Law: Constitution of Pakistan, 1973

Section: 185(3)

Contract Act (IX of 1872)--S.73--Constitution of Pakistan (1973), Art.185(3)--Breach of contract-­Plaintiff's suit decreed against defendant establishment and such decree maintained by the High Court in appeal--Defendant's contention that suit was incompetent because of arbitration clause in the contract, would not prevail inasmuch as such contention was not taken or agitated before Courts below and thus could not be allowed to be raised at the petition stage--Leave refused. Ch. Fazal-i-Hussain, Advocate Supreme Court and Muhammad Aslam Chaudhry, Advocate-on-Record (absent) for Petitioner. Sh. Masood Akhtar, Advocate-on-Record (absent) for Respondent. Date of hearing: 8th April, 1989. ORDER ALI HUSSAIN QAZILBASH, J.--This is a petition for leave to appeal against the order of a learned Division Bench of the Lahore High Court, dated 24-11-1986. 2. The respondent firm entered into contract with the petitioner on 27-9-1967 for the supply of 54,000 yards of dark blue serge at Rs.23.74 per yard. According to the agreement the respondent delivered an instalment of 16,520 yards of the cloth to the petitioner on 10-5-1968. This cloth was inspected by the inspecting officer, District Controller of Purchase (Inspection), on 24/25-5-1968, its laboratory tests were carried out by the Chief Commercial Meteorological Officer on 1-6-1968 and the result thereof was to the effect that the supply was in accordance with the specification. The Chief Controller of Purchase, the Deputy Chief Controller (Technical) on examining the goods on 22-6-1968 found the goods to be in accordance with the terms of the contract. In token of the above tests a receipt note No.L-1408, dated 24-6-1968 was issued to the respondent with the certificate that the quantity received in accordance with the order noted above was in good condition and was also in accordance with the approved sample/specification/drawings. The respondent thus became entitled to the price of the goods to the extent of Rs.3,92,184.80. This was demanded from the petitioner through a registered notice but instead of payment the petitioner rejected the goods delivered as per memorandum, dated 22-7-1968. This rejection compelled…

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