Law:

Section:

(a) Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)------S. 9---Uniform Customs and Practice (for Documentary Credit Letters), (UCP 500), Art.2---Suit for recovery of bank loan---Agreements mentioned in letters of pledge not filed with plaint nor produced in evidence---Statement of account on letter head of plaintiff bank---Suit filed without statement of accounts---Effect---Documentary credit letter---Requirements of establishing existence of valid loan facility---Scope---Plaintiff-bank filed suit asserting therein that defendant company requested plaintiff for financial assistance and in response thereto two letters of credit were established whereby defendant No.1 was beneficiary that consolidated letter of pledge regarding stock was executed in favour of plaintiff that defendants Nos.2 & 3 were authorised vide resolutions of company to negotiate financial arrangements and sign documents; that as defendants Nos.2 to 8 signed letters of personal guarantee, therefore, executants were liable, severally and jointly, for liabilities of defendant No.1; that subsequently it was found that no stocks existed; that defendant No.1 being borrower was liable to pay liability as per terms of letter of credit---Defendants contended that amounts disbursed to defendant No.1 were on the request of opener of letter of credit: that defendant No.9 in order to ensure dispatch of goods, made letter of credit conditional; that correspondence as well as agreement between defendant No.1 and defendant No.9 revealed that pledge was created at desire of defendant No.9; that amounts disbursed were subject matter of Red Clause letter of credit, therefore, a beneficiary in such transaction was not personally liable;, that balance sheets of defendant No.1 did not reflect existence of any loan and that suit was not properly instituted---Validity---Assertions of plaintiff (bank) were not supported by any documentary evidence---Plaintiff witness in cross-examination had admitted that there was no sanction letter on record about disbursement of loan against pledge stocks and letters of personal guarantee of Directors and also that there was neither finance agreement…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492