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

Section: 3(2),7,9,22

Law: Contract, Act, 1872

Section: 73

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----Ss. 3(2), 7, 9 22---Contract Act (IX of 1872), S. 73---Procedure of Banking Court---Suit for recovery---Lease finance for equipment---Default in monthly rental payments to Financial Institution by customer---Recovery of additional lease rental on overdue payments---Scope Financial Institution impugned order of Banking Court whereby its claim on additional lease payments for overdue payments, as provided for in lease agreement, was disallowed---Validity---When cost of suit and cost of funds had been awarded by Banking Court in harmony with S. 3(2) of the Ordinance, then the same adequately protected interest of Financial Institution by reimbursing and compensating it for obstruction of funds---Any additional compensation such as additional lease rentals for overdue payments would amount to penalizing costumers and a default in lease finance contract could not have consequences of overpayment by customers and undue fiscal gain for Financial Institution---Allowing such payments would be contrary to S. 73 or Contract Act, 1872 as sufferer of breach could recover compensation only for loss or damage which naturally arose in usual course of things from such breach---No illegality therefore existed in impugned order---Appeal was dismissed, in circumstances. Muhammad Farooq Azam v. Bank Al-Falah Limited and others 2015 CLD 1439; Habib Bank Ltd. v. Karachi Pipe Mills Ltd. 2006 CLD 842; Messrs United Bank Ltd. through Authorized attorneys v. M. Mubeen Khan 2012 CLD 1995; Emirates Global Islamic Bank Ltd. v. Muhammad Abdul Salam Khan 2013 CLD 1291; Dr. Faiz Rasool and others v. The Askari Bank Limited through Branch Manager/Authorized Authority 2015 CLD 1710; Khurram Farooq v. Bank Al-Falah Limited and another 2018 CLD 1417; Apollo Textile Mills Ltd. and others v. Soneri Bank Ltd. 2012 CLD 337 and Passco v. Omer Bilal Traders (Pvt.) Limited 2007 CLD 492 rel. JUDGMENT SULTAN TANVIR AHMAD, J.--- This First Appeal has been filed under section 22 of the Financial Institutions (Recovery of Finances) Ordinance, 2001 (XLVI of 2001) (FIO, 2001) by ORIX Leasing Pakistan Limited to seek modification of…

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