| Case ID |
398f41fd-9e83-4bb3-af69-76a0ce421d4a |
| Body |
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| Case Number |
Suit No.552 of 1993 |
| Decision Date |
Feb 10, 1998 |
| Hearing Date |
|
| Decision |
The court ruled in favor of the plaintiff, Messrs H. B. LTD., granting a decree for the recovery of Rs.25,60,09,486.14, along with interest at the rate of 18% per annum from the date of institution of the suit until payment. The court found that the defendants' arguments regarding the limitation of the suit and the absolvement from guarantees were not substantiated. The plaintiff's claims were deemed to be valid and supported by the statement of account, thereby leading to a final mortgage decree for the sale of the mortgaged property as detailed in the mortgage deed. |
| Summary |
This case revolves around the recovery of a substantial loan amount claimed by the plaintiff, H. B. LTD., against the defendants, including Messrs KARIM COTTON MILLS and several guarantors. The plaintiff sought recovery under various accounts totaling over Rs. 25 million, supported by mortgage deeds and legal provisions under the Banking Companies Ordinance and the Limitation Act. The court examined the claims of limitation raised by the defendants, asserting that these were unfounded due to the acknowledgment of debts in prior mortgage agreements. The ruling emphasized the continuous liability of the defendants under the guarantees they provided, leading to a decree that holds them accountable for the repayment of the loan with interest. The decision reflects the court's strict adherence to financial accountability and the legal frameworks governing loan recovery, ensuring that the plaintiff's rights are upheld while clarifying the conditions under which guarantees are enforceable. |
| Court |
Sindh High Court
|
| Entities Involved |
Messrs H. B. LTD.,
Messrs KARIM COTTON MILLS
|
| Judges |
MUSHTAQ AHMAD MEMON, J
|
| Lawyers |
Hamid Hussain,
Salman Hamid,
Shahanshah Hussain,
Gulzar Ahmed
|
| Petitioners |
Messrs H. B. LTD.
|
| Respondents |
Messrs KARIM COTTON MILLS and others
|
| Citations |
1998 SLD 1435 = 1998 CLC 1403
|
| Other Citations |
Deputy Custodian of Enemy Property v. Karachi Electric Supply Corporation Ltd. 1986 CLC 2808
|
| Laws Involved |
Banking Companies (Recovery of Loans) Ordinance, 1979,
Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997,
Limitation Act, 1908,
Civil Procedure Code, 1908
|
| Sections |
7(2),
14,
57,
133,
O.XXXVII, R.3,
O.XXXIV, R.5
|