Law:

Section:

Modaraba Companies and Modarabas (Flotation and Control) Ordinance (XXXI of 1980)--S.30---Suit for recovery of money---Director of Company was also arrayed as defendant not as mortgagor or guarantor, but as real beneficiary---Plea of Director not to be liable for facility provided to Company---Validity---Defendant-Company was a legal. entity and juristic person, to whom facility was granted---Liability of Director could, in no way, be created in such transaction---Suit against Director was dismissed in circumstances. Ladli Prasad Jaiswal v. The Kanial Distillery Co. PLD 1965 SC 221 ref. JUDGMENT MIAN SAQIB NISAR, J.---Through an agreement, respondent No.1 awarded a modarba finance facility to respondent No.2/Ravi Enterprises (Pvt.) Ltd. Subsequently, for non-discharge of liability by the borrower, the said respondent brought a suit for recovery of Rs.6,076,103 under the Provisions of Modaraba Companies and Modarabas (Floatation and Control) Ordinance, 1980 before the Chairman Modaraba Tribunal, Punjab, Lahore, in which, the present appellants have been arrayed as defendants, but not as the guarantors nor the mortgagors of the said loan, rather, as the real beneficiaries. The appellants, inter alia, applied for the grant of leave to appear and defend the suit on the ground that they are not liable, which application has been rejected through the impugned judgment. Hence this appeal. 2. Learned counsel for the appellants contends that respondent No.2 is a Private Limited Company and is a juristic person and a legal entity. Resultantly, for any liability incurred by the Company, the appellants as the Directors of the Company are not liable to discharge the same. It is further submitted that in the Banking Tribunal Ordinance, 1984 and the Banking Companies (Recovery of…

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