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

Section: 7,9,10,10(4)

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----Ss. 10(4), 9 & 7---Procedure of Banking Court---Suit for recovery of finance---Application for leave to defend---Mandatory requirements of S. 10 of the Financial Institutions (Recovery of Finances) Ordinance, 2001---Scope---Where defendants/customers had not mentioned in their application for leave to defend, particulars regarding amount of loan/finance obtained by them, and the amount outstanding, then statutory requirements of S. 10(4) of the Financial Institutions (Recovery of Finances) Ordinance, 2001 were not met. Muhammad Naeem Bhatti and others v. United Bank Limited and 2 others 2005 CLD 643; Messrs Evergreen Press and 3 others v. Bank of Punjab 2004 CLD 239 and Riaz Ahmad (Rana Riaz Anjum) and another v. The Bank of Punjab 2016 CLD 596 ref. THIS JUDGMENT DELIVERED BY: SYED ARSHAD ALI, JUSTICE:---.--- Impugned herein is the judgment and decree of the learned Judge Banking Court-I, Peshawar dated 10.3.2015, whereby the suit of the appellant for recovery of Rs.1,403,999/- against the Respondents/Defendants was dismissed. 2. Brief but the essential facts of the case are that the appellant-plaintiff had instituted a suit for recovery of Rs.1, 403,999/- against the Respondent/Defendant. It is averred in the plaint that the Respondent No.1 had applied for financial assistance in shape of running finance of Rs. 2 million from the plaintiff-bank. The plaintiff-bank considered the request of defendants/Respondents and allowed and disbursed the running finance facility to the defendants for a sum of Rs.one million vide sanction letter No.COP/CYP-179 dated 15.6.2005. The said finance facility was secured through execution of demand promissory note, letter of hypothecation and personal guarantee of the Respondents/Defendants. It is further claimed in the plaint that against Rupees one million which was sanctioned and disbursed to the Respondents/Defendants, not a single penny was re-paid by the Defendants and as such an amount of Rs.1,403,999/- was outstanding against them. On being summoned, the Respondents/Defendants appeared before the learned Banking Court and submitted an…

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