| Case ID |
2c7d42a3-10f8-432c-8a21-5ba2d328c555 |
| Body |
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| Case Number |
W.P. No. 1086 of 2021 |
| Decision Date |
Nov 22, 2022 |
| Hearing Date |
Aug 31, 2022 |
| Decision |
The Islamabad High Court allowed the writ petition of the Allama Iqbal Open University (AIOU) challenging the order of the President of Pakistan. The Court found that the Ombudsman had misread the terms of the surety bond which held the respondent liable for the obligations of the principal debtor, Mr. Aziz. The Court emphasized that the Ombudsman failed to appreciate the contractual obligations and the rights of AIOU to withhold the pension of the guarantor, Respondent No. 2, as per the terms of the surety bond. The decision highlighted the importance of the guarantees in contractual law, confirming that the liability of the guarantor is co-extensive with that of the principal debtor, and ruled that the previous orders of the Ombudsman and the President were without lawful authority. The case was remanded to the Ombudsman for a decision in accordance with the law. |
| Summary |
This case revolves around the legal obligations and liabilities stemming from a surety bond executed by Mr. Aziz and his guarantor, Respondent No. 2, in relation to a scholarship awarded by the Allama Iqbal Open University (AIOU). Mr. Aziz failed to fulfill his contractual obligation to serve AIOU for five years following his scholarship, leading to financial claims against him and his guarantors. The Ombudsman initially ruled in favor of Respondent No. 2, but the Islamabad High Court reversed this decision, emphasizing the enforceability of the surety bond and affirming AIOU's right to withhold pension payments to recover the amounts owed. This case underscores the significance of understanding contractual obligations, especially in educational and employment contexts, and the implications of guarantees under Pakistani law. Trending keywords include 'contractual obligations', 'guarantor liability', 'Ombudsman decisions', and 'higher education law'. |
| Court |
Islamabad High Court
|
| Entities Involved |
Federation of Pakistan,
Allama Iqbal Open University
|
| Judges |
Miangul Hassan Aurangzeb, J.
|
| Lawyers |
Hafiz Arfat Ahmed Chaudhry, M/s. Kashifa Niaz Awan and Fazal-e-Rabbi D.R.(L) A.I.O.U for Petitioner,
Mr. Asim Shehbaz Malik, Advocate for Respondent No. 3,
Dr. G.M. Chaudhry, Advocate for Respondent No. 2,
Malik Waheed Akhtar, Advocate for Respondent No. 2,
Malik Shaukat Nawaz, learned Assistant Attorney-General for Respondents
|
| Petitioners |
ALLAMA IQBAL OPEN UNIVERSITY (AIOU), through Registrar
|
| Respondents |
FEDERATION OF PAKISTAN through D.G. Legal for President of Pakistan and 2 others
|
| Citations |
2023 SLD 6887,
2023 PLJ 61
|
| Other Citations |
PLD 1968 SC 83,
2011 SCMR 1073,
1985 SCMR 1972,
2007 SCMR 755
|
| Laws Involved |
Establishment of Office of Wafaqi Mohtasib (Ombudsman) Order, 1983,
Constitution of Pakistan, 1973,
Contract Act, 1872
|
| Sections |
32,
199,
128
|