| Case ID |
37543349-abf9-40f6-bd69-9d8a323a1c9f |
| Body |
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| Case Number |
R.F.A. No.204 of 1999 |
| Decision Date |
Mar 15, 2005 |
| Hearing Date |
Mar 15, 2005 |
| Decision |
The Lahore High Court dismissed the appeal, affirming the trial court's judgment that the document in question was not a valid promissory note due to its conditional nature. The court referenced the Negotiable Instruments Act, specifically sections 4 and 13, to determine that a promissory note must be an unconditional promise to pay. The court further ruled that the agreement to forego the right of appeal in exchange for a payment was void under section 28 of the Contract Act, which states that any agreement that restricts a party from enforcing their rights through usual legal proceedings is void. The court found that the intention of the parties and the evidence presented indicated that the agreement was indeed in restraint of legal proceedings, thus leading to the conclusion that no suit could be maintained based on such a void agreement. |
| Summary |
In the case of R.F.A. No.204 of 1999 before the Lahore High Court, the core issue revolved around the validity of a promissory note executed under conditions that limited the rights of the payee. The appellant, RASHID UR REHMAN, contended that the respondent, MIAN IQBAL HUSSAIN, had persuaded him to forgo his right of appeal in exchange for a payment arrangement, which included a promissory note for Rs. 6,50,000. The court examined the nature of the promissory note under the Negotiable Instruments Act and determined that since the execution was conditional upon foregoing legal rights, it did not meet the statutory definition of a promissory note. The court's decision emphasized the importance of unconditional undertakings in negotiable instruments and reaffirmed that agreements that inhibit the enforcement of legal rights are void as per the Contract Act. This case highlights critical aspects of contract law and the enforceability of financial instruments, serving as a significant reference for similar legal disputes. |
| Court |
Lahore High Court
|
| Entities Involved |
Not available
|
| Judges |
MIAN HAMID FAROOQ, JUSTICE,
SYED HAMID ALI SHAH, JUSTICE
|
| Lawyers |
Ch. Mubasher Nisar Khan,
Iftikhar Ullah Malik
|
| Petitioners |
RASHID UR REHMAN
|
| Respondents |
MIAN IQBAL HUSSAIN
|
| Citations |
2005 SLD 369 = 2005 CLD 978
|
| Other Citations |
Mrs. Doreen Barkat Ram v. Abdul Hakim Khan 1974 SCMR 84,
Muhammad Yousaf v. Abdul Majid PLD 1993 Lah. 244,
Muhammad Rafique v. Muhammad Nawaz 2001 CLC 318,
Bherulal v. Ram Rikh AIR (38) 1951 Ajmer 71
|
| Laws Involved |
Negotiable Instruments Act,
Contract Act,
Civil Procedure Code
|
| Sections |
4,
13,
28,
XXXVII, R.2
|