9
Provisions relating to certain offences
Act: Banking Companies (Recovery of Loans) Ordinance 1979
Section Provisions
ORDINANCE XIX OF 1979 ORDINANCE XIX OF 1979 BANKING COMPANIES (RECOVERY OF LOANS) ORDINANCE, 1979 An Ordinance to repeat and with certain modifications, re‑Enact the Banking Companies (Recovery of Loans) Ordinance, 1978 [Gazette of Pakistan,, Extraordinary, Fart i, 27th March 1979] No. F.17 (1)/79‑Pub.‑The following Ordinance made by the President is hereby published for general information :‑ 9. Provisions relating to certain offences.‑(1) Whoever dishonestly commits breach of the terms of letter of hypothecation or trust receipt or such other instrument or document executed by him whereby the possession of the property offered as security for the loan is not with the banking Company but is retained by or entrusted to him for the purpose of effecting sale and paying over the sale proceeds thereof, shall be punishable with imprisonment of either description for a term which may extend to three years, or with fine, or with both. (2) Whoever knowingly makes a false statement. in an application for loan, or applies the amount of, the loan towards purposes other than those for which the loan is availed of by him, shall be punishable with imprisonment of either description for a term which may extend to three years, or with fine, or with both. ‑ (3) All offences under this Ordinance shall be bailable, non‑cognizable and compoundable. (4) Where the person guilty of an offence under this Ordinance is a company or other body corporate, the Chief Executive by whatever name called, and every director, manager, secretary and other officer thereof shall, unless he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence, also be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly.