2003 PLP 1050 (CLD)

TALAAT QAYYUM QURESHI, J.

M/s. Regional Development Finance Corporation filed suit against the appellant and 5.6thers for recovery of Rs.42,55,256 before Banking Judge-II, Peshawar. Having been served, appellant who was defendant No.2 in the suit filed application for grant of leave to defend the suit. The said application was dismissed and a decree for the claimed amount with cost of Rs.7,248 with future mark-up was granted in favour of respondent No.1 against the appellant and 5 others vide judgment and decree dated 25-9-2002. Being not satisfied with the judgment and decree passed against him, the appellant has filed appeal in hand.

2. Mr. Muhammad Asif, the learned counsel for the appellant argued that the appellant had tendered his resignation from the Board of Directors of the Company on 29-4-1995 and it was accepted on the same date. Intimation to this effect was not only given to the bank authorities but to the Registrar, Joint Stock Companies also, who had issued Form 29 showing that the appellant had resigned from the Directorship/Chief Executiveship of the Company. The respondent No.1 (R.D.F.C.) had also accepted Shahid Tanveer who had replaced the appellant as Chief Executive of the Company and the finance facility was re-scheduled on 25-4-1996. Fresh documents were got executed from M/s. Pak Food Industries (Pvt.) Ltd. and its Director, therefore, after the re-scheduling the appellant was absolved of his liability and was no more a guarantor but the learned Judge Banking Court did not appreciate this position property while passing decree against the appellant and 5 others.

3. We are afraid, the argument of the learned counsel for the appellant cannot help the appellant as the same has no substance. The execution of the guarantee has not been denied by the appellant. The only stance taken by him is that he had resigned from the Directorship of the company and his resignation has been accepted on 29-4-1995. The question as to whether the appellant was absolved of his liability with the acceptance of his resignation as Director. The answer to this question is in negative. The liability of guarantee executed by the appellant contemplates that the guarantee shall continue to be binding on him, his representatives in respect of the liabilities. The guarantee was executed by him in his individual capacity and the same was not conditional with the holding of his office as Director of M/s. Pak Food (Pvt.) Ltd. There is nothing on record to indicate that after his resignation on 29-4-1995, the appellant had revoked/ withdrawn the said guarantee or that the M/s. R.D.F.C. had cancelled the same and absolved the appellant of his liability as Guarantor. The letter of guarantee being subsisting and valid was enforceable by respondent No.1. The learned Judge Banking Court-II, N.-W.F.P., Peshawar has rightly appreciated the legal position while passing decree against the appellant and others. We have not been able to find out any illegality or perversity in this impugned judgment and decree, warranting interference, hence the appeal in hand is dismissed in limine, alongwith C.M. No.481 of 2002. H.B.T./741/P Appeal dismissed.