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

Section: 10,9,22

Financial Institutions (Recovery of Finances) Ordinance, (XLVI of 2001)--- ----Ss. 10, 9 22---Suit for recovery---Leave to defend, application for---Adjudication by Banking Court upon application for leave to defend---Substantial questions of law and facts---Scope---Application for leave to defend was rejected, and suit was decreed in favour of plaintiff Bank---Contention of the defendants, inter alia, was that in their application for leave to defend, they had objected to charging of markup on period when finance facility was temporarily extended and also raised issue of unauthorized debits from their account, and both such material questions were not considered by Banking Court when their leave to defend was rejected---Validity---Perusal of record revealed that temporary extensions were governed and regulated in accordance with conditions of finance facility in terms of offer letter and markup was charged accordingly, and defendants having benefited from such extension/financial accommodation, could not avoid obligations incurred under the same--- Objection regarding unauthorized debits was not supported by record and was merely an afterthought---High Court observed that no substantial questions of law and fact were raised in application for leave to defend, and therefore same was rightly rejected by Banking Court---Appeal was dismissed, in circumstances. JUDGMENT ASIM HAFEEZ, JUSTICE:---.--- This appeal, under section 22 of Ordinance Financial Institutions (Recovery of Finances) Ordinance 2001, (the Ordinance), arises out of judgment and decree dated 19.01.2017, by learned Single Judge in Chambers, whereby recovery suit of the respondent No.1, Financial Institution, under section 9 of the Ordinance, was decreed for Rs.140,304,744.64/- along with Cost of funds in terms of section 3 of the Ordinance and costs of the suit. 2. Briefly the facts, necessary for adjudication of instant appeal, are that appellants requested for grant of finance facilities. In terms of facility offer letter of 28.04.2010, Cash Finance facility (CF-pledge) for Rs. 120.000 Million, Running Finance (RF) facility for Rs. 50.000 Million and FADD/IBP facility for Rs.10.000 Million were…

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