Law: Civil Procedure Code (V of 1908)

Section: O.XXXVII,Rr.2,3

(a) Negotiable Instruments Act (XXVI of 1881)---Ss. 4 & 13---Civil Procedure Code (V of 1908), O. XXXVII, Rr. 2 & 3--- Suit for recovery of amount on basis of Call Deposit Receipts issued by Bank--Application for leave to defend suit---Plea of defendant-Bank was that plaintiff in collusion with its Ex-Manager had stolen such receipts and filled and completed same subsequently; that bank had lodged F.I.R. and filed suit for cancellation of such receipts; and that such receipts were not promissory notes, thus, suit was not maintainable---Validity---Bank had alleged plaintiff to be party to fraud and theft of such receipts---No consideration or payment with regard to such receipts had been made---Lodging of F.I.R. and filing of suit by Bank supported its plea---Fraud alleged by Bank was not merely a bald allegation--Allegation of fraud could not be determined summarily as same would need recording of evidence---When controversy needed its resolution through evidence, then grant of leave would be the right course---Leave application was accepted. Fine Textile Mills Ltd., Karachi v. Haji Umar PLD 1963 SC 163; National Bank of Pakistan v. Messrs Elegzender and Company and 2 others PLD 1987 Lah. 290; Messrs Bhera Food Grain Corporation and 9 others v. Muslim Commercial Bank 1987 CLC 1843; Messrs Chaudhri Textile Mills and others v. United Bank Limited 1987 CLC 1957 CLC 1957; Messrs United Bank Limited v. Messrs Okara Trading Company and others 1989 MLD 921; Messrs Bashir Engineering Industries and 3 others v. The Muslim Commercial Bank Ltd. and another 1988 CLC 941; Habib Bank Limited v. Mussarat Ali Khan PLD 1987 Kar. 86; Mian Rafique Saigol and another v. Bank of Credit and Commerce International (Overseas) Ltd. and another PLD 1996 SC 749; Zohair Akhtar v. Jawad Adil 2006 YLR 1510 and Messrs Ark Industrial Management Ltd. v. Messrs Habib Bank Limited PLD 1991 SC 976 ref. M. Sarwar Ghani v. Muslim Commercial Bank Limited 1989 ALD 34 and Abdul Malik K. Lakha through Legal Heirs v. Abdul Karim K. Kara PLD 2004 Kar. 399 rel. (b) Negotiable Instruments Act (XXVI of 1881)--- ----Ss.4 & 13---Civil Procedure Code (V of 1908), O. XXXVII, Rr.1 & 2--- Suit for…

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