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

Section: 19(7),22

Financial Institutions (Recovery of Finances) Ordinance, 2001 (XLVI of 2001)---.--- ---.---Ss. 19(7) & 22---.---Repayment of amount allegedly deposited in auction proceedings when objection petition of debtor was accepted---.---Awarding of compensation on auction amount being successful bidder as sale price of mortgaged property---.---Validity---.---Auction purchaser of mortgaged property had deposited specific amount which was being used by bank---.---Appellant had participated in auction proceedings in good faith and he remained deprived of fruit of said amount till today---.---Bank opposing his application throughout and act of bank does not appear to have acted in good faith in matter in hand---.---Appeal was allowed. THIS JUDGMENT DELIVERED BY: KHALID MAHMOOD MALIK, JUSTICE:---.--- This first Appeal under Section 22 of the Financial Institutions (Recovery of Finances) Ordinance, 2001 is directed against the Order dated 22.4.2015, passed by Judge Banking Court No. 1, Multan, whereby he dismissed the application filed by appellant/auction purchaser under Section 19(7) Proviso 1st of the Financial Institutions (recovery of Finances) Ordinance, 2001 for awarding of compensation on auction amount Rs. 50,50,000/- deposited by appellant being successful bidder as sale price of mortgaged property. 2. Precisely facts of the case are that respondent (bank) being, decree-holder in order to recover decretal amount put the mortgaged property in auction on 02.07.2008. The appellant participated in auction bid and being highest bidder of Rs. 50,50,000/-, the auction of the mortgaged property was confirmed by the Banking Court, Multan, M/S Multan Textile Allied. Industries (Pvt.) limited, and others (judgment Debtors/Respondents No. 2 to 7) filed an appeal, which was accepted by this Court and case was remanded back to the Banking Court for its fresh decision; that Banking Court has dismissed the objection petition vide order dated 08.08.2012 and once again FAO No. 131/2012 was filed by' the judgment debtor, which was allowed on 05.11.2012. In pursuance to the said order, Banking Court framed issues, recorded evidence of parties and then again dismissed objection…

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