Legal Case Summary

Case Details
Case ID 304bd9f9-29ea-41a1-80b4-8f6f1307894b
Body View case body.
Case Number Civil Appeals Nos. 86 and 91 of 1958
Decision Date Feb 25, 1959
Hearing Date
Decision The Supreme Court dismissed the appeals filed by Haji Abdul Karim and others against Sh. Ali Muhammad and others. The court found that the plaintiffs' claims of fraud regarding the lease of the Irfan Cotton & Oil Mills were not substantiated. The plaintiffs alleged that they were misled into believing that the factory was legally licensed and in perfect working condition, which was proven false. The court emphasized that the plaintiffs failed to provide evidence of express fraud and did not demonstrate that the lease was against public policy. Consequently, the decision of the High Court, which had reversed the previous decrees in favor of the plaintiffs, was upheld. The court directed that the parties bear their own costs throughout the proceedings.
Summary This case revolves around a dispute regarding a lease agreement for a factory between Haji Abdul Karim and others (the appellants) and Sh. Ali Muhammad and others (the respondents). The appellants sought to have the lease declared void, alleging fraud and that the lease was against public policy. The Supreme Court of Pakistan found that the allegations of fraud were not proven, as the appellants failed to demonstrate that the respondents had made any false representations regarding the licensing of the factory. The court's judgment clarified the legal standards for fraud in contract law, particularly under the Contract Act and the Transfer of Property Act. The decision emphasized the necessity for plaintiffs to specify material defects and prove that defendants were aware of such defects. This case highlights the importance of due diligence in business transactions and the legal implications of alleged misrepresentations in lease agreements.
Court Supreme Court of Pakistan
Entities Involved Not available
Judges MUHAMMAD MUNIR, C.J., M. SHAHABUDDIN, A. R. CORNELIUS, AMIRUDDIN AHMAD, S. A. RAHMAN, JJ
Lawyers SirajudDin Ahmad Pal, Senior Advocate, Supreme Court, Ismat Ullah, Advocate, Supreme Court, Muhammad Shafi, Advocate, Supreme Court
Petitioners Haji ABDUL KARIM and others
Respondents Sh. ALI MUHAMMAD and others
Citations 1959 SLD 382, 1959 PLD 167
Other Citations Not available
Laws Involved Contract Act (IX of 1872), Transfer of Property Act (IV of 1882)
Sections 23, 108(a)