ABID AZIZ SHEIKH, J.---Through this appeal under section 22 of the Financial Institutions (Recovery of Finances) Ordinance, 2001 (Ordinance), the appellant has challenged the judgment and decree dated 10.12.2013, whereby leave application of the appellant was dismissed and suit was decreed.
2.Brief facts are that appellant availed credit card facility on 24.02.2007, from respondent bank, in which expiry date of credit card was 24.02.2009. Respondent bank filed suit for recovery of Rs,191031/25 on 16.04.2012 on the ground that amount utilized against the credit card facility by the appellant was not paid back to respondent bank. The appellant filed PLA raising various objections including question of limitation, however, the said PLA was dismissed and suit was decreed on 10.12.2013. The appellant being aggrieved has filed this appeal.
3.Learned counsel for the appellant submits that credit card facility was availed on 24.02.2007 which stood expired on 24.02.2009. Submits that any amount availed under the credit card facility could be recovered within three years from the date of default or maximum from the date of expiry.
Contends that suit filed on 16.04.2012, was grossly barred by time. He submits that this aspect of the matter was not even touched by the learned Banking Court, while passing the impugned decree.
4.Learned counsel for the respondents submits that suit filed by the respondent bank was within time because appellant acknowledged his liability after the date of expiry of credit card. He however could not deny that this aspect of the matter was not considered by the learned Banking Court, in impugned judgment and decree.
5We have heard learned counsel for the parties and perused the record.
6. It is admitted position on record that credit card facility by appellant was availed on 24.02.2007 which stood expired on 24.02.2009. The amount availed during validity of said credit card facility could be recovered within a period of three years from the date, when amount became payable or maximum from the date of expiry of the credit card facility i,e, 24.02.2009. If limitation period is calculated from the date of expiry of credit card facility, the limitation of three years expired on 24.02.2012. Therefore, the suit filed by the respondent bank on 16.04.2012, was apparently not within limitation. The argument of the respondent' counsel that after date of expiry acknowledgement was made by the appellant and date of limitation extended under section 19 of the Limitation Act, 1908 (Act), is a mix question of law and fact, which could not be decided without recording of evidence. Even otherwise admittedly ground of limitation was specifically raised in para 3 of the PLA but the learned Banking Court has neither discussed nor recorded any of finding on this ground.
7. The question of limitation raised by the appellant being a substantial question of law and fact makes out a good ground for grant of eave to appear and defend the suit under section 10 of the Ordinance.
8.In view of above discussion, we set aside the impugned judgment and decree dated 10.12.2013 and grant leave to defend to the appellant. The matter is remitted back to learned Banking Court to decide the case, after recording of evidence. It is however, clarified that observations made by this Court are only for purpose of grant of leave and will not prejudice the case of either party after recording of evidence before the learned Banking Court. <u><b>This appeal is allowed in above terms. <u></b>