| Citation(s) |
|---|
| 2022 SLG 593 2022 SLD 593 2022 CLD 251 |
Lahore High Court
R.F.A. No. 40272 of 2021, decided on 29th September, 2021. Date of hearing: 29th September, 2021.
ABID AZIZ SHEIKH, JUSTICE, MUHAMMAD SAJID MEHMOOD SETHI, JUSTICE
Muhammad Yousaf Chaudhary for Appellant-Bank. Ghulam Hussain Chaudhary for
Respondent No.2. Ahmad Zia Ch., Civil Judge/Research Officer, LHCRC and Muhammad Imran Sh., Additional District Judge/Senior Research Officer, LHCRC for Research.
R.F.A. No. 40272 of 2021, decided on 29th September, 2021. Date of hearing: 29th September, 2021.
ABID AZIZ SHEIKH, JUSTICE, MUHAMMAD SAJID MEHMOOD SETHI, JUSTICE
Muhammad Yousaf Chaudhary for Appellant-Bank. Ghulam Hussain Chaudhary for
Respondent No.2. Ahmad Zia Ch., Civil Judge/Research Officer, LHCRC and Muhammad Imran Sh., Additional District Judge/Senior Research Officer, LHCRC for Research.
SME BANK LIMITED THROUGH BRANCH MANAGER
VS
MESSRS PUNJAB STORE THROUGH PROPRIETOR AND ANOTHER
Law: Financial Institutions (Recovery of Finances) Ordinance, 2001
Section: 3,9
(a) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----Ss. 3 9---Suit for recovery---Running Finance Facility with multiple renewal/enhancement was availed by respondents---Banking Court held the suit infructuous and disentitled appellant/Bank---Validity---Record showed default on the part of respondents in repayment of obligations within stipulated time whereupon Banking Court was obliged to pass decree to that effect and grant cost of funds as per law---Default in discharge of such obligation not only incurred the cost of funds under S. 3(2) of Financial Institutions (Recovery of Finances) Ordinance, 2001, but was also actionable under S. 9 of the Ordinance---Appeal was allowed and appellants suit was decreed to the extent of cost of funds from the date of default till the date of realization to be determined/calculated by Banking Court as per law. Habib Bank AG Zurich through Manager v. Mustafa Shamsuddin Ghatilla and 2 others 2003 CLD 658 distinguished. (b) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----S. 3---Banking court, power/duty of---Section 3 of Financial Institutions (Recovery of Finances) Ordinance, 2001, was not procedural in nature as the same imposed pecuniary burden on defaulting customer and entailed substantive obligation---Banking Court had been empowered to award cost of funds as compensation to financial institution for finance blocked/stuck up due to breach in the fulfillment of obligation by customer, after determining the date of default. Habib Bank Limited through Authorized Attorneys v. Pak Poly Products (Pvt.) Ltd. and 3 others 2013 CLD 1661; Shamil Bank of Bahrain E.C. v. MianAyaz Anwar and 6 others 2015 CLD 893; Ghulam Jaffar Phulpoto v. Messrs Allied Bank Ltd. and another 2015 CLD 1416; Bank Alfalah Ltd. v. Syed Zulfiqar Ali Rizvi and 3 others 2016 CLD 618; Pak Libya Holding Company (Pvt.) Ltd. v. Maxco (Pvt.) Ltd. and 2 others 2016 CLD 1147; Bank of Punjab through Attorney v. Dewan Salman Fiber Ltd. 2017 CLD 451; Messrs Habib Metropolitan Bank Ltd. v. Messrs Faizan Ali and Company (Pvt.) Ltd. 2017 CLD 1583; Messrs Divine Developers (Pvt.) Ltd. and others v. Bank of Punjab…
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