Law: Guardians and Wards Act, 1890

Section: 7

Law: Civil Procedure Code (V of 1908)

Section: O.XLI,R.27

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

Section: 22

Guardian and Wards Act, 1890 (VIII of 1890)-- ----S. 7--Financial Institutions (Recovery of Finances) Ordinance 2001, S. 22 Mortgage charge--Disbursement of finance with procurement of Guardianship certificate alongwith permission for mortgage--Appointment of guardian regarding mortgage sale and transfer of property--Requirement of loan--Welfare of Minors--Inquiry to evade mortgage liabilities--Challenge to--Permission/sanction of Guardian Judge was sought specifically for loan from respondent bank, on plea that such loan was required to ensure welfare of minors, failing which factory had to be closed-- In absence of denial of beneficial interest minors while filing petition for leave to defend, is devoid of any force, raises adverse inferences against appellants and otherwise denudes submission raised of any credibility--Creation of mortgage charge is legal and same is enforceable against appellants in terms of and decree--No illegality or defect was pointed in and decree dated 21.6.2006. Mortgage-- ----Scope--Finance facility-Whether properties belonging to minors can be mortgaged with respondent bank for purpose of securing repayment of finance facility, extended and availed--Appeal was dismissed. THIS JUDGMENT DELIVERED BY: ASIM HAFEEZ, J.- This regular first appeal under Section 22 of the Financial Institutions (Recovery of Finances) Ordinance, 2001 ("Ordinance of 2001") is against judgment and decree dated 21.06.2006 passed by learned Judge Banking Court-I, Multan, whereby suit filed by Respondent No. 1 (Bank of Punjab) was decreed, against the appellants, for Rs.7,861,038/- alongwith costs of funds from the date of default i.e. 30.06.2004 till realization of the decreetal amount. 2. The Appellant No. 2 is proprietor of 'Bismillah Cotton Factory', who has executed finance documents, including his personal guarantee alongwith others. Appellant No. 2, acting as Guardian for the Appellants No.6 to 10, created mortgaged charge in favour of respondent bank on the properties of Appellants No. 6 to 10, alleged as minors, to the extent of their shares. Appellants No. 1 to 10 filed consolidated application under Section 10 of Ordinance of 2001 for seeking grant…

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