Law:

Section:

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)-------Ss. 9, 10 & 11---Charging of markup by Financial Institution beyond date of expiry of finance facility---Suit for recovery---Applications for leave to defend were dismissed and suit was decreed---Contention of the defendants was that plaintiff bank had charged mark-up beyond date of expiry of finance facility---Held, that plaintiff bank could not charge mark up beyond expiry date of finance facility---High Court modified the decree amount by disallowing mark-up charged beyond date of expiry of finance facility---Appeal was allowed, accordingly. JUDGMENT ABID AZIZ SHEIKH, J.---This appeal has been filed under section 22 of the Financial Institutions (Recovery of Finances) Ordinance, 2001 against the interim decree dated 24-2-2009 passed by learned Judge Banking Court No.1, Multan, against the appellants whereby the suit of the bank (respondent No.1) was decreed to the extent of Rs.66,66,347 along with costs of the suit and cost of funds from date of default till complete realization of the decretal amount. 2. Brief facts of the case are that Saudi Pak Commercial Bank Ltd. (respondent No.1) filed a suit for recovery of Rs.71,69,711 against Messrs Pace Pesticides Pvt. Ltd. (appellant No.1) as principal debtor whereas appellants Nos.2 to 4 were sued being the guarantors of the finance facility availed by the appellant No. 1. The appellant No.4 along with defendant No.5 in plaint were also sued in the capacity of the mortgagors of the property to secure the finance. The claim in the plaint was that appellant No.1 opened an account with the respondent bank and applied for finance facility. Accordingly, various finance facilities were sanctioned by the respondent bank in favour of appellant No.1 vide sanction advice dated 17-6-2003. Subsequently, the following finance facilities were renewed and enhanced vide sanction advice dated 20-7-2004:-- (1) Running Finance Facility Rs. 6.7 Millions (2) LC (S) Renewal Rs. 30.0 Millions (3) FIM Rs.15.0 Millions The contention of the respondent bank was that out of the aforesaid three finance facilities, the appellants adjusted two finance facilities…

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