The suits were filed after the recent 18th amendment in the Constitution which provides for a “fair trial” whereby every citizen shall now have the right to defend themselves in any court proceedings and no case can be decided until the chance of a hearing is given along with the opportunity to submit documents and proof.
The State Bank of Pakistan, almost all banks and financial institutions are defendants in these suits as huge loans are involved. The impugned sections deals with the rendition of account and provides procedure before issuance of a decree in a suit filed by a financial institution extending loan. As per ordinary procedure under the 2001 ordinance, once a suit is filed before a banking court, instantly publication is ordered and copies are sent to the defendant.
The defendant having knowledge of the institution of a suit was required to approach the relevant court and seek leave to defend. In case of failure by a defendant to put up his defence, the court can decree the suit exparte. After the 18th amendment to the Constitution of Pakistan, 1973, section 10 (a) was inserted to provide for “fair trial”, shifting the burden of proof upon a defendant which implies that no case can be decreed by a banking court unless evidence is recorded and the rendition of accounts is done, shaking the entire scheme of special law (Special Banking Courts).
On Friday, the bench heard Anwar Mansoor Khan advocate at length. He was at his feet when the bench comprising Justice Muhammad Tasnim adjourned the proceedings till Tuesday next when he will continue his arguments. Abdul Qayyum Abbasi advocate represented the defendant SBP, while other prominent lawyers appearing in the suits are S Salam Ansari, Suleman Aslam Butt, Arshad Tayyeb Ali and others.
Published in The Express Tribune, October 23rd, 2010.
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