UNITED BANK LTD. Versus EASTERN FISHERIES LTD

1. The present suit has been filed on 31‑7‑1986 by the plaintiffs‑bank for the recovery of Rs.1,28,06,884.73 under Order 34, C . P. C. , alleged to be due against defendants. The defendant No.l is a company registered under Companies Act. The defendants Nos. 2, 3 and 4 are directors of the defendant No.l. According to the plaintiffs‑bank loans against Packing Credit Facility (HY) and irrevocable Letter of Credit had been taken by the defendant No.l. It is alleged in the plaint as security for repayment, the defendant No.l executed Demand Promissory Note for Rs.55,00,000, Letter of Arrangement and Letter of Continuity. As security, the defendants executed Letter of Hypothecation for Rs.55 lacs and which charge was duly lodged under section 114 of the Companies Act, 1913 vide Form XVIII dated 14‑6‑1981. To further secure the above facilities, the defendant No.2 created an equitable mortgage by executing on 8‑6‑1981 a Memorandum Confirming Deposit of Title Deeds in respect of one immovable property bearing No.A‑1, measuring 1902 Sq. Yds. with building thereon situated in Block 'A' in the Fish Harbour at West Wharf, Karachi and which mortgage or charge dated 8‑6‑1981 was duly lodged under Section 114 of the Companies Act, 1913 vide Form XVIII dated 4‑7‑1981. To further secure the above facilities the defendants Nos 3 and 4 executed personal guarantees in favour of the plaintiffs‑bank. Any of the defendants have not moved any application for leave to appear and defend the suit. The execution of Demand Promissory Note, Letter of Arrangement, Memorandum Confirming Deposit of Title Deeds, Personal Guarantees are not disputed. The statement of accounts filed by the plaintiffs‑bank shows that on 4‑3‑1986 a sum of Rs.1,28,06,884.73 was due and payable by the defendant No.l to the plaintiffs‑bank. The statement of accounts filed by the plaintiffs‑bank alongwith the plaint which is on oath has not been denied by any of the defendants. The plaintiffs have also filed affidavit in ex parte proof.

2. Mr. Salim Karamally, the learned Counsel for the plaintiffs‑bank has annexed to the affidavit in ex parte proof original documents. I, therefore, hold that on 4‑3‑1986 a sum of Rs.1,28,06,884.73 was due and payable by the defendants jointly and severally to the plaintiffs‑bank. However, for the present I will only grant a preliminary decree in Form 5‑A against defendant No.2 who is mortgagor of the property. The plaintiffs shall also be entitled to the costs of the suit and interest at the rate claimed in the suit.

3. A . A . / U‑26/ K Preliminary decree granted