Law:

Section:

Banking Companies (Recovery of Loans) Ordinance (XIX of 1979)----- ----Ss. 6 & 7---Civil Procedure Code (V of 1908), O.XXXVII, R. 2---Suit for recovery of loan under summary procedure---Non-service of process on borrower as required by OXXXVII, R.2, C.P.C.---Failure of borrower to apply for permission to appear and defend---Effect---On filing suit for recovery of loan by Bank, Court instead of issuing notice to borrower as required under Order XXXVII, R.2, C.P.C. issued notice under Order :V, R.5, C.P.C. for settlement of issues or for final disposal of suit---Suit filed by Bank against borrower ,could not be decreed on ground that borrower had failed to apply for leave to defend suit because notice or summons were not issued to him in accordance with Order XXXVI1, R. 2, C.P.C. JUDGMENT On 13-4-1977, M/s. Habib Bank Limited filed a suit under Order 37, C.P.C. for the recovery of Rs.2,930 against Harz Muhammad Bashir appellant in the Court of the learned District Judge, Sargodha. Since despite service of summons, the defendant-appellant failed to appear before the trial Court, therefore, he was ordered to be proceeded against ex parte, vide order dated 1-6-1977, and, the case was adjourned to 7-6-1977. On 7-6-1977, the learned District Judge, decreed the suit. on the ground that the defendant-appellant having not appeared and sought leave to defend the suit the plaintiff-bank was entitled for payment of Rs.2,930es prayed. 2. Before me, the…

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