 Summary of direct auction process  Pre-Screening of charge and property documents  Facility Recall Letter  Service of direct auction notices  Fresh valuation  Publication of auction notices  Proceeding on date of auction  Registration of sale deed  Submission of the auction in the banking court  Application for possession  Hindrances in direct auction proceedings

◦ all Charge documents should be filled properly ◦ Agreement of Finance, MODT and TRM (if any) should be available. In cases of Purchase of property, the date of MODT should be corresponding to the date of registration of the sale deed in favour of the Customer. ◦ It should be ensure that the Sale/Lease deed of the customer has been retrieved from registrar office. ◦ It is pertinent to check that the approved finance has been disbursed fully, specially in the cases of (Construction Financing) ◦ Proper Statement of Account should be available with breakup. ◦ It should be confirmed from the charge documents that who is the Mortgagor and who is Principal Borrower?

 Stay Order  Publication Cost  FSV Compliance  Possession of the property  Decision of Lahore High Court  Article 10-A of the Constitution  Impact of Section 10 of Banking Companies ordinance  Impact of Order 21 Rule 72 (2) CPC.

Dear Sir/ Madam Under instructions and on behalf of our client M/S KASB Bank Limited Consumer Banking Group having its principal office at Business and Finance Centre, I.I. Chundrigar Road Karachi, we are addressing you as under:- That on your request our client had sanctioned / given you a finance of Rs:_____________/- under account No. ______________________ against lawful documentation and mortgaged of below detailed property. Description of Mortgaged Property __________________________________________________________________________ That said Finance facility was extended under certain terms and conditions but you have failed to discharge your liabilities by not paying the amount/monthly installments and /or Mark-up installments on due dates despite repeated demands. This intentional default on your part resulted in termination of Financing Agreement and Recall of Facility i.e. whole outstanding principal amount with markup and other charges as per Agreement of Finance, making a total amount of Rs. ___________/-, as of _________which are payable by you forthwith.

Since the provision of section 15 of the Financial Institutions (Recovery of Finances) Ordinance 2001 vests powers to the Bank to sell mortgaged property through open auction so as to satisfy the dues against defaulter without resorting to Honorable Banking Court after services of prescribed notices under this Section. Accordingly, you are called upon through this first notice U/s 15 of the Financial Institution (Recovery of Finances) Ordinance 2001 to pay the outstanding amount of Rs. ____________/- within 14 days from the date of receipt of this 1 st Notice otherwise right of satisfying dues/outstanding by open auction will be resorted by our client. It is also pertinent to point out that the remedies provided under the provision of Section 15, of the Financial Institutions (Recovery of Finances) Ordinance 2001, are in addition to other remedies and rights available to our client. Please note that, as per provisions of Section 15 Financial Institutions (Recovery of Finances) Ordinance 2001, after serving of this First Notice of 14 days, if you failed to pay the above said outstanding amount, two more notices of 14 and 30 days, respectively, will serve on you by the Bank and thereafter only Publication of Auction Notice in News Paper would be required for Sale of the said Mortgaged property. Therefore, the payment of the above said amount is in your benefit to save your valuable property. Please further note that any proposal, from your side, for amicable settlement of the issue regarding payment of outstanding amount shall also be in your own interest and you can contact our Client for amicable settlement before expiring of above stipulated time.

Dear Sir/ Madam Under instructions and on behalf of our client M/S KASB Bank Limited Consumer Banking Group having its principal office at Business and Finance Centre, I.I. Chundrigar Road Karachi, we are addressing you as under:- That on your request our client had sanctioned / given you a finance of Rs:_____________/- under account No. ______________________ against lawful documentation and mortgaged of below detailed property. Description of Mortgaged Property __________________________________________________________________________ That said Finance facility was extended under certain terms and conditions but you have failed to discharge your liabilities by not paying the amount/monthly installments and /or Mark-up installments on due dates despite repeated demands. This intentional default on your part resulted in termination of Financing Agreement and Recall of Facility i.e. whole outstanding principal amount with markup and other charges as per Agreement of Finance, making a total amount of Rs. ___________/-, as on _________which are payable by you forthwith.

Since the provision of section 15 of the Financial Institutions (Recovery of Finances) Ordinance 2001 vests powers to the Bank to sell mortgaged property through open auction so as to satisfy the dues against defaulter without resorting to Honorable Banking Court after services of prescribed notices under this Section. Please note that 1 st Notice under section 15 dated _______________ has already served on you. Now you are called upon through this 2 nd notice U/s 15 of the Financial Institution (Recovery of Finances) Ordinance 2001 to pay the outstanding amount of Rs. ____________/- within 14 days from the date of receipt of this 2 nd Notice otherwise right of satisfying dues/outstanding by open auction will be resorted by our client. It is also pertinent to point out that the remedies provided under the provision of Section 15, of the Financial Institutions (Recovery of Finances) Ordinance 2001, are in addition to other remedies and rights available to our client. Please note that, as per provisions of Section 15 Financial Institutions (Recovery of Finances) Ordinance 2001, after serving of this 2 nd Notice of 14 days, if you failed to pay the above said outstanding amount, one more notice of 30 days will be serve on you by the Bank and thereafter only Publication of Auction Notice in News Paper would be required for Sale of the said Mortgaged property. Therefore, the payment of the above said amount is in your benefit to save your valuable property. Please further note that any proposal, from your side, for amicable settlement of the issue regarding payment of outstanding amount shall also be in your own interest and you can contact our Client for amicable settlement before expiry of above stipulated time.

Dear Sir/ Madam Under instructions and on behalf of our client M/S KASB Bank Limited Consumer Banking Group having its principal office at Business and Finance Centre, I.I. Chundrigar Road Karachi, we are addressing you as under:- That on your request our client had sanctioned / given you a finance of Rs:_____________/- under account No. ______________________ against lawful documentation and mortgaged of below detailed property. Description of Mortgaged Property __________________________________________________________________________ That said Finance facility was extended under certain terms and conditions but you have failed to discharge your liabilities by not paying the amount/monthly installments and /or Mark-up installments on due dates despite repeated demands. This intentional default on your part resulted in termination of Financing Agreement and Recall of Facility i.e. whole outstanding principal amount with markup and other charges as per Agreement of Finance, making a total amount of Rs. ___________/-, as on _________which are payable by you forthwith.

Since the provision of section 15 of the Financial Institutions (Recovery of Finances) Ordinance 2001 vests powers to the Bank to sell mortgaged property through open auction so as to satisfy the dues against defaulter without resorting to Honorable Banking Court after services of prescribed notices under this Section. Please note that 1 st and 2 nd Notices under section 15 dated ______________ and ____________, respectively, have already served on you. Now you are called upon through this 3 rd notice U/s 15 of the Financial Institution (Recovery of Finances) Ordinance 2001 to pay the outstanding amount of Rs. ____________/- within 30 days from the date of receipt of this 3 rd Notice otherwise right of satisfying dues/outstanding by open auction will be resorted by our client. It is also pertinent to point out that the remedies provided under the provision of Section 15, of the Financial Institutions (Recovery of Finances) Ordinance 2001, are in addition to other remedies and rights available to our client. Please note that, as per provisions of Section 15 Financial Institutions (Recovery of Finances) Ordinance 2001, after serving of this 3 rd Notice of 30 days, if you failed to pay the above said outstanding amount, only Publication of Auction Notice in News Paper would be required for Sale of the said Mortgaged property. Therefore, the payment of the above said amount is in your benefit to save your valuable property. Please further note that any proposal, from your side, for amicable settlement of the issue regarding payment of outstanding amount shall also be in your own interest and you can contact our Client for amicable settlement before expiry of above stipulated time.

From: - Auction Coordinator To: - Auction Committee/Chief Executive Officer Dated: - ________________ Sub: - Sale of Property (ies) Through Auction as per Provisions Of section 15, Financial Institutions (Recovery of Finances) Ordinance 2001, pertaining to defaulter Muhammad Latif A/C No________________ Despite the service of 3 Notices under section 15 (4) of the above said ordinance the defaulter above named failed to clear the outstanding dues of Rs___________________, therefore, the Auction Notice was published in Daily ____________ and the Daily___________ both dated___________. In response to said Publication ____________ Persons have submitted their bids for Property.The Particulars of bidders with contact number and bid amount are mentioned herein below. The sealed bids have been opened in Presence of bidders on this_________ day of _____________ at ______________:- Property No:____________________________________________________________ ____________________________________________________________ Name & Father’s Name of Bidder N.I.C No Address Contact No Bid Amount Sign & Thumb impression of bidder

In respect of said Property the highest bidder is Mr.______________________________ S/o______________ who has submitted a bid of Rs.______________ for the Purchase of Property subject to approval of Auction Committee/competent Authority I_____________________S/o______________ Branch Manager/ Auction Coordinator of _________ Bank ________________ Branch have conducted the said auction proceedings as coordinator. All the results of opened bids have already been narrated above. Now I am forwarding this Auction Proceeding memorandum for the approval of Auction Committee. All the received and opened bids are attached herewith. _____________ Dated: - Forwarded for Approval Please Coordinator

Auction Committee’s Approval:- We (I) ___________________________ (II) _________________ (Members) and (III) ____________________ __(Head of Committee /CEO) have carefully examined the contents of Auction Proceeding Memo and the received bids. In view of our finding we approve the heights bid of Rs.___________________________________________ submitted by Mr.___________________________________________ in respect of said Property The above noted successful bidders can deposit the remaining amount for purchase of above said property with in 15 days and get register the sale deed in their favor on their own Expenses and Cost. (I)___________________ (II)__________________ (III)__________________

Than You