Law:

Section:

(a) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)-------Ss. 10(11) & 9---Suit for recovery---Dismissal of application for leave to defend---Effect---Under S.10(11) of the Financial Institutions (Recovery of Finances) Ordinance, 2001, Banking Court had to pass and decree in favour of plaintiff against defendant forthwith upon dismissal of defendant's application for leave to defend---Dismissal of application for leave to defendant, however, did not mean that entire claim of plaintiff in a suit for recovery under the Financial Institutions (Recovery of Finances) Ordinance, 2001 should be decreed as prayed for by the plaintiff without examination of the claim of the plaintiff---Plaintiff became entitled to a decree only to the extent of such amount which was permissible by law---Markup more than the agreed rate and/or beyond the agreed period, could not be granted to financial institution and no other charges or amount could be allowed to the financial institution to which the customer had not agreed to. Apollo Textile Mills Ltd. and others v. Soneri Bank Ltd. 2012 CLD 337; Messrs United Bank Ltd. v. Banking Court No.II and 2 others 2012 CLD 1556; Mrs. Jawahar Afzal v. United Bank Ltd. 2003 CLD 119; Khawaja Muhammad Bilal v. Union Bank Ltd. 2004 CLD 1555 and Habib Bank Ltd. v. Messrs SABCOS (Pvt.) Ltd. 2006 CLD 244 rel. (b) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----Ss. 2(d), 2(e) & 10---"Finance", meaning of---"Obligation"--- Scope--- Word "Charity"--- Connotation---Financing agreement stipulating obligation upon customer to pay a certain percentage to charity in case of default or delay in payment---Legality---Suit for recovery--- Application for leave to defend was dismissed---Plaintiff bank, in addition to principal amount and markup had also claimed an amount from defendant as "charity"---Contention of plaintiff was that defendant was liable to pay the said amount in view of the agreement between the parties, which stipulated that in case of delay or default committed by defendant, the defendant undertook to pay a certain percentage of the outstanding amount for the period of default, to a…

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