BANKERS EQUITY (LTD.) and others vs Messrs BENTONITE PAKISTAN LTD and others
This matter arises from a petition for leave to appeal against the rejection of a plaint in a recovery suit filed by the petitioners. The core legal question concerned whether the plaint was rightly rejected for non-compliance with sections 9(1) and (2) of the Financial Institutions (Recovery of Finances) Ordinance, 2001, and whether the applicable law should have been the Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997, given the loan's origin in 1987. The Supreme Court of Pakistan, acting on the concession of the respondent's counsel that the omission was rectifiable, converted the petition into an appeal, allowed it, and set aside the impugned judgment. The Court held that the suit shall remain pending, granting the appellants fifteen days to file an amended plaint, thereby establishing that rectifiable procedural omissions in recovery plaints should be allowed to be cured rather than resulting in outright rejection.
- Whether the non-compliance with sections 9(1) and (2) of the Financial Institutions (Recovery of Finances) Ordinance, 2001 is a rectifiable mistake?
- Can a petition against the rejection of a plaint in a recovery suit be converted into an appeal when the respondent consents to the amendment of the plaint?
- Section 9(1), Financial Institutions (Recovery of Finances) Ordinance 2001
- Section 9(2), Financial Institutions (Recovery of Finances) Ordinance 2001
ORDER
' TASSADUQ HUSSAIN JILLANI, J.---Learned counsel for the petitioners submits that in the suit for recovery filed by the petitioners' plaint was rejected solely on the ground that petitioner/plaintiffs had failed to comply with sections 9(1) and (2) of the Financial Institutions (Recovery of Finances)
Ordinance, 2001 although it was a rectifiable mistake and even otherwise since the loan was relatable to the year 1987, the matter should have been dealt with under the Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997 and not under the Financial Institutions (Recovery of Finances) Ordinance, 2001.
2. Learned counsel for the respondent No,4 who was on watching brief in all fairness submitted that it was a rectifiable mistake/omission and if the petitioners amend the plaint within a period of 15 days, respondent has no objection if this petition is converted into appeal and allowed.
3. In view of the fair stand taken by respondent's learned counsel, this petition is converted into appeal and allowed and the impugned judgment is set aside. Civil Original Suit No,44 of 2000 shall be deemed to be pending and the appellants shall file amended suit within 15 days.