Law: Code Of Civil Procedure, 1908.

Section: 19(1), (2) & (3)

Law: Financial Institutions (Recovery of Finances) Rules, 2018

Section: 15(5)–(12)

Law: Sindh Finance (Second Amendment) Ordinance, (XVI of 2001)

Section: 3 & 4

 SUMMARY
The Banking Court allowed the Decree Holder Bank’s application under Section 19(3) of the Financial Institutions (Recovery of Finances) Ordinance, 2001, permitting it to conduct a public auction of mortgaged/charged properties without the Court’s intervention. The Court held that Section 19 constitutes a complete code for execution of banking decrees and empowers the Court, at any stage of execution, to permit a financial institution to sell charged assets through public auction or sealed tenders, subject to statutory safeguards. Commencement of execution proceedings under the CPC does not permanently bar the Court from allowing a switch to another lawful mode of execution, provided a conscious judicial order is passed. As no meaningful steps had been taken under CPC-based auction proceedings, and sale without Court intervention would expedite recovery, permission was rightly granted. Ancillary CPC auction orders were recalled, and execution was adjourned sine die.

TAG LINE
Banking Court may permit sale of mortgaged assets without Court intervention even after CPC execution has commenced.

ORDER;