| Case ID |
42fd3e08-8820-4879-8205-1df9ac1abadc |
| Body |
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| Case Number |
CMA No. 15149 of 2018 in Suit No. 2009 of 2018 |
| Decision Date |
Dec 17, 2018 |
| Hearing Date |
Dec 17, 2018 |
| Decision |
The Sindh High Court ruled against the plaintiff, Oasis Travels (Private) Limited, in their application for an interim injunction to restrain the encashment of a bank guarantee by the defendant, Donvand Limited. The court determined that the plaintiff failed to establish a prima facie case for the injunction and that the balance of convenience did not favor the plaintiff. The court emphasized that the bank guarantee was irrevocable and unconditional, and the encashment could not be restrained by an injunctive order. The plaintiff's claims regarding the nature of the guarantee as a penalty were dismissed, and the application for the injunction was therefore denied. |
| Summary |
In this case, Oasis Travels (Private) Limited filed an application for an interim injunction to prevent Donvand Limited from encashing a bank guarantee issued by Standard Chartered Bank Dubai. The plaintiff argued that the guarantee was a performance guarantee and its encashment would be unlawful. However, the court found that the guarantee was irrevocable and unconditional, which meant that the defendant was entitled to encash it regardless of any disputes between the parties. The ruling emphasized the principles surrounding bank guarantees, stating that they should be honored without conditions unless fraud is evident. The court ultimately dismissed the application for the injunction, highlighting that the plaintiff did not present a strong enough case to warrant such relief. |
| Court |
Sindh High Court
|
| Entities Involved |
Standard Chartered Bank Dubai,
OASIS TRAVELS (PRIVATE) LIMITED,
DONVAND LIMITED
|
| Judges |
ZAFAR AHMED RAJPUT
|
| Lawyers |
Basil Nabi Malik,
Syed Shayan Ahmed,
Syed Noman Zahid
|
| Petitioners |
OASIS TRAVELS (PRIVATE) LIMITED
|
| Respondents |
DONVAND LIMITED AND OTHERS
|
| Citations |
2020 SLD 1013,
2020 CLC 1128
|
| Other Citations |
Province of West Pakistan v. Messrs Mistri Patel & Co. and another PLD 1969 SC 80,
Messrs Ayaz Builders through Attorney v. Board of Trustees of the Karachi Port Trust and another 2008 CLC 726,
Messrs Zeenat Brothers (Pvt.) Ltd. v. Aiwan-e-Iqbal Authority through Chairman, Aiwane Iqbal Complex, Lahore and 3 others PLD 1996 Kar. 183,
Messrs Jamia Industries Ltd. v. Messrs Pakistan Refinery Ltd., Karachi PLD 1976 Kar. 644,
Pakistan Engineering Consultants v. Pakistan International Airlines Corporation and another 1989 SCMR 379,
Ardshir Cowasjee and 10 others v. Karachi Building Control Authority (KMC.), Karachi and 4 others 1999 SCMR 2883,
Atlas Cables (Pvt.) Limited v. Islamabad Electric Supply Company Limited and another 2016 CLD 1833,
Guangdong Overseas Construction Group Company Ltd. through General Manager v. Creek Marina Private Limited and 2 others PLD 2011 Kar. 304,
Pakistan Engineering Consultants v. Pakistan International Airlines Corporation and another 1993 CLC 1926,
Shipyard K. Damen International v. Karachi Shipyard and Engineering Works Ltd. PLD 2003 SC 191
|
| Laws Involved |
Civil Procedure Code (V of 1908)
|
| Sections |
O, XXXIX, Rr, 1, 2
|