ALLIED BANK OF PAKISTAN LTD. Versus MUMTAZ & CO.

This is a suit for recovery of Rs.43,99,964.34 under the Banking Companies (Recovery of Loans) Ordinance.

2. Case of the plaintiff Allied Bank of Pakistan is that defendants were allowed credit facilities in their own names and in the names of their firm or their affiliated companies from various accounts and they admitted their liabilities to the extent of Rs.69,72,891.43. In acknowledgement thereof they entered into an agreement with the plaintiff on 5‑5‑1979 and executed pronote for the above amount on 24‑5‑1979. As additional security they mortgaged their building, Mills and residential house standing on a plot measuring 11 Kanals, 5 Marlas bearing Khasra No.1861 Chak No.212 village area, Lalkot Tehsil and District Lyallpur known as Zafar Oils Mills on 25‑11‑1970. By agreement dated 5‑5‑1979 the defendants admitted that the mortgage as registered above, remained a mortgage for the said amalgamated loans and also signed, executed and delivered a letter of hypothecation Defendants Nos.2 to 5 signed executed and delivered a letter of guarantee for repayment of the said amount and defendant No.l alse deposited two Fixed Deposit Certificates with the plaintiff‑ Defendants have made payments amounting to Rs.10,000. Interest at the rate of 14$ per annum is claimed. The balance against the , defendants is Rs.43,99,964.23 which they have not paid in spite of notice, hence this suit. The summons were sent to the defendants by three modes prescribed in the law. The defendants have chosen to ‑remain absent l in spite of service by substituted service through publication as well as by service through registered post. The suit was fixed for final disposal today when an application under Order 9 Rule 13 C.P.C. is made by the plaintiff. The affidavit of Basharat A. Shaikh filed alongwith this application shows that summons were received by the defendants through post on 6‑5‑1988. This application is filed after 3 months and 25 days of the receipt of the summons. An application under Order 37 Rule 3 C.P.C. for leave to defend the suit is to be filed within 10 days of the service of the summons. Hence the defendants are not entitled to defend the suit.. The plaint is verified on oath and is accompanied by photo copies of agreement, letters, pronote and all other documents referred to in the plaint as well as the extract of the accounts.

3. Under these circumstances I decree the plaintiff's suit for a sum of Rs.43,99,964.23 with interest at the rate of 14$ per annum with quarterly rest from the date of the suit till payment of the decretal amount. I pass a preliminary decree under Order XXXIXI Rule 4 C.P.C. and direct that if the said decretal amount is not paid within 6 months the mortgaged property shall be sold in execution of) the decree. The costs of the suit shall be borne by the defendants.

M.Y.H./A‑459/K Suit decreed.