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

Section: 3,9,10

Law: Bankers Books Evidence Act, 1891

Section: 4

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----Ss. 3, 9 10---Bankers Books Evidence Act (XVIII of 1891), S. 4---Suit for recovery of finances---Indoor management, doctrine of---Authority to file suit---Principle---Leave to defend the suit, refusal of---Effect---Suit for recovery of two finance facilities was filed by Bank against defendants---Validity---Statement of account was duly verified under Bankers Book Evidence Act, 1891 and entries therein were not consciously and lawfully disputed by defendants---Authority of person filing plaint on the strength of Power of Attorney was the question of doctrine of indoor management, that was concerned with authorization and was never considered as substantial question of law---Authorization from Power of Attorney was recognized in terms of S. 9 of Financial Institutions (Recovery of Finances) Ordinance, 2001 and on account of principle of Indoor Management, it was only the principal who could object to it---Defendants neither denied execution of agreement nor challenged authority to execute agreement with them on behalf of plaintiff bank---This was not a question of law that could form substantial question out of the pleadings in consideration of law of Financial Institutions (Recovery of Finances) Ordinance, 2001 and execution of documents in particular---Defendants availed two facilities i.e. Letter of Credit and Running Facility---High Court declined to grant leave to defendants and suit was decreed along with cost of funds in terms of S. 3 of Financial Institutions (Recovery of Finances) Ordinance, 2001---Suit was decreed accordingly. Apollo Textile Mills Ltd. v. Soneri Bank Ltd. PLD 2012 SC 268; Dewan Automotive Engineering Ltd. v. Soneri Bank Limited 2017 CLD 342; Ehsan-ul-Haq v. MCB Bank Limited 2016 CLD 1874 and KASB Bank Limited v. Mirza Ghulam Mujtaba 2011 CLD 461 rel. JUDGMENT MUHAMMAD SHAFI SIDDIQUI, J.---Brief facts, (as borne out of documents not disputed) are that defendant, engaged in business of marketing and sale of oil products, initially availed two financial facilities i.e. (i) one Letter of Credit for Rs.1,500,000,000/- and the other (ii) Running Finance for…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492