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

Section: XLVI,19,22

Law: Civil Procedure Code (V of 1908)

Section: XXI,66

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----Ss.19 & 22---Civil Procedure Code (V of 1908), O.XXI, R.66---Execution proceedings---Public auction---Reserve price---Determining factors---Appellant / judgment debtor was aggrieved of auction proceedings and dismissal of his objections---Contention of appellant / judgment debtor was that reserve price was not properly fixed---Validity---In public auctions it is imperative that reserve price is determined in the most transparent manner because it is in the interest of all the parties that mortgaged asset must fetch best and highest price---Before finalization of reserve price, there are two conditions precedent; first, to ensure that independent evaluators from the list of Pakistan Banks Association have been appointed who may evaluate the property according to its location, commercial value as well as assess rate compatible to DC rates value---Executing Court instead of determining reserve price through independent source proceeded on the wishful thinking of decree holder bank---Record was bereft of sufficient material justifying that on what clue or commercial assessment bank presented reserve price--Secondly while attempting sale of property of judgment debtor for execution and satisfaction of decree, wide publicity should be given through proclamation of sale in order to fetch the highest and most handsome price for the property---Such an exercise assisted in attracting the attention of participation of public at large and compliance thereof would maintain balance and protect rights and liabilities of parties according to established norms and standards---High Court set aside order passed by Executing Court, dismissing objections filed by judgment debtor, as the same was passed in violation of law---High Court remanded the matter to Executing Court to hold auction proceedings afresh from the stage of issuance of notices under O. XXI, R. 66, C.P.C.---High Court directed Executing Court that before holding auction reserve price should be determined after receiving evaluation report for the subject matter property through an independent evaluator--Appeal was allowed accordingly.…