2006 PLP 530 (CLD)

MAQBOOL BAQAR, J.

The appellants through the above appeal had challenged the order dated 4-4-2005, whereby the learned Banking Court No.III at Karachi, dismissed the appellant No.2's application dated 9-12-2004, for allowing her to pay off to the respondent-Bank its dues towards appellants as determined by the State Bank Committee, in terms of State Bank Circular No.29, and to make the down payment in terms thereof in the third week of January, 2005 and confirmed the sale of the mortgaged properties in the execution proceedings. In brief the background of the case is that a suit filed by the respondent-Bank against the appellants for recovery of its dues in respect of finance granted by the respondent-Bank to the appellants was decreed by Banking Court No.III vide judgment dated 24-8-1998. For enforcement of the above decree the respondent-Bank filed Execution Application No.15 of 2000. In the meanwhile the appellants offered to pay to the respondent-Bank its dues in terms of B.P.D. Circular 29 and by letter dated 25-5-2004 the State Bank Committee for resolution of cases under the aforesaid scheme conveyed to appellant No.2 its decision to the effect that the appellants may settle their outstanding liabilities towards the respondent Bank by making payment of Rs.3,006,200 out of which 10% was to be paid at the time of signing of the Settlement Agreement and the balance 90% was payable in 12 equal instalments over a period of 2 years. In pursuance of the above, the respondent-Bank, by letter dated 25-6-2004 requested the appellants to make the down payment before 10-7-2004 and sign the agreement. However, admittedly the appellants failed to adhere to the above schedule and could not even pay 10% towards down payment. In the meanwhile the Banking Court ordered sale of the mortgaged property in the above execution application. By letter dated 26-8-2004 the State Bank's Committee, upon request made by the appellants for extension of time for depositing down payment of 10% up to 5-8-2004, requested the respondent-Bank to advise the borrower to make the down payment within next 15 days, failing which settlement package may be withdrawn. In pursuance of the above letter the respondent-Bank vide letter dated 11-10-2004 advised the appellants to deposit the token money before 26th October, 2004 as a last chance or else the bank shall proceed with the execution of the decree before the Banking Court. However, the appellants yet again failed to pay any amount and through letter dated 21-10-2004 requested the Governor, State Bank of Pakistan to waive the amount of mark-up to enable her to pay back, to the respondent-Bank, only the principal amount of Rs. 18,66,000, which amount she will somehow arrange, and pay to the bank. The waiver was however, declined by the State Bank vide letter dated 29-10-2004. It appears that the appellants again approached the State Bank Committee, who vide letter dated 18-12-2004, required the appellants to adhere to the decision of the Committee conveyed to them through the aforenoted letter dated 25-5-2004. However, the appellants still failed to make any payment and on 19-12-2004 appellant No.2 filed an application before the Banking Court No.III, wherein she submitted that it was due to the circumstances beyond her control that the outstanding dues towards the respondent-Bank could be paid and prayed that she may be allowed to pay such amount as per schedule decided by the State Bank of Pakistan and offered to make the initial payment in the third week of January, 2005. From the above, it is clear that the appellants despite several extensions of time failed to deposit even the 10% down payment of the amount that they were required to pay in terms of State Bank Circular No.29. The appellant No.2's application in the circumstances was rightly dismissed by the Banking Court No.III through the impugned order. For the foregoing reasons, we found no merits in the appeal and dismissed the same along with the listed-application by short order dated 16-1-2006. M.B.A./A-33/K?????????????????????????????????????????????????????????????????????????????????? Appeal dismissed.