2024 PLP 744 (CLD)
FAYSAL BANK LIMITED through Authorized Attorneys — Appellant Versus MASOOD ASGHAR and another — Respondents
| Citation | 2024 PLP 744 (CLD) |
| Forum / Court | Sindh |
| Bench Members | N/A |
| Parties | FAYSAL BANK LIMITED through Authorized Attorneys — Appellant Versus MASOOD ASGHAR and another — Respondents |
| Primary Law | Financial Institutions (Recovery of Finances) Ordinance, 2001 |
Q1: What are the key laws and sections cited in 2024 PLP 744 (CLD)?
This judgment primarily cites: Financial Institutions (Recovery of Finances) Ordinance, 2001 as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 2024 PLP 744 (CLD)?
The case was heard and decided by the Sindh bench comprising: N/A.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 2024 PLP 744 (CLD) (FAYSAL BANK LIMITED through Authorized Attorneys — Appellant Versus MASOOD ASGHAR and another — Respondents). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Representation
- Ms. Maryam Riaz for Respondents.
Headnotes / Summary
Ss. 19 & 24
Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997), Preamble & S. 18
Suit for recovery filed by the bank
Scope
Banking Court by applying the provisions of S. 24 of the Financial Institution (Recovery of Finances) Ordinance, 2001, dismissed the execution petition filed by the bank /appellant on the ground that the same was filed after lapse of more than 09 years while appeal was pending
Financial Institutions (Recovery of Finances) Ordinance, 2001, is a special law which covers all proceedings upon execution
Previous law i.e. Banking Companies (Recovery of Loans , Advances, Credits and Finances) Act, 1997, enabled the Banking Court to convert the proceedings into execution application on preferring an application
Whereas the frame of the Financial Institutions (Recovery of Finances) Ordinance, 2001, is different as its S.19 provides that upon announcement of judgment and decree, the suit shall automatically convert into execution application
Thus, no sooner the judgment and decree is passed in proceedings under the Financial Institutions (Recovery of Finances) Ordinance, 2001, the proceedings stand converted into execution application
Financial Institutions (Recovery of Finances) Ordinance, 2001, does not provide a way to file a fresh execution application, as was inadvertently done in the present case by the appellant/Bank
At the most, since an appeal was pending before the High Court and the machinery of the execution was not triggered, the application that was inadvertently moved as an execution application by the bank/appellant could be considered for triggering machinery of the Banking Court, where the suit was decreed and converted into execution application
Surprisingly, the Banking Court did not discuss S.19 of the Financial Institutions (Recovery of Finances) Ordinance, 2001
Thus, S. 24 of the Financial Institution (Recovery of Finances) Ordinance, 2001 can not be conceived to have its application on the execution proceedings as the suit proceedings automatically stand converted into execution, leaving no room for limitation
Since the Financial Institutions (Recovery of Finances) Ordinance, 2001 does not recognize the scheme of filing fresh execution application, High Court referred the matter to the Banking Court in order to club the execution application with suit which will be deemed to be converted into execution
Appeal filed by the Bank/decree-holder was allowed accordingly.
Judgment & Decree
MUHAMMAD SHAFI SIDDIQUI, J.
This appeal was filed against an order dated 04.11.2016 whereby an execution application preferred by the successor bank was dismissed as being barred by time.
2. Brief facts of the case are that a banking suit was filed by M/s. Prime Commercial Bank Limited, predecessor of the Appellant, as Suit No. 9 of 2005 against the Respondents/Judgment-Debtors/Defendants on 26.02.2005. The suit was decreed on 15.04.2006 in favour of the predecessor of the Appellant. Thereafter the successor of the Decree Holder i.e. M/s. Faysal Bank Limited filed an execution application against the Judgment-Debtors on 09.11.2015, after lapse of more than 9 years while appeal was pending. The Banking Court considered the execution application as barred by time by applying the provisions of Section 24 of the Financial Institutions (Recovery of Finances) Ordinance, 2001.
3. We have heard the learned counsel and perused the material available on record.
4. Financial Institutions (Recovery of Finances) Ordinance, 2001 ("FIO, 2001") is a special law and covers all proceedings upto execution. In the previous law that is Act of 1997, it enabled the Court to convert the proceedings into execution application on preferring an application whereas the frame of instant law is different as can be seen in terms of Section 19 of the FIO, 2001. It provides that upon announcement of Judgment and decree the suit shall automatically convert into execution application. Thus no sooner the Judgment and Decree is passed the proceedings stand converted into execution application and the act does not provide a way to file a fresh execution application, as inadvertently did by the appellant. At the most, since an appeal was pending before this Court and the machinery of execution was not triggered, the application that was inadvertently moved as an execution application could at the most be considered for triggering machinery of the Banking Court where the suit was decreed and converted into execution application.
5. Surprisingly, the Banking Court did not discuss Section 19 of the FIO, 2001, which is described above. Section 24 of the FIO, 2001 thus cannot be conceived to have its application on the execution proceedings as the suit proceedings automatically stands converted into execution leaving no room for limitation. Since the FIO, 2001 does not recognize the scheme of filing fresh execution application, thus we deem it appropriate to allow this appeal and refer the matter to the Banking Court to club the execution application with suit which is deemed to be converted into execution. The appeal is allowed in the above terms. MQ/F-4/Sindh Appeal allowed.