' MIAN SAQIB NISAR, J.---Appellant, filed a suit for the recovery of an amount of Rs,5,88,838.56 against the respondents under the provisions of the Banking Companies (Recovery of Loans)
Ordinance, 1979; the respondents applied for the leave to appear and defend, which application was yet pending and the Banking Court, Lahore, through the impugned order, rejected the plaint of the appellant on the ground that the loan which is sought to be recovered from the respondents.
Has been written off by the appellant, after procuring sanction from the State Bank of Pakistan.
2. Learned counsel for the appellant contends. That such write-off was not meant for the purposes of giving up the claim of the appellant, rather the permission was sought from the State Bank of Pakistan, for showing the said amount as written-off for the accounting purposes. It is further contended, that the plaint can only be rejected, if it does not disclose any cause of action, on the basis of its contents and the documents appended thereto, no date or material provided by the defence, should be looked into. At the best, considering the subsequent events/happening, after the filing of the suit, the Court below, should have granted leave to appear and defend to the respondents, but it was not a case for the rejection of the plaint.
3. We have heard the learned counsel for the parties. Without dilating much upon, qua the effect of the letter, dated 5-2-1981, which was issued by the appellant to the respondents, on account of sanction allowed, for the writing-off of the loan, we find that the plaint with its original contents 'could not have been rejected. The subsequent development, at the best, had given a plausible A defence to the respondents, to seek leave to appear and defend unconditionally, thus, the Court should not have hastily rejected the plaint, rather should have granted the leave, and thereafter, on account of the written statement of the respondents and framing of issues, considered the effect of the latter written by the appellant, and the sanction granted by the State Bank of Pakistan, for the writing-off the loan.
4. In the light of above, by allowing this appeal, the impugned order, rejecting the plaint of the appellant, is set aside, the case of the appellant shall be deemed to be pending before the Banking Court. Lahore the Court shall decide the leave application of the respondents, in view of the observations, made above, and shall decide the matter in accordance with law.