Law:

Section:

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)-------Ss. 3 & 9---Suit for recovery of bank loan---Liquidated damages, grant of---Principle---Suit filed by Bank was decreed in favour of bank and against defendants jointly and severally in the sum of Rs.100,798,440 along with cost of funds and cost of suit, however liquidated damages were not granted---Validity---Single Judge of High Court was not cognizant of the fact that amount shown as recoverable from defendants in summary of accounts, filed by Bank, also included amount of liquidated damages at fix rate of 20%---Liquidated damages in absence of any evidence, showing actual amount of damages sustained by any party, particularly when cost of funds in terms of S.3 of Financial Institutions (Recovery of Finances) Ordinance, 2001, had already been granted along with cost of suit, could not be allowed at flat rate--- Division Bench of High Court upheld and decree by modifying the same by deleting amount of liquidated damages i.e. Rs.16,799,740 claimed by Bank at flat rate of 20%---Appeal was disposed of accordingly. Saudi-Pak Industrial and Agricultural Investment Company (Pvt.) Limited v. Messrs Allied Bank of Pakistan 2003 CLD 596 and Atif Manzoor v. Faysal Bank Limited and others I.A. No.19 of 2012 decided on 18-10-2012 rel. Allah Ditta v. Ghulam Haider and others 1988 SCMR 964 and Muhammad Sultan and others v. Faqirullah and others 1991 CLC 1098 distinguished. JUDGMENT SADIQ HUSSAIN BHATTI, J.---Appellants are aggrieved by order dated 22-2-2011 and decree dated 12-10-2011 in Suit No.B-127 of 2009 passed by learned single Judge of this Court, whereby the leave to defend application of the appellants was dismissed and the suit of the respondent bank was decreed against the appellants jointly and severally and in favour of the respondent bank. 2. Brief facts of the case as recorded by the learned Banking Judge of this Court are that running finance facility in the sum of Rs.50 Million was extended to the appellant in October 2004, which was enhanced to Rs.70 Million in the year 2007. In order to secure the above amount appellants executed several documents, such as, agreements for…

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