' JAWWAD S. KHAWAJA, J.---This appeal impugns the judgment and decree, dated 18-7-2001 passed by the learned Banking Court, Gujranwala.
2. Although we have heard both learned counsel at some length on merits, we do not wish to comment on the merits of the case, because we propose to allow the appeal, set aside the impugned judgment and decree and remand the case to the Banking Court.
3. For the purpose of this judgment, it is sufficient to say that appellant Sarfraz Ahmad filed a suit against the respondent-Bank. This suit was filed under the provisions of the Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997. In the circumstances, the Banking Court was required to call upon the defendant Bank to file an application seeking leave to appear and defend. In the present case, instead of asking the Bank to file an application seeking leave to appear and defend, the suit of the plaintiff was dismissed on the short ground that it related to some past and closed transaction.
4. The course of action adopted by the learned Banking Court is not consistent with the law prescribed by the aforesaid statute or by the Financial Institutions (Recovery of Finances)
Ordinance.
2001. The plaint filed by the plaintiff did disclose a cause of action. In the circumstances, the plaint, could not have been rejected. At best what could have been done was to consider the application, if any, filed by the defendant-Bank and then to decide the same.
5. In the above circumstances, the impugned judgment and decree, dated 18-7-2001 are set aside.
The suit of the plaintiff shall be deemed to be pending before the learned Banking Court, which shall proceed to decide the same on the lines indicated above in accordance with the Financial Institutions (Recovery of Finances) Ordinance, 2001. The record shall be sent back to the learned Banking Court forthwith.
' This appeal is disposed of in the above terms.