NATIONAL BANK OF PAKISTAN Versus ALLIED PAPER INDUSTRIES LTD.

ORDER

1. This is an application under section 316 of the Companies Ordinance, 1984 read with section 47, GYP.C. by Judgment‑Debtor No.2. It is averred by the applicant that Judgment‑Debtor No. 1 is a limited company which was under liquidation and was wound‑up by the Order of this Court on 30‑8‑1983 in J.M. No.23 of 1983, whereas the execution application was filed on 11‑12‑1988, nearly four years after the winding up, and was, therefore, not maintainable under section 316(1) of the Companies Ordinance, 1984 because the requisite "leave of the Court" had not been obtained. In their counter‑affidavit the Decree-- Holder states that all Judgment‑Debtors are liable to pay decretal amount "jointly and severally" and, therefore, Judgment‑Debtor No‑2, who was the may behind the establishment of Judgment‑Debtor No. 1, was personally liable to pay the decretal amount and the condition precedent of "leave of the Court" as contemplated by section 316(1) was not attracted in the case of individuals and is confined only to proceedings against the company.

2. I have heard learned counsel of the parties on the above point. Mr. Bandial concedes that section 316(1) of the Ordinance is not attracted in case of individuals and its applicability is confined to companies under liquidation but contended that in that case the execution application, should have been only against the individuals and the company should not have been impleaded in the execution application and now that it is impleaded, section 316(1) shall apply to the execution application.

3. I am not impressed by the contention of learned counsel of Judgment --Debtor No.2. Notwithstanding that the company is impleaded as Judgment --Debtor No. l and requisite permission as contemplated by section 316(1) of the Ordinance has not been obtained, the execution application is maintainable against other Judgment‑Debtors as the decree makes them responsible jointly and severally. There is no merit in this application which is accordingly dismissed.

2. Execution application shall proceed. Attachment warrants be issued.

4. H.B.T./N‑25/K Application dismissed.