1983 PLP 2629 (CLC)

(3) Whether the interest claimed by the plaintiff is excessive or in violation of the law. If so, what is the effect? (4) Whether the plaintiff is entitled to any other amount in excess of the principal amount and the interest? (5) To what amount is the plaintiff entitled? (6) General.

2. In this case the statement of account (Exh. 26) filed by the plaintiff Bank has been admitted on behalf of defendants except entries relating to interest. Further the promissory notes, agreement of cash credit, letters of guarantee and other documents have also been admitted by the defen dants including the balance confirmation slip dated 31st December, 1968 (Exh. 17).

3. In this case P. W. 1 (Exh. 84), an officer of the National Bank of Pakistan had been examined and he has given evidence regarding the grant of cash-credit to the defendant No. 1 and be has further stated that the interest that has been charged on the amount drawn by the defendant No. 1 was on the basis of documents executed by the defendants and that the interest had been charged at the agreed rate of interest and the rate of interest is provided in the agreements between the parties and the promissory notes as well as the guarantees executed by the defendants. He has further deposed about the State Bank of Pakistan's rate of interest at the relevant times. On the question of interest there was no cross-examination of this witness on behalf of the defendants. I may now deal with the issues framed in this case.

4. Issue No. 1 relates to misjoinder of parties, burden of which issue is on the defendants. It has not been shown how the suit is bad for misjoinder of parties. Defendants have made no attempt to discharge their burden. Issue No. 1 is decided in the negative against the defendants.

5. On issue No. 2, P. W. 1 (Exh. 84) has deposed that defendants Nos. 2 and 3 were guarantors for repayment of amounts due from defen dant No.

1. He was not cross-examined on this point. Further letters of guarantee dated 9th March, 1967 (Exh. 15) and dated 27th September, 1969 (Exh. 21) executed by defendants Nos. 2 and 3 have been admitted by the defendants. Promissory Notes are also executed by the defendants. In the face of this clear evidence, 1 find that defendants Nos. 2 and 3 had executed the guarantees and that they are personally liable. Issue No. 2 is decided in the affirmative.

6. Issue No. 3 relates to interest. The evidence of P.W. I (Exh. 84) relating to charging of interest according to agreed rates has not been challenged. Further his evidence regarding State Bank of Pakistan's rate of interest has also not been controverted. 1t has not been shown by the defendants that the interest charged is contrary to State Bank of Pakistan's directions on that it is against the provision of any law. The plaintiff bank has proved by admitted documents as well as through the evidence of P. W. 1 that the interest that has been charred by the plaintiff is according to the agreement between the parties. issue No. 3 is accordingly decided in the negative.

7. On issue No.4 suffice it is to observe that defendant have admitted all the entries in the statement of account (Exh 26) except the entries relating to interest. Question of interest has already been dealt with. As all other entries in the statement of account have been admitted coupled with the admission of the promissory notes and the balance confirmation slip dated 31st December, 1968 (Exh. 17) the defendants are liable for the entire amount as per the statement of account. Issue No. 4 is decided accordingly.

8. Issues Nos. 5 and 6 relate to relief. In view of my findings on issues Nos. 1 to 4, I pass a decree in the sum of Rs.6,34,038.22 against the defendants, jointly and severally, with interest at the rate of 9% per annum I,& from the date of the filing of the suit till realization. The plaintiff shall also be entitled to costs. M.Y.H. Case decreed.