Law:

Section:

(a) Financial Institutions (Recovery of Finances) Ordinance (LXVI of 2001) S. 10(6) Expression sufficient cause' Scope ¬Application for leave to defend the suit was to be rejected under S.10(6) of Financial Institutions (Recovery of Finances) Ordinance, 2001, for the failure of defendant to meet with the requirement of Ss. 10(3) & 10 (4) of Financial. Institutions (Recovery of Finances) Ordinance, 2001, as the provisions were mandatory in nature Cushion was available to the defendant, who failed in this behalf, to disclose sufficient cause' for his inability to meet the requirements. (b) Financial Institutions (Recovery of Finances) Ordinance (LXVI of 2001) Ss.2(d), 9 & 10 Recovery of bank loan Term finance' ¬Connotation Undue influence, coercion or illegality on part of the bank Proof Defendants in their application for leave to defend the suit, raised the plea that in fact the amounts claimed by the bank were not the finance' as the bank had agreed to enter into a partnership, with the defendants for the purpose of the project, on the basis of equity and such contribution towards equity participation was not the finance' Further plea raised by the defendants was that due to undue influence, coercion or illegality on part of the bank, the defendants were forced to sign finance agreements with the bank Validity Plea was contradictory, because, it was the case of the defendants that the bank did not provide equity as committed, rather compelled the defendants for other kinds of the transactions, which admittedly were covered by the definition of finance given in law, therefore, equity which was not given, could not be pressed during the trial to avoid the consequences of failure to meet the conditions of S.10 of Financial Institutions (recovery of Finances) Ordinance, 2001 High Court declined to hold the transaction as equity in partnership just for the reason that certain transactions were allegedly forced upon the defendants and they were compelled to enter into the transactions by the exercise of undue influence and financial coercion, by the bank -Assertion of the defendants that the bank backed out from equity participation and compelled the…

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