Rana MUHAMMAD AUSAF vs HOUSE BUILDING FINANCE COMPANY LIMITED Ss — 2023 CLD 554 LAHORE-HIGH-COURT-LAHORE

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Rana MUHAMMAD AUSAF VS HOUSE BUILDING FINANCE COMPANY LIMITED Ss. 3, 9, 17 & 22---Suit for recovery of finance facility---Date of default---Determination---Appellant/judgment debtor was aggrieved of imposing cost of funds by Trial Court from the date of institution of the suit---Validity---When finance facility was for specified period and not only the finance facility but also due date of payment had expired then "date of default" would be the date when the facility and due date of payment had expired---No mark-up could be allowed after expiry of finance period and at best only cost of funds could be allowed---When finance facility and due date of payment of installments was still in field, then "date of default" was the date when financial institution triggered incident of default and had filed suit under S. 9 of Financial Institutions (Recovery of Finances) Ordinance, 2001, for customer "default" in fulfillment of financial obligations, provided the suit was decreed and not found to be premature---Last payment of installment in year 2016 against payment schedule valid till 2026 could not be treated as "date of default" for the purpose of cost of fund under S. 3 of Financial Institutions (Recovery of Finances) Ordinance, 2001---Decree for cost of fund from institution of suit was not entirely adverse to appellant/judgment debtor---Finance facility was valid for period of 12 years and respondent/financial institution had the option to wait till expiry of said period and recover entire outstanding amount along with agreed mark-up---Respondent/financial institution filed suit earlier and had surrendered its claim of mark up from filing of suit till expiry of finance facility---Respondent/financial institution only claimed cost of funds as contemplated under S. 3 of Financial Institutions (Recovery of Finances) Ordinance, 2001, which was much less than rate of mark up in the house finance facility agreement---Appeal was dismissed, in circumstances.

Rana MUHAMMAD AUSAF vs HOUSE BUILDING FINANCE COMPANY LIMITED Ss — 2023 CLD 554 LAHORE-HIGH-COURT-LAHORE

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