The Supreme Court has ruled that a banking court cannot award markup that was not specifically claimed in the original plaint, setting aside a Lahore High Court ruling that allowed Citibank to recover additional markup through an amended decree.
A three member bench led by Justice Muhammad Ali Mazhar held that Section 152 of the Civil Procedure Code cannot be used to add unclaimed relief or change the substantive rights of the parties. Any such error must instead be challenged through a review petition or appeal.
The case dates back to the 1990s, when Crescent Spinning Mills obtained financing from Citibank but failed to repay its dues. Citibank filed a Rs. 76 million recovery suit in 1995, which was decreed in its favor in 1999. The bank later secured an amendment to the decree to include markup until recovery.
The Supreme Court noted that Citibank’s original claim sought the principal amount and liquidated damages at 19 percent annually, but the trial court had rejected the liquidated damages claim. The bank had not specifically sought the markup that was later added to the decree.
The court said a court generally cannot grant relief that was not claimed in the plaint, as such relief may be treated as abandoned under Order II, Rule 2 of the CPC. A general request for “any other relief” does not by itself justify granting an unclaimed remedy.
The Supreme Court converted the petition into an appeal and allowed it, setting aside the Lahore High Court judgment and the banking court’s order to the extent that they permitted the additional markup through the amended decree.
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