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

Section: 9,7,22

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----Ss. 9, 7 22---Procedure of Banking Court---Lease provided by Financial Institution----Agreed Loss Value----Suit for recovery---Lease of vehicle----Default of customer---Termination of lease of vehicle---Overdue installments/rentals---Agreed Loss Value in financing agreement, recovery of---Financial Institution/Bank impugned order and decree of Banking Court whereby it was held not to be entitled to recover Agreed Loss Value and overdue rentals/installments of customer, after default on part of customer and termination of lease of vehicles provided by Bank to customer---Validity---Financial Institution, being a leasing company, on termination of such lease, would be entitled to recover Agreed Loss Value which would be equivalent to unpaid installments, which in the present case, were overdue rentals and remaining amount of lease finance which was payable in the remaining period of lease---Banking Court in impugned order committed error of law by excluding amount of Agreed Loss Value from decree, despite fact that defendant was obligated to pay overdue rentals---Impugned order of Banking Court was modified and Financial Institution/Bank was held to be entitled to receive Agreed Loss value along with overdue rentals inclusive of unpaid installments---Appeal was allowed, accordingly. Messrs Najia Spinning (Pvt.) Limited and others v. Saudi Pak Leasing Company Limited and others R.F.A. No. 945 of 2011 and Saudi Pak Leasing Company Limited v. Adil Textile Mills Limited and others R.F.A. No.51 of 2015 rel. JUDGMENT RASAAL HASAN SYED, J.--- This appeal under section 22 of the Financial Institutions (Recovery of Finances) Ordinance, 2001 (the Ordinance) impugns judgment decree dated 24.9.2009 of the learned Judge Banking Court-II, Lahore. 2. Facts of the case are that the appellant filed a suit for recovery of its dues pursuant to lease facilities extended to the respondents which included an amount of Rs.10,82,991/- in respect of Facility No.1 under lease agreement dated 08.7.2005; an amount of Rs.13,54,132/- as Facility No.2 under lease agreement dated 31.8.2005; an amount of Rs.48,81,459/-…

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