Special procedure for the banking suits (in The Financial Institutions (Recovery of Finances) Ordinance, 2001)

11. In furtherance to the above, we have no hesitation in holding that prima facie Financial Institutions (Recovery of Finances) Ordinance, 2001 is not only a special law but the same being also later in time would prevail over the provisions of the NAO, 1999, and as discussed above, the Ordinance, 2001 has its own comprehensive mechanism to deal with the disputes inter-se the bank and the customer. The august Supreme Court of Pakistan in the case “APOLLO TEXTILE MILLS LTD. and others versus SONERI BANK LTD.” (PLD 2012 SC 268) has held that:- 

“18. The Financial Institutions (Recovery of Finances) Ordinance, 2001 i.e. is a special law. It provides a special procedure for the banking suits. The provisions of the Ordinance, 2001 under section 4 thereof override all other laws. The provisions contained in the said Sections require strict compliance.” 

Furthermore, in the case “MAHMOOD KHAN ACHAKZAI and others versus FEDERATION OF PAKISTAN and others” (PLD 1997 SC 426), it has been held that whenever there is a special law, it will override the general law and further even if there are two parallel laws, even then law which is latter in time would prevail. 

Part of Judgment

THE LAHORE HIGH COURT, LAHORE JUDICIAL DEPARTMENT 

Writ Petition-Criminal Proceedings-N.A.B
5948-16

2016 LHC 4403