22/2018 I. A Asmatullah Khan Masood (Appellant) V/S The President (HBL) & Others (Respondent)
Bench: Hon'ble Chief Justice Mr. Justice Muhammad Shafi Siddiqui(Author), Hon'ble Mr. Justice Rasheed Ahmed Soomro
22/2018 I. A Asmatullah Khan Masood (Appellant) V/S The President (HBL) & Others (Respondent) Sindh High Court
Bench: Hon'ble Chief Justice Mr. Justice Muhammad Shafi Siddiqui(Author), Hon'ble Mr. Justice Rasheed Ahmed Soomro Order Date: 05-DEC-18
Section 128 of the Contract Act provides that the liability of the surety is co-extensive with that of the principal debtor unless otherwise provided by the contract. This liability is enforceable under the law and the principal borrower was also liable for the repayment of the outstanding loan. The surety has guaranteed the performance of an agreement which principal borrower failed and, hence, deduction of the amount from suretys account is within the frame of the guarantee that he executed. Though in the cross-examination, he has admitted to have received the loan amount from Habib Bank Limited, Ghotki and that he had not paid the loan amount to the concerned bank within time, however, he also stated that he stood guarantor of the haris who obtained loan. The loan application was in his name and the pass book, khasra girdwari also stood in his name duly mortgaged with the bank. The finance agreement was also executed in his name and so also in the names of haris. This evidence is neither here nor there to benefit the appellant.