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2006 CLD 484

NAEEMUDDIN KHAN vs ALLIED BANK OF PAKISTAN through President and 2

Citation2006 CLD 484
CourtSindh High Court
Case No.Suit No,442 of 2004
Date2006-02-15
Judge(s)Gulzar Ahmed
ResultOrder accordingly

ORDER

1. ' GULZAR AHMED, J.---This is an application under Order VII, rule 11, C.P.C. Filed by defendants 1 and 2 seeking rejection of the plaint on the ground that the suit pertains to the banking matter in which the Banking Court has exclusive jurisdiction in terms of section 9 of the Financial Institutions (Recovery of Finances) Ordinance, 2001. No counter-affidavit to this application has been filed. The record shows that the plaintiff counsel appeared on 3-6-2004 and on 6-12-2004 and since then on 24-1-2005, 22-2-2005, 5-5-2005, 28-9-2005, 15-11-2005 and 8-12-2005 remained absent and even today is called absent. The perusal of the plaint shows that plaintiff was a guarantor in respect of loan obtained by his wife namely Mst. Rehana Khan, proprietor of Lucky Trading Company from the defendant No,1 and on default in payment of the loan the bank had filed suit in the Banking Court which was decreed and subsequently an execution application was filed in which the mortgaged property was auctioned. This suit has been filed by the plaintiff for damages or in the alternative for possession on the ground that the bank has not settled the matter in terms of the State Bank of Pakistan Circular No,29 dated 15-10-2002. Apparently the matter relates to finance granted by the bank in which the plaintiff was a guarantor and has also mortgaged his property. Section 9 of the Ordinance 2001 provides that where a customer or financial institution commits default in fulfilment of obligation with regard to any finance, the financial institution or as the case may be, the customer may institute suit in the Banking Court. The customer has been defined to be a surety or an indemnifier and obligation includes warranties and mortgages. The plaintiff being a customer and the matter being in relation to obligation, the jurisdiction of Banking Courts in terms of section 9 of the Ordinance is attracted to the case in hand. As it has been found that forum for the suit is the Banking Court therefore, the plaint cannot be rejected but it can be returned to the plaintiff for presentation before the proper Court. Accordingly the application is treated one to be under Order VII, rule 10, C.P.C. And is allowed. The plaint be returned to the plaintiff for presentation before the proper Court.

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