you are aware the Governor, State Bank of Pakistan has to
satisfy himself that the cases referred to him by the banks,
DFIs and financial institutions under Section 31-D of the
NAB ordinance, 1999 in fact pertain to willful default. In
order to assist him in this task the following procedure has
been laid down which should be strictly adhered: -
President/Chief Executive will give his detailed comments
with regard to correctness or otherwise of statements contained
in reply/ies (if any) (the “Reply”) to thirty (30) day’s Notice
given by concerned bank/NBFI pursuant to the first proviso
of Section 5 (r) of the NAB Ordinance.
If no reply to thirty (30) days’ Notice has been given,
then President/Chief Executive should give his detailed comments
with regard to correctness or otherwise of contentions, if
any, earlier raised by or on behalf of the alleged defaulters
disputing banks/NBFIs claim in whole or in part.
If the matter has been subject to negotiations for
settlement, it should be confirmed that no settlement has
Amount due to bank/NBFI, i.e. defaulted loan,
should be clearly and correctly stated.
If quantum of the amount said to be due is disputed,
then President’s/Chief Executive’s views on merits of such
dispute should be stated. Further, amount admitted and amount
disputed should be separately stated.
If defaulted loan is subject to litigation/s, then
particulars of claims and contentions of the parties and their
merits should be furnished.
It should be confirmed that no order restraining the
initiation of proceedings under the NAB Ordinance has been
passed by any competent court of law.
Cases where persons are notoriously known to have defrauded
and/or have without any plausible argument deliberately failed
to pay amounts due to banks and other financial institutions
should be given priority. Before forwarding the case to the
Governor, this aspect needs to be examined by President/Chief
Procedure prescribed in this Circular should be strictly
adhered to in all future cases.
In cases where banks/NBFIs have already requested the
Governor to make a reference to NAB, following procedure should
Further letter from President/Chief Executive setting
out details as stated in paragraph 1 to 8 above should be
sent to the Governor.
President/Chief Executive should specify cases which
are to be given priority on the basis of the criteria stated
in this circular.
Please note that procedure prescribed in this circular
letter is in addition to procedures set out in Circular Letter
No. 17 dated July 19, 2001 and Letter No. BSD/RU-55/X/NAB/14084/2001
dated October 2, 2001.
Whilst approaching the Governor to make a reference
to NAB, President/Chief Executive should expressly and specifically
confirm that prescribed procedures as notified from time to
time have been strictly followed.