Law:

Section:

(a) Contract Act (IX of 1872)-------S. 62---Novation of contract---Effect---Performance of original contract when can be dispensed with---Where only one of the parties to the contract alleges novation or alteration in the original contract but fails to establish the same, the parties to the contract are not absolved of the liability and obligation under the original contract---Substitution or novation of the contract takes place only by mutual consent of the parties. The Central Bank of India Ltd. v. Muhammad Islam Khan PLD 1962 SC 251; Messrs Jugotekstil Impex, 61001, Lubijana Yugosalavia v. Messrs Shams Textile Mills Ltd. 1990 MLD 857 and Mrs. Mussarat Shaukat Ali v. Mrs. Safia Khatoon 1994 SCMR 2189 rel. (b) Contract Act (IX of 1872)--- ----Ss. 128 & 133---Liability of surety---Variance in terms of contract--­Effect---Provisions contained in S.133, Contract Act, 1872, gives discharge to the surety from any added liability subsequent to or caused as a result of change or alteration in the original terms settled between the parties. (c) Banking Tribunals Ordinance (LVIII of 1984)--- ----S. 5---Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997), S.15---Civil Procedure Code (V of 1908), O.XXXIV, Rr.l & 2---Suit for recovery---Credit facility on mark-up basis--­Award of mark-up on decretal amount---Plaintiff/Bank paid suit amount in relation to 7 bills of exchange till filing of the suit---Plaintiff/Bank could not claim any mark-up on the amount of bills which had rightly been converted into Pakistani currency on the respective dates of maturity---Subsequent payments made by the plaintiff/Bank in relation to the remaining bills of exchange could not be taken into consideration in the suit, since the amount of such bills had not become due on the date of filing of the proceedings--­Plaintiff/Bank might have filed separate proceedings for recovery of the amount which became due during the pendency of the suit---Suit was decreed accordingly, with mark-up and excise duty. United Bank Limited v. Central Cotton Mills Ltd. 1999 CLC 1374 and Muslim Commercial Bank Ltd. v. Messrs Over Impex 1994 CLC 1 ref. ORDER The plaintiff's…

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