Law:

Section:

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)------Ss. 9 & 22---Suit for recovery of loan against debtor and guarantors was decreed---Appeal--Appellants had admitted the sanction of the loan in question and the agreement of finance the execution whereof was also admitted---None of the documents sued or relied upon by the Bank had been denied---Appellants had admitted that finance facility in question was availed and funds thereof paid to the suppliers of the machinery---Machinery was in fact delivered to the appellants---Appellants stated that machinery which was insured as per finance agreement, had been stolen---Finance agreement, however, revealed that after delivery of the machinery, entire risk of any loss or damage thereto shall be on the account of the appellants---Held, theft of the machinery after delivery as alleged, was not only on account of the appellants but also the same, in no manner, mitigated the liability of the appellants towards the Bank in respect of the finance in question---Finance agreement though mentioned that machinery shall be insured but nothing in the said agreement envisaged the extinguishment of the liability of the appellants on account of any loss of the machinery whether the same was insured or not and also that insurance company was neither a borrower nor a customer as defined by law. JUDGMENT SH. AZMAT SAEED, J.---This appeal under section 22 of the Financial Institutions (Recovery of Finances) Ordinance, 2001 is directed against the judgment and decree dated 2-10-2004 passed by the Banking Court No.II, Lahore, whereby the suit filed by the respondent No.1-Bank against the appellants and respondents Nos.2 to 6 was decreed. 2. Brief facts leading to the filing of this appeal are that the respondent No.1 Bank filed a suit against the appellants and respondents No.2 to 6 for the recovery of Rs.1,05,07,813.93. It was contended in the plaint that the appellant No.1 is a sole proprietorship of respondent No.2 which had applied for and was sanctioned, granted and availed of a financial facility from the respondent No.1 Bank for a sum of Rs.8.900 million. The said facility was for the purchase of…

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