Section 25A: Payment of loans, etc.

1[25A. Payment of loans, etc.― 2[(a) Where 3[an accused person] has been arrested or is in the custody of NAB or apprehends such arrest or custody for the investigation of the charge against him of committing an offence of wilful default on account of non-payment of dues to a bank or financial institution or Co-operative Society, he may at any stage before or after such arrest or before, during or after such custody or investigation apply to the Governor, State Bank of Pakistan for reconciliation of his liability through the Conciliation Committee and the Governor may, if he deems fit, refer the matter to the Conciliation Committee. (aa) The Governor, State Bank of Pakistan shall constitute one or more Conciliation Committees for the purposes of this Ordinance.] 4[(b) The Conciliation Committee shall consist of a nominee of the Governor, State Bank of Pakistan, being a senior officer of the State Bank well qualified in the profession of banking who shall be the Chairman of the Committee, two nominees of the NAB to be nominated by the Chairman NAB, two chartered accountants to be nominated by the Governor, State Bank of Pakistan, one Chartered Accountant to be nominated by the Council of the Institute of Chartered Accountants of Pakistan, Karachi, such nomination to be obtained by the Governor, State Bank of Pakistan, a Chartered Accountant to be nominated by the 5[accused] and a Chartered Accountant to be nominated by the lender bank or financial institution. Explanation. —Where the 6[lender] is a consortium or group of banks or financial institutions, the lender means the lead bank or financial institution. (bb) The Chairman of the conciliation Committee shall convene the meetings and conduct proceedings of the 7[Conciliation] Committee in the manner he deems fit.] 1[(c) The Conciliation Committee, after examination of the record of the lending bank or financial institution and the 2[accused] and after hearing the parties through their Chartered 3[Accountants], shall determine the amount outstanding against the 2[accused] calculated in accordance with law, rules, regulations and circulars of the State Bank of Pakistan and further determine the manner and the schedule of repayment having regard to the facts of each case. The 2[accused], if he so desires, shall be heard at commencement and before the conclusion of proceedings: Provided that the 2[accused] shall have the right to have access to, and instruct, the Chartered Accountant representing him before the Conciliation Committee even if the 2[accused] is in 4[*] custody, during the proceedings of the Conciliation Committee.] (d) The Conciliation Committee shall conclude the reference within thirty days and its recommendations shall be recorded by its Chairman and shall contain the views of all member of the 5[Conciliation] Committee. The recommendations of the Conciliation Committee shall be submitted to the 6[Governor, State Bank of Pakistan]. 7[(e) The Governor, State Bank of Pakistan shall consider the recommendations submitted to him under sub-section (d) and may accept the recommendations or may, for reasons to be recorded, pass such other appropriate order thereon as he deems fit. The acceptance of the recommendations of the 5[Conciliation] Committee or passing any other order as aforesaid shall constitute the decision of the Governor, State Bank of Pakistan.] 8[(f) Where the 2[accused] undertakes to repay the amount as determined by the Conciliation Committee, the Chairman NAB, with the approval of the Court, may release the accused.] 9[(g) The decision of the Governor State Bank of Pakistan shall be communicated to the Chairman NAB, which shall be binding on him, except for valid reasons to be recorded in writing subject to approval of the Court, to be accorded within a period of seven days.] 10[(h) In the event of failure either of the Conciliation Committee to conclude the reference within thirty days of the commencement of the conciliation proceedings or the failure of the 2[accused] to accept and implement the decision of the Governor, State Bank of Pakistan regarding the payment and matters relating thereto, such failure to accept or implement the decision shall be referred to the 11[*]Court subject to the provisions of Section 31 D and the Court may proceed with the case thereafter: Provided that the period of thirty days may be extended by the Governor, State Bank of Pakistan by such further period or periods as he may find necessary having regard to the facts and circumstances of the case and for reasons to be recorded.]

Effective date: 1999-01-01

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