National Bank of Pakistan, the plaintiff brought this suit against United Cotton Mills Ltd., Faisalabad and five others on 16-9-1982 initially before the Special Judge (Banking), Lahore, for recovery of Rs.54.Gg.037.89 inter alia, by sale of mortgaged properties. The plaintiff has also prayed for interest at the rate of fourteen per cent per annum from 30-6-1982 till realization. This suit on promulgation of the Banking Companies (Recovery of Loans) Amendment Ordinance, 1983 stood transferred to this Court.
2. It has been asserted in the plaint that defendant No.l company requested the plaintiff-Bank's Civil Lines Branch, Faisalabad for affording loan facilities to it. Different loan facilities were thereupon sanctioned on the security of hypothecation of stocks in trade, pledge of goods and mortgage of property owned by defendant No.l. Defendant: Nos.2 to 6 also furnished personal guarantee for re-payment of the loan which may be availed of by defendants No.' l under the loan facilities afforded to it. The defendants executed the following documents to secure the debt:
(1) Demand promissory note, dated 1-11-1978 of the value of Rs.27,44,244.37 executed by defendant No.l in favour of the defendants Nos.2 to 6 and endorsed by the latter in favour of the plaintiff.
(2) Delivery letter, dated 1-11-1978 regarding the above demand promissory note.
(3) Form A (special), the agreement by the guarantors, dated 1-11-1978 and
(4) Registered deed of mortgage.
The defendants also delivered three letters to the plaintiff confirming the following amounts as outstanding against them as on 31-12-1978. These amounts have been detailed in the plaint as under---
(1) Pledge AccountRs.1,62,26,370.57
(2) Hypothecation Account Rs. 20,00,000.00
(3) Mortgage AccountRs. 28.67,045.59 Subsequently, on 17-1-1979, the defendants executed further documents in favour of the plaintiff as detailed in para 5 of the plaint.
3. According to the averments in the plaint, as on 7-8-1982, a sum of Rs.54,98,037.89 stood due from the defendants to the plaintiff on various scores. This amount, however, does not include interest for the quarter commencing 1-7-1982. Statements of accounts in support of the above claim duly certified as provided by the Bankers Books Evidence Act, 1891 have also been filed with the plaint along with other documents in support of the claim.
4. In para. 7 of the plaint, it has been stated that the defendants had agreed to pay interest et the rate of four per cent above the Bank rate with a minimum of fourteen per cent per annum with quarterly rests. On the basis of this averment interest on the suit amount has been claimed at the rate of fourteen per cent per annum with quarterly rests.
5. Vide orders of even date passed separately the applications for leave to appear and defend the suit made by defendants Nos.l and 3 have been dismissed.
6. The said applications having been dismissed the contents of the plaint stand established and accordingly this suit is decreed with costs in favour of the plaintiff-Bank and against the defendants for recovery of Rs.54,98,037.89 with interest at the rate of fourteen per cent per annum with quarterly, rests from the date of institution of the suit till realization.
7. The defendants are allowed a period of six months to deposit the decretal amount in Court failing which the mortgaged property as also the hypothecated goods shall be sold in execution of the decree. In case the sale-proceeds of the mortgaged property are found to be insufficient to satisfy the decree, the plaintiff shall be at liberty to apply to the Court for a decree against the defendants for recovery of the balance amount otherwise from them in accordance with law.