Hatton National Bank Limited v. Sellers Sports(Pvt) Ltd. and Others – sllr 2000 volume 3 page 326

In the case between Hatton National Bank Limited (successor to Emirates International Bank Ltd.) and Sellers Sports (Pvt) Ltd and Others, the issue addressed concerned whether the action to recover sums on a Mortgage Bond and Guarantee was time-barred under the Prescription Ordinance. The holding determined that actions based on mortgage obligations fall within a 10-year prescription period under section 5, and actions on written guarantees are governed by section 6, with the time commencing from the date of demand for payment rather than an earlier account default. The principle reaffirmed is that the legal character and terms of the original obligation, not subsequent statements of account, dictate the prescription applicable to enforcement actions. Precedents and statutory interpretatio