Law:

Section:

Civil Procedure Code (V of 1908)----------S. 20 (c)-Debt intended to be paid at Batala in India before Partition­--Creditor and debtor migrating to Pakistan-Suit for recovery of debt-Forum to be determined by, the general principle "Debtor must seek out Creditor". Where a debt was intended to be paid back at Batala in India before the Partition of India, but on Partition the parties migrated to Pakistan: Held, that the position seems to have developed into that of a case where no place of payment is fixed, as far as the parties resident in Pakistan are concerned. And the general rule should apply in such a case that the debtor should seek his creditor to pay his debt, if the creditor happens to be within the realm. On this view, a part of the cause of action must be deemed to arise where the payment had to be made in discharge of the personal obligation of the debtor, i.e., at the place where .the creditor bank carries on' business. JUDGMENT S. A. RAHMAN, J.-The Australasia Bank, Limited, Lahore, brought a suit for recovery of Rs. 2,833-4-0 by way of principal and interest, with future interest at 7½ per cent. per annum with monthly rests, from the National Imperial Foundry, G. T. Road, Batala, through Zia-ud-Din who was now resident at Okara in the Montgomery District. The sum was due on a cash credit account allowed by the plaintiff bank to be opened at its Batala Branch for the benefit of the defendant, before the partition of India. After Partition, the Batala Branch of the Bank was closed and the defendant also migrated to Pakistan and settled at Okara. It appears that originally the parties intended that the debt should be discharged at Batala. By way of security, the defendant had executed an agreement of hypothecation of his movable property in the Foundry at Batala, and collateral security was also given in the shape of a' promissory note executed by him. The Bank, however, had its registered office in Lahore. The trial Court held that it had no jurisdiction to entertain the' suit as the place of per­formance of the contract was Batala. The plaintiff has challenged the order of the trial Court by this revision petition. It appears to be common ground…

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