1

Before the Honourable Lahore High Court, Lahore.

C.O.S. No.___________/2007
Allied Bank Limited (formerly Allied Bank of Pakistan Limited), a banking company
incorporated under the Companies Ordinance, 1984 and having its registered office at 8Egerton Road/Kashmir Road, Lahore and a branch amongst others at Badami Bagh,
Lahore.
Plaintiff
Versus

1.

Mr Jawad Rashid s/o Haji Sheikh Mohammad Rashid carrying on business under the
name and style of M/s. Sardar Enterprises, 313 Circular Road, Badami Bagh, Lahore/
House No. 230-231, Block N, Samanabad, Lahore.

2.

Haji Sheikh Javed Rashid s/o Haji Sheikh Abdul Rashid r/o House No. 2-E, Block No.2,
Samanabad, Lahore.

3.

Mst. Sardar Begum w/o Haji Sheikh Abdul Rashid R/o House No. 230-231 Block N,
New Samanabad Scheme, Lahore / House No. 2-E, Block No. 2, Samanabad, Lahore.

4.

Mrs. Naveed Jamal w/o Jamal Rashid Sheikh R/o House No.304-K, D.H.A., Lahore/
House No. 230- N, Samanabad, Lahore.

.Defendants

SUIT

FOR RECOVERY OF RS.87,832,018.00 AS OUTSTANDING ON 31-01-2007

THROUGH ENFORCEMENT & SALE OF THE MORTGAGED PROPERTIES,
PLEDGED STOCKS, ENFORCEMENT OF PERSONAL GUARANTEES AS WELL AS
SALE OF OTHER ASSETS OF THE DEFENDANTS.

Respectfully Sheweth:1.

That the Plaintiff is a banking company incorporated under the Companies Ordinance,
1984 having its registered office at 8-Egerton Road/Kashmir Road, Lahore and a branch
amongst others at Badami Bagh, Lahore. The Plaintiff is a financial institution for the
purposes of the Financial Institutions (Recovery of Finances) Ordinance of 2001(the
Ordinance) and, therefore, competent to institute this suit before this Honourable Court.

2.

That the titled suit on behalf of the Plaintiff has been filed through Mr.
______________Manager and Mr. __________________an officer of the Plaintiffs
aforesaid branch situated at Badami Bagh, Lahore. The said officers have been/are duly
authorized by the Plaintiff Bank to institute the suit, sign and verify plaint, applications,
affidavits and appoint advocates etc. and to do all acts necessary and incidental for

prosecution of the case on behalf of the Plaintiff Bank. The said officers are also
conversant with the facts of the titled case. (Copies of the Power of Attorney are attached
as Annex-A and A/I). The aforesaid Mr. _________ being the Branch Manger of the
Plaintiffs aforesaid Branch is also authorized to institute the titled suit and to sign and
verify the plaint on behalf of the Plaintiff under Section 9(1) of the Financial Institutions
(Recovery of Finances) Ordinance, 2001. (Copy of the Letter dated ___________
whereby the above said officer was appointed/designated as the Chief Manager/ Manager
of the aforesaid branch is attached as Annex-A/Ia.
3.

That the Defendant No.1 is carrying on business under the name and style of M/s. Sardar
Enterprises having its principal place of business at 313 Circular Road, Badami Bagh,
Lahore. Defendant No.1 is the sole proprietor of the aforesaid Sardar Enterprises.

4.

That Defendant Nos. 1 to 4 executed Personal Guarantees and mortgaged their properties
with the Plaintiff as security for the facilities subject matter of the titled suit.

5.

That all the addresses of the parties have been correctly given in the heading of the plaint
which are sufficient for the purposes of the processes that may be issued by this
Honourable Court.

6.

That the Defendant No.1 has been a customer of the Plaintiff Bank since the year 1999
and has been availing various financial facilities. Said facilities were renewed and availed
by the Defendant No.1 from time to time. Plaintiff, vide Sanction Advice No. CO/CDP/FS/1021 dated 30-6-2001 (Annex-B) as amended by the Corrigendum No. CO/CDP/1689 dated 10-7-2001 (Annex-B/1) had allowed to the Defendant limits of the Letter of
Credit (Sight) of Rs.100.00 million (L/c Limit), Running Finance of Rs.30.00 million
(Running Finance) and Cash Finance to the tune of Rs. 25.00 million (Cash Finance).
Above limits were fully utilized by and disbursed to the Defendant No.1.

7(a)(i). That vide approval No. CO/CD-P/MNA/3188 dated 31.12.2002 (Annex-B/2), Plaintiff
on the request of the Defendant No1 again renewed and extended to the Defendant No.1
inter alia the Running Finance to the tune of Rs.30.00 million. In pursuance of the above
approval, the Defendant No.1 inter alia executed the Agreement for Financing dated 0101-2003 (Annex-B/3) in terms whereof Running Finance was continued till 30.6.2003.
(ii).

Later

on,

on

the

request

of

the

Defendant

No.1,

vide

approval

No.

COS/SAMD/MTR/5330 dated 22.12.2004 (Annex-B/4) and the Facility Offer Letter No.
BBL/FE/2004/754 dated 23-12-2004 (Annex-B/5) as amended by the Sanction Advice
[Link]/SAMD/MTR/745 dated 07.02.2005(Annex-B/6), the aforesaid Running Finance
was again restructured, renewed and continued till 31-12-2005. Through the Undertaking
dated 22-02-2005 (Annex-B/6a), the Defendant No.1 undertook to comply the terms of
the aforesaid Sanction Advice dated 07.02.2005. In pursuance of the above approval, the
Defendant No.1 executed, inter alia, the following documents for the Running Finance:

(a)

Agreement for Financing dated 08-01-2005 (Annex-C) in terms

whereof the agreed Purchase Price of Rs.33,000,000.00 was to be
paid by the Defendant No.1 in lump sum on or before 31-12-2005.
Full amount of Rs.30.00 million was disbursed to and utilized by
the Defendant No.1.

(b)

Promissory Note dated 08-01-2005 (Annex-C/1).

(c)

Letter of Hypothecation dated 08-01-2005 (Annex-C/2).

(d)

Agreement for Sale and Buy-Back of Marketable Securities dated

08-01- 2005 (Annex-C/2a).

(b)(i). The Defendant No.1 proceeded to avail funds in terms of the Running Finance evidenced
by the Statements of Account for the Current Account No. 01-200-7183-2 appended
herewith as Annex-C/3. Statement of Account for mark-up of the Running Finance is
appended herewith as Annex-C/4. That the Plaintiff bank is entitled to claim the entire
amount due to it in terms of the Agreements for Financing dated 01-01-2003 (Annex-

B/3 above), and the Agreements for Financing dated 08-01-2005 (Annex-C above) for
the Running Finance referred to above, the amounts outstanding at the time of each
agreement being the consideration of the said agreement.
(ii).

(iii)

The amounts presently outstanding and payable under the Running Finance are as under:
(i)

Principal Amount outstanding.

Rs. 29,956,735.00

(ii)

Markup outstanding.

Rs. 12,496,285.00

(iii)

Total Amount Payable as of 31.1.07.

Rs. 42,453,020.00

Particulars as per Section 9(3) of the Ordinance, 2001 are as under:

(i) Principal amount availed.

Rs. 259,345,258.00
(ii) Principal Amount paid(Payments Rs. 229,388,523.00
dates are given in the statement of Account).
(iii) Principal Amount payable( i-ii )
(iv) Mark up payable upto 31-01-07
(v) Mark-up paid.
(Dates of payments
Shown in the Statement of
Account)
(vi) Balance mark up
up to 31-01-07 (iv-v)
(vii) Outstanding principal
and markup payable (iii+vi).

Rs. 29,956,735.00
Rs. 21,671,046.00
Rs.9,174,761.00

Rs. 12,496,285.00
Rs. 42,453,020.00

8(a)(i). That vide the aforesaid Sanction Advice dated 30.6.2001 (Annex-B above) as amended
by the Corrigendum [Link]/CD-P/1689 dated 10-7-2001 (Annex-B/1above) the
Defendant No.1 was also sanctioned a financial facility of Cash Finance of Rs.25.00
million. Aforesaid Cash Finance Facility was fully disbursed to and utilized by the
Defendant No.1.
(ii).

That vide approval No. CO/CD-P/MNA/3188 dated 31.12.2002 (Annex-B/2 above),

Plaintiff on the request of the Defendant No1 again renewed and extended to the
Defendant No.1 inter alia the Cash Finance to the tune of Rs.25.00 million. In pursuance
of the above approval, the Defendant No.1 inter alia executed the Agreement for
Financing dated 01-01-2003 (Annex-D) in terms whereof Cash Finance was continued
till 30.6.2003.

(b).

Later

on,

on

the

request

of

the

Defendant

No.1,

vide

approval

No.

COS/SAMD/MTR/5330 dated 22.12.2004 (Annex-B/4 above) and the Facility Offer

Letter No. BBL/FE/2004/754 (Annex-B/5 above) as amended by the Sanction Advice
[Link]/SAMD/MTR/745 dated 07.02.2005 (Annex-B/6 above), Plaintiff granted to the
Defendant No.1 a new long-term finance facility of Demand Finance to the tune of
Rs.22.00 million in lieu of and by way of restructuring of the aforesaid Cash Finance. A
copy of the Undertaking dated 22-02-2005 by the Defendant No.1 for compliance of the
terms of the aforesaid Sanction Advice dated 07.02.2005 has already been attached
herewith as Annex-B/6a above. In pursuance of the above approval, the Defendant No.1
executed, inter alia, the following documents for the Running Finance:
(a)

Agreement for Financing dated 08-01-2005 (Annex-D/1) in terms

whereof the agreed Purchase Price of Rs.24,200,000.00 was to be
paid by the Defendant No.1 on or before 31-12-2006 in lump sum.

(b)

Promissory Note dated 08-01-2005 (Annex- D/2).

(c)

Letter of Pledge dated 08-01-2005 (Annex- D/3). Pledged stocks

are lying at the godown situated at Sidiquee Street opposite
Sheranwalla Gate Lahore and are detailed in three Stocks Reports
attached as Annex- D/3a, Annex- D/3b & Annex- D/3b.

(c)(i). The Defendant No.1 proceeded to avail funds in terms of the Demand Finance evidenced
by the Statements of Account for Account No. 01-510-0013-4 appended herewith as
Annex-D/4. Statement of Account for mark-up of the Demand Finance and over due
mark up of the Cash Finance is appended herewith as Annex-D/5. Copy of the Statement
of Accounts of the aforesaid Cash Finance bearing loan Account No.01-390-0003-6 for
the period from 01-01-2005 to 31-12-2005 is attached as Annex-D/5b. The above
Statements of Accounts establish that on 26-02-2005 a sum of Rs.22,010,880.00 was
outstanding debit balance against the principal amount of the Cash Finance which was
adjusted on the same day by disbursement of Rs.22,010,880.00 against the Demand
Finance. That the Plaintiff bank is entitled to claim the entire amount due to it in terms of
the Agreement for Financing dated 01-01-2003 (Annex- D above), and Agreement for

Financing dated 08-01-2005 (Annex-D/1 above) for the Cash Finance and Demand
Finance referred to above, the amounts outstanding at the time of each agreement being
the consideration of the said agreement.
(ii).

(iii)

The amounts presently outstanding and payable under the Demand Finance are as under:
(i)

Principal Amount outstanding.

Rs. 9,582,880.00

(ii)

Markup outstanding.

Rs. 9,790,673.00

(iii)

Total Amount Payable as of 31.1.07.

Rs.19,373,553.00

Particulars as per Section 9(3) of the Ordinance, 2001 are as under:

(i) Principal amount availed

(ii) Principal Amount paid.
Amount & dates of payments
given in the relevant statement
Of Account.

Rs. 22,692,616.00
Rs. 13,109,736.00

(iii) Principal Amount payable ( I-ii )

(iv) Mark up payable upto 31-01-07
(v) Mark up paid.
Amount & dates of payments
Given in the relevant statement
Of Account.

Rs. 9,582,880.00
Rs. 11,070,557.00
Rs. 1,279,884.00

(vi) Balance mark up up to 31-01-07 (iv-v) Rs. 9,790,673.00

(vii) Outstanding principal
and markup payable ( iii+vi )
9(a)

Rs. 19,373,553.00

That through the aforesaid Sanction Advice No. CO/CD-P/FS/1021 dated 30.6.2001
(Annex-B above) as amended by the Corrigendum No. CO/CD-P/1689 dated 10-7-2001
(Annex-B/1 above) Plaintiff had also allowed to the Defendant No.1 a limit for
establishment of Letter of Credit (Sight) for import of Tyres and Tubes to tune of the
aggregate amount of Rs.100.00 million. The aforesaid Limit was also continued till
30.6.2003 vide aforesaid Sanction Advice No. CO/CD-P/MNA/3188 dated 31.12.2002
(Annex-B/2 above). This limit of Letter of Credit was fully utilized by the Defendant
No.1 and against this limit of Letter of Credit, Plaintiff established on the request and on
behalf of the Defendant No.1 various Letters of Credit for import of Tyres and Tubes. The
Defendant No.1 undertook to make available the funds required for payment under the
L/Cs to be established at the request of Defendant No.1 and to take all steps necessary for
the release of the documents at the appropriate time.

(b).

That on receipt of the shipping documents under six (6) L/Cs by the Plaintiff detailed
below, Defendant No.1 failed to get released the imported goods by making any
corresponding payment thereof and resultantly Plaintiff had to make payment to the
beneficiaries of the said 6 L/Cs by allowing to the Defendant No.1 a forced financial
facility of Finance against Imported Merchandizes (FIM-II). Details of the said over due
6 L/Cs, documents that were executed by the Defendant No.1 in support of and to secure

discharge of its obligations under the said L/C(s), shipping documents and the Statement
of Accounts are as under;
(1)

Letter of Credit No.2003/8406-8/LBBB/0212.

(i)

Letter of Credit No.2003/8406-8/LBBB/0212 dated 28-02-2003

(Annex-E).

(ii)

Application and Agreement for Irrevocable Documentary Credit

dated 28-02-2003 (Annex-E/1).

(2)

(a).

Consignment No.1:
i. Commercial Invoice dated 03-04-2003 (Annex-E/1A).
ii. Packing List dated 03-04-2003 (Annex-E/1B).
iii. Bill of Lading dated 17-04-2003- (Annex-E/1C).
iv. Statement of Account (Annex-E/1D).

(b).

Consignment No.2:
i. Commercial Invoice dated 31-03-2003 (Annex-E/2A).
ii. Packing List dated 31-03-2003 (Annex-E/2B).
iii. Bill of Lading dated 28-03-2003 (Annex-E/2C).
iv. Statement of Account (Annex-E/2D).

(c).

Consignment No.3:
i. Commercial Invoice dated 31-03-2003 (Annex-E/3A).
ii. Packing List dated 31-03-2003 (Annex-E/3B).
iii. Bill of Lading dated 28-03-2003 (Annex-E/3C).
iv. Statement of Account (Annex-E/3D).

(d).

Consignment No.4:
i. Commercial Invoice dated 30-03-2003 (Annex-E/4A).
ii. Packing List dated 31-03-2003 (Annex-E/4B).
iii. Bill of Lading dated 28-03-2003 (Annex-E/4C).
iv. Statement of Account (Annex-E/4D).
v. (Annex-E/4E).

Letter of Credit No. 2003/8408-0/LBBB/0212.

(i)
(ii)
(iii)
(iv)
(v)
(vi)

(3)

Letter of Credit No.2003/8408-0/LBBB/0212 dated 28-022003 (Annex-E/5A).

Application and Agreement for Irrevocable Documentary
Credit dated 28-02-2003 (Annex-E/5B).
Commercial Invoice dated 11-04-2003 (Annex-E/5C).
Packing List dated 11-04-2003 (Annex-E/5D).
Bill of Lading dated 21-04-2003 (Annex-E/5E).
Statement of Account (Annex-E/5F).

Letter of Credit No. 2003/8409-1/LBBB/0212.

(i)
(ii)
(iii)
(iv)
(v)
(vi)

Letter of Credit No.2003/8409-1/LBBB/0212 dated 28-022003 (Annex-E/6A).

Application and Agreement for Irrevocable Documentary
Credit dated 28-02-2003 (Annex-E/6B).
Commercial Invoice dated 25-07-2003 (Annex-E/6C).
Packing List dated 25-07-2003 (Annex-E/6D).
Bill of Lading dated 01-08-2003 (Annex-E/6E).
Statement of Account (Annex-E/6F).

(4)

Letter of Credit No. 2003/8421-7/LBBB/0212.

(i)
(ii)
(iii)
(iv)
(v)
(vi)

(5)

Letter of Credit No. 2003/8423-9/LBBB/0212.

(i)
(ii)
(iii)
(iv)
(v)
(vi)

(6)

(ii)
(iii)
(iv)
(v)
(vi)
Subsequently,

Letter of Credit No.2003/8423-9/LBBB/0212 dated 14-042003 (Annex-E/8A).

Application and Agreement for Irrevocable Documentary
Credit dated 14-04-2003 (Annex-E/8B).
Commercial Invoice dated 04-07-2003 (Annex-E/8C).
Packing List dated 04-07-2003 (Annex-E/8D).
Bill of Lading dated 13-07-2003 (Annex-E/8E).
Statement of Account (Annex-E/8F).

Letter of Credit No. 2003/8424-0/LBBB/0212.

(i)

(c).

Letter of Credit No.2003/8421-7/LBBB/0212 dated 04-042003 (Annex-E/7A).

Application and Agreement for Irrevocable Documentary
Credit dated 04-04-2003 (Annex-E/7B).
Commercial Invoice dated 19-06-2003 (Annex-E/7C).
Packing List dated 19-06-2003 (Annex-E/7D).
Bill of Lading dated 29-06-2003 (Annex-E/7E).
Statement of Account (Annex-E/7F).

on

the

Letter of Credit No.2003/8424-0/LBBB/0212 dated 14-042003 (Annex-E/9A).

Application and Agreement for Irrevocable Documentary
Credit dated 14-04-2003 (Annex-E/9B).
Commercial Invoice dated 28-05-2003 (Annex-E/9C).
Packing List dated 28-05-2003 (Annex-E/9D).
Bill of Lading dated 30-05-2003 (Annex-E/9E).
Statement of Account (Annex-E/9F).
request

of

the

Defendant

No.1,

vide

approval

No.

COS/SAMD/MTR/5330 dated 22.12.2004 (Annex-B/4 above) and the Facility Offer

Letter [Link]/FE/2004/754 (Annex-B/5 above) as amended by the Sanction Advice
[Link]/SAMD/MTR/745 dated 07.02.2005 (Annex-B/6 above), the aforesaid FIM-II
facility was continued and increased to Rs.24.00 million. In pursuance of the above
approval by the Plaintiff, the Defendant No.1 executed, inter alia, the following
documents:
(a)

Agreement for Financing dated 08-01-2005 (Annex-E/10) in terms

whereof the agreed Purchase Price of Rs.26,640,000.00 was to be
paid by the Defendant No.1 on or before 31-07-2005 in lump sum.

(b)

Promissory Note dated 08-01- 2005 (Annex-E/11).

(c)

Letter of Pledge dated 08-01- 2005 (Annex- E/12). Pledged stocks

are lying at Tanveer Bonded Ware House situated at Gari Shahoo,
Lahore and are detailed in three Stocks Reports attached as AnnexE/12a, Annex- E/12b & Annex- E/12c.

(d)(i). The Defendant No.1 proceeded to avail funds in terms of the FIM-II evidenced by the
Statements of Account for Account No. 01-500-0084-3 appended herewith as AnnexE/13. Statement of Account for mark-up of FIM-II is appended herewith as Annex-E/14.
That the Plaintiff bank is entitled to claim the entire amount due to it in terms of the
Agreement for Financing dated 08-01-2005 (Annex-E/10 above) for FIM-II referred to
above, the amount outstanding at the time of the above agreement as well the amounts
disbursed there under being the consideration of the said agreement.
(ii).

(iii)

The amounts presently outstanding and payable under FIM-II are as under:
(i)

Principal Amount outstanding.

Rs. 11,836.795.00

(ii)

Markup outstanding.

Rs. 6,408,344.00

(iii)

Total Amount Payable as of 31.1.07.

Rs. 18,245,139.00

Particulars as per Section 9(3) of the Ordinance, 2001 are as under:

(i) Principal amount of finance availed.

(ii) Principal Amount paid. Amount &
dates of payments given in the relevant
statement
Of Account.

23,978,559.00
11,961,764.00

(iii) Principal Amount payable ( i-ii )

(iv) Mark up payable upto 31-01-07
(v) Mark up paid. Amount & dates of
payments given in the relevant
StatementOf Account.

Rs. 11,836,795.00
Rs. 6,932,275.00
Rs. 523,931.00

(vi) Balance mark up upto 31-01-07 (iv-v)

Rs. 6,408,344.00

(vii) Outstanding principal

and markup payable (iii+vi)

Rs. 18,245,139.00

10(a). That through the aforesaid approval vide approval No. COS/SAMD/MTR/5330 dated
22.12.2004 (Annex-B/4 above) and the Facility Offer Letter No. BBL/FE/2004/754
(Annex-B/5 above) as amended by the Sanction Advice [Link]/SAMD/MTR/745 dated
07.02.2005 (Annex-B/6 above), the Defendant No.1 was also sanctioned a financial limit
of Finance Against Trust Receipt (FATR-Limit) of Rs.7.00 million. This Limit was
granted for obtaining delivery by the Defendant No.1 of the stocks pledged with the
Plaintiff against the aforesaid Demand Finance of Rs.22.00 million and FIM-II of
Rs.24.00 million mentioned in paragraphs- 8 & 9 above respectively. It may be noted that
the FATR-Limit was on revolving basis and the Defendant No.1 was entitled, while
remaining within the maximum limit of Rs.7.00 Million at one point of time, to take
multiple deliveries of the stocks pledged as security for the aforesaid Demand Finance
and FIM-II. As per terms of the FATR-Limit, Defendant No.1 was under an obligation to
deposit with the Plaint the value of the stocks/goods within the _____ days of each
delivery of the said stocks/goods to it.
(b)

That in pursuance of the above approval by the Plaintiff, the Defendant No.1 executed,
inter alia, the following documents:

(a)

Agreement for Financing dated 08-01-2005 (Annex-F) in terms

whereof the agreed Purchase Price of Rs.7,700,000.00 was to be
paid by the Defendant No.1 on or before 31-12-2005 in lump sum.

(b)

(c)

Promissory Note dated 08-01- 2005 (Annex- F/1).

That the Defendant No.1 by executing Trust Receipt dated 28-10-2005 (Annex-F/2) and
Trust Receipt dated 28-10-2005 (Annex-F/3) took from the Plaintiff delivery of the
stocks/goods of the value of Rs.2,950,099.00 and Rs.3,670,000.00 pledged against the
aforesaid FIM-II & the Demand Finance respectively. However, in violation of its
obligations under the aforesaid Trust Receipts, Defendant No.1 failed to pay to the
Plaintiff the aforesaid values of the stocks/goods delivered to it.

(d)(i). The Defendant No.1 proceeded to avail funds in terms of FATR-Limit evidenced by the
two Statements of Account for Account No. 01-540-0144-2 & for Account No. 01-5400145-3 appended herewith as Annex-F/4 & Annex-F/5. Statement of Account for markup of FIM-II is appended herewith as Annex-F/6. That the Plaintiff bank is entitled to
claim the entire amount due to it in terms of the Agreement for Financing dated 08-012005 (Annex-F above) for FATR-Limit referred to above.
(ii).

(iii)

The amounts presently outstanding and payable under FATR-Limit are as under:
(i)

Principal Amount outstanding.

Rs. 6,620,099.00

(ii)

Markup outstanding.

Rs. 1,140,207.00

(iii)

Total Amount Payable as of 31.1.07.

Rs. 7,760,306.00

Particulars as per Section 9(3) of the Ordinance, 2001 are as under:

(i) Principal amount of finance availed.

(ii) Principal Amount paid.
(iii) Principal Amount payable ( i-ii )
(iv) Mark up payable upto 31-01-07
(v) Mark up paid
(vi) Balance mark up upto 31-01-07 (iv-v)
(vii) Outstanding principal
and markup payable (iii+vi)
11.

Rs. 6,620,099.00
Rs. NIL
Rs. 6,620,099.00
Rs. 1,140,207.00
Rs. NIL
Rs. 1,140,207.00
Rs. 7,760,306.00

That in addition to the documents mentioned in paras 7 to 10 above of this Plaint, as

security for the above facilities, Defendant Nos.1 to 4 also created charges/mortgages on
their assets in favour of the Plaintiff. The details of the mortgaged properties and
documents whereby said charges/mortgages were created/evidenced/registered are given
below:
I.

Mortgagor:

Mr Jawad Rashid (Defendant No.1)

Mortgaged Property:

All that piece and parcel of land measuring 3

Marlas along with house constructed thereon
and known as Nayyar Manzil bearing
Property/Survey No. N-I-24-S in Khasra
No.2093-Min, Hadbust Mauza Bela Basti

10

Ram, situated at Bearoon Masti Gate, 313

Circular Road, Lahore together with its all
present and future constructions, fitting,
fixtures and installations thereon.
Documents furnished
& executed:
(i)
(ii)
(iii).
(iv)
(v)
(vi)
(vii)

(viii)

(ix)
II.

Memorandum of Deposit of Title Deed

dated 14-06-2001 (Annex-G).
Deed of Mortgage dated 14-06-2001
(Annex-G/1).
General Power of Attorney dated 14-062001 (Annex-G/2).
Memorandum of Deposit of Title Deeds
dated 01-01-2003 (Annex-G/3).
Memorandum of Deposit of Title Deeds
dated 08-01-2005 (Annex-G/4).
Affidavit by the Mortgagor dated 14-062001 (Annex-G/5).
Copy of the Naqal Haqdaran Zamin for the
year 1995-96 for the Mauza/ Hadbust Mauza
Bela Basti Ram, Tehsil City, Lahore
(Annex-G/6) evidencing that the mortgage
in favour of Plaintiff on the Mortgaged
Property mentioned above has been
recorded in the Revenue Record.
Sale Deed dated 20-06-1992 registered with
the Sub-Registrar Lahore City, Lahore on
25-06-1992 with Dastawiz No.4478 Bahi
No.1 & Jild No.352. Original Sale Deed
dated 20-06-1992 was deposited by the
above Mortgagor with the Plaintiff to create
equitable mortgage in its favour on the
Mortgaged Property mentioned above
(Annex-G/7).
P.T.1 Form (Annex-G/8).

Mortgagor:

Haji Sheikh Javed Rashid (Defendant No.2)

Mortgaged Property:

All that piece and parcel of land measuring 2

Marlas along with shop constructed
thereon bearing Property/Survey No.S-19-R15 situated at Shahrah-e-Quaid-e-Azam &
Maclagon Road, Lahore together with its all
present and future constructions, fitting,
fixtures and installations thereon.

Documents furnished
& executed:
(i)
(ii)

(iii).
(iv)

Memorandum of Deposit of Title

Deed dated 14-06-2001 (Annex-H).
Deed of Mortgage dated 14-06-2001
(Annex- H/1) registered with the
Sub-Registrar Lahore Saddar, Lahore
on 15-09-2001.
General Power of Attorney dated
14-06-2001 (Annex- H/2).
Memorandum of Deposit of Title
Deeds dated 01-01-2003 (AnnexH/3).

11

(v)
(vi)
(vii)
(viii)

(ix)

III.

Memorandum of Deposit of Title

Deeds dated 08-01-2005 (AnnexH/4).
Affidavit by the Mortgagor dated 1406-2001 (Annex- H/5).
Letter of Continuity of Mortgage
dated 08-01-2005 (Annex- H /6).
Sale Deed dated 26-10-1987
registered with the Sub-Registrar
Lahore City, Lahore on 26-10-1987
with Dastawiz No.7490 Bahi No.1 &
Jild No.2842. Original Sale Deed
dated 26-10-1987 was deposited by
the above Mortgagor with the
Plaintiff to create equitable mortgage
in its favour on the Mortgaged
Property mentioned above (AnnexH/7).
Form (Annex- H /8).

Mortgagor:

[Link] Begum(Defendant No.3).

Mortgaged Property:

All that piece and parcel of land

measuring 1 Kanal , 4 Marlas & 40
Sft along with House constructed
thereon bearing Plot No.230-231-N
situated at 134 Acres Scheme,
Samanmabad, Lahore together with
its
all
present
and
future
constructions, fitting, fixtures and
installations thereon.

Documents furnished
& executed:
(i)
(ii)
(iii).
(iv)
(v)
(vi)
(vii)
(viii)

Memorandum of Deposit of Title

Deed dated 14-06-2001 (Annex-I).
Deed of Mortgage dated 14-06-2001
(Annex-I/1).
General Power of Attorney dated 1406-2001 (Annex- I/2).
Memorandum of Deposit of Title
Deeds dated 01-01-2003 (AnnexI/3).
Memorandum of Deposit of Title
Deeds dated 08-01-2005 (AnnexI/4).
Affidavit by the Mortgagor dated 1406-2001 (Annex- I/5).
Letter of Continuity of Mortgage
dated 08-01-2005 (Annex- I/6).
Sale Deed registered with the SubRegistrar Lahore Saddar, Lahore on
11-06-1996 with Dastawiz No.5629,
Bahi No.1 & Jild No.2280. Original
Sale Deed was deposited by the
above Mortgagor with the Plaintiff to
create equitable mortgage in its
favour on the Mortgaged Property
mentioned above (Annex- I/7).

12

IV.

Mortgagor:

Mrs. Naveed Jamal(Defendant No.4)

Mortgaged Property:

All that piece and parcel of land

measuring 2 Kanals along with
House constructed thereon bearing
Plot No.304-K situated at Defence
Housing Authority (DHA), Lahore
Cantt, Lahore together with its all
present and future constructions,
fitting, fixtures and installations
thereon.

Documents furnished
& executed:
(i)
(ii)
(iii).
(iv)
(v)
(vi)
(vii)
(viii)

12.

Memorandum of Deposit of Title

Deed dated 14-06-2001 (Annex-J).
Deed of Mortgage dated 14-06-2001
(Annex-J/1).
General Power of Attorney dated 1406-2001 (Annex- J/2).
Memorandum of Deposit of Title
Deeds dated 01-01-2003 (AnnexJ/3).
Memorandum of Deposit of Title
Deeds dated 08-01-2005 (AnnexJ/4).
Affidavit by the Mortgagor dated 1406-2001 (Annex- J/5).
Letter of Continuity of Mortgage
dated 08-01-2005 (Annex- J/6).
Transfer Letter dated 29-061996(Annex- J/7) & NOC dated
25-04-2001 (Annex- J/8) issued by
DHA. Original Transfer Letter dated
29-06-1996 & NOC dated 25-042001 issued by DHA were deposited
by the above Mortgagor with the
Plaintiff to create equitable mortgage
in its favour on the Mortgaged
Property mentioned above .

That in consideration of and as security for the earlier Cash Finance and L/c Limit
mentioned in paras- 6 & 7 above of this Plaint as well as for the aforesaid Running
Finance, Demand Finance, FIM-II and FATR-Limit extended to and availed by Defendant
No.1 and specified in the above paras- 7 to 10 above, the Defendant Nos.1 to 4 also
executed in favour of the Plaintiff Bank the following Guarantees:
i. Guarantee dated 01-07-2001 by the Defendant No.1 (Annex-K).
ii. Guarantee dated 01-07-2001 by the Defendant No.2 (Annex-K/1).
iii. Guarantee dated 01-07-2001 by the Defendant No.3 (Annex- K /2).
iv. Guarantee dated 01-07-2001 by the Defendant No.4 (Annex- K /3).
v. Guarantee dated 01-01-2003 by the Defendant No.1 (Annex- K /4).
vi. Guarantee dated 01-01-2003 by the Defendant No.2 (Annex- K /5).
vii. Guarantee dated 01-01-2003 by the Defendant No.3 (Annex- K /6).

13

viii.
Guarantee dated 01-01-2003 by the Defendant No.4 (Annex- K /7).
ix. Guarantee dated 08-01-2005 by the Defendant No.1 (Annex- K /8).
x. Guarantee dated 08-01-2005 by the Defendant No.2 (Annex- K /9).
xi. Guarantee dated 08-01-2005 by the Defendant No.3 (Annex- K /10).
xii. Guarantee dated 08-01-2005 by the Defendant No.4 (Annex- K /11).
13.

That the Defendants No. 1 committed default and failed to pay and liquidate the Running
Finance, Demand Finance, FIM-II and FATR-Limit on their respective dates of maturities
mentioned in paras 7 to 10 above despite consistent demands made in this respect by the
Plaintiff to the Defendant No.1. Accordingly, an aggregate sum of Rs.87,832,018.00 had
become outstanding against Defendants under the aforesaid Running Finance, Demand
Finance, FIM-II and FATR-Limit as well as against the overdue mark up of the Cash
Finance.

14.

That from the above facts it is clear that all possible assistance was granted to Defendants
by the Plaintiff from time to time as aforesaid by way of providing various finance
facilities and their renewal. However, Defendant No.1 failed to reciprocate in similar
manner and failed to pay/liquidate the aforesaid outstanding amount of Rs.87,832,018.00
under the aforesaid Running Finance, Demand Finance, FIM-II and FATR-Limit as well
as against the overdue mark up of the Cash Finance. Although Defendant No.1 has been
acknowledging its liabilities from time to time but failed to pay the amounts due under
the respective facilities. Copies of the Letter dated 21-01-2006 and Letter dated 01-022006 whereby the Defendant No.1 acknowledged its liability and committed to make
payments there against are attached as Annex- L & L/1 respectively.

15.

That every effort was made by the Plaintiff Bank to recover the aforesaid outstanding
amount from the Defendant No.1 but all such efforts were wasted as it failed to pay the
aforesaid sum of Rs.87,832,018.00 that has become outstanding against the aforesaid
Running Finance, Demand Finance, FIM-II and FATR-Limit as well as against the
overdue mark up of the Cash Finance. Defendant No.1 was liable to pay the aforesaid
amount but failed to pay the same despite several requests from the Plaintiff Bank as
aforesaid. Due to the aforesaid default by the Defendant No.1 to pay the aforesaid sum of
Rs.87,832,018.00, Defendants have also become liable to pay the aforesaid amount in
terms of the Personal Guarantees furnished by them as mentioned in para 12 above and
attached hereto as Annex-K to Annex-K/11 above that were executed by the said
Defendants in consideration of and as security inter alia for the earlier Cash Finance,
Running Finance, Demand Finance, FIM-II and FATR-Limit. Through the instant suit
demand of the guaranteed amounts under the aforesaid Guarantees is being made from
the Defendant Nos. 1 to 4. Defendants are also liable to pay the suit amount under the
mortgages created by them on their personal assets mentioned in paragraph-11 above and
the suit amount is recoverable from them through enforcement and sale of the aforesaid
mortgaged properties

14

16.

That the cause of the action against the Defendant No.1 arose firstly when the aforesaid
limits of the Letter of Credit (Sight) of Rs.100.00 million (L/c Limit) and Cash Finance
mentioned in para-6 above as well as the Running Finance, Demand Finance, FIM-II and
FATR-Limit were granted to the Defendant No.1, secondly when the Defendant No.1
committed default and failed to adjust the over due mark-up against the aforesaid Cash
Finance as well as failed to pay and liquidate Running Finance, Demand Finance, FIM-II
facilities and FATR-Limit on their respective dates of maturity despite demands. Each
payment by the Defendant No.1 in acknowledgement of its liability has also constituted a
cause of action. Due to aforesaid default by the Defendant No.1, the cause of action
against the Defendant Nos. 2 to 4 has arose last week. The cause of action still continues
as the Defendant Nos.1 to 4 have failed to discharge their obligations under various
agreements and security documents/guarantees/mortgages.

17.

That the cause of action has arisen within the territorial jurisdiction of this Honourable
Court. Cash Finance, Running Finance, Demand Finance, FIM-II facilities and FATRLimit that are subject matters of the suit were disbursed and repayable in Lahore.
Defendant No.1 has its principal place of business at Lahore and the properties and assets
mortgaged by the Defendants No.1 to 4 as stated in paragraph-11 (I) to (IV) of this Plaint
are situated in Lahore which is within the territorial jurisdiction of this Honourable Court.
Defendant Nos.1 to 4 also reside at Lahore. Therefore, this Honourable Court can
adjudicate upon this suit.

18.

That the titled suit for the purposes of court fee and jurisdiction is valued at Rs.
Rs..87,832,018.00 and court fee of Rs.15, 000.00 has been affixed on this plaint.
In view of the above facts and submissions, the Plaintiff most respectfully prays that:

a)

A decree in the sum of Rs.87,832,018.00 may kindly be passed in favour of the Plaintiff
against Defendant Nos.1 to 4 jointly and severally with all costs, charges and expenses
payable under the financing Agreements/Security Documents along with cost of fund in
terms of Section 3 of the Financial Institutions (Recovery of Finances) Ordinance, 2001
from the date of default to the date of payment through enforcement of mortgages and
sale of the mortgaged properties and sale of the hypothecated and pledged stocks and
other assets of the Defendant Nos.1 to 4, as well as by enforcement of the aforesaid
Personal Guarantees.

b)

An order be made declaring that the Plaintiff is entitled to take possession of and recover
the properties of Defendants No.1 to 4 that are mortgaged and or under any charge in
favour of the Plaintiff Bank and detailed in the paras 7 to 11 of the plaint as well as
pledged stocks directly and if need be with the assistance of this Court.

15

c)

The Defendants No.1 to 4 be restrained from alienating the mortgaged properties,

hypothecated assets and pledged stocks as well as their all other immoveable and
moveable assets and all such assets be attached.

d)

Receiver(s) be appointed over the affairs of the business of the Defendant No.1 i.e. Sardar
Enterprises, 313 Circular Road, Badami Bagh, Lahore.

e)

A local commission be appointed to make a complete inventory of all moveable assets

concerning and forming part of the business of the Defendant No.1 i.e. Sardar
Enterprises, 313 Circular Road, Badami Bagh, Lahore as well as pledged stocks lying at
the godowns situated at Sidiquee Street opposite Sheranwalla Gate Lahore and Tanveer
Bonded Ware House situated at Gari Shahoo, Lahore.

f)

The Defendant Nos. 1 to 4 be directed to file personal wealth statements before this
Honourable Court.

g)

Any other relief, which this Honourable Court deems fit and appropriate in the
circumstances of the case may also be granted.

h)

Costs of the suit may kindly also be granted.

PLAINTIFF
(Allied Bank Limited)
through

SALMAN AKRAM RAJA

M.A. (Cantab) LL.M (London)
LL.M (Harvard)
Advocate High Court

WALID IQBAL
B.S. (Wharton) M. Phil.(Cantab)
LLB (Pb) LL.M (Harvard)
Advocate High Court

MIRZA MUZAFFAR AHMED

Advocate High Court

NADEEM SHEHZAD HASHMI

Advocate High Court

33-C, Main Gulberg, Lahore.

VERIFICATION:Verified on oath dated ________ on _______ 2007 that contents of paragraphs 1 to 15 above are
true to the best of our knowledge and contents of paragraphs 16 to 18 above are correct to the
best of my information which we believe to be true.
DEPONENT
1)D/Banking/ABL -Sardar(1-14)

16

1)D/Banking/ABL- Sardar (1-14)

17

BEFORE THE HONOURABLE LAHORE HIGH COURT, LAHORE

C.M. NO.__________/2007
IN
C.O.S. No.___________/2007
Allied Bank Limited
Plaintiff
Versus
Mr Jawad Rashid and others.

APPLICATION

under Section 16 of the Financial Institutions (Recovery of

Finances) Ordinance, 2001 read with all other enabling
provisions of law.

Respectfully Sheweth:1.

That the Plaintiff has filed a Civil Original Suit for recovery of Rs. 379,797,509.00
as outstanding on 31-5-2005 against the Defendants mentioned in the plaint,
which is pending before this Honourable Court. The Defendant No.1 mortgaged
and hypothecated/charged their land, all fixed assets and machinery, stocks, goods
to secure the finances made available to and presently due form Defendants to the
Plaintiff. Similarly, Defendant Nos.2,3,5,6 & 11 also mortgaged their properties
with the Plaintiff as security for the facilities subject matter of the titled suit

2.

That having come to know that the Plaintiff is filing the titled suit the Defendants
have started removing/misappropriating machinery etc. charged/hypothecated with
the Plaintiff and are taking further surreptitious steps to sell the mortgaged
properties mentioned in the plaint and also described below:
A.
Factory/ Mill premises of the Defendant No.1 on the land measuring 100 Kanals
bearing Khatoni Nos.236, 239,240 and 241 and Khasra Nos 19,20,21,22,23 and
24 situated at Mauza Noorpur Tehsil and District, Sheikhupura.

18

B.
House/ Bungalow No.5 Survey No.203/5 measuring 666.66 sq. yards
situated at Bridge Colony, Lahore Cantt, Lahore together with its all present and
future constructions, fitting, fixtures and installations thereon owned by Mst
Tahira Zaman (Defendant No.6).

C.
House/ Bungalow No.5/A Survey No.203/5-A measuring 666.66 sq. yards
situated at Bridge Colony, Lahore Cantt, Lahore together with its all present and
future constructions, fitting, fixtures and installations thereon owned by Mst Tahira
Zaman (Defendant No.6).

D.
Land measuring 16 Kanals 17 Marlas bearing Square Nos.191 & 192, Kila
Nos.16 min, 17min, 19min, 20/1 min & 20/2min, Khewat Nos. 47min &180min,
Khatooni Nos. 112min, 147min, 196min & 932min as per Jamabandi for the Year
1989-90 situated at Mauza Kharianwala Tehsil and District Sheikhupura together
with all present and future constructions, factory, mill, machinery, plant,
equipment, fixtures and fittings etc. constructed and installed thereon owned by
M/s T.Z Chemicals (Pvt.) Ltd (Defendant No.11).
E.
Plots No.103/1, 103/2 and 103/3 bearing Survey Nos.198/N/A, 198/N/B and
198/N/C measuring 1956.75 sq. meters, 418.05 sq. meters and 418.05 sq. meters
respectively situated in St. John Park, Lahore Cantt, Lahore together with its all
present and future constructions, fitting fixtures, installations, etc owned by M/s.
Momin Qamar, Kamran Khan and [Link] Qamar (Defendant Nos.2, 3 &
5).
F.
Plot No.103 bearing Survey No.198/N measuring 2239 sq. meters situated in St.
John Park, Lahore Cantt, Lahore together with its all present and future
constructions, fitting fixtures, installations, etc owned by M/s. Momin Qamar,
Kamran Khan and [Link] Qamar (Defendant Nos.2, 3 & 5).

3.

That if the Respondents/Defendants sell the properties, machinery and plant of the
Defendant No.1 mortgaged and hypothecated with the Plaintiff as specified in para
2 (A) above or sell or alienate in any manner other mortgaged properties as
specified in para 2 (B to F) above as well as in the plaint, the Plaintiff will suffer
an irreparable loss.

4.

It is submitted that the Respondents/Defendants in violation of all their legal,

contractual and moral obligations did not repay due amount to the Plaintiff Bank.
The Defendants have been syphoning away and mis-appropriating the funds of the
Respondent/Defendant No.1 in an illegal manner for their personal benefits
causing great loss to the Plaintiff who had granted and finance etc. to Defendant

19

No.1 as mentioned in the plaint.

Presently as on 31-0-2005 a sum of Rs.

379,797,509.00 is due from the Defendants to the Plaintiff.

It is, therefore, most respectfully prayed that this Honourable Court may be
pleased to order:
(a)

For attachment before judgment of all the mortgaged and hypothecated properties
and assets specified in para 2 (A to F) above;

(b)

For restraining the Respondents from selling or disposing of in any manner

properties of the Respondent/Defendant No.1 specified in para 2 (A) above or
from creating any kind of charge thereon;

(c)

For restraining the Respondents/Defendants 2,3,5,6 & 11 from alienating or

transferring any of their aforesaid mortgaged properties specified in para 2 (B to
F) above.

(d)

For appointing before judgment of the receiver of the assets and properties of the

Defendant/ Respondents Nos.1 and 11 as specified in para 2 (A & F) above and to

authorize the said receiver to take over possession of the said properties and
running of the factory of the Defendant/ Respondents Nos.1 and 11.
(e)

Authorizing the Applicant Bank and/or the Receiver to post security guards at the
aforesaid factory premises of the Defendant/ Respondents Nos.1 & 11.

(f)

To appoint Local Commissioner to make a complete inventory of all the stocks

and immovable assets of the Defendant/ Respondent No.1 and file the same in this
Honourable Court.

(g)

Any other order deemed fit and proper may also kindly be passed by this
Honourable Court.

PLAINTIFF (ABL)
through

SALMAN AKRAM RAJA

Advocate High Court
MIRZA MUZAFFAR AHMED

Advocate High Court

33-C, Main Gulberg, Lahore.

20

1)D/Banking/ABL-Flying/ABL-Flying (14-17)

21

22

BEFORE THE HONOURABLE LAHORE HIGH COURT, LAHORE

C.O.S. No.___________/2006
Allied Bank Limited

Versus
M/s _______________________.

INDEX
S.N
A
B
C
D
E
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37

DESCRIPTION
Stamp Paper worth Rs.____________
Suit for Recovery & Stay Application with
Affidavit
Fard Pata
Form Under Order 7 Rule 14
Form Under Order 13 Rule 1 CPC
Copies of the Power of Attorney
Copy of the Memorandum and Articles of
Association
Sanction Advice

Annexure

DATE

Page
A-B

23

38
39
40
41
42
43
44
45

PLAINTIFF
through
SALMAN AKRAM RAJA
Advocate
)

24

25

FORM UNDER ORDER 13 RULE 1 CPC

S.N

DESCRIPTION

Annexure

DATE

Page

PLAINTIFF
through
SALMAN AKRAM RAJA
Advocate
1)D/Banking/HBL-Zuchini(19-20)

26

Allied Bank
Ref: XYZ

July 31, 2006

PROFILE OF M/S. SARDAR ENTERPRISES

M/s Sardar Enterprises, a proprietorship concern having its registered address at 313, Circular
Road General Bus Stand, Badami Bagh, Lahore, engaged in the business of import and export of
automobiles tyres and tubes since 1981. The salient particulars of the firm are as under:
Name of the Firm
Corporate Status
Registered Address
Name of Proprietor
C.N.I.C.
N.T.N.
Account No.
Date of A/C Opening with ABL

M/s Sardar Enterprises

Proprietorship
313, Circular Road, General Bus Stand,
Badami Bagh, Lahore.
Mr. Jawad Rashid S/o Sh. Muhammad
Rashid
35200-1439702-5
05-16-0148966-6
7183-2
29-03-2001

M/s Sardar Enterprises indulged in the business of import of tubes/tyres of M/s Good Year,
Hankook, Continental, Dunlop and Yokohama brands. They are approved supplier/Contractor of
Army and also meet the local market requirements. Prior to our bank, the party was availing
credit facilities from Prudential Commercial Bank Limited and Doha Bank Limited. Later on,
party approached our bank B/O Badami Bagh, Lahore for some credit lines. The requested
proposal of the party has been initially sanctioned vide letter No. CO/CD-P/FS/1021 dated
30.6.2001 detail as under:
NATURE & AMOUNT OF LIMIT
Letter of Credit (Sight)
Running Finance
Cash Finance

Rs.100.000 (M)
Rs. 30.000 (M)
Rs. 25.000 (M)

Later on the limit of the party was renewed in 2002 and subsequently in 2003 to avoid
classification but due to poor repayment behaviour of the party, the account became stuck up and
eventually classified. After one year default, the party requested us for restructuring the account
and was restructured vide letter CO/SAMD/MTR/5330 dated 22.12.2004 valid upto 31.12.2005
detail as under.

Allied Bank
Ref: XYZ

July 31, 2006

27
Nature of
Finance/Facilities
Running
Finance
(Renewal)
L/C Sight (Renewal
with reduction)

Amount of
Limit

Margin

Mark Up / Commission

Rs.30.000 M

25% on
stock

Rs.50.000 M

NIL

4% P.A. plus average 6

months KIBOR rate with
floor of 7% PA
As per Banks latest
schedule of charges

FIM 60 days (fresh)

Rs.20.000 M
DF-I
(fresh)
Conversion
of
existing cash finance
limit of Rs.25.000 M
FIM-II
(fresh)
Conversion
of
existing forced FIM
and
additional
Rs.8.000 M
FATR
45
days
(fresh) for obtaining
delivery of stocks
held against forced
FIM
/
Demand
Finance only

20% cash
at the time
of each
FIM

Expiry

Date of Final
Adjustment

31.12.2005

30.01.2006

31.12.2005

4% P.A. plus average 6

months KIBOR rate with
floor of 7% P.A.

31.12.2005

Rs.22.000 M

NIL

5.00% P.A. plus average 6

months KIBOR RATE
floor of 10%

30.06.2006

Rs.24.000 M

NIL

6% P.A. plus average 6

months KIBOR rate floor
o 10% P.A.

31.07.2005

Rs.7.000 M

25% on
stocks

4% P.A. plus average 6

months KIBOR rate with
floor of 7% P.A.

31.12.2005

Date of
maturity /
Lodgement of
each bill
60 days from
creation of each
FIM
One and half
year from the
date of creation
of D.F.
Six months
from the date of
creation of
FIM-II
31.12.2005

** DF-I represents conversion of existing outstanding cash finance outstanding for Rs.22.000 M
to be repaid in 06 quarterly installments of Rs.3.670 M each, commencing from 31.03.2005
along with mark up thereupon to be recovered on quarterly basis.
FIM-II represents conversion of outstanding Forced finance and additional amount of Rs.8.000
M approximately for payment of Government taxes / Custom Duties to be repaid within six
months from the date of disbursement, but not later than 31.07.2005 along with mark up
thereupon.

Allied Bank
Ref: XYZ

July 31, 2006

Security Clause:
Principal Security:
1.

Running Finance:
Hypothecation of Stock of Tyres and Tubes duly insured with banks clause.

2.

L/C Sight:
Lien on valid import documents covering import of tyres and tubes H.R. Coils & Zine.

3.

FIM (60 DAYS):

20% cash margin at the time of creation of each FIM and banks lien on goods imported
through the bank, to be pledged at Public Bonded Warehouse under control of Banks
approved Muaqaddam. This facility will be allowed against pledge of fresh imported
marketable stock.

28

Principal of Security against DFI, FIM-II and FATR:

1. DF-I and FIM-II are to be secured against pledge of stock already held by the bank
under the head cash Finance and Forced FIM valuing of Rs.44.400 M as per stock
evaluation reports dated 29.06.04 submitted by M/s Dimen Associates Pvt. Ltd. PBA
approved valuer (Stock pledged to be delivered through delivery order against
appropriate amount.
2. Against FATR facility, delivery orders will be issued to the borrowers on revolving
basis to get the pledged stock against Forced FIM and DFI
Collateral Securities:
1. Token registered mortgage for Rs.0.100 M and remaining amount equitable
mortgage of following four properties:
Description of Property
Residential Property H. No. 230,231 Block N, New
Samanabad Scheme Lahore in the name of Sardar
Begum measuring 1 Kanal 4 Marlas.
Bungalow No. 304 K, Block Phase # 1, D.H.A.
Lahore in the name of Mrs. Naveed Jamal
measuring 2 Kanals
Double Storey/Commercial shop / show room at
312 Circular Road, Lahore in the name of Mr. Javed
Rashid
Shop No. 14 Dina Nath mansion Maclagor Road,
Nila Gumbad, Lahore owned by Sheikh Jawed
Rashid measuring 2 Marlas
Total:

Named of PBA
evaluator & date
of Valuation
Dimen Associates
Pvt. Ltd. dated
19.11.2004
Dimen Associates
Pvt. Ltd. dated
19.11.2004
Dimen Associates
Pvt. Ltd. dated
19.11.2004
Dimen Associates
Pvt. Ltd. dated
19.11.2004

Market
Value

Forced Sale
Value

10.481

9.000

23.066
20.000
34.965

30.000

21.937

19.000

90.449

78.000

Allied Bank
Ref: XYZ

July 31, 2006

Detail of outstanding liabilities of the Party As On 12.07.06

M. UP
IN
MEMORANDUM
ACCOUNT
31.03.06

Period of Mark up
Recoverable

Nature of Limit

Principal

RF

29.955

10.011

01.07.03 to 30.06.06

DF

9.582

8.939

01.07.02 to 26.02.05
and 01.10.05 to
30.06.06

FIM II

11.837

4.940

Mark up on old
forced FIM before

29

restructuring and
upto 30.06.06
FATR

6.620

0.750

TOTAL

57.994

24.640

21.10.05 to 30.06.06

That through aforesaid Offer Letter dated 28-08-2003 (Annex-C above) the Defendant
No.1 was also granted a limit for establishment of Letter of Credit for Import of Tyres
and Tubes Inland for the aggregate amount equivalent to US$. 173,500. The aforesaid
Limit was also continued in the limit of Rs.80.0 million through the aforesaid Offer Letter
dated 2-08-2004 (Annex- C/2 above). Against this limit of Letter of Credit, Plaintiff
established on the request and on behalf of the Defendant No.1 various Letters of Credit.
The Defendant No.1 undertook to make available the funds required for payment under
the L/Cs to be established at the request of Defendant No.1 and to take all steps
necessary for the release of the documents at the appropriate time.

30

Particulars of FIM A/C M/s Sardar Enterprises as per Section 9(3) of the Ordinance, 2001 are
as under:
(i) Principal amount of finance availed by
Defendant No. 1
(ii) Principal Amount paid by the
Defendant No. 1

23,978,559

Dates of Payments/Adjustment

Amount paid in Rupees

11,961,764

=Statement of A/C attached=

(iii) Principal Amount payable ( i-ii )
(iv) Mark up payable upto 31-01-07
(v) Mark up paid

Rs. 11,836,795
Rs. 6,932,275
Rs. 523,931

Dates of Payments/Adjustment

Amount paid in Rupees

=Statement of A/C attached=

(vi) Balance mark up upto 31-01-07 (iv-v)

Rs. 6,408,344

(vii) Outstanding principal

and markup payable (iii+vi)

Rs. 18,245,139

31
Particulars of Running Finance A/C M/s Sardar Enterprises as per Section 9(3) of
the Ordinance, 2001 are as under:
(i) Principal amount of finance
availed by Defendant No. 1
(ii) Principal Amount paid by the
Defendant No. 1

Rs. 259,345,258

Dates of Payments/Adjustment

Amount paid in Rupees

Rs. 229,388,523

=Statement of A/C attached=

(iii) Principal Amount payable ( i-ii )

(iv) Mark up payable upto 31-01-07
(v) Mark up paid

Rs. 29,956,735
Rs. 21,671,046
Rs. 9,174,761

Dates of Payments/Adjustment

Amount paid in Rupees

=Statement of A/C attached=

(vi) Balance mark up up to 31-01-07 (iv-v)

Rs. 12,496,285

(vii) Outstanding principal

and markup payable (iii+vi)

Rs. 42,453,020

32
Particulars of Demand Finance A/C M/s Sardar Enterprises as per Section 9(3) of the
Ordinance, 2001 are as under:
(i) Principal amount of finance availed by
Defendant No. 1
(ii) Principal Amount paid by the
Defendant No. 1

Rs. 22,692,616

Dates of Payments/Adjustment

Amount paid in Rupees

Rs. 13,109,736

=Statement of A/C attached=

(iii) Principal Amount payable ( i-ii )

(iv) Mark up payable upto 31-01-07
(v) Mark up paid

Rs. 9,582,880
Rs. 11,070,557
Rs. 1,279,884

Dates of Payments/Adjustment

Amount paid in Rupees

=Statement of A/C attached=

(vi) Balance mark up up to 31-01-07 (iv-v)

(vii) Outstanding principal
and markup payable ( iii+vi )

Rs. 9,790,673
Rs. 19,373,553

33
Particulars of F.A.T.R A/C M/s Sardar Enterprises as per Section 9(3) of the Ordinance, 2001
are as under:
(i) Principal amount of finance availed by
Defendant No. 1
(ii) Principal Amount paid by the
Defendant No. 1

Rs. 6,620,099

Dates of Payments/Adjustment

Amount paid in Rupees

Rs. NIL

=Statement of A/C attached=

(iii) Principal Amount payable ( i-ii )

(iv) Mark up payable upto 31-01-07
(v) Mark up paid

Rs. 6,620,099
Rs. 1,140,207
Rs. NIL

Dates of Payments/Adjustment

Amount paid in Rupees

=Statement of A/C attached=

(vi) Balance mark up upto 31-01-07 (iv-v)

Rs. 1,140,207

(vii) Outstanding principal

and markup payable (iii+vi)

Rs. 7,760,306

34

Mr. Hamid Zaidi Officer Credit ABL Badami Bagh Lahore.

From. Mirza Muzaffar Ahmad Advocate/Zafar, Iqbal & Raja
Mr. Hamid Zaidi. As discussed over telephone on 05-06-2007 please provide,
A.

A copy of the Statement of Accounts of the Cash Finance bearing loan

Account

No.______

establishing

that

on

26-02-2005

sum

of

Rs.22,010,880.00 was outstanding debit balance against the principal amount

of Cash Finance which was adjusted on the same day by disbursement of
Rs.22,010,880.00 against the Demand Finance.
B.

Please arrange from concerned/trade department bold documents.

Letter of Credit No.2003/8406-8/LBBB/0212 dated _______.
(i)

Letter of Credit No.2003/8406-8/LBBB/0212 dated ______

(Annex-E).

(ii)

Application and Agreement for Irrevocable Documentary

Credit dated_____ (Annex-E/1).
(a).

Consignment No.1:
i. Commercial Invoice dated 03-04-2003 (Annex-E/1A).
ii. Packing List dated 03-04-2003 (Annex-E/1B).
iii. Bill of Lading dated 17-04-2003- (Annex-E/1C).
iv. Bill of Exchange/Draft dated ______ (Annex-E/1D).
v) Statement of Account (Annex-E/1E).

(b).

Consignment No.2:
i. Commercial Invoice dated 31-03-2003 (Annex-E/2A).
ii. Packing List dated 31-03-2003 (Annex-E/2B).
iii. Bill of Lading dated 28-03-2003 (Annex-E/2C).

iv. Bill of Exchange/Draft dated ______ (AnnexE/2D).

v. Statement of Account (Annex-E/2E).
(c).

Consignment No.3:
i. Commercial Invoice dated 31-03-2003 (Annex-E/3A).
ii. Packing List dated 31-03-2003 (Annex-E/3B).
iii. Bill of Lading dated 28-03-2003 (Annex-E/4C).

iv. Bill of Exchange/Draft dated ______ (AnnexE/4D).

v. Statement of Account (Annex-E/4E).
(d).

Consignment No.4:
i. Commercial Invoice dated 30-03-2003 (Annex-E/4A).
ii. Packing List dated 31-03-2003 (Annex-E/4B).
iii. Bill of Lading dated 28-03-2003- (Annex-E/4C).
iv. Bill of Exchange/Draft dated ______ (Annex-E/4D).
v. Statement of Account (Annex-E/4E).

Letter of Credit No. 2003/8408-0/LBBB/0212 dated _______.

35

(i)
(ii)

Letter of Credit No. 2003/8408-0/LBBB/0212 dated

_______ (Annex-E/5A).
Application and Agreement for Irrevocable
Documentary Credit dated_____ (Annex-E/5B).

(iii)
(iv)
(v)

Commercial Invoice dated 11-04-2003 (Annex-E/5C).

Packing List dated 11-04-2003 (Annex-E/5D).
Bill of Lading dated 21-04-2003 (Annex-E/5E).

(vi)

Bill of Exchange/Draft dated ______ (Annex-E/5F).

(vii) Statement of Account (Annex-E/5G).

Letter of Credit No. 2003/8409-1/LBBB/0212 dated _______.
(i)
(ii)

Letter of Credit No. 2003/8409-1/LBBB/0212 dated

_______ (Annex-E/6A).
Application
and
Agreement
for
Irrevocable
Documentary Credit dated_____ (Annex-E/6B).

(iii)
(iv)
(v)

Commercial Invoice dated 25-07-2003 (Annex-E/6C).

Packing List dated 25-07-2003 (Annex-E/6D).
Bill of Lading dated 01-08-2003 (Annex-E/6E).

(vi) Bill of Exchange/Draft dated ______ (AnnexE/6F).

(vii) Statement of Account (Annex-E/6G).
Packing List dated 25-07-2003 (Annex-E/6D) under L/c No. 2003/84217/LBBB/0212 (Annex-E/6A).

(i)
(ii)

Letter of Credit No. 2003/8421-7/LBBB/0212

dated _______(Annex-E/7A).
Application and Agreement for Irrevocable
Documentary Credit dated_____ (Annex-E/7B).

(iii)
(iv)
(v)

Commercial Invoice dated 19-06-2003 (Annex-E/7C).

Packing List dated 19-06-2003 (Annex-E/7D).
Bill of Lading dated 29-06-2003 (Annex-E/7E).

(vi)
Bill of Exchange/Draft dated ______ (AnnexE/7F).
(vii) Statement of Account (Annex-E/7G).

36

Letter of Credit No. 2003/8423-9/LBBB/0212 dated _______.

(i)
(ii)

Letter of Credit No.2003/8423-9/LBBB/0212 dated

_______(Annex-E/8A).
Application and Agreement for Irrevocable Documentary
Credit dated_____ (Annex-E/8B).

(iii)
Commercial Invoice dated 04-07-2003 (Annex-E/8C).
(iv)
Packing List dated 04-07-2003 (Annex-E/8D).
(v)
Bill of Lading dated 13-07-2003 (Annex-E/8E).
(vi)
Bill of Exchange/Draft dated ______ (Annex-E/8F).
(vii) Statement of Account (Annex-E/8G).
Letter of Credit No. 2003/8424-0/LBBB/0212 dated _______.
(i)
Letter of Credit No.2003/8424-0/LBBB/0212 dated
_______(Annex-E/9A).
(ii)
Application and Agreement for Irrevocable Documentary
Credit dated_____ (Annex-E/9B).
(iii)
(iv)

Commercial Invoice dated 28-05-2003 (Annex-E/9C).

Packing List dated 28-05-2003 (Annex-E/9D).

(v) Bill of Lading dated 30-05-2003 (Annex-E/9E).

(vi) Bill of Exchange/Draft dated ______ (AnnexE/9F).
(vii) Statement of Account (Annex-E/9G).

37

4.

That Defendant Nos. 1 to 4 executed Personal Guarantees and mortgaged their properties
with the Plaintiff as security for the facilities subject matter of the titled suit.

That Defendant Nos. 1 to 4 executed Personal Guarantees in favour of the Plaintiff Bank in
consideration of the financial facilities extended to and availed by Defendant No.1/ M/s
Sardar Enterprises from the Plaintiff Bank. Defendant Nos.1 to 4 also mortgaged their
properties with the Plaintiff as security for the facilities subject matter of the titled suit
pledged stocks lying at the godowns situated at Sidiquee Street opposite
Sheranwalla Gate Lahore and Tanveer Bonded Ware House situated at
Gari Shahoo, Lahore

38

Note for personal use.

1. Sanction Advice for original facilities not available. (First Sanction Advice No.
CO/CD-P/FS/1021 dated 30-6-2001 (Annex-B) made available indicates that
facilities were inter alia being renewed.
2. Documents under Sanction Advice [Link]/CD-P/FS/1021 dated 30-6-2001 (AnnexB) for Running Finance of Rs.30.00 million (Running Finance) and Cash Finance to
the tune of Rs.25.00 million are undated and blank. Documents date should be 01-072001.
3. Facilities and their renewal:
(I)

Facilities of Running Finance, Cash Finance and L/c limit approved vide
above Sanction Advice dated 30 06-2001 were valid upto 30-6-2002,

(II)

Above facilities were renewed six months after maturity i.e.30-6-2002

vide approval No. CO/CD-P/MNA/3188 dated 31.12.2002 (Annex-B/2).
The renewed facilities were valid upto 30-06-2003 (only for six months).
However, apparently in the Financing Agreements, marked up price
includes mark up for one year.

(III)

About one & half year after expiry/ maturity dates of 30-06-2003 above
three

facilities

were

restructured/rescheduled

vide

approval

No.

COS/SAMD/MTR/5330 dated 22.12.2004 (Annex-B/4) and the Facility

Offer Letter No. BBL/FE/2004/754 dated 23-12-2004 (Annex-B/5) as
amended by the Sanction Advice [Link]/SAMD/MTR/745 dated
07.02.2005(Annex-B/6),
(a) Running Finance was again renewed and continued till 31-12-2005,
(b) Cash Finance (principal amount) was converted into a Demand
Finance of Rs. 22.00 m. Over due mark up of Cash Finance has been
included in the Statement of account of mark up pf Demand Finance
and being claimed in suit.
(c) Regularization of Forced FIM (FIM-II). Under L/c Limit under
Advice No. CO/CD-P/MNA/3188 dated 31.12.2002 (Annex-B/2
above) Plaintiff established L/c for import of Tyres and Tubes. On
receipt of the shipping documents under six (6) L/Cs Borrower failed
to get released the imported goods by making any corresponding
payment thereof and resultantly ABL had to make payment to the
beneficiaries of the said 6 L/Cs by creating forced FIM which was
regularized by grant of FIM-II of Rs.24.00 million.
Documents not provided,
* Bill of Exchange/Drafts received with shipping
documents (ABL says that as they are drawn on ABL there
is no need to provide the same,

39

* Packing List dated 25-07-2003 (Annex-E/6D) under L/c

No. 2003/8421-7/LBBB/0212 (Annex-E/6A).
*Bill of Lading dated 30-05-2003

(Annex-E/9E) under

Letter of Credit No.2003/8424-0/LBBB/0212 (AnnexE/9A).

(d)

FATR-Limit of Rs.7.00 million. Financial limit of Finance

Against Trust Receipt (FATR-Limit) of Rs.7.00 million.
This Limit was granted for obtaining delivery by the
Defendant No.1 of the stocks pledged with the Plaintiff
against the aforesaid Demand Finance of Rs.22.00 million
and FIM-II of Rs.24.00 million mentioned above.

4. Almost 50% documents are undated, contains blank spaces and not witnessed.

(i)
(ii)
(iii).
(iv)
(v)

Memorandum of Deposit of Title Deed

dated 30-06-2001 (Annex-G).
Deed of Mortgage dated 14-06-2001
(Annex-G/1).
General Power of Attorney dated 14-062001 (Annex-G/2).
Memorandum of Deposit of Title Deeds
dated 31-12-2002 (Annex-G/3).
Memorandum of Deposit of Title Deeds
dated 08-01-2005 (Annex-G/4).

(i)
(ii)

(iii).
(iv)
(v)

Memorandum of Deposit of Title

Deed dated 30-06-2001 (Annex-H).
Deed of Mortgage dated 14-06-2001
(Annex- H/1) registered with the
Sub-Registrar Lahore Saddar, Lahore
on 15-09-2001.
General Power of Attorney dated
14-06-2001 (Annex- H/2).
Memorandum of Deposit of Title
Deeds dated 31-12-2002 (AnnexH/3).
Memorandum of Deposit of Title
Deeds dated 08-01-2005 (AnnexH/5).