BANKING JUDGMENTS.

(1)

(2)

(3)

NO MARK UP BEYOND CONTRACT PERIOD/CUSHION

PERIOD/DUAL RATE OF MARK UP/ACCRUAL OF MARK-UP
LIKE INTEREST.
(I)

1993 MLD 1571 (1573) A

HBL VS. FAROOQ COMPOST FERTILIZER)

(II)
(III)

1999 CLC 1362 (1364) A (Cushion period)

1999 CLC 1374(1377) A (No mark-up beyond contract period)

(IV)

2000 CLC 847 (P854) H (No mark-up on mark-up)

(V)

PLD 1999 K 196 (P205 & 206) I & L & (206) J (Excessive/dual
Mark-up/Rebate is illegal being penalty)

(V)

PLD 2000 K 246 (255) F Prompt payment Books in Murabaha

being penalty is illegal.

(VI)

2002 CLD 94 (96) A Mark-up cannot be allowed like interest.

NO MARK UP WHEN PARTIES DID NOT AGREE / NO MARKUP ON

L/C / BILL OF EXCHANGE
(I)

1999 MLD 1694 (1698) A (BILL OF EXCHANGE / NO

AGREEMENT TO CHARGE MARKUP)

(II)

PLJ 1999 KARACHI 178 (180) A&B (NO AGREEMENT TO

CHARGE MARKUP ON L/C)

MARK UP
PRINCIPAL.
(I)
(II)
(III)
(IV)
(V)

TRANSANCTION

MURABAHA

CONNOTATION

1999 MLD 3456 (3459) C

PLD 2000 K 246 (252) B & (255) G
2001 MLD 1351 (1428) RR
PLD 2001 KARACHI 143 (P 155) E
2002 CLD 276 (284) A

(4)

MUSHARKA
(155)D

CONNOTATION PLD 2001 KARACHI 143 AT (154)C &

(5)

Sham Transaction: There must be actual transaction. In case

transaction is only on paper transaction, it could hardly be visualized
to be free from Interest.
PLD 1997 K 62 (94&95)Z

(6)

ACKNOWLEDGEMENT/ADMISSION
(I)
(II)
(III)

(IV)

Erroneous admission would not be enough to deny to relief.

PLD 1993 Peshawar 81(86)F
Admission made erroneously or in ignorance in rights of
maker or law was not binding. 1993 CLC 1248 (1251)A.
Admission relevant but not conclusive Admission, which was
wrong in point of fact and evidently made in ignorance of legal
rights would have no binding effect on person making PLD
1992 Peshawar 144(16)C.
PLD 1997 Karachi 62 & 94.

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(7)

EVASIVE DENIAL
(I)
(II)

(8)

Evasive or vague denial would be a denial. 1994 CLC

173(175)A.
Specific denial = Applications where defendant was required
to make specific denial at the same time plaintiff was also
called upon to give particulars where necessary. In the
absence of particulars given by respondent to substantiate
claim = Applicant not in position to admit or deny them bold
allegations contained in Affidavit were not required to be
recalled.

Agreement without consideration Defendant requesting for

rescheduling of earlier facility. Plea that agreement is without
consideration is wrong.
PLD 2001 Lahore 224(229)B.

(9)

Connotation serious & bonafide dispute:

(I)
(II)

(10)

PLD 1999 K 398 (P401).

2001 SCMR 1341 (1344, 1346)A&B.

GROUND SUFFICIENT / PLEAS WHICH ARE SERIOUS & BONAFIDE

DISPUTES.
(I)

Portion agreed to the adjudication of dispute by Court of the

City named ____ suit filed in another Court. Serious &
bonafide dispute.
2001 CLD 479.

(II)

(10)

Defendant admitted liability but offered to pay specified

amount towards full & final settlement. Grounds existed to
believe of serious and bonafide dispute as validity of
documents challenged leave granted subject to furnishing
Security 1998 MLD 529(536)C.

Ground not sufficient for grant of PLA. Grounds which are not
serious & bonafide dispute:
(I)

Admitting availing of Loan facility but badly disputed

correctness of statement of the Accounts.
PLD 1985 Lahore 117(P121)

(II)

Admission of execution of documents. Allegation of erroneous

calculation of markup. No ground for grant of PLA.
PLD 1998 K 302 (306)

(III)

Suit amount included damages. Objection to such damages no

ground.
1999 MLD 1888 (1903 & 1904)

(IV)
(V)
(VI)

Force Majeure in absence of said clause in agreement. No

serious and bonafide dispute. PLD 2001 K 1436(1438).
Non entitlement of claim of Mark-up by plaintiff. No ground
1998 CLC 1436 (1438). Refusal to grant leave.
Securing of loan by mortgage. No grounds.
1987 CLC 1002

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(VII)

Pleas of obtaining blank documents (signatures)

supported by any material on record. No ground.

not

PLD 1988 L 162

(VIII) Where plaintiff fulfilled all his obligations contained in
agreement. Objections as to correctness of statement of
Account is not serious & bonafide dispute.
1998 CLC 1152

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