Ratna Enterprises (Pvt.) Ltd. vs People’s Bank – CA 556/2005-2013

The case between Ratna Enterprises (Pvt.) Ltd. and People’s Bank addressed whether leasehold rights mortgaged as security for a loan could be auctioned under the People’s Bank Act, particularly after the Urban Development Authority (UDA) had cancelled such leasehold rights. It was determined that properly executed leasehold interests constitute property that may be mortgaged and are enforceable as real rights, not mere personal rights. However, subsequent events—namely, the UDA’s cancellation of the lease—were found to have extinguished the petitioner’s rights and prevented the bank from proceeding with the auction under its prior resolution. The discretionary nature of writ relief, issues of unexplained delay, and estoppel arising from a prior Supreme Court settlement were emphasized. The