MUHAMMAD ILYAS, 3.-1. The Official Liquidator has invited my attention to order, dated the 11th April, 1984 passed by my learned brother Muhammad Afzal Lone, J. It reveals that Mr. Mushtaq Ahmed Khokhar, who was Managing Director of the defunct Finance Company, namely, Worldwide Commercial Finance Limited, had undertaken to deposit Rs. 3,00,000 with the Official Liquidator for the time being. It was submitted by his learned counsel that Mr. Mushtaq Ahmed Khokhar will pay a sum of Rs. 50,000 to the Official Liquidator by 30th May, 1984 and the remaining sum of Rs.2,50,000 by 30th September, 1984. My learned brother allowed the payment to be made accordingly. Mr. Mushtaq Ahmed Khokhar however, did not pay a penny in pursuance of the above arrangement.
He was also directed to furnish bail bond in the sum of Rs. 500,000/- within a fortnight, to the satisfaction of the Deputy Registrar (Judicial) of this Court, to the effect that he shall deposit with the Official Liquidator a sum of Rs.3,00,000 according to the above schedule and also satisfy all the claims verified by the Official Liquidator/Court but the said bond too was not furnished by him. He was further directed to attend this Court on every date of hearing unless his appearance was exempted but he did not appear on some subsequent dates for which the case was fixed. It was with great difficulty that his attendance was procured by issuing bailable warrants for his arrest. In the circumstances, the Official Liquidator and learned counsel for the State Bank of Pakistan suggest that he may be sent to prison under section 55 of the Code of Civil Procedure read with section 78 of the Banking Companies Ordinance, 1962.
2. Mr. Aman Ullah Khan, D.S.P., F.I.A, complains that Mr. Mushtaq Ahmed Khokhar is in the habit of changing his places of residence. His apprehension is that on going away from the Court he will again absent himself from this Court and it will be extremely difficult, if not impossible, to get hold of him.
3. On inquiry, Mr. Mushtaq Ahmed Khokhar has not expressed any desire to make payment of the aforementioned sum today or in the near future.
4. In his C.M. No. 337-L/80, filed on 23rd September, 1980, Mr. Mushtaq Ahmed Khokhar, undertook to satisfy all claims. In other words, he had agreed to clear the entire outstanding liability of the defunct company. To start with, he had undertaken to deposit Rs. 3,00,000 according to the schedule spelt out in the order, dated the 11th April, 1984 but he did not make any payment. He also disobeyed the order of the Court regarding furnishing of bail bond and absented himself from this Court in violation of the clear direction to the effect that he shall enter appearance on all dates.
Special efforts had, therefore, to be made to bring him back before this Court. It is apprehended that he will again stop appearing before this Court with a view to avoiding the liability already admitted by him. I am, therefore, not inclined to show any indulgence to him. To my mind, it is a fit case for sending Mr. Mushtaq Ahmed Khokhar to the prison. If he is sincere in making the requisite payment he will be able to come out of the prison in no time. According to the above provisions of law, if he clears his liability he will be released at once.
5. I, therefore, direct that Mr. Mushtaq Ahmed Khokhar be detained in prison to suffer simple imprisonment for one year. He shall, however, be released as soon as the sum of Rs. 3,00,000 is paid by him or anyone else on his behalf.
6. The Official Liquidator is directed to verify the claims and determine total liability of the defunct company and submit report in this behalf on 27th May, 1985. Further order regarding ex- management will be made on the receipt of his report. Ex-Directors who are present shall enter appearance on the said date also. If Mr. Mushtaq Ahmed Khokhar is not released till then, he shall be produced before this Court on above date.