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

Section: 3,22

Law: Limitation Act, 1908

Section: 57

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----S. 3---Limitation Act (IX of 1908), Art. 57---Suit for recovery of amount due under credit card facility---Limitation---Scope---Appellant/Bank filed suit for recovery of amount due under a credit card facility---Banking Court dismissed the suit holding the same to be barred by limitation---Plea of appellant/Bank was that period of limitation for filing of the suit on credit card facility was not provided in the First Schedule to the Limitation Act, 1908 and was thus, governed by the residuary Art. 120 which provided a period of six years---Validity---Article 57 of the Limitation Act, 1908 provided a period of three years "for money payable for money lent" starting from when the loan was made---Article 57 clearly covered the suit for recovery of amount filed by the appellant/Bank---Period of three years was available to the appellant/Bank from the date when last repayment was received by it---Bank having not filed the suit within a period of three years, was rightly held to be barred by limitation by the Banking Court--- Appeal was dismissed accordingly. Muhammad Suleman v. Habib Bank Limited 1987 MLD 2757 fol. THIS ORDER PASSED BY: JAWAD HASSAN, JUSTICE---.--- This regular first appeal is filed under section 22 of the Financial Institutions (Recovery of Finances) Ordinance, 2001 (the Ordinance) challenging judgment and decree dated 16.05.2014 passed by the banking court. 2. Brief facts of the case are that the appellant instituted a suit against the respondent seeking recovery of Rs.138,011.02 due under a credit card facility. The respondent did not enter appearance before the banking court pursuant to the summons issued by it and was accordingly proceeded against ex parte. Notwithstanding the fact that the respondent did not file any application for leave to defend, the banking court dismissed the suit of the appellant holding it to be barred by limitation, hence this appeal. 3. Learned counsel for the appellant submitted that the period of limitation for filing of the suit on credit card facility was not provided for in the first schedule to the Limitation Act, 1908 and was thus…

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