Law:

Section:

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)-------S.9---Contract Act (IX of 1872), Ss.124 & 125---Suit for recovery of loan amount by Bank-Lease agreement containing indemnity clause making defendant liable to make good losses incurred by Bank in case of termination of agreement by him---Termination of agreement by Bank at defendant's request after repayment of disbursed lease amount---Effect---Defendant could not back out of such indemnity provided by him---Bank would be entitled to document charges also, which were not adjustable against lease amount disbursed. ORDER This First Appeal has been filed against the order of the Banking Court dated 8-10-2007 in Suit No.87 of 2005 whereby the Banking Court had decreed the suit of the plaintiff, the present respondent in the sum of Rs.3,693,310 jointly and severally against the present appellants. We have heard Mr. Sohail H.K. Rana, learned counsel for the appellants and Mr. Abdul Qayyum Abbasi, learned counsel for the respondents. The main contention of the learned counsel for the appellant is that since he had applied for a lease facility with which he could purchase 19 busses from Hino Pak Motors and the facility was provided only for 4 busses and therefore he could not initiate his business of plying busses and had voluntarily returned the buses to the present respondents who had after repossession sold the same and then filed the suit against him for Rs.4,095,926, the working of which is as follows: (A) Period of lease 5 years (60 months) (B) Rental per month Rs.258,000 (1) Total lease amount Rs.12,300,000 (2) Outstanding rentals from January 4 to July 4 Less: Rs. 1,806,000 (1) Rental Paid through monthly installments Rs.1,006,690 (2) Recovery through the sale proceeds of four Vehicles which were repossessed by the Plaintiff in July 4. Rs.7,600,000 Balance Payable Rs.3,693,310 Add: Late Payment Charges Rs.329,880 Total Receivable Rs.4,023,190. Against this computation the defendant in that suit and the present appellant had filed a statement of accounts in which he had claimed that adjustment for front end fee amounting to Rs.600,000, facilitation charges Rs.1,600,000 and also…

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