| Case ID |
2540ebb5-581b-430c-879e-f3b46cf6186c |
| Body |
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| Case Number |
H.C.A. No.287 of 2007 |
| Decision Date |
Feb 20, 2009 |
| Hearing Date |
|
| Decision |
The Sindh High Court dismissed the appeal filed by the Industrial Development Bank of Pakistan against the order of the Single Judge that absolved the guarantor from liability. The court found that the terms of the loan agreement had been varied without the consent of the guarantor, which is a violation of Section 133 of the Contract Act. The court highlighted that the guarantor had consistently objected to changes in the agreement and had made multiple requests for relief from his obligations, which were ignored. The ruling emphasizes the importance of consent in any variation of a guarantee contract, reaffirming that a guarantor cannot be held liable for obligations that have changed without their agreement. |
| Summary |
This case revolves around the dispute between the Industrial Development Bank of Pakistan and the Hyderabad Beverages Company regarding a loan agreement and the role of a guarantor. The primary legal question was whether the guarantor could be absolved of liability due to changes made to the loan agreement without their consent. The court's decision hinged on the interpretation of Section 133 of the Contract Act, which stipulates that a guarantor cannot be held liable for changes made to the terms of the contract they guaranteed without their agreement. The court found that the guarantor had made repeated requests to be released from their obligations and that the bank had acted without the necessary consent. This case serves as a critical reminder of the legal protections afforded to guarantors in contractual agreements and underscores the necessity for clear communication and consent in financial dealings. |
| Court |
Sindh High Court
|
| Entities Involved |
INDUSTRIAL DEVELOPMENT BANK OF PAKISTAN,
HYDERABAD BEVERAGES COMPANY (PVT.) LTD.
|
| Judges |
KHILJI ARIF HUSSAIN,
ARSHAD NOOR KHAN
|
| Lawyers |
Aziz-ur-Rehman,
Abrar Hassan,
Ms. Syeda Kanwal
|
| Petitioners |
INDUSTRIAL DEVELOPMENT BANK OF PAKISTAN
|
| Respondents |
,
HYDERABAD BEVERAGES COMPANY (PVT.) LTD.
|
| Citations |
2009 SLD 1868,
2009 CLD 737
|
| Other Citations |
Dr. M.A. Qadir Khan v. Bank of Bhawalpur Limited and another PLD 1984 Kar. 211,
Agriculture Development Bank of Pakistan v. Pak Green Fertilizer Co: Ltd. 2000 MLD 1066,
United Bank Ltd. v. Messrs Sarhad Ghee Mills Ltd. and others 1999 YLR 323,
Messrs Platinum Insurance Co. Ltd. Karachi v. Daewoo Corporation Shaikhupura PLD 1999 SC 1,
Mian Aftab A. Shaikh and others v. Trust Leading Corporation Ltd. and another 2003 CLD 702
|
| Laws Involved |
Industrial Development Bank of Pakistan Ordinance, 1961,
Contract Act, 1872
|
| Sections |
39,
133
|