Law:

Section:

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)-------Ss.7(1)(a), 9 & 10---Companies Ordinance (XLVII of 1984), S.316---Civil Procedure Code (V of 1908), S.13---Suit for recovery of loan amount from guarantor on basis of ex parte foreign obtained against him by Bank---Leave to defend suit, application for---Plea of defendant was that suit was not maintainable on basis of such for not being on merits; that principal borrowing company had gone into liquidation under Companies Ordinance, 1984 and Liquidator had invited claims against company; and that according to law of Pakistan original suit was time-barred and thus, present suit was not maintainable on basis of such ---Validity---Foreign had been passed ex parte due to non-appearance of defendant, thus, same could not be treated as on merits---Foreign did not show, whether at relevant time defendant was residing in foreign country and whether any attempt hind been made to serve him personally or not---No notice in foreign suit had been served upon Liquidator to represent company---Bank had obtained foreign by suppressing factum of liquidation of company---Defendant appeared to be non-resident of foreign country and had not submitted to jurisdiction of foreign Court, thus, foreign was not binding upon him---Court in Pakistan could refuse to accept foreign as conclusive, if same fell within any of exceptions of S.13, C.P.C.---Defendant had raised substantial questions of law and facts requiring recording of evidence, thus, granting him leave to defend suit became necessary---Banking Court accepted such application and treated same as written statement. Naeemullah Malik v. United Bank Limited 2006 CLD 1592; R.E. Mahomed Kassim and Co. v. Seeni Pakir-Bin-Ahmad AIR 1927 Mad. 265; National Bank of Pakistan v. Banking Tribunal No.1 PLD 1994 Kar. 358; Nadeem Ghani v. United Bank Limited 2001 CLC 1904; Messrs Safa Textile Ltd. v. Messrs Habib Bank Limited 2004 CLD 279; Emirates Bank International Ltd. v. Messrs Dosman Brothers and 9 others 1990 MLD 1779 and Abdul Ghani v. Haji Saley Muhammad PLD 1960 (W.P) Kar. 594 ref. Emirates Bank International Ltd. v. Messrs Dosman Brothers 1990 MLD 1779;…

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