Law: Banking Companies (Recovery of Loans), Ordinance, 1979

Section: 6 , 7

Banking Companies (Recovery of Loans) Ordinance (XV of 1979)---- ----S.s 6&7---Civil Produce Code (V of 1908) O.XXXVII Rr. 1&2  Suit for recovery of loan---Principal amount as claimed by plaintiff-Bank to be outstanding against defendants was admitted by defendants---plaintiff-Bank claimed that interest chargeable from chargeable from defendants was at the rate of 4 % over the rate published by State Bank of Pakistan with a minimum of 10% per annum--- Plaintiff-Bank having failed to prove rate of interest as claimed by it it would be entitled to simple interest at rate of 10 % as mentioned in promissory Note from date of filing of suit till recovery. Habib Bank Limited v. Muhammad Hussain and others PLD 1987 Kar. 612 Messrs United Bank Limited v. Messrs Manbrow Industries and others 1987 MLD 3038 and Grindlays Bank Ltd. V. Delite House Ltd. And 4 others PLD 1987 Lah. 51 ref. A.Sattar Pinjar for plaintiff. A.Mujeeb pirzada for Defendants. Date of hearing 31st August 1989. JUDGMENT This is a suit for recovery of Rs. 17,62,712.05 filed by United Bank Limited Karachi. Plaintiffs case is that the defendant No. 1 had an account with the plaintiffs Branch at Saleh Muhammad Street Karachi. At the request of the defendants the plaintiff granted to defendant No. 1 an O.D facility/Loan which was fully utilized by defendant No. 1 as described in the statement of account and confirmed by the defendant No. 1 as described in the statement of account and confirmed by the defendant No. 1 by letter dated 15-5-1972. The defendant No. 1 executed and delivered to the plaintiffs a demand pro-note dated 17-10-1992 for Rs 15,26,189.54 along with 2 letters each dated 17-10-1972 Defendant also executed an agreement of hypothecation pledge of goods belonging to him and furnished a statement of stock/goods and the last statement submitted by defendant No.1 on 27-3-1975 confirmed that goods worth Rs. 22,32,310.51 were held by him in the name and for the account of the plaintiffs.   Defendants NO.s2 to 5 in their individual/personal capacities guaranteed repayment of the amount of O.D. facility/loan advanced by the plaintiffs to defendant No.1 including interest and…