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Case Law Register

Citations2012 CLD 1995 KARACHI

Relevant Laws: 2012 CLD 1995 KARACHI


Observations: Ss. 9 & 22—Recovery of bank loan—Appeal—Cost of funds and service fee—Judgment and decree passed by Banking Court was assailed by bank on the ground that bank was entitled to recover service fee from defendant—Validity—Service which was being rendered by bank to defendant had come to an end on 22-6-2007, when defendant stopped availing facility and credit card in question was cut into two pieces and was dropped by him in drop box of concerned branch of the bank—No justification was available for charging service fee after such date as the same would have been justified only if defendant after committing default was still utilizing the facility and bank was rendering services to him—Rate at which service fee was to be charged by bank was never agreed by parties nor any specific rate was mentioned in plaint and statement of accounts—Mark-up/profit could not be charged without mutual agreement and/or beyond mutually agreed period—Customer could not be penalized twice for the same wrong/default and for the same period, that was, default in fulfillment of his obligation by charging service fee or any other type of penalty from him from the date of default on one hand and on the other hand by claming cost of funds from him with effect from the same date of default—Cost of funds having been granted to bank by Banking Court from the date of default on the amount claimed by bank, therefore, bank was not entitled to service fee for the same period—High Court declined to interfere in judgment and decree passed by Banking Court—Appeal was dismissed, in circumstances.

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