Law: Banking Companies (Recovery of Loans), Ordinance, 1979

Section: 3 , 34

(a) Banking Companies (Recovery or Loans) Ordinance (XIX of 1979)--- 7---S.3----- Civil Procedure Code (V of 1908), OXXXVII, R.3 & S.34-- Recovery of Bank loan---- Defendant having applied for permission to defend suit, failed to -appear on date of hearing, whereupon, Court passed a decree in terms of plaint but disallowed interest    Plaintiff, however, was entitled to the real worth of loaned amount in terms of constant value of the currency as on the date the debt was incurred or fell due. Aijaz Haroon v. Inam Durrani PLD 1989 Kar. 304; Miss Farhat Jaleel v. The Province of Sindh and others PLD 1990 Kar. 342; Aziz A. Sheikh v. Commissioner of Income-tax PLD 1989 SC 613; Ghulam Ali v. Ghulam Sarwar Naqvi (Mst.) PLD 1990 SC 1 and Ms. Benazir Bhutto's case PLD 1988 SC 416 rel. M flanking Companies (Recovery of Loans) Ordinance (XIX of 1979)--- ---- S.3---Lendings by banking institutions---- Expenses incurred by Bank to maintain staff and establishment besides incurring other day to day relative expenditure --- Entitlement to such expenses--------------------------------------------------- Expenditures incurred by a banking institution would be met if an amount of two per cent. per annum was allowed to a lender, on the principal amount due from the date it fell due up to the date of recovery         Such expenses, exclusively devised for bankers, would always be in the nature of accretions, though the equaliser could operate as an ostensible accretion in inflationary time and depletion in deflationary situations, for he who had borrowed must return the same in real worth to him from whom he borrowed. (c) Banking Companies (Recovery or Loans) Ordinance (XIX of 1979)--- ---- S.3 --- Suit for recovery of Bank loan   Suit was decreed in terms of principal amount plus accretions calculated at nine per cent. per annum from date o loan to specified date; and at twelve per cent. per annum from specified date to the date noted in the judgment and also to the date of realization of decretal amount without any rests to be calculated on the principal amount. Inamul Haq for the Plaintiff. Nemo for the…