Law: Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997

Section: 9

(a) Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997)---Ss. 9 & 10---Suit for recovery---Company (appellant) filed an application for grant of leave to defend suit, which application was dismissed by the Banking Court---Contentions of the company were that the application for grant of leave to defend the suit disclosed such facts which necessitated the recording of evidence; that in the said application the company had denied the execution of any agreement pertaining to the loan, and that it had specifically stated that the amounts in question had never been disbursed; that the original statement of accounts was substituted by a secondary statement of accounts, which could not be taken into consideration in view of the Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001); that the documents produced by the bank (respondent) were not verified in accordance with the Bankers' Books Evidence Act, 1891, and that the recovery suit did not contain all the required documents---Validity---Plaint filed by the bank was not accompanied by the statement of accounts---Original statement of accounts was substituted by another statement of accounts---Documents had not been verified in accordance with the Bankers' Books Evidence Act, 1891---Property of the company was under mortgage---Company had set up an arguable case and its application for leave to defend contained facts which necessitated the recording of evidence---Appeal was accepted and the company was granted leave to defend the suit. Messrs Liaqat Flour and General Mills through Partners and 3 others v. Messrs Muslim Commercial Bank Ltd. 2007 CLD 188; Healthco Surgical Supplies and 4 others v. Standard Chartered Bank (Formerly Chartered Grindlays Bank, Anz Grindlays Bank) 2006 CLD 1587 and Soneri Bank Limited v. Classic Denim Mills (Pvt.) Limited and 3 others 2011 CLD 408 ref. (b) Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997)--- ----Ss. 9 & 10--- Application for leave to defend---Grant/denial---Scope---Law had to be interpreted in favour of a party whose right to defend had been denied--- Where leave to defend was…

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