Law:

Section:

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----Ss. 9 10---Suit for recovery of finances---Petition for leave to defend---Markup beyond the expiry period of agreement---Scope---Plaintiff filed a suit for recovery of certain amount outstanding in respect of finance facilities availed by the defendant company---Validity---Defendant company, its directors and guarantor had admitted availing of the finance facilities---Contention of defendants regarding claim of markup made in the plaint by the bank had considerable force---With regard to the Letter of Credit facility, markup had been claimed---On the contrary, no such claim was raised in the plaint---What was due to the plaintiff was an amount of commission, which was fixed as flat 0.20% per quarter (LC pending only)---There was no basis for claiming an amount of markup on the facility of letter of credit---With respect to other finance facilities, any amount charged beyond the date of expiry of agreement was unlawful---No other issue was raised by the defendants which entitled them to the grant of leave to appeal---Application for leave to defend was dismissed---Suit was decreed against the defendant company, its directors and guarantor jointly and severally for a certain amount with costs of funds in terms of S. 3 of the Financial Institutions (Recovery of Finances) Ordinance, 2001. JUDGMENT SHAHID KARIM, J.---This judgment will decide P.L.A. No.2018 of 2021 filed on behalf of the defendants Nos.1 to 4. Remaining are proforma defendants and claim to have charges of varying nature on the mortgaged properties. 2. It is the case of the plaintiff as set up in the plaint that the defendants have been availing finance facilities since 2015 which were enhanced and renewed from time to time. These facilities were secured by mortgage and other charge on movable and immovable assets of defendant No.1 company. In the year 2017 the defendants made a request for renewal and sanctioning of new facilities which was done on 14.7.2017 and a facility offer letter was issued. The finance facilities consisted of Letter of Credit Facility for an amount of Rs.1,206,000,000/- for purchase of petroleum and…

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