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ORDINANCE XXV OF 1997 ORDINANCE XXV OF 1997 BANKING COMPANIES (RECOVERY OF LOANS, ADVANCES, CREDITS AND FINANCES) ORDINANCE, 1997 An Ordinance to repeal, and with certain modifications to consolidate and re‑enact the banking Companies (Recovery of Loans) Ordinance, 1979 and the Banking Tribunals Ordinance, 1984 (Gazette of Pakistan, Extraordinary, Part I, 4th February, 1997] No.F.2(1)197‑Pub., dated 4‑2‑1997.‑‑‑The following Ordinance made by the President is hereby published for general information: Whereas it is expedient to repeal and with certain modifications to consolidate and re‑enact the Banking Companies (Recovery of Loans) Ordinance, 1979 (XIX of 1979) and the Banking Tribunals Ordinance, 1984 (LVIII of 1984); And whereas the National Assembly is not in session and the President is satisfied that the circumstances exist which render it necessary to take immediate action; Now, therefore, in exercise of the powers conferred by clause (1) of Article 89 of the Constitution of the Islamic Republic of Pakistan, the President is pleased to make and promulgate the following Ordinance, namely:‑‑ 9. Procedure of Banking Courts.‑‑(1) where a borrower or customer or yanking company commits default in fulfilling any obligation, the banking company or, as the case may be, the borrower or customer may file its claim with the Banking Court in the form of a plaint which shall be verified on oath in he case of a banking company by the Branch Manager or an officer of the rank A Assistant Vice‑President or Assistant Manager or such other officer as the Board of Directors of a banking company may authorise in this behalf. (2) On a plaint being filed with the Banking Court in accordance with he provisions of subsection (1), the Banking Court shall issue summons or notice requiring the defendant to show cause, within twenty‑one days of the service of such summons or notice, as to why the decree as prayed for in the Taint should not be passed against him. The summons or notice under this section shall be served on the defendant through the bailiff of the Court, by registered post acknowledgment due and by publication, and service in any of he aforesaid modes shall be deemed valid service for the purposes of the Ordinance. (3) Upon the defendant failing to file a reply with the time given in the show cause notice under subsection (2) or upon rejection by the Banking Court A the pleas taken by him in the reply, the Banking Court shall pass a decree as prayed for in the plaint. (4) In the event of the Banking Court passing a decree against the defendant on his failure to give a reply to the show cause notice within the period specified in subsection (2), the Banking Court may, on the application of the defendant filed within twenty‑one days of the passing of the decree, set aside the same and permit the defendant to file his reply under that subsection provided it is satisfied that there was sufficient cause for the defendant not having filed the reply within the specified period. (5) All suits filed in the Banking Court shall be disposed of within ninety days of the filing of the plaint and in case proceedings continue beyond the said period, the defendant shall be required to deposit in cash, or to furnish security acceptable to the Banking Court equal in value to, the claim in suit, and on failure of the defendant to make such deposit or furnish such security, the Banking Court shall pass decree as prayed for in the plaint: Provided that the requirement of deposit in cash or furnishing security may be dispensed with if in the opinion of the Banking Court the delay is not attributable to the conduct of the defendant. (6) Suits before a Banking Court shall come up for regular hearing as expeditiously as possible and, except in extraordinary circumstances and for reasons to be recorded, a Banking Court shall not allow adjournment for more than seven days. (7) Where the claim filed by a banking company before the Banking Court is for the enforcement of a mortgage of immovable property, the decree shall mean final decree for foreclosure or sale as provided for in Order XXXIV of the First Schedule to the Code of Civil Procedure, 1908 (Act V of 1908) and the provision relating to passing of preliminary decrees contained in the said Order shall not apply. (8) In respect of proceedings transferred to a Banking Court under subsection (6) of section 7, the application for leave to defend filed by a defendant under Order XXXVII of the First Schedule to the Code of Civil Procedure and the reply filed by a defendant under section 6 of the Banking Tribunals Ordinance 1984 shall be deemed to be a reply filed by a defendant under subsections (2) and (3), and no fresh show cause notice shall be necessary.