2007 PLP 471 (CLD)

SYED ASGHAR RAIDER, J.-This appeal is directed against the judgment and decree dated 1-1-2003, whereby the suit of the plaintiff/respondent was decreed by the Banking Court-III, Lahore.

2. The appellants/defendants obtained a finance facility from the plaintiff-Bank of Rs.17,00,672.46, they executed several documents, appellants/defendants Nos.3 and 4 also executed mortgage deed in favour of the respondent-Bank qua their property, the plaintiff-Bank alleged default and filed a suit for recovery, the defendant/appellants filed an application for the grant of leave to defend the suit, inter alia, raising dispute that they had liquidated and discharged the liability, except Rs 400,318, which was due on the stated date in the finance agreement. Replication was filed, after contest the suit was decreed, aggrieved thereof the present appeal.

3. Learned counsel for the appellant contended that the sanction advice itself reflects that the date of expiry of facility is 31-12-1995 and final date for adjustment is 30-1-1996 and on the said date the liability outstanding was to the extent of Rs.400,318, which was deposited in obedience to the order dated 17-4-2003, passed by this Court, therefore, in terms of BCD Circular No.32, dated 26-11-1984, the appellants have liquidated the entire liability thus, they have raised a bona fide defence and are entitled to the grant of leave.

4. The learned counsel for the respondents has defended the impugned judgment and controverted the contentions of the learned counsel for the appellants.

5. We have heard the learned counsel for the parties. The facility was granted on 29-12-1994 and the sanction advice itself contains the expiry date (30-1-1996) on the stated date the amount due to the plaintiff was Rs.15,24,512 of which an amount of Rs.11,24,194 was paid, thus, the balance amount outstanding was Rs.400,

318. This amount too was deposited in obedience to the orders of this Court dated 17-4-2003, thus, prima facie no amount is outstanding towards the defendants/appellants. The trial Court has not considered the grounds raised by the appellants nor has adverted to the effect of payments made, prima facie the outstanding liability stands liquidated, pursuant to the direction of this Court, in these circumstances the appellants have raised a bona fide defence, for which recording of evidence is essential to determine liability, if any. This appeal is, therefore, allowed, judgment and decree dated 1-1-2003, is set aside, the appellants/applicants are granted leave to defend the suit, the proceedings are remanded to the Banking Court-1, Faisalabad, for adjudication and decision on merits in accordance with law. No order as to costs. S.A.K./I-80/L Appeal accepted.