Law: Financial Institutions (Recovery of Finances) Ordinance, 2001

Section: 3(3) & 9

Financial Institutions" (Recovery of Finances) Ordinance (LXVI of 2001)-----Ss.3(3) & 9---Recovery of Bank loan---Cost of funds---Proof---Interim decree was passed against defendant on the basis of his admission made in application for leave to defend---Bank sought final decree and claimed inclusion of cost of funds in the decree passed against defendant---Plea raised by defendant was that without. determination of date of default, cost of funds could not be included in the decree---Validity---When date of default was not disputed formal determination was not necessary and admitted date of default could be taken as date of default---Interim decree though was passed but it was not complied with thus the same could be taken as admitted date of default---State Bank of Pakistan had fixed cost of funds at 6.44%---High Court decreed the suit against defendant including the cost of funds at the rate of 6.44% from the date of interim decree---Suit was decreed accordingly.JUDGMENT NADEEM AZHAR SIDDIQI, J.---By filing of the instant application (C.M.A. No.4097 of 2007) the plaintiff has prayed that the interim consent decree dated 17-4-2006 may be confirmed as final decree along with cost of fund from the date of default till realization of the decretal amount. No counter-affidavit to this application has been filed on behalf of the defendant. The facts of the case .are that on 21-4-2003 the parties were entered into "Finance Agreement" on- mark-up basis .and Export Refinance Facility for upto Rs.150 million -was extended to the defendant, which was fully utilized. It was further stated in the plaint that other than finance mentioned above, which was supposed to expire on 6-8-2005, at the request of the defendant, the plaintiff also approved through its letter .dated 28-9-2004 a renewal of financing. Upto Rs.150 million w.e.f. 1-1-2004 with an expiry by 31-12-2004, but without adjusting liability on 31-12-2004, the defendant requested the plaintiff-Bank vide its letter dated 18-1-2005 for" renewal of the same and on 27-1-2005 the plaintiff-Bank accepted the offer of the defendant and the limit was renewed upto 31-7-2005 for Rs. 128 million. The…