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

Section: 2(a)(i),9,22

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----Ss. 2(a)(i), 9 & 22 [as amended by Financial Institutions (Recovery of Finances) (Amendment) Act (XXXVIII of 2016)]---Recovery of finance---Transaction outside Pakistan--- Amended provisions of S. 2(a)(i) of Financial Institutions (Recovery of Finances) Ordinance, 2001---Retrospective effect---Bank filed suit against defendant regarding finance which was advanced in a foreign country in the year 1978---Banking Court decreed suit in favour of Bank---Plea raised by defendant was that courts in Pakistan had no jurisdiction to entertain such suit---Validity---Bank, in its plaint had claimed recovery of loan with interest @ 14% per annum which loan was provided in the year 1978---Loan was interest-bearing, therefore, suit was barred by limitation---All acknowledgments to claim of defendant were dated 1991 or prior and suit was filed in year 2000---Even from date of acknowledgment of interest-bearing loan, suit was time barred---Advantage of amendment to Financial Institutions (Recovery of Finances) Ordinance, 2001 to bring their cases in Banking Court in Pakistan on ground that defaulter of loan/finance for time being was resident in Pakistan was subject to law of limitation---High Court in exercise of appellate jurisdiction set aside and decree passed by Banking Court---Appeal was allowed in circumstances. Nadeem Ghani v. United Bank Limited and others 2001 CLC 1904; Habib Bank Limited v. Highway General Trading Co. and others 2014 CLD 491; Khalid Qureshi and 5 others v. United Bank Limited I.I Chundrigar Road, Karachi 2001 SCMR 103; Mst. Shaheen Noon and another v. Allied Bank of Pakistan through Manager and others 2006 CLD 706; Messrs Industrial Development Bank of Pakistan v. Mst. Rooqaiya Begum and others 1986 CLC 1592; Habib Bank Limited v. Shamim Qureshi PLD 1988 Kar. 481; Industrial Development Bank of Pakistan v. Messrs Naqi Beverages (Pvt.) Ltd. and 7 others 2002 CLD 712; Valuegold Limited and 2 others v. United Bank Limited PLD 1999 Kar. 1; T. Zubair Limited and 2 others v. Judge, Banking Court No.III, LAHORE HIGH COURT and another 2000 CLC 1405; Bank of America National…