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UNITED BANK LTD. versus BAWA CO. LTD.


The remedy against the guarantor of Sections 128 and 137 and the Limitation Act (IX of 1908), Article 65, is that due to the session of East Pakistan, the payment of principal debt has become impossible and consequently a new and independent state. Has come out and its procurement is banned. No confession can be denied, no power can be imposed against the bail without any power and remedy, which is read with Section 137 of the Limitation Act.

1981 C L C 89

[Karachi]

Before Tanzil‑ur-Rehman, J

UNITED BANK LTD.‑Plaintiff

versus

Haji BAWA COMPANY LTD AND 3 OTHERS‑Defendants

Suit No. 330 of 1976, decided on 16th August 1980.

(a) Limitation Act (IX of 1908)‑

‑‑‑ Art. 65‑Limitation‑Cannot be extended simply by contract‑Period of limitation prescribed by statute, held, cannot inter vivos be curtailed or enlarged unless so provided or warranted by any provisions of Limitation Act itself.‑[Limitation].

National & Commercial Bank Limited v. Muhammad Tufail and another P L D 1975 Kar. 671; Commerce Bank Limited v. Crescent Paint, Colour and Varnish Works Limited P L D 1975 Kar. 504; Sreenath Roy and others v. Peary Mohan Mukkerji A I R 1917 Cal. 154; Dialumal v. Nadu Shaw Dev Rai & Co. A I R 1931 Lah. 691; Parr's Banking Company v. Yates (1898) 2 Q B 460; Breadford Old Bank Ltd. v. Sutcliffe (1918) 2 K B 833; Re : Prounce Estate Brown v. Brown 1893 2 C H 300; Eshelby v. Federated European Bank Limited (1932) 1 K B 423; Brojenro Kissore Roy Ch. v. Hindustan Cooperative Insurance Society A I R 1918 Cal. 707; Somnath Rajoo v. Rama Moorti A I R 1957 Orissa 106; Islamic Republic of Pakistan v. Nazardin Khattak P L D 1969 Pesh. 313; Federation of Pakistan v. Muhammad Shafi & Sons P L D 1971 Pesh. 93; Pestonji v. Mehrbai A I R 1928 Born. 539; Pheral and another v. Pudai Ram A I R 1925 Oudh 502; Govardan Das v. Dau Dayal A I R 1932 All. 273; Nathumal Ramdas v. P. D. Ram Sarup & Co. and others A I R 1932 Lah. 161 and Brojendra Nath Mitra v. Arman Sheikh A I R 191.8 Cal. 132 ref.

(b) Contract Act (IX of 1872)‑

‑‑ Ss. 126 & 128 and Limitation Act (IX of 1908)‑Remedy against guarantor‑Contract of guarantee to be strictly construed as to point of time when liability of guarantor arises‑Question, held, depends on terms of contract of guarantee by which guarantor bound himself for repayment of loan advanced to principal borrower.

(c) Contract Act (IX of 1872)‑

‑‑‑ Ss. 128 & 137 and Limitation Act (IX of 1908), Art. 65‑Remedy against guarantor‑Contention that repayment of loan from principal debtor having become impossible due to cession of East Pakistan and its emerging as a new and independent State and remedy being barred by time, cannot be invoked‑Contention, held, without force and remedy against guarantor available by virtue of letter of guarantee read with S. 137 of Limitation Act.

Satyabrata Ghose v. Bangur & Co. and another A I R 1954 S C 44; P. Kanthamma v. D. S. Raja Lakshmi A I R 1963 Mad. 412; Gurdit Singh v, Gujjar Singh and others A I R 1919 Lah. 355; Jagaannah Ganeshram Agarwala v. Shimarayan Bhagirath and others A I R 1910 Bom. 247 and Punjab National Bank Ltd., Lahore v. Dr. A. B. 4rara and others A I R 1933 Lah, 1024 ref.

Inamul Haq for Plaintiff's.

Mohd. Anis for Defendants:

Dates of hearing : 19th and 20th May 1980.

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