SALMAN CAPITAL INVESTMENTS (PVT.) LIMITED vs HABIB BANK LIMITED S — 2026 CLD 292 KARACHI-HIGH-COURT-SINDH

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SALMAN CAPITAL INVESTMENTS (PVT.) LIMITED VS HABIB BANK LIMITED S. 9---Suit for recovery of damages filed by the customer---Sale of pledged securities by Bank---Act(s) of Bank---Mala fide alleged against Bank---Scope---Banking Court dismissed the suit for recovery of damages filed by customer / company (appellant) for want of cause of action---Appellant availed a finance facility and in order to secure the financing, had pledged shares /securities, which were, after receiving permission from customer in wake of notice, sold by the Bank ; against said act (sale) the appellant filed suit for recovery of damages---Plea of the appellant/plaintiff was that the act of the bank was rooted in mala fide as that the bank did not act diligently in disposing of the pledged shares ; that the bank was required to dispose of the shares immediately in the wake of loss in the marginal requirements without even giving a notice to the appellant ; as in such eventuality, the appellant would have been saved from the loss of Rs.29.5 million---Validity---Such pleawas without any substantial proof---Although it is very difficult to prove mala fide in a particular act which is taken lawfully and is permissible in law---Heavy burden lies on the one who claims so but at least in order to attract attention of the Court to lean in favour of continuation of the proceedings for recovery of damages on that ground, the appellant was required to come up with reasonable facts entailing an inquiry to justify life of such proceedings---The entire claim of the appellantwas based on presumptions and assumptions without there being any evidence to support it---In the circumstances, continuation of the proceedings with the end result in failure would be nothing but an abuse of process of law---Thus, the criteria had not been qualified by the appellant and there was no chance that in absence thereof it would succeed---High/Appellate Court upheld the impugned judgment passed by the Banking Court---Appeal, filed by the customer, was dismissed.

SALMAN CAPITAL INVESTMENTS (PVT.) LIMITED vs HABIB BANK LIMITED S — 2026 CLD 292 KARACHI-HIGH-COURT-SINDH

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