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

Section: 15, 15(6)

(a) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)-------S. 15---Execution of decree of Banking Court---Sale of mortgaged property under S. 15 of the Financial Institutions (Recovery of Finances) Ordinance, 2001---Striking down of S. 15 of the Financial Institutions (Recovery of Finances) Ordinance, 2001 by the Supreme Court in National Bank of Pakistan v. Saif Textile Mills [PLD 2014 SC 283]---Effect in cases where auction proceedings were initiated before striking down of said provision, but not finalized---Past and closed transactions---Scope---Appellant impugned the order of Banking Court whereby application of auction purchaser Bank, for issuance of writ of possession for mortgaged property under S. 15(6) of the Financial Institutions (Recovery of Finances) Ordinance, 2001; was allowed---Contention of appellant/ debtor was inter alia, that since S. 15 of the Financial Institutions (Recovery of Finances) Ordinance, 2001 was held to be ultra vires of the Constitution and struck down by the Supreme Court, the entire auction process carried out by the Financial Institution was a nullity in the eye of the law---Validity---Present matter was not a past and closed transaction as neither the possession had been delivered to the auction-purchaser Bank nor any sale deed had been executed, and only proceedings of auction had taken place where in fact the Bank itself purchased the mortgaged property---High Court observed that the criteria for determining past and closed transactions as held in National Bank of Pakistan v. SAF Textile Mills [PLD 2014 SC 283]; was fully attracted to the present case and auction proceedings could not be sustained and were liable to be set aside---Appeal was allowed, accordingly.Muhammad Umer Rathore v. Federation of Pakistan 2009 CLD 257; National Bank of Pakistan and 117 others v. SAF Textile Mills Ltd. and another PLD 2014 SC 283 and Shaikh Abdul Sattar Lasi v. Federation of Pakistan through Secretary, Ministry of Law, Justice and Parliamentary Affairs, Islamabad and 6 others 2006 CLD 18 rel.(b) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)-------S. 15(2)---Execution of decree of Banking…