THE National Bank of Pakistan (NBP) has filed a suit against the Independent Newspapers Corporation (Pvt) for recovery of an outstanding amount of Rs1.7 billion and for sale of mortgaged property.

The bank filed the case through its legal counsel, Mohsin Tayebaly & Co.

The NBP alleged that there was a “substantial shortfall in the valuation of goods, items and equipment” acquired by INCL under a letter of credit.

The bank’s valuators were not permitted to even inspect the goods, items and equipment, the NBP said.

A spokesman for National Bank clarified that it had taken the action of its own accord and the government of Pakistan had no connection whatsoever in the matter.

He said that instead of fulfilling its obligation towards NBP, INCL had made “false and frivolous allegations” against NBP and its majority shareholder, the government of Pakistan.

One of the allegations was that the NBP had initiated the legal action at the behest of the government of Pakistan because of the INCL’s adverse reporting against the latter, the spokesman said.

On the contrary, he added, NBP’s contention was that the adverse reporting made by INCL against NBP and the government followed the bank’s legal actions against INCL and its directors.
Source: Dawn
Date:2/14/2010