Law: Negotiable Instruments Act (XXVI of 1881)

Section: 29

Negotiable Instruments Act (XXVI of 1881)--- ----S. 29, proviso---Civil Procedure Code (V 1908), O. XXXVII, R.2---Suit for recovery of loan under summary procedure--Limitation---Delivery of blank promissory note---Filling up of such promissory note---Inchoate instrument was required to be filled in within reasonable time---Presumption would be that such document had been filled up within reasonable time and strictly in accordance with the authority given and same would be effectual for all purposes---Such presumption being in favour of recipient of the instrument, it was for the executant of the instrument to show that same was not filled up or completed within reasonable time---Defendants in written statement had not taken any plea whatsoever with regard to completion of instrument into promissory note having been made beyond reasonable time---In absence of any such plea or evidence and looking at the date of the instrument, suit could not be deemedto be barred by time---Plaintiffs suit was decreed in circumstances. (pp. 49915001 A, B & C United Bank Ltd. v. President, Bazme Salat and another PLD 1986 Kar. 464; PLD 1989 Kar. 150; Carter v. White (1882) 20 Ch.D. 225 and (1983) 25 Ch.D. 666 rel. Syed Mamnoon Hassan for Plaintiff. Syed Zafar Hadi Shah for Defendant. Dates of hearing: 13th and 14th February, 1995. JUDGMENT The present suit has been filed by United Bank Limited for recovery of Rs.1,22,253 under summary chapter on the basis of promissory note. Briefly the facts are that in 1969, the partners of the firm Hasan Ali & Company had opened an account with Commerce Bank Ltd., Saleh Muhammad Street Branch; Karachi. The said Bank was nationalised and merged with the plaintiff Bank with effect from 30-12-1974. The above account was operated by the firm till July, 1971. At   the request of the partners of the said firm, the above account was transferred in the name of Hasan Ali & Company Ltd., registered under the Companies Act, 1913, the partners of the firm having represented themselves as directors of the said company. The plaintiff at the request of the defendant allowed facility of loan/cash credit/over-draft which they availed and…