UNITED BANK Ltd. Versus MUHAMMAD LATIF
The plaintiff United Bank Limited has filed this suit against Muhammad Latif and two others praying for the following reliefs:‑‑
"(a) For preliminary decree for sale of mortgaged property fully described in paragraph 19(d) of the plaint belonging to the defendant No. 3 in default of payment of Rs. 33,59,426.60 by the Defendants above‑named or any of them with accruing interest at 14% per annum with effect from 1‑10‑1986 till payment within the time that may be allowed by this Hon'ble Court to the Defendants.
(b) For final decree by way of sale of defendant No. 3's mortgaged property fully described in para. 19(d) of the plaint in default of payment mentioned in clause (a) above.
(c) In case the sale proceeds of the mortgaged property are found to be insufficient to pay the amount due to the plaintiffs then the liberty may be reserved to the plaintiffs to apply for the balance under order XXXIV, Rule 6, C.P.C. against all defendants.
(d) For costs of this suit, and."
2. The defendants despite proper service of summons upon them failed to appear and/or make an application for leave to defend. Hence this suit has come up for final disposal.
3. The plaintiff's case as pleaded in the plaint is that the defendant No. 1 in his personal name and as sole proprietor of Rafiq Trading Company, Taufiq Impex and Junaid Traders maintained LIM Account with the plaintiff's Eidgah Branch, with facilities of Rs. 3,00,000 against hypothe‑cation of stocks and pledge of consignments. He also maintained Cash Credit Account with the plaintiff's Eidgah Branch with a sanction of Rs. 2,00,000 against hypothecation of stocks. The outstanding balance of Rs. 2,31,727 standing in the name of defendant No. 2 was transferred to LIM Account with the plaintiff's Frere Road Branch. The defendants Nos. 1 and 2 failed to adjust their outstanding liabilities which as on 1st April, 1985 in the authorised accounts was as under:‑‑
(a) Muhammad Latif LIM A/C.
10,53,593.06
(b) Rafiq Trading Co. LIM A/C.
4,80,273.00
(c) Taufiq Impex LIM A/C.
5,43,235.07
(d) Junaid Traders LIM A/C.
2,53,579.27
(e) Muhammad Latif CC A/C.
4,24,912.20
(f) Syed Mazahir Hussain LIM A/C.
6,03,834.00
Total
33,59,426.60"
4. That the defendant No. 3 in consideration of the plaintiff's acceding to his requests to grant to defendants Nos.l and 2 financial accommodation by way of cash credit and LIM Accounts, as stated above, to the extent of Rs. 26,85,000 mortgaged his property, namely, Plot No. 34‑A/245 admeasuring 290 sq. yds. Or thereabout situated at Blocks‑7 and 8, Kathiawar Cooperative Housing Society, Karachi, together with all buildings and structures thereon by way of continuing security for payments of liabilities of defendants Nos. 1 and 2, a deed of mortgage dated 23‑4‑1985 registered at Serial No. 1101, dated 24th April, 1985 in favour of the plaintiff which was duly registered with the Sub‑Registrar, `T' Division XI, Karachi under Registered No. 765 at pages 93‑97 Vol. 280, Book 1, Additional on 29‑4‑1985 and undertook to pay the mortgaged money loan in quarterly instalments of Rs. 5,00,000 till the mortgaged money was fully paid off.
5. The defendant No. 1 in consideration of the facilities enjoyed by him in the LIM Account in his own name, as sole proprietor of Rafiq Trading Company, as sole proprietor of Taufiq Impex and as sole proprietor of Junaid Traders executed four separate promissory notes, debit confirmation slips, letters of disbursements, and letters of arrangement on 14th May, 1985 as are detailed in paragraphs 7, 8, 9 and 10 of the plaint. Similarly promissory notes, debit confirmation slips, letters of disbursements, letters of arrangement and letters of continuity were executed by defendants Nos. 1 and 2 in consideration of the facilities enjoyed by him in Cash Credit Account and LIM Account respectively in the sum of Rs. 3,45,730.48 and ‑Rs. 5,00,916 outstanding in the Cash Credit Account and LIM Account respectively as on 31‑3‑1985 as a security for the said outstandings. The defendants Nos. 1, 2 and 3 had failed and neglected to pay any instalment despite repeated requests and/or to adjust outstanding liabilities in the sum of Rs. 33,59,426.60 as on 30‑9‑1986. The legal notices dated 20‑9‑1986 were also sent to all the defendants by registered post which were duly acknowledged by defendants Nos. 1 and 3 as per postal acknowledgment cards; whereas the notice of defendant No. 2 was returned by the postal authorities with the endorsement that the addressee had left the given premises.
6. The plaintiff in support of its case has examined one Sabih Muhammad, Manager, United Bank Limited. The witness has deposed all the above‑noted facts as stated in the plaint and in support of the plaintiff's case has produced Exhs. X/1 to X/26. The case has proceeded ex parte against the defendants, the statement of the plaintiffs witness abovenamed remains uncontroverted. Plaintiff's case is supported by and stands proved by the documents produced and A marked as Ex. X/1 to Ex. X/39.
7. Under the aforesaid facts and circumstances of the case the plaintiff's suit is decreed with costs by way of preliminary decree. It is also awarded interest from the date of suit till realization at the agreed rate of interest.
S.Q./U‑34/K
Suit decreed.