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

Section: 7,9,16

Banking Companies (Recovery of Loans, Advances, Credits and Finances) Ordinance (XXV of 1997)---Ss. 7, 9 & 16---Suit for recovery of loan---Suit having been decreed, defendant had filed appeal against of Banking Court in which he had claimed that he having resigned from the Directorship/Chief Executiveship of defendant-Company, was absolved of his liability as after his resignation he was no more guarantor---Execution of guarantee had not been denied by defendant/guarantor and only plea taken by him was that he had resigned from Directorship of defendant-Company---Guarantee executed by defendant had provided that guarantee would continue to be binding on him, and on his representatives in respect of the liabilities---Guarantee was executed by the defendant in his individual capacity and same was not conditional with the holding of his office as Director of defendant-Company--¬Nothing was on record to indicate than after his resignation he had revoked/ withdrawn said guarantee or that plaintiff¬-Corporation had cancelled same and had absolved the defendant of his liability as guarantor---Letter of guarantee being subsisting and valid, was enforceable---Banking Court, in circumstances, had rightly appreciated legal position while passing decree against the defendants---In absence of any illegality or perversity in and decree passed by Banking Court, warranting interference, appeal against the and decree of Banking Court was dismissed. ORDER TALAAT QAYYUM QURESHI, J.---M/s. Regional Development Finance Corporation filed suit against the appellant and 5.6thers for recovery of Rs.42,55,256 before Banking Judge-II, Peshawar. Having been served, appellant who was defendant No.2 in the suit filed application for grant of leave to defend the suit. The said application was dismissed and a decree for the claimed amount with cost of Rs.7,248 with future mark-up was granted in favour of respondent No.1 against the appellant and 5 others vide judgment and decree dated 25-9-2002. Being not satisfied with the judgment and decree passed against him, the appellant has filed appeal in hand. 2. Mr. Muhammad Asif, the learned counsel for the appellant argued that the appellant…

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