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

Section: 10,9

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001) ---.--- ---.--- -Ss. 10 & 9 ---.--- Procedure of Banking Court ---.--- Suit for recovery ---.--- Application for leave to defend, grant of ---.--- Financial estoppel, concept and effect of ---.--- Scope ---.--- When a defendant asserted that amount of finance facility was not disbursed to them, they must produce and rely on their current account statement to show inaccuracy and fallacy of the claim of the plaintiff Bank ---.--- Failure of defendants to dispute entries on the account statement at the relevant time was hit by principle of financial estoppel as there existed a duty on every Bank to send periodic Bank statements to its customers and when a defendant/customer did not raise any defect in the said statement sent by the Bank, they were estopped to challenge veracity of statement of account ---.--- Mere denial of signature on a guarantee was no ground for leave to defend ---.--- When a defendant did not deny availing of finance facilities, then per Ss. 10(4) & 10(3) of the Financial Institutions (Recovery of Finances) Ordinance, 2001 such defendant was obliged to provide details in their applications for leave to defend, of the amount availed, repaid and outstanding amounts and non-compliance of Ss. 10(4) & 10(3) of the Financial Institutions (Recovery of Finances) Ordinance, 2001 would entail consequences of dismissal of applications for leave to defend. Messrs Haq Feed Industries Pvt. Ltd. through Chief Executive and 7 others v. National Development Finance Corporation 2007 CLD 975; Faysal Bank v. Generetch Pakistan Ltd. and 6 others 2009 CLD 856; Bankers Equity Ltd. through Principal Law Officer and 5 others v. Messrs Bentonite Pakistan Ltd. and 7 others 2003 CLD 931; Askari Bank Ltd. v. Waleed Junaid Industries and 2 others 2012 CLD 1681; Messrs United Dairies Farms Pvt. Ltd. and 4 others v. UBL 2005 CLD 569; Apollo Textile Ltd. and others v. Soneri Bank Ltd. PLD 2012 SC 268; Habib Metropolitan Bank Ltd. v. Abid Nisar 2014 CLD 1367; Messrs Dharala Oil Mills v. The BOP through Branch Manager 2014 CLD 153 and Pak Oman Investment Co. Ltd. v. Chenab Ltd. and 9 others 2016…