The Supreme Court has allowed National Accountability Bureau (NAB)’s 15-year old plea to prosecute guarantor in the Rs1.06 billion Ittefaq Foundries loan case against Sharif family.
On February 14, 2000, NAB had filed a reference against owners of Ittefaq foundries Mian Sharif, his sons Nawaz and Shahbaz Sharif and other family members for not paying back Rs1.06 billion loan to the National Bank.
The court, however, clarified that any further proceedings against guarantor in loan case will be subject to the fate of the appeal pending before the Lahore High Court.
The three-judge bench of the apex court has set aside Lahore High Court’s June 30, 2000 order, wherein NAB was directed to release the guarantor.
According to the NAB’s reference, on December 10, 1999, Zonal Chief National Bank addressed a complaint to the chairman NAB against Sharif family stating that since 1994, the company was in default to the NBP to the tune of Rs1,063,162,937.
The complainant stated that the incumbent prime minister on June 11, 1998 announced to hand over his assets to the defaulted banks to realise the loans of Sharif family by selling them.
However, the coup occurred on October 12, 1999, and Sharif went into exile and Ittefaq Foundries director Dr Mukhtar was named as a guarantor to return the loan.
Upon non-repayment, NAB had arrested Mukhtar, but his wife challenged his arrest in the LHC which had ordered release of the guarantor. Later on, the NAB had approached the SC. After the passage of 15 years, the bench on November 9 reserved the judgment in the matter.
“According to the terms of the guarantee, Respondent No. 2 (Mukhtar Hussain)’s responsibility under the guarantee is that of a principal debtor and he is liable under the guarantee until all moneys due from Ittefaq Foundry (Pvt.) Ltd. have been paid,” the judgment said.
Published in The Express Tribune, November 26th, 2014.
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