Legal Case Summary

Case Details
Case ID 1766e444-02ff-4e31-9e47-e1aa7f31c310
Body View case body.
Case Number Civil Revision No. 3289 of 2011
Decision Date Dec 05, 2012
Hearing Date
Decision The Lahore High Court allowed the revision petition, setting aside the lower court's order which had denied the application under Order VII Rule 10 of the Civil Procedure Code. The court upheld the validity of Clause-28 of the agreement which mandated that disputes should be adjudicated in Karachi, asserting that such agreements are lawful and do not contravene Section 28 of the Contract Act, 1872. The court directed the lower court to return the plaint to the plaintiffs for presentation to the appropriate court, thereby affirming the jurisdiction of the Karachi courts over the matter.
Summary In the case of Civil Revision No. 3289 of 2011, the Lahore High Court addressed the legality of a jurisdictional agreement under Clause-28 of a contract between Pakistan State Oil Company Ltd. and Malik Fazal Din's representatives. The petitioners contested the jurisdiction of the Lahore Civil Court, arguing that the agreement expressly conferred jurisdiction to Karachi courts. The court emphasized that agreements to designate specific jurisdictions are permissible under the Contract Act, 1872, provided they do not restrict parties from accessing judicial recourse entirely. The ruling reinforced the significance of jurisdictional clarity in contractual agreements, thereby enhancing the enforceability of such clauses. This case serves as a precedent in understanding the interplay between contractual agreements and jurisdictional authority, particularly in commercial disputes, and highlights the principles of law governing contractual restraints and jurisdictional stipulations.
Court Lahore High Court
Entities Involved Not available
Judges MEHMOOD MAQBOOL BAJWA, J
Lawyers Sh. Anwaar-ul-Haq for Petitioners, Muhammad Ilyas Ahmad for Respondents
Petitioners Messrs PAKISTAN STATE OIL COMPANY LTD. through Business Manager and 4 others
Respondents Malik HADI HUSSAIN and another
Citations 2013 SLD 2923 = 2013 YLR 2769
Other Citations State Life Insurance Corporation of Pakistan v. Rana Muhammad Saleem 1987 SCMR 393, Messrs Kadir Motors (Regd.) Rawalpindi v. Messrs National Motors Ltd., Karachi and 3 others 1992 SCMR 1174
Laws Involved Contract Act (IX of 1872), Civil Procedure Code (V of 1908)
Sections 28, O. VII, R. 10