Law:

Section:

(a) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)-------Ss. 3, 17 & 22--- Civil Procedure Code (V of 1908), S.47---Suit for recovery of loan---Grant of costs of funds---Cost of funds in the decree were allowed under Ss. 3 & 17 of the Financial Institutions (Recovery of Finances) Ordinance, 2001---Determination of cost of funds by the Executing Court---Executing Court granted cost of funds from the date of institution of suit---Bank had impugned the order of the Banking Court whereby the cost of funds had been determined from the date of institution of the suit and not from the date of default till realization of amount, as claimed by the Bank---Contentions of the Bank were that under Ss. 3 & 17 of the Financial Institutions (Recovery of Finances) Ordinance, 2001, the Bank was entitled to the grant of cost of funds from the date of default till its realization and not from the date of institution of suit and that the date of default was to be considered as the date beyond which the mark-up was not allowed by the Banking Court---Respondents contended that the cost of funds could only be recovered from the respondents from the date of institution of suit and that no date of default was determined by the Banking Court while passing the decree---Validity---Under the provisions of Ss.3 & 17 of the Financial Institutions (Recovery of Finances) Ordinance, 2001, the customer was liable to pay cost of funds from the date of default till realization of the cost of funds as certified by the State Bank of Pakistan---Banking Court while passing the decree in favour of the Bank had granted cost of funds under Ss. 3 & 17 of the Ordinance---Although specific date of default was not mentioned in the decree, however, the date of default was defined in a manner that the claim of the Bank of an amount of mark-up charged after the date of default was declined by the Banking Court while passing the decree---Banking Court was mindful of the date of default at the time of passing the decree, after which date no mark-up was allowed to the Bank---Statement of account showed the relevant date of default beyond which the mark-up was not allowed…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492