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

Section: 7

(a) Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997)---Ss. 7 & 9-Civil Procedure Code (V of 1908), S.20-Banking Court, territorial jurisdiction-Determination--Such jurisdiction is regulated by the provisions of Civil Procedure Code, 1908-­Territorial jurisdiction is conferred upon Banking Court, under the provision of S.20, C.P.C., where one of the defendants resides against all the defendants-Suit was filed at a place where one of the guarantors/defendants resided-Such suit was maintainable. (b) Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997)---- ----Ss. 9 & 10--Recovery of bank loan-Leave to defend the suit, refusal of---Plea of borrower being that loan had been written off---Validity---No documentary evidence on record was produced by the defendants, to show that they had ever applied for writing off the loan or even any letter was conveyed by the bank to them showing that the loan had been written off--Plea raised by the defendants was that the loan of defendants had been shown to be written off in annual report of the bank---Validity--If only for the purpose of accounting in the annual report, the bank had shown the amounts as bad debt, would not mean that the loan was not recoverable---High Court set aside the future mark-up except for cushion period of 210 days---Judgment and decree passed by Banking Court was modified only to the extent of future mark-up---Appeal was dismissed accordingly. JUDGMENT MIAN SAQIB NISAR, J.--All the three appeals (R.F.As. Nos.587 of 2000, 588 of 2000 and 589 of 2000 are being disposed of together as common questions of law and facts are involved therein. 2. In R.F.As. Nos.587 of 2000 and 588 of 2000 the appellant No. 1 is a partnership firm, while the other appellants are either partners of the firm or the guarantors/mortgagers. The appellant No.1 obtained finance facility from the respondent-Bank in the shape of Export Refinance Post-Shipment, which liability has not been fully discharged, constraining the respondent-Bank to the file suits for recovery before the Banking Tribunal. In R.F.A. No.589 of 2000 the appellant No.1 is a limited…

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