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

Section: 22,19(7)

Law: Civil Procedure Code (V of 1908)

Section: S.47,O.XXI,R.58,59,60,62,89,90

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----S. 19(7)---Civil Procedure Code (V of 1908), O. XXI, Rr. 58, 59, 60 & 62---Application for postponement of sale of mortgaged property during execution proceedings---Appellant filed application before the Banking Court seeking postponement of sale of the mortgaged property during execution of decree passed in recovery suit claiming that she had purchased the said property from the -debtor and had also offered to satisfy the decree---Said application was rejected in limine without investigating and determining her claim on the grounds that she was not the customer of the Bank/decree holder and could not be made a party in the execution proceedings---Held, that R. 58 of O. XXI, C.P.C. specifically provided that if any claim or objections were filed by any claimant or objector, the executing court shall proceed to investigate the same with the like power as regards the examination of the claimant or objector, and in all other respects, as if he was a party to the suit---Additionally it was not necessary that the claimant or objector in execution proceedings arising out of banking matters must fall within the definition of a "customer" defined in the Financial Institutions (Recovery of Finances) Ordinance, 2001 ('the Ordinance'), as any person who had a legitimate and subsisting right, title or interest in the pledged, hypothecated or mortgaged property may file an application before the Banking Court under subsection (7) of S. 19 of the Ordinance for investigation of his claim or objections in respect thereof, and may also seek its release from attachment or postponement of its sale under Rr. 58, 59, 60 & 62 of O. XXI, C.P.C.---Once such investigation and determination was made by the Banking Court through a speaking order and as a result thereof if the claim or objections were rejected, only then sale of the property under attachment could be made by the Banking Court, otherwise the sale, without investigation and determination of any pending claim or objections in accordance with law, would be defective and would be open to challenge by the claimant/objector---At the time of…

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