Law:

Section:

(a) Banking Companies (Recovery of Loans) Ordinance (XIX of 1979)--- ---S.2--Suit in summary jurisdiction--Party would be entitled to approach a Court of law on basis of the forum available to it on the day when legal proceedings were filed. (b) Banking Companies (Recovery or Loans) Ordinance (XIX of 1979)---S.2--Constitution of Pakistan (1973), Art.185(3)--Suit for recovery of loan-­High Court acting as a Special Court should have given adjustment of the value of mortgaged property while fixing the amount of security in respect of petitioner company--Special Court was directed to give adjustment of the value determined against the security amount fixed for petitioner company--Appeal was disposed of in terms of remand order. ORDER AJMAL MIAN, J.--Leave to appeal is sought from an order dated 29-3-1989 passed by a learned Single Judge of the High Court of Sindh while acting as a Special Court under the Banking Companies (Recovery of Loans) Ordinance, 1979, hereinafter referred to as the Ordinance, in Suit No.76 of 1988 filed by the respondent against the petitioners for the recovery of Rs.88,01,033 under the Ordinance, granting conditional leave to the petitioners to defend the suit on furnishing security of Rs.88,00,000 by petitioner No.1 and security of Rs.20,00,000 each by petitioners Nos.2 and 3. 2. The facts to be noted are that petitioner No.1 obtained a loan of Rs.50,00,000 from the respondent for purchasing the machinery and equipments for setting up a plant for manufacture of fibre board, paper board, box board and cartons for packing. Petitioners Nos.2 to 4 jointly and severally agreed to provide to petitioner No.1 over-runs of all expenditure for any cause whatsoever. They also provided a letter of over-runs guarantee dated 16-11-1982 to the respondent. They also guaranteed the payment of above loan amount to the respondent. The petitioner No.1 availed of the aforesaid loan and inter alia created a legal mortgage of the property mentioned in para 7 of the plaint. Since there was alleged default on the part of petitioner No.1, respondent after serving notices inter alia dated 11-8-1987 and 21-11-1987 filed the aforesaid suit for the recovery of the…

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