ISLAMABAD, Aug 24: The Supreme Court has put the attorney general on notice in a case challenging section 15 of the Financial Institutions (Recovery of Finance) Ordinance, 2001.

A division bench of the Supreme Court, comprising Justice Hamid Ali Mirza and Justice Nasirul Mulk, was hearing an appeal on Wednesday filed by Abdul Sattar Lasi against an order of the Balochistan High Court.

The BHC had ruled that provisions contained in the section 15 of the Financial Institutions (Recovery of Finance) Ordinance, 2001, which allowed financial institutions to foreclose against defaulters and mortgaged property without seeking intervention of court were neither unconstitutional nor arbitrary nor discriminatory.

Wasim Sajjad, counsel for the petitioner, argued that the section 15 was unjust and violative of the Articles 4, 2A & 25 of the Constitution. It was prayed before the court to pass interim order restraining auction of the property till SC’s verdict on the appeal.

Nafees Siddiqi, counsel for the Saudi Pak Commercial Bank, said that the section 15 gave right to both financial institution and borrower to go to court in case of default or not honouring the obligation.

He said the petitioner was a wilful defaulter and did not deposit even rent of properties as per the BHC order.

After hearing both sides, the division bench issued notice to the attorney general and directed the respondent bank’s counsel to submit detailed statement showing sale of properties.

Earlier, the Balochistan High Court’s division bench comprising Chief Justice Raja Fayyaz Ahmed and Justice Akhtar Zaman Malghani, had ruled that the provisions of the section 15 of the ordinance did not create a parallel judiciary and was not contrary to the Constitution.—PPI