Law:

Section:

(a) Civil Procedure Code (V of 1908)--- ----O. XXXVII, Rr. 2 & 3---Recovery of money on the basis of negotiable instrument---Leave to defend the suit, non-availing of---Effect---If defendant has failed to obtain leave to defend the suit, Court is required to apply its mind to the facts and documents, placed on record before passing any order or judgment, notwithstanding the fact that no person has appeared before it to oppose such order or the person who wanted to oppose was not allowed to oppose because he failed to fulfil the requirement of law. (b) Stamp Act (II of 1899)--- --S. 11---Civil Procedure Code (V of 1908), O.XXXVII, R.2---Promissory note written on stamp. paper---Defendant assailed promissory note on the ground that it was not written on a paper containing adhesive stamp as required under S.11 of Stamp Act, 1899---Validity---Provisions of S.11 of Stamp Act, 1899, were directory and permissive in nature and were not mandatory---Promissory note could be written on a paper having adhesive stamps and could also be written on a stamp paper---Only because the promissory note was not written on a paper having adhesive stamp did not lose its utility as promissory note---Not necessary that promissory note must be affixed with adhesive stamp---Promissory note written on stamp.,paper was as good as written on paper containing adhesive stamps. Muhammad Akram v. Khuda Bux 2000 CLC 759 and Farid Akhtar Hadi v. Muhammad Latif Qazi 1988 CLC 2397 distinguished. Muhammad Sharif v. Muhammad Hashim Paracha and another PLD 1987 Kar. 76; Habib Bank Limited v. Chaudhry Cloth House 1991 CLC 164; P. Moorthy v. A.R. Kothandaraman AIR 1978 Madras 412 and Somdatta v. Abdul Rashid AIR 1968 Rajasthan 45 rel. (c) Civil Procedure Code (V of 1908)--- ----O. XXXVII, Rr. 2 & 3---Recovery of money on the basis of promissory note---Leave to defend the suit---Non-compliance of conditional order---Presumption against negotiable instrument---Defendant was granted leave to defend the suit subject to furnishing of surety bond---Despite extension in time, defendant failed to furnish any surety as directed by the Court---Effect---Plaintiff, while producing promissory note and…

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