Law:

Section:

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--------S. 19---Contract Act (X of 1872), S.128---Constitution of Pakistan (1973), Art.185(3)---Execution of decree---Liability of guarantor--Petitioner being guarantor was aggrieved of execution proceedings initiated against him---Plea raised by the petitioner was that before first proceeding against the principal debtor, no proceedings should have been initiated against him---Validity---Having given undertaking regarding guarantee, it was not open for the petitioner to wriggle out of it and raise such plea---Liability of surety under S.128 of Contract Act; 1872, was co-extensive with that of the principal debtor, unless it was otherwise provided by the contract--In absence of any specific stipulation in the contract of loan or any other consideration of equity a guarantor could not take up the plea as raised by the petitioner---Bank had granted loan only on the guarantee and in absence of letter/contract of guarantee the bank might not have sanctioned the loan---Leave to appeal was refused. Ghulam Mustafa. Jatoi v. Additional District and Sessions Judge/Returning Officer, N.A. 158 Naushero Feroze and others 1994 PSC 751 and The Bank of Bihar Ltd., v. Dr. Damodar Prasad and another AIR 1969 SC 297 distinguished. United Bank Ltd. v. Haji Bawa Company Ltd. and 3 others 1981 CLC 89; National Bank of Pakistan v. F.S. Aitzazuddin and 2 others PLD 1982 Kar. 577; Messrs. U.B.L. v. Messrs Sindh Tech. Industries Ltd. and others 1998 CLC 1152; Mrs. Muhammad Shafi through Agent v. Sultan Ahmed 2000 CLC 85 and Habib Bank Limited v. Malik Atta Muhammad and 4 others 2000 CLC 451 ref. JUDGMENT TASSADDUQ HUSSAIN JILANI, J.---Petitioner seeks leave to appeal against the order dated 14-11-2002 passed by Lahore High Court, Lahore vide which petitioner's appeal against the order dated 17-9-2002 passed by learned Special Judge Banking through which petitioner's objection petition in execution proceedings was dismissed. 2. Facts in brief are that respondent-Bank's suit for recovery of Rs.38,51,238.70 was decreed vide judgment/ decree dated 13-5-1998. In execution proceedings petitioner filed an objection petition…

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