I. A 38/2025 (D.B.) Sindh High Court, Karachi

Sindh High Court · 2025 · Before Muhammad Faisal Kamal Alam

1. Sana Akram Minhas, J: The question for determination in both Appeals (which impugn the judgments of the Banking Court dismissing the Appellant Bank’s Suits as time-barred), is whether, where loan repayment is structured in monthly instalments, the period of limitation for the institution of proceedings is to be computed from the date of the first default in payment of an instalment, or from the date on which the last instalment falls due and payable i.e. at the end of the contractual period. Key Facts Of First Appeal No.38/2025

2. This First Appeal No.38/2025 (“Appeal 38”) is directed against the Judgment and Decree dated 21.1.2025 (“Impugned Judgment No.1”) rendered by the learned Banking Judge in Suit No.96/2024 (Dubai Islamic Bank v. Muhammad Bux Shaikh), whereby the said Suit filed by Dubai Islamic Bank (“Bank”) was 2 dismissed as being barred by limitation on the premise that, in terms of Article 57 of the Limitation Act, 1908 (“Act 1908”), the limitation period of three (3) years for a recovery suit commences from the date of default, which in the view of the learned Banking Judge, occurred upon the second consecutive failure to make payment, i.e. 30.7.2019, and not from the expiry of the contractual period (which matured on 3.3.2023).

3. A perusal of Impugned Judgment No.1 (particularly paragraph 2), shows that despite service through publication, the Respondent Mohammad Bux Shaikh, did not appear and was proceeded against ex parte. The said Respondent has chosen not to appear in the present Appeal as well despite service.

4. As per the Bank’s Statement of Account1 and the Instalment Payment Schedule2 annexed to the “Musawamah Agreement” (“Agreement No.1”) dated 28.2.20183, following were the salient features of the Personal Finance extended to Respondent Mohammad Bux Shaikh: Finance Tenor: 5 years Finance Amount: Rs.1,460,000/- Finance Booking Date: 28-2-2018 Maturity Date: 3-3-2023 Sale Price: Rs.2,622,780/- Number of Instalments: 60 Monthly Instalment Amount: Rs.43,713/- 1st Instalment Payment Date: 3-4-2018 60th (Last) Instalment Payment Date: 3-3-2023

5. The Plaint in Suit No.96/2024, presented on 6.12.2024, records various dates of cause of action (in paragraph 5). The last such date is 3.3.2023, marking the expiry of Agreement No.1, whereas the date of default specified in the prayer clause4 is 3.7.2019. Key Facts Of First Appeal No.108/2025

6. The First Appeal No.108/2025 (“Appeal 108”) challenges the Judgment and Decree dated 10.5.2025 (“Impugned Judgment No.2”) of the learned Banking Judge in Suit No.97/2024 (Dubai Islamic Bank Limited v. Najamul 1 At Court File Pg.103 (Annex K) 2 At Court File Pg.81 3 At Court File Pg.55 4 Prayer: “It is, therefore, prayed that this Hon'ble Court may graciously be pleased to pass a Judgment and Decree in favour of the Plaintiff and against the Defendant for the sum of Rs.1,966,410.00/- (Rupees One Million Nine Hundred Sixty-Six Thousand Four Hundred Ten Only), along with costs of suit and cost of funds from the date of default i.e. 03-07-2019 till realization.” 3 Hassan), whereby the Bank’s Suit was dismissed on the ground of being time- barred.

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