Law: Banking Companies (Recovery of Loans) Rules, 1980

Section:

Banking Companies (Recovery of Loans) Rules, 1980---   ----S. B---Civil Procedure Code (V of 1908), O.XXXVII, R.3---Application for leave to appear and defend suit unconditonally---Entitlement---Suit on basis of promissory note for recovery of loan amount---Defendants had obtained loan by depositing title deed of immovable property and also by executing necessary documents and by executing registered mortgage deeds in favour of plaintiff-- Memorandum and letter of guarantee were also signed by defendants---Notice of institution of suit was published in daily newspaper on 15-7-1993, while defendants filed application for leave to appear and defend suit on 7-8-1993, much later than statutory period of 10 days and thus, same was time-barred-- Defendants, however, having disclosed upon their affidavit, facts which might constitute plausible defence or even show that there was some substantial question of fact or law which would need to be tried or investigated into, were entitled to leave to defend---Even if defence set up was deemed to be vague or unsatisfactory, or there was doubt as to its genuineness, leave should not be refused altogether but defendant would be put on terms either to furnish security or to deposit the amount claimed in Court---High Court without touching merits or demerits of defence set tip by defendants, in interest of equity, fairplay and justice, granted conditional leave to appear and defend suit, provided defendants deposited loan amount severally or jointly as claimed by plaintiff in cash within specified time. Fine Textile Mills Ltd., Karachi v. Haji Umar PLD 1963 SC 163 fol. Ram Narain v, Lt.-Col. Hart Singh and another AIR 1964 Raj. 76; Punjab Pulp and Paper Mills Limited's case AIR 1932 Lah. 475; National Construction Ltd. v. Stanaaid Insurance Co. Ltd. 1984 CLC 286; Capt. Muhammad Aqeel Siddiqui and 2 others' case PLD 1988 Kar. 72; Baghpatee (Pvt.) Ltd. and others v. Ml!;, Pak-Libya Holding Company (Pvt.) Ltd. 1991 SCMR 33; Shaafi Woollen Industries Limited's case PLD 1993 Lah. 452; Messrs Badruddin H. Mavani v. Government of Pakistan, Ministry of Food and another 1981 CLC 339;. Mirza Munawar Ahmad and another v.…