Legal Case Summary

Case Details
Case ID 25fb40a7-6854-4a0f-bf7c-c9af1bb956b0
Body View case body.
Case Number Civil Revision No. 1168-D of 1990
Decision Date Dec 04, 1994
Hearing Date
Decision The Lahore High Court remanded the case after finding that the Additional District Judge failed to consider the principle of 'quantum meruit'. While the lack of a formal written contract was noted, the Court emphasized that if the Local Council benefited from the work done by the petitioner, they were liable to compensate him. The case was sent back for a fresh decision, highlighting the importance of acknowledging services rendered even in the absence of formal agreements. This decision reinforces the legal principle that parties must be compensated for benefits received, regardless of procedural shortcomings in contract formation.
Summary In the case of Sufi Faiz Ahmad vs. Metropolitan Corporation, Lahore High Court, the petitioner sought recovery of Rs.20,000 for building works completed at a primary school. The absence of a formal contract was contested, leading to an appeal by the respondents after the trial court's favorable ruling for the petitioner. The Lahore High Court noted the mandatory nature of local council rules regarding contract execution but upheld the principle of 'quantum meruit', stating that benefits derived from services must be compensated. This case emphasizes the necessity for local councils to honor informal agreements when they receive substantial benefits, thus protecting the rights of contractors and promoting fairness in municipal dealings. The judgment serves as a significant reference for future disputes involving informal contracts and the obligations of local government entities.
Court Lahore High Court
Entities Involved Metropolitan Corporation
Judges MALIK MUHAMMAD QAYYUM, J
Lawyers S.A. Naeem, Muhammad Iqbal Chaudhry, Syed Fida Hussain
Petitioners Sufi FAIZ AHMAD
Respondents METROPOLITAN CORPORATION, Lahore High Court and others
Citations 1997 SLD 655 = 1997 CLC 599
Other Citations Ali Muhammad v. Karachi Metropolitan Corporation and another 1985 CLC 1730
Laws Involved Punjab Local Councils (Business) Rules, 1980, Punjab Local Councils (Contract) Rules, 1981, Contract Act (IX of 1872)
Sections R. 9, R. 3, 65, 70