Law: Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)

Section: 15

(a) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--Ss. 15 & 19---Constitution of Pakistan (1973), Art. 199--­Constitutional petition---Sale of mortgaged property in execution of decree without intervention of Court---Refusal of Housing Authority to issue "No Demand Certificate" to the Bank and effect transfer in auction purchaser's name without providing Court order and completion of other formalities---Validity---Section 19(5) of Financial Institutions (Recovery of Finances) Ordinance, 2001 by reference incorporated certain provisions of S.15 thereof and made them applicable to sale of mortgaged property by Financial Institution---Right in such property would vest in purchaser free from any charge after execution and registration of sale-deed as envisaged by S.15(7)(8) of the Ordinance---Banking Court, after passing such decree, continued to have seizen over the matter--­Bank and auction purcharser had approached Housing Authority for necessary certification and transfer, when neither execution and registration of sale-deed had effected nor transaction was completed nor its accounts had been submitted before Court--­Sale was yet to be completed and was still inchoate---Housing Authority was justified to call upon the Bank to complete legal formalities---Constitutional petition was dismissed.---Principles. According to section 19(1) of the Financial Institutions (Recovery of Finances) Ordinance, 2001, upon pronouncement of and decree by Banking Court, the suit itself stands converted into execution proceedings and on expiry of 30 days, the Court is expected to proceed with the execution of decree. This period of 30 days obviously has been made available to -debtor to avail the remedy of appeal under section 22 of the Ordinance. Subsection (5) of section 19 of the Ordinance by reference incorporates the provisions of subsections (5), (6), (7), (8), (9), (10), (11) and (12) of section 15 and make them applicable to sales of mortgaged, pledged or hypothecated properties by a Financial Institution. Reference to provisions of subsection (7) of section 15 makes it abundantly clear that execution and registration of sale-deed is envisaged…

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