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1985 MLD 411

NEW JUBILEE INSURANCE COMPANY LIMITED vs Messrs ULBRICHT'S (PAKISTAN)

Citation1985 MLD 411
CourtSindh High Court
Judge(s)k.A Ghani
ResultOrder accordingly

' This is a suit for recovery of Rs,1,71,085 filed under Order XXXVII, C.P.C. By the plaintiff against the defendant. The suit is based upon four cheques which when presented were returned dishonored with the remarks "Not arranged for", "Exceeds arrangement".

2. The defendant has filed an application under Order XXXVII, rule 3, C.P.C. Praying therein that they may be allowed to defend the suit unconditionally for the reason mentioned in the affidavit. The defendant was served with the summons in the prescribed form on 26th April, 1984 but the abovementioned application was not filed until 25th September, 1984 i.e, much beyond the period prescribed by Article 159 of the Limitation Act.

' An application under section 151 C.P.C. Dated 12-9-1984 appears to have been moved by the defendant for granting extension of one month for filing written statement on the plea that the advocate for the defendant had gone out of the country and that the defendant in view of Eid Holidays had not been in contact with his said Advocate since his arrival.

3. This order would dispose of both the abovementioned applications filed by the defendant.

4. In support of the application for grant of permission to appear and defend the suit the learned counsel for the defendant conceded that the said application is barred by time. He however submitted that the defendant delivered to the plaintiff pay order, dated 6-2-1984 for Rs,50,000 but the same has not been encased and thus the plaintiff has not come to the Court with clean hands.

' Mr. Liaquat Merchant, Advocate for the plaintiff however submitted that the said pay order was encased on 30th September, 1984. Mr. Muhammad Nasim, the learned counsel for the defendant in view of the above statement submitted that in any case the plaintiff would not be entitled to payment of any interest on the sum of Rs,50,000 from 6-2-1984 when the Pay Order was delivered to the plaintiff but was not encased for any valid reason. To this proposition Mr. Liaquat Merchant frankly conceded.

' No other point was urged by Mr. Muhammad Nasim, Advocate who however requested that the defendant may be allowed to pay the decrial amount in installments.

5. Before concluding it may be observed that the application made by the defendant under section 151 C.P.C. For extension of time to file written statement was misconceived. The defendant was not entitled to file written statement without first obtaining leave of the Court to appear and defend the suit.

' The referred application made for granting time to file written statement is accordingly rejected as not maintainable.

6. The application made under Order XXXVII, rule 3, C.P.C. Being time barred and disclosing no tribal issue is also dismissed. The plaintiff would thus be entitled to a decree. Since however the plaintiffs admit that pay order, dated 6-2-1984 for Rs,50,000 was received by them prior to the filing of the suit and that the said pay order has since then been enhanced, the defendant is entitled to be given adjustment for the said amount.

The suit is accordingly decreed against the defendant for Rs,1,21,085 with proportionate costs and interest at the rate of 14% per annum from the date of the suit till payment.

7. As earlier noted, before passing of the decree Mr. Muhammad Nasim, Advocate on behalf of the defendant prayed that the decrial amount may be allowed to be paid in installments. The defendant has not raised any vexatious plea. On the contrary the defendants has shown its bona fides by making payment of Rs,50,000 by pay order even before the suit was instituted but for which no adjustment was given to it. In my opinion in the circumstances it is a fit case in which the defendant is entitled to grant of indulgence prayed for. Accordingly the defendant is allowed to make payment of the decretal amount in monthly installments for Rs,20,000. The first installment shall be payable on or before 1-12-1984. Every installment thereafter shall be paid on or before 1st day of each succeeding month. In case of default in payment of any two installments within the time fixed as above the balance amount then due under the decree shall become payable forthwith.

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