| Case ID |
f97b9245-3a78-46ac-9c0d-2e913e2993b5 |
| Body |
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| Case Number |
Suit No. 1176 of 1989 |
| Decision Date |
Sep 12, 2003 |
| Hearing Date |
|
| Decision |
The court ruled in favor of the defendant, Int. Exports, stating that the shortfall in the handling of rice was due to natural causes beyond their control and not due to any negligence on their part. The plaintiff, Rice Export Corporation, was found to have not included any specific clauses in the contract to address potential shortfalls due to natural losses, which are recognized in the industry. The court emphasized that the defendant's contractual obligations were met and that the natural losses, amounting to approximately 0.69% of the total quantity handled, were within acceptable limits. The suit was dismissed with no order as to costs. |
| Summary |
This case revolves around a dispute between Rice Export Corporation and Int. Exports regarding the handling of rice under a contract. The plaintiff claimed a shortfall of 1,278.95 metric tons of rice, seeking recovery of Rs. 37,01,836.58. The court examined the evidence presented, including expert testimonies and international standards for acceptable loss during handling and storage. It was determined that natural losses in rice handling, which can be as high as 6%, were acknowledged by both parties. The court concluded that the defendant was not liable for the claimed shortfall as it was a natural incident of the contract. This judgment highlights the importance of including specific clauses in contracts to address potential natural losses in handling goods, serving as a caution for future agreements. The ruling reinforces the principle that contractual obligations must be clearly defined and that parties should account for natural losses in their agreements, making it crucial for industry stakeholders to understand these dynamics to mitigate risks in similar transactions. |
| Court |
Sindh High Court
|
| Entities Involved |
RICE EXPORT CORPORATION,
INT. EXPORTS
|
| Judges |
ANWAR ZAHEER, JAMALI, J
|
| Lawyers |
Sami-ud-Din Sami,
Syed Saeed Hassan Zaidi
|
| Petitioners |
RICE EXPORT CORPORATION
|
| Respondents |
INT. EXPORTS
|
| Citations |
2004 SLD 2791,
2004 PLD 705
|
| Other Citations |
2002 CLC 607,
PLD 1956 Sindh 17,
PLD 1964 Karachi 108,
AIR 1954 Pat. 586,
AIR 1943 Oudh 392,
AIR 1937 Rangoon 142,
PLD 1960 Karachi 346,
PLD 1967 Karachi 714,
AIR 1962 Madras 244,
1988 CLC 1381,
1987 CLC 1435,
1992 CLC 804
|
| Laws Involved |
Contract Act (IX of 1872)
|
| Sections |
148,
149,
15
|