Law: Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997

Section: 21

[(Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997)].....S 21---Appeal---Suppression of facts---Effect---Central Excise Duty, payment of---Liability of borrower---Interest pendente lite, grant of---Suit was decreed by Banking Court in favour of the Bank---Bank failed to disclose repayment of certain amount either during the proceedings before the Banking Court or in memorandum of appeal---Banking Court while awarding decree, excluded the amount of Central Excise Duty ---Validity--­Factum of repayment of the amount prior to filing of the suit was suppressed by the Bank and the fact was first time acknowledged in the affidavit filed by the Bank in rejoinder during proceedings of the appeal---Suppression of facts did not speak much of the credibility of public sector banking institutions entrusted with the funds of depositors and required to maintain proper accounts---Amount of Central Excise Duty was not payable by the borrower and such claim was rightly rejected by the Banking Court---Mark-up-based agreement could not be equated with, interest pendante lite and even otherwise the same could be granted in the discretion of the Court---Where the claim of the Bank was found to be exaggerated, the discretion was not perversely exercised by the Banking Court---Appeal was dismissed in circumstances. Habib Bank Limited v. Farooque Compost Fertilizer Corporation Limited and others 1993 MLD 1571; National Bank Limited v. Muhammad Tahir Paracha 1998 CLC 1436 and I.C.P. and others v. Chiniot Textile Mills PLD 1998 Kar. 316 ref. (b) Islamic Jurisprudence--- ---- Banking---Islamic banking system---Mark-up, concept of---Scope--­Concept of mark-up is founded upon agreement between the parties and the same cannot be equated with interest pendente lite. ORDER SABIHUDDIN AHMED, J.---This appeal is directed against the judgment and decree of the learned 11Ird Banking Court, Karachi dated 22-11-1997 decreeing the appellants' suit for Rs.196,560 as against their claim of Rs. 1,147,072.46. The admitted facts appear to be that the respondent No.1 was granted a non-interest cash finance (N.I.C.F.) credit facility to the limit of Rs.600,000 and were…

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