Plaint for Recovery under FIRO

IN THE COURT OF THE LEARNED BANKING COURT NO. _____, district

Banking Court Suit No. _____ of year Under Section 9 of the Financial Institutions (Recovery of Finances) Ordinance 2001

financial_institution_name, a financial institution / banking company duly licensed under the Banking Companies Ordinance 1962, having its registered office at bank_registered_office, through its authorised attorney bank_attorney_name, holder of Power of Attorney dated attorney_poa_date ... Plaintiff (Financial Institution)

VERSUS

1. borrower_name, son/daughter of borrower_father, resident of borrower_address, CNIC No. borrower_cnic (Principal Borrower); 2. guarantor_1_name, son/daughter of guarantor_1_father, resident of guarantor_1_address, CNIC No. guarantor_1_cnic (Guarantor); 3. other_defendants_list ... Defendants

PLAINT FOR RECOVERY OF FINANCE WITH COST OF FUNDS, MARK-UP, AND CHARGES

Suit valuation for the purposes of court fee and jurisdiction: Rs. outstanding_principal (principal) plus Rs. outstanding_markup (mark-up / cost of funds), totaling Rs. total_outstanding. Court fee paid: Rs. court_fee_paid.

Respectfully sheweth:

1. That the Plaintiff is a financial institution within the meaning of Section 2(a) of the Financial Institutions (Recovery of Finances) Ordinance 2001, duly licensed by the State Bank of Pakistan under the Banking Companies Ordinance 1962, and is engaged in the business of banking and provision of finance facilities. The Plaintiff is competent and authorised to institute the present suit through its attorney.

2. SANCTION OF FINANCE FACILITY: The Defendant No. 1 (Principal Borrower) approached the Plaintiff for the sanction of finance facilities to meet its working capital / business / personal requirements. The Plaintiff, on the basis of the documents and representations submitted by Defendant No. 1, sanctioned the following finance facility: nature of facility facility_type, principal amount Rs. principal_amount, sanctioned vide letter dated sanction_letter_date, bearing reference sanction_reference. A copy of the sanction advice is annexed and marked as Exhibit P-1.

3. EXECUTION OF FINANCE DOCUMENTS: Pursuant to the sanction, the Defendants executed the following finance documents in favour of the Plaintiff on documents_execution_date: (a) Finance Agreement; (b) Demand Promissory Note for Rs. principal_amount; (c) Letter of Hypothecation / Pledge / Mortgage; (d) Personal Guarantee by Defendant No. 2; (e) Authority Letter; (f) other_documents. Certified copies of all finance documents are annexed and marked as Exhibits P-2 to P-7.

4. SECURITY: As security for due repayment of the finance, the Defendants charged the following assets in favour of the Plaintiff: security_description (registered mortgage of immovable property situated at security_property_address / hypothecation of stocks and receivables / pledge of marketable securities / lien over deposits / personal guarantees, etc.). The security documents stand duly registered / perfected under applicable law.

5. DISBURSEMENT: The principal amount of Rs. principal_amount was duly disbursed by the Plaintiff to the credit of Defendant No. 1 on disbursement_date, as is reflected in the disbursement advice and in the Defendant No. 1's account statement, copies of which are annexed.

6. TERMS OF REPAYMENT: The repayment terms agreed between the parties were as follows: (a) tenure tenure; (b) repayment in number_of_instalments monthly / quarterly instalments of Rs. instalment_amount each; (c) cost of funds / mark-up at the rate of markup_rate per annum on the outstanding principal; (d) penal mark-up of penal_markup per annum on overdue instalments; (e) repayment to commence from first_instalment_date.

7. DEFAULT BY DEFENDANTS: The Defendants made the following payments before defaulting: partial_payments_made. From default_date onwards, the Defendants have failed and neglected to pay any further instalments, mark-up, or other charges. The Defendants are accordingly in continuing default within the meaning of the finance documents and the Ordinance.

8. DEMAND NOTICE: The Plaintiff served upon the Defendants a written notice of demand dated demand_notice_date, in accordance with the provisions of the Financial Institutions (Recovery of Finances) Ordinance 2001, calling upon the Defendants to pay the entire outstanding amount with mark-up and charges within thirty days. The Defendants either failed to respond or, having responded, failed to pay. notice_response.

9. ACCELERATION: By reason of the continuing default, the Plaintiff has, in accordance with the finance agreement, declared the entire facility to have become payable on demand and accelerated the maturity thereof. The Defendants are accordingly liable to pay the entire outstanding amount forthwith.

10. CALCULATION OF DUES: As on calculation_date, the amount due and payable by the Defendants to the Plaintiff is calculated as follows: outstanding principal Rs. outstanding_principal; outstanding mark-up Rs. outstanding_markup; penal mark-up Rs. penal_markup_amount; charges and expenses Rs. charges; total Rs. total_outstanding. A detailed statement of account is annexed and marked as Exhibit P-8.

11. JOINT AND SEVERAL LIABILITY: All the Defendants are jointly and severally liable for the entire amount due to the Plaintiff. The personal guarantee executed by Defendant No. 2 is co-extensive with the liability of the Principal Borrower.

12. ENFORCEMENT OF SECURITY: The Plaintiff prays for a decree directing sale of the secured assets in execution of the decree, in accordance with Section 15 of the Ordinance, in the event that the decretal amount is not paid within the time fixed by this Honourable Court.

13. JURISDICTION: This Honourable Banking Court has the exclusive jurisdiction to entertain and decide the present suit by virtue of Sections 7 and 9 of the Financial Institutions (Recovery of Finances) Ordinance 2001, the suit being for recovery of a finance from defaulting customers of a financial institution.

14. LIMITATION: The present suit is filed within the period of limitation prescribed by the First Schedule to the Limitation Act 1908, computed from the date of last default / acceleration of the facility, and is otherwise within time.

15. NO PRIOR LITIGATION: There is no prior or pending litigation between the parties in respect of the same subject-matter before any other forum, save and except prior_litigation_disclosure.

16. CAUSE OF ACTION: The cause of action accrued to the Plaintiff on default_date and continues to accrue afresh on each subsequent date on which the Defendants persist in default.

PRAYER

In view of the foregoing, the Plaintiff most respectfully prays that this Honourable Banking Court, after hearing the parties and considering the evidence on record, may be pleased to:

(a) Pass a decree for recovery of the principal sum of Rs. outstanding_principal, mark-up of Rs. outstanding_markup, penal mark-up of Rs. penal_markup_amount, and charges of Rs. charges, totaling Rs. total_outstanding, jointly and severally against all the Defendants;

(b) Award further mark-up at the contractual rate from the date of institution of the present suit until actual payment of the decretal amount;

(c) Direct sale of the secured assets through court auction in execution of the decree under Section 15 of the Ordinance, in the event of non-payment of the decretal amount within the time fixed by this Honourable Court;

(d) Direct attachment and sale of the personal property of the Defendants in case of any deficiency after sale of the secured assets;

(e) Award costs of the suit to the Plaintiff, including the costs of valuation, perfection of security, and recovery; and

(f) Grant any other or further relief that this Honourable Banking Court may consider just, fit, and proper in the facts and circumstances of the case.

VERIFICATION

Verified on solemn affirmation at verification_place on this _____ day of _____, year, that the contents of paragraphs 1 to 16 of the above plaint are true and correct to the best of the deponent's knowledge and belief, and nothing material has been concealed therefrom.

_____________________________ bank_attorney_name Authorised Attorney for financial_institution_name Through: _____________________________ counsel_name Advocate