This appeal under section 22 of the Finan cial Institutions (Recovery of Finances) Ordinance, 2001 ('Ordinance' ) is filed to call into question order dated 25.,1 1.2013 whereby the plaint of the suit filed by the appellant was returned to it in terms of Order VII, Rule 10, Civil Procedure Code, 1908 (` C.P.C.') for filing it before the Insurance Tribunal.
2. Facts of the case in brief are that the appellant filed a suit against, the respondent seeking recovery of Rs.5,700,000/-. The suit was contested by the respondent by filing its application for leave to defend. After hearing the arguments on the leave application, the Banking Court passed the order (impugned herein) for return of the plaint under Order VII, Rule 10, C.P .C. for filing it before the Insurance Tribunal, hence this appeal.
3. Learned counsel for the appellant submits that the Banking Court erred in law in returning the plaint prior to the decision on the leave application. Reliance in this regard is placed on judgments reported as Sheikh Muhammad Kashif v. Askari Leasing Limited (2004 CLD 1645 ) and Muhammad Azwar Siddiqui v. Chief Executivc Officer Union Leasing Limited (2006 CLD 946 ).
4. Learned counsel for the respondent, on the other hand, supported the order passed by this Court and submitted that the respondent was only a guarantor and without impleading the principal debtor the suit of the appellant against the respondent was not maintainable.
5. Arguments heard. Record perused.
6. It is an admitted fact that the transaction on the basis of which the appellant filed the suit against the respondent related to 'finance' as defined in section 2(f) of the Ordinance. The Banking Court, therefore, retained the necessary jurisdiction to entertain and adjudicate upon the suit. It is furthermore clear by the judgments relied upon by the appellant that without decision on the leave application, the plaint of the suit of the appellant could not be returned by the Banking Court. The Banking Court clearly fell in error in passing the impugned order for return of the plaint.
7. We, therefore, allow this appeal and set aside order dated 25.11.2013 passed by the Banking Court with the result that the suit filed by the appellant shall be deemed to be pending before it. The Banking Court is directed to pass a decision on the application for leave to defend filed by the respondent strictly in accordance with law.
Parties are directed to appear before the Banking Court on 27.08.2020.