An Act to repeal, and with certain modifications and re-enact
the Banking Companies (Recovery of Loans) Ordinance, 1979
and the Banking Tribunals Ordinance, 1984
Whereas
it is expedient to repeal, and with certain modifications
to consolidate and re-enact the Banking Companies (Recovery
of Loans) Ordinance, 1979 (XIX of 1979), and the Banking Tribunals
Ordinance, 1984 (LVIII of 1984);
It
is hereby enacted as under:--
1. Short title, extent and commencement.-
(1) This Act may be called the Banking Companies (Recovery of
Loans, Advances, Credits and Finances) Act, 1997.
(2) it extends to the whole of Pakistan.
(3) It shall come into force at once.
2. Definitions.-It this Act, unless there is
anything repugnant in the subject or context,
(a)
"banking company" means-
(i)
any company whether incorporated within or beyond Pakistan
which transacts the business of banking or any associated
or ancillary business in Pakistan and includes a government
savings bank; (ii) a modaraba or moaraba management company,
leasing company, investment bank, financing company, unit
trust or mutual
Fund
of any kind and credit or investment institution, corporation
or company, whether industrial, agricultural or development;
and
(iii)
any company authorised by law to carry in any similar business
specified in the Schedule to this Act; and
(b)
"Banking Court" means-
(i)
in respect of a case in which the outstanding amount of claim
based in a loan or finance does not exceed thirty million
rupees or the trial of offences under this Act, the Court
established under section 4; and (ii) in respect of any other
case, the High Court;
(c)
"borrower" means a person who has obtained a loan
under a system based in interest from a banking company and
includes a surety or an indemnifier;
(d) " customer" means a person who has obtained
finance under a system which is not based in interest from
a banking company or is the real beneficiary of such finance,
and includes a surety or an indemnifier;