MUHAMMAD HASHIM Versus FATIMA JAMAL

ORDER

1. This is a suit for recovery of a sum of Rs.1,25,000 on the basis of a Promissory Note shown to be executed by the Defendant on 25-5-1987. The case of the plaintiff is that the promissory Note being payable on demand, due demand was made on the defendant for payment but. she failed to comply with the same. The defendant, though served personally with the process of this Court, has remained absent throughout. The Promissory Note does not stipulate payment of any interest. However, in view of the Official acknowledgement of ongoing depreciation in the value of Pakistan currency and in recognition of Muslim Law concept of the liability of a debtor to make good an amount equivalent to that A borrowed, I would in exercise of powers of this Court under Section 151, C.P.C. allow 10% per annum to the plaintiff on the principal amount claimed in Suit. Such payment at 10% per annum as aforesaid shall ensure towards adjustment of the referred depreciation and the same shall continue to be reckoned till realization of the decretal amount.

2. The above view is based on my respectful concurrence with the substance of the dicta of my learned brother, Tanzilur Rehman, J. in the cases of Bank of Oman Ltd. v. East Trading Co. Ltd. P L D 1987 Kar.404; Irshad H. Khan v. Mrs. Parween Ejaz P L D 1987 Kar.466 and Habib Bank Ltd. v. Muhammad Hussain and others P L D 1987 Kar. 612 declaring that interest is not payable in the Islamic Republic of Pakistan.

3. This Suit is, therefore, decreed for the principal amount of Rs.1,25,000 plus 10% per annum from the date of the Promissory Note i.e. 25-5-1987 till realization.

4. M.A.K./M-803/K

5. Suit decreed.