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

Section: 9

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. 376,675,799.37 from the defendants on account of various finance facilities granted to defendant No. 1 and default by it of its payment obligations. 2. The suit claim arises out of Cash Finance (pledge) facility, Cash Finance (hypothecation) facility, finance against imported merchandize facility and two letters of credit facilities, the details of the outstanding amounts whereof are given in paragraph 20 of the plaint. ' The above mentioned finance facilities were availed through the plaintiff bank's offer letter dated 08.09.2007 in pursuance whereof the defendants executed the necessary finance documents. On account of defaults committed by the defendants in their repayment obligations, the plaintiff bank was constrained to file the present suit. The defendants contested the suit by filing their joint application for leave to defend bearing P.L.A. No. 67 of 2008. This Court on 03.02.2014 granted unconditional leave to defend to the defendants, where after the following issues were framed on 26.05.2014: 1. Whether the titled suit is maintainable under the provision of Financial Institutions (Recovery of Finances) Ordinance, 2001? OPD 2. Whether the claim of the plaintiff bank is supported by true and correct statement of account? OPP 3. Whether the claim of bank to the extent of charging and adjustment of mark up is legal and justified? OPP 4. Whether the bank is entitled to the amount claimed? OPP 5. Relief. 3. The plaintiff produced four witnesses who tendered in evidence Exh.PW-1/1 to Exh.PW-1/60, Exh.P-2/3 to Exh.P-2/75 and Exh.PW-3/2 to Exh.PW-3/5. Defendants only examined D W-1. 4. The issue wise findings are as under: ISSUE No. 1 5. This is the legal issue, the onus whereof was on the defendants. However, the learned counsel for the defendants did not address any argument on this issue which is accordingly decided against the defendants. ISSUES Nos.2 to 4 6. All these issues are interconnected and are, therefore, being decided together. In order…

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