Law: Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997

Section: 10

(a) Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997)----S.10---Islamic System of Banking ---Lender has to act reasonably and cannot take advantage of its position. (b) Banking Companies Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997)--S.10---Application for leave to defend---Charging of mark-up alongwith commission-­Sanction advices did not refer to mark-up and plaintiff-Bank could claim and agreed amount of commission alone---Amount of such mark­up claimed by plaintiff-Bank was separately calculated and could be segregated without taking the matter to evidence---Where the commission agreed between the parties had been charged by the plaintiff-Bank and was included in the principal amount shown in the statement of accounts, no further commission could be claimed by the plaintiff-Bank--­Where there was no serious question requiring evidence, the defendants were not entitled to grant of leave to defend the suit--­Application for leave to defend was dismissed in circumstances. (c) Approbate and reprobate--- ---- Principle of---Applicability---Where a person relied on one document in respect of a particular transaction, but disputed effectiveness of the same document in relation to the other aspects, such a person could not be allowed to approbate and reprobate. (d) Contract Act (IX of 1872)--- ----S.133---Surety, discharge of---Variance in terms of contract between principal debtor and the creditor, without the consent of surety---Effect---Such a guarantor could not be held liable unless his assent was shown to have been obtained. (e) Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997)--- ----S.9---Suit for recovery of loan---Loan was advanced to the defendant/borrower under the facility of import letters of credit, and the same was to be recovered---Plaintiff-Bank had retained title documents of mortgaged properties with them---Defendant/borrower accepted the principal amount of dues but denied the mark-up and double commission contending that the same was against the sanction advice---Validity---Mark-up and further commission was disallowed and the suit was decreed to…

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