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

Section: 9 & 12

Law: Civil Procedure Code (V of 1908)

Section: O.III, R.4

(a) Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997)-------Ss.9 & 12---Civil Procedure Code (V of 1908), O.III, R.4---Suit for recovery of loan amount---Withdrawal of power of attorney by defendant's counsel without prior notice to defendant---Ex parte decree against defendant for his non-appearance after issuance of summons and proclamation for his service---Validity---Withdrawal from prosecution as contemplated by O.III, R.4, C.P.C. was not a unilateral act of a party to suit---Counsel before withdrawing from prosecution was bound to intimate defendant through a notice---Non-appearance of defendant after such intimation. could be considered as wilful default on next date---non-compliance with provision of O.III, R.4, C.P.C. had rendered whole proceedings coram non judice---Defendant had been penalized for such act of his counsel and the court---Issuance of substituted service and ex parte decree on basis of such service was a nullity in the eye of law---Ex parte decree was set aside in circumstances.Hudaybia Textile Mills's case PLD 1987 SC 512; Bank of Credit and Commerce International (Overseas) Ltd. v. Banking Tribunal for Sindh, Balochistan and 2 others 1990 MLD 309 and U.B.L's case 1998 CLC 179 rel.(b) Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997)-------S.9(3)---Summons and proclamation for service of defendant could be issued simultaneously---Principles. (c) Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997)-------Ss.5 & 9---Suit for recovery of loan amount--Institution of suit in High Court in its original jurisdiction---Effect---Provisions of Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997 would not apply to High Court for not being a court created thereunder. (d) Banking Companies. (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997)-------S.7(2)---Civil Procedure Code (V of 1908), Preamble---Proceedings before Banking Court---Civil Procedure Code, 1908, applicability of---Scope---Court would be bound to apply provisions of C.P.C. in a situation for handling of which no…