1994 PLP 308 (CLC)

The present suit has been filed by the plaintiff against the defendants for recovery of Rs.6,88,886.00. The case of the plaintiffs is that the defendant No.1 is a Private Company while defendant No.2 is one of its Directors and is also mortgagor. Plaintiffs at the relevant time had the exclusive responsibility of exporting cotton and, therefore, had to purchase the cotton from Ginning and Pressing Factories in Pakistan and that in October, 1988 the plaintiff negotiated to purchase the entire production of cotton‑ginned and fully pressed by defendant No.l at their factory during the season of 1988‑

89. By an agreement dated 6‑10‑1988 executed between the plaintiff and defendant No.l at Karachi the defendant No.l agreed to supply the plaintiff their entire production of cotton- ginned and fully pressed at their factory during the said season on terms and conditions mentioned in the agreement and by way of security the defendant No.2 deposited with plaintiff his original title documents relating to his immovable property being Plot No.119 measuring L58.66 square yards with shops and other constructions thereon situate in New Grain Market, Vehari Road, 14ultan with intention to create equitable mortgage thereon in favour of the plaintiff and also executed a memorandum of deposit of title deed. It is further the case of the plaintiff that at the request of the defendant the plaintiff granted an advance of a sum of Rs.10,00,000.00 to the defendant No.l which was paid at Karachi by way of acknowledgment and security for repayment thereof the defendant No.l through defendant No.2 executed at Karachi a demand promissory note for Rs.10,00,000.00 in favour of the plaintiffs and also executed a receipt for the same amount. According to the terms of the agreement the value of the supply of the cotton by defendants to the plaintiff was to be adjusted against the said advance amount of Rs.10,00,000.00 latest by 31‑1‑1989 and that in case of default of supply cotton as per agreement the defendants were liable to refund/repay the entire advance of the balance advanced which remained unadjusted together with mark‑up at the rate of Re.0.43 per rupees one thousand per day from 11‑10‑1988 till payment to the plaintiffs. The plaintiffs have further asserted that the defendants committed default as they neither supplied full quantity nor refunded the balance amount with the result that a sum of Rs.4,88,599:00 and mark up remained unadjusted/unpaid by the defendants and that in spite of repeated requests and demands they neglected to adjust the said amount which accumulated to Rs. 6,00,139 as on 31‑12‑1989. The plaintiffs after having served a notice through their Advocates then filed this suit. The defendants were served through publication in daily "Nawa‑e‑Waqt" Multan on 23‑11‑1993 and that notice was also passed on 16‑12‑1992. Ultimately on 21‑12‑1992 the service was held good as against the defendants who failed to appear in the suit. The suit has therefore been today put up for final disposal None is present for the defendants. In view of the above facts the suit of the plaintiffs is decreed as prayed with no order as to costs. Let the preliminary decree be prepared under Order 34, C.P.C. H.B.T./C‑297/K Suit decreed.