HABIB BANK Ltd: Versus A.RAHMAN HABIB

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.3,36,45,609.95.

2. The main ground on which leave to defend is sought is that the principal 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.M36 of 1986) 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 guarantees then the decree shall not be executed against the defendants.

M.Y.H./H‑91/K Suit decreed.