UBL Serves Legal Notice on Shaheen Air

[Abbas Ali]

UBL serves legal notice on Shaheen Air to recover Rs558mln

Case may be referred to SBP, NAB after 7 days

By Nasir Mehmood On Nov 8, 2018

KARACHI: Mohsin Tayebaly & Co, the legal consultant for United Bank Limited, has served a notice on Shaheen Air International (SAI) and its two owners to pay back Rs 558,092,979.83/- (principal plus markup) within seven (7) days, failing which the legal actions would be taken against them.

According to informed sources, the legal notice was served on November 6, 2018 against Messrs. Shaheen Air International Limited Terminal-1 Karachi, Kashif Mahmud Sehbai and Ehsan Khalid Sehbai 145-P, Farid Town, Sahiwal. The legal consultant stated that on your request, since December 2013 our Client had sanctioned and disbursed from time to time, several finance facilities, including Cash Finance, Letter of Credit and Standby Letter of Credit etc.

In order to fulfill the repayment obligations towards our client, the customer furnished the securities as: Joint pari passu hypothecation charge of PKR 637,333,334/- on present and future current and fixed assets of the company, with 25% margin. Personal guarantees of Kashif Mahmud Sehbai and of Ehsan Khalid Sehbai wre provided. “In consideration of the above, the customer had agreed to pay all amounts regarding the said Finance Facilities within the stipulated time period.”

The notice read, “The Customer fully availed and utilized the aforesaid Finance Facilities but willfully and intentionally failed to meet its payment obligations towards our Client within the stipulated time period and continued in its failure despite various correspondence and requests made by our Client in this regard. The outstanding amounts from the Finance Facilities availed by the Customer were that the Customer has been availing the said Finance Facilities from our Client and as on 30.10.2018 an amount of PKR 558,092,979.83/- (principal plus markup) is outstanding, due, and payable.”

“Despite all the accommodations provided to you by our Client, the Customer has intentionally and willfully failed to adhere to its repayment obligations and the Customer seems to be ignorant of the consequences resulting from its negligent attitude regarding the legal obligations owed towards our Client.

The Customer is deliberately and willfully not paying its liabilities and has diverted the bank’s funds for personal gains and usage which constitutes gross “willful default” on its part to pay our Client’s dues and are liable to be prosecuted as per the provisions of the Amended Financial Institutions (Recovery of Finance) Ordinance, 2001 (the “Ordinance”).”

It said, “In view of the above mentioned facts, the Customer has left our Client with no option but to call upon the Customer to settle all its liabilities in respect of the Finance Facilities amounting to PKR 558,092,979.83/- (principal plus markup)] within seven (7) days from the date of this notice, failing which our Client reserves the right to immediately, without any further notice to the Customer, initiate the following legal proceedings against the Customer under the provisions of the Ordinance and all other prevailing laws of the country to recover the outstanding amounts through the securities provided or otherwise, including but not limited to: Instituting a Banking Suit under Section 9 of the Ordinance for recovery of outstanding funds. Initiating Criminal Proceedings under Section 20 of the Ordinance. Lodging a Criminal Complaint with respect to the offence of “Willful Default” under Section 20(6), (7) and (8) of the Ordinance. Referring the Customer’s case to the State Bank of Pakistan and the National Accountability Bureau for the recovery of our Client’s dues. Initiating winding up proceedings of the Customer under Section 304 of the Companies Act, 2017.”

Source: natcour.com