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

Section: 9,3,10,17

(a) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----S. 9--- Suit, filing of--- Pre-conditions--- Suit by a 'financial institution' or a 'customer' can be instituted by one against the other only in case of 'default' in fulfillment of any 'obligation' with respect to any 'finance'. (b) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----S. 9---Pre-mature suit--- Effect--- In case Banking Court concludes that 'default' alleged in plaint was non-existent at the time of institution of suit but it matured due to afflux of time during pendency of the suit, Banking Court in exercise of judicial discretion can grant relief by decreeing the suit. (c) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----Ss. 3, 9, 10 & 17---Suit for recovery of finance with cost of funds---Pre-mature cause of action---Effect---Defendant company availed facility from plaintiff-bank which was restructured on a number of occasions on account of default by defendant company---Defendant company defaulted the facility under Finance Rescheduling Agreement which matured during pendency of the suit---Plaint was supported by all necessary finance and security documents and was also accompanied with certified statement of accounts---Not a single instalment either with respect to principal or mark-up component was paid under Finance Rescheduling Agreement---Effect---Question to determine amount due in terms of any payment made by defendant company did not arise---Principal and mark-up components under the last Finance Restructuring Agreement were Rs. 390,000,000/- and Rs. 35,792,917.81/-, respectively, the sum total of which amounted to Rs. 425,792,917.81/- as on 21-02-2019---Nothing was paid thereafter against the amount due---High Court deducted amount of fine imposed on the plaintiff-bank, whereafter the amount had come to Rs. 420,792,917.81---High Court denied additional amount of claimed mark-up and allowed cost of funds from the date of default under S. 3 read with S. 17 of Financial Institutions (Recovery of Finances) Ordinance, 2001---Suit was decreed accordingly. Pakistan Mobile Communication Ltd. and others…

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