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

Section: 3,9,22

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----Ss. 3, 9, 22---Suit for recovery of Bank loan---Cost of funds---Mark up beyond agreement period---Suit filed by respondent/Bank was decreed against appellant/defendant along with markup---Validity---Customer who defaulted in installment of obligations was liable to pay cost of funds for the period from date of default till its realization as certified by State Bank of Pakistan, besides other liabilities accrued under any contract agreement---Agreement executed by appellant/ defendant in favour of respondent/Bank did not exonerate him from payment of markup in the event of his default---Basic aim and theme behind such provision of law was to compensate financial institutions for finance blocked on account of breach of fulfillment of obligation by a customer---Banking Court duly attended the controversy involved in the matter and while disallowing application of appellant/defendant for grant of leave to defend, had rightly decreed suit of respondent/Bank through and decree in question---High Court declined to interfere in the and decree passed by Banking Court as the same did not suffer from any illegality, misreading or non-reading of record---Appeal was dismissed in circumstances. JUDGMENT QAISER RASHID KHAN, C.J.---Through the appeal in hand, the appellant has called in question the judgment and decree of the learned Judge Banking Court-II, Peshawar dated 11.11.2021, whereby, his leave to defend application was dismissed and the recovery suit of the respondent-bank was decreed against him with costs of funds and costs of the suit. 2. Arguments heard and the available record perused. 3. As the record unfolds, it was the appellant, who applied for the grant of finance facility under the Prime Minister Youth Loan Scheme to the respondent-bank, whereby, an amount of Rs. 15,39,000/- was sanctioned in his favour vide Sanction Advice dated 22.09.2015, which was duly availed of by the appellant. In this regard, the appellant executed the charge documents including the Finance Agreement, Demand Promissory Note and Letter of Hypothecation with the respondent-bank. By way of collateral…

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