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

Section: 9

(a) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--S.9.--Civil Procedure Code (V of 1908), S.10--Suit for recovery of money by customer against Bank on basis of Letter of Credit---Filing of such suit under ordinary law and passing of decree in favour of plaint},ff by civil Court - Filing of appeal against such decree by Bank---Return of plaint to Banking Court by Appellate Court on plaintiffs statement conceding jurisdiction of Banking Court in the matter---Plea of plaintiff before Supreme Court that jurisdiction of a court could be created through a concession or an agreement between parties---Validity---Contents of plaint showed that plaintiff had availed financial facilities advanced by Bank including a facility for establishing Letters of Credit-Cause of action alleged in the plaint to have arisen to plaintiff on account of failure of Bank to establish a Letter of Credit within agreed time frame---Letter of Credit was included in definition of 'finance'' given in Financial Institutions (Recovery of Finances) Ordinance, 2001-Relationship between parties was that of customer and Banker-According to provisions of S.9 of Financial Institutions (Recovery of Finances) Ordinance, 2001 and such concession of plaintiff recorded in impugned , only Banking Court had the jurisdiction in the case---Supreme Court repelled the plea of plaintiff and dismissed appeal filed by him. (b) Jurisdiction----Jurisdiction of a court cannot be created through agreement between parties. ORDER JAWWAD S. KHAWAJA, J.---The appellant, Victor Electronics Appliances Industries (Pvt.) Ltd. impugns the appellate judgment dated 20-12-2006 passed by a learned Division Bench of the High Court in H.C.A. No.115 of 2005. 2. The issue before us is very straightforward. It relates to jurisdiction. It is admitted by both sides that the appellant and the respondent-Bank have a relationship between them of customer and Bank, respectively. Furthermore, from the contents of the plaint, it is also clear that the appellant was availing financial facilities advanced by the Bank including a facility for establishing Letters of Credit. 3. The question of jurisdiction arose because the…

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