Banking suit

Appellant claimed to be owner of mortgaged property, who sought setting aside of attachment order passed by Banking Court after the suit was decreed in favour of bank

Banking Court declined to set aside judgment and decree passed in favour of bank

Validity

Judgment and decree and order for attachment of mortgaged property passed during execution proceedings as well as orders dismissing application of appellant could not be assailed by appellant in such proceedings

Scope of banking suit was limited to the extent of a dispute between customer and financial institution in respect of finance so advanced and its recovery in case of default

Appellants were strangers to suit proceedings who failed to establish their nexus with banking suit filed for recovery of amount by respondent Bank against its customer under S. 9 of Financial Institutions (Recovery of Finances) Ordinance, 2001

High Court declined to interfere in the orders passed by Banking Court

Appeal was dismissed, in circumstances.

Even if a person is a customer, he has to fulfill other conditions such as availing of finance from financial institution.

Subsequently the plaintiff filed a fresh suit for recovery of excess amount received by Bank under the decree passed by Banking Court in earlier suit

Banking Court dismissed the suit filed by plaintiff

Validity

Person who was not a customer of Bank within the meaning of S. 2(c) of Financial Institutions (Recovery of Finances) Ordinance, 2001, such persons had no locus standi to file and maintain its suit

Quantification of amount of default once settled by way of a judgment and decree having attained finality could not be altered in the manner as had been agitated

High Court declined to interfere in the judgment and decree passed by Banking Court and imposed fine upon plaintiff

Appeal was dismissed in circumstances.

Banking suit is normally a suit on Accounts which are duly ledgered and maintained compulsorily in the books of Accounts under the prescribed principles/standards of Accounting in terms of the laws, rules and Banking practices

Instead of leaving it to the option of the parties to make general assertions on accounts, the Ordinance binds both the sides to be absolutely specific on accounts

Parties to a suit have been obligated equally to definitively plead and to specifically state their respective accounts

Scope of the suit thus becomes well defined

Controversies are confined to the claimed and/or the disputed numbers, facts and reasons thereof

Unnecessary controversial details, the evidence thereto and the time of the trial, are curtailed

Trial would remain within the laid out parametrical scope of the claimed and the disputed accounts.

Banking suit is normally a suit on Accounts which are duly ledgered and maintained compulsorily in the books of Accounts under the prescribed principles/standards of Accounting in terms of the laws, rules and Banking practices

Instead of leaving it to the option of the parties to make general assertions on accounts, the Ordinance binds both the sides to be absolutely specific on accounts

Parties to a suit have been obligated equally to definitively plead and to specifically state their respective accounts

Scope of the suit thus becomes well defined

Controversies are confined to the claimed and/or the disputed numbers, facts and reasons thereof

Unnecessary controversial details, the evidence thereto and the time of the trial, are curtailed

Trial would remain within the laid out parametrical scope of the claimed and the disputed accounts.