| Case ID |
3b8a333c-e07e-43ed-917e-e1680772e915 |
| Body |
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| Case Number |
H.C.A.173 of 2004 |
| Decision Date |
Mar 10, 2010 |
| Hearing Date |
|
| Decision |
The appeal was dismissed as the appellant, the Industrial Development Bank of Pakistan, could not substantiate its claims for interim markup, markup for the grace period, and penalties against the respondent, Messrs Baloch Engineering Industry (Pvt.) Ltd. The court found that the respondent had adhered to the payment schedule and no valid agreement existed for the payment of markup during the grace period. The learned Single Judge had previously ruled that the respondent was liable to pay only the confirmed amount of Rs.61,229, which was supported by documentary evidence. The appeal highlighted the importance of clearly stipulated terms in finance agreements regarding penalties and damages, reiterating that claims for such must be backed by factual evidence of incurred damages or legal injury. The court concluded that the claims of the appellant were insufficiently supported by evidence and thus upheld the earlier ruling. |
| Summary |
In the case of H.C.A.173 of 2004, the Sindh High Court addressed the appeal by the Industrial Development Bank of Pakistan against the decision regarding the recovery of a loan amount from Messrs Baloch Engineering Industry (Pvt.) Ltd. The bank sought claims for interim markup, markup during the grace period, and penalties, arguing that the respondent had defaulted on the payment terms. The court found that the finance agreement did not explicitly provide for markup during the grace period. It emphasized the necessity of clear contractual stipulations for penalties and damages, affirming that claims must be substantiated by evidence of actual losses. The appeal was ultimately dismissed, reinforcing the principles of reasonable compensation in contract law. |
| Court |
Sindh High Court
|
| Entities Involved |
INDUSTRIAL DEVELOPMENT BANK OF PAKISTAN,
MESSRS BALOCH ENGINEERING INDUSTRY (PVT.) LTD.
|
| Judges |
GULZAR AHMED, JUSTICE,
IRFAN SAADAT KHAN, JUSTICE
|
| Lawyers |
Azizur Rehman,
Tasawar Ali Hashmi
|
| Petitioners |
INDUSTRIAL DEVELOPMENT BANK OF PAKISTAN
|
| Respondents |
,
MESSRS BALOCH ENGINEERING INDUSTRY (PVT.) LTD.
|
| Citations |
2010 SLD 557,
2010 CLD 591
|
| Other Citations |
Federation of Pakistan through Ministry of Finance and others v. Haji Muhammad Sadiq and others 2007 CLD 1,
Hala Spinning Mills Ltd. v. International Finance Corporation and another 2002 SCMR 450,
United Bank Limited v. Messrs Azmat Textile Mills Limited 2002 CLD 542,
Industrial Development Bank of Pakistan v. Messrs Haji Dossa Ltd. and 6 others PLD 1985 Kar.71,
Shaikh Shaukat Ali v. The Trustees of the Port of Karachi PLD 1975 Kar.1096,
N.D.F.C. v. Anwar Zaib White Cement Ltd. and others 1999 MLD 1888,
United Bank Limited v. Messrs M. Esmail and Company (Pvt.) Limited and 2 others 2006 CLD 394,
Fateh Chand v. Balkishan Dass AIR 1963 SC 1405
|
| Laws Involved |
Industrial Development Bank of Pakistan Ordinance (XXXI of 1961),
Law Reforms Ordinance (XII of 1972)
|
| Sections |
39,
3
|