| Case ID |
20f9e27a-1a4e-487b-818b-de6b5e1036ca |
| Body |
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| Case Number |
D-2741 of 2016 |
| Decision Date |
Jan 30, 1980 |
| Hearing Date |
Jan 22, 1980 |
| Decision |
The Supreme Court of Pakistan upheld the decision of the High Court, confirming that a mutual open and current account existed between the appellant and the respondent. The court reasoned that the dealings between the parties, characterized by their dual roles as principal and agent, as well as seller and purchaser, established reciprocity of accounts. The court found that the entries in the accounts were genuine and that the suit filed by the respondent was within the limitation period, based on the last entry in the account. The appeal was dismissed, affirming the lower court's findings regarding the existence of mutual obligations and the maintenance of an open account. |
| Summary |
In the case of QURESHI Brothers vs. KHAIRPUR TEXTILE MILLS LTD., the Supreme Court of Pakistan addressed complex issues surrounding the Limitation Act and the existence of a mutual, open, and current account between two business entities. The court's decision hinged on the interpretation of Article 85 of the Limitation Act, which pertains to mutual accounts. The court found that the appellant, QURESHI Brothers, acted both as a commission agent and a dealer for the respondent, KHAIRPUR TEXTILE MILLS LTD., leading to a scenario where both parties had reciprocal demands against each other. The court emphasized that the relationship between the parties was characterized by a continuous flow of transactions that established mutual obligations. The ruling highlighted the importance of maintaining accurate records and the implications of such records on the rights and obligations of the parties involved. Ultimately, the court dismissed the appeal, confirming that the respondent's suit was filed within the appropriate limitation period, based on the last recorded entry in their accounts. This case underscores the necessity for businesses to understand the legal nuances of their financial relationships and the potential for mutual liabilities in commercial dealings. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
QURESHI Brothers,
KHAIRPUR TEXTILE MILLS LTD.
|
| Judges |
ANWARUL HAQ, C.J.,
G. SAFDAR SHAH,
KARAM ELAHEE CHAUHAN,
MUHAMMAD AFZAL ZULLAH,
NASIM HASAN SHAH
|
| Lawyers |
S. M. Abbar,
Munawar Abbas,
A. A. Zarl,
A. A. Dastgir
|
| Petitioners |
QURESHI Brothers
|
| Respondents |
KHAIRPUR TEXTILE MILLS LTD.
|
| Citations |
1980 SLD 481,
1980 PLD 286
|
| Other Citations |
Robert Cotton Associates Ltd., Khanewal v. Khan Karam Hussain Khan and 2 others P L D 1972 S C 109
|
| Laws Involved |
Limitation Act (IX of 1908)
|
| Sections |
Art. 85
|