FAZAL-E-RABBI vs JUDGE BANKING COURT and 4 others
This appeal is directed against the order dated 9-9-2004 passed by the Banking Court, whereby an application filed under section 12 of the Financial Institutions (Recovery of Finances) Ordinance, 2001 by the appellant was dismissed as barred by limitation. The core legal question concerns the computation of the period of limitation for filing an application under section 12 when the defendant is served through citation in the press. The Lahore High Court held that where a defendant is served through citation, the period of limitation of 21 days commences from the date of knowledge. Since the impugned order contained no finding as to the date of knowledge of the appellant, the order was not sustainable. The Lahore High Court set aside the impugned order and remanded the case to the Banking Court to decide the application afresh after hearing both parties. The key principle laid down is that limitation for filing an application under section 12 of the Financial Institutions (Recovery of Finances) Ordinance, 2001 upon service by citation runs from the date of knowledge, requiring a clear finding by the court on this factual aspect.
- When does the limitation period of 21 days commence for filing an application under section 12 of the Financial Institutions (Recovery of Finances) Ordinance, 2001 when the defendant is served through citation in the press?
- Is a Banking Court required to record a specific finding as to the date of knowledge while dismissing an application under section 12 of the Financial Institutions (Recovery of Finances) Ordinance, 2001 on the ground of limitation?
- What is the legal effect of an order passed by a Banking Court under section 12 of the Financial Institutions (Recovery of Finances) Ordinance, 2001 without determining the date of knowledge of a defendant served via citation?
- Section 12, Financial Institutions (Recovery of Finances) Ordinance 2001
ORDER
' This appeal is directed against the order dated 9-9-2004 whereby an application filed under section 12 of the Financial Institution (Recovery of Finances) Ordinance, 2001 by the present appellant was dismissed.
2. Brief facts necessary for the adjudication of the lis at hand are; that the respondent/bank filed a suit for recovery, inter alia, against the present appellant and other respondents. The summons/notices were issued in accordance with the provisions of the said Ordinance.
Apparently, the service was not effected personally upon the appellant and the only mode of service available on the file was by way of citation in the press. The suit was decreed and execution proceedings commenced. Where after, the present appellant filed an application under section 12 of the Financial Institutions (Recovery of Finances), Ordinance, 2001 which has been dismissed by the Banking Court on the ground of being barred by limitation by way of the impugned order dated 9-9-2004.
' Perusal of section 12 where under the application was filed clearly reveals that where the defendant is served through citation the point of limitation of 21 days for filing an application under the said provision commences from the date of knowledge. A perusal of the impugned orders reveals that there is no finding as to the date of knowledge. In this view of the matter, the impugned order is not sustainable and is set aside. The case is remanded to banking Court to decide the application afresh after hearing both the parties. Appeal accepted. . The application filed by the respondent is deemed to be pending and will be decided by the Banking Court in accordance with law.