Al Wakeelo
Your Digital Lawyer, Always on Duty
Initializing Secure Chambers
Your Digital Lawyer, Always on Duty
Initializing Secure Chambers
Petitioner: HABIB BANK LTD. VS Respondent: KASSIM H. HABIB
1988 MLD 857(1)
1988 MLD 857(1)
[Karachi]
Before Syed Abdur Rahman, J
HABIB BANK LTD.‑‑Plaintiff
versus
KASSIM H. HABIB and 4 others‑‑Defendants
Suit No. 405 of 1984, decided on 1st October, 1987.
Civil Procedure Code (V of 1908)‑‑--
----O.XXXVII, R.2‑‑Banking Companies (Recovery of Loans) Ordinance (XIX of 1979), S. 4‑‑Leave to defend suit for recovery of loan‑‑Fact that principal debtor was in liquidation could hardly be a ground on which suit could be defended‑‑Suit decreed but execution of decree stayed till winding up proceedings of principal debtor were over.
Liaquat Merchant for Plaintiff.
M.A. Nazi holding brief for Muhammad Ali Saeed for Defendant.
Date of hearing: 1st October, 1987.
JUDGMENT
The application for leave has been made in this suit under Order XXXVII, C.P.C. read with Banking Companies (Recovery of Loans) Ordinance which is for the recovery of an amount of Rs. 32,11,283.66.
2. The main ground on which leave to defend is sought is that the Principall' Debtor M/s.Arag Industries Limited is in liquidation. This can hardly a ground on which the suit can. be defended. The application is, therefore, dismissed. The result is that the suit is decreed with costs as prayed. However, to protect the interest of the defendant it is ordered that the decree in the suit should not be executed till .the winding up proceedings of Arag Industries Limited (In J.M.36/86) are over. It is further ordered that the decree against the guarantors shall not be executed for more than the amount for which they had furnished guarantee according to Annexures A‑1 to A‑6. It is further observed that in case the liquidator pays amount equivalent to the amount of the guarantee, then the decree shall not be executed against the defendants.
M.Y.H./H‑92/K Suit decreed.