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Banking Tribunals Ordinance (LVIII of 1984)-------S.6---Suit for recovery of loan amount---Banking Tribunal decreed suit partly, but refused to allow liquidated damages and compound interest---Validity---Impugned decree was strictly according to statement of accounts of defendant maintained by Bank itself---High Court dismissed appeal in circumstances. JUDGMENT MUHAMMAD MUZAMMAL KHAN, J.---Instant appeal assails judgment and decree dated 24-6-1996 passed by the Banking Tribunal-IV, Lahore, whereby a decree for an amount of Rs.11,18,787 was passed in favour of the appellant, as against its claim of Rs. 19,79,230.50. 2. A short factual background of the case is that respondent No.1 being in the dairy business, was exclusively owned by respondent No.2, who opened an account with the appellant-Bank, McLeod Road Branch, Lahore, on 16-2-1987. Respondent No.1 applied to the appellant-Bank for grant of cash finance facility, which was allowed to it vide advice dated 25-7-1987 to the extent of Rs.225(M) on mark-up basis against hypothecation of stock and registered mortgage deed with another advance of Rs.775(M) on hire purchase finance facility in the year 1988-89 and 1989-90. Respondent No.1 again requested the appellant-Bank to render it facility of C.S.F., which was also allowed by way of move-over. Respondent No.1 availed the finance facility to the tune of Rs.1.0 million and the outstanding amount, in both the above referred facilities, according to the appellant-Bank, came to Rs.19,79,230.50. The appellant-Bank got secured the finance facilities rendered to the respondents through execution of promissory notes, letter of hypothecation and agreement of finance from the respondents. On refusal of the respondents to pay back the outstanding amount, a suit for recovery of the above mentioned amount was filed before the Banking Court, wherein notices in terms of section 6(2) of the Banking Tribunals Ordinance, 1984, were ordered to be issued to the respondents on 15-4-1996. The respondents filed reply to the show-cause notice on 9-5-1996 within. the specified statutory period. 3. The Banking Court on 24-6-1996 after perusal of the record and hearing arguments of the…

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