Law:

Section:

(a) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001) ¬ Ss.19 & 2(e) Execution of decree Judgment debtors had not denied that decree holder (Bank) had fulfilled its contractual obligation by rescheduling/ restructuring demand finance facility and by renewing working capital liability of the ¬-debtors Upon grant of rescheduling, restructuring and renewal of said facilities, the executory clauses, if any, of the agreement/ decree were converted into final terms which did not in any way suffer in executability Contention of the objectors that the decree holder bank had failed to perform its reciprocal promises was repelled having no merit. (b) Financial Institutions (Recovery) of Finances) Ordinance (XLVI of 2001) S.2(e) Renewal/rescheduling/restructuring of financial facilities which has been recognized as "obligation" as defined in S.2(e), Financial Institutions (Recovery of Finances) Ordinance, 2001 only ensues upon default, non payment, delayed payment or inability in payment of outstanding liability by a customer who normally seeks such concession upon admission and determination of liability Principles. Renewal/rescheduling/restructuring of financial facilities only ensues upon default non payment, delayed payment or inability in payment of outstanding liability by a customer who normally seeks such concession upon admission and determination of liability. By soliciting rescheduling or restructuring, as the case may be, a customer, in essence, either requests postponement of repayment of a finance on renewed terms as agreed between the parties or asks for reorganization/ refurbishing of financial basis of a finance and its liquidation. By approving rescheduling/ restructuring/ renewal of a financial facility, the bank forgoes its immediate right of recovery and enforcement of securities against the customer. The effect of rescheduling, restructuring and renewal of finance facility is mutually agreed by the parties to be absorbed by future interest, mark up charges or commissions till the agreed date of liquidation of liability. Rescheduling, restructuring and renewal is also thus a facility or accommodation granted by the bank to a…

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