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Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)-----S. 10---Suit by borrower/customer against Financial Institution---Precondition Defendant was required to obtain leave to defend the suit for which purpose the application was filed-Banking Court, instead of considering the said application and deciding the question of grant or refusal of leave, dismissed the suit itself---Validity--Order of dismissal of the suit by the Banking Court, held, was not sustainable---High Court, while granting leave to defend the suit, for which the plaintiff had no objection, remanded the case to Banking Court accordingly. JUDGMENT MAULVI ANWARUL HAQ, J.-On 5-12-2005 the appellant filed a suit against the respondents. According to him, he availed the loan, particulars whereof stated in para-1 of the plaint, and had deposited his agricultural Pass Book with the respondents. He paid up principal as well as the mark-up and called upon the respondents to return his Pass Book whereupon he was told that some dues are still there. He made an inquiry and found that another loan account has been opened in his name, which, according to him, was forged and fictitious. He sought a declaration that the respondents are liable to adjust the amount deposited by him against the earlier loan and that there is no other loan and his Pass Book be released. The respondents were served in the manner prescribed. They put in appearance and filed an application for leave to defend the suit. The plea taken was that after adjusting all payments, still a sum of Rs.2,29,284 is due. This application was filed on 26-1-2006 and the case was adjourned to 24-2-2006 and then to 2-3-2006 by the reader of the learned trial Court. On this date, the suit was dismissed for non-prosecution. It was, however, restored on 5-4-2006 and notice was issued to the learned counsel for the respondents. On 8-6-2006 the learned Judge, Banking Court-I, Faisalabad, proceeded to dismiss the suit. 2. Learned counsel for the appellants contends that on the relevant date the application for leave to defend was to be considered but the learned trial Court without granting leave proceeded to dismiss the suit. Learned…

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