Home / News / LHC Issues Notice To State Bank, Attorney General

LHC Issues Notice To State Bank, Attorney General

LHC Issues Notice To State Bank, Attorney General

LHC Issues Notice To State Bank, Attorney General
LHC Issues Notice To State Bank, Attorney General

LAHORE: Justice Iqbal Hameedur Rehman of the Lahore High Court (LHC) issued a notice to the State Bank of Pakistan and attorney general of Pakistan on a petition challenging the commercial banks’ action of referring the name of an alleged defaulter in the Credit Information Bureau because of which other banks stopped doing business.

The judge directed both respondents to file replies until the third week of September.

The petitioner’s counsel, M Shahid Siddiqui, submitted that the bank, on mere allegations of default, refers the name of defaulter to the CIB, constituted by the State Bank of Pakistan. He said that in consequences of which the other bank did not renew loans and stopped doing other banking business. The counsel said that after reporting the name to the CIB, no bank was inclined to do business with that person or company, which is against the fundamental rights as laid down in Article 18 of the constitution. He said that after the introduction of the 18th Amendment in light of Article 10 (a) of the constitution, without fair trial nobody could be declared a defaulter. He said that reporting the name to the CIB without a trial from any competent court was illegal and unconstitutional. Siddiqui requested that the CIB be declared illegal and banks be restrained from giving any names to the CIB unilaterally. He also requested that banks be restrained from taking any action. staff report

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.