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

Section: 2

(a) Financial Institutions (Recovery of Finances) Ordinance, (XLVI of 2001)--Ss. 2(a)(iii), 7(2) & 22---Sindh Small Industries and Handicraft Development Corporation Act, (XXVI of 1972)---Banking Companies Ordinance, (LVII of 1962), Ss. 5(b)(c) & 27(1)---Civil Procedure Code (V of 1908),O.VII, R.10---Court Fees Act (VII of 1870), S.13---Suit for recovery of loan---"Banking Company" and "Banking"---Meaning---Recovery of loan by financial corporation not doing business of banking---Scope---Dismissal of suit by Banking Court for want of jurisdiction---Plaintiff/ Corporation (Sindh Small Industries and Handicraft Development Corporation) filed suit for recovery of loan before Banking Court/Trial Court which was dismissed by the latter for want of jurisdiction as plaintiff/appellant was not found to be a Banking Company'---Plaintiff argued that it advanced loans and finances to various persons and companies, therefore, it was a banking company---Validity---Under S.5(b)(c) of Banking Companies Ordinance, 1962 'Banking Company' meant any company which transacted business of banking in Pakistan and 'banking' meant the accepting, for the purpose of lending or investment, of deposits of money from public, repayable on demand or otherwise and with drawable by cheque, draft order or otherwise---No company could carry the business of banking unless it held a licence from State Bank of Pakistan as provided in S.27(1) of Banking Companies Ordinance, 1962---'Financial Institution' was defined in S.2(a) of Financial Institutions (Recovery of Finances) Ordinance, 2001---Plaintiff/appellant was not to be termed as banking company for the reasons; that it did not accept deposits of money from public for the purpose of lending or investment as envisaged in S.5(b) of Banking Companies Ordinance, 1962; that it could not be termed as financial institution as defined by S.2(a) of Financial Institutions (Recovery of Finances) Ordinance, 2001, for it did not carry banking business and that it had not been notified by Federal Government to carry on a business as envisaged in clause (iii) of S.2(a) of Financial Institutions (Recovery of Finances) Ordinance, 2001 in order to attract…

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