Law:

Section:

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----Ss. 9 & 10---Suit for recovery of finance---Leave to appear and defend the suit, dismissal of---Effect---Defendants raised objections in their application for leave to defend the suit---Validity---In presence of admission of defendants with regard to availing of finance facilities and report of amicus curiae regarding outstanding amount, any objection raised by defendants in their application for leave to defend was of no consideration--- No case for grant of leave to defend the suit was made out, application to leave appeal and defend the suit by defendants was dismissed---Suit was decreed in circumstances. JUDGMENT SHEZADA MAZHAR, J.---C.O.S. 129 of 2010 has been filed by plaintiff bank against defendants Nos. 1 to 8 under section 9 of the Financial Institutions (Recovery of Finances) Ordinance, 2001, (Ordinance) for recover of Rs.78,719,271/10. Plaintiff/bank sanctioned and disbursed three finance facilities to Defendant No.1 company in the year 2004; Running Finance - I Rs.20.00 Million, Running Finance - II Rs.25.00 Million and Cash Finance Rs.20 Million. 2. The said facilities were renewed/extended again in the year 2005. In order to secure the finance facilities defendant company executed number of documents as mentioned in the plaint including agreements for finance facility, promissory note, letter of continuity and letter of hypothecation etc. Whereas Defendants Nos.2 to 8 executed personal guarantees to secure the finance facilities extended/disbursed to defendant No.1. 3. Pursuant to Notices issued to defendants, defendants Nos. 1 to 4 entered appearance and filed PLA No. 188-B of 2010. None entered appearance on behalf of Defendants Nos.5 to 8 and therefore the said defendants were proceeded ex parte vide order dated 19.04.2011. However, later defendant No.5 filed C.M. No. 341-B of 2011 for setting aside ex parte proceeding order dated 19.04.2011 under Order IX, Rule 13, C.P.C. The said application was allowed on the statement of the plaintiff bank counsel vide order dated 19.12.2011. Even after the setting aside ex parte order neither any application for leave to…

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