed by any Court or forum is void if the Court or the fourm which passed it has no jurisdiction over the subject matter---Division Bench of High Court set aside the order passed by Executing Court, as the decree was not executable to the extent of award of cost of funds---appeal was allowed accordingly.

UNITED BANK LTD. vs MUHAMMAD AMJAD HAYAT KHAN Ss — 2025 PLD 425 LAHORE-HIGH-COURT-LAHORE

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