Law: Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997

Section: 9

Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997) � S. 9 Recovery of bank loan Amount deposited by defendants, non adjustment of Father of defendants died on 17 3 1996 who had secured loan facility from plaintiff bank Statement of account revealed that amount outstanding against the father of defendants on 31 3 1996 was Rs.4,53,071.86---Statement of account also revealed that on 19 9 1997, the defendants had deposited Rs.65, 000 in the account of their father under incentive scheme Defendants also deposited Rs.2,00,000 in obedience of order of High Court Effect Banking Court erred in law not to give benefit of Rs.65,000 deposited by the defendants under the incentive scheme Judgment and decree passed by Banking Court was modified after deducting the amounts already deposited by the defendants Appeal was disposed of accordingly.JUDGMENT CH. IJAZ AHMAD, J. The brief facts out of which the present appeal arises are that father of the appellants secured a loan facility in the name of Messrs Ghulam Hussain and company from the respondent Bank. An agreement was also executed between father of the appellants and respondent-Bank. According the terms and conditions of the agreement the appellants father had to repay the loan to the respondent-Bank in easy instalments. Father of the appellants failed to discharge liability on behalf of himself as well as on behalf of the company. The respondent Bank filed a suit for recovery of Rs.497,343.92 with future mark up at the contracted rate of 54 Paisas per thousand per day or at the latest rate of the Banking company for similar finance whichever is higher from the date of institution of the suit in Banking Court No.4, Lahore. The details of the mortgaged property are described in contents of para.5 of the plaint. 2. The appellants filed application for leave to appear and defend the suit which was partly accepted and after deducting the amounts of (i) Rs.20,401.96 and (ii) Rs.23,223.73 the suit was decreed for recovery of Rs.453,718.23. The appellants being aggrieved filed this appeal. 3. Learned counsel of the appellants submits that appellants have deposited Rs.65,000…