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

Section: 9,10 (2), (3), (4), (5)

Law: Contract Act (IX of 1872)

Section: 128

Law: Bankers Books Evidence Act, 1891

Section: 4

Law: Negotiable Instruments Act, 1881

Section: 118

Law: Specific Relief Act, 1877

Section:

SummaryThis appeal arises from a judgment and final decree passed by the Banking Court No. II, Sukkur Division, decreeing a suit filed by M/s National Bank of Pakistan for recovery of Rs. 8,572,122.97/- under the Financial Institutions (Recovery of Finances) Ordinance, 2001. The appellants, who were borrowers and guarantors, challenged the decree alleging that they neither executed guarantee agreements nor had any legal obligation towards the bank. The Court examined documentary evidence including loan applications, mortgage deeds, guarantee agreements, and statements of accounts, all substantiating the bank's claim. The appellants failed to provide any credible evidence to disprove their liability or challenge the genuineness of the executed documents. The Court held that the appellants are jointly and severally liable as per Section 9 of the Financial Institutions (Recovery of Finances) Ordinance, 2001. The leave to defend application was rightly dismissed, and the appeal was accordingly dismissed, upholding the judgment and decree in favor of the bank.Core PointsThe appellants were borrowers and guarantors for an agricultural finance facility from the National Bank of Pakistan.Immovable property and hypothecation of crops were provided as security.The bank produced comprehensive documents including loan applications, guarantee agreements, mortgage deeds, and account statements.The appellants denied liability but failed to provide any evidence or documents to challenge the bank’s claim.The statement of accounts was certified and…

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