Law:

Section:

Banking Tribunals Ordinance (LVIII of 1984) Ss.10 & 11 Suit for recovery of loan against principal company and the guarantors Leave to defend the suit Grant of Banking Tribunal having not found the defendant's separate reply as satisfactory or disclosing good defence, decreed the suit No personal guarantee was available from the defendant to secure the finance availed by the principal debtor under the financing agreement nor there was on the record any concurrence given by the defendant for the liability of the company under the financing agreement Serious and bona fide defence to the suit having been disclosed in circumstances, unconditional leave to defend the suit was granted by the High Court. JUDGMENT JAWWAD S. KHAWAJA, J. This appeal filed by Jehanzeb Burki (appellant defendant) impugns the judgment and decree dated 25 4 2000 passed by the learned Banking Court II, Lahore. The facts necessary for the disposal of this appeal are relatively straightforward. The Regional Development Finance Corporation (RDFC) which is respondent No. 1 in this appeal filed a suit for recovery of Rs.26,72,571 against the appellant and three others namely, Messrs Shaafi Woolen Industries Ltd. (respondent No.2) (hereinafter referred to as the defendant company), Aurangzeb Shaafi Burki (respondent No.3) and Messrs Alpha Insurance Company Ltd. (respondent No.4). The defendant company had been sued as principal debtor while the remaining three defendants including the appellant were sued as guarantors on the basis of guarantees executed by them to secure the liabilities of the defendant company owed to R.D.F.C. 2. The suit was filed before the Banking Tribunal, Lahore, under the provisions of the Banking "Tribunals Ordinance, 1984. The Banking Tribunal issued show cause notices to the defendants, which were replied to separately by the defendants including the present appellant. The learned Banking Tribunal did not find the appellant's reply to be satisfactory or as disclosing a good defence to the suit. As a result a decree for the amount of Rs.11,72,571 was passed against the appellant and the other three defendants jointly and severally with costs. It is this decree, which…

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