Law:

Section:

(a) Civil Procedure Code (V of 1908)------- --------O. XXXIX, Rr. 1 & 2, O. VII, R. 10 & S. 20-------Contract Act (IX of 1872), S. 28-------Specific Relief Act (I of 1877), S. 42-------Suit for declaration-------Maintainability-------Foreign company-------Agreement for distribution of foreign products in Pakistan-------Agreement to settle dispute in foreign country-------Stay of proceedings-------Scope-------Plaintiff engaged in business of imports, distribution, marketing and selling of defendant's (foreign company) products in the local markets in Pakistan-------Contention of plaintiff was that defendant (foreign company) had terminated agreement to deprive him from the fruits of the same and to cause irreparable loss-------Validity-------Defendant was a company established and functional in a foreign country and manufacturing it's product there-------Parties were in notice and knowledge of their status and place of residence/business-------Interpretation of agreement, words used therein or conduct of the parties had to be examined keeping such fact in view-------Plaintiff had nowhere challenged the legality of the Court of foreign country nor it was his case that issue involved/raised by him could not be determined by such court or plaintiff's right could not be determined by such court-------Status of plaintiff was that of 'distributor' of defendant-foreign company for products supplied through shipment-------Such was a series of events-------Every breach thereof would give a right to the plaintiff but every such right would be subject to 'arising from or in connection with the agreement'-------Plaintiff had right to sue at the place where cause of action had accrued which would be in a foreign country-------Civil Procedure Code, 1908 did explain the 'jurisdiction', 'try all suits unless barred', 'rejection of plaint or return thereof for presentation before proper forum' but nowhere permitted the courts to stay proceedings of the suit-------Once a lis was brought to a file of courts then law would provide mechanism for disposal of the same but it did not include an order of stay proceedings for an indefinite period-------Procedure in courts in a…

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