Bank Alfalah Limited had filed a suit under Section 9 of the Financial Institutions (Recovery of Finances) Ordinance of 2001 for recovery of Rs94,655,183.16 along with cost of funds, sale of mortgaged properties, hypothecated goods and relief etc., against A B Engineering Private Limited and its three directors namely; Syed Haider Ali Naqvi, Syed Jaffer Ali Naqvi and Syed Baqar Ali Naqvi
Sindh High Court, Karachi has summoned M/s A. B. Engineering Private Limited and its Directors to appear on 28th May 2010 with reference to a suit filed by Bank Alfalah Limited for recovery of Rs94.655 million.
According to details Bank Alfalah Limited had filed a suit under Section 9 of the Financial Institutions (Recovery of Finances) Ordinance of 2001 for recovery of Rs94,655,183.16 along with cost of funds, sale of mortgaged properties, hypothecated goods and relief etc., against A B Engineering Private Limited and its three directors namely; Syed Haider Ali Naqvi, Syed Jaffer Ali Naqvi and Syed Baqar Ali Naqvi.
The Plaintiff Bank stated that A B Engineering a private limited company engaged in the business of automobiles and allied engineering parts, fabrication and manufacturing other related goods, had availed various finance facilities from the plaintiff bank. Three directors of defendant No.1 had executed their personal guarantees in their individual/ personal capacities in favor of plaintiff bank for the payment obligations of A B Engineering.
The lender-borrower relationship between the plaintiff bank and defendant spans over a period of almost five years. On 29-11-2009 the facilities provided to defendants got expired and they failed to fulfill their repayment commitments. Bank Alfalah on various occasions requested the defendants to pay the outstanding amounts and in this regard, various letters and notices were sent but the defendants failed to settle their liabilities towards the Plaintiff Bank.
On several requests made by the plaintiff bank to meet its liabilities, the defendants dishonestly in connivance of each other issued two (2) cheques to the plaintiff bank which were dishonored on presentation by the drawee Bank. Hence the defendants committed default towards the plaintiff and also committed offence as mentioned under Section 20 of the Financial Institutions (Recovery of Finances) Ordinance 2001. Besides this the defendants also dishonestly committed a breach of the terms of the Trust Receipts which is also punishable under Section 20 of FIO, 2001. The Plaintiff Bank also reserves the right to initiate criminal proceedings against the defendants for the offences committed by them.
The suit stated that A B Engineering by committing default in fulfillment of its obligations towards the plaintiff bank had caused substantial financial loss to the Bank and deprived the plaintiff bank of moneys that it might have earned by lending/ investing the same to other customers. As per the Books of Accounts pertaining to A B Engineering Private Limited as on 12-03-2010 a sum of Rs94,655,183.16 (Rupees Ninety Four Million six Hundred Fifty Five Thousand one Hundred Eighty Three and sixteen Paisas only) is outstanding and payable by the Defendant No.1 (A B Engineering Private Limited) towards the Plaintiff Bank (Bank Alfalah Limited).
The defendants were liable to settle their outstanding amounts but they defaulted to do so hence cost of funds as determined by SBP and as envisaged under Section 3 and 17 of the Ordinance may kindly be granted from the date of default, the plaintiff bank requested. It further said that the cause of action arose on a number of occasions when the facilities were extended/ sanctioned/ enhanced to A B Engineering Private Limited, when the financing documents were executed, when the Defendant in violation of its obligation towards the Plaintiff, when the Defendants defaulted in fulfillment of its obligations towards the Plaintiff Bank and cause of action still exists and continues till the time of the institution of this recovery suit against the Defendants.
Therefore, the Bank Alfalah Limited prayed for:
a) A decree be passed in favor of the Plaintiff Bank and against all Defendants (1 to 4) jointly and severally for payment of Rs94,655,183.16.
b) Following mortgaged property be ordered to be sold for realization of the decreetal amount;
"All that piece and parcel of land bearing the number Plot No.A-32 & A-33 and measuring 10 (Ten) acres or there about situated in the eastern Industrial Zone, Port Qasim Area, in the Registration district and Sub-District of Karachi."
c) The Hypothecated Property also be ordered to be sold for realization of the decreetal amount, which includes all movable property i.e. Plant & Machinery now or hereafter installed or to be installed/ stored or located or lying at F-563, Workers' Avenue, SITE, Karachi, F-706, Workers' Avenue, SITE Karachi, F-137, SITE Karachi and B-31, SITE Karachi.
The Hypothecated Goods includes all present and future goods, merchandise, products, stocks, stock in trade, raw materials, work in progress, finished and unfinished goods, now or hereafter stored, or located or lying at F-563, Workers' Avenue, SITE, Karachi, F-706, Workers' Avenue, SITE Karachi, F-137, SITE Karachi and B-31, SITE Karachi or any other place of storage godown in Pakistan and all such aforesaid goods in the course of transit including goods referred by and any released under trust receipts and all future goods/ stocks that may be brought into the above place of storage/ godown.
The Hypothecated receivables include; all present and future book debts and receivables, outstanding, moneys, claims, bills, contracts, engagements, securities, rights and assets.
-Staff Correspondent
According to details Bank Alfalah Limited had filed a suit under Section 9 of the Financial Institutions (Recovery of Finances) Ordinance of 2001 for recovery of Rs94,655,183.16 along with cost of funds, sale of mortgaged properties, hypothecated goods and relief etc., against A B Engineering Private Limited and its three directors namely; Syed Haider Ali Naqvi, Syed Jaffer Ali Naqvi and Syed Baqar Ali Naqvi.
The Plaintiff Bank stated that A B Engineering a private limited company engaged in the business of automobiles and allied engineering parts, fabrication and manufacturing other related goods, had availed various finance facilities from the plaintiff bank. Three directors of defendant No.1 had executed their personal guarantees in their individual/ personal capacities in favor of plaintiff bank for the payment obligations of A B Engineering.
The lender-borrower relationship between the plaintiff bank and defendant spans over a period of almost five years. On 29-11-2009 the facilities provided to defendants got expired and they failed to fulfill their repayment commitments. Bank Alfalah on various occasions requested the defendants to pay the outstanding amounts and in this regard, various letters and notices were sent but the defendants failed to settle their liabilities towards the Plaintiff Bank.
On several requests made by the plaintiff bank to meet its liabilities, the defendants dishonestly in connivance of each other issued two (2) cheques to the plaintiff bank which were dishonored on presentation by the drawee Bank. Hence the defendants committed default towards the plaintiff and also committed offence as mentioned under Section 20 of the Financial Institutions (Recovery of Finances) Ordinance 2001. Besides this the defendants also dishonestly committed a breach of the terms of the Trust Receipts which is also punishable under Section 20 of FIO, 2001. The Plaintiff Bank also reserves the right to initiate criminal proceedings against the defendants for the offences committed by them.
The suit stated that A B Engineering by committing default in fulfillment of its obligations towards the plaintiff bank had caused substantial financial loss to the Bank and deprived the plaintiff bank of moneys that it might have earned by lending/ investing the same to other customers. As per the Books of Accounts pertaining to A B Engineering Private Limited as on 12-03-2010 a sum of Rs94,655,183.16 (Rupees Ninety Four Million six Hundred Fifty Five Thousand one Hundred Eighty Three and sixteen Paisas only) is outstanding and payable by the Defendant No.1 (A B Engineering Private Limited) towards the Plaintiff Bank (Bank Alfalah Limited).
The defendants were liable to settle their outstanding amounts but they defaulted to do so hence cost of funds as determined by SBP and as envisaged under Section 3 and 17 of the Ordinance may kindly be granted from the date of default, the plaintiff bank requested. It further said that the cause of action arose on a number of occasions when the facilities were extended/ sanctioned/ enhanced to A B Engineering Private Limited, when the financing documents were executed, when the Defendant in violation of its obligation towards the Plaintiff, when the Defendants defaulted in fulfillment of its obligations towards the Plaintiff Bank and cause of action still exists and continues till the time of the institution of this recovery suit against the Defendants.
Therefore, the Bank Alfalah Limited prayed for:
a) A decree be passed in favor of the Plaintiff Bank and against all Defendants (1 to 4) jointly and severally for payment of Rs94,655,183.16.
b) Following mortgaged property be ordered to be sold for realization of the decreetal amount;
"All that piece and parcel of land bearing the number Plot No.A-32 & A-33 and measuring 10 (Ten) acres or there about situated in the eastern Industrial Zone, Port Qasim Area, in the Registration district and Sub-District of Karachi."
c) The Hypothecated Property also be ordered to be sold for realization of the decreetal amount, which includes all movable property i.e. Plant & Machinery now or hereafter installed or to be installed/ stored or located or lying at F-563, Workers' Avenue, SITE, Karachi, F-706, Workers' Avenue, SITE Karachi, F-137, SITE Karachi and B-31, SITE Karachi.
The Hypothecated Goods includes all present and future goods, merchandise, products, stocks, stock in trade, raw materials, work in progress, finished and unfinished goods, now or hereafter stored, or located or lying at F-563, Workers' Avenue, SITE, Karachi, F-706, Workers' Avenue, SITE Karachi, F-137, SITE Karachi and B-31, SITE Karachi or any other place of storage godown in Pakistan and all such aforesaid goods in the course of transit including goods referred by and any released under trust receipts and all future goods/ stocks that may be brought into the above place of storage/ godown.
The Hypothecated receivables include; all present and future book debts and receivables, outstanding, moneys, claims, bills, contracts, engagements, securities, rights and assets.
-Staff Correspondent
