Law:

Section:

Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997)---------Ss.9 & 10---Civil Procedure Code (V of 1908), Ss.10 & 11---Suit. for recovery of money by Bank---Leave application-Pendency of suit for damages previously instituted by defendant against Bank, wherein matter in issue in Bank's suit was directly and substantially in issue---Dismissal of leave application and passing of decree in favour of Bank---Validity---Sections 10 & 11, C.P.C., would not apply to such case---Provisions of S.9(2) of Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997 excluded applicability of S.10, C.P.C., in relation to suits filed under the Act---High Court set aside decree passed in favour of defendant in suit for damages---Defendant had admitted availing of finance and execution of documents, but had claimed to have liquidated liabilities---No case was made out for grant of leave to defend suit---Bank had filed suit for recovery of Rs.84, 71, 000 wherein principal amount was Rs.5,100 Million---In view of pendency of suit for damages, High Court granted conditional leave and to secure principal amount directed defendant to furnish bank guarantee to the tune of Rs.2. Millions and submit surety bond for sum of Rs.3.1 Millions within two months---High Court accepted appeal, set aside impugned /decree and granted such conditional leave directing Banking Court to decide suit after fulfilling such condition by defendant, otherwise leave application would be deemed to be dismissed. JUDGMENT MIAN HAMID FAROOQ, J.---Messrs Ravi Enterprises and two others, the appellants, through the. filing of the present first appeal, have called in question judgment and decree dated 12-10-2000, whereby the learned Judge Banking Court, after dismissing appellant's application for the grant of leave to defend the suit, proceeded to pass a decree for recovery of Rs.49,99,593, against the appellants. 2. Precisely stated the facts, relevant for the decision of the present appeal, are that the respondent-Bank filed the suit for recovery of Rs.84,71,000, with future mark-up at the rate of 20%, against the appellants, before the learned…

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