LAHORE, Nov 23: The Lahore High Court directed the National Bank of Pakistan on Friday to hold an inquiry into sanction of a 231-million-rupee loan without ‘any tangible security’.

The direction came on an execution petition moved by the NBP against a readymade garments concern. The bank had a decree for Rs23,16,44,753 in its favour. However, no assets owned by the judgment-debtors M/s National Garments, were traceable and the bank requested that its execution plea may be consigned to record. The case may be reactivated as and when assets are found, it further asked.

Justice Mian Hamid Farooq observed in his order:

“... In view of the bank’s statement, the chances of recovery of the colossal public money of Rs23,16,44,753.91 are very bleak. It appears that initially the financial facility was granted without obtaining any tangible security. As there was no security, a simple money decree was passed.

“In the above scenario, the Regional Chief Executive of the National Bank of Pakistan is directed to hold an inquiry as to why such a colossal financial facility was sanctioned and allowed to be availed by the judgment-debtors without adequately securing the said amount through obtaining tangible security at the time of disbursement of the loan facilities. During the inquiry he would also fix responsibilities on the bank executives/officers/officials who were instrumental in the grant/sanctioning of such a huge amount and were at the helm of affairs at the relevant time.

“If any of the bank officer found guilty in the said inquiry had already been retired or separated from the bank under the golden hand shake scheme with full benefits, the inquiry officer shall give reasons as to why the bank authorities allowed such persons to be retired or separated from the bank under the golden hand shake scheme. The inquiry shall be completed within six weeks and the report submitted to the court on Dec 22, 2001.”