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2002 SCMR 1559

Messrs HOTEL KASHMIR PALACE (PVT.) LTD. and others vs FIRST ELITE CAPITAL

Citation2002 SCMR 1559
CourtSupreme Court of Pakistan
Case No.Civil Petition No,785-L of 2002
Date2002-03-26
Judge(s)Faqir Muhammad Khokhar, Khalil-ur-Rehman Ramday, Munir A. Sheikh
ResultStay granted

ORDER

MUNIR A. SHEIKH, J.---This petition is directed against interm order dated 31-12-2001 of the Lahore High Court through which the petitioner has been granted stay of execution of the decree subject to 'furnishing bank guarantee of the decretal amount.

2. Learned counsel for the petitioner submitted that the petitioner has already made payment of an amount of Rs,1,03,00,000 as against the amount of loan of Rs,90,00,000 and while deciding the application of the petitioner for stay of execution proceedings, it has not been taken into consideration that the respondent-Bank was charging fixed amount of profit at the rate of 20% which was in fact an interest and was not permissible under the Musharaka type of investment as such it was a case of rendition of accounts which has not been done as the suit was filed on the basis of fixed rate of interest/profit and the learned Judges of the High Court have also not taken into consideration that the petitioner had already provided sufficient guarantee/security in the form of mortgage of building itself before passing the order attaching the condition of furnishing bank guarantee which amounts to recovery of the entire decretal amount at this stage.

3. Notice to respondent for 3-4-2002. Till then, the execution proceedings shall remain stayed.

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