Legal Case Summary

Case Details
Case ID 2b13e229-7438-49df-bd02-e74c540c5a8b
Body View case body.
Case Number Civil Appeal No. 118 of 1978
Decision Date Jun 29, 1983
Hearing Date
Decision The appeal was brought forth to challenge the judgment and order dated 28-7-1977 passed in execution proceedings by a learned Company Judge. The Supreme Court held that the execution proceedings could not ascertain the precise nature of execution as it pertained to the management of the company affairs according to the law declared by the Supreme Court. The questions raised could not be enforced through any direction in execution proceedings. The Court ruled that the orders for removal of the Chief Executive of the Company provided an independent cause of action. Consequently, the directions issued in the execution proceedings were beyond the scope of enforcement. The Court allowed the appeal and set aside the learned Company Judge's order, restoring the status quo as per the consent order dated 24-11-1976, asserting that the appellants had to comply with the terms of the settlement agreed upon.
Summary This case revolves around the execution proceedings of a Supreme Court order concerning the management of Frontier Sugar Mills and its compliance with the Companies (Managing Agency and Election of Directors) Order, 1972. The Supreme Court evaluated the legitimacy of the execution proceedings regarding the Chief Executive's removal and the management of company affairs, emphasizing that the execution court could not resolve disputes beyond its jurisdiction. The ruling underscored the importance of adhering to the consent orders and the limitations placed on the scope of execution proceedings. The decision highlighted the complexities of corporate governance and the legal frameworks governing such matters, reinforcing the necessity for compliance with judicial orders in corporate management.
Court Supreme Court of Pakistan
Entities Involved Frontier Sugar Mills and Distillery Ltd.
Judges MUHAMMAD HALEEM, ACTG. T., NASIM HASSAN SHAH, SHAJIUR RAHMAN, S. A. NUSRAT
Lawyers S. M. Zajar, Senior Advocate Supreme Court, Yaqoob Hussain Zaldl, Advocate-on-Record, Mumtaz Hussain, Senior Advocate Supreme Court, Ch. Akhtar Ali, Advocate-on-Record
Petitioners SALAHUDDIN KHAN
Respondents Mumtaz Hussain, FRONTIER SUGAR MILLS AND DISTILLERY LTD., Sairab Hayat Khan
Citations 1983 SLD 445, 1983 PLD 408
Other Citations Salahuddin v. Frontier Sugar Mills and Distillery Limited P L D 1975 C. 244
Laws Involved Companies (Managing Agency and Election of Directors) Order, 1972, Supreme Court Rules, 1956, Civil Procedure Code (V of 1908), Constitution of Pakistan (1973)
Sections O. X, r. 10, Ss. 36, 37, 38, 42 & 151, O. XXI, r. 10, O. XLV, r. 15, Art. 199