Law: Civil Procedure Code (V of 1908)

Section: O.XXXIX,Rr.1,2

Civil Procedure Code (V of 1908)--- ----O. XXXIX, Rr. 1 & 2---Suit for declaration---Contract for construction of a public project--- Submission of fake performance guarantee by the contractor---Termination of contract---Temporary injunction, grant of---Requirements---Temporary injunction could only be granted if there was a prima facie case, balance of convenience and irreparable loss to the plaintiff---Court could not compel ongoing co-operation between commercial parties where continuous supervise performance was required---Licence granted to the plaintiff in terms of contract was not a licence coupled with any interest and there was no implied covenant as to not revoke such licence in case breach of such contract so as to make it irrevocable in the absence of lawful termination---Balance of convenience did not require undoing the termination of contract---Grant of temporary injunction, in the present case, would force one of two parties either to fall back on and suffer delay in execution of the project to its own detriment and national interest---If plaintiff ultimately succeeded in establishing that termination of contract was unwarranted then compensation would be available from offending parties in the form of damages---Balance of convenience and irreparable loss did not lie in favour of plaintiff, in circumstances---Application for grant of temporary injunction was dismissed accordingly. Mohammad Aref Effendi v. Egypt Air 1980 SCMR 588 and Munda Hyderopower Ltd. through Habib H. Parach and 2 others v. Federation of Pakistan through Secretary Ministry at Water and Power and 2 others 2009 MLD 526 distinguished. M/S. Pakistan Associated Construction Ltd v. Asif H. Kazi and another 1986 SCMR 820; Chaudhry Construction Co. Limited v. Pakistan and others 1990 CLC 394; Garret v. Banstead and Epsom Downs Rly. Co (1965) 12 L.T. 654: 13 W.R. 878) and Munro v. Wivenhoe, etc. (1865) 12 L.T. 655 rel. THIS ORDER PASSED BY: YOUSUF ALI SAYEED, JUSTICE:---.--- The Plaintiffs and the Defendant No.2, namely the Water and Power Development Authority ("WAPDA") entered into a Contract on 12.04.2011 (the "Contract") in relation to a public-sector development project for…

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