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Petitioner: HAMZA BOARD MILLS LIMITED VS Respondent: HABIB BANK LIMITEDHonorable Justice NAZIM HUSSAIN SIDDIQUIAshtar Ausaf Ali,K.M.A. Samdani
2005 C L D 1034
2005 C L D 1034
[Supreme Court of Pakistan]
Present: Nazim Hussain Siddiqui, Javed Iqbal and Hamid Ali Mirza, JJ
HAMZA BOARD MILLS LIMITED and 7 others‑ ‑‑Appellants
Versus
HABIB BANK LIMITED and another‑‑‑Respondents
Civil Appeal No.511 of 1995, decided on 22nd October, 2001.
On appeal from the judgment dated 3‑5‑1995 of Lahore High Court, passed in C.O. No. 133 of 1994).
Companies Ordinance (XLVII of 1984)‑‑‑
‑‑‑‑Ss.305 & 309‑‑‑Winding up of company‑‑‑Liability of bank, adjustment of‑‑‑Restoring the pervious status of company‑‑‑Company was ordered to be wound up as the liabilities of bank were not paid‑‑‑Company had adjusted all its liabilities with the bank and from the date when the winding up order was passed, the financial rights and obligations of the company remained the same as were on that date‑‑‑Plea raised by the company was that the winding up order of the company was liable to be set aside and the company was entitled to function as it was doing before‑‑‑Validity‑‑‑There was nothing on record substantiate the plea raised by the company and it was not clear whether other creditors of the company would be affected or not by restoring the previous status of the company‑‑‑Order of winding up of the company passed by Companies Judge was set aside by Supreme Court and the matter was remanded to High Court for decision afresh on merits regarding restoring the previous status of the company or otherwise‑‑‑Appeal was disposed of accordingly.
Ashtar Ausaf Ali, Advocate Supreme Court for Appellants.
K.M.A. Samdani, Senior Advocate Supreme Court for Respondent No. 1.
Date of hearing: 22nd October, 2001.
ORDER
NAZIM HUSSAIN SIDDIQUI, J.‑‑‑Mr. K.M.A. Samdani, learned Senior Advocate Supreme Court for the respondent No.1 Habib Bank Limited submits that appellant's Company viz. Hamza Board Mills, Limited has adjusted all its liabilities with the Bank and leaving nothing outstanding against the appellant's Company. A letter of said Bank dated 21‑6‑1999, addressed to Mr. Muhammad Saleem Sahgal, Advocate of the Company in above terms, is available on record.
2. Learned counsel for the appellants states that front the date of the impugned order dated 3‑5‑1995 till stay was granted by this Court on 17‑5‑1995 nothing had happened during above period relating to the Company's financial affairs and no transaction whatsoever was done during said period. In other words, he submits that the Company's financial rights and obligations remained the same as were on 3‑5‑1995. Learned counsel also submits that, under the circumstances, the winding‑up order of the Company is liable to be set aside and the Company is entitled to function as it was doing before. Although learned counsel has asserted as above but there is nothing on record to substantiate it. It is not clear whether other creditors of the Company would be affected of not by restoring the previous status of the Company.
3. Under the circumstances, impugned order/judgment is set aside and the case is remanded to High Court to decide it afresh on merits regarding restoring the previous status of the Company or otherwise, having taken into consideration all the circumstances and also keeping in view the interest of those other creditors of the Company, who are not party in this appeal.
4. Accordingly, the appeal is disposed of in above terms.
M.H./H‑18/SC Case remanded.