Law: Companies Ordinance, 1984

Section: 306 , 309 , 128 , 137

Companies Ordinance (XLVII of 1984)--- ----Ss. 306 & 309---Contract Act (IX of 1872), Ss. 128, 137 & 140---Guaranteed debt becoming due---Default of principal debtor to perform his duty under guarantee---Liability of surety---Extent---Petition for winding up against defaulting company when competent---Liability of surety would be co-extensive with that of principal debtor unless otherwise provided by contract---Respondent company could not be heard to say that since sub-contractor had furnished Bank guarantee and mobilization advance had been granted on basis of said guarantee, petitioner could not seek winding up of company for its inability to pay debt-- Mere forbearance on part of creditor to sue principal debtor or to enforce any other remedy against him would not in absence of any provision in guarantee to the contrary, discharge surety---Remedy to surety on performance of his obligation against principal debtor has been provided in terms of 5.140, Contract Act, 1872---Liability of surety, however, would not come to an end simply for the reason that debtor had furnished some other security or guarantee for repayment of debt---After executing irrevocable and unconditional guarantee for repayment of advance on petitioner's first demand without any reference to principal debtor and notwithstanding any contest by said debtor, respondent (Company desired to be wound up) had hardly any case to say that it was not liable to pay any debt particularly when said guarantee was confirmed   in writing---Company in question, being unable to pay its debt, circumstances of case would fully justify to hold that it was just and convenient to direct winding up of company---Company was thus, ordered to be wound up. National Bank of Pakistan v. Muhammad Tufail PLD 1975 Kar. 671; M.A. Qadir Khan v. Bank of Bahawalpur PLD 1984 Kar. 211; PLD 1975 Kar. 671; Habib Bank Limited v. Waheed Textile Mills Limited PLD 1989 Kar. 371; PLD 1971 Kar. 597; PLD 1986 Kar. 409; PLD 1992 Kar. 249; 1993 CLC 1540; Pakistan Industrial Credit and Investment Corporation v. Kalyal Kashmir Tenneries 1995 CLC 1483; Ali Woollen Mills v. Industrial Development Bank of Pakistan PLD 1990 SC…