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

Section: 12

(a) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--Ss. 12 & 22(5)---Ex parte decree---Dismissal of application for setting aside such decree---Contention of appellants was that their address given in plaint was not correct; and that Bank could have taken their address from description of mortgaged property i.e. Khasra and Khata numbers of property---Validity---Process could not be served on basis of Khasra numbers---Address given in plaint was exactly same as had been given by appellants in finance agreement and power of attorney executed in favour of Bank---Appellants had also been served through citation---High Court, in order to give a chance of hearing to appellants, accepted appeal subject to payment of Rs. 15, 000 as costs, set aside impugned order and remanded case to Banking Court where they would be entitled to file petition for leave to defend within ten days. (b) Civil Procedure Code (V of 1908)--O. V, Rr.12 & 14---Service of summons---Process could not be served on basis of Khasra numbers. JUDGMENT JAWWAD S. KHAWAJA, J.---This appeal impugns the order dated 10-1-2002 passed by the learned Banking Court dismissing an application filed by the appellants defendants seeking the setting aside of an ex parte decree passed against them on 14-4-2001 for recovery of a sum of Rs.408, 888. 2. The facts of this case are straightforward. The appellant No.1 entered into an agreement with the respondent-Bank whereby the Bank agreed to advance a sum of Rs.3,00,000 by way of finance. The appellant No.2, who is the brother of appellant No.1, stood surety for repayment of the finance. The finance was in fact availed but was not repaid in accordance with the terms of the financing agreement. Consequently, the respondent-Bank filed a suit for recovery of the finance. Summons were issued to the appellants-defendants in. all the modes prescribed for service. The appellants-defendants did not appear or file any application seeking leave to defend. As a consequence, the aforesaid ex parte decree dated 14-4-2001 was passed against the appellants in favour of the respondent-Bank. 3. Subsequently, an application for setting aside the ex parte…

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