Law: Contract Act (IX of 1872)

Section: 171

JUDGMENT '

Both these suits arise out of identical facts and same question of law is involved, therefore I propose to dispose them of by a common judgment. Fancy Investments Limited, filed Suit No. 766/1977 in respect of their 42,200 shares of Commerce Bank Ltd. which they bad surrendered to the Commerce Bank in terms of Bank (Nationalization) Act, 1974. Suit No. 767/1977 has been filed by Fancy Foundation in respect of 22,002 shares of Commerce Bank Ltd. which they had surrendered to Commerce Bank, as stated above. The plaintiffs were the registered share-holders of Commerce Bank Ltd. holding the aforestated shares. On 1st January, 1974, by Banks (Nationalization) Act, 1974, all Pakistani banks were nationalised and their ownership, management and control transferred to and vested in the Federal Government. The Act provided that all shares held by persons in capital of a bank which was nationalised were to be transferred to and vested in the Federal Government with effect from 1-11974. The registered share-holders of Nationalised Banks were to receive compensation from the Federal Government in the form of Bonds of the Federal Government which were made negotiable. On or about 8-10-1974 the plaintiff received a printed letter/circular from the Commerce Bank requesting surrender of shares in the form prescribed under the rules to enable the said bank to make payment of Federal Government compensation bonds. The plaintiffs surrendered the aforestated shares to Commerce Bank Ltd. in terms of Banks (Nationalization) Act, 1974, along with all relevant and required applications and forms for exchange with compensation bonds. Commerce Bank issued receipt in favour of the plaintiffs acknowledging the receipt of the shares for exchange with compensation bonds. However the defendant No. 1 in which the Commerce Bank had merged did not pay any compensation bond to the plaintiffs. The plaintiffs therefore served notices on the defendant No. 1 without any result. As the shares deposited with defendant No. I were pledged with defendant No 3 the plaintiffs demanded that the compensation bond may be issued and delivered to the defendant No. 3 in lieu of the receipts issued by Commerce Bank. The plaintiffs in Suit No. 766/1977 have averred that they are entitled to compensation bonds worth Rs. 2,11,000 and interest amounting to Rs. 84,000, whereas the plaintiffs in Suit No. 767/ 1977 have likewise claimed that they are entitled to compensation bonds worth Rs. 1,15,010, and interest amounting to Rs. 46,000. The plaintiffs have therefore prayed that the defendants Nos. I and 2 be directed to deliver the compensation bonds to the plaintiffs and in the alternative the aforestated value as determined under the Banks Nationalization Payment of Compensation Rules, 1974, with interest should be paid to them.