Law:

Section:

(a) Contract Act (IX of 1872)-------S.2(h)---Constitution of Pakistan (1973), Art. 199---Contract for sale of immovable property for construction of five star hotel entered between petitioners and respondents after petitioner's bid was accepted by respondents--­Non-payment of instalments within agreed schedule---Notice by respondents for payment of outstanding balance amount failing which allotment would stand cancelled---Validity---Plot allotted to petitioner was admittedly subject-matter of litigation right from the date of auction---Respondents failed to deliver possession of plot to petitioner, with clear title and free of encroachments, which resulted in delay in payment of premium price---Non-compliance of terms of allotment order by respondents, ensuing from litigation and encroachments on plot, legitimately gave right to petitioner to require respondents to restore actual physical possession to enable them to pay balance price and proceed with project in question---Petitioners could not be made to suffer for acts of others or action/inaction on part of respondents---Respondents, thus, could not impose delayed payment charges---Impugned order to that extent was declared to be illegal and of no legal effect---Petitioners were directed to deposit balance premium amount in six equal instalments, with direction to deposit first instalment within one week and next instalments in next 15 months--­Respondents were directed to deliver actual physical possession of plot clear of all encroachments immediately on deposit of first instalment. Fateh Khan v. Boze Mir PLD 1991 SC 782; Muhammad Hanif and others v. Muhammad and others PLD 1990 SC 859; Rashid Ahsan and others v. Bashir Ahmad and others PLD 1989 SC 146; Mst. Khadija Bai and others v. Muhammad and others PLD 1994 Kar. 233; Col. Retd. Muhammad Aslam v. Haji Muhammad Shafi and others PLD 1993 Lah. 11; Iqbal Ahmad v. I.D.B.P. and 3 others 1989 CLC 1365; Muhammad Aslam Zia and 2 others v. Yousaf Ali PLD 1958 SC 104; Haider Ali and others v. Akbar Ali and another PLD 1973 Lah. 546; Akbar Hussain v. Wadero Muhammad Tayyab PLD 1995 Kar. 452; Seth Essabhoy v. Saboor Ahmad PLD 1973 SC 39; Haji Adam Ali Ageria v.…

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