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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:‑‑ 16. Attachment before judgment and appointment of receivers.‑‑(1) Where the plaint under subsection (1) of section 9 is for recovery of any amount through the sale of any property pledged, mortgaged, hypothecated, assigned or otherwise charged as security for the loan or finance, or for or in relation to a finance lease, the Banking Court may, at any stage of the proceeding (a) restrain or injunct the sale, creation or transfer of an interest or charge or lease or disposal or disposition of such property by the borrower or customer; or (b) attach such property; or (c) appoint one or more receivers of such property on such terms and conditions as it may deem fit. (2) In cases where a borrower or customer has obtained property or financing through a finance lease, or has executed an agreement in connection with a mortgage, charge or pledge in terms whereof the banking company is authorised to recover or take over possession of the property without filing a suit it may, at its option‑‑ (a) directly recover the same if the property is movable; or (b) file a suit hereunder and the Court may pass an order at any time after the passing of an interim decree, either authorising the banking company to recover the property directly or with the assistance of the Court: Provided that in the event the banking company wrongly or, unjustifiably exercises the direct power of recovery hereunder it shall be liable to pay such compensation to the borrower or customer as may be adjudged by the Banking Court in summary proceedings to be concluded in thirty days on the application of the borrower or customer.