Law: Banking Companies Ordinance, 1962

Section: 94

Law: Law Reforms Ordinance, 1972

Section: 3

Law: Limitation Act, 1908

Section: 60,71

Law: Public Debt, Act, 1944

Section: 28

Banking Companies Ordinance (LVII of 1962)--- ----S. 94---Public Debts Act (XVIII of 1944), S. 28---Law Reforms Ordinance (XII of 1972), S. 3---Limitation Act (IX of 1908), Arts. 60 & 71---US Dollar Bearer Certificate Rules, 1991, Rr. 3, 4, 5, 6, 7, 9, 12, 13 & 14---Notification SRO No. 140(I)/91 dated 25-02-1991---Dollar Bearer Certificate, encashment of---Reversal of payment---Duty of State Bank---Plaintiff purchased US dollar bearer certificate from open market and presented it to defendant Bank for encashment---Payment was transferred to plaintiff's account but same was reversed on directions of State Bank of Pakistan on grounds that Certificate was stolen and already encashed to a foreign Bank---Suit filed by plaintiff was decreed in its favour by Single Judge of High Court---Validity---Only ground due to which State Bank had refused to reimburse amount of certificate to defendant Bank for payment to plaintiff was that certificate was stolen instrument and had already been encashed---Prior to presentation of Certificate by plaintiff and its encashment by defendant Bank, State Bank had received information in writing regarding its loss/theft as well as request for stopping payment---State Bank did not notify or circulate such information to defendant Bank although it was required to do so---State Bank was duty bound under Public Debts Act, 1944 to notify loss/theft of Certificate to defendant Bank and also to hold summary inquiry in order to determine claim made in respect thereof---Compliance of such terms was not made by State Bank and FIR lodged by foreign Bank after 55 days of alleged incident was not in existence when certificate was presented by plaintiff or when it was encashed by defendant bank---Burden was on State Bank and defendant Bank to prove that certificate was lost/stolen or it had been encashed and its amount was reimbursed by State Bank prior to date when it was presented by plaintiff---Accepting certificate from plaintiff and encashing same after verification were done by defendant Bank in normal course of its business and within authority granted to it by principal/State Bank---Subsequent act of defendant Bank of…

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