On 17 December 2019, the High Court of Sindh, in Pakistan, has issued a judgment in favor of our client that has been a respondent, in this case of NIB Bank Limited v. Allied Services & Others (First Appeal No. 69/2007).

The original case before the subordinate Banking Court pertained to a claim by a NIB Bank against a borrower for the breach of lease finance facility where collateral was transport vehicles of borrower’s business that were repossessed by the bank before commencement of legal action based on the given claim. The judgment was issued in favor of NIB Bank in the amount of PKR 352,405 (approx. USD 2,320) but NIB Bank was not happy with the monetary figure calculated in the judgment of the Banking Court.

Accordingly, after securing a copy of the Banking Court decree (that is formalized in line with the given judgment) NIB Bank filed an appeal with the High Court after 48 days of the date of the given judgment, without seeking condonation of delay in filing appeal, whereas the governing statutory provisions clearly state that such appeals must be filed within 30 days of the date of the given judgment.

NIB Bank claimed that the figures in the impugned judgment be revisited to factor in the additional amount of PKR 3,624,922 (approx. USD 23,850) towards unpaid rentals/debt installments and interest/markup. The respondents led by Allied Services challenged by maintaining that the given appeal fails on statute of limitations as it has been filed after the expiry of 30 days limitation period without even seeking any leave from High Court for condonation of such delay on sufficient grounds (in any). The respondents further asserted that NIB Bank is not entitled to any additional amounts once lease finance agreement was in breach the forced repossession of vehicles was effected by NIB Bank even before commencement of legal action before the Banking Court.

The High Court ruled on this by taking up only the statute of limitation issue as follows:

- The impugned judgment was issued on 24 August 2007, and in accordance with the special law Section 22 of the Financial Institutions (Recovery of Finances) Ordinance, 2001, the appeals assailing such judgment (under special law) must be filed within 30 days of the date of the given judgment;

- In this case NIB Bank waited for 48 days from the date of the impugned judgment, and is at error in relying on ordinary law Section 96 of the Civil Procedure Code, 1908, whereby appeals can be filed within 30 days of the decrees that are issued under ordinary law;

- Further, that NIB Bank also did not file any motion seeking condonation of delay in filing appeal after the expiry of the statutory deadline per Section 22 of the Financial Institutions (Recovery of Finances) Ordinance, 2001; and

- Thus, the appeal filed by NIB Bank is hopelessly time-barred, and is accordingly dismissed.

This precedent is a significant contribution to banking and finance law jurisprudence in Pakistan.