Law:

Section:

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)-------S.9---Recovery of bank loan---Failure to seek leave to defend the suit---Defendants, in spite of due service, failed to seek leave to defend the suit, thus the suit was proceeded ex parte---Effect---Statement of account showed that no repayments had been made and therefore, the entire buyback price was recoverable from defendants---Bank, in addition to buyback price, was entitled to recover cost of funds from the date of default of each instalment till realization of entire buyback price---Defendant company created an equitable mortgage by way of deposit of title documents over its immovable property together with the buildings and structure constructed thereon---Equitable mortgage was evidenced by Memorandum of Deposit of Title Deeds---Defendants also executed their personal guarantees to secure the facilities---High Court in exercise of Banking jurisdiction, decreed the suit with mark-up and applicable rate of cost of funds to be recovered from defendants who were jointly and severally liable---Claim of liquidated damages was rejected---High Court directed to recover decretal sum through sale of mortgaged properties and assets of defendants---Suit was decreed accordingly. JUDGMENT FAISAL ARAB, J.---This suit has been filed against the defendants under section 9 of Financial Institutions (Recovery of Finances) Ordinance, 2001 for recovery of Rs.531,234,505.98 along with mark-up, liquidated damages, charges and cost of funds. Vide order dated 3-9-2005, this suit was ordered to be fixed for final disposal as in spite of due service, the defendants failed to seek leave to defend this suit. The suit against them therefore, had to proceed ex parte. The plaintiff provided two financial facilities to the defendant No.1. The first facility was based on buyback agreement dated 4-1-1992. Under this agreement, a consortium of banks including the plaintiff granted finance to the extent of Rs. 108,806,000 of which Rs.10,880,000 was provided by the plaintiff. Defendant No.1 was to repay the facility in 14 semi-annual instalments commencing from 1-1-1995 and ending on 1-7-2001. Under the agreement…

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