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

Section: 9,20

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----Ss. 20 & 9---Suit for recovery---Application for leave to defend---Denial of customer as to availing of finance proceedings---Criminal proceedings under section 20 of Financial Institutions (Recovery of Finances) Ordinance, 2001 for such denial---Scope---Petitioner impugned order of Banking Court whereby complaint of plaintiff Bank to initiate criminal proceedings against defendant on account of defendant's denial of availing finance facility was allowed---Contention of defendant, inter alia, was that it was entitled to raise its defence in the suit and said denial in his application for leave to defend did not constitute an offence under S. 20 of the Financial Institutions (Recovery of Finances) Ordinance, 2001---Validity---Suit of the plaintiff Bank was still pending at the stage of application for leave to defend, and Banking Court had yet to decide the same and had not yet considered plea of defendant with respect to denials made in defendant's application for leave to defend---In such circumstances, Banking Court could not have initiated proceedings under S. 20 of the Financial Institutions (Recovery of Finances) Ordinance, 2001 as the entire complaint of plaintiff Bank was presumptive---Question of whether finance was obtained by defendant or not, had not been conclusively adjudicated and if at present stage Banking Court proceeded with the complaint, it would prejudice the case of the defendant in the suit for recovery---Criminal complaint filed by plaintiff Bank was therefore misconceived and Banking Court could not have proceeded with the same---Impugned order was set aside---Constitutional petition was allowed, accordingly. THIS ORDER PASSED BY: AYESHA A. MALIK, JUSTICE---.--- Through this petition, the Petitioner has impugned order dated 29.4.2017 passed by Respondent No.2, Judge Banking Court-II, Lahore. 2. The basic grievance of the Petitioner is that the Respondent Bank filed a recovery suit against the Petitioner in which the Petitioner filed Leave Application ("PLA"). In the PLA he denied execution of documents which as per the contentions of the learned counsel is…

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