Updated: Friday June 10, 2016/AlJumaa
Ramadan 05, 1437/Sukravara
Jyaistha 20, 1938, at 06:18:10 PM
The Regional Development Finance
Corporation Ordinance, 1985
ORDINANCE No. XXXII OF 1985
[5th, 1985]
An Ordinance to provide for the
establishment of the Regional Development Finance Corporation
WHEREAS it is expedient to
provide for the establishment of the Regional Development Finance Corporation,
and for matters connected therewith or ancillary thereto;
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 Regional Development Finance Corporation
Ordinance, 1985.
(2) It extends to the whole
of
(3) It shall come into
force at once.
2. Definitions. In this Ordinance, unless there is
anything repugnant in the subject or context,‑--
(a) ”Board” means the Board of Directors instituted;
(b) ”Borrower” means an enterprise to which a
loan is given by or on the guarantee of, the Corporation;
(c) ”Chairman” means the Chairman of the Corporation;
(d) ”Corporation” means the Regional Development Finance
Corporation established under section 3;
(e) ”Director” means a Director of the Corporation;
(f) ”District Judge” shall include an Additional District Judge
and, in respect of areas there a District Judge does not have unlimited
pecuniary jurisdiction in original civil suits, a High Court or a bench of a
High Court exercising original civil jurisdiction;
(g) ”Industrial Development Bank of Pakistan” means the
Industrial Development Bank of Pakistan established under section 3 of the
Industrial Development Bank of Pakistan Ordinance, 1961 (XXXI of 1961);
(h) ”less‑developed areas” means
the North‑West Frontier Province, the Northern Areas, Baluchistan, Azad
Jammu and Kashmir, the Federally Administered Tribal Areas, and such other
areas as may be declared by the Federal Government, by notification in the
official Gazette, to he less developed areas;
(i) ”Managing Director” means the Managing
Director of the Corporation;
(j) ”National Development Finance Corporation” means the
National Development Finance Corporation established under section 3 of the
National Development Finance Corporation Act, 1973 (XIII of 1973);
(k) ”Nationalized bank” means a bank as defined in the Banks
(Nationalization) Act, 1974 (XIX of 1974);
(l) ”prescribed” means prescribed by rules;
(m) ”regulation” means regulation made under this Ordinance;
(n) ”rule” means rule made under this Ordinance;
(o) ”short‑term”, “medium‑term” and “long‑term”
used in relation to an advance, loan or credit made or granted by the
Corporation, means an advance, loan or credit for such term as may, in each
case, be prescribed by regulations; and
(p) ”under‑writing” means contracting with or without conditions
to subscrible for stocks, shares, bonds, debentures or participation term
certificates of an enterprise with a view to re‑selling all or any of
such stocks, shares, bonds, debentures or participation term certificates.
3. Establishment of the
Corporation.‑(1) On
the coming into force of this Ordinance, there shall be established, in
accordance with the provisions of this Ordinance, a Corporation to be called
the Regional Development Finance Corporation.
(2) The Corporation shall
be a body corporate having perpetual succession and a common seal, with powers,
subject to the provisions of this Ordinance, to acquire, own and dispose of
property and shall by the said name sue and be sued.
4. Share capital of the
Corporation.‑(1)
The authorized share capital of the Corporation shall, in the first instance,
be one hundred million rupees divided into one million ordinary shares of
rupees one hundred each, of which not less than fifty per cent shall be
contributed by the National Development Finance Corporation and the balance
shall be open for subscription by the nationalized banks, the Industrial
Development Bank of Pakistan and other financial institutions.
(2) The paid up capital of
Corporation shall, in the first instance, be fifty million rupees, of which not
less than fifty per cent shall be contributed by the National Development
Finance Corporation and the balance shall be contributed by the nationalized
banks and the Industrial Development Bank of
(3) The
Federal Government may, by notification in the official Gazette, increase the
authorized share capital and paid up capital of the Corporation to such extent
and in such manner as may be specified in the Notification.
5. Offices and Branches.‑(1) Unless the Federal Government,
by notification in the official Gazette, otherwise directs, the head office of
the Corporation shall be at
(2) The Corporation may
establish regional and other offices at such places as the Board may think fit.
6. Direction and
superintendence. (1)
The overall direction and superintendence of the affairs of the Corporation
shall vest in the Board, which may exercise all such powers and do all such
acts and things as may be exercised and done by the Corporation.
(2) In the performance of
its functions, the Board shall act on business considerations and shall be
guided on questions of policy by such directions as may from time to time be
given to it by the Federal Government, which shall be the sole judge, as to
whether a question is a question of policy.
(3) If the Board fails to
carry out the instructions given to it under sub-section (2), the Federal
Government may supersede the Board and appoint any person or body to function
in place of the Board until a new Board is constituted in accordance with the
provisions of this Ordinance and no such super session or appointment shall be
questioned in any Court.
7. Board.-(1) The Board shall consist of the
following Directors, namely:‑--
(a) the Chairman;
(b) six persons to be appointed by the Federal Government as
follows:-
(i) one person serving under the Federal Government in the
Finance Division;
(ii) one person serving under each of Provincial
Governments;
(iii) one person from the other less‑developed areas;
(c) a representative of the nationalized banks;
(d) a representative of the Industrial Development Bank of
(e) the Managing Director.
(2) No act or proceeding of
the Board shall be invalid by reason only of the existence of any vacancy in,
or defect in the constitution of, the Board.
8. Chairman.‑(1) The Chairman of the National
Development Finance Corporation shall be the Chairman of the Corporation, ex-officio.
(2) A casual vacancy in the
office of the Chairman shall be filled in by the Federal Government by the
appointment of such person as it may deem fit; and the person so appointed
shall hold office until the Chairman enters upon his office.
9.
Managing Director.‑(1)
The Managing Director shall be appointed by the Federal Government on such
salary and terms and conditions as the Federal Government may determine.
(2) The Managing Director
shall unless the Federal Government otherwise directs, hold office for a term
of three years which the Federal Government may, from time to time, extend.
(3) The Managing Director
shall be the chief executive of the Corporation and shall perform such
functions as are required by this Ordinance and the rules and regulations made
thereunder to be performed by him or as may, from time to time, be assigned to
him by the Board.
10. Qualifications and
disqualifications of Directors. No person shall be, or shall continue to be a Director who,---
(a) is or at any time has been adjudicated an
insolvent
(b) is found to be a lunatic or becomes of
unsound mind;
(c) is or has at any time been convicted for any offence which,
in the opinion of the Federal Government, is an offence involving moral
turpitude;
(d) without leave of absence from the Board, absents himself
from all the meetings of the Board for a continuous period of six months or, if
less than three meetings are held within such period, from three consecutive
meetings of the Board;
(e) is a salaried official of the Corporation, other than the
Managing Director; or
(f) has any financial or other interest in any
business to be financed by the Corporation.
11. Executive Committee.‑(1) The Board may constitute an
Executive Committee consisting of the Managing Director and two other Directors
to assist it in the performance of its functions under this Ordinance.
(2) The members of the
Executive Committee other than the Managing Director shall hold office for such
period as may be determined by the Board.
(3) Decisions of the
Executive Committee, other than those which relate to matters specified by the
Board in this behalf, shall be laid before the Board for approval.
(4) Subject to the general
or special directions of the Board, the Executive Committee may deal with any
matter within the competence of the Board.
12. Meetings of the
Board and Committee.‑(1)
Four directors shall form the quorum for a meeting of the Board.
(2) Subject to sub-section
(1), the meetings of the Board and the Executive Committee shall be held in such
manner as may be prescribed:---
Provided
that, until rules are made in this behalf, such meetings shall be called by the
Chairman or, in the absence of the Chairman by the Managing Director, and shall
be presided at by the Chairman or, as the case may, the Managing Director.
(3) The minutes of every
meeting of the Board and the Executive Committee shall be maintained in such
manner as the Board may determine.
13. Annual General
Meetings of the Shareholders.‑(1) The annual general meeting of the shareholders shall be
held within a period of three months of the closing of annual accounts every
year, at such time and place as may be fixed by the Board:---
Provided that the first
annual general meeting of the shareholders shall be held at
(2) The Board shall submit
at the annual general meeting for consideration of shareholders a balance‑sheet
and a profit and loss account of the Corporation for the financial year.
14. Fee for attending
meetings. The
Directors shall be paid such fees for attending the meetings of the Board and
the Executive Committee as may be prescribed.
15. Secrecy and
fidelity. No
Director shall assume his office until he has made such declaration of secrecy
and fidelity as may be prescribed.
16. Indemnity of
Directors. A
Director shall not be personally responsible for the acts of any other
Director or of any officer or servant of the Corporation or for any loss or
expenditure resulting to the Corporation by reason of the insufficiency or
deficiency in value of or title to any property or security acquired or taken
on behalf of the Corporation, or for anything done by him in good faith in the
discharge of his duties.
17. Business which the
Corporation can transact.‑Subject
to the rules and regulations, if any, the Corporation may carry on, transact or
do the several kinds of business and acts hereinafter specified, namely:---
(a) promotional work in less‑developed
areas such as identification and preparation of projects for investment;
(b) to finance commercially viable projects in less‑developed
areas paying special attention to Mining sector or to such other sector as may
be directed by the Federal Government, through purchase of shares, medium and
long‑term loans, bridge, finance and short‑term loans such as
working capital as well as providing guarantee for loans and advances,
underwriting of stocks bonds debentures and participation term certificates and
other such instruments as may be decided by the Board;
Explanation.‑ In this clause, “commercially viable
projects” does not include hydel generation projects and plantation style
agricultural activities, such as, vegetable farming, fruit orchards and dairy
farms, but includes production of handicrafts through sub‑contracting,
workshops in rural areas to meet local engineering needs and the agro‑based
industries.
(c) financing the construction of
internal roads in mineral bearing areas (only if these are a part of the
project);
(d) financing the establishment of machinery pool for mine
owners, to be set up independently or in association with banks and other
organizations;
(e) to formulate and implement schemes to channelize home
remittances towards commercially viable projects in less‑developed areas
on behalf of Pakistanis abroad;
(f) to accept and furnish any lien, charge, hypothecation, or
mortgage on any tangible or intangible movable or immovable property or assets
in transacting its business;
(g) to purchase or otherwise acquire, own, sell, transfer and
exchange any tangible and intangible, movable or immovable property or assets
in transacting its business;
(h) to acquire, retain, or dispose of assets
of any type which may in any way come into the possession of the Corporation in
satisfaction or part satisfaction of its claims;
(i) to acquire; maintain and transfer its residential and
business premises;
(j) to borrow money for the purpose of its
business and to give security for money so borrowed by pledging assets or
otherwise.
(k) to enter into agreements and contracts and execute such
documents as may be considered necessary for transacting its functions;
(l) to accept deposits of fixed maturities;
(m) to deposit its funds with a banking company in current and
short term or any other type of deposit;
(n) to invest its surplus funds in securities in the manner
prescribed;
(o) to open letters of credit and establish correspondent
relationships abroad for import of machinery or equipment against foreign
currency credits or loans and cash foreign exchange allocation which may be
made available by the Federal Government;
(p) to receive and pay commission, fees and brokerage in connection
with its business; and
(q) generally to do all such matters and
things as may be incidental or subsidiary to the undertaking of any of the
aforesaid business and any other functions, not inconsistent with the purposes
of this Ordinance determined by the Board.
18.
Power to impose conditions.‑(1)
For the purpose of transacting any business under this Ordinance with any
borrower, the Corporation may impose such conditions as it may consider
necessary or expedient for protecting its interest and securing that its
guarantee, underwriting, loan, subscription or other aid is put to such use by
the borrower as the Corporation has agreed to.
(2) Any condition imposed
on the borrower under sub-section (1) shall valid and shall, notwithstanding
anything contained in any other law for the time being in force, be enforceable
against such borrower.
19. Borrowing power.‑(1) The Corporation may borrow from
the Federal Government, and with the prior approval of the Federal Government,
also from the State Bank of
(2) The Corporation may
issue and sell bonds, debentures and prescribed instruments, both in rupees
and foreign currencies.
(3) The Federal Government
may, at the request of the Corporation, guarantee as to the repayment of
principal and payment of interest or return any sums borrowed by the
Corporation under sub-section (1) or any bonds, debentures or other instruments
issued by the Corporation with the prior approval of the Federal Government.
(4) Notwithstanding
anything contained in the Trust Act, 1882 (II of 1882), the Insurance Act, 1938
(IV of 1938) or the Banking Companies, Ordinance, 1962 (LVII of 1962), the
shares and such of the bonds, debentures and any other instruments of the
Corporation as have been guaranteed by the Federal Government under sub-section
(3) shall be deemed to included among the securities enumerated in section 20
of the Trust Act, 1882 (II of 1882), and to be approved securities for the
purpose of the Insurance Act, 1938 (IV of 1938), and the Banking Companies
Ordinance, 1962 (LVII of 1962).
(5) The aggregate of the
sums borrowed under sub-section (1) and the sums due on the bonds, debentures
and other instruments issued under sub-section (2) and the contingent
liabilities of the Corporation in respect of guarantee or underwriting
agreements shall not at any time exceed twenty times the aggregate of the
amount of the paid, up share capital and reserves of the Corporation.
20. Powers to call for
payment before agreed period. Notwithstanding any agreement to the contrary, the Corporation
may, by notice, require any borrower to which it has granted any loan, or any
other person liable for payment of such loan, forthwith to repay the loan in
full if:‑--
(a) it appears to the Board that information false or misleading
in any material particular has been given in the application for the loan; or
(b) there is a reasonable apprehension to the opinion of the
Board that the borrower is unable to pay or discharge. its debts or liabilities
or may go into liquidation; or
(c) the property pledged, mortgaged,
hypothecated or assigned to the Corporation as security for the loan is not
insured or kept insured by the borrower to the satisfaction of the Corporation
or has, in the opinion of the Board, depreciated in value and further security
to the satisfaction of the Board is not given; or
(d) without the permission of the Board, machinery or other
equipment is removed from the premises of the borrower without being replaced;
or
(e) the loan or any part thereof is not being
utilized for the purposes for which it was made or is found to have been
utilized for other purposes; or
(f) the property pledged, mortgaged,
hypothecated or assigned to the Corporation as security for the loan, or any
other security for the loan has, without the permission of the Corporation,
been disposed of or charged, or otherwise alienated in any manner, by the
borrower; or
(g) in the opinion of the Board, the management or business of
the borrower is not being conducted in a satisfactory manner or its share
capital is being impaired; or.
(h) for any other reason, it is necessary, in the opinion of the
Board, to protect the interests of the Corporation.
21. Special provisions
for enforcement of claims by the Corporation.‑(1) Where the Corporation becomes entitled to
require the immediate payment of any loan by reason of the breach of any
condition of any agreement between the Corporation and a borrower to which the
loan has been granted or any person liable for repayment of that loan, or where
the borrower fails to repay the loan in terms thereof or in compliance with the
notice under section 22, an officer of the Corporation generally or specially
authorised by the Board in this behalf may apply to the District Judge within
the local limits of whose jurisdiction the borrower carries on the whole or a
part of his business, or the officer or branch of the Corporation from which
the loan was disbursed is situated, for one or more of the following reliefs,
namely:‑--
(a) an order for the sale of the property pledged, mortgaged
hypothecated or assigned to the Corporation as security for the loan and any
other properties, disclosed or undisclosed, of the borrower or the properties,
disclosed or undisclosed, of person liable for the repayment of the loan,
including guarantors;
(b) an order for the transfer of the management of the borrower
to the Corporation or its nominee, provided that, when such management is so
transferred to the Corporation, the Corporation shall be deemed to be the agent
of the borrower on its behalf and all actions taken by the Corporation on such
transfer shall be deemed to be those of the borrower; or
(c) an injection ad interim where there is
apprehension that machinery or equipment may be removed from the premises or
the building or land may be sold or otherwise transferred by the borrower without
the permission of the Corporation.
(2) An
application under sub-section (1) shall state particulars of the loan and the
same claimed in respect of the same, particulars of the borrower and any other
person or persons liable for the repayment of the loan and such other
particulars as may be prescribed.
(3) Where the application
is for the relief mentioned in clause (a) of sub-section (1), the District
Judge shall,---
(a) pass an order ad interim attaching such properties referred
to in clause (a) aforesaid as are likely in the estimation of the Court to
fetch, on being sold, an amount equivalent to the sums claimed by the Corporation
together with the posts of the proceedings taken under this section; and
(b) pass an order appointing one or more Receivers, approved by
the Corporation, of the properties referred to in clause (a) aforesaid wherein
the application filled by the Corporation such remedy is specifically sought.
(4) The Corporation shall
have the option to seek an order under clause (b) of subsection (3) in the
first instance or at any subsequent time prior to grant of the relief mentioned
in clause (a) of sub-section (1).
(5) Where the application
is for the relief mentioned in clause (b) or clause (c) of sub-section (1), the
District Judge shall grant an injunction ad interim restraining the borrower or
the person liable for repayment of the loan from transferring any of the
properties, including machinery, equipment and stocks, building and lands
without the permission of the Corporation and shall issue a notice calling upon
the borrower and the persons liable for repayment of the loan to show cause on
a date to be specified in the notice why the management of the borrower should
not be transferred to the Corporation or the injunction be not confirmed.
(6) Before passing any
order under sub-section (3) or sub-section (5), the District Judge may, if he
thinks fit, examine the person making the application.
(7) At the time of passing
an order sub-section (3), the District Judge shall issue to the borrower a
notice accompanied by a copy of the order, the application and evidence, if
any, recorder by him and calling upon him to show cause on a date to be
specified in the notice why order of attachment ad interim should
not be made absolute or the injunction be not confirmed.
(8) If no
sufficient cause is shown on or before the date specified in the notice under
sub-section (5) or sub-section (7), the District Judge shall forthwith make
the order ad interim absolute and direct the sale of the
attached property or transfer the management of the borrower to the Corporation
or confirm the injunction.
(9) If sufficient cause is
shown the District Judge shall proceed to investigate, on an urgent basis, the
claims of the Corporation and provisions of the Code of Civil Procedure, 1908
(Act V of 1908), shall as far as practicable apply to such proceedings.
(10) On completing an
investigation under sub-section (9) the District Judge shall pass an order,---
(a) confirming the order of attachment or
directing the sale of the attached property, or
(b) varying the order of attachment so as to release a portion
of the property from attachment and directing the sale of the remainder of the
attached property, or
(c) releasing the property from attachment, if he is satisfied
that it is not necessary in the interest of the Corporation to retain it under
attachment, or
(d) confirming or vacating the injunction, or
(e) transferring or refusing to transfer the management of the
borrower to the Corporation:---
Provided that, when making
any order under clause (c), the District Judge may make such further order as
he thinks necessary to protect the interests of the Corporation and may
apportion the cost of the proceedings in such manner as he thinks fit:
Provided further that,
unless the Corporation intimates to the District Judge that it will not apply
against any order releasing any property from attachment, such order shall not
be executed until the expiry of the period mentioned in sub-section (12) or if
an appeal is preferred, unless the High Court otherwise directs, until the
appeal is disposed of.
(11) An order under this
section for the attachment or sale of property shall be carried into effect as
far as may be in the manner provided in the Code of Civil Procedure, 1908 (Act
V of 1908), for the attachment or sale of property in execution of a decree as
if the Corporation were the decree‑holder.
(12) Any
party aggrieved by an order under subsection (8) or subsection (10) may,
within thirty days from the date of the order, appeal to the High Court, or
where the order is of a Judge of a High Court exercising original civil
jurisdiction, to the Courts to which an appeal from a judgment of such Judge
lies, and upon such appeal the appellate Court may, after hearing the parties,
pass such orders as it thinks proper.
(13) Nothing in this
section shall be construed, where proceedings for liquidation in respect of the
industrial concern have commenced before an application is made under
subsection (1), as giving the Corporation any preference over other creditors
of the borrower not conferred on it by any other law for the time being in
force.
22. Special provisions relating
to limitation.__(1)
Notwithstanding anything contained in the Limitation Act, 1908, (IX of 1908),
or any other law for the time being in force, for the purposes of computing the
periods of limitation for the enforcement of any claims or for the recovery of
any money due to the Corporation in pursuance of loans granted, whether by way
of suits or applications for recovery of money or by way of mortgage suits or
by way of enforcement of any rights in pursuance of the provisions of this
Ordinance by the Corporation against borrower or persons liable for repayment
of the loans, the periods of limitation and methods of computation thereof
prescribed in the Schedule shall apply.
(2) Section 5 of the
Limitation Act, 1908 (IX of 1908), shall apply to an appeal or application
under this Ordinance.
23. Rights of
Corporation in cases of default.__(1) Where any borrower which is under a
liability to the Corporation under an agreement makes any default in payment of
otherwise fails to comply with the terms of its agreement with the Corporation,
the Corporation may, notwithstanding anything contained in section 21 take over
the management of the borrower, and may sell or realize any property pledged,
mortgaged hypothecated or assigned by the borrower to secure its liability to
the Corporation.
(2) Any transfer of
property made by the Corporation in exercise of its powers of sale or
realization under subsection (1) shall vest in the transferee all rights in or
to the property transferred as if the sale had been made by the owner of the
property.
(3) The Corporation shall
have the same rights and powers with respect to goods manufactured or produced
wholly, or partly from goods forming part of any security held by it as it has
with respect to the original goods.
(4) Where the Corporation
takes over the management of the borrower under subsection (1), it shall be
deemed to be the agent of such borrower for the purposes of suits by or against
the borrower.
24.
Recovery of Corporation's dues.__Without
prejudice to the provisions of sections 21 rind 23, all sums due to the
Corporation shall be recoverable as arrears of land revenue:---
Provided that no sum shall
be so recovered unless fifteen days' notice has first been given by the
Corporation to the debtor that the sum will be so recovered.
Explanation 1.__In
this section, “debtor” includes the borrower and any other person liable for
the repayment of any loan or other sum due to the Corporation.
Explanation 2.__ For
the purposes of this section, the Corporation shall issue a certificate stating
the sum due to the Corporation from the debtor, whether under any agreement or
other document or otherwise howsoever, as at any given date and such
certificate shall be conclusive evidence of the sum due to the Corporation and
be treated as final and binding accordingly.
25. Delegation of powers. The Board may for the purpose of
ensuring efficient functioning of the Corporation and facilitating transaction
of its daily business, by a resolution, delegate to the Chairman or the
Managing Director or any other officer of the Corporation, subject to such
conditions and limitations, if any, as may be specified therein, such of its
powers and duties under this Ordinance as it may deem necessary.
26. Officers and
servants. The Corporation
may appoint or employ such officers and servants as it considers necessary for
the efficient performance of its functions, on such terms and conditions as
may be laid down by regulations.
27. Offences. Any person who,---
(a) in an application for the grant of a loan gives false or
misleading information relating to a matter which is material for the purpose
of deciding the application or wilfully makes a false statement or knowingly
permits any false statement to be made, or to remain, in any bill of lading,
warehouse receipt or other document of title or any other document given to the
Corporation by way of security in respect of any financial and sought or
granted under this Ordinance; or
(b) diverts or applied the amount of the‑ loan granted to
him to a purpose other than the purpose for which it was granted; or
(c) intentionally destroys, or reduce, the value of the property
on the security of which a loan was granted to him or, without the prior
approval of the Corporation in writing or otherwise than in accordance with the
terms of such approval; transfer such property or any part thereof shall,
without prejudice to any other action which may be taken against him under this
Ordinance, be punishable with imprisonment for a term which may extend to three
years.
28. The Corporation and
its officers to be public officers.__(1)
For the purposes of Article 7 of the Qanun‑e‑Shahadat, 1984, and
the provisions of Part IV of the Code of Civil Procedure, 1908 (Act V of 1908),
the provisions of rule 27 of Order V and rule 52 of Order XXI of the said
Code, the Corporation and any officer of the Corporation in his capacity as
such shall be deemed to be a public officer.
(2) The provisions of
Article 6 of the Qanun‑e‑Shahadat, 1984, shall apply to the
unpublished record of the Corporation and the Managing Director shall be deemed
to be the officer or head of the Department concerned.
(3) Every person in the
service of the Corporation shall be deemed to be a public servant within the
meaning of section 21 of the Pakistan Penal Code (Act (XIV of 1960).
29. Disposal of profits.__ (1)
The Corporation shall establish a Reserve Fund to which shall be credited such
amount out of its annual net profit, not being less than fifty per cent of its
annual net profit, as may be determined by the Board.
(2) The minimum appropriation
of profits to the Reserve Fund fixed under subsection (1) shall apply till such
time as the amount in the Reserve Fund equals the paid‑up capital of the
Corporation.
30. Accounts and audit.__(1)
The financial year of the Corporation shall be determined by the Board.
(2) Subject to subsection
(1), the Corporation shall maintain its accounts in such manner as may be
prescribed.
(3) The Corporation shall
submit to the Federal Government a copy of its audited annual accounts and the
report to the Board on the operations of the Corporation for the preceding
financial year, including the report on the performance of the borrowers to
whom it has subscribed capital or advanced loans or on whose behalf it has
undertaken any guarantee.
(4) The accounts of the
Corporation shall be audited by two auditors who are chartered accountants
within the meaning of the Chartered Accountant Ordinance, 1961 (X of 1961),
appointed by the Corporation with the prior approval of the Federal Government.
1* * * * * * *
32. Corporation not to
be a Banking Company. The
Corporation shall not be deemed to be a banking company for the purposes of the
Banking Companies Ordinance, 1962 (LVII of 1962), or any other law for the time
being in force relating to banking companies.
33. Returns.__(1)
The Corporation shall furnish in the prescribed form to the Federal Government
at least once a year, or as frequently as the Federal Government may require, a
classification of its loans and investments, and all loans guaranteed by it
and underwriting agreements entered into by it.
(2) The Corporation shall
furnish to the Federal Government within three months of the close of the
financial year an audited statement in the prescribed form of its assets and
liabilities as they stand at the close of that year together with a profit and
loss account for the year and a report on the working of the Corporation during
the year, and shall also cause the said statement, account and report to be
published in the official Gazette.
34. Liquidation of the
Corporation. The
Corporation shall not be wound up save by order of the Federal Government, in
such manner as it may direct.
35. Power to make rules. The Federal Government may, by notification
in the official Gazette, make rules for carrying out the purposes of this
Ordinance.
36. Power to make
regulations.__(1)
The Board may make regulations to provide for all matters not required to be
provided for by rules and provision for which is necessary or expedient for
carrying out the purposes of this Ordinance.
(2) Where any provision of
the regulations is inconsistent with any provision of the rules, the provision
of the rules shall prevail.
37. Removal of
difficulties. If any
difficulty arises in giving effect to any of the provisions of this Ordinance,
the Federal Government may make such order, not inconsistent with the
provisions of this Ordinance, as may appear to it to be necessary for the
purpose of removing the difficulty.
1Omitted by Act 4 of 1999, s. 25
SCHEDULE
[See section 22 (1)]
[Limitation periods and computation thereof as per section 22(1)]
|
S.No. |
Description
of action/cause |
Period
of Limitation. |
Time
from which period being to run. |
|
1 |
2 |
3 |
4 |
|
1. |
For
money payable for money lent. |
6
years |
When
the loan is made. |
|
2. |
Under
Order XXXVII of the Code of Civil Procedure, 1908. |
6
years |
When
the debt becomes payable. |
|
3. |
On.
a promissory note or bond payable by instalments which provides that, if
default be made in payment of or on more instalments, the whole shall be
due. |
6
years |
When
the default is made unless where the payee or oblige waives the benefit of
the provision, and thereafter when fresh default is made in respect of which
there is no such waiver. |
|
4. |
On
a bill of exchange payable at sight, or after sight, but not at a fixed time. |
6
years |
When
the bill is presented. |
|
5. |
On
a bill of exchange or promissory note payable at a fixed time after sight or
after demand. |
6
years |
When
the fixed time expires. |
|
6. |
Suit
on a bill of exchange, promissory note or bond not herein expressly provided
for. |
6
years |
When
the bill, note or bond becomes payable. |
|
7. |
For
compensation for breach of a promise to do anything at a specified time, or
upon the happening of a specified contingency. |
6
years |
When
the time specified arrives or the contingency happens. |
|
8. |
Upon
any contract to indemnify. |
6
years |
When
the Corporation is actually to be indemnified |
|
9. |
For
compensation for the breach of a contract in writing registered. |
9
years |
When
the period of limitation for a suit brought on a similar contract not
registered would 'begin to run. |
|
10. |
To
enforce payment of money charged upon immovable property. |
15
years |
When
the money becomes dues. |
|
Explanation.—For the purposes hereof advances secured by
mortgage by deposit of title deeds shall be deemed to be money charged upon
immovable property. |
|||
|
11. |
Action
of cause for which no period of limitation is herein provided. |
9
years |
When
the right to sue or of recovery accrues. |
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