Law:

Section:

Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997) Ss.10 & 21 Leave to defend the suit Serious and bona fide dispute Borrower imported goods on account of the Bank and on the failure of the importers to clear the goods after retiring the documents and making the payment the Bank was stuck ¬Borrowers were saddled with the documents and a liability ¬Dispute did exist between the Bank and the borrower, in the present case and, therefore, the leave to defend should have been granted by the Banking Court and matter disposed of on merits Judgment and decree passed by the Banking Court were set aside and leave to defend was granted Appeal was allowed accordingly. JUDGMENT ZAHID QURBAN ALAVI, J. An appeal has been filed under section 21 of the Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act. Through this appeal the appellant has assailed the judgment and decree dated 8 12 1997. Primarily it seems that the appellant as customer had obtained Financial Facilities from the respondent's Bank under the law which was not based on interest. A Letter of Credit was opened for importing RBD Palm Oil and for ordriferous substances. Two L/Cs were dated 31 2 1994 and were for U.S. $ 248.000 equal to Pakistani Rupees 13,713,864. The appellants and respondent's Bank had a dispute in respect of the imported consignment which resulted in a Suit No. 379 of 1994 which is pending. On 31 10 1996 almost 3 years thereafter a suit was filed by the Bank against the appellants before the Banking Tribunal which was Suit No.536 of 1996. A written statement was filed on 7 4 1997, thereafter the matter was transferred to the High Court as the new law came into the effect known as Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act. This suit was decreed by a Single Judge with mark up. The Suit No.379. of 1994 was still pending and the matters and questions in Suit No. 1396 of 1997, were directly and substantial in issue in Suit No.379 of 1994. It may be appreciated that the Second Suit No 536 of 1997 when it was transferred to the High Court was renumbered as Suit No. 1396 of 1997. Apparently the appellants…

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