Law: Civil Procedure Code (V of 1908)

Section: OXXXVII, R.3

Civil Procedure Code (V of 1908)---OXXXVII, R.3--Leave to defend the suit--Merits of the case could not be gone into in petition for leave to defend--Fact that A was the Promoter Director of the Company and that he acknowledged the liability on behalf of the petitioners was not denied--Order passed by High Court allowing application for leave to appear and defend suit subject to the furnishing of Bank Guarantee and for the remaining amount furnishing of a security bond, held would not call for any interference at intermediary stage.JUDGMENT SHAFIUR RAHMAN, J--The petitioner, a defendant in a suit instituted under Order XXXVII of the Code of Civil Procedure, for recovery of Rs.9,50,6-16.61 seeks leave to appeal against the judgment of the Lahore High Court, dated 31-5-1989, whereby the order of the trial Court placing conditions to be satisfied for defending the suit, were modified. 2. The respondent instituted a suit under Order XXXVII, C.P.C. against the petitioner. The suit was based on a letter, dated 7th of September, 1983 on the letter pad of the petitioner, in the following words:- "Sararoh Services (Pvt.) Ltd. Home Office: STADIUM ROAD, SAHTWAL (Pakistan) P.O. Box No.108 Telegram "SARG ROH (0441) 4150. September 7,1983. M/s. Hoechst Pharmaceuticals Ltd., KARACHI. Dear Sir, As per discussion with Mr. Grieve on 31-8-1983, we confirm that we issued Cheque No.180890 for Rs.1,00,000 to clear Invoice No.645 and Invoice No.624 of M/s. Dureshi Farms and Agro Aids respectively (Rs.10,744.50 and Rs.89,255.50), therefore, we are responsible for this payment. Regarding rescheduling of clearance of outstanding, we assure to clear the maximum by 31st December, 1983. We are sorry that as per our previous letter dated April 5, 1983, we could not make payment by 30th June, 1983, due to some recovery problems. Thanking you, Yours faithfully, for SARGROH SERVICES LIMITED. Sd/- (ASIF SHARIF):" In contesting this the petitioners took up the plea as hereunder:- "That Asif Sharif named as defendant No.2 in the title suit is neither managing director of the defendant Co. Sargroh Services Ltd.…

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