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

Section: 10

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--Ss. 10(12) &22---Suit for recovery of loan amount--­Amended leave application not filed within 21 days was dismissed by Banking Court being time-barred and suit was decreed in favour of Bank---Validity---Defendant was at liberty to have made statement before Court for treating his earlier previous application to be an application under Financial Institutions (Recovery of Finances) Ordinance; 2001---To knock out defendant on such technical ground was most harsh and against rules for dispensation of justice---Passing of decree on such account was unwarranted by law. JUDGMENT MIAN SAQIB NISAR, J.---Briefly stated the facts of the case are that respondent No. 1, filed a suit for the recovery of Rs.6,14,410 against the appellant and the predecessor of respondents Nos.2 to 7; defendants moved an application for leave to appear and defend, which remained pending, when Financial Institutions (Recovery of Finances) Ordinance, 2001, came into force. According to the provisions of above section 10(12) of the Ordinance, the defendants were obliged to file an amended application for leave to appear and defend within 21 days, and in this regard, order was also passed by the learned Banking Court on 25-9-2001, but appellants moved an application on 20-11-2001, which was beyond the said period, resultantly, treating the application as barred by time, learned Banking Judge, has dismissed the same, as a result whereof, the Court decreed the suit in favour of the respondent-Bank. 2. Learned counsel for the appellant contends that the provisions of section 10(12) of the Ordinance 2001, are directory in nature; and in any case, if the amended application was not filed within a prescribed period, the earlier application for leave to appear and defend should have been considered as application under the Ordinance and decided. 3. We have heard learned counsel for the parties and find that the above provisions though requires that the fresh application for leave to appear and defend, shall be filed within 21 days, but at the same time, the appellant was at liberty to have made a statement before the Court for…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492