Law:

Section:

(a) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----Ss. 22, 7 & 2(a)---Industrial Development Bank of Pakistan Ordinance (XXXI of 1961), Ss. 42, 3(2) & 13---Suit for recovery by Financial Institution, a statutory body---Persons authorized to file suit and appeal under Financial Institutions (Recovery of Finances) Ordinance, 2001---Scope---Appeal of appellant (Bank) under S. 22 of the Financial Institutions (Recovery of Finances) Ordinance, 2001 was filed through an officer who had been delegated powers by the Board of Directors of the Bank---Contention of the respondent was that the said person was not authorized to file present appeal, and therefore, the same was not maintainable---Held, that the present appeal had been commenced by an officer to whom powers had been delegated under a statute by the Board of Directors of the appellant Bank---When a suit was filed by a limited company, the lis could not be initiated on behalf of a company without having due authority either in terms of Articles of Association or the Board of Directors; but in the present case, the appellant Bank was a statutory body and in terms of S.42 of the Industrial Development Bank of Pakistan Ordinance, 1961; powers had been delegated by the Board of Directors upon the official who had initiated the present appeal; and therefore the present appeal was maintainable. (b) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----Ss. 3, 17 & 9---Decree of suit---Award of "cost of funds"---Determination of "cost of funds"---Mandatory nature of S.3 of the Financial Institutions (Recovery of Finances) Ordinance, 2001---Scope---Suit for recovery was decreed and a certain amount was determined by the Banking Court as being payable by the customer/defendant to appellant Bank as the "cost of funds"---Contention of the appellant Bank was that the impugned order of Banking Court had been passed in violation of S.3 of the Financial Institutions (Recovery of Finances) Ordinance, 2001 as the cost of funds determined by the Banking Court were in contravention to the said S.3 of the Ordinance---Held, that S.3 of the Financial Institutions…

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