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

Section: 19

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--Ss. 19 & 22---Transfer of Property Act (IV of 1882), S.53--­Execution of decree passed against principal borrower and his surety---Attachment and sale of share of surety in shop---Appellant filed objection petition claiming to be purchaser in good faith of whole shop inclusive share of surety, thus, same could not be attached or sold---Banking Court directed appellant to deposit decretal amount, but on his failure to do so, dismissed the objection petition--­Validity---Nothing was available on record to show that the sale was made with object to defeat the right of creditor---All co-sharers of shop including surety had sold shop to appellant through registered sale-deed for consideration--­Banking Court was not justified to dismiss objection petition in absence of any material of mala fide intention or collusion between surety and appellant---High Court accepted appeal, set aside impugned order and allowed objection petition. JUDGMENT MIAN SAQIB NISAR, J.---The respondent-Bank instituted a suit against one Azhar Bashir the principal borrower and Ihsan-ul-Haq the surety, which had been decreed to the tune of Rs.3,20,483. In process of the execution the share of Ihsan-ul-Haq in the shop constructed on Khasra No.597, situated in Ghalla Mandi Gojra, has been attached and directed to be put to auction. 2. In the above situation, the appellants filed an objection petition asserting that they had purchased the share of Ihsan-ul-Haq alongwith other co-sharers of the property through sale-deed dated 7-9-1999 for a consideration of Rs.19,30,000 and therefore, they are owners of the property and the same could not be attached or sold in execution of the decree passed against them. The learned Banking Judge, through an order dated 11-3-2002, had directed the appellants to deposit the decretal amount which order was not complied with. Resultantly, when the matter came before the Court on 15-3-2002 the objection petition was dismissed on the ground that Ihsan-ul-Haq had stood surety for return of the loan given to Azhar Bashir and this property was mentioned in the surety bond. Resultantly, the…

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