| Case ID |
2e48355e-d1ae-40fa-bda4-183919f9c772 |
| Body |
View case body. Login to View |
| Case Number |
Civil Petition No.766 of 1985 |
| Decision Date |
Mar 26, 1989 |
| Hearing Date |
|
| Decision |
In this case, the Supreme Court of Pakistan addressed the contention regarding the entitlement of profits earned from a deposit made by the respondent. The dispute arose from an agreement dated October 5, 1981, where petitioners agreed to sell a shop to the respondent for Rs. 2,80,000. The respondent had made a deposit of Rs. 22,000 on June 8, 1981, which was placed in a profit-earning bank account at the petitioners' request. Due to unforeseen delays, the sale-deed was not executed and registered until May 4, 1985. Subsequently, the petitioners withdrew the deposited amount. The primary issue was whether the accrued profits from the deposit while it was held in the bank should belong to the respondent or the petitioners. Both the trial court and the High Court had ruled in favor of the respondent, granting him the profits earned. The Supreme Court granted leave to appeal to examine these decisions, highlighting the necessity to review the contractual and legal implications of the accrued profits post the execution of the sale-deed. The Court ultimately upheld the previous rulings, affirming that the profits accrued during the deposit period rightly belonged to the respondent, thereby ensuring the enforcement of the compromise decree and protecting the contractual agreements between the parties involved. |
| Summary |
The Supreme Court of Pakistan, in Civil Petition No.766 of 1985, rendered a pivotal decision on March 26, 1989, regarding the rightful ownership of profits accrued from a deposit made under a sales agreement. The case centered around an agreement dated October 5, 1981, where petitioners agreed to sell a shop to Haji Fazal Muhammad for Rs. 2,80,000. The respondent made an initial deposit of Rs. 22,000, which was subsequently placed in a profit-earning bank account upon the petitioners' request. Due to delays, the sale-deed was not executed until May 4, 1985. When the petitioners withdrew the deposited amount, a dispute arose over the ownership of the profits earned from the deposit during its tenure in the bank. The trial court and the High Court both ruled in favor of the respondent, granting him the accrued profits. Petitioners contested this decision, arguing that the courts erred in granting the profits to the respondent even after the execution of the sale-deed and the delivery of possession of the property. The Supreme Court granted leave to appeal to thoroughly examine these assertions. The case delved into the interpretation of the Specific Relief Act (I of 1877) and the Constitution of Pakistan (1973), specifically Article 185(3), to determine the rightful beneficiary of the accrued profits. The Court meticulously analyzed the contractual obligations, the timeline of events, and the legal statutes applicable to the case. Emphasizing the importance of adhering to compromise decrees and contractual agreements, the Supreme Court ultimately affirmed the lower courts' decisions, validating the respondent's entitlement to the accrued profits. This landmark judgment underscores the judiciary's role in upholding contractual integrity and ensuring equitable outcomes in commercial disputes. Legal professionals and entities engaged in contractual agreements can draw significant insights from this case, highlighting the necessity of clear terms and timely execution of agreements to prevent prolonged litigations. Moreover, the case illustrates the procedural aspects of appellate reviews in Pakistan's legal system, setting a precedent for future cases involving similar disputes over financial transactions and profit entitlements. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Not available
|
| Judges |
MUHAMMAD AFZAL ZULLAH,
SAAD SAOOD, JAN
|
| Lawyers |
Ch. Asghar Ali Bhatti,
Ch. Muhammad Aslam Advocate-on-Record,
M. A. Oadri Advocate-on-Record
|
| Petitioners |
Ch. MUHAMMAD SAEED and others
|
| Respondents |
Haji FAZAL MUHAMMAD
|
| Citations |
1989 SLD 1709,
1989 SCMR 1469
|
| Other Citations |
Not available
|
| Laws Involved |
Specific Relief Act (I of 1877),
Constitution of Pakistan (1973)
|
| Sections |
S. 12,
Art. 185(3)
|