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

Section: 10

(a) Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997)--S.10--Leave to defend suit---Applicant-defendant according to record had neither any connection with finances availed by other defendants nor had executed any guarantee or other security documents in favour of Bank--­Memorandum of deposit of title deed recording deposit of original property documents with Bank was not signed by such defendant---Held, application of such, defendant seeking leave to appear and defend suit merited acceptance and he was entitled to contest suit filed by Bank as a regular long cause. (b) Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act XV of 1997)--- ----Ss.10, 15 & 21---Contract Act (IX of 1872), Ss.127 & 144---Decree for recovery of loan amount after dismissal of application for leave to defend suit---Appellant after admitting his signatures on personal guarantee and memorandum of title deed executed in favour of Bank contended that he signed such documents to secure house loan obtained by him from Bank as its employee; and that if personal guarantee was not accepted to be in respect of house loan, then same was unenforceable against him in view of S.144 of Contract Act,' 1872---Validity---Appellant had not placed on record either application for alleged loan or order of Bank sanctioning such loan---Execution of guarantee and deposit of original title deed would have followed: the sanction of a loan and could not have preceded same---Guarantee executed by appellant secured third party obligations, thus, there was no occasion for execution of guarantee by him to secure repayment of his own financial obligations to Bank---Appellant was Assistant Vice-President of Bank and was not layman unaware of legal implications of a personal guarantee---Instrument of guarantee did not contain any stipulation of the nature set out in S.144 of Contract Act, 1872---Banking Court had rightly dismissed leave application and passed impugned decree---High Court dismissed appeal. Muhammad Asghar and 5 others v. Mst. Jamila 'Chatoon 1979 CLC 367 ref. JUDGMENT JAWWAD S. KHAWAJA, J.---This appeal impugns the judgment and decree…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492