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Civil Petition No. K‑2 of 1982, decided on 30th March, 1982.

(On appeal from the judgment and order of the High Court of Sind at Karachi, dated 10‑11‑1981 passed in Constitutional Petition No. 1009 of 1981).

‑‑‑Art. 185(3)‑‑Banking Companies (Recovery of Loans) Ordinance (XIX of 1979)‑‑Suit for recovery of bank loan‑‑Credit facility granted to petitioner on pledging stocks of paddy in his Rice Mills‑‑Later, Rice Mills nationalised and taken over by Government alongwith paddy stocks which were subsequently sold at their instance‑‑Suit for recovery of loan transferred to Judge of Special Court established under Banking Companies (Recovery of Loans) Ordinance, 1979‑‑Petitioner's writ petition challenging jurisdiction of Special Court dismissed‑‑Order impugned‑ Competency of suit assailed on ground that Rice Milling Corporation of Pakistan and Government being necessary parties should be main defendants‑‑Leave to appeal granted inter alia question involved in petition.

Mamoon Kazi, Advocate Supreme Court assisted by A. Aziz Khan, Advocate‑on‑Record for Petitioners.

Mansoor Ahmed Khan, Advocate Supreme Court with V.A. Kidwai, Advocate‑on‑Record for Respondents.

Date of hearing: 30th March, 1982.

‑‑Facts of this case briefly stated are that petitioners were granted cash credit facility by Allied Bank of Pakistan Limited, respondent No. 2, on the pledge of their stocks of paddy in their Rice Mill. In 1976, petitioners' Rice Mill and the other Rice Mills in Pakistan were nationalised, and accordingly not only the Rice Mill belonging to the petitioners but also the stocks of paddy lying there were taken over by the Government. The stocks of paddy pledged with the respondent No. 2 were sold at their instance and respondent No. 2 afterwards filed a suit against the petitioners for recovery of Rs.6,23,034 due against the cash credit facility granted to them. The suit was afterwards transferred for trial before the Judge of the Special Court established under the Banking Companies (Recovery of Loans) Ordinance, 1979.

Petitioners filed a petition under Article 9 of the Provisional Constitution Order, 1981 in Sind High Court seeking to challenge the jurisdiction of the Judge of the Special Court on the ground that he was not competent to deal with the suit. The petition was dismissed by the High Court, and petitioners now seek leave to appeal.

Mr. Mamoon Kazi, learned counsel for the petitioners submits that in view of the fact that the Rice Milling Corporation of Pakistan and the Government are necessary parties, and in fact should be the main defendants, the suit under the special provisions of the Banking Ordinance is not competent.

This point of law and the others raised in support of the petition deserve consideration. Leave is granted. Security Rs.2, 500.

M. I. Leave granted.

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