Case Details

Citation(s)
2014 SLG 2105 2014 SLD 2105 2014 CLD 253
Sindh High Court
C.P. No. 347 of 2013, decision dated: 23rdMay, 2014.
AHMED ALI M. SHAIKH AND SYED MUHAMMAD FAROOQ SHAH, JJ
Naeem Shahid for Petitioner. Altaf Hussain Khoso for Chief Controller of Purchase, Pakistan Railways, Headquarters Office, Lahore High Court. Khalid Mahmood Siddiqui for
Respondent No. 2 (Bank).

Messrs INDUSTRIAL DEVELOPMENT SUPPLIES CORPORATION through DirectoR

VS

FEDERATION OF PAKISTAN through Chief Controller Purchase and another

Law:

Section:

Constitution of Pakistan-------Art. 199---Constitutional petition---Factual controversy---Bank guarantee, encashment of---Petitioner who was contractor of respondent authorities had furnished unconditional irrevocable bank guarantee in favour of authorities---Plea raised by petitioner was that authorities could not ask bank to encash bank guarantee in question without first referring it to petitioner---Validity---Bank guarantee in question was unconditional and irrevocable and bank had undertaken to pay immediately on demand upon advising them the reason for demand, without objection and without reference to petitioner, any amount up to the extent mentioned in the guarantee---Decision of authorities was final and binding---Unconditional and irrevocable bank guarantee could not be interfered with except in case of fraud and or in case of question of apprehension of irrevocable injustice had been made out---Liability of a person pursuant to a document / contract and factual controversies requiring evidence could not be determined in exercise of extra ordinary Constitutional jurisdiction of High Court---In order to justify granting of extraordinary relief, absence of adequate alternate remedy in law should have clearly appeared---Petition was dismissed in circumstances. ORDER AHMED ALI M. SHAIKH, J.---Petitioner through these proceedings seeks following prayers:-- "(1) Declaration to the effect that the action of the respondent No.1 in calling bank Guarantee dated 21-2-2005 is illegal, unlawful and of no legal effect. (2) To declare that the actions of the respondent No. I of causing undue financial hardship to the Petitioner is illegal and of no legal effect. (3) That the actions of the respondent No.1 in calling bank Guarantee dated 21-2-2005 is ultra wires to the Constitutional rights guaranteed to the petitioner vide the Constitution of the Islamic Republic of Pakistan. (4) Permanently restrained the Respondent No.1 from encashing guarantee dated 21-2-2005 currently issued with the respondent No.2 till appropriate orders are passed by this Hon'ble Court. (5) Any other prayer may be raised as deem fit and proper after obtaining leave of this Hon'ble Court. (6)…
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