20000226ADBP restrained from recovering interest on loan

Recorder Report

LAHORE: Mr. Justice Mian Nazir Akthar of the Lahore High Court has issued restrictive orders in a petition filed by one Fakhar Hayat Wattoo and directed the Agricultural Development Bank of Pakistan not to recover the interest on the loan taken by the petitioner.

The petitioner contended in his petition that he had taken a loan of Rs 800,000 from the respondent bank and paid the principal amount which he owed towards him, but the bank was now asking him for paying an amount of Rs 500,000 as interest on the loan.

He contended that since the interest on the loan was un-Islamic, the respondent bank could not ask for it.

He, therefore, prayed to the court to declare the interest on loan as illegal and un-Islamic. He also prayed to the court to restrain the respondent bank from taking any illegal action against him.

The court after hearing petitioner's counsel at length issued restrictive orders in his favour.