Law: Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997

Section: 19(1)(a)

Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997)-------S. 19(1)(a)---Appreciation. of evidence---Misappropriation of hypothecated stock by the debtor---Prosecution had established that without clearing the amount due against the company, the hypothecated stock, which was kept as security for the loan, had been removed and sold without authority, consent and knowledge of the Bank---Such stock was in the possession and control of the company as such the company had misappropriated the stock---Prosecution had proved the case against accused beyond any reasonable doubt---No illegality or irregularity was found in the impugned and also no misreading or non-reading of evidence was there---Impugned order, in circumstances did not require interference.JUDGMENT RAHMAT HUSSAIN JAFFERI, J.-Brief facts giving rise to the present appeal are that on 9-9-1997 the complainant Agha Ziauddin Vice-president Cr MBL affairs wing, Treasury Division National Bank of Pakistan Head Office Karachi lodged the report before Deputy Director, F.I.A. Commercial Bank Circle Karachi stating therein that under section 47 of the Banking companies Ordinance, 1962 the State Bank of Pakistan prepared a scheme for amalgamation of Messrs Mehran Bank Ltd. with National Bank of Pakistan. Consequently, the National Bank of Pakistan took over all the branches of Messrs Mehran Bank Ltd. with its assets and liabilities. In the year 1992 .Messrs Mehran Bank Ltd. allowed running finance facility of Rs.14.830 Million and export running facility of Rs.77.571 million to Messrs Tawakkal Ltd. (Company) on the basis of markup on security of hypothecated goods, being raw material/finished goods/ spares/machine etc. Both the facilities were secured against hypothecation of stocks. The charge on the stock was created and registered with the Registrar Joint Stock Companies. The Company had fully availed the aforesaid facilities from the Mehran Bank Ltd. After expiry of finance facility, Messrs Tawakal Ltd. and its Directors failed to adjust the liabilities, in spite of repeated demands and requests made by the Bank in this regard. On 23-10-1996 total amount outstanding…