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

Section: 10

(a) Financial Institutions (Recovery of Finances) Ordinance (LXVI of 2001)---Ss. 9 & 10(12)---Recovery of bank loan--- Amended application for leave to defend the suit---Time-barred application---Taking of loan was not denied by the borrower---Suit was originally filed under the provisions of Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997, but due to promulgation of Financial Institutions (Recovery of Finances) Ordinance, 2001, the Court directed the borrowers to file amended application for leave to defend the suit---Borrowers did not file the application within time specified by the Court--­Effect---Such application was liable to be ignored and presumption would be that no application for grant of leave to defend the suit was pending---Application for leave to defend the suit was dismissed and the case of the plaintiff stood proved by agreements---Suit was decreed in circumstances. Dr. Muhammad Munir-ul-Haq and others v. Dr. Muhammad Latif Chaudhry and others 1992 SCMR 215; Bolan Bank Limited through Attorneys v. Baig Textiles Mills (Pvt.) Limited through Chief Executive and 6 others 2002 CLD 557; Banque Indosuez v. Banking Tribunal for Sindh and Balochistan and others 1994 CLC 2272 and Habib Bank Ltd. v. Sarmast Cooking Oil Ltd. 2000 CLC 1502 ref. (b) Financial Institutions (Recovery of Finances) Ordinance (LXVI of 2001)--- ----S.3---Filing of suit in Banking Court---Permission of State Bank of Pakistan---Pre-condition---Validity---No provision exists in Financial Institutions (Recovery of Finances) Ordinance, 2001, that the plaintiff should declare the customer as defaulter and refer the matter to State Bank of Pakistan seeking permission to file suit. (c) Financial Institutions (Recovery of Finances) Ordinance (LXVI of 2001)--- ----S.9---Corporate and Industrial Restructuring Ordinance (L of 2000), S.18---Suit for recovery of bank loan---Taking over of assets by Corporate and Industrial Restructuring Corporation---Validity---Acquisition/take-over of properties by Corporate and Industrial Restructuring Corporation cannot be questioned in the suit filed for recovery of money. (d) Contract Act (X of 1872)---…

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