Law:

Section:

Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997)-------Ss. 14, 15, 18 & 21---Civil Procedure Code (V of 1908), S.151---Suit for recovery of bank loan---Borrower had mortgaged his property as security and the title deeds were in the possession of the Bank---Banking Court granted decree to the Bank which attained finality and the mortgaged property was sold in execution thereof through open auction---Auction sale was confirmed and total price was paid by the auction purchaser and sale certificate and warrant for possession had also been issued by the Court---Application under S. 151, C.P.C. was filed by the objectors claiming that the debtor was not owner of the property on the date when the property was mortgaged with the Bank, the mortgage itself was illegal and invalid and that they were vendees of the title of the property for valuable consideration in good faith and prayed for setting aside the auction---Banking Court found that the sales claimed by the objectors to have been made in their favour had been brought about in collusion with the debtor who supported them at the bar---Validity---Held, contention of the objectors impugning the validity of the mortgage had no tenability as the objectors had no locus standi to agitate the matter nor in the process of execution of the decree the Court could go behind the decree---Had the objectors made due inquiry and demanded the title documents of the property from the debtor they would have learnt about the mortgage and had not gone ahead for the purchase of the same as the original title documents were still lying with the decree holder/Bank---Plea of bona fide purchase was not placed on a sound footing as the inquiry made by the objectors about the title of the suit property should not have been confined merely to the examination of the revenue papers---Banking Court in dismissing the application of the objectors had acted in consonance with the law and no illegality had been committed in passing the impugned order---Appeal was dismissed by the High Court. Mst. Nasiban Bibi v. The Australasia Bank, Lahore and 2 others 1970 SCMR 657 fol. Muslim Commercial Bank Limited v.…

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