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

Section: 7,9,9(2),10

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----Ss. 9, 10 & 7---Procedure of Banking Court---Filing of a suit under the Financial Institutions (Recovery of Finances) Ordinance, 2001---Suit filed by "customer" against "financial institution"---Mandatory requirements of S. 9 of the Financial Institutions (Recovery of Finances) Ordinance, 2001---"Statement of account", rationale for---Scope---For filing of suits under the Financial Institutions (Recovery of Finances) Ordinance, 2001 there must be a default in fulfilment of an obligation regarding any representation, warranties and covenants by a financial institution or the customer and if the same was not shown in the plaint along with relevant documents, then such suit could not be filed---"Customer", in a suit against a financial institution/Bank had to comply with mandatory requirements of S. 9(2) of the Financial Institutions (Recovery of Finances) Ordinance, 2001 and support its plaint with a "statement of account" and all other relevant documents relating to grant of finance and mere filing of certificates containing no transactions could not qualify as "statement of account"---Requirement of "statement of account" was applicable to both the "customer" and the "financial institution"---Rationale behind mandatory requirement of filing statement of account was to make the other party aware of, among other things, the amount advanced, mark-up charged, nature of default and the actual amount of the claim in order to enable other party to frame its defence within the limited period prescribed by law and to show reasonable, serious and plausible grounds of contest to be able to seek and obtain leave to defend the suit---Absence of filing the requisite statements of account along with the plaint amounted to absence of providing adequate, proper and reasonable opportunity of defence to the other party. Apollo Textile Mills Ltd. and others v. Soneri Bank Ltd. PLD 2012 SC 268; Muhammad Azam v. Askari Leasing Limited and others 2014 CLD 1462 and Irfan Industries (Pvt.) Limited v. Standard Chartered Bank and another 2017 CLD 223 ref. Amtex Limited through Director v. Bank Islami…

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