Legal Case Summary

Case Details
Case ID 006d10ac-8a63-48fe-9266-757e222151fb
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Case Number Writ Petition No.1930 of 2021
Decision Date Jul 05, 2021
Hearing Date
Decision The Islamabad High Court dismissed the writ petition filed by OPI Gas (Private) Limited against the Government Holdings (Pvt.) Limited regarding the termination of their contractual relationship for the supply of Liquefied Petroleum Gas (LPG). The court held that it could not mandate the continuation of a contract that had expired, emphasizing that any grievances should be addressed through the arbitration clause present in the contract rather than through constitutional jurisdiction. The court reiterated that where an alternative remedy exists, the constitutional jurisdiction should not be invoked. The court concluded that the petitioner’s remedy, if any, lies in seeking damages rather than a writ of mandamus to continue the contractual relationship.
Summary The case revolves around a writ petition filed by OPI Gas (Private) Limited challenging the decision of Government Holdings (Pvt.) Limited to terminate their contract for the supply of Liquefied Petroleum Gas (LPG). The Islamabad High Court ruled that the petitioner's request to direct the continuation of the contract was untenable as the contract had expired. The court pointed out the importance of arbitration agreements in resolving such disputes and stated that the petitioner should seek damages instead. The ruling underscores the court's limited role in enforcing contractual obligations and the necessity for parties to adhere to arbitration clauses. This case highlights the legal framework surrounding contractual disputes in Pakistan, particularly under the Constitution of Pakistan and the Arbitration Act, 1940. Key terms such as 'contractual obligations', 'arbitration clause', and 'constitutional jurisdiction' are critical in understanding the implications of this ruling.
Court Islamabad High Court
Entities Involved OPI GAS (PRIVATE) LIMITED, GOVERNMENT HOLDING (PVT.) LIMITED
Judges MIANGUL HASSAN AURANGZEB, JUSTICE
Lawyers Khurram M. Hashmi, Noman A. Farooqi, Abuzar Salman Khan Niazi, Wasim Abid
Petitioners MESSRS OPI GAS (PRIVATE) LIMITED
Respondents GOVERNMENT HOLDING (PVT.) LIMITED AND OTHERS
Citations 2021 SLD 2750, 2021 MLD 1916
Other Citations Mumtaz Ahmad v. Zila Council, Sahiwal 1999 SCMR 117, Abdul Qayyum Khan v. District Officer, Passenger and Freight 2003 MLD 670, Messrs Frontier Construction Company v. Bahauddin Zakariya University 2006 MLD 978, Muhammad Hayat Khan v. Tehsil Municipal Administration 2009 YLR 2259, Signage Security System v. CDA and others 2010 CLC 567, Mst. Zahida Maqbool v. Member (Colonies) Board of Revenue 2010 YLR 1734, Messrs Muhammad Siddiq Chaudhry v. Higher Education Commission 2011 CLC 863, Wajahat Ali v. Government of Khyber Pakhtunkhwa 2013 YLR 2132, N.A.A. Consulting Engineers v. Metropolitan Corporation 2014 MLD 1795, Gandapur Construction Company v. Government of Khyber Pakhtunkhwa 2014 CLD 400, Uch Power (Pvt.) Ltd. v. Government of Pakistan, Federal Board of Revenue 2017 PTD 1215, M/s. Bisra Stone Lime Company Limited v. Orissa State Electricity Board AIR 1976 SC 127
Laws Involved Constitution of Pakistan, 1973, Arbitration Act, 1940
Sections 199, 34