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

Section: XLVI,19(7)

Law: Civil Procedure Code (V of 1908)

Section: 12(2),151

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----S.19(7)---Civil Procedure Code (V of 1908), Ss. 12(2) & 151---Transactions / proceedings qua advancing / recovery of finance / loan---Fraud, plea of---Banking Officials / Court, function / responsibilities of---Scope and effect---An application under S. 12(2), C.P.C and S.19(7) of the Financial Institutions (Recovery of Finances) Ordinance, 2001 having been filed by the Appellant (lady) in execution proceedings was dismissed by the Banking Court---Appellant had filed said application seeking setting aside of a judgment and decree as well as the order passed in favour of auction purchasers on the ground that the same were obtained through fraud and concealment of real facts---Banking Court did not agree with what was pleaded in the application under S. 12(2), C.P.C. on the basis of the findings concluded, after recording evidence, in an application under S. 151, C.P.C. which was earlier filed by the auction purchasers /respondents for implementation of the judgment and decree---Validity---After the application by the auction purchasers under S. 151, C.P.C was filed, the Karachi Development Authority (KDA) officials had come forward and had apprised the Court that the property stood in the name of appellant---Instead of making efforts to find the appellant, the Court simply concluded, when the bailiff reported that no such woman in the name of appellant was residing in the said address since long, that she was a fake person and KDA officials being in collusion with respondent (lady customer) had forged the documents by recording mutation in favour of appellant---Court did not change such view even after appellant filed application under S. 12(2), C.P.C. with her signature supported by her own affidavit---Court did not realize either that conveyance deed in favour of the appellant was prior to mortgage of the property and therefore, when at the time the property was mortgaged by respondent /customer, the same had already changed ownership in favour of the appellant--The apparent negligence of the bank officials in either accepting the loan application without original title documents…