Law:

Section:

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----S. 9---Suit for recovery of loan amount---Leave to appear and defend the suit, application for---Substantial question of fact---Scope---Simple denial of the entries in the statement of accounts was made without providing any reasons therefor---Defendant could not simply put up a denial simpliciter in his application for leave to defend in answer to a claim of financial institution which was backed up by a statement of account and other finance documents---Bare denial of liability was never held to constitute a valid defence in law---Mark-up on the finance facilities had been charged outside the period of finance facility which amounts were deleted from the suit claim---Claim of plaintiff Bank was substantiated by the documents available on record---Defendant had failed to raise any substantial question of fact warranting recording of evidence for its resolution---Petition for leave to appear and defend the suit was dismissed---Suit was decreed in favour of plaintiff Bank and against the defendant jointly and severally with costs of funds. THIS JUDGMENT DELIVERED BY: SHAMS MEHMOOD MIRZA, JUSTICE:---.--- This is a suit filed under section 9 of the Financial Institutions (Recovery of Finances) Ordinance, 2001 (the Ordinance) seeking recovery of Rs.153,492,069/- from the defendants on account of varies working capital facilities granted to defendant No.1 and default by it of its payment obligations. 2. Brief facts of the case are that defendant No.1 was availing running finance (RF), finance against packing credit (FAPC), Export Refinance (ERF-I and ERF-II), finance against foreign bills (FAFB) and import letter of credit (LC) facilities for number of years. Lastly, the said finance facilities were granted through sanction letter dated 25.10.2011 with expiry on 30.06.2012. On accounts of default committed by the defendants, the plaintiff bank was constrained to file the present suit. 3. In pursuance of the summons issued by this Court, defendants Nos.1 to 2 entered appearance and filed their joint application for leave to defend bearing P.L.A. No.227-B of 2013 (the PLA). 4. The learned…

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