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

Section: 4(3) (4)

Banking Companies (Recovery of Loan) Ordinance (XIX of 1979)--- ----S. 4(3) & (4)---Civil Procedure Code (V of 1908), O.XXXVII, R.3---Suit for recovery of Bank loan in summary jurisdiction---Dismissal of suit on ground of limitation---Validity---Bank had issued notice to borrower for re-payment of loan---Effect---Liability of borrower to repay loan was revived on notice being issued to him by plaintiff bank in terms of S.4(3). Banking Companies (Recovery of Loans) Ordinance, 1979, for by giving such notice loan would become lawfully due---Creditor bank would acquire such rights, including right to file a suit for recovery of loan in a competent Court as creditor bank possessed in case of any other lawfully due or lawfully outstanding loan---Order and decree of Banking Tribunal dismissing suit on ground of limitation was set aside-- Suit was remanded to Banking Tribunal for decision afresh in accordance with law. Allied Bank of Pakistan Limited v. International Commercial Agency and others 1988 M L D 2285 rel. Abdul Sattar Pinger for Appellant. Abdul Razaq Puri for Respondents. Date of hearing: 30th January, 1991. JUDGMENT SPED HAIDER ALI PIRZADA, J.---This appeal under Section 12 of the Banking Companies (Recovery of Loans) Ordinance, 1979 has been filed against the .judgment and decree dated 12-12-1985 passed by the Presiding Officer, Special Court (Banking) for Sindh at Karachi. The facts leading to the filing of the above appeal are that the appellant filed a suit against the respondents for recovery of an amount of Rs.5,72,724.47 under Order XXXVII of the Code of Civil Procedure. The case of the, appellant, as set out in the plaint, was that at all material times the respondent No.1 had and still has an account No. 561 with the Rampart Road Branch of the Commerce Bank Limited. After nationalization of Banks in Pakistan with effect from 1-1-1974, the said Commerce Bank Ltd. was merged with assets and liabilities with United Bank Limited with effect from 1-1-1975 and as a result the aforesaid account stood transferred to and is now   with the appellant-Bank. At the request of the respondents, the said Commerce Bank Limited granted over…