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

Section: 3(2),9,10,10(11),22

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----Ss. 3(2), 9, 10 & 22---State Bank of Pakistan PPRD Circular No.44, dated 17-12-1998---Suit for recovery of finances---Non-exporting of goods---Suit filed by Bank was decreed in its favour and defendants assailed the same on grounds that penalties awarded by Banking Court were illegal and were not agreed to be paid---Validity---Application for leave to defend filed by defendants and all objections/grounds urged therein by them were rejected by Banking Court---Banking Court was fully justified under S. 10(11) of Financial Institutions (Recovery of Finances) Ordinance, 2001, in proceeding forthwith passed and decree in favour of Bank against defendants---Defendants failed in exporting goods on basis of subject finance facilities which were availed by them from the Bank---Provisions of State Bank of Pakistan PPRD Circular No. 44 dated 17-12-1998 in relation to export finance scheme specifically provided imposition of fine in case direct exporter who had obtained finance under Part IV of the Scheme failed to match his borrowing by his export performance---Bank was entitled only to purchase price agreed in agreement for financing; penalty or forced liability imposed by State Bank of Pakistan, markup on such penalty and cost of funds under S. 3(2) of Financial Institutions (Recovery of Finances) Ordinance, 2001---High Court modified the and decree passed by Banking Court---Appeal was allowed accordingly. Messrs Dadabhoy Cement Industries Ltd. and others v. Messrs National Development Finance Corporation 2002 CLC 166; Messrs Dadabhoy Cement Industries Ltd. and 6 others v. National Development Finance Corporation, Karachi PLD 2002 SC 500; United Bank Limited v. Messrs Usman Textile and 6 others 2007 CLD 435 and United Bank Limited v. Messrs Blast International (Pvt.) Limited and 6 others 2003 CLD 39 rel. THIS JUDGMENT DELIVERED BY: NADEEM AKHTAR, J.--- Through this appeal under section 22 of the Financial Institutions (Recovery of Finances) Ordinance, 2001 ('the Ordinance'), the appellants have impugned the judgment delivered on 26.03.2011 and the decree drawn in pursuance thereof on…

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