BANKING courts III and IV, Karachi, have been vacant for long and no judge has been appointed so far. There are five banking courts functioning in Karachi where banks, development financial institutions, leasing companies, etc., file their suits for the recovery of stuck-up finances.

As per practice, the linked judges have been deputed to hear the cases which are pending for adjudication but the present judges of the remaining two courts are busy in their courts and only selected cases are being heard. Other cases are being adjourned. Therefore, several suits are pending.

Special recovery laws were promulgated for smooth and speedy trial. They deal with the recovery process of bank loans and loan defaults. A smooth recovery process will result in growth of healthy credit culture.

In terms of clause five of sub-section four of Financial Institution (Recovery of Finances) Ordinance (Amendment) Act 2016, a judge of a banking court should be appointed by the federal government in consultation with the chief justice of the high court. No person should be appointed banking court judge unless he is qualified or has been a district judge.

Similarly, in accordance with sub section 10 of section five of Amendment Act 2016, a banking court judge will submit to the high court chief justice of the province in which the banking court is established, reports on a quarterly basis regarding the number of cases filed, heard and disposed of.

It is suggested that a copy of quarterly report should be sent to the governor of the State Bank of Pakistan, Securities and Exchange Commission of Pakistan and other financial institutions for close monitoring.

A website should also be launched for banking courts division-wise in each province where the cause list should be displayed.

Nisar Ahmed
Karachi

Published in Dawn, March 23rd, 2017