Law:

Section: 3

(a) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--Ss. 3 & 9---Civil Procedure Code (V of 1908), S.20(c)--Suit for recovery of finance---Execution of lease facility agreements at place "L"---Territorial jurisdiction of Banking Court at place "K" to entertain such suit---Validity---Court could entertain a suit, cause of action of which in whole or in part had arisen within its territorial jurisdiction---Core business of plaintiff-Bank was to earn rental on leases and lend money on mark-up basis---All requests for finance, terms of finance, disbursement/ drawdown, additional time for payment and rescheduling etc. had been sent by defendant from place "L" to plaintiffs registered office at place "K"---Sanction letter, release of finance to defendant and its repayments were made at place "K"---Cause of action would accrue to plaintiff/Bank in event of default and material breach committed by defendant in repayments of loans/ instalments---Cause of action would be taken from acts of defendant, whereby he had breached agreements and defaulted in repayment of finance at place "K"---Accrual of action could not be restricted only to execution of lease finance agreements at place "L", otherwise whole purpose and spirit of S.20(c), C.P.C., would become redundant, superfluous and would also negate S.3 of Financial Institutions (Recovery of Finances) Ordinance, 2001---Banking Court at place "K", held, had jurisdiction to try such suit. Messrs Rahmania Trading Company v. Messrs Eagle Star Insurance Company, Ltd. PLD 1960 SC (Pak.)202; United Distribution Pakistan Ltd. v. Al-Syed Agrochemical Services and others 2005 CLC 1659; Pakistan and another v. M. Faiz Ahmad 1983 CLC 1369; State Life Insurance Corporation of Pakistan v. Rana Muhammad Saleem 1987 SCMR 393; Nadeem Ghani v. United Bank Limited and others 2001 CLC 1904; Malik Allah Yar Khan v. Mst. Mumtaz Begum 2002 SCMR 1835; Nusrat Mehdi Chaudhri v. Habib Bank Limited and another 2006 CLD 405; Messrs Kadir Motors (Regd.) Rawalpindi v. Messrs National Motors Ltd. Karachi and 3 others 1992 SCMR 1174; National Investment Trust Ltd. V. Lawrencepur Woollen and Textile Mills Ltd. 2002 CLD 527;…

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