Law:

Section:

(a) Banking Companies (Recovery of Loans) Ordinance (XIX of 1979)-- .S. 7 read with Civil Procedure Code (V of 1908), O. XXXVII, rr. 2 & 3-Summary procedure-Failure to follow prescribed rules-­Courses open to Special Judge (Banking) on transfer of case from civil Court : either to act on evidence recorded by civil Court and decide case after hearing arguments or to follow summary procedure provided in O. XXXVII of Civil Procedure Code, 1908-Special Judge if electing to follow summary procedure should have first acted in accordance with r. 2 of O. XXXVII and issued special summons prescribed in Form 4 to Appendix B, such being condition precedent to conferring jurisdiction and to enable defendant to appear and move application for leave to defend suit-Statute providing a procedure for doing a thing in a particular manner such thing to be done in manner prescribed and in no other way-Written statement already filed, evidence recorded, and case ripe for -Special Judge on case being transferred to him instead of issuing special summons in Form 4 of Appendix B issuing ordinary process for appearance of defendant and without any application supported by affidavit as contemplated by O. XXXVII, r. 3 passing impugned order, such order, held, having been passed without jurisdiction, illegal and also arbitrary, for reason of having not been passed as a matter of course without applying mind to relevant facts and law. (b) Banking Companies (Recovery of Loans) Ordinance (XIX of 1979)- -- S. 7 read with Civil Procedure Code (V of 1908), O. XXXVII, rr. 2 & 3-Recovery-Summary procedure-Court, duty of-Loan secured or defendant having primajacie good case-Court to grant unconditional leave to defend-Defendant having only an arguable case, Court may grant leave subject to furnishing security--No appeal or revision lying against interlocutory orders such orders to be passed with care and caution after application of mind to facts of case and without imposing harsh conditions not in accord with situation­Trial Court in event of imposing harsh condition, i.e. payment of entire amount in Court, expected to pass a speaking order. (c) Banking Companies (Recovery of Loans)…

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