M/s: BRR Guardian Modaraba (formerly Guardian Modaraba) has filed a recovery suit in Banking Court Karachi against Transmission Engineering Industries Limited and Millat Tractors Limited for a sum of Rs.33,540,393/-.
According to details M/s: BRR Guardian Modaraba is a financial institution in terms of the Section 2(a) (ii) of the Financial Institutions (Recovery of Finances) Ordinance 2001 and running business of leasing of movable assets and other permissible financial business transactions. While Defendant M/s: Transmission Engineering Industries Limited is a Public Limited Company being run through its Managing Director Mr. Ausaf Hussain Agha.
In order to meet the business requirements the defendant approached the Plaintiff for Musharaka facility and entered into a Musharaka Agreement subject to execution of continuing personal guarantees amongst defendants Mr. Fasih Hussain Agha, Ausaf Hussain Agha and Muhammad Aslam Khan as Guarantors.
Initially, the plaintiff provided Musharaka Finance Facility to the extent of Rs.5,000,000 (rupees five million only) to be used by the defendant for its business purpose and the defendant agreed to repay within 3 monthly installments on the basis of 18 percent profit per annum.
After availing the said facility M/s: Transmission Engineering Industries Limited, in order to assure the payment of the rentals of the aforesaid facility agreed and entered into a Deed of Assignment dated 24-03-2003 with the other defendant M/s: Millat Tractors Limited against the supply of parts by Transmission Engineering Industries Limited to Millat Tractors Limited. It was clearly mentioned in the said Deed of Assignment that the payments to be made by Millat Tractors Limited to Transmission Engineering Industries Limited are hereby assigned to the plaintiff, but the defendants have badly failed to honor their commitments and fulfill their financial obligations in terms of the said Deed of Assignment, for the reasons known to both the defendants as Millat Tractors Limited has not made any payment whatsoever to the plaintiff even after the execution of the said Deed of Assignment.
The defendant after availing the said facility, twice approached the plaintiff for enhancement of the Bill Discounting Facility and plaintiff accepted the request of the defendant and enhanced the facility to the extent of Rs.25,000,000/- for the period of one year from April 01, 2010 to March 31, 2011.
The said facility was once again revised upon the written request of the defendants and Transmission Engineering Industries Limited executed Codicil to the Musharaka Agreement dated 31 March 2010, and the defendants in order to secure the aforesaid facility hypothecated the goods and created a charge under Section 127 of the Companies Ordinance 1984, of Rs.28,571,428/- on Banking Charge on Trade Debts, receivables and stock in trade of the company.
M/s: Transmission Engineering Industries Limited apart from the aforesaid legal documents, under Section 4 and 13 of the Negotiable Instrument Act, also executed a Promissory Note & letter of continuity wherein the defendants had undertook to pay a total sum of Rs.29,100,000/-.
In addition to the above, M/s: Transmission Engineering Industries Limited through the defendants also agreed and created charge of Rs.7,142,857/- with the SECP Charge on Trade Debts, receivables and stock in trade of the company, in favor of the plaintiff. For the said purpose, the defendant executed Letter of Hypothecation of movable assets dated 05-04-2010.
According to M/s: BRR Guardian Modaraba, the cause of action arose when the defendants neglected and failed to pay a sum of Rs.33,540,393/- which was due and payable by the defendants to the plaintiff as on 30-04-2013, as specified in the statement of account. It is therefore, prayed that this Honorable Court may graciously be pleased to pass a judgment and final decree against all the defendants jointly and severally.
-Published on page# 10 July-2013 edition of MOBILE WORLD Magazine