Law: Contract, Act, 1872

Section: IX,74

Law: Qanun-e-Shahadat Order, 1984

Section: 117

Contract Act (IX of 1872)-------S. 74---Qanun-e-Shahadat (10 of 1984), Art. 117---Suit for recovery of money on the basis of indemnity bond---Loss and compensation---Proof---Onus to prove--Respondent/plaintiff was employer of appellant/defendant and sought recovery of loss and compensation on the basis of indemnity bond for breach of contract---Suit was decreed by Trial Court in favour of respondent/plaintiff---Validity---Employer in terms of Art. 117 of Qanun-e-Shahadat, 1984, was under legal obligation to discharge burden regarding quantification of loss and compensation--Respondent/plaintiff neither incurred any loss nor provided any proof of such loss before Trial Court---Claimant under any bond is entitled under the provisions of S. 74 of Contract Act, 1872, to reasonable compensation and not specific amount asserted in the bond---Claiming of fine, liquidated damages or penalty solely based upon terms of finance agreement between the parties itself is not sufficient to grant the same---Party claiming such fine, liquidated damages or penalty has to in the first place plead such fact in its plaint or petition and thereafter to prove the same through cogent and reliable evidence---Court, if satisfied with the evidence, may not necessarily grant specific amount of fine, liquidated damages or penalty as stipulated in finance agreement but only a reasonable compensation to be ascertained from the evidence adduced by the parties---Company incurred expenses on training of appellant/defendant, therefore, company was entitled for recovery of that amount as well as at least salary of one month which was otherwise in accordance with public policy principle---High Court reduced the amount of decree to the extent of training expenses and one month salary---Appeal was allowed accordingly.Livingstone v. Rawyards Coal Co. (1880) 5 App. Cas. 25; Atlas Cables (Pvt.) Limited v. Islamabad Electric Supply Company Limited 2016 CLD 1833; Bhai Panna Singh and others v. Bhai Arjun Singh and others AIR 1929 Privy Council 179; Messrs United Bank Limited v. Messrs M. Esmail and Company (Pvt.) Limited 2006 CLD 394; Allied Bank of Pakistan Limited, Faisalabad v. Messrs Asisha Garments…