ZAFAR JAVED vs PUNJAB SMALL INDUSTRIES S — 2023 CLD 995 LAHORE-HIGH-COURT-LAHORE

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ZAFAR JAVED VS PUNJAB SMALL INDUSTRIES S. 15---Sale of mortgaged property---Scope---Section 15 of the Financial Institutions (Recovery of Finances) Ordinance, 2001, reveals that the financial institution, before exercise of its powers under subsection (4), shall cause to be published a notice in one reputable English daily newspaper and one Urdu daily newspaper with wide circulation in the Province in which the mortgaged property is situated, specifying particulars of the mortgaged property, including name and address of the mortgagor, details of the mortgaged property amount of outstanding mortgage money, and indicating the intention of the financial institution to sell the mortgaged property; moreover, the financial institution shall also send such notices to all persons who, to the knowledge of the financial institution, have an interest in the mortgaged property as mortgagees. S. 15---Sale of mortgaged property---Mode and manner---Non-compliance of statutory requirements---Scope---Appellants assailed the rejection of their objection petition directed against the auction of mortgaged property---Validity---Report of the auction committee revealed that the advertisement was published only in one Urdu newspaper, although it was also required to be published in one reputable English newspaper as well---Additionally, the place of the auction was mentioned as the Office of Assistant Director, but as per S. 15(4), it must be a public auction---In the present case, the auction was conducted only three days after the issuance of publication---Three notices in terms of S. 15(2) were purportedly issued by the respondents in the name of appellants, but the record was absolutely mute about their effective service---Respondents were required to file the auction report before the Banking court within thirty days of the auction, as per S. 15(11), but it was filed after almost 13 months---Only the auction of the mortgaged property was alleged to have been conducted, and no further steps were taken---Thus, the impugned auction by no means had attained finality to be rendered as a past and closed transaction---Impugned order was set aside, allowing the matter to be open for the re-auction of mortgaged property---Appeal was allowed.

ZAFAR JAVED vs PUNJAB SMALL INDUSTRIES S — 2023 CLD 995 LAHORE-HIGH-COURT-LAHORE

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