Law: Specific Relief Act, 1877

Section: 12

Specific Relief Act (I of 1877)--- ---S. 12---Suit for specific performance of contract---Failure to perform contractual obligations by the plaintiff---Forfeiture of earnest money---Requirements---Clause for forfeiture of advance paid by the plaintiff to the defendant did not exist in the agreement---Defendant had not sent any notice to the plaintiff that in case of default on his behalf he would forfeit the advance paid---Defendant had not informed the plaintiff that subject matter of agreement was pledged with the Bank---Subject goods having been pledged with the Bank, defendants were under the obligation not only to inform the plaintiff before entering into the contract but also obtain permission from the Bank for their intention to sell the pledged goods---Suit was decreed and defendant was directed to refund the earnest money with 10% interest per annum to the plaintiff from the date of filing of suit till realization. Saeed Naseem Cheema v. Mrs. Rukhsana Khan 2010 MLD 123 and Muhammad Ghafoor v. Mst. Munawar Shahzadi and another 2007 MLD 264 rel. THIS ORDER PASSED BY: NAZAR AKBAR, JUSTICE:---.--- By this common judgment I intend to dispose of both the cross suits. Suit No.987/1998 by M/S Ghaffar Corporation is for Specific Performance of Contract and Injunction against M/S Petro Commodities (Pvt.) Limited. Suit No.988/1998 filed by M/S Petro Commodities is simple suit for injunction and damages against M/S Ghaffar Corporation. For the purpose of avoiding confusion, in the judgment plaintiff would mean M/S Ghafoor Corporation and defendant would mean M/S Petro Commodities. 2. The plaintiff in Suit No.987/1998 claimed that he has contracted in writing to purchase 1600 M.Tons Rice IRRI-9 at the rate of Rs.10,250 per M. Ton from defendant No.1 and an advance payment of Rs.500,000/- to the defendant. It was agreed that the delivery order will be issued by defendant No.1 to the plaintiff within 10 days from the date of advance payment. It was averred that defendant No.1 illegally and unauthorizedly contracted to sell the said 1600 M. Tons Rice to some different party and issued delivery vouchers through defendant No.2 to a new buyer. The plaintiff claimed that…

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