Law:

Section:

Contract Act (IX of 1872)--- --------S. 176---Companies Ordinance (XLVII of 1984), Ss.2(32) & 62---Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997), Sections 9 & 21---Pawnee's right---Offer of shares/debentures for sale---Banking Court decreed suit in favour of Bank---Plea raised by borrower was that Bank had not issued notice under S.176 of Contract Act, 1872 and could not sell shares without approval of Securities and Exchange Commission of Pakistan---Validity---If notice by pawnee to pawnor had stated that in case of default of payment of debt within time stipulated, pledged shares would be sold out by pawnee, it was sufficient compliance of requirement of S.176 of Contract Act, 1872---Plaintiff Bank duly made compliance of S.176 of Contract Act, 1872 before exercising its right to sell pledged shares of borrower---Plaintiff was a scheduled Bank in terms of S.2(32) of Companies Ordinance, 1984 and it had obtained shares from borrower as security to finance facility availed by him, in normal course of its banking business---Requirement of seeking approval from Securities and Exchange Commission of Pakistan was not applicable to plaintiff-Bank in view of S.62(5) of Companies Ordinance, 1984---High Court did not find any infirmity in and decree passed by Banking Court in favour of plaintiff Bank---Appeal was dismissed in circumstances. THIS JUDGMENT DELIVERED BY: ZAFAR AHMED RAJPUT, JUSTICE:---------------- By this appeal, under section 21 (1) of the Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997 the appellants/defendants have challenged the legality and validity of the judgment and decree dated 04.12.1998 and 14.01.1999 respectively, passed by the Banking Court No. III, at Karachi, whereby Suit bearing No.947 of 1992, filed by the respondent-Bank/ plaintiff, was decreed against the appellants in the sum of Rs.63,32,900/- with costs and future mark-up from the date of filing of the suit at the rate of 10% p.a. 2. Respondent-Bank initially instituted the suit against the appellants being No.733 of 1987 in this High Court on 29.09.1987; later on, at the request of learned counsel for…

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