Circulars/Notifications - Banking Supervision Department  
 BSD Circular No. 25
June 27, 2001 

All Banks/NBFIs

 

CASES OF WILLFUL DEFAULT  
PENDING BEFORE ACCOUNTABILITY COURTS

 

Dear Sirs,

 The Honorable High Court of Sindh in a judgment on Constitution Petition                      
 No.  D-1896/2000 has issued following directions:

 Quote: “ We are of the considered opinion that the only pragmatic and practicable solution is that in all such cases the pending proceedings should be kept in abeyance with directions to the concerned authorities to serve a 30 days statutory notice on each alleged willful defaulter providing opportunity to submit explanation if any or to pay or return or re-pay the amount to any Bank, financial institution, cooperative society or a Government department or a statutory body or any authority established or controlled by the government, the amount due  and if the amount due is paid, returned or re-paid within 30 days of the service of statutory notice then it would not be a case of willful default and necessary steps shall be taken for withdrawal from prosecution and release of the accused. If the amount due is not paid with 30 days of the service of statutory notice as above, then a 7 days notice shall be served on the alleged defaulter to satisfy the Governor State Bank of Pakistan, that he has not committed any default. If an alleged defaulter is able to satisfy the Governor State Bank of Pakistan that he has not committed a willful default then the recommendations of the Governor State bank of Pakistan recorded in writing with reasons therein shall be submitted for final decision of the Accountability Court. If an alleged defaulter fails to pay or return or re-pay the amount due to the Bank, financial institution etc, with in the statutory period of 30 days of service of notice and alleged defaulter further fails to satisfy the Governor State Bank of Pakistan within additional 7 days period that he has not committed any willful default and the Governor State Bank of Pakistan holds the alleged defaulter to have prima-facie committed the guilt of willful default in his recommendations for the reasons recorded therein the Accountability Court my re-commence the proceedings from the stage where it was kept in abeyance.” Unquote.

 The Banks/NBFIs are advised to comply with above orders of Hon’ble High Court of Sindh.



Yours faithfully,
(Muhammad Kamran Shehzad)
Joint Director
       
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