This regular first appeal is filed under section 22 of the Financial Institutions (Recovery of Finances)
Ordinance, 2001 (the Ordinance) for calling into question judgment and decree dated 18.04.2018 passed by the banking court whereby a decree was passed in a suit filed by appellant bank.
2. Brief facts of the case are that the appellant bank filed a suit against the respondent seeking recovery of Rs.1,310,811/- due as on 30.04.2012. The respondent contested the suit by filing his application for leave to defend. The banking court after granting hearing to the parties passed a decree in the sum of Rs.121,612/- together with cost of funds from the date of the suit.
3. Learned counsel submits that the finance facility was in regard to the house under which payment of rent was liable to be made by the respondent which aspect of the matter was overlooked by the banking court. Similarly, it is stated that the penalty and insurance charge levied by the appellant bank were also illegally disallowed by the banking court. Learned counsel for the respondent bank, on the other hand, supported the judgment and decree passed by the banking court.
4. It is on admitted fact that the respondent during the pendency of the suit paid an amount of Rs.1,060,000/- to the appellant on 06.04.2018. The banking court disallowed the claim for penalty and insurance charges totaling Rs.79,632/- and after deducting the amount paid by the respondent during the pendency of suit held the appellant entitled to the decree for Rs.121,612/-.
5. In so far as the claim for insurance charges amounting to Rs.26,132/-, the same were liable to be paid by the respondent and was validly claimed by the appellant. As the banking court allowed costs of funds, the appellant was not entitled to claim future rent. The banking court, however, allowed costs of funds from the date of suit which ought to have been allowed from the date of default in terms of section 3 of the Ordinance.
6. In the circumstances, we partially allow this appeal and modify the judgment and decree of the banking court to the extent that it shall be deemed to have been passed for an amount of Rs.147,744/- against the respondent and in favour of the appellant bank together with cost of funds in terms of section 3 of the Ordinance. All the other terms and conditions of the decree shall remain intact.