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

Section: 9(5),10(1)

(a) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)---

----Ss. 9(5) & 10(1)---Suit for recovery filed by the bank against the borrower /company as well as its directors/guarantors---Petition to leave to defend---Failure of the defendant(s)---Petition for leave to defend ('PLA') purportedly filed by all/eight defendants (company and its directors/guarantors) showed that only three (out of eight) defendants had signed the same who had also filed their affidavits in (their respective) personal capacity and no PLA had been filed on behalf of rest of the (five) defendants---As per provisions of the Ss.10(1) & 9(5) of the Financial Institutions (Recovery of Finances) Ordinance, 2001 ('the Ordinance, 2001'), where the defendant fails to file PLA and obtain leave from the Court to defend the suit, the allegation of facts in the plaint shall be deemed to be admitted and the Court may pass a decree in favour of the plaintiff on the basis of plaint or other material---PLA having not been filed by the all the defendants, the allegations of fact including availing of loan facility by the defendant/company was deemed to be admitted---No substantial question of law and fact had been raised in PLA filed by the defendants, which required recording of evidence for its resolution, therefore, PLA filed by the said defendants was dismissed, in circumstances---Suit was decreed in favour of plaintiff / bank and against defendants jointly and severally.

(b) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)---