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ACT XV OF 1991 ACT XV OF 1997 BANKING COMPANIES (RECOVERY OF LOANS, ADVANCES, CREDITS AND FINANCES) ACT, 1997 An Act to repeal, and with certain modifications to consolidate and re‑enact the Banking Companies (Recover, of Loans) Ordinance, 1979 and the Banking Tribunals Ordinance, 1984 [Gazette of Pakistan, Extraordinary, Part I, 2nd June, 19971 No.F.9(19)/97‑Legis., dated 2‑6‑1997.‑‑The following Act of Majlis‑e 3hoora (Parliament) received the assent of the President on the 31st May, 1997 s hereby published for general information: Whereas it is expedient further to repeal and with certain modifications to consolidate and re‑enact the Banking Companies (Recovery of Loans) Ordinance, 1979 (XIX of 19,79) and the Banking Tribunals Ordinance, 1984 (LVIII of 1984); It is hereby enacted as under:‑‑ 2. Definitions.‑‑In this Act, unless there is anything repugnant in the subject or context,‑‑ (a) "banking company" means‑‑ (i) any company whether incorporated within or beyond Pakistan which transacts the business of banking or any associated or ancillary business in Pakistan and includes a Government savings bank; (ii) a modaraba or modaraba management company, leasing company, investment bank, financing company, unit trust or mutual fund of any kind and credit or investment institution. corporation or company whether industrial, agricultural or development; and (iii) any company authorised by law to carry on any similar business specified in the Schedule to this Act: and (b) "Banking Court" means‑‑‑ (i) in respect of a case in which the outstanding amount of claim based on a loan or finance does not exceed thirty million rupees or the trial of offences under this Act. the Court established under section 4: and (ii) in respect of any other case, the High Court;' (c) "borrower" means a person who has obtained a loan under a system based on interest from a banking company and includes a surety or an indemnifier; (d) "customer" means a person who has obtained finance under a system which is not based on interest from a banking company or is the real beneficiary of such finance and includes a surety or an indemnifier; (e) "finance" includes an accommodation or facility under a system which is not based on interest but provided on the basis of participation in profit and loss, mark‑up or mark‑down in price, hire‑purchase, equity support, lease, rent sharing, licensing, charge or fee of any kind, purchase and sale of any property, including commodities, patents, designs, trade marks and copyrights, bills of exchange, promissory notes or other instruments with or without buy back arrangement by a seller, participation term certificate, musharika or modaraba certificate, term finance certificate or any other mode other than an accommodation or facility based on interest and also includes credit or charge cards, guarantees, indemnities, letters of credits and any other obligation, whether fund based or non‑fund based, and any accommodation or facility the real beneficiary whereof is a person other than the person to whom or in whose name it was provided; (f) "loan" means a loan, advance and credit under a system based on interest and includes‑‑‑ (i) an advance, cash credit, overdraft, packing credit, a bill discounted and purchased or any other financial accommodation provided by a banking company to a borrower; (ii) a guarantee, indemnity, letter of credit or any other financial engagement which a banking company may give, issue or undertake on behalf of a borrower; (iii) a benami loan, that is, a loan the real beneficiary or recipient whereof is a person other than the person in whose name the loan is advanced or granted; (iv) any amount due from a borrower to a banking company under a decree passed by a Civil Court or an award given by an arbitrator; and (v) any loan due from any borrower to a banking company which is the subject‑matter of any pending suit, appeal or revision before any Court; and (g) "rules" means rules made under this Act.