Law:

Section:

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--------Ss.9, 10 & 22---Recovery of Bank loan ---Estoppel, principle of---Applicability---Demanding mark-up against the amount settled between the parties ---Loanee did not deny availing of loan facility but contented that he had deposited the amount as the same was settled with the Bank but the Banking Court had wrongly awarded mark-up beyond the settlement---Validity---Amount paid by the loanee under the settlement was accepted by the Bank and credited towards payment of mark-up and principal in accordance with the terms set out in the settlement letter---Having accepted the payment and appropriated the same towards mark-up and principal according to the terms, the Bank was estoppel from denying the existence of the agreement which stood created and acted upon---High Court m6dified the decree passed by the, Banking Court and the suit was decreed excluding the mark-up beyond the settled period accordingly. JUDGMENT JAWWAD S. KHAWAJA, J.---This appeal impugns the judgment and decree dated 15-2-2002 passed by the learned Banking Court No. II, Lahore. 2. The facts of the case are straightforward. The respondent-Bank filed a suit against the appellants-/defendants seeking recovery of a sum of Rs.1, 683, 526.15. The appellants-defendants filed an application seeking leave to appear and defend. They acknowledged their liability to pay a sum of Rs.5,00,000 together with service charges and denied ,the balance amount claimed by the respondent-Bank. Their case briefly stated was that they had obtained running finance from the respondent-Bank for a period of one year vide finance agreement dated 9-3-1991. The period of finance was extended from time to time. The last extension was allowed by the respondent Bank on 8-12-1994 and was for the period ending on 31-12-1995. On this basis it was asserted on behalf of the appellants-defendants that no amount by way of mark-up could have been charged by the respondent-Bank after 31-12-1995. The learned Banking Court after considering the contents of the application for leave to appear and defend filed by the appellants-defendants and after going through…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492