You Can Run, You Cannot Hide
In a judgement that will constitute judicial precedent, a British Court, the High Court of Justice, Queen’s Bench Division, (Royal Courts of Justice), London ordered registration of the judgement and decree dated April 12, 1999 passed by Justice S A Sarwana of the Sindh High Court (SHC). This was in a suit filed by Habib Bank against Mian Aftab Ahmed of Firdaus Spinning and Weaving Mills Limited for approximately Rs 45 crore plus mark-up from Sept 7, 1995 under the Foreign Judgements (Reciprocal Enforcement) Act, 1933. Habib Bank had sought to register and enforce the judgement of the SHC against Mian Aftab Ahmed in the UK since he was residing and carrying on business in the UK. The registration had initially been ordered on Sept 17, 1999 when the banks outstanding claim stood at about Rs 78 crore. Obviously the amount will now be higher.
Habib Bank was represented initially in Pakistan by Liaquat Merchant Associates while the legal proceedings in the UK were filed and pursued by the Bank’s solicitor in the UK, Piers Lane of Lane and Partners in conjunction with Liaquat Merchant, Advocate as the Pakistan legal consultant of Habib Bank. Syed Sharifuddin Pirzada was also appointed as a legal consultant on the Constitutional and Public Policy Issues in Pakistan while Justice (Retd) G H Malik gave audience on behalf of HBL as the expert witness on Pakistan laws and judgments pronounced by the superior Courts of Pakistan. The Honourable Justice Carnwath held in favour of HBL in accepting that viz (1) there is nothing in Pakistani law which makes it inappropriate for the English Court to treat the judgement of SHC as incorrect (2) the judgement was not obtained by fraud and (3) the defendant had an opportunity to defend the suit before October 1999 and registration of judgement and enforcement was not opposed to Public Policy. In the Court itself HBL was represented by Alistair R MacGregor, QC. This judicial precedent will enable Pakistani banks to pursue recovery proceedings against bank loan defaulters who have fled to foreign countries. By persisting with this action despite the psychological mindblock in many quarters that loan defaulters residing in other countries have somehow become outside the pale of law because of their “successful escape” from Pakistan, a clear message has been sent to bank defaulters that given the will and persistence, they can and will be pursued wherever they are for recovery of amounts due under judgements passed by Pakistani Courts of Law.
