Law:

Section:

(a) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)------Preamble-Financial Institutions (Recovery of Finances) Ordinance, 2001 being a special law, every provision contained therein has to be strictly construed and meticulously adhered to. (b) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)-- ----S.15---Sale of mortgaged property without intervention of the Court---Manner and mode---Non-compliance of statutory requirements---Effect---Parameters prescribed by statute being mandatory are required to be followed as directed---Even a minor lapse or departure therefrom shall make the whole transaction questionable and vitiate entire proceedings of sale---Principles. The manner and mode of auction without intervention of Court has been clearly spelt out in section 15 of the Financial Institutions (Recovery of Finances) Ordinance, 2001. It is initiated by resorting to the provisions as contained in section 15(2) by serving notice upon the mortgagor, calling for payment. It clearly envisages service upon "customer" as defined in the Ordinance. Thereafter another notice demanding payment has to be issued within 14 days of service and lastly, in case, of contumacious default in payment, the Financial Institution is required to serve a final notice within 30 days. The proviso to section 15(4) of the Ordinance makes it imperative that before venturing upon the exercise of sale by auction of mortgaged property, a notice is required to be published in. an English and Urdu daily "Newspaper", in the Province where the mortgaged property is located. The proclamation is required to contain the name, and address of the mortgagor, the details of the mortgaged property, the amount of outstanding mortgage money and intention of sale of mortgaged property. This exercise also entails a requirement of sending notice to all persons, who, to the knowledge of Financial Institution, have an interest in the mortgaged property as mortgagees. After fulfilling these requirements the Financial Institution, has power to sell the mortgaged property and thereafter, file proper accounts of sale proceeds, with the Banking Court, within 30 days of sale.…

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