Legal Case Summary

Case Details
Case ID 37ea73a8-cbc5-4351-b498-56c69d503594
Body View case body.
Case Number Civil Appeal No. K-5 of 1973
Decision Date Jun 10, 1976
Hearing Date
Decision The Supreme Court dismissed the appeal as there was no merit. The court found that the matters directly and substantially in issue in the two suits were entirely different. The appellant's claims regarding a bank guarantee did not relate to the recovery of the loan, which was the primary issue in the respondent's suit. The court upheld the High Court's decision that the provisions of section 10 of the Civil Procedure Code were not applicable in this case, as the essential condition for its application was not met. As a result, the appeal was dismissed with costs.
Summary This case revolves around a civil appeal concerning the application of section 10 of the Civil Procedure Code, which deals with the stay of suit. The Supreme Court of Pakistan examined the circumstances surrounding a loan agreement and a subsequent dispute over a bank guarantee. The appellants, a private limited company, had engaged the respondent as their sole selling agent and secured a loan. Following financial difficulties, a conflict arose regarding the repayment and the collateral security arrangement. The appellants sought a stay on the respondent's recovery suit, arguing that their earlier suit in Rawalpindi should take precedence. However, the Supreme Court ruled that the issues in both suits were distinct, leading to the dismissal of the appeal. Key legal principles regarding the applicability of section 10 were discussed, emphasizing the necessity for similarity in the matters at issue for a stay to be granted. This case highlights the importance of understanding procedural laws in civil disputes and the significance of the specificity of claims in legal proceedings.
Court Supreme Court of Pakistan
Entities Involved F. & I. Industries Ltd., Forbes Forbes Campbell & Co. Ltd.
Judges MUHAMMAD GUL, MUHAMMAD AFZAL CHEEMA, MUHAMMAD AKRAM
Lawyers Muhammad Fazlur Rehman, Rao Muhammad Yousaf Khan, M. Mahboob Ahmad
Petitioners Muhammad Akram, MESSRS F. & I. INDUSTRIES LTD., Muhammad Afzal Cheema, Muhammad Gul
Respondents MESSRS FORBES FORBES CAMPBELL & Co. LTD
Citations 1977 SLD 147, 1977 SCMR 230
Other Citations Not available
Laws Involved Civil Procedure Code
Sections 10