1986 PLP 1424 (MLD)

The facts which are leading to the filing of the suit are that the plaintiff is a ‑Banking Company incorporated under the Companies Act, 1913 and nationalized under the Bank Nationalization Act, 1974. The defendants had and still have their account with the plaintiff at their Shahrah‑e‑Liaquat Branch, Karachi. The defendants, vide their letter, dated 21‑3‑1982 requested the plaintiff for loan facilities upto the Rs.1 million for the establishment of their Industries of Fabricating Bus/Truck/Van bodies. On the aforesaid request of the defendants the plaintiff granted in favour of the defendants a loan limit of Rs.7,50,000 on 21‑3‑1982. The aforesaid loan was sanctioned on the condition of repayment in instalments of Rs.S0,000 per month, with effect from July, 1982 with interest at the rate of 4% above the Bank rate to a minimum of 14% per annum with quarterly rests. As security for due repayment of the said loan the proprietor of the defendants equitably mortgage her immovable property bearing Plot No.41‑Z/‑1, measuring 2,000 sq. yds., with construction thereon alongwith fittings and fixtures therein B'Wck No.6, P.E.C.H. Society Ltd., Karachi. The defendants accordingly executed memorandum confirming deposit of title deed on 29‑3‑1982 and simultaneously delivered to the plaintiffs the' following title documents: (1) Form 'A' Sub‑Licence, dated 23‑12‑1978 favouring Mrs. Shaheen Hassan widow of Syed Saeed Hassan. (2) Search Certificates, dated 2‑9‑1981 and 3‑9‑1981. (3) Valuation Certificates, dated 2‑9‑1981. (4) Site plan of Plot No.41‑Z/1, Block No.6, P.E.C.H.S. Ltd., Karachi. (5) No‑objection Certificate No.SO (C .1) 9. (216)/1217/82, issued by Government for Sind, Labour and Co‑operative Department, dated 1‑4‑1982 of the said property. On 29‑3‑1982 the defendants executed letter of undertaking in confirmation of equitable mortgage undertaking inter alia to obatain and submit permission to mortgage from P.E C.H.S. Ltd., Karachi and affirming that U.B.L. has been authorised to execute registered mortgage in their favour as and when so required by them at the expense of defendants. The defendants further affirmed that they would not transfer rights and interest in the mortgage property in any way in favour of any other person. On 29‑3‑1984 the defendants executed an irrevocable General Power‑of‑Attorney in favour of U.B.L. empowering them to convert the said equitable mortgage into registered mortgage and also to sell or mortgage same. At the request of the defendants the plaintiff's Bank, allowed them additional Loan of Rs.2,25,000 by enhancing the original loan limit of Rs.7,50,000 to Rs.9,75,

000. The enhanced facility was subject to repayment /adjustment in instalment of Rs.50,000 per month from July, 1982 with interest at 4% above the bank rate to a minimum of 14% per annum with quarterly rests. The defendants delivered the said pronote with letters of arrangement and disbursement of even date. The defendants utilised the said sums. The defendants after availing and utilising the financial accommodation granted to them failed to honour their commitment and they did pay even a single instalment towards adjustment of their outstanding liability. On 28‑3‑1985 the debit balance of Rs.15,41,680 was outstanding. The plaintiffs called upon them to pay the instalments but they failed to pay the instalments. The plaintiffs served legal notices, dated 3‑4‑1984, 27‑4‑1984, 29‑7‑1984 and 11‑3‑1985. A sum of Rs.15,41,680 is due and payable by the defendants. Hence the plaintiff filed this suit for recovery of the said amount. The summons was issued to the defendants. They did not file any application for leave to defend. The plaint is on oath. The plaintiff's filed original documents. The averment made in the plaint remained uncontroversial. It seems a sum of Rs.15,41,680 is due and payable by the defendants. The plaintiffs are entitled to a decree for the said amount. The suit is decreed `with interest at 14% per annum from the date of suit till realisation in favour of the plaintiffs. The plaintiff's are also entitled to costs. A.A Suit decreed