Law:

Section:

(a) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)-------S.9 (5)---Civil Procedure Code (V of 1908), O.IX, R.13. Form-4 of Appendix-B---Suit for recovery of bank loan---Setting aside of ex parte decree---Service on defendant. mode of--Non-compliance of mandatory provisions of S.9(5) of Financial Institutions (Recovery of Finances) Ordinance, 2001-Plaintiff-Bank filed suit for recovery of loan on 17-6-2004 which was registered on same day and issuance of summons in Form-4 of Appendix-B, C.P.C. along with proclamations in newspapers were ordered for service of defendants by Banking Court, for 27-7-2004---Defendants having failed to turn up on date fixed for hearing. Banking Court decreed the suit on 23-8-2004---Defendants moved application before Trial Court on 26-10-2004 for setting aside ex parte decree but the same was dismissed on ground of limitation---Defendant contended that ex parte decree was passed against them without fulfilling the requirements of S.9(5) of Financial Institutions (Recovery of Finances) Ordinance, 2001, hence the same was liable to be set aside---Validity---Held ex parte decree was passed by Trial Court without resorting to all modes of service prescribed under S.9(5) of the Ordinance---No genuine effort was made by the Court for effecting service on defendants as prescribed by relevant law---Ex parte decree which was passed in violation of principles of natural justice as well as mandatory provisions of S.9(5) of the Ordinance was a void document liable to be set aside even without recording evidence---Application filed by defendants for setting aside of ex parte decree was not to be dismissed on ground of being barred by limitation as no limitation was prescribed for void decree, document or order--Allowing appeal ex parte decree was set aside by the High Court. PLD 2002 SC 101 and PLJ 2005 SC 709 rel. (b) Financial Institutions (Recovery of Finances) Ordinance, (XLVI of 2001)--- ----S. 9(5)---Practice and procedure---High Court while deprecating procedure adopted by Banking Court, observed that instead of passing order in their own handwriting, Banking Courts used stereotype pro forma for summoning defendants…

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