| Case ID |
1861fc98-3b8b-4e55-81db-07502cae3b3d |
| Body |
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| Case Number |
Civil Appeal No. 30-D of 1960 |
| Decision Date |
Feb 28, 1962 |
| Hearing Date |
|
| Decision |
The appeal was allowed, and the judgment and decree passed by the High Court were set aside, restoring that of the trial Judge. The case involved the interpretation of foreign bills drawn in London and payable in Pakistan. The Supreme Court held that the liability of the acceptor was to be determined by the law of Pakistan. The Court concluded that the appellant-Bank had exacted an excess amount from the respondent due to the devaluation of the currency, and thus the respondent was entitled to recover the overpaid amount. The findings of the trial Court were reinstated, and the appellant was awarded costs in the courts below. |
| Summary |
In the case of Central Bank of India v. Muhammad Islam Khan, the Supreme Court of Pakistan dealt with issues surrounding the liability of acceptors of foreign bills and the implications of currency devaluation on contractual obligations. The case arose from a banking transaction where the respondent imported goods and had accepted bills of exchange, which had matured before the devaluation of the pound sterling. The bank insisted on payment at the pre-devaluation rate, leading to a claim for the excess amount paid by the respondent. The Court examined the implications of the Negotiable Instruments Act and the Contract Act, emphasizing the necessity for clarity in agreements regarding currency and payment terms. This ruling highlights the importance of understanding foreign currency obligations and the rights of parties in international trade, making it a significant case in commercial law. Keywords: foreign bills, currency devaluation, banking law, contractual obligations, liability of acceptor, Negotiable Instruments Act, Contract Act. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Central Bank of India,
Messrs Nicolene Limited
|
| Judges |
S. A. Rahman,
Fazle-Akbar,
B. Z. Kaikaus,
Hamoodur Rahman
|
| Lawyers |
S. R. Pal,
A.W. Chowdhury,
Abu Bakkar,
Hamidul Haq Chowdhury,
Mozammel Haque,
A. T. Sadi
|
| Petitioners |
THE CENTRAL BANK OF INDIA, LTD
|
| Respondents |
MUHAMMAD ISLAM KHAN
|
| Citations |
1962 SLD 471,
1962 PLD 251
|
| Other Citations |
S. S. Celia v. S. S. Volturno 1921 A C 544,
Pyrmont Ltd. v. Schott 1939 A C 145 (P C),
Societe des Hotels Le Touquet Paris-Plage v. Cummings 1922 1 K B 451 (C A),
Schnapper, Westminster Bank Ltd. v. Schnapper 1936 All. E R Ch. 322,
Re: Russian Commercial and Industrial Bank (1955) 1 All. E R 75,
Auckland Corporation v. Alliance Assurance Co., Ltd. (1937) A C 587,
Graumann v. Trietel (1940) 2 All. E R 188
|
| Laws Involved |
Negotiable Instruments Act (XXVI of 1881),
Contract Act (IX of 1872)
|
| Sections |
134,
62
|