Law:

Section:

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)-------Ss. 2(c) & 9---Civil Procedure Code (v of 1908), O.I, R.10---Suit for recovery of loan amount by sale of mortgaged property---Application under O.I, R.10, C.P.C. by intervener claiming to have purchased mortgaged property from defendant-borrower through sale agreement---Maintainability---Pre-requisite for invoking provisions of Financial Institutions (Recovery of Finances) Ordinance, 2001 was existence of relationship between parties as financial institution and customer---Person being able to show existence of an agreement with financial institution or dealing therewith in capacities as enumerated in S.2(c) of Financial Institutions (Recovery of Finances) Ordinance, 2001 could be impleaded as necessary party to proceedings---Sale in question was between two private persons without consent/involvement of Bank, thus, intervenor by mere such purchase would not acquire status of a "customer" as defined under S.2(c) of the Ordinance---No proceedings for and against a person, who was neither a customer nor financial institution, would be maintainable before the Banking Court---Mere execution of agreement for sale of mortgaged property and its possession would not create any legal right in favour of intervenor in banking proceedings---High Court dismissed such application in circumstances. ORDER FAROOQ ALI CHANNA, J.---Through this appeal the appellant has assailed the order dated 24-12-2010, passed by the learned Single Judge of this Court dismissing the application under Order I, Rule 10, C.P.C. filed by the appellant in Suit No.B-31 of 2010 (NIB Bank Ltd. v. All Hamid Travels and others) before Banking Court filed by the respondent No.1 for recovery of Rs.56,543,164 jointly and severally against the respondent Nos.2 to 4, who had defaulted during repayment of loan obtained from the respondent No.1 against several mortgaged properties including the double storied residential house constructed on residential Plot No.C-256, measuring 600 sq. Yds. situated in Block-D. Federal "B" Area, KDA Scheme No.16, Karachi, claimed by the appellant to have purchased the same from the respondent No.2…

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