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---Suit for recovery---Computation of decretal amount----Adjudication by Banking Court---Scope Bank impugned order of Banking Court on ground that liability of defendant computed by Banking Court in decree was not in accordance with statement of account furnished by plaintiff and was significantly less than amount of finance payable by defendant to plaintiff Bank---Validity---Perusal of impugned order revealed that treatment of amount adjusted by Banking Court was done in a mechanical fashion without any reasoning for not considering entire claim of plaintiff---High Court set aside impugned order and remanded matter to Banking Court with direction to recalculate decretal amount in accordance with law and after providing parties opportunity of hearing and to make a well-reasoned order---Appeal was allowed, accordingly. JUDGMENT IRFAN SAADAT KHAN, J.--- The instant appeal has been filed against the judgment and decree dated 14.07.2014 and 22.07.2014 respectively passed in Suit. No.48 of 2013 (the Suit) by the Banking Court No. II at Karachi. Briefly stated that facts of the case are that the appellant is a Banking Company, which granted a Home Finance Facility of Rs.1,85,00,000.00 to the respondent, vide Sanction Advice dated 28.07.2009, which was repayable in 168 monthly installments along with lease rent/profit and other charges. The property mortgaged for obtaining the Finance was Bungalow No.77, Lane No.9, Phase-VI, measuring 600 square yards double storey, DHA, Karachi. The respondent apparently paid monthly installments only upto 11.09.2012, amounting to Rs.10,726,400/-, and defaulted thereafter. The Bank then filed the Suit for recovery of Rs.18,462,013/-. The matter proceeded before the Banking Court, where the respondent entered appearance through counsel and filed an application for leave to defend, which was dismissed vide order dated 10.05.2014, with both the parties being directed to file their detailed statement of accounts/breakups. Thereafter, following a hearing as to the extent of the liability, the Banking Court decreed the Suit…

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