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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:‑‑ 18. Execution of Decree.‑‑(1) The Banking Court shall, on the written application of the decree‑holder, forthwith order execution of the decree or order at any time seven days after the passing of the decree or order and, where the decree or order pertains to money, may direct that the amount covered by the decree or order, as the case may be, shall be recovered in accordance with the provisions of the Code of Civil Procedure, 1908, or any other law for the time being in force or in such other manner as the Banking Court may deem fit: Provided that the Banking Court may, at the time of passing a final decree pass an order of the nature contemplated by subsection (1) of section 16 to the extent of the decretal amount. (2) Subject to subsection (3), in cases of pledged or mortgaged property a banking company may sell the same with or without the intervention of the Banking Court either by public auction or by inviting sealed tenders and appropriate the proceeds thereof towards total or partial satisfaction of the decree. (3) Where the judgment‑debtor or any person acting on his behalf does not voluntarily give possession of the mortgaged property sold or sought to be sold by the banking company under subsection (2), the Banking Court on the application of the Banking Company, or the purchaser shall put the banking Company or, as the case may be, the purchaser, in possession of the mortgaged property in any manner deemed fit by it. (4) Where the mortgaged or pledged property has been sold by the banking company under subsection (2), the banking company shall present proper account of the proceeds to the Banking Court within thirty days from the date of the appropriation of the proceeds. (5) Where the banking company wishes to sell a property by inviting sealed tenders, it shall, invite offers through advertisements in one English and one Urdu newspaper which are circulated widely in the city in which the sale is to take place giving not less than thirty days time for submitting offers. The sealed tenders shall be opened in the presence of the tenderers or their representatives or such of them as attend: Provided that before concluding the sale the judgment‑debtor shall be given an opportunity to purchase the property at a matching price to be paid in cash within a period of thirty days. (6) Notwithstanding anything contained in the Code of Civil Procedure, 1908 (Act V, of 1908), or any other law for the time being in force‑‑ (a) the investigation of claims and objections in respect of attachment or sale of any property, whether mortgaged, pledged or not, shall be completed within thirty days of filing such claims or objections; (b) if the claims or objections are found by the Banking Court to be mala fide, or filed merely to delay or postpone the sale of the property, it may impose a penalty at a rate of up to twenty per cent. of the sale price of the property for the period of the delay; and (c) the Banking Court may, in its discretion, proceed with the sale of :he mortgaged or pledged property if, in its opinion, the interests of justice so require: Provided that the banking company gives a written undertaking that in the event the objections are found to be valid, or are sustained, it shall in addition to compensating the aggrieved party by the payment of such amount as may be adjudged by the Banking Court also pay a penalty or fine up to twenty per cent. of the sale proceeds and such amounts shall be recoverable from the banking company as decrees passed hereunder.