Law:

Section:

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)-------S.9---Suit for recovery of loan by Bank---Defendant had defaulted and failed to pay amount due---Bank had also alleged that defendant had deposited fake documents of mortgaged property---Defendant was duly served by all modes but no one appeared on his behalf to defend the suit---Statutory period for filing leave to defend the suit had expired---High Court decreed the suit in favour of the Bank in circumstances and observed that plaintiff was at liberty to initiate criminal proceedings against the defendant, if provided by law, for depositing the fake documents. ORDER FARRUKH ZIA G. SHAIKH, J.---Plaintiff has instituted this suit for recovery of Rs.126,121,627 under section 9 of the Financial Institutions (Recovery of Finances) Ordinance, 2001 (hereinafter to be referred as the Ordinance). Brief facts of the case are that the plaintiff is a financial institution, while the defendant is conducting business as a sole proprietor under name and style of Messrs Bukhari Commercial Exporters and is a customer of the plaintiff-Bank. The defendant had approached the plaintiff-Bank with a request of availing export refinance facility vide letter dated 16-7-2004, which the plaintiff approved vide its sanction advice dated 28-10-2004 extending an Export Refinance Facility of Rs.100 million and on 17-8-2004 both the plaintiff and defendant entered into a finance agreement on mark-up basis. In consideration of the above finances the defendant executed and deposited with the plaintiff the following documents: (i) registered Mortgage Deed dated 28-8-2004 (Copy is attached herewith as Annexure "E"); (ii) memorandum of Deposit of title Deeds dated 17-8-2004 (Copy is attached herewith as Annexure "E/1"); (iii) declaration of the defendant stating that the mortgaged property is free of encumbrances (Copy is attached herewith as Annexure "E/2"); (iv) declaration/Affidavit regarding the mortgaged property (Copy is attached herewith as Annexure "E/3"); (v) demand Promissory Note dated 17-8-2004 for Rs. 107,900,000 (Copy is attached herewith as Annexure "E/4"); (vi) letter of Hypothecation for Rs.112,000,000…

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