Law:

Section:

(a) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)-------S. 8---Suit for recovery of loan---Version of witnesses in respect of the transaction between the parties and procured arrangement was not controverted specifically---Plaintiff/Bank having discharged its burden whereby proving that the transaction between the parties and procured arrangement was unconscionable, without consideration and being not bona fide was also in violation of S.8, Financial Institutions (Recovery of Finances) Ordinance, 2001. Taufiq Textile Mills (Pvt.) Ltd. v. Industrial Development Bank of Pakistan PLD 1999 Kar. 71. (b) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----S. 8---Suit for recovery of loan---Contention of plaintiff/Bank was that defendant (No.2) was the beneficiary substituted defendant (No.1) for the repayment of the loan by a device not acceptable in accordance with S.8 of Financial Institutions (Recovery of Finances) Ordinance, 2001, thus, could not be a privity---Contention of the plaintiff that the defendant (No.2) stepped into the contract/package agreement made with the defendant (No.1) was not denied by both the defendants---Held, under such circumstances, it could not be accepted that there was any transaction with the defendant (No.2) independently, but it was introduced by defendant (No.1) to discharge its liability and as such the defendant (No. 2) was not privity to the transaction made with the defendant (No.1). (c) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----S. 8(2)---Industrial Development Bank of Pakistan Ordinance (XXXI of 1961), S.39---Suit for recovery of loan---Contention of the defendants was that suit was not maintainable being without approval of the Board of Directors of the Bank---Board of Directors of the Bank had resolved about the suit in question and said resolution was notified in the official Gazette wherein one "A" was empowered to verify the plaint for the suit and also sworn affidavit and was to produce himself as witness---Held, objections of the defendants on the technical ground was inconsistent with the material and the merits of the case on…

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