Law: Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)

Section: 9

(a) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)---S. 9---Suit for recovery of loan amount---Suit plaint signed by attorney, whose power of attorney was duly signed by directors of a Bank, which was subsequently taken over by plaintiff-Bank with permission and under rules and regulations of State Bank of Pakistan---Competency---Suit was, held, to have been instituted by competent person. Messrs Saudi Pak Commercial Bank Ltd. v. Messrs Marvi Agrochem (Pvt.) Ltd. and 9 others 2007 CLD 1734 distinguished. (b) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----Ss. 9 & 10---Electronic Transaction Ordinance (LI of 2002), S.3---Suit for recovery of loan amount by Bank---Application for leave to defend---Electronically generated statement of accounts filed by Bank along with plaint---Defendant's plea that such statement had no legal value due to absence of signature of officer and seal of Bank thereon---Validity---Electronically generated documents would not require any signature by virtue of Electronic Transaction Ordinance, 2002---Such statement of accounts containing complete picture of loan facility obtained by defendant would not be considered to be a document having no legal authenticity---Non-denial of obtaining of loan facility by defendant established execution of documents mentioned in plaint and his failure to discharge his liability in accordance with agreed terms--- Defendant while filing leave application had failed to comply with provisions of Ss.10(3), 10(4) & 10(5) of Financial Institutions (Recovery of Finances) Ordinance, 2001---Grant of leave to defend suit could not be considered a matter of routine or right, unless the suit involved substantial question of fact and law--- Defendant had neither denied execution of loan documents nor complied with mandatory requirement of law, thus, was not entitled to leave to defend---High Court dismissed leave application and suit was decreed resultantly. National Bank of Pakistan v. Al-Asif Sugar Mills Ltd. 2001 MLD 1317; Sahib Deed v. Inam and 4 others PLD 1985 Quetta 69; Shafiq Ahmad v. Mirza Muhammad Anwar Beg PLD 1968 Lah. 367; National Bank of…

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