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

Section: 10

Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997)--S. 10---Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001), S.10---Constitution of Pakistan (1973), Art.199---Constitutional petition---Interpretation of Financial Institutions (Recovery of Finances) Ordinance, 2001---Leave granting order, subject to conditions--­Legality---Trial Court had granted the petitioner leave to defend the suit subject to the condition that he furnishes a bank guarantee---Petitioner in Constitutional petition contended that a leave granting order could not be made subject to any condition---Validity---Section 10 of Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997 provided that where the Banking Court found that a serious and bona fide dispute had been raised in the application filed by the defendant within 21 days of service, it shall grant him leave to defend the suit---Banking Court was thus bound .to grant leave to defend in case the application was filed within 21 days and a serious and bona fide dispute was raised---Law does not impose any other condition nor does it authorize the Banking Court to impose any other condition upon grant of leave to defend--­Impugned order of the Trial Court to the extent of imposing the said condition was thus without lawful authority. Agrosofter (Pvt.) Ltd. and 2 others v. Judge, Banking Court No.5, Karachi and another PLD 1999 Kar. 398 ref. JUDGMENT In a suit filed by the respondent No.2-Bank against the petitioners, in the Court of learned Judge, Banking Court, Rawalpindi, the petitioners were served. They put in appearance and sought leave to defend the suit. The learned trial Court heard the parties and granted leave to defend the suit. However, this was subject to furnishing of a bank guarantee in the sum of the principal amount which is more than Rs. Three million. This was done vide order dated 21-2-2001. 2. This writ petition came up on 20-3-2001 when it was admitted to regular hearing and a notice was issued. The operation of the said condition was suspended subject to furnishing by the petitioner of a security in the shape of surety bond for the suit…

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