Law:

Section:

Civil Procedure Code (V of 1908)--- ----O.XXXVII, Rr.l, 2 & 3--Suit for recovery of amount---Suit for recovery of amount was filed by plaintiff-Company against defendants in respect of amount recoverable from defendants under two Performance Bonds---Bonds issued by plaintiff company in favour of WAPDA on behalf of defendants in consideration of which defendants executed and delivered counter=guarantee to plaintiff---Defendants also executed and delivered Demand Promissory Note in favour of plaintiff to the extent of amounts of said performance Bonds­--Application for leave to appear and defend suit not filed within prescribed period of 10 days, but filed after more than 3 months, was dismissed being barred by time and suit was decreed in favour of plaintiff and against defendants by Trial Court---Claim of plaintiff in respect of disputed amount and execution of Performance Bonds and Demand Promissory Note was not denied by defendants, but main ground on which decision of Trial Court was challenged, was that WAPDA having blacklisted plaintiff/respondent ­Company, plaintiff company was not entitled to recovery amount sued for--­Merely because plaintiff-Company was blacklisted by WAPDA for purpose of acceptance on behalf of defendants any guarantee or surety bonds in future, plaintiff company would not become non-existent or was debarred from continuing business--Act of blacklisting plaintiff-Company would not have legal consequences of relieving defendants from their liability to pay amount which had fallen due to them under Performance Bonds especially when WAPDA in its decision through which plaintiff-Company was blacklisted, had 41 issued a direction to enforce liability under Performance Bond already issued by plaintiff-Company---Trial Court, rightly found that defendants in their application for grant of leave to appear and defend suit had not made out any genuine or plausible defence---Trial Court in decreeing suit of plaintiff company having not committed any illegality, decision of Trial Court could not be interfered with in appeal. JUDGMENT This appeal by defendants is directed against judgment and decree dated 21-3-1990 passed by learned Addl.…

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