Law:

Section:

(a) Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997)-------S.9---suit for recovery of loan amount with marls-up---Amount availed by borrower was less than what was mentioned in Finance Agreement. --Held: Mark-up amount would stand reduced proportionately. (b) Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997)--- ----Ss.9 & 10---Banker's Books Evidence Act (XVIII of 1891), S.4---Suit for recovery of loan amount-Application for leave to appear and defend suit---Discrepancies in statement of account.---Effect---Determination of actual amount due would not be possible without recording evidence---Granting leave to defend to defendant would be necessary for ascertainment of accounts---Such application was accepted in circumstances. JUDGMENT SYED SAKHI HUSSAIN BOKHARI, J.---The respondent-Bank filed a suit against the appellants/ defendants for recovery of a sum of Rs. 12,30,024.92. It was alleged in the plaint that a running finance facility had been provided to appellant No. 1, namely, Amtul Rehman Industries (Pvt.) Limited, which had been availed by the said appellant, but had not been repaid in full. The appellants Nos.2 and 3 were impleaded as defendants in their capacity as guarantors for repayment of the debts of the appellant-Company. The appellants filed an application seeking leave to appear and defend but the same was dismissed and as a consequence, the impugned judgment and decree was passed against the appellants. However, while passing the decree, the learned Banking Court held that an amount of' Rs.2,65,000, charged by way of cushion period mark-up, was not recoverable by the respondent-Bank and suit of the Bank was decreed for a sum of Rs.9,44,469.92. Hence this appeal. 2. It is contended on behalf of appellants that excessive mark-up has been charged by the respondent-Bank which is beyond the amount agreed by the appellant-Company in the financing agreement dated 13-12-1992. It is also the case of the appellants that the Bank has claimed a sum of Rs.4,92,066 as other charges although there was no legal or contractual basis for making such claim. 3. We have considered the…

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