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

Section: 10

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--Ss. 9, 10 & 22---Suit for recovery of loan--- Application for leave to defend suit---Application for leave to defend suit had to be filed within period prescribed under law---Loanee/defendant in case having not filed application for leave to defend suit within prescribed period, Banking Court was justified to decree the suit when loanee/defendant had no case on merits---In absence of any infirmity or illegality in of Banking Court, appeal against the same was dismissed by the High Court having no force. Messrs Ahmad Autos v. Allied Bank of Pakistan Limited PLD 1990 SC 497 and Habib Bank Limited v. Cargo Despatch Company Ltd. and 4 others 1987 CLC 1002 ref. JUDGMENT CH. IJAZ AHMAD, J.---The brief facts out of which the present appeal arises are that the appellant secured loan from the respondent-Bank amounting to Rs.29,000 vide Loan Case No.098959 which was sanctioned by the respondent-Bank on the application of the appellant on 5-8-1991 whereas loan secured by the appellant amounting to Rs.2,08,030 vide Loan Case No.091378 which was allegedly sanctioned by the respondent-Bank in favour of the appellant on 26-11-1990. The respondent-Bank sanctioned aforesaid loans in favour of the appellant after mortgaging the land of the appellant. Agreements were also executed between the appellant and the respondent-Bank. The appellant failed to discharge his liabilities in terms of the agreement. The respondent-Bank being aggrieved filed suit for recovery of Rs.3,36,618 before the Banking Court. The appellant filed application for leave to defend before the Banking Court by raising legal and factual objections which was dismissed by the Banking Court as the appellant did not file an application for leave to defend within the prescribed period as time-barred. The suit of the respondent-Bank was decreed by the Banking Court vide judgment and decree dated 5-10-1998. The appellant being aggrieved filed this appeal. Learned counsel of the appellant submits that the appellant secured only one loan amounting to Rs.29,000 from the respondent-Bank which was sanctioned by the respondent ­Bank on the…

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