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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:‑‑ 15. Decree.‑‑(1) The decree shall provide for interest or mark‑up, as the case may be, on the judgment debt from the date of institution of suit to payment‑‑ (a) in the case of a loan, for interest at the contracted rate or at the rate of two per cent. above the State Bank Repo rate whichever is higher; and (b) in the case of finance under a system, not based on interest, for mark‑up at the contracted rate or at the latest rate of the banking company for similar finance whichever is higher. Explanation.‑‑In clause (a) "State Bank Repo rate" means the Repo rate fixed by the State Bank of Pakistan. (2) Notwithstanding anything contained in subsection (1). if the Court is satisfied that it is not feasible to make a full recovery of a loan or finance by reason of the fact that the security or assets are inadequate and with a view to facilitating recovery ;and in the best interest of the banking company, it may, on condition that the customer pays the principal amount and such part of the interest or mark‑up as has not been remitted‑‑‑ (a) remit or release part of the interest or mark‑up; (b) allow repayment in instalments; Provided that‑‑ (i) prior exercising the powers conferred herein the Court shall obtain a detailed and reasoned opinion of the banking company in writing in relation to the above setting out the relevant facts and circumstances; (ii) in no event shall a write off of interest or mark-up for a period in excess of one year; or the grant of instalments in excess of two years, be allowed without the written consent of the banking company, which consent shall set out in detail the relevant facts and circumstances; and (iii) a copy of the order shall be forwarded to the State Bank.