Law: Income Tax Ordinance, 2001

Section: 9(5),10(2)

ORDER ASIM HAFEEZ, JUSTICE:---.--- This appeal is directed against the order dated 12.03.2019, whereby learned Single Judge in Chambers, while exercising jurisdiction under Financial Institutions (Recovery of Finances) Ordinance, 2001 ("The Ordinance"), dismissed appellant's application seeking setting aside of ex-parte judgment and decree dated 07.09.2018. 2. Facts are straightforward. Respondent Financial Institution filed suit under section 9 of the Ordinance for seeking recovery of Rs.165,146,610/- against the appellants, claiming default in the performance of contractual obligations qua the Finance facilities extended - details whereof were provided in the Plaint. On 05.12.2017, when the case came up for hearing, orders were passed for service of appellants (impleaded as defendants) through ordinary mode as well as by registered post A.D and courier, which order was slightly modified on 18.12.2017, whereby order for issuance of notices was again passed including publication in the newspapers. Whether service of notice(s) by all of any one of the modes of service was affected? No finding qua effective service was recorded by the Court by or on 24.05.2018 - when case came up for hearing. And again order was passed for issuance of notices through all modes as specified in section 9(5) of the Ordinance, which order was passed in the presence of the counsel for the respondent Financial Institution. Thereafter, the case came up for hearing on 07.09.2018, when it was decreed ex- parte, holding that despite effective service appellants - then the defendants - had failed to submit application for leave to defend. Appellants filed application for seeking setting-aside of ex-parte decree, upon which notices were issued on 15.10.2018. Application was heard and dismissed on 12.03.2019, hence, this appeal. 3. Learned counsel for the appellants contends that pursuant to the notices issued in terms of order dated 24.05.2018 service was affected and application for leave to defend was filed on 3rd September 2018 - first day of the opening of this court after summer vacations - in the office, however notwithstanding the availability of application, same was not placed…

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