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

Section: 15,22

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----Ss. 15 & 22---Sale of mortgaged property---Objection---Bona fide purchaser---Possession of original title deed---Effect---Jurisdiction of Banking Court after validating sale certificate---Functus officio---Scope---Appellants filed application for cancellation of sale certificate---Plea of appellants was that they were bona fide purchasers and the property was not mentioned either in the suit or in the fard taliqa and was introduced for the first time in the auction schedule---Validity---Held; prior to alleged alienation of the property by mortgagor, same had been mortgaged with the Bank which continued to be in possession of the title document ever since---Appellants could not assert title over the mortgaged property ahead of and in preference to the Bank---Appellants could not claim to be bona fide purchasers in view of the fact that the original sale deed of property was tendered with the Bankmuch earlier to the alleged sale in favour of appellants---Description of property was rightly mentioned while executing memorandum of deposit of title deeds---Mis-description of khasra number in fard taliqa was of no significance and appellants were not labouring under any misapprehension regarding the identity of property---Banking court after issuance of sale certificate had become functus officio qua the mortgaged property---Appeal was dismissed. Habib Bank Limited v. Syed Muhammad Haroon and 4 others 2009 CLD 140 and Citi Bank N.A. v. Muhammad Akbar and 3 others 2005 CLD 384 rel. 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 order dated 06.01.2014 passed by the banking court in dismissing the application filed by the appellants. 2. Brief facts of the case are that respondent No.1 bank after obtaining judgment and decree on 07.02.1998 against respondents Nos.1 to 5 filed the execution application for recovery of the decretal debt through sale of the mortgaged properties which included property falling in Khewat No.2001, Khatoni No.2484…

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