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

Section: 3

(a) Banking Companies (Recovery of Loans) Ordinance (XIX of 1979)---Ss. 3, 6(1)(a), 7(2) & 8(3)--Civil Procedure Code (V of 1908), Preamble & O.XXXVII, R. 7--Special Banking Court, while trying a suit has to follow the procedure laid down in the Code of Civil Procedure particularly the summary procedure provided for in O.XXXVII, C.P.C. Having regard to section 3, section 6(1)(a) and section 7(2) of the Banking Companies (Recovery of Loans) Ordinance, 1979 it is clear that while trying a suit the Special Court has to follow the procedure laid down in the Code of Civil Procedure particularly the summary procedure provided for in Order XXXVII. It may further be noted that by virtue of the fact that section 7(2) expressly provides that in all suits the Special Court shall follow the summary procedure provided for in Order XXXVII, C.P.C. It follows that as provided by Rule 7 of the said Order, the provisions of the procedural law in regard to ordinary suits filed in Civil Courts, is to be followed save as provided by the said Order. In other words the only distinction between the procedure applicable to a suit instituted in the ordinary manner and a suit under Order XXXVII is that the defendants cannot appear and defend the suit as a matter of right but only after he obtained leave to defend on showing that there is a triable issue. (b) Banking Companies (Recovery of Loans) Ordinance (XIX of 1979)-- ---Ss. 3, 6(1)(a), 7(2) & 8(3)--Civil Procedure Code (V of 1908), Ss. 4(1) & 141--Special Banking Court, while exercising its civil jurisdiction, has to follow the procedure laid down in regard to the suits in the C . P. C . except to the extent any contrary provision is made in the Ordinance--Wherever the provisions of the Ordinance are repugnant to the provisions of Civil Procedure Code, former will override the latter. Reading sections 4(1) and 141, C.P.C. together the position that emerges clearly, is that while exercising its civil jurisdiction the Special Court has to follow the procedure laid down in regard to the suits in the C . P. C . except to the extent any contrary provision is made in the special enactment. Therefore, wherever the provisions of the…

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