KARACHI, July 22: A division bench of the Sindh High Court ordered on Monday the issuance of notices to the HBL as well as to two other respondents in an appeal filed by Chaudhry Mohammed Ashraf, who challenged the encashment of a cheque for Rs3,339,765 which pertained to the partnership firm Dolphin Auto Industries and its partners.

The division bench comprised justice Ataur Rahman and justice Afzal Soomro.

The appellant is a guarantor/judgment debtor of Habib Bank and a partnership firm, M/s Dolphin Auto Industries.

The cheque was encashed against the HBL’s incentive scheme on the direction of the Banking Court No 1 at Karachi which dismissed the petition under order 21 rule 58 CPC filed by the partnership firm M/s Dolphin Auto Industries.

Advocates Saalim Salam Ansari and Malik Nasir Mehmood, counsel for the appellants, contended before the court that the Banking Court No 1, without holding an inquiry and any investigation (s), had passed the order to release the cheque which did not pertain to the judgment debtor, Chaudhry Mohammed Ashraf, only. It also pertained to others, who were a partnership firm and another partner, Ahmed Shuja Pasha, who were not the judgment debtors before the Banking Court No 1.

The counsel further contended that the partnership firm and its partners Chaudhry Mohammed Ashraf and Ahmed Shuja Pasha obtained the cheque in an execution proceeding from the Nazir of the Sindh High Court and the cheque’s amount pertained to a decree which was result of a civil suit before the SHC filed by the partnership firm and its partners against some defendants.

The HBL had filed a suit and obtained a decree against one of the partners and another person as well as Dr Arshad Malik, the mortgagor.

The objections/petition under order 21 Rule 58 CPC was filed by the appellant No 2 (the partnership firm), which was dismissed by the Banking Court No 1 without holding the inquiry/ investigation which was the requirement of the law/rules, the appellant’s counsel contended.

The cheque was directed to be released to the HBL, to be adjusted against the principal amount as per the HBL’s incentive scheme by the orders of the Banking Court No 1.