Law:

Section:

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)-------Ss.9 & 10---Finance Agreement---Financial facility provided by way of participation in equity of company against assurance of payment of minimum dividend @ 13% per annum for a period of four years---Guarantors had agreed to buy back the shares acquired by appellant and had also guaranteed the payment of said minimum rate of dividend at 13% per annum after grace period of one year---Leave to defend was refused but later on Court allowed counsel for respondents to record statement/ acquiescence and suit was decreed---Decretal amount had been paid and dispute with regard to residual amount was challenged by appellant---Question was as to whether after having refused to grant leave to defend, recording such statement, was permissible under the law and if that was so whether liability under said statement was liable to be altered---Validity---Case was remanded to trial Court for verifying the liability after statement of respondent's side---If no concession was offered by appellant through any statement the trial Court would allow appellant to rebut the statement made by counsel of respondent. JUDGMENT ALI NAWAZ CHOWHAN, J.---This regular first appeal has been filed against judgment and decree dated 2-5-2001 passed by the learned Banking Court No.III, Lahore. 2. The liability of the respondent has not been disputed in view of Finance Agreement dated 26-6-1987. The financial facility was provided by way of participation in equity of the appellant's company against assurance of payment of minimum dividend @ 13% per annum for a period of four years. Under the agreement the guarantors, who were impleaded as defendants and are now respondents in this appeal had agreed to buyback the shares acquired by the plaintiff and had also guaranteed the payment of the aforesaid minimum rate of dividend at 13% per annum after the grace period of one year. 3. On 7-3-2002 when this matter came up before a learned Division Bench of this Court it modified the impugned decree by saying that the relief be given to the plaintiffs in accordance with what was prayed in the plaint. It has been noted in the said…

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