ORDER SHEET

IN THE HIGH COURT OF SINDH, KARACHI

First Appeal No.78 of 2021

Date	Order with signature of Judge

Hearing of Case

1. For orders on office objection at ‘A’

2. For hearing of main case.

20.10.2026

Mr. Khalid Memood Siddiqui, Advocate for the Appellant.

Mr. Naeem Akhtar Khan Tanoli, Advocate for the Respondents 2-4.

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Through the instant First Appeal, preferred under Section 22 of the Financial Institutions (Recovery of Finances) Ordinance, 2001, the Appellant has assailed the judgment and decree dated 27.05.2021 passed by the learned Banking Court No.V, Karachi, in Suit No.500 of 2017, whereby the suit instituted by the Appellant-Plaintiff was dismissed as incompetent and unsustainable, with no order as to costs. Earlier, the learned Trial Court had dismissed the application for leave to defend filed by the Respondents-Defendants for being devoid of merit.

After addressing the Court at some length, learned counsel for the parties, without prejudice to their respective rights, claims and contentions on merits, have arrived at a consensus for disposal of the instant appeal by setting aside the impugned judgment and decree and remanding the matter to the learned Trial Court for fresh adjudication. They have further agreed that the earlier order dismissing the Respondents-Defendants' application for leave to defend may also be recalled and that the said application be allowed, enabling the parties to contest the suit on merits.

Accordingly, in view of the consensus reached between learned counsel for the parties and having regard to the nature of the controversy, which requires determination after recording evidence, the instant First Appeal is disposed of by consent. The impugned judgment and decree dated 27.05.2021 passed by the learned Banking Court No.V, Karachi, in Suit No.500 of 2017 are hereby set aside. The earlier order dismissing the Respondents-Defendants' application for leave to defend is also set aside. Considering the agreement of the parties to contest the matter on merits and the existence of triable questions requiring evidence, the application for leave to defend is allowed. Consequently, the matter is remanded to the learned Trial Court for fresh adjudication in accordance with law, after framing appropriate issues and recording evidence of the parties. It is clarified that no opinion has been expressed on the merits of the respective claims and defences, which shall be determined independently by the learned Trial Court.

Since the suit pertains to the year 2017, the learned Trial Court shall proceed expeditiously and make every endeavour to conclude the proceedings, preferably within four (04) months from the date of receipt of this order. The parties shall extend full cooperation, and unnecessary adjournments shall be avoided.

The appeal stands disposed of in the above terms, along with all pending applications, if any.

JUDGE