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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:‑‑ 19 Provisions relating to certain offences.‑‑Whoever‑‑ (a) 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 or finance is not with the banking company but is retained by or entrusted to him for the purpose of effecting sale and depositing the same with the banking company; or (b) subsequent to the creation of a mortgage in favour of a Banking Company, dishonestly parts with the possession of the mortgaged property whether by creation of a lease or otherwise contrary to the terms thereof, without the written permission of the Banking Company, shall, without prejudice to any other action which may be taken 'against him under this Act or any other law for the time being in force, be punishable with imprisonment of either description for a term which may extend to one year and shall also be liable to fine, and shall be ordered by the Banking Court trying the offence to deliver up or refund, within a time to be fixed by the Banking Court, the property or the value of the property so dealt with. Explanation.‑‑Dishonesty may be presumed where a borrower or a customer has not deposited the sale proceeds of the property with the banking company in violation of the terms of the agreement between the banking company and the borrower or customer. (2) Whoever knowingly makes a statement which is false in material respect in an application for loan or finance and obtains a loan or finance on the basis thereof, or applies the amount of the loan or finance towards a purpose other than that for which the loan or finance was obtained by him, or furnishes a false statement of stocks in violation of the terms of the agreement with the banking company, shall be guilty of an offence punishable with imprisonment of either description for a term which may extend to one year, or with fine, or with both. (3) Whoever resists or obstructs, either himself or on behalf of the judgment‑debtor through the use of force, the execution of a decree, shall be punishable with imprisonment which may extend to one year, or with fine or with both. (4) Whoever dishonestly issues a cheque which is dishonoured shall be punishable with imprisonment which may extend to one year, or with fine, or with both, unless he can establish, for which the burden o f proof shall rest on him, that he had made arrangements with his bank to ensure that the cheque would be honoured and that the bank was at fault in not honouring the cheque. (5) Where the person guilty of an offence under this Act is a company or other body corporate, the Chief Executive by whatever name called, and any Director, or officer involved shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. (6) All offences under this Act shall be bailable, non‑cognizable and compoundable.