HAJI FAZAL ELAHI & SONS versus BANK OF PUNJAB
Section 128 Lahore Development Authority Act (XXX of 1975), Sections 6 (3) (vii) and 22 (1) of the Local Authority Loan Act (IX of 1914), Section 7 provided loan to third party by the Lahore Development Authority The bail authority was not barred from making such a guarantee under the Lahore Development Authority Act, 1975 or Section 6 (3) (vii) of the Lahore Development Authority Act, 1975, under the Local Authority Loan Act, 1914, therefore, in granting bail. One of the contracts is guaranteed to be validly executed by the bank in favor of the bank to guarantee the payment of finance provided to a third party authority. Dog because the Guarantor will be jointly and severally responsible for refund to the bank.
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