| Case ID |
02f27d19-fa02-4bd6-9ed6-c77037ec2f75 |
| Body |
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| Case Number |
Suit No. 176 of 1985 |
| Decision Date |
Jan 21, 2016 |
| Hearing Date |
Jan 12, 2016 |
| Decision |
The High Court ruled that the suit filed by the plaintiff, a public sector company, was validly instituted by its Principal Officer, Mr. Shameem Ahmed. The court found that even in the absence of a formal resolution from the Board of Directors, the approvals given by senior officials were sufficient to authorize the filing of the suit. The defendant's objections regarding the maintainability of the suit due to alleged lack of authorization were overruled, affirming the suit's legitimacy. The court emphasized that procedural technicalities should not hinder the pursuit of justice, and the principles of substantial compliance were applicable in this case. The plaintiff was thus granted the right to recover the claimed amount from the defendant, alongside interest and other relief as deemed appropriate by the court. |
| Summary |
In the landmark case of Trading Corporation of Pakistan Limited vs Haji Khuda Bux Amir Umer Limited, the Sindh High Court addressed crucial issues regarding the authority of corporate officers to initiate legal proceedings. The plaintiff, a public sector company, claimed recovery of funds due to the defendant's failure to honor a sales agreement for steel bars. The court highlighted the importance of internal approvals within corporate governance, asserting that the lack of a formal Board resolution did not invalidate the suit, as the necessary authorizations were present. This case sets a significant precedent in company law and procedural compliance, emphasizing that technicalities should not obstruct rightful claims in court. The ruling reinforces the principles of corporate governance and the power vested in Principal Officers, making it a key reference for future litigation involving corporate entities. |
| Court |
Sindh High Court
|
| Entities Involved |
TRADING CORPORATION OF PAKISTAN LIMITED,
Haji KHUDA BUX AMIR UMER LIMITED
|
| Judges |
MUHAMMAD FAISAL KAMAL ALAM, J
|
| Lawyers |
Mazhar Jafri,
Imran Hussain,
Zia ul Haq Makhdoom,
Azhar Mehmood
|
| Petitioners |
TRADING CORPORATION OF PAKISTAN LIMITED
|
| Respondents |
Haji KHUDA BUX AMIR UMER LIMITED
|
| Citations |
2016 SLD 828,
2016 CLD 739
|
| Other Citations |
China Annang Construction Corporation v. K.A. Construction Company 2001 SCMR 1887,
Trading Corporation of Pakistan v. Merchant Agency 2007 CLC 1811,
1988 CLC 1381,
Zamendar Co-operative Society v. NBP 1982 CLC 1276,
2004 MLD 1778,
PLD 1997 Kar. 62,
2007 YLR 1745,
2008 SCMR 358,
2013 SCMR 1419,
1997 SCMR 66,
Messrs Nishat Mills Limited v. Superintendent of Central Excise Circle-II and others PLD 1989 SC 222
|
| Laws Involved |
Companies Ordinance, 1984,
Civil Procedure Code, 1908
|
| Sections |
196,
O. XXIX, R. 1
|