Law:

Section:

(a) Constitution of Pakistan (1962), Art. 58(3)-Leave to appeal to Supreme Court-Granted to consider whether provisions of S.39, Industrial Development Bank of Pakistan Ordinance (XXXI of 1961) had been complied with. Leave was granted by the Supreme Court to consider:- (1) Whether the provisions of section 39 of the Industrial Development Bank of Pakistan Ordinance, 1961 which require that where a cause is shown by the opponent an enquiry should follow, had been complied with, and (2) whether the bank having become seized of full control of the company's affairs "with a stated objective which had yet to be achieved" could "suddenly assume a vis-a-vis position and enforce its claims as a matter of absolute obligation under the Ordinance". (b) Industrial Development Bank of Pakistan Ordinance (XXXI of 1961), Ss. 39(1)(7), (8) (9), 40 & 41-Methods provided for enforcing claim of Bank against industrial concern not "alternative"-Mere nomination of some trustees on Managing Board of concern does not amount to taking over of management of concern-Evidence Act (I of 1872), S. 115-Estoppel, waiver ­Mere acts of indulgence in commercial agreements do not constitute estoppel or waiver-No estoppel against statute-Sums paid by Bank in fulfilment of its guarantee on behalf of industrial concern deemed to be "loans" within meaning of S. 39 (1)-Word "loans" used in its popular sense-Investigation under S. 39 (8) not necessary where industrial concern raises no issue on fact and admits all obligations of default-Evidence Act (I of 1872), S. 103­Industrial concern confessing to defaults-Onus lies on such concern to prove waiver by Bank. The methods provided by sections 34, 40 and 41, Industrial Development Bank of Pakistan Ordinance, 1961, are not alternative methods of enforcing the claims of the bank. Section 40 itself indicates that the taking over of the management of the concern can be made notwithstanding anything contained in section 39. Thus it cannot be said that if action under section 39 is taken, action under section 40 cannot thereafter be taken. It is equally incorrect to say that if the management is taken over under section 40 then the provisions of section…

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