Law:

Section:

(a) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)------S. 19---State Bank of Pakistan BCD Circular No.13 of 1984---State Bank of Pakistan BCD Circular No.32 of 1984--Execution of decree--Award of mark-up on decretal amount--Mark-up awarded by Banking Court on decretal amount under Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997, should not be confused with the mark-up chargeable under buyback agreement---Award of mark-up by Banking Court in cases filed' under Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997 on the decretal amount was a legal obligation independent of contractual mark-up which a financial institution was entitled to charge its customer under a buyback agreement---Award of mark-up by Banking Court on decretal amount, in circumstances, could not be avoided on the ground that decretal amount already contained the element of mark-up charged under a buyback agreement---State Bank of Pakistan B.C.D. Circulars Nos.13 and 32 of I984, prohibited Financial Institutions from charging mark-up upon mark-up, but such restrictions related to the contractual obligations created under an agreement of finance---Where recovery suit was filed under Banking Companies (Recovery of Loans Advances, Credits and Finances) Act, 1997, S.15 thereof, would empower Banking Court to award mark-up to financial institution on the decretal amount from the date of filing of the suit till the recovery of entire decretal amount, in that manner in. addition to the contractual obligation to pay mark-up which was determined when decree was passed, a legal obligation was created upon a customer of financial institution to pay mark-up on the decretal amount from the date of filing of the suit till its recovery---Under repealed laws two stages existed to which mark-up was lawfully charged; first, the contractual mark-up termed as contractual obligation charged for the contractual period, and the other termed as legal obligation chargeable on the decretal amount---Both were not to be confused with each other as the right to claim each of those, would arise independently under separate provisions of…

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