10

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:‑‑ 10. 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 loan, for interest at the contracted rate or at the rate o1 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) The Banking Court shall not, without the consent of the decree holder, allow the decretal amount to be paid in such instalments as would extend the period of full recovery beyond two years from the date of decree.