| Case ID |
17587876-9064-4fa4-b926-34956f0ae8f9 |
| Body |
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| Case Number |
Suit No. 1263 of 2011 |
| Decision Date |
Apr 25, 2012 |
| Hearing Date |
Apr 10, 2012 |
| Decision |
The Sindh High Court ruled on the complex issue of the doctrine of privity of contract and its implications for third-party beneficiaries. The court found that the Karachi Water and Sewerage Board (KWSB) could enforce its rights under the Implementation Agreement with the Karachi Electric Supply Corporation (KESC), despite not being a direct party to that agreement. The ruling emphasized that the no-benefit rule, which traditionally restricts third parties from claiming rights under contracts not made for their benefit, should be modified to allow for exceptions based on the intentions of the contracting parties. The court held that the KESC's obligation to supply electricity to KWSB was clear and could not be unilaterally changed or revoked. This decision is significant as it opens the door for third parties to seek enforcement of contractual benefits in Pakistan, aligning local law with evolving global practices. |
| Summary |
The case revolves around the contractual obligations between the Karachi Water and Sewerage Board (KWSB) and the Karachi Electric Supply Corporation (KESC), focusing on the enforcement of third-party rights under the Implementation Agreement. The Sindh High Court's decision marks a pivotal moment in Pakistani contract law, as it challenges the traditional no-benefit rule, which previously limited third-party claims. The ruling suggests a shift towards recognizing the rights of third parties when they are intended beneficiaries of contractual agreements. This case has significant implications for future contractual disputes and the interpretation of beneficiaries' rights in Pakistan's legal landscape. By allowing KWSB to seek enforcement of its rights, the court underscores the necessity of adapting legal principles to reflect contemporary commercial realities and the needs of society. This decision could lead to broader acceptance of third-party claims in contractual agreements, aligning with trends observed in other jurisdictions. |
| Court |
Sindh High Court
|
| Entities Involved |
Government of Pakistan,
Karachi Water and Sewerage Board,
Government of Sindh,
Karachi Electric Supply Corporation
|
| Judges |
MUNIB AKHTAR, J
|
| Lawyers |
Muhammad Farogh Naseem for Plaintiff,
Abid Shahid Zuberi for Defendant No. 1,
Qazi Majid Ali, A.A.G. for Defendant No. 3
|
| Petitioners |
KARACHI WATER AND SEWERAGE BOARD through Authorised Representative
|
| Respondents |
Defendant No. 2,
Defendant No. 3,
Messrs KARACHI ELECTRIC SUPPLY CORPORATION
|
| Citations |
2012 SLD 2272,
2012 PLD 349
|
| Other Citations |
Mastersons v. Ebrahim Enterprises and another 1988 CLC 1381,
Leigh and Sullivan v. Aliakmon Shipping Col. Ltd. (The Aliakmon) [1986] 2 All ER 145,
Tweddle v. Atkinson (1861) 1 B&S 393,
Dunlop Pneumatic Tyre Company Ltd. v. Selfridge and Company Ltd. [1915] AC 847,
Iswaram Pillai v. Tharagan and others AIR 1914 Madras 701
|
| Laws Involved |
Contract Act, 1872
|
| Sections |
39
|