Law:

Section:

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)-------S.9-Recovery of bank loan---Restructured finance---Claim of mark-up-Finance facility amount claimed to have been provided by plaintiff--bank to defendants was in the nature of restructured arrangement---No disbursement of funds had taken place pursuant to the agreement of finance---Effect---Claim of mark-up on such restructured amount was not maintainable---Claim for overdue amounts on principal account in respect of restructured finance of defendant company was duly substantiated by several documents executed and actions taken by defendants---In the context of restructured facility the absence of fresh disbursement was immaterial--Suit was decreed in favour of plaintiff accordingly. Bankers Equity Ltd. through Principle Law Officer and 5 others v. Messrs Bentonite Pakistan Ltd. and 7 others 2003 CLD 931; ADBP v. Modern Leathers Ltd. 2007 CLD 1424 and Habib Bank Ltd. v. Taj Textile Mills Ltd. through Chief Executive and 5 others 2009 CLD 1143 ref. ORDER UMAR ATA BANDIAL, J.---This suit for recovery of Rs.87.02 million is filed against defendant No.1 company which availed finance of Rs.60 million from the plaintiff-bank. The defendants Nos.2 and 3 are sued as guarantors and also as pledgors of security to the, plaintiff-bank whereas defendants Nos.4 to 5 are sued as pledgors of security to the plaintiff-bank in respect of the afore-noted finance. 2. In answer to a request by the defendant/company dated 5-12-2003 for finance/advance facility of Rs.60 million, the plaintiff-bank vide letter dated 20-6-2004 sanctioned the requested facility as term finance repayable in seven years subject to mark-up. The defendant/company executed agreement of finance dated 7-8-2004 on mark-up basis for an amount of Rs.60 million with buy back price of Rs.91.155 million repayable on or before 26-11-2010 in installments commencing from 26-8-2004. As security for the said finance the defendant/company executed demand promissory note dated 7-8-2004 signed by its Directors, the defendants Nos.2 and 3 in the amount of Rs.91,155 million supported by four letters of pledge all dated 7-8-2004 executed by each of…

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