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

Section: 2

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--Ss. 2(c), 9, 17 & 22 Suit for recovery of loan amount against borrowing company and its guarantors Banking Court decreed suit against defendants jointly and severally Parties at appeal stage jointly sought modification of Judgment/decree upon the terms that defendants guarantors were neither guarantors nor indemnifiers nor mortgagors and they did not fall within definition of a "customer", thus, neither Bank could maintain suit against them` nor impugned decree could be competently passed against them; that Bank was not competent to receive mark up from borrowing company after expiry of period of finance, and such amount recovered by Bank illegally and unlawfully would be reduced from decretal amount; and that decree be passed for agreed amount Validity Such joint request was reasonable and in accordance with law High Court accepted appeal upon such terms, decreed suit for agreed amount against borrowing company with mark up from date of suit till its recovery with costs of suit and dismissed suit against other defendants. JUDGMENT MUHAMMAD SAIR ALI, J. The suit filed by Crescent Investment Bank Limited (the respondent) against the appellants was decreed through judgment and decree dated 10 10 2001 for recovery of Rs.3,711,991 jointly and severally from the appellants along with mark up, costs and other expenses. Through the present appeal, the appellants have challenged the same. 2. The learned counsel for, the parties after fully arguing the case arrived at a consensus and accordingly jointly requested for the modification of the judgment and decree dated 10 10 2001 in the following terms: (i) That the suit of the respondent Bank be dismissed as against respondents Nos.2 to 5 who were admittedly neither the guarantors nor indemnifiers or mortgagors. Wherefore, appellants Nos.2 to 5 do not fall within the definition of a customer to maintain Bank's suit against them. And further that no document of security or guarantee was sued or relied upon or filed by the respondent Bank. And that the impugned judgment and decree dated 10 10 2001 against appellants Nos.2 to 5 therefore could not…

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