Law:

Section:

Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001)--- ----Ss. 9, 17 & 19---Civil Procedure Code (V of 1908), S.12(2)---Suit for recovery of loan amount---Plot leased out by lessor in favour of borrower-company for setting up joint venture---Company obtained loan from Bank by mortgaging leased plot---Execution of consent decree obtained by Bank against company in suit---Application under S.12(2), C.P.C., by lessor that leased plot could not be sold out in execution of decree as company had no saleable and marketable interest therein---Plea that company before mortgaging plot had obtained `No Objection Certificate' from lessor---Validity---Lessor being a shareholder and Director in company would be legally bound by contracts, acts and deeds executed and performed by and on behalf of company---Lessor could not be heard to say that he was not impleaded in suit---Lessor could not make out a case of commission of fraud, misrepresentation or want of jurisdiction on the part of company, when suit was decreed in favour of Bank---Application under S.12(2), C.P.C. was dismissed in circumstances. JUDGMENT RANA BHAGWANDAS, J. --- This petition has been pending for the last more than two years and arises out of Sindh High Court, judgment dated 28-6-2004 passed in High Court Appeal against order of learned Single Judge of the Sindh High Court dismissing -Petitioner's application under section 12(2) .of the Code of Civil Procedure, 1908. 2. -Petitioner-Pakistan Steel Mills Corporation vide letter of allocation dated 1-1-1990 allocated industrial Plot No.DSU-19 measuring 5.00 acres to -Respondent No.2 for establishment of an industrial unit in the Downstream Industrial Area for a period of 60 years. The -Petitioner received a sum of Rs.3.06 million by way of lease amount from -Respondent No.2 with the stipulation that after construction of the industry on the plot with the approval of the lessor a lease deed would be duly executed. -Respondent No.2 obtained financial facility from -Respondent No.1-PICIC for setting up industrial unit and mortgaged the property with them as security for repayment of the finance. On failure of -Respondent No.2 to discharge…

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