People’s Bank Vs. Yashodha Holdings (Pvt.) Ltd. – SC CHC APPEAL NO. 22/2006-2009

In the case between People’s Bank and Yashodha Holdings (Pvt.) Ltd., the Supreme Court addressed the applicability of English law under Section 3 of the Civil Law Ordinance to govern banking transactions and questions of ultra vires in the context of an absence of express provision under the Companies Act, No. 17 of 1982. The proceedings concerned the appellant’s request to execute a decree pending appeal following the dismissal of its application by the Commercial High Court, which had considered whether there existed a substantial question of law regarding the defence of ultra vires. It was held that, in the absence of specific statutory guidance within the Companies Act on ultra vires transactions, English law prevails by incorporation through the Civil Law Ordinance. Existing precedent