Short title, extent and Commencement.




Ordinance not to derogate from other laws.


Establishment of Banking Tribunals.


Powers of Banking Tribunals.


Procedure of Banking Tribunals.


Provisions relating to certain offences.


Application of fines.




Finality of orders.


Execution of decree.


Limitation Act. 1908 (Act IX of 1908), not to apply.


Powers to amend Schedule.


Powers to make rules.




Removal of difficulties.



3lst  December, 1984

An Ordinance to provide a machinery for recovery of finance provided by banking companies under a system of financing which is not based on interest.

whereas it is expedient to provide a machinery for recovery of finance provided by banking companies under a system of financing which is not based on interest.

And whereas the President is satisfied that circumstances exist which render it necessary to take immediate action ;

Now, therefore, in pursuance of the Proclamation of the fifth day of July, 1977, and in exercise of all powers enabling him in that behalf, the President is pleased to make and pro­mulgate the following Ordinance :—

1.— Short title, extent and commencement.

(1) This Ordinance may be called the Banking Tribunals Ordinance, 1984.

(2) It extends to the whole of Pakistan.

(3) It shall come into force at once.

2. In this Ordinance, unless there is anything repugnant in the subject or context :

(a) “ banking company “ means—

(i) a bank as defined in Banks (Nationalization) Act, 1974.

(ii) a company incorporated outside Pakistan and transacting the business of banking in Pakistan; and

(iii) a company specified in the Schedule ;

(b)  Banking Tribunal means a tribunal established under section 4 ;

(c)  customer means a person who has obtained finance from a banking company or is the real beneficiary of such finance, and includes a surety and an indemnifier ;

(d)  commencing day  means the day on which this Ordinance comes into force ;

(e)  finance includes an accommodation or facility under a system which is not based on interest but provided on the basis of participation in profit and loss, mark-up or mark-down in price, hire purchase, lease, rent-sharing, licensing, charge or fee of any kind, purchase and sale of any property, including commodities, patents, designs, trade marks  and copyrights, bills of exchange, promissory notes or other instruments with or without buy-back arrange­ment by a seller, participation term certificate, musharika certificate, modaraba certificate, term finance certi­ficate or any other mode other than ;in accommoda­tion or facility based on interest and also includes guarantees, indemnities and any oilier obligation, whether fund based or non-fund based, and any accommodation or facility the real beneficiary whereof is a person other than the person to whom or in whose name it was provided ; and

(f)  rules means rules made under this Ordinance.

3.  Ordinance not to derogate from other laws. The provisions of this Ordinance shall be in addition to and, save as otherwise provided in this Ordinance, not in derogation of, any other law for the time being in force.

4.  Establishment of Banking Tribunals.

(1) The  Federal Government  may, by notification in the official Gazette, establish as many Banking Tribunals as it considers necessary, and, where it establishes more than one Banking Tribunal, shall specify in the notification the territorial limits within which each of them shall exercise jurisdiction under this Ordinance.

(2) A Banking Tribunal shall consist of a person who is or has been, or is qualified for appointment as a Judge of High Court or a District Judge or an Additional District Judge who shall be the Chairman, and two members, to be appointed by the Federal Government.

(3) To constitute a sitting of a Banking Tribunal, the presence

of the Chairman and not less than one member shall be necessary.

(4) A decision of a Banking Tribunal shall be expressed in terms of the opinion of the majority of its members, including the Chairman, or, if the case has been decided by the Chairman and only one of the members and there is a difference of opinion between them, in terms of the opinion of the Chairman.

(5) A Banking Tribunal shall not, merely by reason of a change in its composition, or the absence of any member from any sitting, be bound to recall and rehear any witness who has given evidence, and may action the evidence already recorded by or produced before it.

(6) A Banking Tribunal may hold its sittings at such places within its territorial jurisdiction as the Chairman may decide from time to time.

(7) No act or proceeding of a Banking Tribunal shall be invalid by reason only of the existence of a vacancy in, or defect in the constitution of the Banking Tribunal.

5. Power of Banking Tribunals.  

(1) A Banking Tribunal shall—

(a) in the exercise of its civil jurisdiction, have in respect of a claim filed by a banking company against a customer in respect of, or arising out of, finance, provided by it, all the powers vested in a civil court under the Code of Civil Procedure, 1908.

(b) in the exercise of its criminal jurisdiction, try the offences punishable under this Ordinance and shall, for this purpose, have the same powers as are vested in the Court of Session under the Code of Criminal Procedure 1898:

Provided that a Banking Tribunal shall not take cognizance of any offence punishable under this Ordinance except upon complaint in writing made by a person authorised in this behalf by the banking company in respect of which the offence was committed; and

(c) exercise and perform such other powers and functions as are, or may be, conferred upon, or assigned to it, by or under this Ordinance.

(d) A Banking Tribunal shall, in all matters with respect to which procedure has not been provided for in this Ordinance, follow the procedure laid down in the Code of Civil Procedure, 1908, and the Code of Criminal, Procedure 1898.

(2) All proceedings before a Banking Tribunal shall be deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Pakistan Penal Code, and the Banking Tribunal shall be deemed to be a court for the purposes of sections 480 and 482 of the Code of Criminal Procedure, 1898 .

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