CHOUDHARY RICE MILLS vs The BANK OF PUNJAB S — 2022 CLD 1002 LAHORE-HIGH-COURT-LAHORE

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CHOUDHARY RICE MILLS VS The BANK OF PUNJAB S. 10---Leave to defend---Scope---Absence of meeting mandatory requirements of S. 10(3)(4)(5) of Financial Institutions (Recovery of Finances) Ordinance, 2001 i.e. disclosing summary of substantial questions of law as well as facts in respect of which in the opinion of the defendant evidence needed to be recorded; failure to tabulate honest disclosure about the amount of finance availed by the defendant; failure to allege the amount of finance payable by defendant; and not disclosing the amount of finances disputed by the defendant, has a consequence in law---Imperative for defendant to fulfill all these mandatory requirements and a combined reading of S. 10 of Financial Institutions (Recovery of Finances) Ordinance, 2001, discloses that the failure of compliance of mandatory subsections entail penal consequences. Ss. 9 & 10---Procedure of Banking Courts---Leave to defend---Scope---Appellants assailed judgment and decree passed by Banking Court whereby the suit filed by Bank was partially decreed---Validity---Appellants had conceded the banker-consumer relationship, the availing of finance facilities and executing the security documents to secure the repayments of amounts availed by the appellants---Petitions for leave to appear filed by appellants did not fall in the exceptions justifying the grounds for grant of appellants' petitions---Mandatory requirements of S. 10(3)(4)(5) of Financial Institutions (Recovery of Finances) Ordinance, 2001 had not been complied with by the appellants---So far as contention of appellants that amounts deposited by them towards satisfaction of their availed finance facilities were embezzled and an FIR in that respect was lodged, was concerned High Court observed that the FIR was lodged against employees of the Bank and not against the Bank---Inherent fallacy existed in the arguments of the appellants that pendency of those proceedings constituted a ground for grant of appellants' petitions for leave to appear---Banking court had rightly dismissed the appellants' petitions for leave to appear---Appeal was dismissed. S. 10---Civil Procedure Code (V of 1908), O. XXXVII, R. 3---Leave to defend---Scope---Defendant showing defence on merits to have leave to appear---Scope---Raising a plausible defence is a test for grant of leave in a suit under O. XXXVII of C.P.C. as grant of leave is a rule under the said law, whereas under Financial Institutions (Recovery of Finances) Ordinance, 2001, the grant of leave to appear is an exception. S. 10---Leave to defend---Scope---Where defendant had filed two petitions for leave to appear and had submitted that both should be read together, High Court observed that in terms of law, such expectation from the Court was not tenable.

CHOUDHARY RICE MILLS vs The BANK OF PUNJAB S — 2022 CLD 1002 LAHORE-HIGH-COURT-LAHORE

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