IHC bars banks from collecting debt settlements

ISLAMABAD: The Islamabad High Court (IHC) Friday barred all private banks from collecting debt settlements during the lockdown and sought reply from the federal government, finance ministry, National Disaster Management Authority (NDMA), State Bank of Pakistan and others.

Chief Justice IHC Justice Athar Minallah took up a petition filed by a citizen, Rafiq-ur-Rehman, seeking a court order to prevent the private banks from collecting debt settlements during the lockdown.

The petitioner told the court that he was employed in a private company as a bike driver and got Rs75,000 loan under the National Rural Support Program but nowadays he was unable to make his (both) ends meet. He asked as to how he could pay instalments to the bank.

He complained that the bank staff daily visited his house and harassed the female family members.

“I have also submitted an application to the prime minister and the State bank of Pakistan but to no avail, leaving me with no option but to move the court.”

Justice Athar Minallah remarked that all business activities had stopped because of the lockdown.

“This is not the problem with an individual, many other people are also facing the banks,” said Justice Minallah and barred all private banks from collecting debt settlements during the lockdown and sought reply from the federal government, finance ministry, NDMA, State Bank of Pakistan and others.

The court adjourned the hearing till April 17.

Earlier, a citizen, Rafiq-ur-Rehman, wrote a letter to the IHC chief justice stating that his income had dwindled due to coronavirus and lockdown making it difficult for him to make loan payments.

He requested the chief justice to either waive off or suspend the installments.

The chief justice, however, directed that the letter be converted into a petition and fixed it for Friday hearing.

The chief justice remarked that this was a matter of basic human rights and public welfare and adjourned the hearing.