1. ' MAQBOOL BAQAR, J.---The instant suit has been filed on 19-3-2008 by a leasing company, under section 9 of the Financial Institutions (Recovery of Finances), Ordinance 2001 for recovery of Rs,84,305,575 and for sale of the mortgaged property.
2. ' The plaintiffs case, in brief, is that in the year 2003, the plaintiff had leased out 17 RI-ID Isuzu Model MT112-UV buses to National Police Foundation for plying the same in the vicinity of Karachi as National Police Foundation Inter City Bus Service but National Police Foundation failed to do so for any reasons whatsoever. Later on 19-3-2005, the defendant No,1 offered National Police Foundation to purchase complete fleet of National Police Foundation Intercity Bus Service consisting of 33 buses leased out by different leasing companies, amongst whom one was the plaintiff, who had leased out 17 Isuzu buses, as stated above. The defendant No,1 also undertook to be responsible for all the payment liabilities of National Police Foundation towards the relevant leasing companies in respect of the said buses on the terms and conditions as would be mutually settled and agreed between the defendant No, 1 . And the leasing companies for transfer of repayment liabilities of National Police Foundation to the defendant No, 1 and National Police Foundation replied the same through its letter dated 21-3-2005 and accepted the offer of the defendant No,1 subject to terms and conditions stated in the said letter. On 21-3-2005 and 24-3-2005, the defendant No,1 approached the plaintiff through his two letters with an offer for purchase of 17 buses (which the plaintiff had leased out to National Police Foundation in the year 2003) against transfer of repayment liabilities of National Police Foundation to the defendant No,1 on any terms and conditions and any sort of security/Surety/guarantee as and when the plaintiff would require from the defendant No,
1. The defendant No,1 submitted formal application for lease of financial lease finance facility, his National Tax Number Certificate and Basic Borrower's Facts Sheet to the plaintiff bank. The plaintiff accepted the request of the defendant No,1 and communicated to him its decision vide its approval letter dated 23-9-2005 stating the terms and conditions of the transfer of lease facility from National Police Foundation to defendant No, 1 . The plaintiff and the defendant No,1 entered into a Lease Agreement in respect of the Lease Transfer Facility on the terms and conditions set out in the agreement and approval letter dated 23-9-2005, whereby the plaintiff transferred the lease of 17 Isuzu air-conditioned buses along with all accessories to the defendant No,1 amounting to the lease value of Rs, 56,264,769. As per the Lease Agreement, the principal amount was to be repaid along with the mark-up by way of 60 monthly rentals, as prescribed in the aforesaid Agreement, and the Approval Letter dated 23-9-2005 (Annexure "D" to the plaint).
3. Thus the repayment liabilities of National Police Foundation were transferred to the defendant No,l.
4. In order to secure payment, as noted above, the defendant No,2 created an equitable as well as registered mortgage in favour of the plaintiff over his property being a plot of land bearing No, 2/A/14/D/IV, Sub Block "D", Block No, IV, Nazimabad, Karachi, measuring 584 Sq. Yds. Such was done through defendant No,1 being the attorney of defendant No,2. By way of confirmation of creation of equitable mortgage on behalf of the defendant No,2, the defendant No,1 also executed a Memorandum of Deposit of Title Deed, deposited, inter alia, the original title documents pertaining to the aforesaid plot with the plaintiff. In addition to the above security, the plaintiff interest was also secured by defendant No,1 by way of Demand Promissory Note dated 31-8-2005 (Annexure "I" to the plaint) and a Revival Letter. The defendant No,1 also executed a Personal Guarantee of the same date (Annexure "I-1" to the plaint) covering the amounts of plaintiffs claim, guaranteed payment of plaintiffs dues in respect of .The suit transaction. The lease finance facility was fully availed by the defendants. However, after payment of initial installment in the sum of Rs,2,04,000, the defendants failed to pay any amount towards rentals of the aforesaid buses. In fact the various cheques issued by the defendants towards payment of the finance amounts were dishonoured.
5. The plaintiff in the circumstances was constrained to repossess the leased vehicles. The same were auctioned publicly. Such sale could, however, fetch only Rs, 10,240,000 and thus till the filing of the suit an amount of Rs, 82,686,680 was due and outstanding against the defendants in terms of the Lease Agreement.
6. ' The leave to defend application filed by the defendants, belatedly, was dismissed for non- prosecution on 16-4-2010, as none appeared for the defendants on the said date and, as noted in the said order, on four earlier dates also. However, perusal of the defendants' application for leave to defend do not reveal any substantial defence. The only objection that was raised through the said application was that the leased vehicles were sold at throw away prices and thus the plaintiffs dues could not be satisfied fully. However, as pointed out by the learned counsel for the plaintiff, the leased vehicles were sold through a public auction and the notice of such auction was published in the newspapers daily "Nawa-e-Waqt" and "the News". In the circumstances, the plaintiffs suit is decreed as prayed.