ORDER SHEET

IN THE HIGH COURT OF SINDH AT KARACHI

I.A. No.46 of 2021

___________________________________________________________________ Date Order with signature of Judge

___________________________________________________________________

Hearing / Priority Case:

1. For order on office objection a/w reply as at “A”.

2. For hearing of main case.

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31^st August 2021

Mr. Muhammad Mohsin Khan, Advocate for Appellant.

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Instant appeal has been filed against an order dated 16.03.2021 passed by the learned Banking Court No.III, at Karachi in Suit No.128 of 2014 filed by respondent Bank for the recovery of amount, whereby, the application filed by the appellant under section 16(3)(b) of the Financial Institutions (Recovery of Finances) Ordinance, 2001 with a prayer to direct the respondent Bank to handover the possession of the vehicle, which according to the learned counsel, was forcefully taken by the respondent Bank during pendency of the suit, and also to grant compensation in the sum of Rs.1,000,000/- for wrong, unjust and illegal possession of the vehicle by the bank, has been disposed of by the learned Banking Court while holding that since the vehicle has already been auctioned and the possession has been given to the auction-purchaser, therefore, the respondent Bank has been directed to deposit auction amount with the Nazir of the Court, who has been directed to keep the auction amount in safe custody till final disposal of the suit. It has been further observed that the said amount shall be disbursed to the party found to be entitled whereof at the time of final disposal of the suit and with such observations the application has been disposed of.

Learned counsel for the appellant submits that the claim of the appellant for compensation has neither been allowed, nor there has been any finding recorded by the learned Banking Court, while passing the impugned order, whereas, according to the learned counsel, admittedly the subject vehicle was forcefully taken from the appellant by the respondent Bank without permission of the Court, therefore, the appellant is entitled to an amount of compensation, as referred to hereinabove.

We have heard the learned counsel for the appellant and perused the impugned order passed by the learned Banking Court, which reflects that in view of the fact that subject vehicle was already auctioned and its possession was handed over to the third party, therefore, the learned Banking Court has been pleased to direct the respondent Bank to deposit the auction amount before the Nazir of the Court, whereas, it has been further held that said amount shall be disbursed to the party found to be entitled at the final disposal of the suit. There seems no error or illegality in the impugned order under the facts and circumstances of the case, as financial interest of the appellant, if any, has been protected while securing the auction amount before the Nazir of the Court. As regard the claim of compensation, it appears that no finding has been recorded by the learned Banking Court to this effect. However, since the suit is pending, the appellant will be at liberty to press the claim of compensation, if any, at the time of final hearing of the suit, whereas, it is expected that this aspect of the matter will also be considered by the learned Banking Court while passing the judgment and decree in the pending suit.

With these observations, instant appeal stands disposed off.

J U D G E

*Farhan/PS*