29/2005 Suit.B THARPARKAR SUGAR MILLS LTD. (Plaintiff) V/S N.D.F.C. & ORS. (Defendant)

29/2005 Suit.B THARPARKAR SUGAR MILLS LTD. (Plaintiff) V/S N.D.F.C. & ORS. (Defendant) Sindh High Court

Bench: Hon'ble Chief Justice Mr. Justice Muhammad Shafi Siddiqui(Author) Order Date: 18-NOV-14

"Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----Ss. 9, 19, 22 & 27---State Bank of Pakistan, BPD Circular No.29 dated 15-10-2002---Suit for declaration and injunction---Auction of property---Plaintiff company filed application for restraining defendant Bank from auctioning its property to recover outstanding amount in pursuance of decree passed in an earlier suit---Plea raised by plaintiff company was with regard to applicability of State Bank of Pakistan, BPD Circular No.29 dated 15-10-2002---Validity---Enforcement of BPD Circular No.29 by individual Banks to their respective customers was in fact the prerogative of Banks and it was for them to decide whether such debt outstanding against customer was a lost debt or recoverable in terms of assets mortgaged with them---State Bank of Pakistan, BPD Circular No.29 was binding once the Bank reached to a decision that such debt was not recoverable or a lost category and then procedure and perameters as laid down therein were to be adopted as a binding parameter but prima facie not in terms of its mandatory application---Judgment. and decree passed in earlier suit could not be made subservient to the outcome of present suit in terms of Ss. 22 & 27 of Financial Institutions (Recovery of Finances) Ordinance, 2001---Any mode whereby consent decree passed in earlier suit was sought to be deferred, modified, altered and reviewed was violative of law--??Application was dismissed in circumstances."