Loan default: Bank seeks court order for case registration

The petition sought the court’s direction to the police to register a case.

LAHORE:

An additional district and sessions judge on Friday sought comments from Gulshan-i-Ravi police station house officer (SHO) on a petition by a microfinance bank, seeking registration of a case against 11 persons for allegedly defaulting on their loans.

Petitioner Fraz Gul, a branch manager at FINCA Microfinance Bank Limited (formerly Kashf Microfinance Bank Limited), contended that FINCA was dealing with micro-finance in accordance with Microfinance Institutions Ordinance 2001 and the State Bank of Pakistan rules in order to alleviate poverty and enhance economic stability of the poor.

He said the bank had extended loans worth Rs605,555 to respondents Rizwan Ali, Hafeezur Rehman, Shehzad Bhatti, Khalid Naseer, Malik Imran, Ulfat Hussain, Nadeem, Shakir, Tariq, Ramzan and Faheem.

The cheques that the respondents had given to the bank against the loans had been dishonoured.

He submitted that he had contacted the respondents and requesting them to pay the installments but they had not done so.

The petitioner said that he had approached the police station for registration of a case against the respondents but the SHO refused to register a case. He sought the court’s direction to the police to register a case.

Published in The Express Tribune, May 3^rd, 2014.